HomeMy WebLinkAboutReso 1996-18421 RESOLUTION NO. 18421
(AGENCY RESOLUTION NO, 1512)
RESOLUTION OF THE CITY COUNCIL AND REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA: (1) APPROVING THE
FIRSTAMENDMENT TO THE DISPOSITION AND DEVELOPMENT
AGREEMENT BY AND BETWEEN THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA AND BROADWAY
VILLAGE BUSINESS HOMES, L.P. AUTHORIZING A LOAN TO
COVER THE COSTS OF DEVELOPMENT PERMITS AND
PROCESSING FOR PHASE I OF THE BROADWAY BUSINESS
HOMES PROJECT AND EXTENDING THE TERMS FOR SHARING
IN SOIL REMEDIATION COSTS TO COMPLETE REMEDIATION;
(2) APPROPRIATING FUNDS FROM THE OTAY VALLEY ROAD
PROJECT AREA FUND TO BE LOANED TO THE SOUTHWEST
PROJECT AREA AT THE COUNCIL APPROVED INTEREST RATE
FOR INTRA-CITY LOANS; (3) APPROPRIATING FUNDS FROM
SOUTHWEST PROJECT AREA FUND TO BROADWAY VILLAGE
BUSINESS HOMES, L.P. AND TO FINANCE THE AGENCY'S
PORTION OF ADDITIONAL SOIL REMEDIATION COSTS; (4)
AUTHORIZING STAFF TO CONTRACT FOR SERVICES TO
COMPLETE SOIL REMEDIATION.
WHEREAS, the Agency entered into that certain Disposition and Development
Agreement (the "DDA") with Broadway Village Business Homes, L.P.(the "Developer"), dated
August 2, 1995, for the sale of Agency property located at 760 Broadway within the
Southwest Redevelopment Project Area, to the Developer for the development of the
Broadway Business Homes Project (the "Project"); and
WHEREAS, it has been determined that the Project will help to eliminate blight in the
Southwest Redevelopment Project Area; and
WHEREAS, the Developer has requested that the Agency and the City defer certain
development permit and processing fees due to the extended processing time and expenses
related to approval of plans and the subdivision map for the Project; and
WHEREAS, under authority from the Agency, staff has negotiated terms of a loan with
the Developer under which the Agency will provide funds to cover permit and processing fee
expenses for the development of six business homes; and
WHEREAS, in order to approve such a loan, the Agency must approve an amendment
to the DDA ("Amendment"); and
WHEREAS, staff has drafted a proposed DDA Amendment and the City Council/Agency
Board has reviewed same; and
WHEREAS, under Health and Safety Code Section 33431 and 33433, the Council and
Agency must notice and hold a public hearing to amend the terms of the DDA and make
,
Resolution 18421
Page 2
available to the general public a report identifying all of the terms and conditions of sale of the
property; and
WHEREAS, the Council and Agency have duly noticed and held a public hearing and
have made available a report describing the terms and conditions of the sale of property in
accordance with applicable laws; and
WHEREAS, in order to fund the loan, it is necessary to loan funds from Otay Valley
Road Redevelopment Project Area Fund to Southwest Redevelopment Project Area Fund in
an adequate amount to cover the loan; and
WHEREAS, such intra-agency loans are to be repaid at the interest rate approved by
the Council; and
WHEREAS, soil remediation costs on the Project Site are anticipated to exceed original
estimates upon which the agreement was based requiring an amendment to the DDA to
complete remediation; and
WHEREAS, in accordance with Section 3.2 of the DDA, Developer and Agency staff
have agreed to terms for the equal sharing of certain additional costs for remediation of
contaminated soils on the Project Site, which such terms are set forth in the proposed DDA
Amendment; and
WHEREAS, after consideration of all evidence submitted at the public hearing, the City
Council/Agency Board found and determined that with the approval of the Amendment to the
DDA (a) it is in the best interests of the community that the Property be sold to the Developer
without public bid; (b) the consideration paid and to be paid for the Property is not less than
the fair reuse value thereof in light of the development costs for the Project, and the required
uses, covenants and conditions imposed on the Project Site; and (c) the Project is necessary
to effectuate the Redevelopment Plan and shall assist in the elimination of blight in the
Southwest Redevelopment Project Area; and
WHEREAS, a Negative Declaration has already been prepared and approved for the
Project in accordance with CEQA, and because the Amendment to the DDA imposes no
additional or new environmental impacts, no additional CEQA documentation is necessary.
NOW THEREFORE, the City Council and the Redevelopment Agency of the City of
Chula Vista do hereby find, order, determine, and resolve as follows:
Section 1. The City Council/Agency hereby adopts the above recitals, findings and
determinations.
Section 2. The First Amendment of the Disposition and Development Agreement by
and between the Redevelopment Agency of the City of Chula Vista and Broadway Village
Business Homes, L.P., dated August 1,1995, a copy which is on file in the Offices of the City
Clerk known as Document No. CO95-108 and Secretary to the Redevelopmerit Agency known
as Document RACO-95-18, is hereby approved in the form presented; and the Mayor and
Agency Chair is hereby authorized to execute same.
Resolution 18421
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Section 2. Funds of Otay Valley Road Project Area from land sale proceeds are hereby
appropriated to be loaned to the Southwest Project Area at the Council approved interest rate
for intra-City loans.
Section 3. Such funds deposited in the Southwest Project Area fund are hereby
appropriated for the loan to Broadway Village Business Homes, L.P. and to finance the
Agency's share of additional soil remediation costs.
Section 4. Agency staff is hereby authorized to negotiate and obtain approval for
agreements with consultants/contractors to complete the remediation of contaminated soils
on the property in accordance with the terms of the herein approved DDA Amendment and
the City/Agency purchasing rules.
BE IT FURTHER RESOLVED that the Chair of the Redevelopment Agency is hereby
authorized to execute the First Amendment on behalf of the Agency.
Presented by Approved as to form by
C ris Salomone Ann Y. Moo~e
Community Development Director Acting City Attorney
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PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 20th day of August, 1996, by the following vote:
AYES: Councilmembers: Alevy, Moot, Padilia, Rindone, Horton
NAYES: Councilmembers: None
ABSENT: Councilmembers: Moot
ABSTAIN: Councilmembers: None
~;t/'~n, Mayo'/~r
ATTEST:
Beverly A[Authelet, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
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. 18421 was duly passed, approved, and adopted by the City
Council at a regular meeting of the Chula Vista City Council held on the 20th day of August,
1996.
Executed this 20th day of August, 1996.
Beverly A./Authelet, City Clerk