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Home My WebLink About2014-07-08 item 07 City of Chula Vista Staff Report File#:14-0308, Item#: 7. RESOLUTIONNO.2014-123OFTHECITYCOUNCILOFTHECITYOFCHULAVISTA AUTHORIZINGTHEMAYORTOENTERINTOARESTATEDANDAMENDEDLANDOFFER AGREEMENTBETWEENTHECITYOFCHULAVISTAANDSSBTLCREV,LLC;FOR CONVEYANCEOF128.6ACRESTOTHECITYFORUNIVERSITYPARKANDINNOVATION DISTRICT DEVELOPMENT RECOMMENDED ACTION Council adopt the resolution. SUMMARY Thepropertyowner(SSBTLCREV,LLC)andtheCitynowdesiretoamendtheSupersededLand OfferAgreementinordertoreflectthenewlanduseplanbeingproposedbytheownerforthe property. OnMay20,2008,theCityCouncilapprovedaresolutionauthorizingtheMayortoenterintoaLand OfferAgreement(LOA)withJPBDevelopment,LLC(owner).SaidfirstLOAprovidedfortheowner agreeingtoconveytotheCity160grossacresoflandinexchangeforCityreviewandapprovalof landentitlementswithinspecifiedportionsoftheOtayRanchprojectarea.Theconveyedlandwould befordevelopmentofafacilityforhighereducationandothercompatiblelandusesinaconfiguration thatwouldbeconducivetotheplanningofauniversitycampusandinnovationdistrict(formerly referred to as regional technology park). OnAugust17,2010,theCityCouncilapprovedaresolutionauthorizingtheMayortoenterintoan agreementthatsupersededthefirstLOA.ThesupersededLOAspecificallyexcludedtheVillage4 propertyfromtheprovisionsofthe2008agreementbecausetheownernolongerownedtheVillage 4 property. SinceJPBDevelopment,LLCwasnolongerownerofVillage4,thesupersededLOAproposedto includeonlypropertyownedandcontrolledbyJPBDevelopment,LLC.Consistentwithnotowning Village4,the750dwellingunitsthatwereassignedtoVillage4bythefirstLOAweredeletedfrom thesupersededLOA.ThefirstLOAapprovedonMay20,2008willstillbeineffectandthe750units will remain with the Village 4 property. ThesupersededLOAallowedtheCitytoacceptoffersfordedicationfor160grossacreswithinthe propertyfordevelopmentofafacilityforhighereducationandothercompatiblelandusesintheOtay Ranch project if certain conditions of agreement occurred. ThesupersededLOAreducedthetotalpotentialdwellingunitsownedbySSBT(formerlyJPB Development, LLC, aka OV Three Two, LLC; JJJ & K Investments Two, LLC) from 7,350 to 6,600. City of Chula VistaPage 1 of 4Printed on 7/17/2014 powered by Legistar™ File#:14-0308, Item#: 7. ThegoalofthisrestatedandamendedLOAisthesameasthegoaltheCityhadwithapprovingthe firstLOA(2008)andsupersededLOA(2010);thatis,toimplementtheGeneralPlan.Oneofthekey goalsoftheChulaVistaGeneralPlanisthedevelopmentofaUniversityParkandInnovationDistrict. SuccessfulimplementationoftherestatedandamendedLOAwouldcompletethelandacquisition necessarytoaccomplishthisgoalthroughthereceiptbytheCityof128.6acresofdevelopableland, potentialuseof40.0acresofPreservelandforUniversitypurposesandapproximately22.6acresof active recreation property. UnderthetermsoftherestatedandamendedLOA,uponapprovalofentitlements,theproperty ownerwouldconvey128.6acres,whichhasbeendesignatedasaportionoftheproposed "UniversityParkandInnovationDistrict",40.0acresofPreservelandthatiswithintheuniversity propertyandisproposedtobecomedevelopablethroughaPreserveboundaryadjustmentand22.6 acres of active recreation property. ENVIRONMENTAL REVIEW TheDevelopmentServicesDirectorhasreviewedtheproposedactivityforcompliancewiththe CaliforniaEnvironmentalQualityAct(CEQA)andhasdeterminedthatthereisnopossibilitythatthe activitymayhaveasignificanteffectontheenvironment;therefore,pursuanttoSection15061(b)(3) oftheStateCEQAGuidelinestheactivityisnotsubjecttoCEQA.Futureentitlementsassociatedwith thelandofferagreementwillbesubjecttofurtherenvironmentalreviewatthetimespecificprojects are proposed. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION ThemajortermsofthisrestatedandamendedLOAaresimilartotheLOAsapprovedonMay20, 2008 and August 17, 2010. The terms are summarized below: UnderthetermsofthisrestatedandamendedLOA,iftheCityapprovestherequestedentitlements withintherequiredtimeframes,theCitymayacceptIrrevocableOffersofDedication(IODs)for128.6 acresofUniversityParkandInnovationDistrictLandandapproximately22.6acresofactive recreation property within the Otay River Valley Regional Park. Inparticular,aswiththepreviousLOAs,therestatedandamendedLOAsetsforththetermsunder whichtheCitymayaccepttheoffersofdedication.InordertoaccepttheIODs,finalapprovalsofall statedentitlementsforproposeddevelopmentoftheownershipinVillages3north,aportionof4,8 Eastand10oftheOtayRanchProjectshallbeobtained.ItshouldbenotedthattheCityand propertyownersareproposingtoreconfigureportionsoftheCityGeneralPlan/OtayRanchGeneral Development Plan. UndertherestatedandamendedLOA,theentitlementsincludeaGeneralPlanAmendment,Otay RanchGDPamendment,SPAPlans,andtentativemaps.Themaximumpotentialresidentialunit counttobepermittedfordevelopmentforthepropertyis6,897dwellingunitsforthereconfigured property under SSBT LCRE V, LLC. InaccordancewiththeLOAtheprocessingoftheaboveentitlementswouldbecompletedtwoyears from the date the application is deemed complete. City of Chula VistaPage 2 of 4Printed on 7/17/2014 powered by Legistar™ File#:14-0308, Item#: 7. ThisLOAprovidesSSBTLCREV,LLCwiththeoptionofrepurchasingthededicatedUniversityPark andInnovationDistrictpropertyiftheCity(orsubsequententity)shouldchoosetosellthatportion proposedfornon-universitydevelopment.Therepurchaserightprovisionoftheagreementtakes effectupontheCity’sacceptanceoftheUniversitypropertyIODandexpires15yearsaftertheCity Councilapprovesprojectentitlements.Therepurchaserightdoesnotapplytothe40acreuniversity site or the approximately 22.6 acre active recreation property. ThisLOAprovidesfortheprocessingofentitlements,bySSBTLCREV,LLC,fortheconversionof industriallandstomixeduse/officeandresidentialwithinVillage3,withinthelandfillbuffer easement area. ThisLOAalsoprovidesthat50acresoflandcurrentlyownedbytheCitybeconveyedtotheOwner. Althoughthislandiscurrentlydesignatedfordevelopment,itisconsideredchallengingtodevelop.It wouldbeextremelyexpensivefortheCitytoprovideinfrastructuretothissitefordevelopmentofany universityrelateduses.TheOwnerintendsonnegotiatingwiththewildlifeagenciestoconveythis landtothemtouseasopenspaceinexchangeforpermissiontodeveloponothersitescurrently designatedforpreserve.However,theCity'sabilitytoaccepttheIODsisnotcontingentonthe outcome of the negotiations with the wildlife agencies. TheLOAalsoprovidesforthetransferofupto15percentoftheresidentialunitsbetweenVillages withinthesameOtayRanchproject.Anytransfergreaterthan15percentortransferofunitstoother OtayRanchareas,requiresapprovalbytheDirectorofDevelopmentServicesbaseduponspecific requirements.BothCitystaffandSSBTLCREV,LLC;believetheseprovisionswillprovidethe necessary flexibility to create better Village plans. TheLOAincludesa30-daypreliminaryreviewoftheconditionsofapprovalforthefinalproject entitlements.Duringthistime,theapplicantmayreviewproposedconditionsandrequirementsfor theproject,andmaydecidetostopprocessingtheentitlementsifSSBTLCREV,LLCdetermines that the proposed conditions would render the project economically infeasible. ItisalsoimportanttonotethattheCityCouncilandPlanningCommissionhavefulldiscretionary authoritytoconsidertheproposedplanchangesatthetimetheprojectentitlementsarepresentedin apublichearing,withbenefitofafinalEIRandstaffanalysis.TheCityhasnoobligationtoprocess the requested entitlements in the time frame requested or approve the requested entitlements. DECISION-MAKER CONFLICT No Property within 500 feet StaffhasreviewedthepropertyholdingsoftheCityCouncilandhasfoundnopropertyholdings within500feetoftheboundariesofthepropertywhichisthesubjectofthisaction.Staffisnot independentlyaware,andhasnotbeeninformedbyanyCouncilmember,ofanyotherfactthatmay constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS TheCity’sStrategicPlanhasfivemajorgoals:OperationalExcellence,EconomicVitality,Healthy City of Chula VistaPage 3 of 4Printed on 7/17/2014 powered by Legistar™ File#:14-0308, Item#: 7. Community,StrongandSecureNeighborhoodsandaConnectedCommunity.Theproposedaction addressestheEconomicVitalityandtheConnectedCommunitygoalsasitsupportsthe implementationoftheGeneralPlangoaltodevelopaUniversityParkandInnovationDistrictinthe context of surrounding planned neighborhoods. CURRENT YEAR FISCAL IMPACT The applicant would pay for all costs associated with processing the terms of this LOA. ONGOING FISCAL IMPACT Theapplicantwouldpayforallcostsrelatedtoprocessingentitlementsrelatedtoimplementingthe termsofthisLOA.Aspartofentitlementprocesstheapplicantwillbepreparingafiscalimpact analysisofproposeddevelopmentscenariosbeingconsideredundertheentitlements.Theanalysis willprovideforfurtherdetailreviewandevaluationofthenetfiscalimpactstotheCity.Citydecision makersandelectedofficialswillhavetheopportunitytoreviewandevaluatethespecificsofongoing fiscal impacts once available. ATTACHMENTS Resolution Draft Land Offer Agreement (including exhibits) Staff Contact: Joe Gamble, Landscape Architect City of Chula VistaPage 4 of 4Printed on 7/17/2014 powered by Legistar™ RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE MAYOR TO ENTER INTO A RESTATED AND AMENDED LAND OFFER AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND SSBT LCRE V, LLC; FOR CONVEYANCE OF 128.6 ACRES TO THE CITY FOR UNIVERSITY PARK AND INNOVATION DISTRICT DEVELOPMENT WHEREAS, in adopting the Otay Ranch General Development Plan in 1993 the City of Chula Vista formally declared its intent to plan for and pursue an institution(s) of higher learning within its municipal boundaries; and WHEREAS, the updated City of Chula Vista General Plan in December 2005 recognized the many benefits of a Regional Technology Park / Innovation District, which would be associated with the University(ies); and WHEREAS, JJJ & K Investments Two, LLC; OV Three Two, LLC; an R Quarry, LLC, all Delaware limited liability companies and the City, entered into a Land Offer Agreement, dated May 20, 2008 that was recorded against real property commonly referred to as Villages 3,4,8,9 and 10 of the Otay Ranch Project (First Land Offer Agreement); and WHEREAS, JJJ & K Investments Two, LLC; OV Three Two, LLC; parcel ownership boundaries changed resulting in the need to amend the First Land Offer Agreement; and WHEREAS, on August 17, 2010, the City entered into an Amended Land Offer Agreement reflecting parcel ownership changes; WHEREAS, pursuant to the terms of First Land Offer Agreement and Amended Land Offer Agreement, the City may accept Irrevocable Offers of Dedication for 160 gross acres to be utilized as a University Park Innovation District and other uses set forth in said instrument (University Property); and WHEREAS, the above describes entities no longer owned by all of the properties described in the First Land Offer Agreement and Amended Land Offer Agreement; and WHEREAS, SSBT LCRE V, LLC as the current owners of the University Property, would like to proceed with the entitlements process for Villages 3 north portion of 4, 8 East and 10 of the Otay Ranch Project; and Resolution No. ___________ Page 2 WHEREAhas reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines the activity is not subject to CEQA, and future entitlements associated with the land offer agreement will be subject to further environmental review at the time specific projects are proposed; and University Property pursuant to the terms of the new proposed Restated and Amended Land Offer Agreement for Villages 3 north portion of 4, 8 East and 10 of the Otay Ranch Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that the City Council does hereby approve the Amended and Restated Land Offer Agreement between the City of Chula Vista and Owner for conveyance of 128.6 acres for University Park and Innovation District development and other associated purposes; and 22.6 acres of active recreation land, a copy of which shall be kept on file in the office of the City Clerk,and authorizes and directs the Mayorto execute same. Presented by Approved as to form by Kelly G. Broughton, FASLA Glen R. Googins Director of Development ServicesCity Attorney ` . . .^ / ' ! `. ( .. ` . . ' . | . i . i ` . . � . . ` ` . ` . . .. . . . ' ^ . . ' ^ . . . . .' . 1 ' . � ) . / ) � � � / 1 � , ` < . | � . � ` . � ` ' � ! i ' ! `