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HomeMy WebLinkAboutReso 1995-18058l, ' RESOLUTION NO. 18058 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A TRI-PARTY AGREEMENT BY AND AMONG LOS ALlSOS COMPANY, MCA CONCERTS, INC. AND THE CITY OF CHULA VISTA; A GROUND LEASE BY AND BETWEEN LOS ALlSOS COMPANY AND MCA CONCERTS, INC. AND A SUBLEASE BY AND BETWEEN THE CITY OF CHULA VISTA AND MCA CONCERTS, INC. AND AUTHORIZING THE MODIFICATION AND DEFERMENT OF CERTAIN CITY PERMIT AND DEVELOPMENT IMPACT FEES DUE FOR DEVELOPMENT OFTHE PROJECT WHEREAS, the property which is the subject matter of this resolution is commonly known as Phase 1 of the Otay Rio Business Park comprised of approximately 72.5 gross acres of land located at the southwest quadrant of Otay Valley Road and Otay Rio Road ("Project Site"); and WHEREAS, with respect to the Project Site, concurrently herewith, the City Council is certifying EIR 95-03 and granting a Conditional Use Permit for the operation of a 20,000 seat amphitheater ("Project") proposed by MCA Concerts, Inc. ("MCA"); and WHEREAS, in consideration of City construction of certain road improvements for the Project, City's vacation of public streets at the Project without monetary compensation, City's negotiation with the City of San Diego to reduce that City's Facilities Benefit Assessment against the Project on behalf of MCA and other good and valuable consideration, MCA and the City have agreed that the City shall receive a percentage of its net ticket sales and parking revenues from the Project and additional monetary and in-kind benefits, subject to certain terms and conditions; and WHEREAS, in order to memorialize this agreement, MCA has prepared the following documents (a) a Ground Lease between MCA and the fee owner of the Project Site, Los Alisos Company, a California general partnership ("Los Alisos") (b) a Tri-Party Agreement (CO95- 224) between MCA, Los Allsos and the City, and (c) a Sublease (CO95-225) between MCA and the City (collectively, the "MCA Amphitheater Agreements"); and WHEREAS, at the commencement of Project processing, and more formally pursuant to a letter to the City from MCA dated September 29, 1995, MCA requested that the City's traffic signal fee, sewer capacity fee, and public facilities impact fee be modified and/or deferred given the unique nature of the Project, the reduced impacts that it would impose on City facilities, and the fact that the imposition of full City fees against the Project under existing City formulas would therefore be unreasonable and overly burdensome; and WHEREAS, the Chula Vista Municipal Code ("CVMC") provides a basis for such modification and/or deferral pursuant to CVMC Sections 3.45.010, 3.50.160, and 15.51.010, · . et seq; and Resolution 18058 Page 2 WHEREAS, City staff has analyzed MCA's proposal, and for the reasons stated in MCA's proposal and the staff report for this item, staff has recommended certain fee modifications and/or deferrals to the City Council for approval; and WHEREAS, a public hearing was properly noticed and held on the proposed fee modification and deferral and the City Council considered all testimony presented at such hearing. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the above-described MCA Amphitheater Agreements in the forms presented, subject to such minor clarifying changes as may be required or approved by the City Attorney, copies of which shall be kept on file in the Clerk's office as Document Nos. CO95-224 (tri- party agreement), CO95-225 (sublease agreement). BE IT FURTHER RESOLVED that the Mayor is hereby authorized and directed to execute the Tri-Party Agreement and the Sublease for and on behalf of the City of Chula Visa. BE IT FURTHER RESOLVED that the Mayor or her designee is authorized to execute escrow instructions and other administrative agreements implementing the MCA Amphitheater Agreements in a form approved by the City Manager and the City Attorney. BE IT FURTHER RESOLVED that the City Council hereby finds and determines that imposing the standard City development impact fees on the Project would be unreasonable and overly burdensome because of (a) the overall unique nature of the Project which does not fit squarely into any of the City's existing fee categories; (b) the less than full fee rate impacts on City facilities that the Project will generate in light of the number of days of operation of and the number of employees working at the Project; and (c) the quasi-public uses associated with the Project including, without limitation, City use rights of the amphitheater. The City Council further finds and determines that such circumstances outweigh the need of the City of the full fee revenue and a uniform way for collecting fees. Accordingly, the development impact fees for the Project are hereby determined as follows: 1. In accordance with Section 3.50.160 of the CVMC, and City staff's application thereof, the City Public Facilities Development Impact Fee for the Project shall be 9424,501. This fee is allocated 9369,925 to the amphitheater use and 954,576 to the open air market use. This amount shall be subject to upward adjustment by the City in the event that amphitheater or open market operations exceed the thresholds which formed the basis for this modification. 2. In accordance with Sections 3.45.010 and 13.14.090 of the CVMC, and City staff's application thereof, the City Sewer Capacity Fee for the project shall be 9164,080. This amount shall be subject to adjustment by the City (up or down) based upon actual measurements of water usage and/or sewage outflow at the Project over a period of time determined appropriate by staff not to exceed 4 years; this calculation shall be further adjusted to reflect maximum permitted use at the project. 3. In accordance with Section 3.45.010 and Chapter 15.51 of the CVMC and staff's application thereof, the City Traffic Signal Fee for the Project shall be 963,245. In accordance with existing Council Policy 478-01, this amount shall be subject to reimbursement to MCA Resolution 18058 Page 4 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 7th day of November, 1995, by the following vote: AYES: Councilmembers: Alevy, Moot, Padilia, Rindone, Horton NAYES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None Shirl~ayor ATTEST: Be~,W A~Aut~elet, 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. 18058 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 7th day of November, 1995. Executed this 7th day of November, 1995. Resolution 18058 Page 3 required to install a traffic signal (at its sole cost) at a public intersection adjacent to the Project. 4. Some portion of the above referenced fees shall be paid prior to the issuance of building permits and some portion of the fees shall be deferred pursuant to Sections 5.6 and 11.6 of the Sublease between MCA and the City. The City Manager shall determine with respect to which fees such up front and deferred payments shall be applied, and shall notify City Council in writing of such determination. Presented by Appro~ed as to form,!by /P~ z~ /1 '