HomeMy WebLinkAbout2017-06-20 PresentationRESOLUTION AUTHORIZING A NON-BINDING LETTER OF INTENT (LOI) WITH RIDA CHULA VISTA, LLC AND THE CITY OF CHULA VISTA FOR A RESORT HOTEL AND CONVENTION CENTER WITHIN THE CHULA VISTA BAYFRONTAgenda No. 1│File No. 2017-0338 │June 20, 2017
2Chula Vista Bayfront -Historic District Tidelands
San Diego BaySan Diego BayInterstate 5Interstate 5H StreetH StreetF StreetF StreetE StreetE StreetJ StreetJ StreetL StreetL StreetMarina WayMarina WaySandpiper WaySandpiper WayChula Vista Nature CenterChula Vista Nature CenterWildlife ReserveWildlife ReserveSweetwater MarshSweetwater MarshSouth Bay Salt PondsSouth Bay Salt PondsMarina PkwyMarina PkwyNCity of Chula VistaBayfront Assembled3
Planning Process•Joint planning effort by Port and City of Chula Vista•Collaboration with Pacifica Companies•Driven by community inputSettlement Agreement•Wildlife and habitat•Energy efficiency•Building design•Public participation •Parks and Recreation•Job QualityEntitlements•Environmental Impact Report Certification – May 2010•State Lands Commission Approval – December 2010•Coastal Commission Approval – August 20124
San Diego BaySan Diego BayInterstate 5Interstate 5H StreetH StreetF StreetF StreetE StreetE StreetJ StreetJ StreetL StreetL StreetMarina PkwyMarina PkwyMarina WayMarina WaySandpiper WaySandpiper WayChula Vista Nature CenterChula Vista Nature CenterWildlife ReserveWildlife ReserveSweetwater MarshSweetwater MarshSouth Bay Salt PondsSouth Bay Salt PondsPublic Access and Open SpaceNChula Vista Bayfront Master Plan5
San Diego BaySan Diego BayInterstate 5Interstate 5H StreetH StreetF StreetF StreetE StreetE StreetJ StreetJ StreetL StreetL StreetMarina PkwyMarina PkwyMarina WayMarina WaySandpiper WaySandpiper WayChula Vista Nature CenterChula Vista Nature CenterWildlife ReserveWildlife ReserveSweetwater MarshSweetwater MarshSouth Bay Salt PondsSouth Bay Salt PondsPublic Amenities - PromenadesNChula Vista Bayfront Master Plan6
San Diego BaySan Diego BayInterstate 5Interstate 5H StreetH StreetF StreetF StreetE StreetE StreetJ StreetJ StreetL StreetL StreetMarina PkwyMarina PkwyMarina WayMarina WaySandpiper WaySandpiper WayChula Vista Nature CenterChula Vista Nature CenterWildlife ReserveWildlife ReserveSweetwater MarshSweetwater MarshSouth Bay Salt PondsSouth Bay Salt PondsNPublic Amenities - BikewaysChula Vista Bayfront Master Plan7
Chula Vista Bayfront–Master Plan Illustrative8Nature Center parkingNature Center parkingHarbor and MarinasHarbor and MarinasPark24 acPark24 acBuffer:25 acBuffer:25 acRV ParkRV ParkIndustrial Business ParkIndustrial Business ParkIndustrial Business ParkIndustrial Business ParkNorthBuffer:41.1 acBuffer:41.1 acSignature Park:21 acSignature Park:21 acParkParkSeasonal Wetland:14.7 acOfficeOfficeMixed Use/CommercialMixed Use/CommercialResort Conference CenterResort Conference CenterRV Park/ CampgroundRV Park/ CampgroundHotel/Cultural RetailHotel/Cultural RetailHotel/OfficeHotel/OfficeParkParkParkParkE STREETF STREETH STREETJ STREETv.07/03/14Interstate 5Interstate 5Wildlife ReserveWildlife ReserveSweetwater MarshSweetwater MarshSouth Bay Salt PondsSouth Bay Salt PondsLiving Coast Discovery CenterLiving Coast Discovery CenterParkParkHarbor Park:25 acHarbor Park:25 acParkParkPublic/Quasi-PublicPublic/Quasi-PublicMixed Use/ Commercial/ Parking StructureMixed Use/ Commercial/ Parking StructureExisting Boat YardExisting Boat Yard•RV Park/ Campground•25 ft max height•120,000 SF•44 ft max height•120,000 SF•45 ft max height•100,000 SF mixed use/commercial•3,000 space parking garage•155 ft max height•1,500 residential units•25 ft - 45 ft podium heights•70 ft – 200 ft tower heights•15,000 SF retail ground floor•420,000 SF office•250 rooms•130 ft max height•9,500 SF•30 ft max height•237 RV spaces•25 ft max heightSan Diego BaySan Diego BayL STREETI-5•415,000 SF max conference space• 240 ft max hotel structure height• 120 ft max conference center height• Portion of 2,850 hotel rooms allowed• 300 ft max height• 200,000 SF (cultural/retail)• 65 ft max heightResidentialResidentialRetail (around harbor)Retail (around harbor)•225,000 SF•25 ft max heightLocally and State-Approved Land Use Plan by City of Chula Vista and Port of San Diego
Chula Vista Bayfront–Decades of Change 9Locally and State-Approved Land Use Plan by City of Chula Vista and Port of San Diego
10Request for Qualifications (RFQ)•Issued RFQ June 30, 2014•Completed international marketing campaign•RIDA Selected October 14, 2014
RIDA’s Qualifications•Completed similar size projects•Secured equity and debt for similar size projects•Embraced Chula Vista Bayfront vision and partnership11Champions Gate
Gaylord Hotels 12Gaylord NationalGaylord PalmsGaylord OprylandGaylord Texan
Project Scope•1,450 hotel rooms (Private)•275,000 SF usable convention and meeting space (Public/Private)•Retail space and resort amenities (Private)•1,500 parking spaces (Public)•Phase 1A infrastructure (Public)13
Conceptual Rendering14
Conceptual Site Plan15
16Due Diligence•Revenue Analysis: CBRE Hotels (formerly PKF)•Development Cost Analysis: Jones Lang LaSalle (JLL)•Feasibility and Financial Gap Analysis: Keyser Marston associates (KMA)•Investment Banking and Bond underwriting Services: JP Morgan Securities (JP Morgan)
17Projected Project Cost RIDAJoint Powers Authority (JPA)TotalA.Hotel/Convention Center $688.0 M $225.0 M $913.0 MB.Infrastructure ---- $56.3 M $56.3 MC.Parking ---- TBD TBDD.Total $688.0 M $281.3 $969.3 M
Bayfront InfrastructureConvention CenterHOTEL and CONVENTION CENTERTransient Occupancy TaxDIF EIFDMunicipal Services AgreementPAD Fees RevenueExisting Lease RevenuesProject Lease RevenuesAnnual ContributionPacifica Land ExchangeSDG&E Revenue
19Project Benefits Chula Vista Jobs: 3,100 Construction3,700 On-goingEconomic Impact:$1.2 Billion Construction$390 Million/Year On-GoingSurplus Revenues*:District – $47.5MCity – $44.5M*At Lease Year 38Regional Jobs: 16,000Economic Impact: $1.7 Billion Airport Traffic:1.2% - 1.9% increase in airport arrivals
20Letter of Intent •Term – 4 Years with three, 1-year extensions •80/20 split on Net Operating Income after 11% return to RIDA•Standard Port Ground Rent after Year 37•District to receive 10% parking revenues on hotel parking and 100% on public parking •1-year exclusive right to negotiate on H23 for additional rooms•Right to comment on future development projects on adjacent parcels
21Next Steps Negotiate and Execute Disposition and Development AgreementImplement Schedule of PerformanceJoint Powers Authority Financing and InfrastructureRIDA Financing and Construction Negotiate and Execute Ground LeaseDevelopment of Project Development of Public Infrastructure
22RESOLUTION AUTHORIZING A NON-BINDING LETTER OF INTENT (LOI) WITH RIDA CHULA VISTA, LLC AND THE CITY OF CHULA VISTA FOR A RESORT HOTEL AND CONVENTION CENTER WITHIN THE CHULA VISTA BAYFRONTRecommendation