HomeMy WebLinkAbout2013/09/10 Item 11 ��r _::Af�
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, �_�__,.�--��.�-�-�. CITY COUNCIL
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_ .�� �� CfiY OF
CHULA VISTA
Item?�'o.: ��
D4eetine Date: 09-]0. 20li
ITEM TITLE: RESOLliTIO\' OF THE CITI' COUNCIL OF THE CITP OF
CHULA VISTA APPROVI�\'G THE FIRST A.n'IENDAZENT TO
THE E�CLtiSI�'E NEGOTIATI\G AGREEIIENT BET�tiEEN
THE CITI' OF CHULA V'ISTA �u\�D HO�'IEFED
CORPORATION FOR PLAl�i�`ING r�\'D DEVELOPA'fENT OF
THE UNIVERSITI' PARK AND P���OVATION DISTRICT
SLBA4ITTED BY: ASSIST�\`T CITI' 1�NAGER
REVIEV✓ED BY: CITY n'IANAGER��'SD5
4/�THS VOTE: YES NO X
SUNLA'I.�.RY
In 2008; the Cin� entered into Land Offer A2reements (LOAs) that «ill proride approximatel.�
37� acres of land to the City for a Uni��ersitv Park and Innovation District (IJPID). Processine of
the entitlements outlined in the LOAs is unden��a�- and expected to be completed later this yeaz;
�ti�ith the second set of entitlements in the sprins of 2014. In December 2012, the Council
approved an Exclusive Negotiatine Agreement (EI�?A) that allo���ed staff to negotiate ���ith
HomeFed to become the A4aster Developer to plan and develop the UPID. The term of tbe
existins ENA is comine to an end and staff is requesting an estension to the term to complete the
neeotiations.
E\`VIRONI�4E\'TAI, REVIE�V
The Development Services D'uector has re��ie«ed the proposed activih� for compliance �a�ith the
Califomia Em�uonmental Qualitv .Act (CEQA) and has determined that the activity is not a
"Projecr' as defined under Section 1�378 of the State CEQ.A Guidelines; therefore; pursuant to
Section 1�060(c)(3) of the State CEQA Guidelines the acti�in� is not subject to CEQ.A. Thus; no
emironmental revie��� is necessarv.
RECO�TiVIENDATTO\'
That Cirv Council adopt the resolution.
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Date, Item No.: ��
Meeting Date: 09/10/13 �
Page 2 of 2
BOARDS/COAZAZISSION RECONIMENDATION
Not applicable.
DISCUSSION
On December I1, 2012 the Council approved an ENA, between the City and HomeFed, N�hich
allowed staff to negotiate with HomeFed to become the Master Developer of the UPID. The
EI�'A created an Initial I�Tegotiation Period of ninety (90) days with the potential for t��o
Extended I�Tegotiating Periods of an additional ninety (90) days each. The first extension
occurred on March 7; 20li and the second extension occurred on June 6, 2013.
Staff has been meeting regularly with HomeFed to negotiate the terms of a T9aster Development
Agreement (MDA); howe��er negotiations have taken longer than expected due to the uniqueness
and coinpleaity of the MDA. While a framework that outlines the majoi points of the D2DA have
been agreed to, the formal agreement still needs to be drafted. Therefore, staff is requesting that
three additional ninety (90) day negotiating periods be added to the ENA.
DECISION-AIAKER CONFLICTS:
Staff has reviewed the property holdings of the CiTy Councilmembers and has found no property
holdings N�ithin 500 feet of the boundazies of the property which is subject to this action. Staff is
not independently a«�are, nor has staff been informed by any City Councilmember, of any other
fact that may constitute a basis for a decision maker conflict of interest in this matter.
CURRENT YEAR FISCAL IMPACT
Tl�ere is no fiscal impact. Lxisting Endowment funds will be used to pay for all staff and
consultant costs associated with preparation of the-appropriate agreements.
ONGOING FISCAL TMPACT �
There is no ongoing fiscal impact. The work is anticipated for completion prior to June 30; 2014.
ATTACHA4ENTS
Attachment A—Exclusive Negotiatina Agreement Extensioii Resolution
Attachment B —Eaclusive Neeotiating Agreement Amendment No. 1
Prepared b��: Scott Donaghe, Prirzcipal Planner, Development Services Department
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Attachment A
COU:�'CIL RESOLUTIO?�'N0.
RESOLUTION OF THE CITI' COi1NCIL OF THE CITY OF
CHiJLa V"ISTA APPROVII�TG THE FIRST AA4ENDMENT TO
THE E�iCLUSIVE NEGOTIATT\TG AGREEME\T BET\4'EEN
THE CITY OF CHiJLA \71STA A\�D HO\4EFED
CORPORATION FOR PLA\T�TI�'G A\'D DEVELOP\�ENT OF
7HE U`�'IVERSITY PARK AI�iD I\T��O\'ATION DISTRICT
WHEREAS, the Citv of Chula Vista has long had a goal of developina a higher education
presence in the Ciri; and
�\'HEREAS, the Citp of Chula Vista has solidified this goal in the Cit��`s General Plan
and Ota�� Ranch Generai Development Plan; and - - .
A'HEREAS; the Cin� has been �vorkine for several ��ears to acquire all the land necessarv
to de��elop the Uni��ersitv Park and Inno��ation Districr, and
�1JHEREAS, in 2008 and 2010; the Cin� entered into land offer agreements that pro��ide
for the acquisition of the final properties necessary to create the Uni��ersit� Park and Innovation �
District: and -
«'HEREAS, the City determined that it did not employ staff�uith the level of expenise in
this ��ery specific t��pe and magnitude of project and ���ished to esplore an arraneement mith
HomeFed to sen-e as Master De�eloper for the liniversity Park and Innovation District project;
and
�1THEREAS. on December 1l. 2012 the Citv entered into an Ezdusive Nesotiatine
Aereement with HomeFed to enter into a A4aster Development Agreement for planning and
de��elopment of the Uni��ersiri� Park and Innovation District that included an Initial Negotiation
Period of nineh� (90) da��s �i�ith the potential for h��o Estended Negotiating Periods of an
additional ninety (90) davs each; and
\VT-IEREAS. Staff has extended the Eaclusi�e \'eeotiating Aereement on \4arch 7; 20li
and aeain on June 6. 2013: and �
\VHERE.AS, due to the complea namre of negotiating the b4aster Development
Aareement; negotiations ha��e taken lon�er than expected and staff would like to extend the
Exclusive Neeotiating Agreement term by an additional ninet�� (90) da��s; ���ith the potential for
tti�o additional ninen� (90) day periods.
J:Wnome.•ffI\AL RESOS Fu\D ORDIt�'A\CESL013\09 10 13\CGReso-UPIDENA-AmendNol-8 2S 13-FPiVAL.docs
S/?9/2013 8:53 M1
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Resolution No.
Page 2
NOR'; THEREFORE; BE IT RESOLVED the City Council l�ereby approves Amendment
No. 1 to the Exclusive Neeotiating Agreement between the City of Chula Vista and HomeFed
Corporation reearding the planning and development of the Universiry Park and Research Center
project in the form presented; with such minar modifications as �nay be required or approved b��
the City Attorney, a final copy of which shall be kept on file with the City Clerk and hereb��
authorizes the Ciry Manager to execute the same.
Presented by Approved as to form by
Kelly Broughton /��Glen R.
Development Services Director City Attorney
J:�Attornev\FINAL RESOS AND ORDINANCES\?013\09 10 13\CC-Reso-UPIDENA-AmendNol-8?8 13-FINAL.docx
. S/29/2013 8:�3 AM �
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I
THE ATTACHED AGREEI�gNT HAS BEEi�' REVIERJED
AND APPROVED AS TO FORM BY THE CITl'
ATTORI�TEY�S OFFICE AI�TD �T��ILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
/ G ��
,�i� City Attorney
Dated: �[f � J�
/
FIRST AIvIENDI�gNT TO
EXCLUSNE I`TEGOTIATII�TG AGREEI��\TT
BET�'�'EEN
THE CITY OF CHULA VISTA AND
HOMEFED CORPORATIO\T
FOR UI��IVERSITY PROJECT
• I
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_ Attachment B
FIRST AMENDMENI' TO EXCLUSIVE NEGOTIATING AGREEMENT `
(University Project] �
This FIRST AMENDMENT TO EXCLUSIVE I�'EGOTIATI?�iG AGREEMENT
("AgrzemenY') is entered into effective as of September 10, 2013 ("Effective Date") by
and between the CITY OF CHULA VISTA, a chartered municipal corporation ("City")
and HOMEFED CORPORATION, a Delaware corporaiion ("Developer") with reference
to the folloH�ing facts:
Recitals
A. City oNms or ���ill own certain real property comprised of approximately
375 acres located in the Otay Ranch and Eastlake communities of the City of Chula
Vista, California, as more particulazly described in original Exclusive Negotiating
Agreement ("ENA") Seciion 2.1 (the "Property"). ,
B. City wishes to foster the development of a new university and regional
technology park on the Property, as more particulazly described in ENA Section 2.2 (ihe
"Project"), in a manner and form consistent «�ith the goals and objectives of its General
Plan and Otay Ranch General Developrnent Plan.
C. Given the complexity and long-term development horizon for the Project;
the City wished to explore an arrangentent with a land developer to serve as master-
developer for the Project.
D. On December I 1, 2012. the Council approved;the ENA that allowed staff ,
' to negotiate with Developer to become the Master Developer to plan and develop the �
Project.
E. The E?�A created an Initial I�'egotiation Period of ninety (90) days with the
potential for two Extended Negotiating Periods of an additional ninety (90) days each.
F. The first extension of the ENA occurred on March 7, 2013 and the second
extension occurred on 7une 6, 2013.
G. Staff has been meeting regutazly with the Developer to negotiate the terms
of a h4aster Development Agreement (MDA); however negotiations have taken longer
than expected due to ihe uniqueness and complexity of the MDA.
H. While a framework that outlines the major points of the MDA have been
agreed to, the formal agreement still needs to be drafted. Therefore, this amendment
revises ENA Section 1.3 by adding three additional ninety (90) day Extended Negotiating
Periods to the ENA.
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I. Other thaa this proposed revision to ENA Secrion 13; the remainder of the
ENA remains unchanged anci in �11 force and effect.
NOW, THEREFORE, in consideration of the above recitals; the mutual covenants
coniained herein, and other good and valuable consideration; the pa*ties �ereby
acknowledge as satisiactory, CITY AIvD DtVELOPER HEREBY AGREE AS
FOLLOWS:
Asreement.
1. Amendment of Section 1.3. Section 1.3 of the ENA is au!ended to replace the
wo-ds"...for up to two (2) add',tional ninety (90) day periods....' with"...for up to five ,
(5) additional ninety (90) day periods...."
[Balance ojPkge I�ttentiona[ly Lejt Blank;Agreement Continues on Fol[orvi�ig PageJ '
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IN WITNESS WHEREOF, the parties hereto hereby execute this Agreement as of
the Effective Datz set forth above, thereby indicating their agreement to all the terms and
conditions hereo£
CITY:
CITY OF.CHULA VISTA,
a chartered municipal corporation
By: _... _ ..
t�s: .
Attest:
_. _ .__ .. __
Donna Noms, City Clerk
Approved as to form:
Glen R. Googins, City Attomey
DEVELOPER:
HOMEFED CORPORATION,
a Dc�c�e�rjior�t�o�
? t ��
By: >, .7,i : -
:. _._:. - - _
P�aulI3ord , residen
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