HomeMy WebLinkAboutReso 2002-042 RESOLUTION NO. 2002-042
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A BUSINESS INCENTIVE
AGREEMENT WITH EASTLAKE DEVELOPMENT
CORPORATION, HITACHI HOME ELECTRONICS
(AMERICA), 1NC., AND MCMAHON DEVELOPMENT
GROUP, AND AUTHORIZING THE MAYOR TO EXECUTE
SAME
WHEREAS, in November 1999, Council approved a Business Incentive agreement with
EastLake Development Company which resulted in Leviton building its 90,000 sq. ft. Western
Regional R&D facility in Chula Vista bringing 200 highly paid employees; and
WHEREAS, the agreement provided for EastLake to assume $725,000 of Leviton's
Transportation Development Impact Fee (TDIF) obligation to enable Chula Vista to be
competitive; and
WHEREAS, the agreement with EastLake not only enabled the attraction of Leviton, but
required EastLake to entitle the remaining 80 acres of business park, bringing much needed light
manufacturing/R&D land on-line, available for immediate development by other hi-tech
employers; and
WHEREAS, the EastLake Incentive agreement paved the way for the recruitment of
DNP, a subsidiary of Dai Nippon Ltd., which recently announced the location of its electronics
manufacturing plant in EastLake, and now paves the way for the recruitment of a new Chula
Vista benchmark the North American Headquarters of Hitachi Home Electronics (America);
and
WHEREAS, the proposed agreement provides for Eastlake to assume $935,000 of
Hitachi's TDIF obligation and to assume liability for the $123,000 Interim State Route-125 (SR-
125) fee for a total cost to EastLake of $1,101,314 and the City agrees to award Hitachi a
$91,742 Community Development Block Grant (CDBG) grant and to assume $45,341 in
processing and permit fees.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby approve a Business Incentive Agreement with EastLake Development
Corporation, Hitachi Home Electronics (America), Inc, and McMahon Development Group, a
copy of which shall be kept on file in the Office of the City Clerk.
BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute said
agreement on behalf of the City of Chula Vista.
Resolution 2002-042
Page 2
Presented by Approved as to form by
Chris
Salomone
~J0.~h. ,M... Kaheny
Community Development Director ~ity Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 12th day of February, 2002, by the following vote:
AYES: Councilmembers: Davis, Padilla, Rindone, Salas and Horton
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Shirley Ho~/on, Mayor
ATTEST:
Susan Bigelow, City Clerk "*
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2002-042 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 12th day of February, 2002.
Executed this 12th day of February, 2002.
Susan Bigelow, City Clerk