HomeMy WebLinkAboutReso 2016-067 RESOLUTIOI�'I�'O. 2016-067
RESOLUTIOt`' OF THE CITY COUI�'CIL OF THE CITY OF
CHliL.A VISTA APPROVII�'G .A SECOND ArgNDMENT TO
THE AGREEMENT REGARDI\G CONSTRUCTIOI�T OF
PARKS II�' n4ILLENIA
W�-IEREAS. McMillin Ota�� Ranch LLC, a Dela«�aze limited liabilit}� compan}�
(`Mc?�4illin `) and Cih- entered into the "Development Agreement b�� and ben��een the Citv of
Chula Vista and McMillin Otav Ranch LLC." recorded October 27. 2009 as Document No.
2009-0�9�116 of Official Records of the San Diego County Recorder (the "Development
Aereemenr'), and the `:Agreement Regarding Construction of Parks in a Portion of Otay Ranch
Eastem Urban Center." recorded October 28. 2009 as Document No. 2009-0�99389 of Official
Records oF the San Dieeo Count�� Recorder (the "Pazks Aereement"). The Development
Agreement and Parks Agreement relate to what thev called the "EUC," H-hich is noN� knotin as
"Millenia': and
WHEREAS. bp an assienment, memorandum and confirmations recorded Februar}� 22,
2011 as Document \o. 2011-0098720 of Official Records of the San Dieeo Countv Recorder.
McMillin assigned its riehts and transferred its obligations under the Development Agreement
and Pazks Agreement ro SLF IV/McMillin n4illenia JV. LLC. a Dela��are limited liabilin�
companv ("SLFMM'). SLFMM changed its name to that of Master Developer (SLF IV-
Millenia, LLC) b}� amendments filed in Delaware on A4arch 4; 201�, and in California on Mazch
9. 201�: and
WHEREAS. Master Developer and Citv pre��iousl}� �+�anted to refine the Pazks
Agreement b}� providing some flexibility for the payment of In-Lieu Fees for certain
developments; such as affordable housine projects. Accordinelv. the}� entered into the `First
Amendmenr` to the Parks Aereement (Resolution No. 201�-089) ���hich recorded on December
8, 201� as Document No. 201�-0627423 of Official Records of the San Diego County Recorder.
and
V�'HEREAS, Master De��eloper and Cit} no��� ���ish to funher refine the Parks Aareement
by providine additional flexibilih� to address the possibility that fe��er residential units could be
built in the EUC (2,>j0) than had orieinallv been anticipated (2:983): and
WHEREAS, Master Developer no lonoer o�ti�ns some of the McMillin Propem�.
HoN�ever. the Pazks Aereement. as amended b�� the First Amendment and this Second
Amendment, is intended�to pro�ide for the development of parks [hrouehout the EUC; thus.
remaining consistent ��ith the orisinal Parks Agreement ��-ith respect to A4aster Developers
riehts and obligations under the De��elopment Aereement. To the e�tent parks have alread}� been
de��eloped and pans of the EUC have been sold, [he effect of this amended aereement is to
ensure compliance bv the time of the EUC's build-out. The legal description to �i�hich this
Second Amendment pertains thus includes all oFthe orieinal n9cMillin Propert��, less onlv land
�+�hich has been sold to merchant builders and some propem dedicated to Caltrans: and
ResolUtion No. 2016-067
Paee No. 2
VdHEREAS, the City's parks standard is three acres per I,000 residents, which equates to
2336 acres of park obli�ation for the project at full buildout of 2,983 residential units and 19.97
acres of pazk obligation if onl}� 2.550 units are built; and
WHEREAS; the Millenia pazks program delivers parks by relying on an "equivalency"
program conveRing physical park acres to dollars which are then used to improve the parks at a
higher level; and
WHEREAS, the Millenia parks program delivers six urban parks and other urban
recreationa] facilities which ���ould provide unique recreational opportunities for the residents
and visitors of Millenia: and
WHEREAS, the Millenia parks will be linked by a system of park promenades; jogging
paths, wide sidewalks and the Regional Trail which link to the pedestrian circulation system in
the surrounding villages, thus, facilitating pedestrian access to residents from outside of Millenia;
and
WHEREAS, the Master Developer has proposed a second amendment to the Parks
Agreement to: 1) specify how the park program would be adjusted in the event fewer residential
units were to be built in the project while maintaining, to the extent possible, the level of park
amenities proposed in the pazks agreement, 2) remove the requirement to enter into a three-part}�
agreement for the design of each park in Millenia while maintaining the requirement of the
Master Developer to seek the City`s approval for the selection of Landscape Architecture firms
designing the parks, as well as, the approval of the design documents for each park and 3)
increase the funding of park improvement per acre to offset the impact of the recent State
prevailing wage legislation requiring all projects with a public end use, including parks; to be bid
at prevailing wage rates resulting in a park construction increase of approximately 20-25% or
more, depending on current construction bids, in accordance with Senate Bill 7 which came into
effect in Ja�uary 2015; and
WHEREAS; the City will temporarily advance $1,225,065 in Parkland Acquisition &
Development (PAD) fees contributed by neighboring developments for community park
purposes to build the last park in Millenia during the Millenia Affordable Housing fee deferral
period; and
WHEREAS, the last park to be built in Millenia is the Town Square (P3), a 2.28-acre
park and paseo within the Main Street District, which will be connected to other Millenia parks
and to destinations throughout Otay Ranch by the Regional Trail connecting to Otay Ranch
Village 7 to the west ��ia Bob Pletcher Way, the western Millenia gateway emerging from the
Route 125 underpass; and to Otay Ranch Village I 1 to the east via the planned pedestrian bridge
over Eastlake Parkway. Construction of the Town Square is required to commence prior to
occupancy of the first building on Tentative Map (TM) lots 17 or 18 within the Main Street
District; approximately in ��ear 2020.
Resolution\o. 2016-067
Paee 1`'0. 3
NO�I'. THEREFORE. BE IT RESOLVED bv the Cirv Council of the Citv of Chula
Vista, that it herebv approves the Second .Amendment to the master aereement reeazding
construction of Parks in Millenia betti�een the Cirv and SLF IV'-D4illenia. LLC.. in the form
presented, ti�th such minor modifications as may be required or appro��ed by the Cin Attomev, a
cop�� of which shall be hept on file in the Office of the Cit}� Clerk and authorizes and directs the
Ma��or to execute the same.
Preseqted � Approved as to form by
. `
Kell� rouehton, FASLA G en R. Googins
Director of Development Sen�ices C� A me�-
PASSED. APPROVED. and ADOPTED b�� the Cit�� Council of the Citv of Chula Vista.
Califomia. this l0th dav of Ma�� 2016 b�� the followina vote:
AYES: Councilmembers: A�uilar. Bensoussan. Miesen. and Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: McCann
�/
A4arv S . A4a��or
ATTEST:
���e��
Donna R. 1�'orris. CA4C. C�h� Clerk
STATE OF CALIFORi\'IA )
COiJNTl' OF SAN DIEGO )
CITY OF CHULA VISTA )
1. Donna R. Norris. Citv Clerk of Chula Vista. Califomia, do hereb�� certif�� that the foreeoine
Resolution No. 2016-067 ��as duly passed, appro��ed, and adopted by the Cit} Council at a
reeular meetine of the Chula Vista Citv Council held on the l0th dav of Ma�� 2016.
Esecuted this l Oth da��of A9a�� 20]6.
�
Donna R. \orris. C�4C. Cit�� Clerk