HomeMy WebLinkAboutReso 2018-064RESOLUTION NO. 2018-064
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE REVENUE SHARING
AGREEMENT BY AND BETWEEN THE CITY OF CHULA
VISTA AND THE SAN DIEGO UNIFIED PORT DISTRICT
(CHULA VISTA BAYFRONT RESORT HOTEL AND
CONVENTION CENTER AND RELATED
INFRASTRUCTURE)
WHEREAS, the City of Chula Vista (City) and the San Diego Unified Port District
(District), began a collaborative planning process with the community to develop a
comprehensive Chula Vista Bayfront Master Plan (CVBMP) in 2002; and
WHEREAS, on May 18, 2010, the District, as Lead Agency (as such term is defined in
California Public Resources Code Section 21067), certified a Final Environmental Impact Report
for the CVBMP and Port Master Plan Amendment (UPD No. 83356-EIR-658; SCH No.
2005081077) (District Clerk No. 56562); and
WHEREAS, the City is a Responsible Agency (as such term is defined in California
Public Resources Code Section 21069); and
WHEREAS, the CVBMP is the project described in the FEIR; and
WHEREAS, on May 18, 2010, the City, as a Responsible Agency after having
considered and relying on the Final Environmental Impact Report (No. 83356-EIR-658; SCH
No. 2005081077) for the CVBMP, pursuant to the California Environmental Quality Act (Public
Resources Code Section 21000, et seq.) (CEQA), made certain Findings of Fact; adopted a
Statement of Overriding Considerations and adopted a Mitigation Monitoring and Reporting
Program for the CVBMP; and
WHEREAS, no additional CEQA review is required at this time because the Revenue
Sharing Agreement is a government funding mechanism and fiscal activity that in and of itself
does not result in a potentially significant physical impact on the environment with the meaning
of Section 15378(b)(4) of the CEQA Guidelines, Chapter 3 of Title 14 of the California Code of
Regulations; therefore approval of the Revenue Sharing Agreement does not constitute approval
of a “project” under CEQA; and
WHEREAS, the first step in implementing the CVBMP was the adoption of the Chula
Vista Bayfront Master Plan Financing Agreement, which was approved by the City Council via
Resolution 2012-078; and
WHEREAS, an Amended and Restated Chula Vista Bayfront Financing Agreement,
reflecting updated contributions and commitments was approved by the City Council via
Resolution 2016-241; and
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Resolution No. 2018-064
Page No. 2
WHEREAS, the District’s Board of Commissioners approved an Exclusive Negotiating
Agreement (ENA) with RIDA for the construction of a hotel and convention center project (the
“Project”) on CVBMP Parcel H-3 on February 10, 2015; and
WHEREAS, on June 20, 2017, at a joint meeting of the City Council and the District’s
Board of Commissioners, the District’s Board of Commissioners approved the Amended and
Restated Chula Vista Bayfront Financing Agreement, as adopted by the City Council via
Resolution 2016-241; and
WHEREAS, at the June 20, 2017 joint meeting, the District’s Board of Commissioners
and the City Council approved a non-binding Letter of Intent (LOI) with RIDA to facilitate the
negotiation of a future Disposition and Development Agreement (DDA) for the Project (City
Council Resolution 2017-104); and
WHEREAS, the District and the City have negotiated and recommend approving a DDA
for the Project, addressing business terms and commitments by all parties through the close of
escrow for the Project; and
WHEREAS, the District and the City have negotiated and recommend approving a
Revenue Sharing Agreement between the District and the City addressing funding commitments
of each agency; application of residual revenues after payment of Project debt including
reimbursements to each agency; operating and maintenance responsibility for Project related
infrastructure; and allocation of Net Operating Income above an eleven percent (11%) Return on
Investment to be paid by RIDA to the District at a rate of twenty percent (20%) for Lease Year 1
through Lease Year 37 (Additional Rent); and
WHEREAS, at a special joint meeting of the City Council and the District’s Board of
Commissioners held on April 24, 2018, the City Council approved the proposed Revenue
Sharing Agreement, contingent upon subsequent approval of an Economic Development Subsidy
to RIDA Chula Vista, LLC, which is necessary to implement the DDA and Revenue Sharing
Agreement as proposed; and
WHEREAS, approval of the Economic Development Subsidy to RIDA Chula Vista,
LLC, is a companion resolution to this item.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it hereby incorporates the above recitals as stated herein and approves the Revenue
Sharing Agreement By and Between the City of Chula Vista and the San Diego Unified Port
District (Chula Vista Bayfront Resort Hotel and Convention Center and Related Infrastructure),
in the form presented, with such modifications as may be required or approved by the City
Attorney, a copy of which shall be kept on file in the Office of the City Clerk , and authorizes
and directs the City Manager to execute the same.
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Resolution No. 2018-064
Page No. 3
Presented by Approved as to form by
Gary Halbert Glen R. Googins
City Manager City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 24th day of April 2018 by the following vote:
AYES: Councilmembers: Aguilar, Diaz, McCann, Padilla, and Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Mary Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2018-064 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 24th day of April 2018.
Executed this 24th day of April 2018.
Kerry K. Bigelow, MMC, City Clerk
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