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HomeMy WebLinkAboutAgenda Packet 2018_07_17 I declare under penalty of perjun that I am employed by the City of Chula Vista in the office of the City Clerk and that I posted the document according to Brown Act requirements. Dated: 7 12- I Signed: Crry of CHULA VISTA �L Mary Casillas Salas, Mayor Patricia Aguilar, Councilmember Gary Halbert, City Manager Mike Diaz, Councilmember Glen R. Googins, City Attorney John McCann, Councilmember Kerry K. Bigelow, City Clerk Stephen C. Padilla, Councilmember Tuesday, July 17, 2018 5:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 SPECIAL MEETING OF THE HOUSING AUTHORITY MEETING JOINTLY WITH THE CITY COUNCIL OF THE CITY OF CHULA VISTA Notice is hereby given that the Mayor of the City of Chula Vista has called and will convene a Special Meeting of the Housing Authority meeting jointly with the City Council on Tuesday, July 17, 2018, at 5:00 p.m. in the Council Chambers. located at 276 Fourth Avenue, Building A, Chula Vista. California to consider items on this agenda. CALL TO ORDER ROLL CALL: Councilmembers Aguilar, Diaz, McCann, Padilla and Mayor Casillas Salas PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY A. 18-0293 20TH ANNIVERSARY CELEBRATION OF CHULA VISTA'S OUTDOOR AMPHITHEATRE (NOW CALLED MATTRESS FIRM) AND PRESENTATION OF ORIGINAL MODEL OF AMPHITHEATRE DESIGN FROM DEVELOPER CHRIS BITTERLIN City of Chula Vista Page i Printed on 711212018 City Council Agenda July 17, 2018 CONSENT CALENDAR (Items 1 - 8) The Council will enact the Consent Calendar staff recommendations by one motion, without discussion, unless a Councilmember, a member of the public, or staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed immediately following the Consent Calendar. 1• 18-0322 WRITTEN COMMUNICATIONS Letter from Councilmember Aguilar requesting an excused absence from the June 19, 2018 council meeting. Recommended Action: Council excuse the absence. 2. 18-0320 ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHAPTER 19.100 TO THE MUNICIPAL CODE TO ADOPT AND ESTABLISH AN URBAN AGRICULTURE INCENTIVE ZONE (SECOND READING AND ADOPTION) Department: Development Services Department Environmental Notice: The activity is not a 'Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore. pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Notwithstanding the foregoing, the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Recommended Action: Council adopt the ordinance. 3. 18-0321 A. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING AMENDMENTS TO THE EASTERN URBAN CENTER PLANNED COMMUNITY DISTRICT REGULATIONS AND DESIGN PLAN (FORM BASED CODE) FOR 207 ACRES OF LAND IN THE EASTERN URBAN CENTER PORTION OF THE OTAY RANCH RELATING TO MODIFICATIONS IN THE OVERALL BUILDOUT INTENSITY, BUILDING HEIGHTS AND DISTRICT 6 REGULATIONS (SECOND READING AND ADOPTION) B. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND SLF IV - MILLENIA, LLC (SECOND READING AND ADOPTION) City of Chula Vista Page 2 Printed on 7/12/2018 City Council Agenda July 17, 2018 Department: Development Services Department Environmental Notice: The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project was adequately covered in previously adopted Final Environmental Impact Report for the Eastern Urban Center (Millenia) Sectional Planning Area (SPA) Plan (FEIR 07-01) (SCH#2007041074). The Development Services Director has determined that only minor technical changes or additions to this document are necessary and that none of the conditions described in Section 15162 of the State CEQA Guidelines calling for the preparation of a subsequent document have occurred; therefore, the Development Service Director has prepared an Addendum to FEIR 07-01. Recommended Action: Council adopt the ordinances. 4. 18-0270 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING AN AMENDMENT TO THE OTAY VALLEY REGIONAL PARK CONCEPT PLAN Department: Development Services Department Environmental Notice: The Project qualifies for a Statutory Exemption pursuant to Section 15262 (Feasibility and Planning Studies) pursuant to the California Environmental Quality Act State Guidelines. Recommended Action: Council adopt the resolution. 5. 18-0137 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING THE CONTRACT FOR THE "CMP REHABILITATION OUTSIDE RIGHT-OF-WAY FY2017/2018 - MEASURE P (DRN0211)" PROJECT TO SPINIELLO COMPANIES IN THE AMOUNT OF $4,169,940 Department: Engineering Department Environmental Notice: The Director of Development Services has reviewed the proposed project for compliance with CEQA and has determined that the project qualifies for Class 1 Categorical Exemptions pursuant to Section 15301, Class 1 [b] (Existing Facilities) of the CEQA State Guidelines. Consistent with Section 15301(b), the proposed actions would not result in a significant effect on the environment, create a cumulative impact, damage a scenic highway, be located on site pursuant to Section 65962.5, or cause a substantial adverse change in the significance of a historical resource. The project involves no expansion of an existing use. Thus, no further environmental review is necessary. Recommended Action: Council adopt the resolution. City of Chula Vista Page 3 Printed on 7/12/2018 City Council Agenda July 17, 2018 6. 18-0198 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE SUBMITTAL OF THE ACTIVE TRANSPORTATION PROGRAM - CYCLE 4 GRANT APPLICATIONS AND STATING THE CITY'S ASSURANCE TO COMPLETE THE PROJECTS Department: Engineering Department Environmental Notice: The activity qualifies for an Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15301 (Existing Facilities); Section 15303 (New Construction or Conversion of Small Structures); Section 15304 (Minor Alterations to Land): Section 15183 (Projects Consistent with a Community Plan or Zoning); and Section 15061(b)(3). Recommended Action: Council adopt the resolution. 7. 18-0163 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO COUNCIL POLICY 102-02 FLAGS, BANNERS - IN PUBLIC RIGHT-OF-WAY, AUTHORIZING A PERMIT PROCESS FOR THE TEMPORARY PLACEMENT OF BANNERS ON CITY-OWNED STREETLIGHT STANDARDS, FENCES OR OTHER CITY-OWNED PROPERTY Department: City Manager Environmental Notice: The Project qualifies for a Statutory Exemption pursuant to Section 15268 (Ministerial Projects) of the California Environmental Quality Act State Guidelines. Recommended Action: Council adopt the resolution. City of Chula Vista Page 4 Printed on 7/12/2018 City Council Agenda July 17, 2018 8. 18-0267 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MODIFYING THE APPENDIX TO THE LOCAL CONFLICT OF INTEREST CODE TO ADD THE POSITIONS OF CITY ATTORNEY INVESTIGATOR, CITY LIBRARIAN, CONSTITUENT SERVICES REPRESENTATIVE, DIRECTOR OF COMMUNITY SERVICES, PRINCIPAL TRAFFIC ENGINEER, PARKS AND RECREATION ADMINISTRATOR, PUBLIC WORKS SUPERINTENDENT, REVENUE MANAGER, AND STORMWATER PROGRAM MANAGER TO THE LIST OF OFFICIALS WHO ARE REQUIRED TO FILE PERIODIC STATEMENTS OF ECONOMIC INTERESTS AND DESIGNATING THOSE FILERS AS "LOCAL AGENCY OFFICIALS" FOR PURPOSES OF AB 1234, THEREBY REQUIRING THEM TO PARTICIPATE IN MANDATED ETHICS TRAINING Department: City Clerk Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines, therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action: Council adopt the resolution. ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC COMMENTS Persons speaking during Public Comments may address the Council on any subject matter within the Council's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from discussing or taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff. Comments are limited to three minutes. City of Chula Vista Page 5 Printed on 7/12/2018 City Council Agenda July 17,2018 PUBLIC HEARINGS The following item(s) have been advertised as public hearing(s) as required by law. If you wish to speak on any item. please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 9. 18-0221 A. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 19.58 (USES) TO ADD SECTION 19.58.440 (MOBILE FOOD FACILITIES), AMENDING CHAPTER 8.20 (FOOD VENDORS), AMENDING CHAPTER 5.62 (VENDING VEHICLES), AMENDING CHAPTER 10.52 (STOPPING, STANDING, AND PARKING), AND AMENDING CHAPTER 5.07 (MASTER TAX SCHEDULE) (FIRST READING) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CHAPTER 14 (PLANNING FEES) OF THE CITY'S MASTER FEE SCHEDULE TO ESTABLISH MOBILE FOOD FACILITY PERMIT FEES Department: Development Services Department Environmental Notice: The Project is a legislative activity that qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15061(b)(3), Recommended Action: Council conduct the public hearing, place the ordinance on first reading and adopt the resolution. 10. 18-0244 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE, SALE AND DELIVERY OF MULTI-FAMILY HOUSING REVENUE BONDS OF THE CHULA VISTA HOUSING AUTHORITY FOR ST. REGIS APARTMENTS B. RESOLUTION OF THE CHULA VISTA HOUSING AUTHORITY REGARDING ITS INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS FOR A PROPOSED ACQUISITION AND REHABILITATION OF EXISTING AFFORDABLE UNITS AT ST. REGIS APARTMENTS Department: Development Services Department Environmental Notice: The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act State Guidelines. City of Chula Vista Page 6 Printed on 711212018 City Council Agenda July 17, 2018 Recommended Action: Council conduct the public hearing, adopt resolution A, and Authority adopt resolution B. 11. 18-0245 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE, SALE AND DELIVERY OF MULTI-FAMILY HOUSING REVENUE BONDS OF THE CHULA VISTA HOUSING AUTHORITY FOR VILLA SERENA AFFORDABLE APARTMENTS B. RESOLUTION OF THE CHULA VISTA HOUSING AUTHORITY REGARDING ITS INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS FOR A PROPOSED ACQUISITION AND REHABILITATION OF EXISTING AFFORDABLE UNITS AT VILLA SERENA SENIOR APARTMENTS Department: Development Services Department Environmental Notice: The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act State Guidelines. Recommended Action: Council conduct the public hearing, adopt resolution A, and Authority adopt resolution B. 12. 18-0274 ORDINANCE OF THE CITY OF CHULA VISTA APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND NORTH C.V. WATERFRONT L.P. FOR THE DEVELOPMENT OF APPROXIMATELY 33 ACRES OF LAND LOCATED IN THE HARBOR DISTRICT OF THE CHULA VISTA BAYFRONT MASTER PLAN AREA (FIRST READING) Department: Development Services Department Environmental Notice: The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity was covered in previously certified Environmental Impact Report UPD#83356-EIR-658/SCH#2005081077. Thus, no additional environmental review is required. Recommended Action: Council conduct the public hearing and place the ordinance on first reading. CITY MANAGER'S REPORTS MAYOR'S REPORTS COUNCILMEMBERS' COMMENTS City of Chula Vista Page 7 Printed on 7/12/2018 City Council Agenda July 17, 2018 COUNCILMEMBER AGUILAR: 13. 18-0305 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OPPOSING POLICIES WHICH SEPARATE. AND SUPPORTING NON-CRIMINAL PROCESSING OF, IMMIGRANT FAMILIES; AND CALLING ON THE U.S. GOVERNMENT TO IMMEDIATELY REUNITE FAMILIES SEPARATED AT THE BORDER This item was continued from 7/10/2018. Recommended Action: Council adopt the resolution. CITY ATTORNEY'S REPORTS CLOSED SESSION Announcements of actions taken in Closed Session shall be made available by noon on Wednesday following the Council Meeting at the City Attorney's office in accordance with the Ralph M. Brown Act(Government Code 54957.7). 14. 18-0286 CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6 Agency designated representatives: Gary Halbert, Glen Googins, Kelley Bacon, David Bilby, Courtney Chase, Ed Prendell and Simon Silva. Employee organization(s): Mid-Managers/Professional Association/Service Employees International Union, Local 221 (MM/PROF/SEIU) This item was continued from 7/10/2018. 15. 18-0301 CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: 318 4th Ave, Chula Vista, CA Agency Negotiators: Rick Ryals and Eric Crockett Negotiating Parties: City of Chula Vista and Heritage Group Under Negotiation: Price and Terms for Acquisition This item was continued from 7/10/2018. City of Chula Vista Page 8 Printed on 7/12/2018 City Council Agenda July 17, 2018 ADJOURNMENT to the Regular City Council Meeting on July 24, 2018, at 5:00 p.m., in the Council Chambers. Materials provided to the City Council related to any open-session item on this agenda are available for public review at the City Clerk's Office, located in City Hall at 276 Fourth Avenue, Building A, during normal business hours. In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service, contact the City Clerk's Office at(619) 691-5041(Califomia Relay Service is available for the hearing impaired by dialing 711) at least forty-eight hours in advance of the meeting. Most Chula Vista City Council meetings, including public comments, are video recorded and aired live on AT&T U-verse channel 99 (throughout the County), on Cox Cable channel 24(only in Chula Vista), and online at www.chulavistaca.gov. Recorded meetings are also aired on Wednesdays at 7 p.m. (both channels) and are archived on the City's website. Sign up at www.chulavistaca.gov to receive email notifications when City Council agendas are published online. City of Chula Vista Page 9 Printed on 7/12/2018 Councilmember Patricia Aguilar City Of Chula Vista 276 Fourth Avenue ++ Chula Vista,Ca 91910 MEMO 01YTY OF 619.691.5044—619.476.5379 Fax CHULA VISTA DATE: July 10, 2018 TO: Mayor and Council CC: City Attorney, City Manager, City Clerk FROM: Councilmember Patricia Aguilar RE: Absence from City Council meeting Dear Mayor and Councilmembers, Please excuse my absence from the City Council meeting of June 19, 2018. 1 was unable to attend the meeting due to illness. CITY COUNCIL AGENDA STATEMENT - - CITY OF CHULA VISTA July 17, 2018 File ID: 18--0-175 18-0320 TITLE ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHAPTER 19.100 TO THE MUNICIPAL CODE TO ADOPT AND ESTABLISH AN URBAN AGRICULTURE INCENTIVE ZONE RECOMMENDED ACTION Council conduct the public hearing and place the ordinance on first reading. SUMMARY The State of California passed Assemby Bill ("AB") 551 in 2013 to allow jurisdictions to create Urban Agriculture Incentive Zones ("UAIZ"). UAIZ's provide a tax incentive (by reducing property taxes) for landowners to use their vacant or blighted property for agricultural purposes for a minimum of five years. This is an effort to use otherwise vacant land,while creating an added benefit for the community. On November 7, 2017, Council authorized staff to initiate the process for UAIZ adoption with the County, whom provides first approval as the tax assessor (see City Council Resolution No. 17-198, Attachment 1). The County approved the Chula Vista UAIZ on May 15, 2018 (see County Board of Supervisors Resolution No. 18-062, Attachment 2). Therefore, staff is bringing documents related to this item back to City Council for final approval. City staff has reached out to.potentially impacted taxing entities regarding the possible effects of the UAIZ and has received no substantial questions, comment or concerns from these parties. Tonight's action would establish the UAIZ within Chula Vista City limits by adding Chapter 19.100 to the Municipal Code ("CVMC"). ENVIRONMENTAL REVIEW The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Notwithstanding the foregoing, the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Environmental Determination The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a"Project" as defined under Section 15378 of the state CEQA Guidelines because the activity is voluntary and does not involve any commitment to any - ----- -------- ------- — - ___ ._Page � 1 specific project that may result in a potentially significant physical impact on the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. Although environmental review is not required at this time, once the scope of potential individual projects has been defined, environmental review will be required for each project and the appropriate environmental determination will be made. BOARD/COMMISSION/COMMITTEE RECOMMENDATION On June 13, 2018, the Planning Commission provided an advisory recommendation that Council adopt (4- 0) the ordinance. DISCUSSION In keeping with the Healthy Community goal of the Strategic Plan, on January 5, 2016, the first Healthy Chula Vista Action Plan was adopted, providing a set of strategies to review, create, and evaluate policies and programs within the City and to develop key community partnerships to promote wellness within our community. A key component of the plan included residents'access to healthy food options. Consistent with the adopted Healthy Chula Vista Action Plan and its strategies, staff is recommending the adoption of an Urban Agriculture Incentive Zone (UAIZ) within Chula Vista as allowed by Assembly Bill 551 (passed in 2013 and recently amended in September 2017) and as initially brought before you in November 2017. AB551 allows jurisdictions to identify and adopt an UAIZ, an incentive for landowners to enter into contract to use their otherwise "unused" property for agricultural use for a minimum of five years in exchange for a reduction-in property tax. Rather than paying the standard applicable property tax rate (e.g. commercial tax rate for a commercial property), participating properties will be assessed at the lowest of three values: (1) the value based on the average per-acre value of irrigated.cropland in California; (2) the current fair market value; or (3) the factored base year value (Proposition 13 value). If this is less than the current assessed value of the land, then the owner will pay lower property taxes for the period of the UAIZ contract. ABS51 identifies the parameters for the program which have been summarized into a program guide (see UAIZ Program Guidelines,Attachment 3). Over 150 properties within Chula Vista were identified as being eligible. While properties may have been identified due to their current eligibility meeting the acreage requirements and by not having current improvements (e.g. structures), the City expects far less properties will voluntarily participate due to pending development plans. An analysis was conducted as part of the County approval process to identify all potentially impacted taxing entities, and determined that if all City properties were to participate the projected cost to all taxing entities would be between $345,000 to $395,000 annually, a summary specific to the City is provided below under ongoing fiscal impact. An analysis wouldbe conducted on each participating parcel at time of application,with notification to the affected entities. To establish the UAIZ for Chula Vista a Draft Ordinance was presented to the County Board of Supervisors in substantial form. Since County approval,minor changes have been included to reduce barriers related to agricultural use in specific residential zones, specifically CVMC section 19.100.060(B)(1). No other ..... -------------_1_______-_--__-1-------_-----------------------------.__..............._-_-_......................................................................_._........-----._.._--------------------,-..... .-........ ............. _----.-..-----...- Page 12 substantive changes were made (see CVMC 19.100 UAIZ Program, Attachment 4). Once the UAIZ is- effective, interested landowners must enter into a contract with the City and will have 60 days to initiate the agricultural use on the property (see Sample UAIZ Property Contract, Attachment 5). Currently contracts can be entered into up until January 1, 2029, the sunset date of the State law. If the property owner breaches their contract they will have to pay back the taxes the incentive granted them. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject to this action. Staff is not independently aware,. nor has staff been informed by any Planning Commission member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This item supports Section 3.1.1 - Implement policies and programs that support a healthy community,by providing healthier options. CURRENT-YEAR FISCAL IMPACT Staff costs associated with the preparation of this staff report and for the UAIZ adoption process are offset by grant funds through the Centers for Disease Control's Racial and Ethnic Approaches to Community Health (REACH Chula Vista). ONGOING FISCAL IMPACT Potential ongoing impacts were assessed by the County and any taxing agencies possibly affected by the adoption of the UAIZ were notified of the May 15th County public hearing. Specific to the city the following funds and total impact if all properties entered into a UAIZ could be impacted annually. City Fund Current Tax Projected Tax with UAIZ Loss due to UAIZ General Fund $20,286 $3,557 ($16,729) Otay Ranch No. 1 $771 $555 ($216) District No. 1 $40,750 $38,062 ($2,688) Bayfront Redevelopment Project - - ($61,590) Merged Redevelopment(AB1290) - - ($33,697) Otay Valley Rd. Redevelopment - - ($4,809) Southwest Redevelopment Project - - ($104,238) TOTAL POTENTIAL IMPACT ($223,967) Some Redevelopment areas are impacted first before other taxing entities and therefore could be impacted more significantly by a property utilizing the UAIZ program. Staff expects far less properties will voluntarily participate, particularly in redevelopment areas due to pending development plans. ---- ----- -- -----...-------- - ---� Page 13 ATTACHMENTS 1. City Council Resolution No. 2017-198 2. County Board of Supervisors Resolution No. 18-062 3. UAIZ Program Guidelines 4. CVMC 19.100 UAIZ Program S. Sample UAIZ Contract with Property Owner Staff Contact.Stacey Kurz,Senior Project Coordinator,Development Services Department ....__-_-----_- -.-...................._--.._..... ----_-----....._------- ------------......_..-_--------------.---------------------------------------- _._.... - - -- -------------- Page � 4 RESOLUTION NO. 2017-198 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING STAFF TO SUBMIT REQUIRED DOCUMENTATION TO THE COUNTY OF SAN DIEGO TO INITIATE THE ADOPTION PROCESS OF AN URBAN AGRICULTURE INCENTIVE ZONE WHEREAS,jurisdictions are becoming increasingly aware that cities play a critical role in supporting the health and well-being of their communities; and WHEREAS, the Healthy Chula Vista Action Plan adopted January 5, 2016 included strategies to increase local food production and encourage urban agriculture within the City of Chula Vista; and WHEREAS, Assembly Bill 551 passed in 2013 and recently amended in September 2017, allows jurisdictions to adopt an Urban Agriculture Incentive Zone ("UAIZ") for eligible landowners to enter into contract to use their otherwise "unused" property for agricultural use for a minimum of five years in exchange for a reduction in property tax; and WHEREAS, the first step in the adoption of an UAIZ is approval by the County of San Diego, in its role as the tax assessor and collector. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it authorizes staff to submit required documentation to the County of San Diego to initiate the adoption process of an Urban Agriculture Incentive Zone in Chula Vista. Presen by Approved as to form by —Kelly-&. B ghton, FASLA Gen R. Goo s Director of Development Services Cit Resolution No. 2017-198 Page No. 2 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 7th day of November 2017 by the following vote: AYES: Councilmembers: Aguilar, Diaz, McCann, and Salas NAYS: Councilmembers: None ABSENT: Councilmembers: Padilla Maryas, Mayor ATTEST: Kerry WBigelo-NP, 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. 2017-198 was duly passed,-approved, and adopted by the City.Council-at a regular meeting of the Chula Vista City Council held on the 7th day of November 2017. Executed this 7th day of November 2017. Kerry K. lUetow, MMC, City Clerk Resolution No. 18-062 Meeting Date: 05/15/18 (17) RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO REGARDING URBAN AGRICULTURE INCENTIVE ZONES IN THE CITY OF CHULA VISTA WHEREAS, California Assembly Bill 551 (Urban Agriculture Incentive Zones Act)added Chapter 6.3, commencing with Section 51040,to Part 1 of Division 1 of Title 5 of the California Government Code, amended Section 402.1 of the California Revenue and Taxation Code, and added Section 422.7 to the California Revenue and Taxation Code; and WHEREAS, the Urban Agriculture Incentive Zones Act is intended to promote smallscale agriculture on vacant, unimproved, or blighted lands in urban areas; and WHEREAS, the Urban Agriculture Incentive Zones Act authorizes, under specified conditions and until January 1, 2029, the City and a landowner to enter into a contract to enforceably restrict the use of vacant, unimproved, or otherwise blighted lands for small-scale agricultural use in urban areas, provided the contract is for a term of no less than five years and the property is at least 0.10 acre and not more than three acres in size; and WHEREAS, in exchange for the property owner restricting property for urban agriculture and entering into a contract pursuant to the Urban Agriculture Incentive Zones Act, the San Diego County Assessor(County Assessor) is required to value the restricted property at the lowest of three values;the value based on the average per-acre value of irrigated cropland in California, the current fair market value, or the factored base year value(Proposition 13 value); and WHEREAS, pursuant to the Urban Agriculture Incentive Zones Act, property owners that breach the contract or terminate the contract prior to its expiration are obligated to pay a fee equal to the tax benefit they received; and WHEREAS, pursuant to the Urban Agriculture Incentive Zones Act, no Urban Agriculture Incentive Zone may be established in any area that is currently subject to, or has been subject to within the previous three years, a contract pursuant to Cal. Gov't Code sections 51200 to 51297.4(Williamson Act); and WHEREAS, pursuant to the Urban Agriculture Incentive Zones Act, the establishment of an Urban Agriculture Incentive Zone within the City of Chula Vista is subject to approval by the County Board of Supervisors; NOW, THEREFORE, IT IS HEREBY RESOLVED THAT On this date, the Board of Supervisors held a noticed public hearing; and 1. This Board of Supervisors approves the City of Chula Vista's request to establish an Urban Agriculture Incentive Zone in the City of Chula Vista, upon the request by and voluntary agreement of owners of such properties, in compliance with the laws, rules and regulations applicable to such program. 2. This Resolution shall take effect immediately upon its adoption. APPROVED AS TO FORM AND LEGALITY COUNTY COUNSEL By: Rachel H. Witt, Senior Deputy I ON MOTION of Supervisor Roberts, seconded by Supervisor Horn, the above Resolution was passed and adopted by the Board of Supervisors, County of San Diego, State of California, on this 15'h day of May, 2018, by the following vote: AYES: Cox, Jacob, Roberts,Horn ABSENT: Gaspar STATE OF CALIFORNIA) County of San Diego)ss I hereby certify that the foregoing is a full, true and correct copy of the Original Resolution entered in the Minutes of the Board of Supervisors. DAVID HALL oF_supFR Clerk of the Board of Supervisors OP O n m Ln By: e . co Chrystal riguez,Deputy N 9y %C0 CQUNTy, Resolution-No. 1-8-062 Meeting Date: 05/15/18 (17) tiKt �� CIN OF tl CHULA VISTA C H U L A VISTA URBAN AGRICULTURE INCENTIVE ZONE PROGRAM GUIDELINES Background The Urban Agriculture Incentive Zone Act (UAIZ) was enacted in 2013 by the State of California to enable local jurisdictions to enter into a contract to restrict the use of vacant, unimproved,or otherwise blighted lands for small-scale production of agricultural crops and animal husbandry. In return, property owners would have their property valued at the lowest of three values; the value based on the average per-acre value of irrigated cropland in California, the current fair market value, or the factored base year value (Proposition 13 value). The goal is to provide a tangible financial incentive for a landowner who may not be interested in immediately developing vacant land to utilize their property for small-scale agriculture. The savings varies from property to property depending on how the parcel is currently assessed. The Chula Vista City Council adopted Chula Vista Municipal Code Chapter 19.100 (the "Ordinance") to establish an Urban Agriculture Incentive Zone Program in the City of Chula Vista. The State act defines "agricultural use" as: the cultivation and tillage of the soil; the production, cultivation, growing, and harvesting of any agricultural or horticultural products; the raising of livestock, bees, fur-bearing animals, dairy-producing animals, and poultry; agricultural education; and the sale of produce through field retail stands or farms stands. Scope of the Urban Agriculture Incentive Zone Program Targeted Population The state legislation permits urban agriculture incentive zones to only be established in "urban areas" with populations of 250,000 or more. The San Diego Association of Governments (SANDAG) estimated the City of Chula Vista over that requirement with a population of 265,070 as of January 1, 2016. The boundaries of the program are the City of Chula Vista boundaries. Participants in the program would be owners of vacant,blighted,or unimproved land interested in or already active in small-scale.agriculture. Determining Eligibility This potential property tax reduction is an incentive offered citywide to property owners of vacant, blighted, or otherwise unimproved properties. Vacant is defined as a parcel with some form of improvement such as a slab,but with no structures. Unimproved is defined as an empty parcel with no form of improvements on it. Blighted is defined by California Health and Safety Code Section 33030. Urban Agriculture Incentive Zone Chula Vista Program Guidelines The property must meet the standards established in State Code and the City of Chula Vista ordinance. Properties must be at least 0.1 acre in size and no larger than 3 acres (between 4,356 and 130,680 square feet).They must be completely dedicated toward agricultural use, free of any dwellings and only have physical structures that support the agricultural use of the site. Allowed structures include,but are not limited to,toolsheds,greenhouses,produce stands,and instructional space. Urban Agriculture Incentive Zone Agreement The Urban Agriculture Incentive Zone Program agreement is a legal contract binding the owner of a designated property to restrict the subject property to agricultural use consistent with California State Code and Chula Vista Municipal Code for a minimum of 5 years. In exchange for the dedication of property to agricultural uses, the owner will potentially receive reduced property taxes. The agreement is recorded with the County,which allows the Assessor to determine the property value at the lowest of three values; the value based on the average per-acre value of irrigated cropland in California, the current fair market value, or the factored base year value (Proposition 13 value). The agreement runs with the property despite individual ownership. The Urban Agriculture Incentive Zone Program agreement must be entered into or renewed prior to January 1, 2029. The City of Chula Vista may propose to end the Urban Agriculture Incentive Zone Program agreement if the property is not maintained in accordance with the contract provisions. The City of Chula Vista may propose to extend the program, contingent on the California State'Legislature passing legislation extending the state bill. Maintenance of agricultural use is required for the entire duration of the contract. Inspection Schedule/Monitoring The City is responsible for assurance that a property remains in compliance with the provisions of the Urban Agriculture Incentive Zone Program agreement. Properties must begin urban agriculture operations within 60 days of contract filing. Annual monitoring will entail site visits, staff review of compliance with contract requirements, and will provide adequate review to ensure that agricultural use is occurring on the property. If there has been a change in ownership the City will contact the new owner to explain the responsibilities and provisions under the Urban Agriculture Incentive Zone Program agreement. The City will work with property owners to remedy any problems identified through the inspection process. A restoration plan may be prepared as part of a renewal of an agreement to assure the necessary remedy. The yearly inspection is the minimum that will occur, the City of Chula Vista has to the right/ability to inspect more frequently if concerns have been raised in relation to the property. z CHUW VISTA ��AIt�Y CHUTA VISTA Urban Agriculture Incentive Zone Chula Vista Program Guidelines Fiscal Impact Property Owner Tax Savings The County Assessor determines the property value at the lowest of three values; the value based on the average per-acre value of irrigated cropland in California, the current fair market value,or the factored base year value (Proposition 13 value). Fees This program includes the following fees, adopted by the City Council, effective to recover the costs of staff time devoted to the tasks specifically related to all components of the Urban Agriculture Incentive Zone Program: $_ zoning determination fee, $_ County filing fee. Annual Threshold of New Reduction in Property Tax Revenue Based on the current level of agricultural use within the City of Chula Vista,the City Council does not establish an annual threshold. The City Council reserves the right to establish a threshold in the future. Fiscal Impact to Taxing Agencies In establishing a UAIZ encompassing the entire city boundaries, over 150 separate properties are identified as possibly eligible. If 100% of all potentially eligible properties participated in the UAIZ,all taxing agencies combined could see that annual revenue drop by $394,210. 3 `rrMi: cHu a�vlsca eA( Y CHULA VISTA ATTACHMENT 4 Chapter 19.100 URBAN AGRICULTURE INCENTIVE ZONE PROGRAM Sections: 19.100.010 Title. 19.100.020 Purpose. 19.100.030 Urban Agriculture Incentive Zone ("UAIZ") Established. 19.100.040 UAIZ Contract Required. 19.100.050 UAIZ Property. 19.100.060 Agricultural Uses. 19.100.070 County Assessor. 19.100.080 Agricultural Use Commencement. 19.100.090 Pesticides and Fertilizers-Restrictions. 19.100.100 Annual Inspection for Conformance. 19.100.110 Cancellation of UAIZ Contract with City. 19.100.120 Fees. 19.100.130 Implementation Date. 19.100.140 Limitation on Entry of UAIZ Contracts. 19.100.150 Additional Requirements CHAPTER 19.100 19.100.010 Title. This chapter shall be known as the City of Chula Vista Urban Agriculture Incentive Zone Program and may be referred to as the UAIZ Program. 19.100.020 Purpose. The purpose of the City of Chula Vista Urban Agricultural Incentive Zone Program is to implement AB 551, as described in section 51040, et seq., of the California Government Code and known as the Urban Agriculture Incentive Zones Act, to promote and foster urban agriculture. The UAIZ Program is designed to increase access to healthy food by providing an incentive for property owners of eligible vacant or unimproved properties within the City of Chula Vista to utilize these properties for small-scale agricultural uses. The property owners of eligible properties may voluntarily enter into agreements with the City to participate in the UAIZ Ordinance Page 2 Program(to promote urban agriculture enterprises) in exchange for potential reduced property tax assessments under section 422.7 of the California Revenue and Taxation Code. 19.100.030 Urban Agriculture Incentive Zone Established. In accordance with Urban Agricultural Incentive Zones Act, as set forth in AB 551 and which may be amended from time to time by the State Legislature, an Urban Agriculture Incentive Zone is hereby established in the City of Chula Vista. The Urban Agriculture Incentive Zone shall consist of all urban areas, as defined in Government Code sections 51040.3(a) and 51040.3(b), within the City of Chula Vista except those lands that are currently subject to, or have been subject to within the three(3) years immediately preceding the effective date of this Ordinance, a contract pursuant to the Williamson Act. The boundaries of the Urban Agriculture Incentive Zone shall be coterminous with the boundaries of the City of Chula Vista. 19.100.040 UAIZ Contract Required. Pursuant to the Urban Agricultural Incentive Zones Act, the City and any property owners within the Urban Agriculture Incentive Zone may enter into an enforceable contract, under terms and conditions required by the City Manager or City Attorney, including terms and conditions to ensure compliance with Section 19.100.060(B), to restrict the use of eligible property to small- scale agriculture uses for an initial term of not less than five(5) years, and which may be extended at the discretion of the City Manager("UAIZ Contract"). The executed UAIZ Contract and any attendant attachments shall be recorded by the property owner with the County Recorder, with copies of the recorded documents to be provided to the City Manager within two (2)business days of the recordation. 19.100.050 UAIZ Property. Property eligible to enter into an UAIZ Contract shall consist of the following: 1. The property must be vacant or unimproved. The property may not contain any habitable dwellings, but may contain only non-habitable structures that are or will be accessory to agricultural uses, such as a toolshed, greenhouse, produce stand, or instructional facility as approved by the City Manager or their designee; and 2. The property is located within a Census-designated urbanized area, as defined in the AB 551, so long as it is not wholly or partially within a National Recreation Area, Significant Ecological Area, or Sensitive Environmental Resource Area; and 3. The property in its entirety shall be available for and dedicated to agricultural uses immediately and for the duration of the contract and which shall be for a term of five (5) years, which may be renewed at the discretion of the City Manager; and 4. The property shall be a minimum of one-tenth(0.10) of an acre and a maximum of three (3) acres; and 5. Secured property tax obligations shall be current and paid according to installments determined by State law. 6. All structures are subject to the provisions in CVMC 19.58.020. 19.100.060 Agricultural Uses A. Agricultural Use Defined. Subject to paragraph B (below), agricultural use(s) shall mean farming in all its branches including,but not limited to the cultivation and tillage of soil, the Ordinance Page 3 production, cultivation, growing, and harvesting of any agricultural or horticultural products, the raising of livestock,bees, fur-bearing animals, dairy-producing animals,poultry, agricultural education, the sale of produce through field retail stands or farm stands as defined by Article 5 (commencing with Section 47030) of Chapter 10.5 of Division 17 of the Food and Agriculture Code, and any practices performed by a farmer or on farm as incidental to or in conjunction with farm operations. The term "agricultural use" does not include timber production. The production, cultivation, growing, and harvesting of marijuana shall be prohibited in the UAIZ. B. Zoning and Municipal Code limitations on Agricultural Use(s)/UAIZ. 1. Neither the creation of the Urban Agricultural Incentive Zone nor the execution of any UAIZ Contract shall in any way expand the allowable uses of any property under the City's existing land use zoning regulations or ordinances. Eligible land uses under the UAIZ Program may include any agricultural land uses that are permitted or conditionally permitted, but are subject to limitations set forth in this chapter, by AB 551, by the Chula Vista Municipal Code, including, but not limited to, Title 6 [Animals] and Chapter 19.20 [Agricultural Zone], or by the terms and conditions set forth in the UAIZ Contract. Conditional Use Permits may be required by the City Manager. 2. Chula Vista Municipal Code section 19.16.030 provides that lot sizes may not be less than one acre for crop and tree farming, as defined in Chapter 19.16. Notwithstanding the aforementioned one acre limitation, a lot size may be less than one (1) acre, but not less than one-tenth(.10) of an acre, when a UAIZ Contract is entered into pursuant to section 19.100.040 of this chapter. 19.100.070 County Assessor. Pursuant to the Urban Agricultural Incentive Zones Act, upon recordation of a UAIZ Contract, the County Assessor is required to value the restricted property at the lowest of three values: the value based on the average per-acre value of irrigated cropland in California as reported by the National Agricultural Statistics Service of the United States Department of Agriculture, the current fair market value, or the factored base year value(Proposition 13 value). 19.100.080 Agricultural Use Commencement and Continuation For Duration of UAIZ Contract. Agricultural use must commence on the property within sixty(60) days after the recordation of the UAIZ Contract. Pursuant to the Urban Agricultural Incentive Zones Act, the entirety of the property subject to a UAIZ Contract shall be dedicated to agricultural uses and such agricultural uses shall continue for the duration of the UAIZ Contract. 19.100.090 Pesticides and Fertilizers-Restrictions. Pursuant to the Urban Agricultural Incentive Zones Act, only pesticides or fertilizers sanctioned by the U.S. Department of Agriculture's National Organic Program may be used on the property that is subject to the UAIZ Contract. 19.100.100 Annual Inspection for Conformance. The City Manager may conduct a site inspection to verify the property owner's conformance to the terms of the UAIZ Contract, including, but not limited to an initial inspection within ninety Ordinance Page 4 (90) days of the execution of a UAIZ Contract, every year after the execution of the UAIZ Contract, or as otherwise determined necessary by the City Manager. 19.100.110 Cancellation of an UAIZ Contract with the City. A. Circumstances to Cancel UAIZ Contract. Circumstances for cancelling a UAIZ Contract with the City shall include the following: 1. City-Initiated Cancellation for Noncompliance. If the City Manager finds that the property does not conform to the terms of the UAIZ Contract or the property owner does not permit a site inspection as set forth in section 19.100.100, the City Manager shall provide notice to the property owner of said non-compliance and a date by which to bring the property into compliance with the UAIZ Contract or to permit an inspection pursuant to section 19.100.100. Should the property owner fail to comply with the corrective actions required by the City Manager within a time period set forth by City Manager, then notice of cancellation shall be provided to the property owner,personally or by mail, that the UAIZ Contract will be cancelled fifteen(15) calendar days after personal service or mailing of the notice. At the end of the fifteen(15) days, if the property owner has not brought the property into compliance with the terms of the UAIZ Contact or permitted an inspection pursuant to section 19.100.100, the City Manager shall execute a cancellation document and record it with the Registrar-Recorder/County Clerk and notify the County Assessor. 2. Property Owner-Initiated Cancellation. If the property owner submits a request to the City Manager to cancel a recorded UAIZ Contract, the City Manager will execute a cancellation document with the property owner, which the City Manager will record with the Registrar-Recorder/County Clerk and notify the County Assessor. B. Effect of Cancellation—Fee and Tax Rate. Pursuant to Government Code section 51042(a)(2)(B), the City shall impose a fee equal to the cumulative value of the tax benefit received during the duration of the UAIZ Contract upon the property owner for cancellation of any UAIZ Contract prior to the expiration of that contract, unless the City Council makes a determination that the cancellation was caused by extenuating circumstances despite the good faith effort by the property owner. The property also shall be re-assessed to its previous non-agricultural tax rate by the County Assessor following recordation of the cancellation document. 19.100.120 Fees. A property owner may be subject to a fee payable to the City for the implementation, administration, and monitoring of the UAIZ Contract and its terms. Said fees shall be promulgated in accordance to the City's Master Fee Schedule processes. 19.100.130 Implementation Date. The Urban Agriculture Incentive Zone Program shall not be effective until the County of San Diego has approved the City of Chula Vista participation the UAIZ Program as required by AB 551. 19.100.140 Limitation on entry of UAIZ Contracts. Ordinance Page 5 Unless extended by State law, no UAIZ Contract for property within the City's UAIZ shall be renewed or created after January 1, 2029. However, any UAIZ Contract entered into pursuant to this Chapter on or before January 1, 2029, to the extent allowed by law, shall be valid and enforceable for the duration of the UAIZ Contract. 19.100.150 Additional Requirements. A property owner who enters into a UAIZ Contract and the property subject to a UAIZ Contract are subject to additional regulations as determined by the Chula Vista Municipal Code, by the County of San Diego, or by the State Legislature. URBAN AGRICULTURE INCENTIVE ZONE CONTRACT This URBAN AGRICULTURE INCENTIVE ZONE CONTRACT ("Contract" or "UAIZ Contract"), dated , for purposes of identification only, is by and between the City of Chula Vista, a California municipal corporation, ("City") and [PROPERTY OWNER] ("Property Owner"). The City and Property Owner are sometimes each referred to as "Party" and collectively as the "Parties." Background In 2013, the State of California enacted the Urban Agriculture Incentive Zones Act(commencing with California Government Code section 51040) (''UAIZ Act"), which recognizes the public interest in promoting sustainable urban farming. The UAIZ Act authorizes cities and counties to establish Urban Agriculture Incentive Zones ("UAIZ") for the purpose of entering into voluntary contracts with property owners of vacant, unimproved, or blighted lands within the zone. Through these contracts, property owners can agree to commit their land to urban agriculture for a minimum of five years in exchange for potential lower property taxes during the term of the contract. To take advantage of the UAIZ Act, the City, in 2018, adopted Chula Vista Municipal Code Chapter 19.100 (the "Ordinance"). The Ordinance authorizes the City Manager or the City Manager's designees to enter into UAIZ Contracts with eligible property owners who agree to restrict the use of eligible property to small-scale agriculture uses ("Urban Agriculture" or "Agricultural Uses") for an initial term of no less than five years, subject to the terms of the Ordinance, in exchange for potential lower property taxes during the term of the contract. The Property Owner owns the property located at [ADDRESS], in Chula Vista, California (the "Property"), and further described in Exhibit A, and has requested to enter into this Contract with the City. WITH THESE BACKGROUND FACTS IN MIND AND FOR VALUABLE AND SUFFICIENT CONSIDERATION, THE CITY AND THE PROPERTY OWNER AGREE AS FOLLOWS: 1. Term. The term of this Contract (''Term") will run for five (5) years beginning.on the Effective Date, unless terminated earlier in accordance with Section 5 of this Contract. 2. Property Owner Representations. Property Owner represents and warrants the following: 2.1 Property Size. The Property is at least 0.10 of an acre, and not more than three (3) acres. 2.2 Other Program Requirements. The Property meets all other requirements of the UAIZ Act and the Ordinance to enter into this contract. 2.3 Legal Description. The legal description in Exhibit A is a true and accurate legal description of the Property. 3. Property Owner Responsibilities. The Property Owner agrees to the following: 3.1 Use of the Property; Throughout the Term of the Contract, the Property Owner shall dedicate and use the entire Property for Urban Agriculture purposes in accordance with Government Code section 51040.3(c), the Ordinance, and this Contract. 3.2 Commencement of Urban Agriculture. The Property Owner shall commence Urban Agriculture (also referred to as "Agriculture Use') in accordance with Chula Vista Municipal Code section 19.100.060 on the Property within sixty (60) days of the execution and recordation of this Contract. 3.3 Prohibition Against Dwellings. Except as provided in Government Code section 51042(c), there shall be no dwellings on the Property throughout the Term of the Contract. 3.4 Government Inspections. The Property Owner consents to periodic inspections of the Property, upon 72-hours' notice, by the City Manager, the City Manager's designee, the San Diego County assessor, and the State Board of Equalization, as may be necessary for tax assessment purposes or to determine the Property Owner's compliance with this Contract or the law, including the Ordinance. 3.5 Pesticides and Fertilizers. The Property Owner shall not use any pesticides or fertilizers on the Property, except for those pesticides or fertilizers allowed by the United States Department of Agriculture's National Organic Program. _3.6 Water-Service. The Property shall have a metered water service connection- 3.7 Administration Fee. The City, pursuant to Chula Vista Municipal Code section 19.100.120, may charge the Property Owner a fee for the reasonable costs of implementing and administering the Contract, including the costs related to inspections on the Property and determining compliance with the Contract. The Property Owner shall pay the fee within forty-five (45) days of the City's request. 3.8 Cessation or Change in Activity. (A) The Property Owner shall notify the City's Development Services Department Director("Director"), in writing, of the following: (1) Any cessation of Urban Agriculture for any reason, including cessation due to the loss of a tenant who was conducting Urban Agriculture on the Property; and (2) Any change in Urban Agriculture activity from that contemplated in the Urban Agricultural Plan(Exhibit B). Notices under this section must be given within two (2) weeks of the cessation or change in activity. (B) If the Property owner intends to continue to use the Property for Urban Agriculture, _ the Property Owner must notify the Director of that fact in its notice and resume Urban Agricultural activity within three (3) months of its notice to the Director of any cessation or change in use. 3.9 Additional terms. Property Owner agrees to any additional terms set forth in Exhibit C, which are hereby incorporated into this Contract by reference. 4. Property Tax. This Contract is entered into under the authority of the UAIZ Act and the Ordinance. Accordingly, the Property shall be assessed pursuant to California Revenue and Taxation Code section 422.7. Property owner understands and agrees that the aforementioned property tax assessment (including attendant calculation) is the function of the San Diego County Assessor. Property owner agrees to hold City harmless and waives any claims against the City, including its Indemnified Parties (as defined below) regarding the aforementioned property tax assessment. 5. Termination. 5.1 Events of Default. The following events, if not cured within ten (10) days of the City's written notice (unless the City's notice provides for a different date), are "Events of Default": (A) The Property Owner has failed to commence Urban Agriculture on the Property within sixty(60) days of the Effective Date of the Contract; (B) The Property Owner has failed to conduct Urban Agriculture on the Property in accordance with the UAIZ Act, the Ordinance, and this Contract; (C) The Property contains a dwelling, except as provided in Government Code section 51042(c),- (D) 1042(c);(D) The Property Owner has failed to resume Urban Agriculture on the Property after cessation in accordance with Section 3.8(B) of this Contract; (E) The Property Owner has failed to allow any inspection as provided in Section 3.5 of this Contract; (F) The Property Owner has failed to timely pay the Administration Fee in accordance with Section 3.7 of this Contract; (G) The Property Owner has failed to maintain adequate insurance for the Property in accordance with Section 7 of this Contract; or (H) The Property Owner has failed to comply with any other provision of this Contract, the Ordinance, or UAIZ Act. Upon the occurrence of an Event of Default, the City may terminate the Contract, as set forth in the Chula Vista Municipal Code section 19.100.110. The City shall give the Property Owner and the San Diego County Assessor notice of the termination. Upon termination of the Contract, the City shall record a Notice of Termination with the San Diego County Recorder and provide a copy of the recorded notice to the San Diego County Assessor. 5.2 Property Owner Termination. Prior to the expiration of the Term, the Property Owner may terminate the Contract at any time by submitting written notice to the City's Development Services Department Director and the county assessor and subject to the terms of Chula Vista Municipal Code section 19.100.110(A)(2) and (B). Upon termination of the Contract, the Property Owner shall record a notice of termination with the San Diego County Recorder and provide a copy of the recorded notice to the San Diego County Assessor. 5.3 Termination Fee. If the Contract is terminated by the City or the Property Owner prior to the expiration of the Term, the Property Owner must pay to the San Diego County Treasurer-Tax Collector a termination fee equal to the cumulative value of the tax benefit received during the duration of the Contract, as determined by the San Diego County Assessor. Interest will be determined by the City. The City Manager or the City Manager's designee may waive payment of all or a portion of the fee if he or she determines that the termination was caused by extenuating circumstances despite the good faith effort by the Property Owner. 6. Indemnity and Administrative Claims 6.1 Indemnity. The Property Owner shall defend, hold harmless and indemnify the City, its elected and appointed officers, agents, employees and volunteers (collectively, "Indemnified Parties"), and each and every one of them, from and against any and all actions, damages, costs, liabilities, claims, demands, losses, judgments, penalties, costs and expenses of every type and description, including, but not limited to, any fees or costs reasonably incurred by the City's staff attorneys or outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities"), including but not limited to Liabilities arising from personal injury or death, damage to personal, real or intellectual property or the environment, contractual or other economic_damages, or regulatory penalties, arising-out-of-or-in-any way_connected with performance of or failure to perform this Contract by the Property Owner, any sub- consultant, subcontractor or agent, volunteer, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, whether or not (i) such Liabilities are caused in part by a.party indemnified hereunder or (ii) such Liabilities are litigated, settled or reduced to judgment; provided that the foregoing indemnity does not apply to liability for any damage or expense for death or bodily injury to persons or damage to property to the extent arising from the sole negligence or willful misconduct of the Indemnified Parties. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the Indemnified Parties which may be in combination with the active or passive negligent acts or omissions of the Property Owner, its officers, employees, agents or officers, volunteers, or any third party. 6.2 Administrative Claims Requirements and Procedures. No suitor arbitration shall be brought arising out of this Agreement against City unless a claim has first been presented in writing and filed with City and acted upon by City in accordance with the' procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may be amended, the provisions of which, including such policies and procedures used by City in the implementation of same, are incorporated herein by this reference. Upon request by City, Property shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. Compliance with this section shall not relieve Property Owner with any other claims requirements under state or federal law. 7. Miscellaneous Provisions. 7.1 Effective Date and Recordation. Upon approval by the Office of the City Attorney, this Contract is effective on the date both Parties have signed it, as indicated by the dates in the signature blocks below. Within 20 days after the Effective Date of this Contract, the City shall record with the San Diego County Recorder a copy of the Contract which shall describe the land subject thereto, together with a map showing the location of the Property. 7.2 Notices. Any notice required under this Contract or by reason of the application of any law will be deemed to have been given by a Party on the business day immediately following the day of personal delivery to a recognized overnight courier or on the third business day after deposit in the U.S. mail, postage prepaid. 7.3 Entire Contract. This document, including all Exhibits, contains the entire agreement between the Parties and supersedes whatever oral or written understanding they may have had prior to the execution of the Contract. No alteration to this Contract is valid unless approved in writing by the Parties. 7.4 Public Record. The Property Owner understands that this Contract is a public record under the California Public Records Act and will be disclosed to the public upon request. 7.5 Severability. If any portion of this Contract or the application thereof to any person or circumstance is held invalid or unenforceable, the remainder of this Contract shall not be affected thereby and shall be enforced to the greatest extent permitted by law. 7.6 No Waiver. No failure by the City to insist on the strict performance of any obligation of the Property Owner under this Contract, or to exercise any right power or remedy arising out of a breach hereof, shall constitute a waiver of such breach or of the City's right to demand strict compliance with any terms of this Contract. 7.7 Choice of Law; Venue. The procedural and substantive laws of the State of California shall govern the interpretation and enforcement of this Contract, without application of conflicts of laws, principles, or statutes. The Parties acknowledge and agree that this Contract is entered into, is to be fully performed in, and relates to real property located in the County of San Diego. All legal actions arising from this Contract shall be filed in the Superior Court of the State of California in and for the County of San Diego or in the United States District Court with jurisdiction in the County of San Diego. 7.8 Binding on Successors and Assigns. The covenants, benefits, restrictions, and obligations contained in this Contract shall run with the land and shall be binding upon and inure to the benefit of all successors and assigns in interest of the Property Owner. 7.9 Further Assurances. The Parties, at any time after the execution of this Contract will execute, acknowledge, and deliver any further assignments, conveyances, and other assurances, documents, and instruments reasonably requested by the other party for the purpose of performing the obligations created hereunder. 7.10 Third Parties. This Contract is made and entered into for the sole protection and benefit of the Parties and their successors and assigns, and no other person or entity is a third-party beneficiary of, or has any direct or indirect cause of action or claim in connection with the Contract or any other related document to which that person or entity is not a party. 7.11 Attorney's Fees. The Party prevailing in any litigation concerning this Contract or any documents related to it will be entitled to an award by the court of reasonable attorneys' fees and litigation costs through final resolution on appeal, in addition to any other relief that may be granted in the litigation. If the City is the prevailing party, then this section will apply whether the City is represented in the litigation by the Office of the City Attorney or by outside counsel. 7.12 Relationship of the Parties. Nothing in this Contract should be deemed or construed to create between the Parties a joint venture, partnership, or any other relationship of association other than that described herein. 7.13 Authority to Sign. The person signing the Contract on the Property Owner's behalf represents that he or she is the Property Owner of the Property or is authorized to sign on behalf of the Property Owner and that no further action beyond his or her signature is required_to_bind_the_P_roperty Owner to this Contract. 7.14 Insurance. Property Owner agrees to acquire and maintain insurance as may be required by the City. IN WITNESS WHEREOF, by executing this UAIZ Contract where indicated below, City and Property agree that they have read and understood all terms and conditions of the UAIZ Contract, that they fully agree and consent to bound by same, and that they are freely entering into this Contract as of the Effective Date. PROPERTY OWNER: CITY OF CHULA VISTA: BY: Date: BY: Date: Enter Name Of Signatory GARY HALBERT Enter Title Of Signatory CITY MANAGER ATTEST: BY: Kerry K. Bigelow, MMC City Clerk APPROVED AS TO FORM: BY: Glen R. Googins City Attorney SECOND READING AND ADOPTION ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHAPTER 19.100 TO THE MUNICIPAL CODE TO ADOPT AND ESTABLISH AN URBAN AGRICULTURE INCENTIVE ZONE WHEREAS, California Assembly Bill 551 ("Urban Agriculture Incentive Zones Act") added Chapter 6.3, commencing with 51040, to Part 1 of Division 1 of Title 5 of the California Government Code, amended 402.1 of the California Revenue and Taxation Code, and added 422.7 to the California Revenue and Taxation Code; and WHEREAS, the Urban Agriculture Incentive Zones Act is intended to promote small scale agriculture on vacant,unimproved, or blighted lands in urban areas; and WHEREAS, the City of Chula Vista ("'City") has existing land use zoning regulations pertaining to small-scale agriculture; and WHEREAS, the Urban Agriculture Incentive Zones Act authorizes, under specified conditions and until January 1, 2029 (or to a time otherwise provided for by the State), the City and a property owner to enter into a contract to restrict the property owner's use of their vacant, unimproved, or otherwise blighted lands for small-scale agricultural use in urban areas, provided the contract is for a term of no less than five (5) years and the property is at least 0.10 acre and not more than three(3) acres in size; and WHEREAS, in exchange for the property owner restricting their property for urban agriculture and entering into a contract pursuant to the Urban Agriculture Incentive Zones Act, the San Diego County Assessor ("County Assessor") is required to value the restricted property at the lowest of three values: the value based on the average per-acre value of irrigated cropland in California, the current fair market value, or the factored base year value (Proposition 13 value); and WHEREAS, pursuant to the Urban Agriculture Incentive Zones Act, property owners who breach the contract or terminate the contract prior to its expiration are obligated to pay a fee equal to the tax benefit they received; and WHEREAS, pursuant to the Urban Agriculture Incentive Zones Act, no Urban Agriculture Incentive Zone may be established in any area that is currently subject to, or has been subject to, within the previous three(3) years, a contract pursuant to California Government Code sections 51200 to 51297.4 (the "Williamson Act"); and WHEREAS, pursuant to the Urban Agriculture Incentive Zones Act, the establishment of an Urban Agriculture Incentive Zone within the City of Chula Vista is subject to approval by the County Board of Supervisors, which was approved by County Resolution No. 18-062 on May 15, 2018; and Ordinance Page 2 WHEREAS, on June 13, 2018 the City of Chula Vista Planning Commission held a public hearing and recommended by a vote of 4-0 that City Council adopt the ordinance (CVMC 19.100)to establish an Urban Agriculture Incentive Zone by Resolution No. MPA 18-0005. NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I. Chapter 19.100 is hereby added to the Chula Vista Municipal Code as follows: Chapter 19.100 URBAN AGRICULTURE INCENTIVE ZONE PROGRAM Sections: 19.100.010 Title. 19.100.020 Purpose. 19.100.030 Urban Agriculture Incentive Zone ("UAIZ") Established. 19.100.040 UAIZ Contract Required. 19.100.050 UAIZ Property. 19.100.060 Agricultural Uses. 19.100.0.70 County Assessor. 19.100.080 Agricultural Use Commencement. 19.100.090 Pesticides and Fertilizers-Restrictions. 19.100.100 Annual Inspection for Conformance. 19.100.110 Cancellation of UAIZ Contract with City. 19.100.120 Fees. 19.100.130 Implementation Date. 19.100.140 Limitation on Entry of UAIZ Contracts. 19.100.150 Additional Requirements CHAPTER 19.100 19.100.010 Title. This chapter shall be known as the City of Chula Vista Urban Agriculture Incentive Zone Program and may be referred to as the UAIZ Program. Ordinance Page 3 19.100.020 Purpose. The purpose of the City of Chula Vista Urban Agricultural Incentive Zone Program is to implement AB 551, as described in section 51040, et seq., of the California Government Code and known as the Urban Agriculture Incentive Zones Act, to promote and foster urban agriculture. The UAIZ Program is designed to increase access to healthy food by providing an incentive for property owners of eligible vacant or unimproved properties within the City of Chula Vista to utilize these properties for small-scale agricultural uses. The property owners of eligible properties may voluntarily enter into agreements with the City to participate in the UAIZ Program(to promote urban agriculture enterprises) in exchange for potential reduced property tax assessments under section 422.7 of the California Revenue and Taxation Code. 19.100.030 Urban Agriculture Incentive Zone Established. In accordance with Urban Agricultural Incentive Zones Act, as set forth in AB 551 and which may be amended from time to time by the State Legislature, an Urban Agriculture Incentive Zone is hereby established in the City of Chula Vista. The Urban Agriculture Incentive Zone shall consist of all urban areas, as defined in Government Code sections 51040.3(a) and 51040.3(b), within the City of Chula Vista except those lands that are currently subject to, or have been subject to within the three(3) years immediately preceding the effective date of this Ordinance, a contract pursuant to the Williamson Act. The boundaries of the Urban Agriculture Incentive Zone shall be coterminous with the boundaries of the City of Chula Vista. 19.100.040 UAIZ Contract Required. Pursuant to the Urban Agricultural Incentive Zones Act, the City and any property owners within the Urban Agriculture Incentive Zone may enter into an enforceable contract, under terms and conditions required by the City Manager or City Attorney, including terms and conditions to ensure compliance with Section 19.100.060(B), to restrict the use of eligible property to small- scale agriculture uses for an initial term of not less than five (5) years, and which may be extended at the discretion of the City Manager("UAIZ Contract'). The executed UAIZ Contract and any attendant attachments shall be recorded by the property owner with the County Recorder, with copies of the recorded documents to be provided to the City Manager within two (2)business days of the recordation. 19.100.050 UAIZ Property. Property eligible to enter into an UAIZ.Contract shall consist of the following: 1. The property must be vacant or unimproved. The property may not contain any habitable dwellings,but may contain only non-habitable structures that are or will be accessory to agricultural uses, such as a toolshed, greenhouse,produce stand, or instructional facility as approved by the City Manager or their designee; and 2. The property is located within a Census-designated urbanized area, as defined in the AB 551, so long as it is not wholly or partially within a National Recreation Area, Significant Ecological Area, or Sensitive Environmental Resource Area; and 3. The property in its entirety shall be available for and dedicated to agricultural uses immediately and for the duration of the contract and which shall be for a term of five(5) years, which may be renewed at the discretion of the City Manager; and Ordinance Page 4 4. The property shall be a minimum of one-tenth(0.10) of an acrd and a maximum of three (3) acres; and 5. Secured property tax obligations shall be current and paid according to installments determined by State law. 6. .All structures are subject to the provisions in CVMC 19.58.020. 19.100.060 Agricultural Uses A. Agricultural Use Defined. Subject to paragraph B (below), agricultural use(s) shall mean farming in all its branches including, but not limited to the cultivation and tillage of soil,the production, cultivation, growing, and harvesting of any agricultural or horticultural products, the raising of livestock, bees, fur-bearing animals, dairy-producing animals,poultry, agricultural education, the sale of produce through field retail stands or farm stands as defined by Article 5 (commencing with Section 47030) of Chapter 10.5 of Division 17 of the Food and Agriculture Code, and any practices performed by a farmer or on farm as incidental to or in conjunction with farm operations. The term "agricultural use" does not include timber production. The production, cultivation, growing, and harvesting of marijuana shall be prohibited in the UAIZ. B. Zoning and Municipal Code limitations on Agricultural Use(s)/UAIZ. 1. Neither the creation of the Urban Agricultural Incentive Zone nor the execution of any UAIZ Contract shall in any way expand the allowable uses of any property under the City's existing land use zoning regulations or ordinances. Eligible land uses under the UAIZ Program may include any agricultural land uses that are permitted or conditionally permitted, but are subject to limitations set forth in this chapter, by AB 551, by the Chula Vista Municipal Code, including, but not limited to, Title 6 [Animals] and Chapter 19.20 [Agricultural Zone], or by the terms and conditions set forth in the UAIZ Contract. Conditional Use Permits may be required by the City Manager. 2. Chula Vista Municipal Code section 19.16.030 provides that lot sizes may not be less than one acre for crop and tree farming, as defined in Chapter 19.16. Notwithstanding the aforementioned one acre limitation, a lot size may be less than one(1) acre, but not less than one-tenth(.10) of an acre, when a UAIZ Contract is entered into pursuant to section 19.100.040 of this chapter. 19.100.070 County Assessor. Pursuant to the Urban Agricultural Incentive Zones Act,upon recordation of a UAIZ Contract, the County Assessor is required to value the restricted property at the lowest of three values: the value based on the average per-acre value of irrigated cropland in California as reported by the National Agricultural Statistics Service of the United States Department of Agriculture, the current fair market value, or the factored base year value (Proposition 13 value). 19.100.080 Agricultural Use Commencement and Continuation For Duration of UAIZ Contract. Agricultural use must commence on the property within sixty(60) days after the recordation of the UAIZ Contract. Pursuant to the Urban Agricultural Incentive Zones Act, the entirety of the property subject to a UAIZ Contract shall be dedicated to agricultural uses and such agricultural uses shall continue for the duration of the UAIZ Contract. Ordinance Page 5 19.100.090 Pesticides and Fertilizers-Restrictions. Pursuant to the Urban Agricultural Incentive Zones Act, only pesticides or fertilizers sanctioned by the U.S. Department of Agriculture's National Organic Program may be used on the property that is subject to the UAIZ Contract. 19.100.100 Annual Inspection for Conformance. The City Manager may conduct a site inspection to verify the property owner's conformance to the terms of the UAIZ Contract, including, but not limited to an initial inspection within ninety (90) days of the execution of a UAIZ Contract, every year after the execution of the UAIZ Contract, or as otherwise determined necessary by the City Manager. 19.100.110 Cancellation of an UAIZ Contract with the City. A. Circumstances to Cancel UAIZ Contract. Circumstances for cancelling,a UAIZ Contract with the City shall include the following: 1. City-Initiated Cancellation for Noncompliance. If the City Manager finds that the property does not conform to the terms of the UAIZ Contract or the property owner does not permit a site inspection as set forth in section 19.100.100, the City Manager shall provide notice to the property owner of said non-compliance and a date by which to bring the property into compliance with the UAIZ Contract or to permit an inspection pursuant to section 19.100.100. Should the property owner fail to comply with the corrective actions required by the City Manager within a time period set forth by City Manager, then notice of cancellation shall be provided to the property owner,personally or by mail, that the UAIZ Contract will be cancelled fifteen(15) calendar days after personal service or mailing of the notice. At the end of the fifteen(15) days, if the property owner has not brought the property into compliance with the terms of the UAIZ Contact or permitted an inspection pursuant to section 19.100.100, the City Manager shall execute a cancellation document and record it with the Registrar-Recorder/County Clerk and notify the County Assessor. 2. Property Owner-Initiated Cancellation. If the property owner submits a request to the City Manager to cancel a recorded UAIZ Contract, the City Manager will execute a cancellation document with the property owner, which the City Manager will record with the Registrar-Recorder/County Clerk and notify the County Assessor. B. Effect of Cancellation—Fee and Tax Rate. Pursuant to Government Code section 51042(a)(2)(B), the City shall impose a fee equal to the cumulative value of the tax benefit received during the duration of the UAIZ Contract upon the property owner for cancellation of any UAIZ Contract prior to the expiration of that contract, unless the City Council makes a determination that the cancellation was caused by extenuating circumstances despite the good faith effort by the property owner. The property also shall be re-assessed to its previous non-agricultural tax rate by the County Assessor following recordation of the cancellation document. 19.100.120 Fees. A property owner may be subject to a fee payable to the City for the implementation, administration, and monitoring of the UAIZ Contract and its terms. Said fees shall be promulgated in accordance to the City's Master Fee Schedule processes. Ordinance Page 6 19.100.130 Implementation Date. The Urban Agriculture Incentive Zone Program shall not be effective until the County of San Diego has approved the City of Chula Vista participation the UAIZ Program as required by AB 551. 19.100.140 Limitation on entry of UAIZ Contracts. Unless extended by State law, no UAIZ Contract for property within the City's UAIZ shall be renewed or created after January 1, 2029. However, any UAIZ Contract entered into pursuant to this Chapter on or before January 1,2029, to the extent allowed by law, shall be valid and enforceable for the duration of the UAIZ Contract. 19.100.150 Additional Requirements. A property owner who enters into a UAIZ Contract and the property subject to a UAIZ Contract are subject to additional regulations as determined by the Chula Vista Municipal Code,by the County of San Diego, or by the State Legislature. Section II. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional,by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity,unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section III. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section IV. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as to form by Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services City Attorney a a a a SYSTEM July 3, 2018 a City of Chula Vista City Council a 276 Fourth Avenue a Chula Vista, CA 91910 a a o City of Chula Vista Urban Agriculture Incentive Zones—Support a a ADDRESS Dear Chula Vista City Councilmembers, a 1475 Caminito 20o The San Diego Food System Alliance is a nonprofit coalition of 40 Voting La Jolla, CAA 992037 37 9 Members and 100 groups in network consisting of nonprofits, businesses, n and community members. We are committed to developing and CONTACT o maintaining an equitable, healthy, and sustainable food system in San Elly Brown Diego County. Our efforts are currently focused on the local adoption of Alliance Director o AB551: Urban Agriculture Incentive Zones Act, which we believe supports elly@sdfsa.org u the community's ability to thrive in an improved food system focused on the T:919-328-0046 a environment, economy, equity, and education. AB551 is a California bill a passed in 2014 which aims to increase land access for urban agriculture sdfsa.org a through the use of vacant, privately-owned land. a 0 Fiscally sponsored by a The San Diego Food System Alliance recently co-sponsored AB465, the Leah's Pantry u 10 year extension of Urban Agriculture Incentive Zones, in partnership with Tax ID: 20-5512442 SPUR, PANNA, and Sacramento Urban Ag Alliance. The law was passed u by the Governor this September. We are thrilled that the State of California u recognizes the value of a policy to encourage urban agriculture in our u communities. 0 0 o We urge the City Council_to_support_City_of_Chula_Vista_to_follow in the o footsteps of other cities including San Francisco, Sacramento, and now uSan Diego by establishing an Urban Agriculture Incentive Zone. a 5 Urban agriculture provides numerous benefits not only to those growing a food, but also to the counties, cities, and neighborhoods in which it °s happens. City gardening and farming offers public benefits such as vibrant u green spaces and recreation, education about fresh food and the effort it a takes to produce it, ecological benefits for the city, sites that help build 0 o community, and a source of local economic development (UC ANR, 2013). 0 a a The San Diego Food System Alliance is ready to help you implement this 0 u request in any way we can and member organizations are available to help u local communities realize as many of the enumerated benefits as possible. 0 0 u Sincerely, 0 0 a 8 a 0 0 u Elly Brown u Alliance Director u San Diego Food System Alliance 0 a 8 a a 0 a 0 8 a a a 0 UNIVERSITY OF CALIFORNIA, SAN DIEGO � UCSD P"1" ��--, BERKELEY•DAVIS•IRVINE•LOS ANGELES•MERCED•RIVERSIDE•SAN DIEGO•SAN FRANCISCO w_ :::+ a SANTA BARBARA•S.4N'rA CRUZ X860' DEPARTMENT OF ANTHROPOLOGY 9500 GILMAN DRIVE#0532 TEL:(858)534-4145 LA JOLLA,CALIFORNIA 92093-0532 FAX:(858)534-5946 July 6,2018 City of Chula Vista City Council 276 Fourth Avenue Chula Vista,CA 91910 Re: City of Chula Vista Urban Agriculture Incentive Zones - Support Dear Chula Vista City Councilmembers, I am a Ph.D. researcher at the University of California, San Diego in the Department of Anthropology and the UC San Diego Global Food Initiative Student Ambassador working under the direction of Dr. Keith Pezzoli, Director of the UC San Diego Bioregional Center for Sustainability Science, Planning and Design. My research deals with the social, political, and economic dimensions of urban agriculture in the San Diego-Tijuana metropolitan region. The UC San Diego Bioregional Center supports urban agriculture as a way to define new means for co-producing food, science literacy, and food security at a neighborhood scale. Furthermore, the University of California Global Food Initiative dedicates part of its efforts toward analyzing and evaluating urban agriculture in low-income and underserved neighborhoods to examine its potential to reduce food disparities,and increase food security. Because of our dedication to understanding and encouraging the positive impact that urban agriculture can have, we are also part of the San Diego Food System Alliance Urban Agriculture Working Group. The Working Group is focused on promoting the local adoption of AB551: Urban Agriculture Incentive Zones Act, which we believe supports the community's ability to thrive in an improved food system focused on the environment, economy,. equity, and education. AB551 is a California bill passed in 2014 that aims to increase land access for urban agriculture through the use of vacant,privately-owned land. We urge the City Council to support the City of Chula Vista to follow in the footsteps of other cities including San Francisco, Sacramento, and now San Diego by establishing an Urban Agriculture Incentive Zone. Urban agriculture provides numerous benefits not only to those growing food, but also to the counties, cities, and neighborhoods in which it happens. City gardening and farming offers public benefits such as vibrant green spaces and recreation, education about fresh food and the effort it takes to produce it, ecological benefits for the city, sites that help build community, and a source of local economic development(UC ANR, 2013). We intend to work within San Diego Food System Alliance's Urban Agriculture Working Group to help you implement this request in any way we can. The Working Group member organizations are available to help local communities realize as many of the enumerated benefits as possible. Sincerely, Belinda Ramirez PTLD. Candidate UC San Diego Department of Anthropology UC San Diego Bioregional Center for Sustainability Science,Planning and Design UC Global Food Initiative BAYSIDE 1932-2018 Community Center Cefekating 86 years of service July 3,-2018 City of Chula Vista City Council 276 Fourth Avenue Chula Vista, CA 919.10 City of Chula Vista Urban Agriculture Incentive Zones - Support Dear Chula Vista City Councilmembers, Bayside Community Center is"an 86-.year-old nonprofit located in Linda Vista. Our mission is to empower our diverse community to improve its quality of life through services, education, and advocacy. Bayside is also:home to the.Linda Vista'Community Garden. One of Bayside's focus. areas is food security, which is a challenge in a low-income neighborhood like Linda Vista—a USDA-identified food desert. Bayside works to increase access to fresh, healthy, and affordable food for its resident. Bayside also co-chairs the San Diego Food System Alliance Urban Agriculture Working Group. The Working Group is focused on'promoting the local adoption of AB551: Urban Agriculture Incentive Zones Act, which we believe-supports the community's ability to thrive in an.improved food system focused on the environment, economy, equity,'and education. AB551 is a California bill passed in 2014 which aims to increase land access for urban agriculture through the use of vacant,.privately-owned.land. We urge the City Council to support City of Chula Vista to follow in the footsteps of other cities including San Francisco, Sacramento,and now San Diego by establishing an Urban Agriculture Incentive Zone. Urban agriculture provides numerous benefits not.only to those growing food, but also.to the counties, cities, and,neighborhoods in which it happens. City gardening and farming offers public benefits such as vibrant green spaces and recreation, education about fresh food and the effort it takes to produce it, ecological benefits for the city,.sites that help build community, and a source of local "economic development(UC ANR, 2013). Our organization intends to work within San Diego Food System Alliance's Urban Agriculture Working_Group to help you implement this'request in any way we can.The Working Group member organizations.are available to help local communities realize.as many of the enumerated benefits'as possible. fiinhPrely. i! '7 Kim fe, Community Advocate Coordinator BaysiderCommunity Center kheinle a,baysidecc,gEg Bayside Community Center 16682 Linda Vista Rd.,San Diego, CA 92111 Phone:(858)278-0771 Fax: (858)278-6193 1 www.baysidecc.org Vii►:, Resource Conservation District of Greater San Diego County 11769 Waterhill Rd., Lakeside, CA 92040 Phone: (619) 562-0096 ` Fax: (619) 562-4799 Website: www.rcdsandiego.org City of Chula Vista City Council 276 Fourth Avenue Chula Vista, CA 91910 July 3, 2018 City of Chula Vista Urban Agriculture Incentive Zones-Support Dear Chula Vista City Councilmembers, .I am writing from the Resource Conservation District of Greater San Diego County. We work across the county to protect, conserve, and restore natural resources through information, education, and technical assistance. Our programs include managing the largest community garden in San Diego County and supporting farmers and growers to adopt land management practices that build soil health. We support urban agriculture and believe it can make food growing and healthy produce more accessible to more local residents, as well as turn vacant lots into attractive and productive spaces. We are part of the San Diego Food System Alliance Urban Agriculture Working Group.The Working Group is focused on promoting the local adoption of AB551: Urban Agriculture Incentive Zones Act, which we believe supports the community's ability to thrive in an improved food system focused on the environment,economy, equity, and education.AB551 is a California bill passed in 2014 which aims to increase land access for urban agriculture through the use of vacant, privately-owned land. We urge the City Council to support City of Chula Vista to follow in the footsteps of other cities including San Francisco,Sacramento, and now San Diego-by establishing an Urban Agriculture Incentive Zone. Urban agriculture provides numerous benefits not only to those growing food, but also to the counties, cities, and neighborhoods.in which it happens. City gardening and farming offers public benefits such as vibrant green spaces and recreation, education about fresh food and the effort it takes to produce it, ecological benefits for the city, sites that help build community, and a source of local economic development(UC ANR, 2013). Our organization intends to work within San Diego Food System Alliance's Urban Agriculture Working Group to help you implement this request in any way we can.The Working Group member organizations are available to help local communities realize as many of the enumerated benefits as possible. Sincerely, Sheryl Landrum Executive Director, Resource Conservation District of Greater San Diego County Conserving Our Natural Resources _ - CITY COUNCIL AGENDA STATEMENT CITY OF p `CHULA VISTA July 17,2018 File ID:x-0202 18-0321 TITLE A. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING AMENDMENTS TO THE EASTERN- URBAN CENTER PLANNED COMMUNITY DISTRICT REGULATIONS AND DESIGN PLAN (FORM BASED CODE) FOR 207 ACRES OF LAND IN THE EASTERN URBAN CENTER PORTION OF THE OTAY RANCH RELATING TO MODIFICATIONS IN THE OVERALL BUILDOUT INTENSITY, BUILDING HEIGHTS AND DISTRICT 6 REGULATIONS (FIRST READING) B. RESOLUTION OF THE CITY OF CHULA VISTA CITY COUNCIL CONSIDERING THE MODIFICATIONS TO THE SUPPLEMENTAL PUBLIC FACILITIES FINANCE PLAN (PFFP) AND FISCAL IMPACT ANALYSIS (FIA) AND APPROVING AMENDMENTS TO THE EASTERN URBAN CENTER SECTIONAL PLANNING AREA (SPA) PLAN AND ASSOCIATED REGULATORY DOCUMENTS RELATING TO MODIFICATIONS IN THE OVERALL BUILDOUT INTENSITY, BUILDING HEIGHTS AND DISTRICT 6 REGULATIONS C. RESOLUTION OF THE CITY OF CHULA VISTA CITY COUNCIL CONSIDERING THE ADDENDUM TO EIR 07-01 AND APPROVING AMENDMENTS TO THE EASTERN URBAN CENTER SECTIONAL PLANNING AREA (SPA) PLAN AND ASSOCIATED REGULATORY DOCUMENTS RELATING TO MODIFICATIONS IN THE OVERALL BUILDOUT INTENSITY, BUILDING HEIGHTS AND DISTRICT 6 REGULATIONS D. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE DEVELOPER AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND SLF IV - MILLENIA, LLC RECOMMENDED ACTION Council conduct the public hearing,adopt the resolutions and place the ordinances on first reading. SUMMARY SLF IV-Millenia LLC ("Applicant" or"Developer") is requesting to amend the adopted Eastern Urban Center ("Millenia") Sectional Planning Area Plan ("SPA") and Form Based Code to reflect: 1) a proposed reduction in the ultimate buildout and changes to the low intensities for the project, as well as modify the intensity transfer language between Districts; 2) revise the Main Street District regulations to update the amount and geographic distribution of commercial uses in the-district; and 3) modify design standards for height, setbacks and height blending. The project also includes a Supplemental Public Facilities Financing Plan (PFFP), updated Fiscal Impact Analysis (FIA) and First Amendment to the Developer Agreement to reflect the proposed amendments. An EIR Addendum with additional information and analysis of the proposed amendments will also be considered. On May 24, 2017,the applicant filed applications to process all of the subject items. Page 1 ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project was adequately covered in previously adopted Final Environmental Impact Report for the Eastern Urban Center(Millenia) Sectional Planning Area (SPA) Plan (FEIR 07-01) (SCH#2007041074). The Development Services Director has determined that only minor technical changes or additions to this document are necessary and that none of the conditions described in Section 15162 of the State CEQA Guidelines calling for the preparation of a subsequent document have occurred; therefore, the Development Service Director has prepared an Addendum to FEIR 07-01. BOARD/COMMISSION/COMMITTEE RECOMMENDATION On June 13, 2018, the Planning Commission took action and voted 4-0 that the Council adopt the resolutions and the ordinances. DISCUSSION Background The Millenia project("Project") is located at the southwest corner of Birch Road and Eastlake Parkway,east of the SR 125 toll road (see Locator Map,Attachment 1). The Project was originally adopted on October 6, 2009 by Resolution No. 2009-224 and by Ordinance No. 3142 with subsequent amendments in 2013 and two in 2016. The project site is 206-acres in area and has been fully graded. Millenia is described as an urban mixed-use center with a maximum buildout of 2,983 multi-family residential units and 3,487 million square feet of commercial uses including office, hospitality, retail and civic uses. More than four miles of new streets have been installed to date, with the final phase of infrastructure development slated to start construction in the fall of this year. Approximately 70% of the 145 acres of private development land has either been sold to merchant builders or is under contract with builders. The land sales to date include every land use contemplated for Millenia including office, retail, hotel,and residential: rental, for-sale and affordable housing projects. Two projects have been completed and fully occupied including the 273-unit Pulse Millenia Apartments and the 210-unit Chelsea Investments Duetta family and Volta senior affordable apartments. Eight additional projects are currently under construction including: • Ayres Hotel -a 135-room four story hotel.Scheduled to open by the end of 2018. • The Sudberry Properties Millenia Commons Retail Center- a 130,000 square foot retail center with major tenants including Buy-Buy Baby, Ross, Home Goods and Cost Plus. Scheduled opening late 2018. • Trammel Crow Residential Alexan Apartments- a 309-unit mixed use rental project with 10,000 square feet of commercial and live work units.First occupancy scheduled for June 2018. • Trammel Crow Residential Esplanade Apartments -a 253-unit rental community scheduled to open in mid-2019. • Metro, Evo and Trio by Meridian Communities - a 217-unit condominium project. As of May 2018, the project has sold more than 130 homes. • Element and Z by Shea Homes -a two product community comprised of 106 three story townhomes and 70 detached urban homes.As of May 2018,more than 100 of the homes had been sold. • Skylar by KB Homes - a 79-unit project of detached urban homes.As of May 2018, 14 of the homes had been sold. • Boulevard by Lennar - a 78-unit townhome project. As of May 2018, building permits had been pulled for approximately 30-units and first occupancies are anticipated in October of this year. Page 12 In addition, Chesnut Properties is in City building plan check for the first of three office campus projects which includes 324,100 square feet of class A office,an amenity building and a five-story parking structure. Meridian Communities has also submitted a Design Review application for Pinnacle, a proposed four-story for-sale project. Millenia also includes six parks, a fire station, a pedestrian bridge over Eastlake Parkway;and a site for a future elementary school. One of the parks has been completed and is open for public use, and three more are under design and expected to start construction within the next 9-12 months. The fire station is under design and expected to be completed in early 2020, and the pedestrian bridge is under design with construction slated to begin later this year. The school site has been graded but timing for the school's construction has not yet been identified by the District. The project also incorporates a segment of the San Diego Association of Governments ("SANDAG") Bus Rapid Transit line. The construction of the first two segments of the guideway in the Millenia project have been advanced by the applicant and will be complete in the summer of this year. SANDAG has agreed to implement service to Millenia starting in 2019. Necessity of Amendments Millenia was intended to build out over a period of decades, with the project intensifying over time in response to market demand and opportunities. The plan discusses this phased intensification over time which would occur when surface parking lots were converted to structured parking and taller buildings or via redevelopment or tear downs and replacements with more intensive land uses. While intended to build out and intensify over an extended timeframe, as discussed above,more than 70% of the private development land in Millenia is already contracted with merchant builders. The developer indicates that in order to keep the overall project viable in the current marketplace amendments are necessary at this time. City staff concurred that due to the pace development is occurring additional amendments to the regulatory documents are critical at this point. Staff has been working closely with the applicant to ensure the proposed amendments not only provide the flexibility to move the project forward at this time,but to ensure both the original vision of the project is maintained and future opportunities are not lost due to the initial build out of the project. Compliance with Council Policy No.400-02 (Public Participation) The Applicant conducted a public workshop to present the proposed amendments on April 5, 2018 at the Otay Ranch Library's HUB. The meeting was noticed in the paper and mailed to residents and Home Owner Associations in compliance with Council Policy No.400-02. Proposed Amendments&Analysis The proposed amendments to the Millenia SPA Plan ("SPA"), and Form Based Code can be summarized in three main topic areas. 1. Land Use Intensities - Amend the SPA and Form Based Code to establish new maximum and low land use intensities of 2,983/1,236 residential units and 3.324M/1.568M square feet of commercial uses. 2. Main Street District (6) - Revisions to reduce the amount of residential and commercial land uses, and modify the geographic distribution of those commercial uses in the district. 3. Design Standard Modifications - Revise the Minimum Average Height on six lots from five stories to four stories and modify the minimum height in feet for residential buildings. The amendment also introduces a concept of"height blending" for four lots and establishes deviations for setbacks. Applicable text, tables and exhibits to reflect these changes have been submitted in the proposed amendment, (see EUC SPA Amendment,Attachment 2),and an analysis is provided below. 1. Land Use Intensities The existing SPA identifies a low,target and high land use intensity for each district,as depicted in the table below. The low represents the minimum to be built in that district and the target is the maximum,with all Districts totaling to a target not to exceed for the entire development of 3.487M square feet of non- residential and 2,983 units of residential. The high column represents a maximum intensity if transfers occurred between districts, in other words,the developer could increase above the target administratively as long as they reduced an equal amount from another district. If the developer ever proposed to increase above the high amounts in a district the zoning administrator would need to make findings for that approval per Section 04.05.003. Adopted Non-Residential(1,000SF) Residential DUs District Description Acreage Low Target High Low Target High 1 Gateway Mixed Use Commercial District 22.7 100 400 700 - 50 100 2 Northwestern Neighborhood District 13.2 2 120 200 150 300 500 3 Northeastern Neighborhood District 17.2 10 50 250 150 400 750 4 Business District 25.4 505 1,532 1,900 - 100 150 5 Mixed Use Civic/Office Core District 23.3 100 900 1,000 - 200 300 6 Main Street District 34.7 80 240 400 100 533 800 7 Eastern Gateway District 9.6 - - - 50 200 300 8 Southwestern Neighborhood District 12.5 2 50 200 300 500 700 9 Central Southern Neighborhood District 24.4 45 100 130 500 650 10 Southeastern Neighborhood District 23.6 - 150 200 200 200 450 Total 1 206.6 11 799 3,487 1 1,080 2,983 Initial and Full Build The proposed amendment eliminates a set target and allows the applicant to work within the low and high ranges as depicted in the table below. The low column representation the initial or minimum build out of the project and the high column represents the previous target numbers or maximum full build. Changes to both low and highs within Districts have also been made to account for what has been built to date and what is anticipated. Page 14 Pro ee • Lind Use Intensities Non-Residential(1,000 SF) Residential DUs District Description Acreage Low Target High Low Target High — I Gateway Mixed Use Commercial District 22.7 227 400 - 89 2 Northwestern Neighborhood District 13.2 2 2 273 273 3 Northeastern Neighborhood District 17.2 2 5 150 475 4 Business District* 25.4 800 1,900 - 225 5 Mixed Use Civic/Office Core District 23.3 455 900 - 300 6 Main Street District 34.7 80 100 100 601 7 Eastern Gateway District 9.6 - - 100 117 8 Southwestern Neighborhood District 12.5 2 2 253 253 9 Central Southern Neighborhood District 24.4 5 130 350 10 Southeastern Neighborhood District 23.6 10 230 300 Total 206.6 1,568 3,324 1 1,236 - 2,983 As seen in the tables above,the proposed residential intensities are unchanged in the high column and have increased by 156 units in the low. The non-residential intensity"is reduced by 163,000 in the high and increased 769,000 _in the low. The applicant suggests that market conditions, other development entitlements approved by the City in Otay Ranch,and changes in the nature of office and retail development necessitate the reduction of the high non-residential. The proposal doesn't modify any of the boundaries of any of the land use districts, or reduce the acreage of land available for employment uses.A discussion of the job generation of the proposed amendment is included in the discussion of the Developer Agreement. Land Use Intensity Transfers Since the ability for the developer to increase above the target through transfers up to the high has been removed in the proposed amendment, new language is proposed in Section 04.05.003 on page IV-12, to retain flexibility between districts, allowing an increase up to 10% to occur administratively over the high intensity as long as an equal amount is transferred or deducted from another District with the ultimate maximum build being maintained. Any proposal more than 10% would require the same Zoning Administrator findings. In addition,an exception for District 4 is proposed to build at 500,000 square feet instead of the designated 800,000 in the revised intensity table, providing that an ultimate block plan is submitted at time of project processing,showing that the additional 300,000 can be provided in the future. This provides flexibility for the Millenia Office space to evolve over time and meet market demands. 2. Main Street District(6) The Main Street District is the mixed-use heart of the Millenia plan. The current plan envisions an activated and vibrant mixed-use environment with ground floor commercial uses and residential or office uses above. Horizontal mixed use is also permitted. The terminus of the MainStreet District is Metro Park, a 2.28-acre privately owned and maintained (but publicly accessible) park. The land uses currently in the plan for the Main Street District is a target of 240,000 square feet of commercial uses,with a low of 80,000 square feet and a high end of 400,000 square feet. The Applicant indicates that the current retail market is not expected to be able to absorb the amount of retail which is currently required for this district in the timeframe in which the Applicant expects the Main Street to develop, and is therefore proposing to modify the amount and distribution of commercial uses in the Main Street District. The table below provides a comparison of the existing and proposed land use intensities for District 6. Page 15 Main Street District Land Use Changes Residential Non-Residential (Units) (thousands of square feet) Low Target High Low Target High Existing SPA 100 533 800 80 240 400 Proposed Amendment 100 N/A 601 80 N/A 100 Difference 0 N/A -199 0 N/A 1 -300 In order to ensure that the Main Street area remains flexible to evolve staff and the applicant agreed upon updates to Section 2.04.003 to require that the ground floor be built to accommodate commercial uses in the future through specific thresholds and buildings standards for live work units and commercial space. In addition, interim uses are allowed in this space to provide flexibility at initial build. While the low will remain the same as the existing plan, the high would be reduced for both residential and non-residential. Staff feels the development standard changes will retain the pedestrian oriented vibrancy intended for this District. 3. Design Standard Modifications Building Heights The FBC regulates building heights based on the concepts of minimum, maximum and average heights. It further identifies the minimum height by either allowable stories or feet. The plan is divided into a series of building height districts,each of which prescribe a minimum average building height which must be met on the lots within the district. As an example, within a five-story building height district, it would be possible to build four story buildings as long as five or six story buildings were also constructed,such that the average building height within the height district averaged out to five stories. Two amendments are requested to the Regulating Plan in the FBC (reference Attachment 2 - Exhibit III-49 on page III-69),as follows: 1. Reduction in Average Height for Six Lots: The Applicant is proposing to modify the Regulating Plan, to reduce the minimum average stories from five to four stories on six lots (SPA Plan Lots 10, 13, 19, 22-24). This change would affect approximately 7% of the acreage in the overall project,as follows: • Lot 10 -existing five story affordable housing development(Duetta and Volta); • Lot 13 -undeveloped; • Lots 19 and 22 - owned by Applicant and currently being processed as a four-story product ("Pinnacle"); and • Lots 23 and 24-owned by Applicant and undeveloped. The Applicant indicates that a five-story residential product is not viable in the current market. If the proposed amendment is not approved and Lots 19 and 22 are developed with the current proposed project Pinnacle, Lots 23 and 24 would be obligated to be built at a minimum of six stories to meet the average height requirements in the approved FBC. The Applicant has provided representative imagery in the SPA Amendment for the four-story product to demonstrate that the reduction in Minimum Average Height from five to four-stories Page 16 will still provide both a compatible massing with adjacent existing and proposed development and a pedestrian-oriented experience. 2. Modifications to Residential Minimum Building Height: As the height requirements can be met via either the number of stories or the building heights in feet, the Applicant is also proposing to differentiate between residential and non-residential heights and modify the approved minimum building height for residential. The proposed minimum heights and difference between the existing and proposed building height requirement table are shown below and on Exhibit 111-49 (page III-69) of the proposed FBC amendments and summarized in the table below. MinirurnBui • • Residential Non-Residential Heigth in Feet Heigth in Feet Proposed Proposed Stories Approved SPA Amendment Approved SPA Amendment 1 25 25 25 25 2 35 30 25 35 3 40 35 40 40 4 Not identified 45 Not identified 50 5 70 55 70 70 All future buildings will still be required to comply with the Building Typologies and the Architectural Design Guidelines of the Millenia plan. Further, the proposed reduction in Minimum Average Height will not compromise the ability of future development in this height district to continue to comply with the applicable principles and concepts. Height Blending Four lots sit south of Metro Park and are adjacent to the Regional Trail. The lots cross two regulatory districts (6 and 9) in the SPA. The concept of height blending has been introduced in the proposed amendment on page III-68 of the FBC in order to allow the combination of 3- and 4-story heights across land in the two districts if one comprehensive project is proposed. Building Setbacks A deviation from setbacks has been added on page III-77 of the FBC to allow properties that may have slope or grade differences, as well as unique operational characteristics. An example of the need for this setback deviations is the proposed Fire Station to be located at the corner of Millenia Avenue and Stylus Street. Associated Regulatory Documents Public Facilities Finance Plan(PFFP) A PFFP has been prepared as a supplemental document to the original PFFP dated October 6, 2009 (see Public Facilities Finance Plan,Attachment 3). The Supplemental PFFP analyzes the changes to the ultimate buildout land use intensities, any potential impacts on public facilities and services, and identifies the facilities, phasing and timing triggers for the provision of facilities and services to serve the project,. consistent with the City's Quality of Life Threshold Standards. The analysis concludes that the proposed reduction in buildout land use intensities would not negatively impact any of the applicable thresholds or standards. It should be noted that the Supplemental PFFP is relatively simple as the Applicant has agreed Page 17 to comply with all prior conditions of the Millenia plan, including all required EIR mitigation measures, despite the proposed reduction in buildout intensities in the plan. As previously described, development of Millenia is underway,and much of the "backbone" infrastructure has been installed per the original PFFP. As a result,the mitigation measures identified in the PFFP remain unchanged from the original project proposal (no reduction in mitigation measures as a result of the potential reduced buildout). Consistent with the original PFFP, the Developer entered into an agreement entitled"Agreement Regarding Construction of Parks in a Portion of the Otay Ranch Eastern Urban Center", as part of the original entitlements (the "Parks Agreement"). The Parks Agreement was subsequently amended twice, once in 2015 and once in 2016. The current Parks Agreement provides for park facilities assuming a build-out of 2,983 residential units (but contemplates the possibility of 2,550 units). No amendment to the Parks Agreement is proposed at this time. Should the Master Developer construct fewer than 2,550 residential units,further amendment of the Parks Agreement may be requested. Fiscal Impact Analysis(FIA) The Applicant's proposal includes--a revised Fiscal Impact Analysis (FIA) evaluating the proposed amendment (see Fiscal Impact Analysis, Attachment 4). This FIA has been prepared using the City's new fiscal model which was first provided to the Applicant in October of last year. Staff worked with the Applicant who provided the necessary project-specific inputs to the plan needed to calculate the City's maintenance costs. It is important to note that the FIA presents a projection of the anticipated fiscal impacts of the development, based upon the best information currently available. Actual fiscal impacts as a resultof development may vary from model outcomes. The FIA evaluates the following scenarios: 1. Proposed Amendment Maximum Buildout - This scenario assumes development of the proposed maximum buildout, including 2,550 residential units and 3.115 million square feet of non- residential uses. The non-residential uses assumed include approximately 2.55 million square feet of office, 388,000 square feet of retail uses, 130,000 square feet of civic uses (school and fire station),and a single 135-room hotel. 2. 2009 Adopted Plan Maximum Buildout (assumes 500 hotel rooms) - This scenario assumes development of the adopted maximum building, including 2,983 residential units and 3.487 million square feet of non-residential uses. The non-residential uses assumed in the 2009 plan include approximately 2.0 million square feet of office, approximately 800,000 square feet of retail uses, 160,000 square feet of civic uses,and two hotels totaling 500 rooms. 3. 2009 Adopted Plan with reduced Hotel (assumes 135 hotel rooms) - In recognition of the fact that since the original Millenia entitlements were approved the City has approved three hotels in addition to the one approved in Millenia - this scenario looks at the 2009 full build scenario but includes only the 135-room hotel currently under construction (reduction of 365 hotel rooms). Based on the FIA and the assumptions contained therein, all of the scenarios above are projected to generate a positive net fiscal impact to the City by year two (2019/2020). The relative fiscal performance of the three scenarios over a 30-year buildout term are compared in the table below. Page 8 1 1 1 1 11 1 1 1 1 1 Year 5 Year 10 Year 15 Year 20 Year 25 Year 30 Proposed Revenues $ 4.7 $ 7.7 $ 8.7 $ 9.8 $ 11.3 $ 13.1 Amendment Expenses $ (3.2) $ (6.3) $ (7.1) $ (7.3) $ (7.4) $ (7.6) (135 Hotel Rooms) Net Impact $ 1.5 $ 1.4 $ 1.5 $ 2.6 $ 3.8 $ 5.5 2009 Adopted Plan Revenues $ 2.4 $ 6.0 $ 9.9 $ 12.0 $ 13.8 $ 15.4 (135 Hotel Rooms) Expenses $ (2.1) $ (4.8) $ (7.2) $ (7.4) $ (7.6) $ (7.7) Net Impact $ 0.3 $ 1.1 $ 2:7 $ 4.6 $ 6.2 $ 7.7 2009 Adopted Plan Revenues $ 2.4 $ 7.6 $ 11.7 $ 14.0 $ 15.9 $ 17.7 (500 Hotel Rooms) Expenses $ (2.0) $ (4.8) $ (7.2) $ (7.4) $ (7.6) $ (7.7) Net Impact $ 0.3 $ 2.8 $ 4.5 $ 6.5 $ 8.3 $ 10.0 The Proposed Amendment(135 Hotel Room) scenario assumes development phasing as summarized in the table below. . . . . . Year 5 Year 10 Year 15 Year 20 Year 25 Year 30 Residential Units 1,596 2,983 2,983 2,983 2,983 2,983 Hotel Rooms 135 135 135 135 135 135 Retail&Hotel SF 325,388 388,846 388,846 388,846 388,846 388,846 Office SF 688,500 1,581,000 1,657,500 1,810,500 2,040,000 2,550,000 Total Non-Residential SF 1 1,013,8881 1,969,8461 2,046,3461 2,199,3461 2,428,8461 2,938,846 *Note:Civic uses are assumed to have no net fiscal impact and are therefore excluded. The Proposed Amendment phasing assumptions can be compared with the assumptions in the 2009 Adopted Plan fiscal analysis,summarized in the table below. 009PW'Devellopment Phasing Assump ions, Year 5 Year 7 Year 12 Year 17 Year 22 Residential Units 1,245 1,743 2,983 2,983 2,983 Hotel Rooms 250 500 500 500 500 Hotel SF 187,500 375,000 375,000 375,000 375,000 Retail SF 73,850 221,550 738,500 883,400 980,000 Office SF 1 88,6501 265,9501 886,5001 1,552,2001 1,996,000 Total Non-Residential SF 1 350,0001 862,5001 2,000,0001 2,810,6001 3,351,000 Overall, comparing projected net annual fiscal impacts in year 30 for the 2009 Adopted Plan and the Proposed Amendment($10.0 million and$5.5 million, respectively) indicates a$4.5 million reduced annual positive fiscal impact. It is important to note that a key driver reducing the fiscal benefit to the City between the Proposed Amendment scenario and the 2009 Adopted Plan scenario is Transient Occupancy Taxes, and the fact that the City's model attributes very little service costs to hotels. At year 30, approximately$2.3 million of the projected net fiscal benefit associated with the 2009 Adopted Maximum Buildout Scenario is attributable to the 365 additional hotel rooms assumed under that scenario. This is a relevant comparison as it recognizes that the City has not lost the TOT revenues, but rather those revenues Page 19 have been relocated to other locations in the Eastern Territories where hotels have been added since the entitlements for Millenia were approved in 2009. Addendum to FEIR 07-01 Section 21002 of the CEQA requires that an environmental impact report identify the significant effects of a project on the environment and provide measures or alternatives that can mitigate or avoid those significant effects. The Millenia SPA was analyzed in the previously adopted Final Environmental Impact Report for the Eastern Urban Center (Millenia) Sectional Planning Area (SPA) Plan (FEIR 07-01) (SCH #2007041074). Previous Addendums were prepared for two prior SPA Plan Amendments. The First Addendum to the FEIR was approved as part of an amendment to modify building heights and land uses affecting the Genesis project in March of 2013. The second Addendum to the FEIR analyzed the impact of relocating the school site and modify building height boundaries associated with the Millenia Commons retail project. As a result of the analysis of the proposed amendment,the basic conclusions and impacts identified in FEIR 07-01 were determined to not have changed. The land use and public service impacts are found to be less than significant for the current proposed plan amendments and were adequately covered in FEIR 07-01. Therefore, in accordance with Section 15164 of the CEQA Guidelines, the City has prepared the third Addendum to the FEIR(see Environmental Impact Report Addendum,Attachment 5). Developer Agreement A Developer Agreement(DA)was recorded on October 27, 2009 as Document No. 2009-0595116 of Official Records in the Office of the San Diego County Recorder. Because of the material change being proposed by the developer to reduce the total amount of development, an amendment to the original DA, (see First Amendment to the Developer Agreement, Attachment 6), documenting this reduction is required and the two changes to the public benefit documented as follows: 1. Net Revenue-The first benefit identified in the existing DA was annual'net revenue over the cost of providing municipal services of approximately $5.0 million in buildout year 22. As shown above, the updated fiscal impact analysis using a more current fiscal model shows that the original project could have resulted in estimated annual net revenues of$10.0 million in year 30. Applying this new fiscal model to the proposed project amendment, including the reduced non-residential development, the estimated annual net revenue is projected to be approximately $5.5 million in year 30. While this equates to a reduction of$4.5 million annually from the approved plan, it still represents a significant positive fiscal impact to the City's General Fund. 2. Job Generation - The second benefit identified was that the completed project would generate approximately 9,206 jobs with 3.487 million square feet of commercial space. With a reduction of the maximum non-residential development to 3.324 million square feet, the opportunity to maintain over 8,700 jobs is provided by the amendment. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found that no City Council Member has property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not represent a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act(Cal.Gov. Code section 87100 et seq.). Staff is not independently aware,nor has staff been informed by any City Council Member,of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. Page 110 LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community,Strong and Secure Neighborhoods and a Connected Community. The Millenia Project supports the Economic Vitality goal, particularly City Initiative 2.1.3 (Promote and support development of quality master-planned communities). The subsequent SPA Plan amendment implementation documents (the SPA Plan, Master Precise Plan,and TSM) support the development of a high-quality master-planned community (as described above) with a park, jobs, transit, shopping, and other amenities, all within walking distance for residents. The Project implements the Strong and Secure Neighborhoods Strategic goal by providing construction of a development project in a manner that ensures code compliance, public health and safety of the community. CURRENT-YEAR FISCAL IMPACT All costs associated with preparing and processing the SPA Plan amendment and all supporting documents were borne by the developer, resulting in no net fiscal impact to the General Fund or the Development Services Fund. ONGOING FISCAL IMPACT As discussed in the Fiscal Impact Analysis section of this report, the Proposed Amendment is projected to result in net positive fiscal impacts throughout the development period, ranging from $1.5 million to $5.5 million annually. Cumulative impacts of the Proposed Amendment buildout scenario during the term of the 30-year analysis are anticipated to total approximately $69.8 million, with an annual average positive impact of$2.3 million. The table below summarizes the projected annual net fiscal impact for representative buildout years for the Proposed Amendment,the 2009 Adopted Plan as originally approved (assuming 500 hotel rooms),and the 2009 Adopted Plan (assuming only the 135 hotel rooms constructed to date). Year 5 Year 10 Year 15 Year 20 Year 25 Year 30 Proposed Revenues $ 4.7 $ 7.7 $ 8.7 $ 9.8 $ 11.3 $ 13.1 Amendment Expenses $ (3.2) $ (6.3) $ (7.1) $ (7.3) $ (7.4) $ (7.6) 135 Hotel Rooms Net Impact $ 1.5 $ 1.4 $ 1.5 $ 2.6 $ 3.8 $ 5.5 2009 Adopted Plan Revenues $ 2.4 $ 6.0 $ 9.9 $ 12.0 $ 13.8 $ .15.4 (135 Hotel Rooms) Expenses $ (2.1) $ (4.8) $ (7.2) $ (7.4) $ (7.6) $ (7.7) Net Impact $ 0.3 $ 1.1 $ 2.7 $ 4.6 $ 6.2 $ 7.7 2009 Adopted Plan Revenues $ 2.4 $ 7.6 $ 11.7 $ 14.0 . $ 15.9 $ 17.7 (500 Hotel Rooms) Expenses $ (2.0) $ (4.8) $ (7.2) $ (7.4) $ (7.6) $ (7.7) Net Impact $ 0.3 $ 2.8 $ 4.5 $ 6.5 $ 8.3 $ 10.0 As illustrated in the table above, reducing the hotel rooms assumed to be developed by 365 decreases the projected annual positive impact in year 30 by approximately$2.3 million. This accounts for just over 50% of the total projected positive impact reduction in year 30 resulting from the Proposed Amendment Additional adjustments to the development plan further reduce the year 30 projected net positive fiscal benefit from$10.0 million(2009 Adopted Plan with 500 hotel rooms) to$5.5 million. While a comparison of the Proposed Amendment with the 2009 Adopted Plan (with 500 hotel rooms) indicates reduced positive impacts of approximately$4.5 million annually in year 30, the plan continues to indicate significant net positive impacts to the City's General Fund as a result of the Millenia project. Page 11 When considering the above, it is important to note that the Fiscal Impact Analysis presents projections based upon the best information currently available. Actual fiscal impacts as a result of this development may vary from those indicated by the model. Pursuant to Section 4.5 (Operating Deficit) of the Millenia Development Agreement, the Master Developer will cover the City's net operating deficit during the initial years of the project (excluding fire services), up to a cumulative maximum of$500,000. The amount of the deficit is to be determined via a fiscal study to be prepared by the City at the Master Developer's cost. Per the Development Agreement, the first fiscal analysis "shall be conducted following the end of the fiscal year which is two (2) years following the first occupancy within the Property, and annually thereafter at the end of each fiscal year." The first Millenia certificate of occupancy was issued to Fairfield Residential,on October 23, 2015. Based upon this date,the first fiscal analysis shall be conducted after June 30,2018. Initiation of the first fiscal analysis is expected in July of 2018. ATTACHMENTS 1. Locator Map 2. EUC SPA Amendment Project Description and Form Based Code (FBC) 3. Public Facilities Finance Plan (PFFP) 4. Fiscal Impact Analysis (FIA) S. Environmental Impact Report Addendum 6. First Amendment to the Developer Agreement(DA) Staff Contact:Stacey Kurz,Senior Project Coordinator ___ �� Page 12 ATTACHMENT 1 Project Locator Map Millenia / EUC i 1 1 BIRCH RD I z ®® I ly 1, I� to I0 I O 7 9� �F I 3� PROJECT ` LOCATION LOCATOR ` O ` NORTH ``% MPA17-0005 Project Description for the Proposed Amendment to Millenia Sectional Planning Area Plan (SPA) June 28, 2018 Project Sponsor/Applicant: SLF IV—Millenia,LLC Millenia Real Estate Group 9988 Hibert Street,Suite 210 San Diego,CA 92131 Contact:Todd Galarneau (619)794-1205 tgalameau@meridiandevelopment.com Prepared by: Cinti Land Planning 3639 Midway Dr.,#340 San Diego,CA 92110 Contact: Gary P.Cinti (619)223-7408 garyO.cinti.com Millenia Amendment A. Background and Context of Proposed Project The proposed project, Otay Ranch Eastern Urban Center (now known as Millenia) Sectional Planning Area(SPA)Plan, is located within the Otay Ranch Planned Community in eastern Chula Vista. The Otay Ranch General Development Plan (GDP) was initially adopted in 1993 to guide the development of the planned community through incremental SPA plans. The Otay Ranch GDP and the Millenia SPA Plan have been amended several times since adoption in response to changes and experiences in the market. Originally, Millenia was intended to provide the location for high intensity uses, with the other Villages providing neighborhood serving centrally located Village Cores. Since, the original GDP was approved a number high intensity development areas have approved in the Otay Valley portion of Otay Ranch in addition to Millenia. When the plan for the Eastern Urban Center was first adopted, the internet didn't exist, so if you wanted to buy the year's hot toy,the Beanie Baby, you had to go to a store to buy it. You could not use your smart phone to call the store because the Whone did not exist. It is projected that it will take a similar period of time-twenty plus years or more-to fully build-out Millenia. Just as central business districts and cities evolve overtime, so will Millenia. The initial phase is only the first stage of the ultimate development. The intent of this amendment is to update the adopted plan to reflect the initial phases of development and to respond to market changes,while ensuring a degree of flexibility is maintained such that the plan can still respond to future market and lifestyle changes that are difficult or impossible to predict. Project Location e- In the original GDP the Otay Ranch GDP had a series of Villages with a central core that contained neighborhood serving commercial, a park and school and the higher densities. Millenia provided the single area where the highest density residential and regional commercial were located. The Otay Ranch Plan has evolved significantly since its initial adoption in 1993. In fact, since the Millenia plan was adopted in 2009, virtually every remaining village in the Otay Valley portion of the plan,has been fundamentally re-planned and those re-planning efforts continue to this day.The (6/28/2018) Millenia Amendment following Exhibits graphically depict how the GDP has changed over time. Conversely,there have been four minor amendments to the Millenia plan since its adoption; however, the intensity and distribution of land uses remained relatively unchanged. More significant changes occurred in the villages. Instead of having local serving neighborhood core,higher density residential increased dramatically. The total number of multi-family units was increased by over 50%. This increase resulted in significant competition to Millenia within this market area. Millenia was no longer the primary location for multi-family residential. 1993 Otay Ranch GDP 2015 Otay Ranch GDP J. M x •2 General Development Plan Otay Valley Parcel - 1993 to 2015 Residential Comparison 1993 GDP 2015 GDPI Percent Change Land Use Acres Units Avg DU/ac Acres Units Avg DU/ac Acres Units Avg DU/ac SFD 11,173 11,152 -0.2% 3383.2 6.5 3213.9 10.7 -5% 164.4% MF 10,918 23,356 53.3 Total 22,091 34,508 56.2% Additionally,the non-residential components of the GDP have changed dramatically. In the original GDP the villages only had neighborhood commercial serving the local village. The current plan includes larger commercial areas located external to the village cores at arterial intersections. The type, size,and location of these commercial areas allows them to compete directly with Millenia to attract community and regional commercial uses. And,with the addition by the City of the Regional Technology Park(University Park and Innovation District),and significant commercial components added to other villages,the role of the Millenia plan as the central hub for future offices uses in the Eastern Territories has been altered. Creating an urban center in a suburban location always has challenges, but the dispersal of high intensity urban uses-is in direct competition to achieving the original intent of Millenia as being the (612812018) Millenia Amendment central urban center. Millenia previously had to compete with urban cores in the San Diego region, but now the competition is within the GDP itself. The result of the increased multi-family, commercial,and office within the GDP has changed the Millenia's competitive advantage and will likely hamper or delay its ability to achieve it's build-out goals. The proposed amendment recognizes the impact of this disadvantage, as well as the successes achieved in the initial phases of construction, in the build-out land use projections for Millenia. Non-Residential Competitive Evolution 1993 GDP 2015 GDP d j Neighborhood Serving Commercial Community & Regional Serving Comm. Regional Tech Park (6/28/2018) Millenia Amendment B. Summary Description Millenia is currently being implemented with almost a dozen prof ects completed,under construction, approved, or,in the Design Review phase of development. These projects include City parks, a hotel,office,retail,and affordable,rental,mixed-use and for-sale residential,representing virtually every land use type contemplated in the plan. Seventy percent of the private development land has been contracted with merchant builders. Since the SPA Plan was first approved in 2009,it has been amended four times in response to changes in public and private influences and actual market experiences. The applicant, SLF IV — Millenia, LLC, is the owner and Master Developer of Millenia. The applicant has agreed to implement all the mitigation measures adopted in the certified EIR, even though the project build-out proposed by this amendment may be less than the maximum intensity allowed. The adopted project implementation documents were designed to allow implementation flexibility using a Form Based Code format. Two provisions of the code were adopted with less flexible prescriptive standards. These include; the maximum/minimum intensity requirements in the Site Utilization Plan and, the minimum height standards for certain areas in the FBC. Based on experiences discovered during implementation, minor amendments to these standards to allow flexibility will enhance the ability of Millenia to be developed with the intended character. The Site Utilization Plan included a maximum intensity for residential and non-residential development. The unusual feature of these standards was the maximum appeared to be the minimum. Any development at build-out that would not achieve the exact maximum intensity would have appeared to be inconsistent with code. This amendment corrects this provision by allowing a reduced intensity for build-out of the plan for both residential and commercial land uses. The amendments to the SUP also reflect a re-distribution of the remaining commercial land uses to reflect what is expected to be achievable in the short and mid-term retail market. The other provision in the code,proposed for amendment, is the minimum height standards for six residential parcels designated as five story minimum. A five story residential project has'a number of practical restrictions,which would constrain the critical initial project momentum. These parcels are being amended to a new four story designation. Additionally, the permitted height minimums are being adjusted in several of the districts to reflect more contemporary building forms expected in those districts. To facilitate more comprehensive planning and to allow for more latitude in project design and implementation of the main street concepts, the application also introduces the concept of height blending between TM Lots 17 and 18 in the Main Street District and Lots 23 and 24 in the Central Southern Neighborhood District. Illustrations have been added to show how various building features can be used to create building height. Most of the districts in Millenia are fairly straight forward from a regulatory perspective, but the design guidelines for the Main Street District have always been the most challenging. Since, the original guidelines were adopted the market and evolution of this type of development have evolved. During the initial plan development,a number of projects were reviewed that tried to create a"Main Street" component in their plan. Some were successful, but many suffered from a failed"build it and they will come" approach. The worst thing that can happen is the Main Street to be built and (6/28/2018) MILLENIA Amendment- Project Description have numerous vacant store fronts. Such an outcome would not achieve the goal of providing an active, vibrant environment, and worse still, would stigmatize the remainder of the plan. What is included in the proposed guidelines, is a Main Street plan which provides for ground floor commercial uses, including strategically placed commercial nodes located at intersections, mid- block commercial, live/work opportunities, and creative office and dedicated retail space on the south. East and west sides of the Town Center Park. The intent of this concept is to correctly size, and geographically distribute the commercial uses in the Main Street District to create the intended character while addressing the need for supply of commercial to evolve with demand, avoiding the potential for vacant storefronts or underperforming,or marginal retail uses.Some design illustrations of the proposed Main Street District guidelines are included after the Site Utilization Plan and Height District Exhibits. The primary exhibits proposed for amendment are provided on the following pages. Adopted exhibits are shown with diagonal line across the exhibit and labeled as "Adopted". Proposed replacement exhibits are designated as"Proposed". The application process will involve discussions on the format of the proposed amendment. Following these initial discussions, the related text changes can be completed. These minor details and refinements would not change the impact of the amendment. The application materials being submitted also include a retail market study and a fiscal study, which analyzes the most conservative target land use scenario. It is also anticipated that a Supplemental Public Facilities Financing Plan (PFFP) will be required. That document will be provided once the target and reserve land uses are determined. (6/28/2018) MILLENIA Amendment- Project Description Eastern Urban Center (EUC) Sectional Planning Area (SPA) Otay Ranch GDP Adopted September 15, 2009 by Resolution No. 2009-224 Amended March 5, 2013 by Resolution 2013-03 Amended August 9, 2016 by Resolution 2016-170 Amended December 6, 2016 by Resolution No. 2016-262 and by reference to Ordinance No. 3397, dated December 13, 2016 strikeout = text deleted redline= text added Note: Some Page number may vary from adopted documents Draft 6/28/2018 Project Sponsor: SLF IV—Millenia,LLC Millenia Real Estate Group 9988 Hibert Street, Suite 210 San Diego,CA 92131 Contact: Todd Galarneau (619)794-1205 tgalameau@meridiandevelopment.com Prepared by: Cinti Land Planning 3639 Midway Dr.#340 San Diego,CA 92110 Contact: Gary P.Cinti (619)223-7408 garvna cinti.com (6/28/2018) MILLENIA Amendment- Project Description OTAY RANCH EASTERN URBAN CENTER (EUC) SECTIONAL PLANNING AREA (SPA) PLAN I. Introduction A. Background, Scope & Purpose of the SPA Plan The Otay Ranch Eastern Urban Center(EUC) represents the continued southward and east-ward extension of the initial development approved in Otay Ranch Sectional Planning Area(SPA)One, containing Villages One and Five,and the subsequent approval of Villages Six,Seven and Eleven, to the east and west,and the Freeway Commercial Center, immediately to the north,of the project site. The EUC is envisioned to compliment and support the Freeway Commercial area,completing the sub-regional commercial,cultural, social and public services center located_ in the heart of the Otay Ranch Planned Community as established in the Otay Ranch General Development Plan (GDP). As the urban heart of Otay Ranch,the EUC will contain the highest concentration of retail, employment,residential,civic and cultural uses. The GDP designates the EUCf.b, moic than up to 3.8 million square feet of conunercial space(office& retail),and up to 3,313 multifamily housing units. As further detailed below,this SPA includes only the applicant's ownership in the Eastern Urban Center portion of the area identified as EUC/Plannin-Area 12 in the Otay Ranch GDP,a planning area which includes-the Freeway Commercial area as well. The Freeway Commercial planning area was previously approved for development in a separate SPA plan. The application includes up to 2,983 units and up to 3,48990 3,324,000 square feet of non-residential. This SPA Plan is consistent with, 'and implements the land use plans,goals,objectives and phasing policies of the Otay Ranch GDP, as amended in December 2005. This plan implements the GDP policies and addresses existing and planned land uses,-public facilities,design criteria,circulation, and other development components for the Otay Ranch Eastern Urban Center SPA. Preparation and approval of this SPA Plan is required by the Otay Ranch GDP pursuant to Title 19,Zoning,of the Chula Vista Municipal Code. The objectives of this plan are to: • Implement the goals,objectives and policies of the Chula Vista General Plan,particularly the Otay Ranch General Development Plan. • Implement Chula Vista's Growth Management Program to ensure that public facilities are provided in a timely manner and financed by the parties creating the demand for, and benefitting from,the improvements. • Foster development patterns which promote orderly growth and prevent urban sprawl. • Maintain and enhance a sense of community identity within the City of Chula Vista and surroundinQ'neighborhoods of Omy Ranch. (i 2i6-46)(6/18/18) SPA PLA` i-1 (6/28/2018) INTRODUCTION B. Record of Amendments I Amendment.to the`Site Utilization Plan to change the Eastern Gateway District from mixed use to residential and deleting reference to an alternative school site,by Resolution No.2013-038. (3/5/13) 2. Amendment to the Community Structure,Site Utilization Plan and Circulation to relocate the school:site_and delete certain road segments by Resolution No. 2016-170 (81911(5) 3. Approval to:the:design_for,development in the;Site Utilization Plan, District I, by the Design Review.Gorriniitfee,nnd subject to an amendment to FBC Ordinance N0.3397,for District 1 Building Height Regulations. 4. This proposed amendment includes changes to the statistics on-the Site Utilization Plan, including the elimination of the"target" intensity category. It also includes revisions.to District 6(Main Street)and a reduction and blending ofheight regulations for certain lots, including,the addition of a 4-story category. (I b'64(7)(6/1.8/18) SPA PLAN 1-4 (612812018) MILLENIA Amendment- Project Description Ir rkonucTnoN Public uses are integrated in appropriate locations. A fire station site is indicated within the Civic District while a library site is within the Civic Core along with a public plaza park and an elementary school site. Access is provided via multiple entries located along each of the arterial streets which bound the planning area. Internal circulation consists of local street grid which provides multiple routes to any internal location. The public transit system will extend south from the Freeway Commercial center along EastLake Parkway,curve along the edges of the Main Street District,and then separate into a pair of one-way couplets to extend south to Village Nine. The transit stops are located near the heart of the Main Street District. The Gateway Commercial and Business Districts will have tollway exposure adjacent to SR-125. I. EUC Districts Descriptions Residential Districts: The EUC accommodates up to 2,953 dwelling units in a variety of urban residential products. While the greatest residential densities will surround the Main Street,the EUC also incorporates a series of residential neighborhoods organized around neighborhood parks. Residents within these neighborhoods will have access to a full array of services,such as a supermarket,drugstore,neighborhood shops and restaurants,and active recreation areas within walking distance. The location of the residential districts in relationship to the Main Street,and the ability to locate non-residential land uses within these districts, will allow neighborhood- serving goods and services to be provided in close proximity to all residential units in the EUC. Office District: This district will provide a major office campus with the South County region. Occupants will benefit from proximity and visibility to SR-125. The office district is perceived as a complement to other uses in the district,bringing expanded employment opportunities to the community, energizing the Main Street, introducing a significant daytime population, and providing riders for area transit. To promote internal capture,a system of internal vehicular and pedestrian connections(linking plazas and public spaces)will be required to link development parcels,which may vary in size to accommodate different sized businesses. Shared parking will be required to maximize parking-efficiency. Main Street District: This district will be the most active and urban component of the project, a mixed-use, pedestrian environment that zotnbines features office and residential uses over ground floor retail at key intersections and retail and office uses dispersed in mid-block locations (Refer to FBC 02.04.003) and adjacent to the park at the southern end of the district. Entertainment Access and places for residents to gather in restaurants, plazas, and shops is an important component function ofthe Main Street District,including retail shops,restaurants,bars and cafes,generating activity day and night. Public spaces accommodating community events, street fairs,and farmer markets will further make this the"place to be" The urban character of this district will be enhanced with interior plazas, paths,and jogging trails. 12r6A6)(6/18/18) SPA PLAN' I-1 1 (6/28/2018) IN"1<RODUCTION Sito Utilization Plan t - Adopted ."stern Urban Comer Qi tmm -- -`1N eAawarWea the eomcrow oo:icl 22.7 " { k n "2 tomwAtsm No y'manood 00bia 13.2 P 3 ;E>lssom GxvAay Nagnnorncod oisa;d 17,2 0 `;�4t n 25.4 :M iee Usa c,;.wco Co.Doukt 23.3 FMan svow.0do'd 34.7 }� ^€ '•."r 7 'Eosiem Gxa ay Oautd B.B , `5"sg- .-'""",,,. ` 8 _Swtrr+matem\oi0ttgW DisbiU 12,5 -; Contrar Sar,7-n ttagnpdrnoaa DWJW3 24A 10Sa4astam tttaoatwod Daertt 23.0 TotaP 2066. �} •r C -ti -10 'Dbes not tncWde peraneret arena/hq)rrxays t F ' ,e �, � A�-residm+ual ResiConUnt symteoa Eastern Urban Center Disrrkts -Sq.F1.(rr00sJ Parmtteo baeRm(t u.Pdmrtted 4or -.. . law rTa 1 K� to 1Tar0e1��H+{ih s=✓� , 1 Gott y h"Use Commercial Distm t0 i 400".I 700 .0 } 50I. 100 2 Nonneasiern e699hbanood,13isuid 2 1 X20 ( 200 .i50 ( .300.. _ _: C\ \\ 3 EascamGatmayNmgnberw*W Dstrkt __.0 50 I 250. t50{ 400 ...750 4 B-siness Diw 105 t 1.53211,,00 0 { .100_ -150 $ assod use Gr.vwca Cao Distrix t00 300 I t,000 0 } 200 . 6 Main Street DWna _� Potential Pnbk ComDonenta T E stdn G,itaway 0ubiu '_–O_–.' �...'.-.t�_o.._.�.y_._ ._LL • . p) park ''-8 200 300 So�.cstmrt NelpnboAnod DWM 2 1 50 1 200 300.1 500 1 700 J Udrory 9 Central SMIMCM Nagtborrrood tkrnkt 2 1 45 1 100 130 1 500 650 J Fire SWxon 10 sousi castem Ne obarhwd District 2 150 J 200 Y 200 1 20050 4� PVWIJf E*nwoxy Sct*w Yaxtm Not to Exceed,ToWs '],t57 7.953 CPF Sso . Notes: I.,-Nimtork Area SM.bob Ro net rbptes"I phascss" ?.<The aWcation of lnranwy in each,dsuid"be basad on Jho Ou+Mdrg Relght rogtearatsut rhei EVC - Ferm Based Codo,Cnaprer 03. ,002b ai,thoI Urban Design:RTKL, • . Eastern Urban Center CirltiLand Pionning u v aHISTA OTAY RANCH 02} 6'2910j(5/9/17) SPA.PLAN I-25 (6/28/2018) MILLENIA Amendment- Project Description INTRODUCTION Proposed Site Utilization Plan Area Eastem Urban Centro thstritts Acres Symbol Gateway wed Use Commetdw Owict 22.7 2 mor^Heg„oom000 o 13.2 V {_ f _�.t" 3Nwtw=m Neap wmood tin 17.2 25.4 s , mixed Use C7 coTce Coro Oistrkt 23.3 MUM Street tit 34.7 �1 Eastern Gwca2y asvict 9.6 Soudraestem Ne4hbomood 1)4uid 12.5 � 9 Cea7at Southam kegnbomood O'rsasct 24.4 6., 10 soumeauem NCigADW*W Obukt 23.6 Tour 206.6 7 toes roc it ,aa mer&ZMX hoftw ys 64 10 " ,. Non-Resid.(000's Sq.Ft.)' Residential(OU's)` District Low High Low High \; 1 227 400 0 89 2 2 2 273 273 Potential Public Components 3 2 5 150 475 tQ Park 4 800 1.900 0 225 Library 5 455 900 0 300 d Fire Station 6 80 100 100 601 @ Potential Elementary School 7 0 0 100 117 (� CPF Site 8 2 2 253 253 9 0 5 130 350 Notes: 10 0 10 230 300 1.The Numeric Symbols do not represent Totals 1,568 3,324 1,236 2,983 phases. 2. The location of the public component symbols are corxept;onaf only. 'Refer to FBC Section 04.05.for Intensity Transfer Provisions. �lll� : Cn1i Land anning•llenta --1 oZ*VIsrn OTAY RANCH Ls Exhibit I-6 (12,646](6/18/18) SPA PLAN I-25 (6/28/2018) DI;VI:I.0?PMf;N7 CQNCI:P'I' G. Landscape Design Concepts As with urban design,the majority of landscape design and treatments for the EUC will be developed or refined at the design review/site plan stage of design. The landscape will have a distinctly urban character;integrating planting with hardscape. The use of drought tolerant plant materials will be emphasized. The SPA-level overall landscape design concept for the Otay Ranch Eastern Urban Center, focusing on pedestrian streetscapes and trail alignments, is shown in the Exhibit _II-5 (Landscape Zones)'. It provides a,coticeptual designframework that will allow latitude and flexibility within the EUC,while maintaining the overall landscape design goals and objectives throughout the community. 'Refer also to the FBC for the requirements for a Landscape Master Plan. All plans for public improvements (parks, streets, open space,etc_) will be reviewed and approved by the City Engineer. The street system contributes to the community stnicture and the street landscape treatments'will be used as community design elements. All.plans for public improvements,such as;parks,streets,and open spaces,shall be reviewed and approved by the City Engineer. The peripheral arterials will each have distinctly different dominant tree species and/or planting patterns to create a specific appearance for each street category. As designated in the Otay Ranch Overall Design Plan,streetscapes adjacent to the EUC will have a unique'character/design to distinguish the regional urban center location. The EUC project area has been,divided into Landscape Zones in order to differentiate various locations with varying landscape designs. The Landscape Concept Zones are shown on Exhibit'Il-5 (Landscape.Zones). A series of matrices for streettrees is included in the Form Based Code. Each zone designated within the EUC shall have distinct landscape character defined by the careful selection of street trees,planting,signage,street furniture,lighting,and in some cases,paving. The creation of these zones will assist in helping residents and visitors in wayfinding within EUC and will help to define the identity of each neighborhood district. The followine describes each zone.:. 1. Zone_A-Main Street The Main Street Zone will support a vibrant atmosphere that includes a vibrant mix of consists retail,creative office,live-work units,services,'eating establishments and public spaces. Tables and chairs in the sidewalk cafe zones,and benches,seat walls and other site-furnishings will provide ample opportunity for outdoor seating and gathering. The regional trail will pass through a portion of Main Street and shall be designated by theme elements consistent with the regional trail throughout the EUC. The town square,which will be privately owned and maintained,will serve as a park zone within the retail center. Design options for the town square need to be. incorporated into, and act as an essential design component of, the adjacent commercial. Informal plantings of shade and ornamental trees will provide a canopy above benches and other seating on the paved promenade below. Large shade trees and small shrubs along the perimeter,that shall be coordinated with the fifnction and visibility required by building tenants,will create a comfortable gathering space when the streets are closed off for community events and festivals. While the Main Street Zone will be one of the most important public places in the EUC, its ownership and/or maintenance may be public, private, or some combination of both,to insure the.intended level of quality is maintained. (-10MM9 (4/231171 I1=13 SPAPi..� (612812018) G MILLENIA Amendment- Project Description VII. Public Facilities A. Introduction The inclusion of public_facilities issues is a distinguishing feature of SPA Plans. This portion of the plan outlines the public facilities which enable the community to function properly. The Otay Ranch GDP establishes the following goal regarding the provision of public facilities: GOAL: ASSURE THL•'EF7YCIL;NT,,IiVD TI1b ELY PROVISION OF PUBLIC SL•'RVICE.S AND FACILITIES TO DEVELOP 1BLE.AREA.S OF OT.A)-RrLVCII CONCURRENT IVIT H NEED. This chapter outlines the local and regional public facilities necessary to serve the Otay Ranch Eastern Urban Center SPA. The Public Facilities Finance Plan (PFFP) provides additional. descriptions of public infrastructure and financing mechanisms planned for each facility. The public facilities described in this section have been sized and designed in response to the planned distribution of land uses shown on Exhibit I-6(Site Utilization Plan). This section examines local facilities including water, water conservation, recycled water, sewer, drainage, urban runoff, schools, parks, recreation, open space and trails, law enforcement, fire protection, animal control, civic, library and child care facilities. This chapter is a summary of the information,recommendations and conclusions contained in other documents. All public services,facilities financing and phasing issues are addressed in the Eastern Urban Center SPA Public Facilities Finance Plan. Additionally, some facilities are the subject of separately prepared master plans which are included in the Technical Appendices. There are two grading options presented in Chapter IV. These alternative-would have cause some variation-to-the provision and location of public facilities. These variations are included herein as alternatives and in evaluated in all technical reports as a part of the project. The infrastructure provisions in this chapter are based on the maximum build of 3,324, 000 square feet of non-residential and 2,983 dwelling units. Water,sewer,recycled.water,and storm draina`Te shall be built-out to.allow for the permitted intensity. Provisions for population based uses(Schools, Parks, and CPF) shall be adjusted, according to the rates specified, as the project is built-out. Prior to approval.of the first final map, a Sub Area Master plan (SAMP) shall be approved by the Otay Water District(OWD)and submitted to the City of Chula Vista. This SAMP will identify the potable and reclaimed water facilities necessary to serve the EUC. Should the SAMP identify facilities, not contemplated in the SPA or PFFP. then the SAMP shall take precedence,'btut not require an amendment to these documents. B. Potable Water System ( f)t6)(6/23/201 S) SPA PLAN' VII-1 (6/28/201 s) MILLENIA Amendment- Project Description PC DISTRICT REGULATIONS & VILLAGE DESIGN PLAN Eastern Urban Center Sectional Planning Area (SPA) Otay Ranch GDP Adopted October 6, 2009 by Resolution No. 2009-224 and by Ordinance No. 3142 Amended March 5, 2013 by Resolution No. 2013-038 and by Ordinance No. 3257 Amended August 9, 2016 by Resolution 2016-170 and by Ordinance 3372 on August 16, 2016 Amended December 6, 2016 by Resolution 2016-261 and by Ordinance No. 3397 on December 13, 2016 DRAFT AMENDMENT strikeont =text deleted redline=text added Note: Some Page number may varyfrom adopted documents 6/28/2018 Project Sponsor: SLF IV—Millenia,LLC Millenia Real Estate Group 9988 Hibert Street,Suite 210 San Diego,CA 92131 Contact: Todd Galarneau (619)794-1205 tgalameau@meridiandevelopment.com Prepared by: Cinti Land Planning 3639 Midway Dr.#340 San Diego,CA 92110 Contact: Gary P.Cinti (619)223-7408 gary@cinti.com (6/28/2018) MILLENIA Amendment- Project Description INTRODucrioi`: Regulating Plan Street & Block Identification Note: This exhibit is included for reference only H � � 3 � a 2 m uN / S P1 v 0 6 10 rA 9 8 12 13 14 1 7 15 ,;. 1 l' 20 19 P3 18 21 17 f 22 = waf 23 \ 16 24 / 29 �� - P4 27 y PS P6 26 d'1 25 28 n Ra= "A" Street Reference Identification 27 Block Reference Identification P2 Park Reference Identification Urban Design:RTKL On:i Lund Planning • astern ran enter --dm ctMA vtsrA OTAY RANCH u Exhibit 1-1 (I 2,A 1,%f6)(212312018) I-4 EUC PC DisTRic-T REGULATIONS (6/28/2018) MILLENIA Amendment- Project Description iNI RObUCfION 01.05.000 Definitions For the purposes of this ordinance, certain words, phrases and terms used herein shall have the meaning, assigned to them by Title 19 of the. City of Chula Vista Municipal Code, except,as otherwise specifically defined herein. When consistent with the context,words used in the present tense include the future; words in the singular number include the plural;and those in the plural number include the singular. The word "shall"is mandatory;the word"may'is permissive. Any aspect of land use regulation within the Eastern Urban Center SPA not covered by these district regulations or subsequent plan approvals,shall be regulated by the applicable chapter of the CVMC. The following specific definitions are provided for the Eastern Urban Center SPA: 01.05.001 Average Building_Height(stories): The overage building height of a parcel shall be determined by dividing the total number of storie"s(existing and proposed)in,a parcel, excluding minor accessory buildings,exceptions identified in Chapter 03,and free- standing parking structures,by the number of buildings in that height district.(Refer also to exceptions and notes on Exhibit III-49.Minimum Average Building Heiahts.) 01.05..002. Build-to Line-A Build-to lure is aline designating the location,as a setback line,of the front or side of a building along a street or sidewalk intended to place the structure in close proximity to pedestrian traffic. . 01.05.003 Building Type District is the type of buildings within a district that reflects the dominant land use. 01.05.004 Complete Development - Complete development means actual.construction of buildings at the highest intensity (greatest building height, maximum floor area, maximum number of dwelling units,etc.)allowed. 01.05.005 CVMC-Chula Vista Municipal Code, in effect upon adoption of this ordinance. 01.05.006 EUC or EUC SPA-When consistent with context,EUC or.EUCSPA means that area within the boundaries of the approved Eastern Urban Center Sectional Planning Area Plan. "Millenia" identifies that portion of the EUC included in The SPA.Plan and these Planned.Community District Regulations. 01.05.007 District-Unless otherwise referenced to a regulation or exhibit,a district refers to the areas defined in the EUC SPA Site Utilization Plan as districts. 01.05.008 Final Map: Final Map,means either a final subdivision map or a final parcel map prepared in accordance with the Subdivision Map Act and the Subdivision Ordinance. A Final Map may contain a'combination of Master Subdivision Lots and Final Map Lots,which shall be clearly designated on the Final Map.. a. "A" Map or Master Subdivision Map-An"A"Map(also known as a Master Subdivision Map) means a Final Map which subdivides property into large "superbloeks." 'The superblocks(alsokno�v as Master Subdivision Lots)are separate legal parcels under the Subdivision Map Act and the Subdivision Ordinance which can be separately sold,leased, or financed. .(W9,46j(7/31/17) 1-5 EUC PC'DISTRIC:r Rli6,11L.ATIONS (6/28/2018) MILLENIA Amendment- Project Description INTaooucrrox b. "B"Map-A"B"Ntap is a Final Map which identifies the maximum number of residential units which may be developed on the Final Map Lots within the subdivided property. c. Final Map Lot-A Final Map Lot is a lot or parcel shown either on: (1)a"B"Map,or(2) an"A"Map,if the"A"Map identifies the maximum number of residential units which may be developed on the Final Map Lot and appropriate sureties are provided for any required public improvements,as identified in the PFFP,for the Final Map Lot. d. Master Subdivision Lot A Master Subdivision Lot is a lot or parcel shown on an "A" Map. 01.05.009 First Floor or Ston'- First floor or stay(street level) means the floor level of the building'entered.from the ground or street level either directly or via stairs,not more than six feet above adjacent pedestrian level grade.. 01.05.0010 Form Based Code or F13C-The entirety of this document and all references. 01.05.0011 iconic or Landmark Building - Is a building whose scale, form, materials, use or detailing; present a conspicuous structure:that may be used to mark a locality, a boundary,an entry,or turning point. 01.05.012 Initial Build-ow-Refers to the initial development of parcel or District. Full build- out would include the total development,which may include the Initial build-out plus block concept plans for the ultimate build-out of a parcel or district. 01.05.013 Interim Use-Interim use is a land use established and maintained prior to complete development within a land use district. Once an area has reached complete developmeltt, interim uses are not allowed. 01.05.014 Laud Use District/Land Use District Subarea - Land use districts and land arse district subareas are the areas so identified on the Land Use Districts Map (Exhibit PC-1 herein). 01.05.015 Master Developer - The master developer is the major private landowner, other controlling entity,.or designee, of the property within the EUC SPA initiating the development process. .Unless otherwise noticed, the master developer-shall be the applicant for initial RX SPA Plan approval or his designated successors in interest. The role assigned to the imister developer shat l transition to a private property owners association as provided for in recorded conditions covenants and restrictions for the EUC_ 01.05.016 Parcel-A parcel as used herein is a block identified on Exhibit I-1,Street& Block Identification. 01.05.017 Storv.and Height - A slory is a useable floor in a structure, above or below grade, including_ covered roof decks intended for use by people. The structure's height is measured above grade consistent with the CVMC,but the number of stories includes both above and below grade floors. Refer also to CVMC 19.04 276 and 19.04.290. 01.05.018 Subdivision Map Act-Subdivision Map Act means the California Subdivision Map Act(California Government Code§'66410,et seq.) (ar,"(Gt1sl18) I-6 EUC PC Disr►ucr RimuiA'nONS (612812018) MILLENIA Amendment- Project Description INTRODUCTION 01.05.020 Tentative-Map-Tentative Map means either a tentative subdivision map oratentative (also known as preliminary)parcel map prepared in accordance with the Subdivision Map Act and the Chula.Vista Subdivision Ordinance. 01.05.021 Zoning Administrator (ZA) - The zoning administrator is that position defined in Chapter 19.14.020 CVMC. 01.06.000 Private Agfeeriients The provisions of this ordinance are not intended to abrogate any easements, covenants, or other existing agreement`s which are more restrictive than the provisions contained within this ordinance. 01.07.000 Conflicting Ordinances, Whenever the provisions of this'ordinance impose more restrictive'regulations upon construction, design or use of buildings and structures,or the use of lands/premises than are imposed or required by other ordinances previously adopted,the provisions of this ordinance or regulations promulgated hereunder shall apply. 01.08.000 Establishment of Regulatory Districts In order to classify, regulate, restrict and separate the use of land,buildings and structures, and to regulate and limit the type,,height and bulk of buildings and structures in the various districts,and to establish the areas of yards and other open space areas abutting and between buildings and structures,and t. regulate the density ol'population,-the Eastern Urban Center SPA is hereby dividedinto the following Regulatory Districts: J (BJ9i 16)(7/31/17) 1-7 FUC.1'C DISTRICT RF6R ATIONS (6/28/2018) MILLENIA Amendment- Project Description Dis,m ,REiGULATIONS AND DLSIGN GUIDELINES District 1 - Table of Requirements Adopted d'@ Dominan Sd Use CO Low Target High Residential Dwelling Unit rmitted 0 50 100 MA Non-Residential Intensity Range Low Target High (in 009s Sq.Ft.) 100 400 700 0%10' Building Setback CVA Stories N. or height in feet 1 3 Minimum Average Building Height 25' 40' minimum MH1 MH3 1-7 Building Height Range(stories) O Access Management Category o .6a Z,Xch Z J RIIRO Note:Refer to"Pedestrian Corridors'.exhibit for widths and locations of walks. Exhibit II-5a (819!2016) 11-6 EUC PC Dlsuict-Rf iui-evnONs (6/28/2018) MILLENIA Amendment- Project Description Dis*rwur REGULATIONS AND DESIGN GUIDELINES District 1 Table of Requirements Proposed N d•/r C y Dominant Land Use U)CK m Low High Residential Dwelling Units Permitted'. • •- 0 89 Non-Residential Intensity Range Low High (in 000's Sq.Ft.) 227 400 Refer to FBC 04.05 for Intensity Transfer provisions 0' 0'-10' Building Setback District MH-1 MH73 Height(Stories) 1 3 -Minimum Average Building Height Residential 25 35 Height(Feet) Non-Residential 25 40 Height(Feet) El7Building Height Range(stories) O v a y C 0 U � Access,Management Category oa Q. a X. Z J y RI/RO Note:Refer to"Pedestrian Corridors"exhibit for widths and locations of walks. Exhibit It-5a (8/9/2016) (6123/18) I1-6. EUC PC DISTRICT REGtJI.A•I'IONS (6/28/2018) MILLENIA Amendment- Project Description DISTRICT REGULATIONS AND DESIGN GUIDE-LINLS District 4 - Table of Requirements Adopted N V) m � C m Domina Land Use M Low Target High Residential Dwelling is Permitted 0 arg 150 Non-Residential Intensity Ran Low Target High (in 000's Sq.Ft.) 505 1,532 1.900 0'-10' 0-15'+ Building Setback ries or heig in feet Minimum Average Building Height 1 5 25' 70 MH1 MH5 1-7 3-15 Building Height Range(stories) yUN N U Access Management Category o 2 J Exhibit 11-9a (Hr'W2816j(1/17/18) 11-12 EUC PC DISTRICT REGULATIONS (6/28/2018) MILLENIA Amendment- Project Description DISTRim-RL:GULA-f ON5 AND DrSIGN GUIDI_I.tNCS District 4 - Table of Requirements Proposed y y C@ _ d Dominant Land Use CD Low High Residential Dwelling Units Permitted o 225 Non-Residential Intensity Range Low High` (in 000's Sq.FC) 800 1,900 Refer to FBC 04.05 for Intensity Transfer provisions 0'-10' 0-15'+ Building Setback District MH-5 Height(Stories) 5 Minimum Average Building Height Residential Height(Feet) 35 Non-Residential 70 Height(Feet) 1-7. 3-15 Building Height Range(stones) y N �U U Access Management category o 2 J Exhibit 11-9a ($u9, ) (6/23/18-) I1 2 EUC PC Dis,rRlc,rRrrULA'rIONs (6/28/2018) MILLENIA Amendment- Project Description DIS7'RICr REGULATIONS AND DI-SIGN GUIllEI_NES District 5 - Table of Requirements Adopted m Domina Land Use X Low Target High Residential Dwelling .sPermined 0 260 300 Non-Residential Intensity Ran low Target High (n 0Ws Sq.Ft.) 100 90o 1,000 0 0'-5' 0-10' Building Setback Stories or ightin feet Minimum Average Building Height 1 5 25' 40' 70' MH1 MH3 \MH5 2-7 2-12 Building Height Range(stories) N N Access Management Category Z J Note: Refer to the'Pedestrian Corridors'exhibit for widths and locations. Exhibit 11-13a (S"ga $!6)(5/9117) 11-18 EUC PC DISTRIC-r REGULATIONS (6/28/2018) MILLENIA Amendment- Project Description DISTWC= Ri.*6111A'1'1f)\S ANW D sic. (;tilt>t u,t vS District 5 - Table of Requirements .Proposed Dominant Land Use Li Low •High Residential Dwelling Units Permitted 0 300 Non-Residential Intensity Range Low High Cin 06&s Sq.Ft.) 455 900 7-1 Refer to FBC 04.05 for Intensity Transfer provisions 0' 0'-5 0-10' E ng Setback District MH-2 MH-3 MH-5 Height(stories) ? '3 5 Minimum Average Building Height Residential NA 35 55 Height(Feet) Non-Residential 35 Height(Feet) 1 1 40 70 2-7 2.12 Building Height Range(stories) Access Management Category a¢ 2 J Mote: Refer to the`Pedestrian Corridors'exhibit for widths and Dations. Exhibit 1143a (fi%'1%2 (6/23/18) 11=18 EL C PC DISTRICT Rl(iUl xI,tV\S (6128/2018) MILLENIA Amendment- Project Description DlsrRIrr REGULATIONS ANb DGSIGN culnEl..t\`ES District 5 ,Requirements ; :-fA' Mixed Use/Office District Adopted MH2„ " ! y Key Map ik ( Ot7 r� ( MH,S' Y 'y Park MH1 the Q\e< Potential Elementary gptU School_Sitil" �I ay .Lot`-1,6 .Mks Note: Two story buildings are permilted providing minimum average height is achieved. (� Exhibit 11-13b 1I-19 EUC PC DISTRICT RmuI-ATIONs (6/28/2018) MILLENIA Amendment- Project Description -DISTRICT REGUt:ATONS ANL)DI sIGN GUIDELINES t Distr' ict Requirements Mixed Use/Office District & Proposed 11 ``; ;� ✓' MM2; IS _ >1 Key Map t �`t4 4 Lot`7' Amendment includes a MH5'" change in setbacks adjacent to Park from 0'to 0`-5' Y y4 �i?ack IVIH'i � he 8�y L6t1t t, M1=i3 Poteriftal Elertientary SchootaSite" , Noto:.T\vo story bu k5ings are permitted providing minimum average height is achieved. (� Exhibit I1-13b (f3;=W201 ('12h /17) II-19 EUC PC DISTRic r REGULATIOM (6128/2018) MILLENIA Amendment- Project Description DIs1Rlc,r REGUTATIONs AND DESIGN GUIDELINES 02.04.000 Main Street District 02.04.001 • Character Description cafes,Entntain Ditailt COMP011 nt of Main Street, including mtail shops,restaurasits, bms and and a potnitial fbi a mocety stoic, - e y day and night. Public this th This District will be the most active and urban component of the project, a mixed-use,pedestrian environment that features residential uses over_round floor retail, creative offices,and live-work units at key intersections and dispersed in mid-block locations and adjacent to the Town Square Park. Entertainment and public gathering spaces are important components of Main Street,which may include retail shops,restaurants,bars and cafes, generating activity day and mizht. Public spaces accommodating community events, street fairs,and famier's markets will further"make this the place to be." 02.04.002 Organizing Principles and Urban Design Vision a. Continuous 34 slop-mixed-use buildings, i.e.,office,residential,hotel(uses include ground level retail). b. Vibrant,high energy,eclectic"round the clock Main Street" focused mixed use pedestrian-oriented precinct. C. Visually interesting secondary entry gateway(portal) from Birch Road_ d. Special lighting&signage to provide drama and upscale elegance. e. High quality pedestrian connections-to-districts-beyond as well as-parking with shared parking preferred. f J .Y•J� y-' '..y11 M� Exhibit II-14 (4/26/2018) II-20 EUC PC DISTRICT REGULATIONS I (6/28/2018) MILLENIA Amendment- Project Description DI$TRic-r REGULATIONS AND DESIGN GUIDELINES '02.04.003 Overall b. a. Overview: Most historical"main streets"evolve and do not begin with their ultimate mix of uses. The Millenia Main Street District will likewise be implemented and evolve over time. b. For purposes of tl"s section 02.04.003 the following defiliitiolis shall apply: 1,. 'Commerciail"means both Initial Commercial space and Interim Use space' 2 "Initial Conin-lercial means commercial space constructed as part of initial construction and intended for immediate commercial usage. 3: "Interim Use"ineans space designed to,the con-inercial standards described below,but allowed for use as residential subject to the applicable provisions in Section d. below. C. Required Commercial Components of the Main Street District 1. The minimum;amount of commercial shall be 80,000 square_feet. 2- The'taruet amoulit of commercial shall be 90,000 square feet. d. The main street Commercial square footage may be implemented in phases to coincide with,narket demand for commercial uses,or implemented in its entirety as part ofinitial development,at the applicant's discretion.The following criteriashall apply;however,the City may approve reductions in the taryret and minimum amount of Commercial (subject to the findings contained in Section 04.05.000), and exceptions to the criteria below fora proposal which advances unique solutions,such as the use of liner ,retail space; which can provide the desired activation and pedestrian experience.with less or alternatively configured physical space. I. A target.of 90,000 square feet of Commercial space should be provided subject to the provisions below. ?. Up to 33% of the Commercial square footage can be implemented as live/work.residential units or office space. 3. Up to 10%of Commercial can be provided as dedicated outdoor retail space. 4. N'linimum plate heights for Initial Commercial space including the ivied use commercial space on lots 8,9,14 and 15 should be 15 feet. Minimum plate heiL'Thts for lire-work units constructed as Initial Commercial should he 10 feet. 5. Conimercial spaces should be designed,where possible,in a way that allows these spaces to expand or contract with the housings modules above while incorporating strategies to reduce costs for design. constrLICtiOnjand tenant- improvements thus avoiding costly steel structures or elevated concrete podium designs: 6. Live/work and office spaces should be a minimutn depth.of 30 feet. 7. Conimercial spaces should be a minimum depth 40 feet. ,_9_16)(c,,1s/1R) I1-20b EUC PC Dts'rRic-r Rr-GULATIONs (6/28/2018) MILLENIA Amendment- Project Description Dis7"RIc1'Rt:GULAi'IoNS AND DESIGN GUIDELINES S. The Commercial space on Lots 8,9,14 and 15 may be designed and implemented as a separate, stand-alone project subject to the followings: MILLENIA Amendment- Project Description Dts,rwc r Rt.cut_.\i,io,\S M)Dtstc,,N� ctrmra.t�rs Malin Street District Orgnizing Connections Propose 2 . j � 7 fj1 i ��tr � t1.y1?3in f • t} `i p 2 5' 3 7 �tIWAI } Northern &,Southern Portals Pedestrian'& Vehicular Access `Gat06ring Places/Required Commercial Nodes Main Street District Exhibit 1I-146 (8,99016 11-20d EUC PC Dtsi-Ric-r 111361u,Arto`s (6/28/2018) MILLENIA Amendment- Project Description DISTRICT REGui vnONS AND DESIGN GUIDEU,,TS 02.04.0034 Overall a. Encourage a complimentary mix of uses throughout the Main Street District to ensure"round-the-clock"activity it is an attractive place for neighbors to gather. b. Promote a high level of streetscape amenity due to the pedestrian-oriented nature of the Main Street-District 02.04.0045 Site Planning 1. a. Establish a strong relationship between buildings and Main Street, placing the building at or near the sidewalk edge(i.e.reinforce the-street wall). b. Emphasize giotindflont Letail fiontage, although , 1 on the side st. intelsection- b. Highlight ground floor pedestrian oriented uses detailingi around SqU ie Main Street Park to activate the space,which may include-plazas,outdoor eating and g=athering places, and facilities for Community events. 02.04.0066 Architecture a. Introduce pedestrian-scaled design elements at street level, including inviting entrances, ndows, couidinated canopin and mvnings-. which may include; fenestration, trim, door detailing., planters, lighting_, signage, and address numbering_ b. Maintain a high_degree of street-level interesting design features, transparency, , and opportunities for outdoor dining.which may include, elevation variations, awnings, directional and address signing,and street lighting. C. Encourage distinctive and innovative storefront design andsignage while maintaining compatibility with the overall building character and urban street scene. d. Storefront Transparency:Storefronts atmrg and plazas along MainStreet intersections shall be inviting with transparency and outdoor'seating and gathering areas. be isedofaiiiiiiiiiitiiiic)F70%tmi§pa,cait !Sla7ill6nli4 f 30% solid wall. This standaid shall apply to the giound floo, leasable space oF stoiefionts. Variation may be considered in order to accommodate indi6dual specific use renamartt concepts while keepin- in mind the need to maximize transparency in a manner consistent with the use as an attraction to Main Street pedestrians.adjacent smrtf ants. 02.04.0067 Landscape (8,9=2016 (4112713) II-23 EUC PC DISTRICT REGi7LAnO`S (6/28/2018) MILLENIA Amendment- Project Description DIS`I'Ittcr RE(;ULA'I'IONS AND DESIGN CIJ[DrLINFS � . Main Street W Illustrative � 4E9 Proposed Q j ♦♦♦o .. IL N c ,rf` •" io � � ApartmentsEM Condos h 1 r h Initial Commercial .' ' „ . I �0h Interim Use u ppam,n� Lot numbers shown are from final Map 16081,Chula Vista o Tract 09-03 Note: This exhibit.is an artist's ' r conception of the build-out of the Main Street District in Milfenia. District 6. It represents only one of various alternatives thal would be >'Q O1Y i ° consistent vriUt the Intended vision - .±. �, `'"_. ofMillenia. Refer to Section_02.04.000 rMain Street District for specific., k it I requirements Refer also to Exhibit 11-19b Pedestrian Promanade Exhibit P-16 (8,9,'2016 (6.1'1811`1$) 1T-27 EUC PC Dis nucr Rr.•.GULATIO S (6/28/2018) . l arsi + V Z� y�� 1 rT lam dpi,yt�si+'�r 415&-7Am- „lle. i,:� -. MPD, 't IM Roam wµ MILLENIA Amendment- Project Description Dis'i-K>Ce ReGtli_ATIONS AN6 DESIGN GUuir-_r-rtiEs Main Street District Block End Gathering Places V. i r Y` N1• _.��0. Yr. �e`fl q f 3 {d� T � r , iS Source:KTGY Exhibit 11-17b (WW2616) /12/14j 11-27b EUCPCDISTRim,Rawl-A'noNS. (612812018) MOOREi � • fill 54A to RE Ir i • MILLENIA Amendment- Project Description DISTRIC r RI GIJLATIQNS AND DESIGN GUIDELINES CONCEPT,' Main .Street District The mid-block retail& Mid-Block Retail & Plaza along Metro Ave. pocket plazas are created to provide an activated destination at mid-block .locations. Refer to Exhibit II-16 for examples. covere 3 Pocket Plaza eo�ered Mixed Use a Seating6�* Seating 15. 1 S. hk 4 Zell - Rsi� ental,},---_ ' 1, C' Outdoor Dinin f ` t�'lfi d - p - S DPl 4 4t(F4 Opportunity t lit _ Mid-block Retail �.r r I -4-A I _ 1 , Main Street Note: This exhibit is an artists conception'of the development of Alittenia,District 6.it represents only one of various altermves that would be consistent with the intended vision for Miltenia. Source:KTGY Exhibit II-17d (8,'W'_Oi6)(6,20/18) 11-27-d E'-UC PC DCSTRIC"1'RuctJLA,nONS (6/28/2018) MILLENIA Amendment- Project Description DISTRict-REGui-A,nONS AND DESIGN GUIDELINES Main Street District Mixed Use at Town Square Park *bwe; 44 }- s ? - D t � INZ ,Z A ; - 2vs-Mr- lYf y 4 I� b r W `, A� _ ,� Source:KTGY Exhibit 11-17e f8y3616) (6!20/13 11-27e EUCPCDis,rRrci,Recui-A,nONS (6/28/2018) MILLENIA Amendment- Project Description DISTRici-Ri.-c-UI.A,rIONS A.\,i)Di-,Sl(;N GUIDFLINES Main Street Scene Showi,ng Pocket Plaza & Bu.i.1ding Heights gap o A, Exhibit II-17f Note: This exhibit is an artist's conception'ofthe development ofMiflenia,District 6./1 represents biilyotze.pfvaiiouS'atterntives that would be consistent with Me intended vision foiPillenia. Sourcw.KTGY {6/20,118) 11=27f EUC PC Dis,i,Ric�i,.Rt iw.KrIONS (612812018) MILLENIA Amendment- Project Description DIsTRIcr RC•.c JI-ATIONS AND DESIGN cUIDra_PINFs District 6 - Table of Requirements Adopted N Domin Land Use X Low Target High [Residential Dwelling Un Permitted t00 arg High 00 Non-Residential Intensity Range Low Target High (n 000's Sq.Ft.) 80 240 400 Building Setback Stories or height in fee► Minimum Average Building Height t 3 25' 40' MH1 MI-13 1-7 2-7 2.12 Building Height Range(stories) v Q Q C q Access Management Category a ri a z 7 Exhibit 11-19a (Sr'WiB16)(1/17/18) II-28 EUC PC DISTRIcr Ri:Gui vTloNs (6/28/2018) MILLENIA Amendment- Project Description DIST'RI t'REGIA XTIONS Atilt)DESIGN GUIDI _tms District 6 - Table of Requirements Proposed N a _ Dominant land Use X Low High Residential Dwelling Units Permitted 100 601 Non-Residential Intensity Range Low High (in 000's'Sq.Ft.) 80 100 Refer to FBC 04.05 for Intensity Transfer provisions (Y 0'-5' Building Setback Minimum AverageBuilding Height [3istricl MH-1 MH-3 Weigttit,(Stories) 1 3 (Peter also to Exhibit 11149 for additional Residential information. MH-1 applies to retail fronting Height(Feet) 25 35 Park P-3 and retail at intersections on Mainon- esidentiat Street) Height(Feet) 25 40 1-7 2-7 2.12 Building Height Range(stories) V J � syajj Access Management Category z Exhibit 11-19'a (6/23/18) EUC PC Dlsmicl`Rrcut.ATION (6128/2018) MILLENIA Amendment- Project Description Disc-Ricr REGULATIONS AND DESrGN GUIDELINES District 6 Requirern'ents Main Street District n LLI— 'E' a L`605 MH3; tr y kill Key Map - m _ Lot`1,4= _ MH3 H3 Park - MH1¢ ,Lot 1r8` - LMH3.; Note: Refer to entire SPA and FBC for complete requirements and how to apply those specified on this exhibit. Exhibit II-19b (WW2616)(4/12/18 11-29 EUC PC DISTRicr RI?CiULA'rlUNS (6/28/2018) MILLENIA Amendment- Project Description DIS`rklcl'Ri-,.(aal,%,rlONS m)Dt�ic; r ctnt�ra_t�t District 6 Requirements Main Street District Proposed LOt 6% MH3 },. Y Key htd "LOA 1 4: - cp, The Town Square Park& ¢~ adjacent retail and the residential in lots 17 a 18 mayTownSquare Park be planned and implemented together or independently. If they < .are planned and submitted , ti{ independently for Design Review. # MH3 then the area that is planned first _ shall include a concept plan for the other to coordinate any required MH3' boundary adjustments. Lots 17 8 IS have been combined with lots Note. Refer to entire SPA and FBC to the south in the final map. Refer to W complete requirenwnts and how Section 03.08.002 b.vi.6 for height provisions to apply those specified on this exhibit. Exhibit 11-19b ( t{t,) (6/28/1s) 11-29 . EUC PC Distutc-r RrGLJ;ATIONs (6128/2018) MILLENIA Amendment- Project Description Dls,r me r Ri:GUI AT10\S AND Dr-sic-.,,aumr LINES District 7 - Table of Requirements Adopted Domin Land Use Cr Low Target High Residential Dwe\- nitsL Permitted o Target Sig Non-Residentiallntensit nge Low Target High (in 000's Sq.Ft.) 0 0 0 0'-5' 01•10' 0.15'+ Building Setback Stories or height in feet Minimum Average Building Height 2 (Refer also to exceptions in 40' Chapter 03.09.002b vi,herein and Exhibit 111-49 for additional requirements.) 2-12 Building Height Range(stories) yuN m U 0c cr l4 Access Management Category o z a m Exhibit 11-23a (S/9/2016) 11-34 EUC PC D►sTRic-r REGULATIONS (6/2812018) MILLENIA Amendment- Project Description DIS-mtcC REGULATIONS ANDDLsI6,N GUIDELINES District 7 - Table of Requirements Proposed Dominant Land Use w e High Residential DwellingLowHh Units Permitted 100 ig Non-Residential Intensity Range Low High (iri:00(Ys Sq.Ft.) 0 0 Refer to FBC 04.05 for Intensity Transferprovisions. Building Setback ••••-- District MH-3 Height(Stories) 3 Minimum Average Building Height Residential Height(Feet) 35 talon-Residential 40 Hei ht(Feet) 2-12 Building Height Range(stories) W C Access Management_Category o `¢ a z to Exhibit II-23a (8/912016)(612?115) Il-34 EUC PC DISTRIt✓T REGlJLA'i'IONs (6/28/2018) MILLENIA Amendment- Project Description Dlssrmcr RwIJI rXTIONS ANa)Di-SIGN GUIDELINTS District 2 - Table of Requirements Adopted m a Domina and Use Lav Target H 00 Residential Dwelling Ne.,nittedigh 150 300 Sig Non-Residential Intensity Range Low Target High (in 000's Sq.Ft.) 2 120 200 t t7 Building Setback Storie or height in f Minimum Average Building Height 1 3 25' 40' MI-11 MH3 1-7 3-7 Building Height Range(stories) 3�, € wr Access Management Category o J F a ¢ ii 2 cc RI/RO Exhibit 11-28a ft? 9i'_ftit (iti 7�1x II-44 EUC PC DlsnicT Rcrul.�Tlo�s (612812018) MILLENIA Amendment- Project Description Dis,rRlc,r REGtii.tirto�-ss Atin Distc;,,GUIDELINES District 2 - Table of Requirements Proposed Oominant Land Use d Low High Residential Dwelling Units Permitted 273 273 Non-Residential intensity Range Low High (in Ows Sq.Ft.) 2 2 Refer to FBC 04.05 for Intensity`Transfer provisions Building Setback District MH-1 MH-3 Height(Stories) 1 3 Minimum Average Building Height Residential 25 35 Height(Feet) Non-Residential 25 40 Hei ht(Feet) t-7 3-7 Building Height Range(stories) N N CC C 7 N -o Access Management Category z' J ; a Ri/RO Exhibit I1-28a (6'97'a6II6) (6/223/118) 11-44 EUC PC DISTRICT REGLJL*,Tums (6/28/2018) MILLENIA Amendment- Project Description DIsTRicr Ri-GULATIQNS AND DF�I(.;N GUIDELINES District ,3 - Table of Requirements Adopted a a Domi t Land Use Cr Low Target. Wigh Residential DwellingNPermitted 150 arg lig F -Residential Intensity Range Low Target High Wt7s Sq.Ft.) 10 50 250 Building Setback Stories or height in feet Minimum Average Building Height 3 5 (Refer to Section 03.09.002b vi 40' 70' for exceptions) MH3 MH5 2-7 312 Building Height Range(stories) g � Access Management Category 0 j s< a a z Exhibit 11-30a Note: Refer to Exhibit "Pedestrian Corridors" for widths and locations (8,9x2016)(1/17/18) II-48 EUC PC DISTRICT RFc;Ul1%TIONs (6/28/2018) MILLENIA Amendment- Project Description Dm,rRicr RrGtA.A*rioN'S AND DliSlci\c IADII.IN S District 3 - Table of Requirements Proposed A Dominant Land Use Lary High Residential Dwelling Units Permitted 150 475 Non-Residential Intensity Range Low High (in 00o's Sq.Ft.} 2 5 Refer to FBC 04.05 for Intensity Transfer provisions. 0'-5' 0'710' Building Setback District MH-3 MH-4. Height(Stories) 3 4 Minimum Average Building Height Residential (f2eder to Exhibit 111-49 ror eateptions) Height(Feet) 35 40 on- esidentia 40 50 Height(Feet) 2.7 3.12 E ding Height Range(stories) � o c '9 Aaess Management Category o o ¢ o a s Exhibit]i-30a Note: Refer to Exhibit"Pedestrian Corridors" for widths and locations- (6L)3/18) - -11-48 ocations(Gj?3/IS} -II-48 BUC FC.DISTRICTRt eUi.A'l'l NS (612812018) MILLENIA Amendment- Project Description DISTRICT REGULATIONS AND DESIGN GUIDELINIiS District 3 Reuirements Eastern Gateway Neigh orhood District Adopted 3-story minimum fronting on'D'street 1 v Y Refer also to exceptions in Chapter 03.09.002b vi, herein for Lot 11,and Exhibit III for additional requirements. N Lot 11 �\ 5 A Lot 10 t MH3 MH5 Lot 13 MH5 • Lot 19 MHS Y. �\ Note: Referto entire SPA and FBC Ji--_A for complete requirements and how �i ��'� Key Map to apply those specified on this exhibit. Exhibit II-30b (W3r2016)(4 12/18) It-49 EUC PC DISTRICT R-61-11 ATIdNS (6/28/2018) MILLENIA Amendment- Project Description DISTRICT REGULATIONS AND DESIGN GUIDELINES District 3 Requirements Eastern Gateway Neighborhood District Proposed 3-story minimum fronting on`D'.streetr\\1 4 Refer also,to exceptions YYY" in Chapter 03.09.002b vi, herein for Lot 11,and Exhibit III-49 for additional requirements. Lot 11 \ x� Lot 10 MH3 a o� MH4 ' •< Lot 13. -MH5 M H 4 t Lot 19 r ,M H 5r !��` MH4 ` �l�t•� hyo/��/_ Note: Refer to entire SPA and FBC �I for com /ete re uire nests and how ~� P. 9 Key Map to appty those specified on this exhibit, "a E • Exhibit I1-30b f 2616j(1117/18) II-49 EUC PC DIs,micr Rl cwl-ATIONs (6/28/2018) MILLENIA Amendment- Project Description DIS'rRICr REGULATIONS AND DISIGN GUIDELINH District 8 - Table of Requirements Adopted Domin Land Use m tY Low Target High Residential Dwelling Permitted300 500 700 Non-Residential Intensity Rang Low Target High (in 000's Sq.Fl.) 2 50 200 Building Setback 0'-10' Sto or hei tin t Minimum Average Building Height ` 1 3 25' 40' MH1 MH3 1-7 3-12 Building Height Range(stories) m Access Management Category 9 J Exhibit II=32a (8,-'9,-'2016J(1/17/18) II-52 EUC PC DISTRICT R13Glil.A"I-IONS (6/28/2018) MILLENIA Amendment- Project Description DisTRic-r RGGiILATIONSAM)Dcsl(;N Gun)l:l.tNis District 8 - 'Table of Requirements Proposed .c. a Dominant Land Use Low High Residential Dwelling Units Permitted Low 253 Noh-Residential Intensity Ran& Law High. (in000's Sq.Ft.) 2 2 Refer to FBC 04.05 for Intensity Transfer provisions Building Setback District MHA MH-3 Height(Stories) 1 3 Minimum Average Building Height Residential 25 35 Height(Feet) Non-Residential 25 40 Height(Feet) 1-7 3.12 Building Height Range(stories) N . N Access Management Category J Exhibit I1-32a (W'-� (6/)311s) II-52 EUC PC DIsTRIcr RrcuI-ATI RNs (6/28/2018) MILLENIA Amendment- Project Description DISTRICT R1iGULATIONS AND Di:SIGN ouwrEuNES District 9 - Table of Requirements Adopted 5 a Domi t Land Use m Cr Low Target High Residential Dwelli nits Permitted 130 500 650 Non-Residential Intensity R\ Low Target High (n 000's Sq.Ft.) 2 45 100 0'-5 0'-1Ur 0.15'+ Building Setback Stories height in feet - Minimum Average Building Height 1 3 5 25' 4 70' MH1 MH3 MH5 1-7 2-7 5- Building Height Range(stories) o 91 8q Access Management Category � Z m � �Y Mote: Rotor to Exhibit,'Pedestrian Corridors'(or widths and loco(ions. Exhibit I1-34a (Ul7/tsj II-56 EUC PC DisTRIct,Ri:Gt3l ATloxs (6/28/2018) MILLENIA Amendment- Project Description DisrRicn'Rl'GlJl-,aruaNNS ANN)DGSIGI cutnEl-tNrS District. 9 Table of Requirements Proposed a Dorninant Land Use e: Low High ' Residential Dwelling Units Permitted 130 350 Non-Residential jntensity Range Low High (in 000's Sq:Ft.) 0 5 Refer to FBC 04.05 for Intensity Transfer provisions 0'-5' .6-1a 0-15'+ Building Setback District MH-1 MH-3 MH-4 Height(Stories) 1 3 4 Minimum Average Building Height Residential 25 35 45 Height(Feet) Non-Residential: 25 40 50 Height(Feet) _ 1-7 3-12 Building Height'Range(stories} N N � N cc Access Management Category J a a CO Note: Refer to ExhiNt,'Poolosth in Corridors'for moths and locations. Refer to Section 03.'08:002 b(vi)(6)for gots 23 8 24 Exhibit H-34a. (6/23/18) 1I-56 EUC PC DISTRic't'RE(;w A'no\, ti. (6/28/2018) MILLENIA Amendment- Project Description Elmmicr Rmul.ArloNs ASD DESIGN cutDF INES District 9 Requirements Central Southern All Neighborhood District Jf t ✓, =� Adopted s, Key Map J 5-11 thminimum helghi for ese two blocks _ i Lot 23 ? Lot 24 MH5 MH5 .Park- MHi . Lot 26 MH3 Lot 25 MH3 Note: Refer to entire SPA and FBC for complete requirements and how to apply those specified on this exhibit. Exhibit 34B (8,4,'2016) (4/12/118) II-57 EUC PC DisTkici,Rt:cui x-rtoi\s (6/28/2018) MILLENIA Amendment- Project Description DlsTaicr,Rr_clll,�TIONS Alt?DESIGN GUIDELINES - District 9 Requirements �°s_ Central Southern 0 x 1 Neighborhood District Proposed L ' '4..'��,.••--"�,�;'�� �� �,` Lots 23&.24 heights may be,blended. tit , l with the heights of lots 17&18 to the tw north as a comprehensive plan. Refer ?, to Section 03.09.002 b vi 6 for details. S„ ' • Key�Map 5-sto minimum M- Lot 23 -MH5- Lot 24 MH4 "K �i -MH5- MH4 Parke M H 1'-, 1 Lot 26 � r MH3 Lot 25 MH3 Note: 'Refer to entire SPA and.FBC for complete requirements and how to apply those speciruid on this exhibit. :Exhibit 34B JW9,=2016j(1/22/18) 11-57 EUCPCDltirxlc'I•REGULATIONS (6/28/2018) MILLENIA Amendment- Project Description DI$TRICP REGUI-ATIONS AND DI:sIGN GUIDELINES District 10 - Table of Requirements Adopted Dominant\d Use m Low Target High [Residential Dwelling Units fitted 200 200 450 Non-Residential Intensity Range Low Target High (in OO(Ys Sq.Ft.) 2 150 200 0- 0'-10' 0-15'+ Building Setback Sto or height AlLt Minimum Average Building Height 1 3 N7O Mote:The minimum building height 25' 40' in Lot 27 is 3-story MH1 MH3 MHS 1-7 1 2-7 3-12 Building Height Range(stories) g Access Management Category o a it E 7\a Z J m C Exhibit 11-36a II-60 EUC PC DisTRICT REGULATIONS (6/28/2018) MILLENIA Amendment- Project Description D17RlCI'�Rt:C;[ t A['kJ yS Anka DiSw,A Cit311)1:1.1'\►is District 10 - Table of Requirements Proposed F p Dominant land Use- a ce Low High Residential Dwelling Units Permitted 230 300 Non-Residential Intensity Range Low High (in ti's Sq..Ft.) 0 10 Refer to FBC 04.05.for Intensity Transfer provisions a-51 &-t0' 0-15+ Building Setback District MH-1 MH-3 MH-4 tieigtq,tStoriesd 1 3 4 Minimum Average Building Height Residential 25 35' 45 Height(Feet) Non-Residential 25 40 50 Height Feet 1-7 2-7 3-12 Building Height Range(stories) -- 6 Access Management Category a a z m a Exhibit 1I-36a (8. ,'91'2616) (6i23/18) IT-6Q ELIC PC Di57`tttc I'Rt;c;ttt�a't'tUNs (6/28/2018) MILLENIA Amendment-Project Description DISTRICT RrculivrIONS ANi)DESIGN GUIDEI-INEs ;tt � -. : District 10 Requirements ��_ `} Southeastern Neighborhood District Adopted Key Map Minimum 3-story building fronting. !� on"D"�treet. Refer also to exceptions in Chapter vi, herein for Lotof 21 21 and Minimum Average Building i, Height,Exhibit IIIA9 for Lot 21 additional requirements. l% MH3 , Lot 22 MHS (Park Lot 27 _MH1 MH3 Minimum 3-story building height Note: Refer to entire SPA and FBC for complete requirements and how to apply those specified on this exhibit. Exhibit H-36b (W49720 1(Y)(4/12/18) 11-61 EUCPCDISTRICTREGUI�NTIoxs (6/28/2018) MILLENIA Amendment- Project Description MILLENIA Amendment-Project Description.-Attachment"A Dwriucr Rw.UJ.ArIoNs AND DirsldN GUIDEUNCs A, ... District 10 Requirements =€ y ' : Southeastern Neighborhood District 'I 'q Proposed :l Key Mao Minimum 3-story s buildin s fronting. +� 4 r on.D' treet. Refer also to exceptions in Chapter 03.09.002b vi, herein for Lot 21 and Minimum Average Building J Height,Exhibit 18-49 for �✓ �" " LOt21addiWnal requirements, X11 MM3 .Lot 22 4Y CD x � „K, Park Lot 27 N1H1 �: lz MH3 Minimum 3-story building height ' Qat Note: Refer to entire SPA and FBC for complete requirements and how to apply those specified on this,exhibit. Exhibit II-36b (8f9/2016)(1/17,98) JI-61 EUC PC Dlsrtticr Ri GUt.n i"IONS (212312018) (6/2812018) MILLENIA Amendment- Project Description GLOI3A1,REGULATIONS AND DESIGN PROVISIONS (d) Along the "F" Street frontage of lot 11, to enhance the urban appearance and to provide a transition to the 3-story buildings of the''D" Street frontage; (4) All 2-story buildings fronting internal streets and main pedestrian corridors,such as along the BRT lane,shall feature high quality urban architecture in accordance with the applicable District Design Guidelines and Design Regulations,Residential,Buildin;Typologies and Section 63.11.0.000-Architectural Design Guidelines of the EUC Form Based Code. (5) All building heights shall be determined in accordance with Section 03.09.002 of this Form Based Code. (6) Provision for heig=ht district blending: As shown on Exhibit 1-4, lot numbers 17 and 24 are west of the Regional Trail south ofNletro Park, and lot numbers 18 and 23.are east of the Regional Trail. Lots 17 and 24 are desi`inated 3-story and 4-story_ respectively..Lots 18 and 23 are also deswriated 3-story and 4- story respectively. The 3-story and 4- story height districts for lots 17 and 24 may be blended as a mix of 3 and 4 story buildings, all 3-story, or all 4-story, providing they are approved as a comprehensive plan for both lots. This height determination shall be as approved during Design Review and shall be based on the overall design meeting the intended urban character rather than height as the sole deswil determinant. This height district flexibility is also permitted for lots 18 and 23). Notwithstanding this provision for height blending,covered decks on 3-story buildinus will not be counted as a story for any of these lots. Additionally, Lots 23 and 24 shall be limited to a minimum building heights of 3-stories. (6/23/181) III-68 I EUC PC DusTR[c r REGULATIONS (6128/2018) MILLENIA Amendment- Project Description GLC)[aALRIiGU1ATIp,SAillDt:St(r1,PROVISIONS Building Height Determinants Variations & Design Considerations Stepped down building'heights, creates form and interest to overatt Varying heights and vertical buitdirg. color changes emphasizes height and adds interest Ir�1 v Four stories with varying heights add interest. Where a building features muttiiple heights,the dominant buitding mass(>500b)shalt provide the Keightmeasurement forheight averaging. A. vc V p t C r a v: O C - Q 4 Note: This exhibit is an artist's conception that only Exhibit III-48a represents ono of many dosign solutions that would be consistent with the intended vision tot Millonia. Rater to Section 03.09.002 b vi(6)-for-certain exceptions on covered root docks. 'II1-68a EUC.PC Drs ruic~r:Rt rtat,�'rt(a 5 (6/28/2018) MILLENIA Amendment-Project Description G1.0IIAI.REGULATIONS A, DESIGN PROVISIONS Building Height & Stories Regulatory References Average Building Height C\/&4C 19.04.038 FBC 03.09.002 and FBC Exhibit 111-48 7 CO Cn CO �CO C t,cr, 0 A: I _ 5-Story Chelsea Product 4-Story Product Building Height FBC.Exhibit 11149 establishes Minimum Building Height. It must meet either the minimum height feet or stories. CVMC 19.04.276 8 19.04.036 and FBC 01.05.017 o QL 0 c C LL I %f O U Note: This exhibit is an artist's conception that only represents one ofmany design solutions that would be consistent with the intended vision for Ibtittenia. Building Stories Refer to Section 03.09.002 b vi(6)for certain exceptions on covered roof decks. Exhibit 11I48b (5/15/18) 111-68b EUC PC Dis-rRICr REGULATIONS (612812018) MILLENIA Amendment- Project Description / DislRtC 1`MOUt.ATION$AND DESIGN(it11DGt.INIS a _ i ads O --L•.ZL - .L•Al lAt �d-b p—= �.C/) TW (S'S 16 & D 4 •� � � `_'� It , n � � j � ods t I II , z or aI � t { I :tSLJEll 11 -9 M�'.' E-E 1_ D m. :r Sol ® �L P le .U) $\I * 4 ax ! ..Exhibit III-48c (6/2 S/18) III-68c EUCPC Dts tRIC r RrcIJiAi tens (6/28/2018) MILLENIA Amendment- Project Description Gr_rntAL RHGULATIONS ANTD DiskN PROVISIONS Regulating Plan Minimum Average Building Heights JJ Adopted Minimum Atrortajd Buildift=stelYht' 3 4 Nt Y c t 25 PI It 'e 2 35 f ! ! q 3 40 S � 70 VL m t r 15. rot _ Y 'Must meet either stories or feet ? 2 S_ exceptha tt t-stom ry buildings ust be a minimum of 25'in height. y 23 P3 18 `,S Pay ZT" P4 P8 ~ - fa- 28 ` Other Height Standa � S-$:o(:aG,itrnuf+>.t4(hi ftonC{ef(tojKta2 ttreti S.We s cis Um ta,rlwuu of tam wn tr4w or tisk, �� Sueei. Notes• Potcntid svww bu:ioet,venin toes r,o:4ctw Into hcathi Icooic nnw."',e:esfk7no anxechWAS d<sq,rawescrrJa+n C b Spew bcaxo rxe+ii^f umaa•.VM 1.or oro.w4 adwsss:SPKW mfr"Ueai teat ".'d<a:TKai and mwmiah.to Create ® s•s;wy l s w t^is„rich-tft d—I"huufs a dw Kti e a ttrwars Wpm rid:saoar<s at•Orar:CtG adorns w s:raet came., y<*t+On+si:<n<`g,4 ti+ntRsf<UOhs, Res Cohe<p:w Ptar.Ct7axt an miir .Mrape he44 br exn detr,ct nda<atw horbe a hoKed rOhiwzm J uerment R tx+Ktwt<n+< Z n:d CJ}aa.4 Ones rot fsiaatah 2»rnrsar,,w rtsa.r:+rn neiprsts,ir,dtAQnsf • • too 2,rlktt the wiM v"UW etfrnents to raid a CWAk whn aAtrps w ot,_te tram h mY'arsah serape re;prs so"as 2,e&.,"as swtne 9h.Cs district it m7?42i,e0. Sstory roof ene.CU.—0.m P+tta 01 olaro.y _ The rI<rage he'rytts k6.40 Wr ;w4m 2.mauv.Wf emwn s<sama Orsi:) 3. stra:Cr<a w accessory strusxes,Rete+to C,e un a Co chax<r fw aedaoew e,,tsv:ioh X4 me-cat of cautta^beig" a. Pte"aad to t:nacrer M-for"a*r and r.+is. moom rsigm atV4_*S fw ea ft strew.frwumfe- - x Re4r abo fo e.cetY.ons i,Uasaer O3 G2.022tr N.tecen, Urban Design:RTKL . • . Eastern Urban Center OnifLo>d PRNVVng CHLAA visrA OTAY RANCH 121 s 6 Exhibit III-49 0V 13i2+ET)(1/17/18) III-69 EUC PC DISTRIci,REGULATIONS (612812018) MILLENIA Amendment- Project Description GLOBAI.Ri-xiiji-Wrlf)i;S AND DF--SI ii\,PR0VISI0NS Regulating Room Minimum Average Building Heights L-j Proposed 3 l j Minimum Average_Building Height Districts' o, Pt Stories Heighfin Feet -. Residential Non•restdential tae ' 25 25 A� 2 30 :35 a � 45 50 � 4 y a, 55 70 Must me6i either stories or building`height in P vJMP3 4 ja z14-1 foot,oxcept.that 1-story buildings,must be a 1 _ minimum of 25'in height. PS t 27 PS ti y. d° fi Other Height Standards' E26 21 tot ID Number trefece"o to Section 03.04.002 b.vi;61 Locations where taller buildings are appropriate. Notes: ` 0 0 3-Story minimum height fronting 1. Iconic Architecture: building architectural,design representational of its adjacent streets. special location or_prominent address:special architectural features; . treatment and materials,to,adate a distinctive architectural facade and Buildings ori these lots may be feature at prominent address or street corner, 7: higher,than those on Main Street 2. This conceptual plan illustrates the minimum average height for each t Story Retail permated fronting district indicated at full buildout. It does not establish the minimum or ® the park,tRefer to Note 6) or maximum heights. I individual buildings may deviate from the minimum average height so long as the overall average within the district is maintained. potential School location,which 3. The average heights include parking within the building.but excludes boos not height into average ?9 9 P 9 .� g building height wtwtatrons, separate parking structures or accessary structures. Refer to the text in this chapter for additional explanation and methods of calculating height. g °' 3.story buildings or buildings with enhanced ventral features to 4. Refer atso'to chapter 02 for the minimum-and maximum building height emphasize height at intersections: standards for each street frontage. Provide enhanced architectural eoeeesoa treatment&punctuate the top 5. Refer also to Exceptions'in Chapter 0.3.09.026 vi,herein, building line with vertical eientents to avoid a continuous 2 story roof 6, Retail fronting Park P-3 need not satisfy the building height in feet and fine(Refer atw to chapter os,o9.o7b v+) shall be excluded from the building height averaging calculations, 7. Refer also to the Tables of Requirements for more height regulations. MY AiflenBa Cint Lond Plonfwtg �-r «y.e.em u.rr 'li CHULAVISrA ®"TAY RANCH -4 io 8 Exiiibit 111-49 0 2�zt E)tfr}(6/20118) 111-69 EUC PC Dfs I-Ric'I Rf.cit)t.,N rites (6/28/2018) MILLENIA Amendment- Project Description I Regulating Plan 21 Building Setbacks W�tom •.�=: Adopted 5 CV �� L �fes. t � •G n Ft 0'setback 0'-5`setback 0'-10'setback 0'-15'+setback Note:Setbacks shall be measured from the street right-of-way or property line. Refer to text for additional description of setback standards. Urban Design:RTKL ••. Eastern Urban Center OmiLorxJ ening CHULA or OTAY RANCH L.J Exhibit III-52 (8/19;iM 165(5/9/17) EUC PC Dis'ixic't'Ri,cirt,TIONS III-75 (6/28/2018) MILLENIA Amendment- Project Description Regulating Plan Building Setbacks &ro Road Proposed `5 a t, t Change from 0'to 1 0'S' � y O'setback 0'-5'setback 0'-10'setback 0'-15'*setback Note:Setbacks shall be measured from the street right-ol-way or proporly line. Refer to text toraddilonal description of sotback standards. Urban Design:RTKL . Eastern Urban Center 04-iffLand Planning CHULLA OF OTAY RANCH!2�� 1016017 Exhibit I11-52 (-WW-2016}(713 1/17) EUC PC Dtsnier RrGULATIONS II1-75 (6/28/2018) MILLENIA Amendment- Project Description LEGEND i - curb - - Street i ( property line € t } building facade j "_ setback area t J 15'+ Setbacks STRUCTURE 15-SETBACW PEDEST, CORRIDOR Exhibit III-54 b. Exceptions: The Building Setbacks Map, Exhibit III-52, conceptually presents average building setbacks at full build-out- Exceptions or deviations from this diagram may be accommodated through the design review process. The following conditions will be considered for an exception: i. Building recessions or projections to accommodate iconic architectural elements consistent with locations specified in the urban design diagrams. Ii. Building forecourts, recessed building and shop entries,"or recessions to accommodate outdoor dining (especially at locations identified in the urban design diagrams) provided that these recessions do not extend across a majority of the building facade, and no more than 30% of the building facade where the .urban design diagram specifies an active ground floor within the Main Street District. iii. Other minor facade modulations that create building interest providing the projection or recession is not in excess of three(3') feet. This is not intended to limit canopies,awnings, balconies, or similar features. iv. Minor deviations to accommodate a straight wall or a curving roadway, provided there is a consistent building edge that approximates-the setback line to the extent feasible, while allowing for other exceptions as.noted herein. V. Deviations to highlight or differentiate a civic or landmark / iconic building,provided that this does not amount to more than one exception per block face,typically associated with a public plaza. Vi. Non-typical setbacks conditions described under Building Placement Typologies, including: (1) building setbacks to accommodate a public plaza; (2) commercial setbacks along arterials and perimeter four-lane roads that require auto-oriented visibility and access,'allowing parking lots with a landscape buffer fronting the street' (3) breaks in the building wall to accommodate occasional .mid-block paseos and passages. vii. Setback deviations as necessary to accommodate slopes or grade differences along the street or buildin<L setback line, and unique operational characteristics (queuing, access or other factors) which preclude them from meeting setbacks. (18r'9=2 6 16)(512 8118) I:UC PC DISTRICT RrGULATIONS III-77 (6/28/2018) MILLENIA Amendment- Project Description AMMINIs1RA,r1C)N specified in Chapter 02,herein; iii. That the project is otherwise consistent with the character description and design vision (Chapter 02) for the.district in which the proposed project is located; iv. That the project applicant has received a recommendation for approval of the intensity transfer from the Mosler Developer,and written approval from all property owners that would have any change in their intensity. 04.04.003 Site Plan and Architectural Review: Site Plan and Architectural Review shall include those requirements specified in Chapter 19.14.420 el. seq. CVMC. 04.05.000 Intensity Transfers 04.05.001 Purpose: Thepurpose and intent of the Eastern Urban Center is to create a vibrant mixed use center senting Otay Ranch and surrounding areas in Eastern Chula Vista. The Site UtiI1zation,Plan provides a range of residential and non-residential intensities in ten districts,which provide some latitude in the proportion of residential and non- residential uses intended for the VIC. There may be development proposals where the intended character and purpose of the I:UC. can be maintained, yet result in inconsistencies with the total intensity established for a particular district,or for the total intensity of all"districts. To provide for these instances,the following regulations are established to permit and regulate these transfers of intensity. E%ery pi eject,other b c dist,ictc 04.05.002 Transfers Development within the Intensity Range of a District Any development within a District's intensity range is permitted .and shall be considered consistent with the intended character for that district. As projects are approved,during Design Review,their intensity shall be administratively entered on the itionitorin-Tables provided for in Chapter V. Unless a proposed ptoject"is exactly con.sistent�v ith t! ty Show 1!011 tileSite Utilization Plan, a Isfel is Mquiled. ff it is vVithill tile intensity,b irtn" b es foi intensity indicated,then it shall be assunied to be consistent with interi�ed ... thisl the Z6,iing _ is Subject tv t v (s�=2e t6)(6/1 8/18) IV-12 (612812018) MILLENIA Amendment- Project Description ADMINISTRATION fbilotving findings* . �HICIL HIC tiansfe, maintains tile intended inixed use chaincte. of tile EU61 that mould have any cliange in theit 04.05.003 Transfers of Intensity Between Districts There are two provisions for transfers that exceed the high end of a District's range and one provision for development below the low end of a District's range, as follows: a. Development that exceeds the high end of a District's range by 10%. Development may be administratively approved up to 10% above the high end of the District's ranee by a corresponding equal reduction in another district b. Development that exceeds the high end of a District's ranee by greater than 10%may be approved by the Zoning Administrator as an administrative matter. The Zoning Administrator approval shall be based oil the following, findings: D h end oFaity district's intensity i2inge may be appiaved by the Zoning Administinto,as nit c C g Tdingr L. That the transfer maintains the intended mixed use character of the EUC; ii. That the transfer is consistent with the urban design concepts and the district principles outlined in the FBC; iii. That a corresponding increase or decrease in another district is included in the proposed transfer so that overall SPA intensities will not be exceeded or reduced; iv. That the project applicant has provided supporting technical studies, to the (8,9;'2e16)(6/18/18) IV-12b (6/28/2018) MILLENIA Amendment- Project Description ADMINiSIRATION satisfaction of the Zoning Administrator,that indicate adequate infrastructure will exist to support the intensity transfer; V. That the project applicant has agreed to provide any necessary amended documents reflecting the intensity transfer for the public record; and, vi. That the project applicant has received a recommendation for approval of the intensity transfer from the Maser Developer, and written approval from all property owners that would have a change in their intensity. C. The low end of aDistrict's range shall be considered the itlininuun level of development which is acceptable within a particular district, with only one exception. That exception is in District 4. Initial development in District 4 may be approved with an initial development of 500 KSF, providing an ultimate block plan is approved demonstrating the low end of District 4 (800 KSF)can be achieved. 04.05.004 Application and Review.Process for Intensity Transfers The application shall be made to the Zoning Administrator by written request together with supporting documentation, a fee or deposit as in accordance with the City fee schedule,along with an agreement to pay any additional costs that may be required to review the application. a. The applicant shall be required to submit twenty-four sets.of.the following items,the receipt of which shall constitute a complete application: i. Written project description with statistics adequately indicating the scope of the intensity transfer from and to.which planning area; ii. A strikeout underline version of any text,table,or exhibit from the complete SPA documents that will be affected by the intensity transfer; ill. Written approval of the transfer from the Master Developer; iv. Written statement(s) from professionals indicating that the transfer will not exceed the existing and planned infrastructure; V. Written statement,and/or applicable exhibits demonstrating compliance with applicable required EIR mitigation measures, and SPA and subdivision conditions of approval; tt}i9Ntlt6j(6/18/18) IV-12c (6/28/2018) MILLENIA Amendment- Project Description Adopted ' N b Z Z a b v, c O 0 0 0 0 0 .0 0 C. 0 0 m CO N E C F � C C y _ O O O O O O O O O O L C a1 � 0 F L a rn Leo c - W , b O a 3 •'�'� ? D b T T T T T T T T T T C o b m CL `� n m A CD m C d CO c0 c —> �. C ba •y ML b � o O n o 0 0 0 C. 0 0 0 0 0 !4 N �mti3 C1 u 0 0 N CD C m E � a pp pp O p O O N N y = a> CO n to v c C. b c c b a 1 V C^ N O N C> N a E- u b 'o a 0 0 0 0 0 ,� J cc y m ea y Vl y N N tR N -Q y ,O 0. X 0 0 5 _V 0 0 Q Z Q mdcc f6 N E = >.s QI L 0N y 0 T 3 Q m N 23 0 b j a �-_' 3 O a' m b !O a Z . zis b c b b z � $ c� c _ Z m sn W W =3 -x E .M �S b N W 0D z z m MO 'M w v) vo cn Exhibit V-.l (3-,15,435(5/9117) EUC PC Dis7Rici,Rr_GUi-ATra`ts V-2 (6/28/2018) NILENG Amendment- m%etDsrplo . Proposed m .k f E k0 � @ CL \ � ± � 2 � 2 : ._ CO % &� / / k CL � ± . \ k � w e f \ \ a t 3 ? C Cn Sp r W R / G S 27 / C M 9 « 0 (n ^ 0) ~ ƒ COCr A 6Cli \ o Cl. 7 7 . � / / / a. o f 5 6 / 2 % � § f9 6 % ± $ t 2 \ a E� X a o # « o e o@ » 2 CM ® . 0 ± $ ? CL 2 �A } . 2 ƒ ƒ S m 2 # . z :j k `$. . ƒ � = 0 k Q \ \ \ $ - f' k _ N6 / . 6 k Exhibit Vl !%!b \UC P bisVic, I GULA-11 m V3 ^ &12201& m±ENG Amendment- Projec!Description Adopted 0 ° CO I 2 § vi � ! ae $ e / { § 7 f _ ) f a o 0 0 0 0 C. r 0 0 \ e § ` 0 Cl 0 _ 0 0 0 C. 0 � § § – / kCL .g � £ « k91 -0 e21 Jƒ 2 f o 0 0 0 0 0 0 0 0 . 2 � < . G) N. 0 f - ci \J k a £ #. , t k ± ] � 2 / t $ \ k/ � / / �� ƒ }–2 /\ / 2 « 7 f = §. / / a u §5 z « CO #e £ ' &a W Exhibit ! , 35(5/9/17) EUC PC.DISTRICT Rloutkr axs V-3 @122016 MILLENIA Amendment- Project Description Proposed 0 Z V) � W 5 � C 0 .Q N LL V) 0C Cr t0 7E M @@O LL ,�,V d y (n LL N Q N j d CO D1 p p C) T� ��a _ �O V) y `+ (0 VI v Mn O y E N .d O) ,C> N 11') C) O O N LO OCL o c � t _ 7 NLn Q J W CD Z Gni O r 4 Ln tip O Q ,v 0 N N O -0 Q W O N O O M `�•- �o �' O Z Q w vi Vi Mn cu O vQ U Z r 0> n)(n Eo � .� c � v � a) ca Si o � U -M v, c m 0 � C) Cu a) rn N 0 m ,_ _ CL C = N >Z Z C .0 V C Z aJ Z M t° 7 W ( X 0 c J 0 Z Z CD 0 M w (U) U 6 fW cl� ` r CN M �! LO tD h. 00 Q> 4. .Lnr p Z Exhibit V-2 (3,'5k1)(6t 18%18 j NC PC Dis'ralc•e Ruitil-ATIOhs V-3 (6128/2018) MILLENIA Amendment- Project Description Adopted Community Purpose Facility Compliance Monitoring Program Updated as of: Signature of Zoning Administrator: Estimated Actual Units Actual CPF CPF Req'mt Land Use District et Units PersfDU Estimated CPF Req'd. Approved CPF Acres (Neighborhood) Es ated Factor Pop<rlalion (Acres: (Design Required Provided Satisfied 1.39/1000) Review) (Acres) (yes/no) Off-Site CPF Credit Transfer Previous Projects 9.34 Gateway Mixed 50 2. 129 0.18 0 0.00 0.00 yes Use District NW Neigh.Dist. 300 2.58 1111li, 774 1.08 0 0.00 0.00 yes NE Neigh.Dist. 400 2.5832 1.43 0 0.00 0.00 yes Business Dist. 1D0 2.58 258 0.36 0 0.00 0.00 1 yes Mixed Use Civic/ 200 2 58 516 0.72 0 0.00 0.00 yes Office Core Dist. Main Street Dist. 533 2.58 1375 1 0 0.00 0.00 yes E.Gateway Dist. 200 2.58 516 0.72 0 0.00 0.00 yes SW Neigh.Dist, 500 2.58 1290 1.79 0 0.00 0.00 yes .Central So.Neigh. 500 2.58 1290 1.79 0.00 0.00 yes Dist. SE Neigh.Dist. 200 2.58 516 0.72 0 0.00 0.00 yes Total 2,983 2.58 7,696 10.70 0 \Re�quiredpatking Excess(-Deficit) Notes: 1. The deficit may be satisfied by providing 1.35 acres of CPF land or an equivalent amountd use but g at the rate of 10.000 square feet of floor area per one acre of CPF land required(13,600 Sq. ng shall be provided for the CPF use in addition to the required floor area. 2. The population per dwelling units is based on the coefficient established by the Otay Ranch GOP. Exhibit V-3 (3/513)13)(5/9/17) EUC PC DISTRICT REGULATIONS V-4 (6/28/2018) MILLENIA Amendment- Project Description Proposed Community Purpose Facility Compliance Monitoring Program Updated as of'. :)f Zoning Administrator: Actual CPF Actual Units CPF Acres CPF Req'mt Land Use District Pers1DU Estimated Req'd. Approved Permitted Units Provided Satisfied (Neighborhood) Factor Population (Acres.- (Design 1.3911006) ReJiew) (credit) (yes/no) Off-Site CPF Credit Transfer from Previous Projects 9.34 1 Gateway Mixed Use 0-89 2.58 District 2 NE Neigh.Dist. 273-273 .2.58 3 Eastern Gateway 150-475 2.58 Neigh.Dist- 4 Business Dist. 0-225 2.58 Mixed Use Civicl 5 Office Core Dist, 0-300 2.5$ 6 Main Street Dist. 100-601 2.58 7 Eastern Gateway 100-117 2.58 Dist, $ SW Neigh.Dist. 253-253 2.58 9 Central So,Neigh. 130-350 2.58 Dist. 10 SE Neigh.Dista 230-300 2:58 Total 1,236-2,983 0 0.00 OM Notes: 1, The deficit may be satisfied by providing 1,36 acres of CPF land or an equivalent amount of floor area within a mixed use building at the rate of 10,000 square feet of floor area per one acre of CPF land required(13,600 Sq. Ft.total). Required parking shall be provided for the CPF use in addition to the required floor area. 2. The population per dwelling units is based on the coefficient established by the Olay Ranch GOP. Exhibit V-3 3)(6/1 X115) EUC PC DISTRiCr RrcuLATiONS V-4 (6/28/2018) Millenia Sectional Planning Area (SPA) Plan Public Facilities Finance Plan (PFFP) Supplemental PFFP for 2018 SPA Plan Amendment DRAFT June 28, 2018 Applicant: SLF IV - Millenia, LLC Meridian Development 9988 Hilbert Street, Suite 210 San Diego, CA 92131 Contact: Todd Galarneau 619-794-1204 tgalarneau@meridiandevelopment.com Prepared by.- Jay y:Jay Kniep Land Planning Contact: Jay Kniep 530-541-1817 jaykniep@cs.com APPROVED: Chula Vista City Council Resolution 2018-XXX TABLE OF CONTENTS Page I. OVERVIEW. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 H. PURPOSE.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 III. BASIS of the ANALYSIS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 IV. DEVELOPMENT PHASING.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 V. DEVELOPMENT IMPACT FEE PROGRAMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 VI. TRAFFIC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 VII. POLICE.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 VIII. FIRE &EMERGENCY MEDICAL SERVICES.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 IX. SCHOOLS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 X. LIBRARIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ! . . . . . . . . . . . . . . . . 8 XI. PARKS, TRAILS & OPEN SPACE.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 XII. WATER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . 9 XIII. SEWER.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 XIV. DRAINAGE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 XV. AIR QUALITY.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 XVI. CIVIC CENTER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 XVII. CORPORATION YARD.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 XVIII. OTHER PUBLIC FACILITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 XIX. FISCAL ANALYSIS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 XX. PUBLIC FACILITY FINANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 EXHIBIT LIST Page 1. Proposed Millenia Site Utilization Plan.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 TABLES 1. Revised Table B.6 Transportation DIF Schedule.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2. Revised Table B.7 Public Facilities Estimated DIF Fee Components.. . . . . . . . . . . . . 6 Millenia Supplemental PFFP I. OVERVIEW This Supplemental Public Facility Finance Plan(PFFP) addresses the public facility needs associated with the current amendment to the Millenia(previously known as the Eastern Urban Area or EUC) Sectional Planning Area(SPA) Plan. This PFFP has been prepared under the requirements of the City of Chula Vista's Growth Management Program and Chapter 9, Growth Management, of the Otay Ranch GDP. The preparation of a PFFP is required in conjunction with the preparation of the SPA Plan to ensure that the development of the project is consistent with the overall goals and policies of the City's General Plan, Growth Management Program, and the Otay Ranch GDP. This Supplemental Public Facility Finance Plan(Supplemental PFFP) addresses changes to the public facility needs associated with the Millenia SPA Plan Amendment. This Supplemental PFFP is based upon the project information provided in the Project Description for the Millenia SPA Plan amendment prepared by Cinti Land Planning dated June'18, 2018. The proposed amendment includes the following elements: 1. Elimination of the "target" land use intensity category. The amendment retains the adopted maximums of 2,983 residential units and 3.324 million square feet of commercial land uses and will allow, but not require, site development up to these maximums. 2. A revised Main Street concept focused on revisions to the quantity and distribution of commercial land uses in the Main Street District. 3. A reduction and blending of.height regulations for certain lots including-the-addition-of_ a four story height category. The adopted Millenia SPA Plan is currently being implemented with almost a dozen projects completed, under construction, approved, or in the Design Review phase of development. These projects include City parks, fire station and pedestrian bridge, a hotel, office, retail, and affordable, rental, mixed-use and for-sale residential, which cumulatively represent virtually every land use type contemplated in the plan. Seventy percent of the private development land has been contracted with merchant builders. Since the SPA Plan was first approved in.2009, it has been amended four times in response to changes in public and private influences and actual market experiences. The adopted Site Utilization Plan(SUP) included a maximum build for residential and non-residential development. The unusual feature of these standards was that the maximum appeared to also be the minimum. With this interpretation, any development at build-out that would not achieve the exact maximum build would be inconsistent with adopted plan. This provision is currently inhibiting implementation of the project. The proposed SPA Plan amendment corrects this by allowing a reduced intensity for build-out of the plan for both residential and commercial land uses. (06/28/18) 1 Millenia Supplemental PFFP The applicant, SLF IV—Millenia, LLC, is the owner and Master Developer of Millenia. The applicant has agreed to implement all the mitigation measures adopted in the certified EIR, even though the project build-out proposed by this amendment may be less than the maximum build allowed and which is the basis for the public facility capacities incorporated into the project. Because a reduced intensity project would be within the parameters of the impact assumptions of the approved project, and the applicant is not requesting relief from any of the approved mitigation measures, no new environmental analysis or technical facility analyses are necessary for this project. The infrastructure provided with the project is based on the maximum build permitted intensity of 3,324,000 square feet of non-residential uses and 2,983 dwelling units, notwithstanding the low-range build-out projections shown on the proposed Site Utilization Plan (Exhibit 1). Traffic, water, sewer, recycled water and storm drainage improvements will be built- out for the maximum build, as assessed in the original PFFP. Provision of population based facilities/services and impact fee payments will be determined by actual unit counts as the project is built-out. As noted above, development of Millenia is underway and much of the "backbone" infrastructure has been installed per the original PFFP as individual development sites have been prepared by the master developer for merchant builders. Because all of the public facility improvements and mitigation measures are unchanged from the original project approval, the scope of this Supplemental PFFP is limited. H. PURPOSE The purpose of all PFFPs in the City of Chula Vista is to implement the City's Growth Management Program and to meet the Chula Vista General Plan goals and objectives, specifically those within the Growth Management Element. The Growth Management Program ensures that development occurs only when the necessary public facilities and services exist or are provided concurrent with the demands of new development. The Growth Management Program requires a PFFP be prepared for every new development project which requires either a SPA Plan or tentative map approval. Similarly, amendments to a SPA Plan may require an amendment or supplement to the PFFP. The purpose of this Supplemental PFFP is to update and clarify the original 2009 PFFP to address changes to the project identified above. In the City of Chula Vista, the PFFP is intended to ensure adequate levels of service are achieved for all public services and facilities impacted by a project. It is understood that assumed growth projections and related public facilities needs are subject to a number of external factors, such as the local economy, the City's future land use approval decisions, etc. It is also understood that funding sources specified herein may change due to financing programs available in the future or requirements of either state or federal laws. It is intended that revisions to cost estimates and funding programs be handled as administrative revisions; whereas revisions to the facilities- driven growth phases are accomplished through an update process via an amendment or supplement to the PFFP. (06/28/18) 2 Millenia Supplemental PFFP III. BASIS of the ANALYSIS The key statistical change associated with the proposed amendment is the elimination of target intensities for build-out of the plan for both residential and commercial land uses. The proposed development statistics are provided in the Proposed Site Utilization Plan provided as Exhibit 1. Because the original adopted PFFP already analyzes the maximum build-out scenario, new analyses are not required for the proposed amendment. This document briefly summaries and updates the Millenia SPA PFFP topics. (06/28/18) 3 Millenia Supplemental PFFP Proposed Site Utilization Plan Area Eastern Urban Center Districts Acres Symbol Gateway Mixed use Commercial District 22.7 2 Northwestern Neighborhood to oki 13.2 3 Northeastern Neighborhood District 17.2 '4 — Business District 25.4 2 rJ Mixed Use CmuOtfxe Gore District 23.3 6 Main Street District 34.7 Eastern Gateway District 9.6 $ Southwestern Negrtbornooe District 12.5 y. 9Central Southern Neighborhood District 24.4 . 3101Southeastern Neighborhood District 23.6 Total* 206.6 Does not irU pemnerer arterior hoh"ys Jff l F 10 District Non-Resid.(000's Sq.Ft.)" Residential(DU's), Low High Low High 1 227 400 0 89 2 2 2 273 273 Potential Public Components 3 2 5 150 475 Park 4 800 1,900 0 225 Library 5 455 900 0 300 Q Fire Station 6 80 100 100 601 Potential Elementary School 7 0 0 100 117 ja CPF Site 8 2 2 253 253 9 0 1 5 130 350 Notes: 10 0 10 230 300 i.The Numeric Symbols do not represent Totals 1,568 3,324 1,236 2,983 phases. 2. The location of the public component symbols are conceptional only. 'Refer to FBC Section 04.05,for Intensity Transfer Provisions. . :. Millenia ti Land Planning taiu,vlsu, OTAY RANCH ��� L J 6/8/18 EXHIBIT 1 (06/28/18) 4 Millenia Supplemental PFFP IV. DEVELOPMENT PHASING The adopted Millenia SPA Plan is currently being implemented with almost a dozen projects completed, under construction, approved, or in the Design Review phase of development. These projects include City parks, fire station and pedestrian bridge, a hotel, office, retail, and affordable, rental, mixed-use and for-sale residential, which represents virtually every land use type contemplated in the plan. Seventy percent of the private development land has been contracted with merchant builders. The development of the Millenia SPA will continue to be implemented in four non-sequential phases as described in Conceptual Phasing Plan(Exhibit 5 of the original PFFP). Sequential phasing is frequently inaccurate because of unforeseen market changes or regulatory constraints. Therefore, the Millenia SPA Plan permits non-sequential phasing by imposing specific facilities requirements for each development increment regardless of which phase it is located. This will ensure that new Millenia SPA development is adequately served and City threshold standards are met. Construction.of the major on-site streets, which serve multiple phases, shall be phased according to the provisions of the original PFFP, including Table B.4 on page 22 of that document. V. DEVELOPMENT IMPACT FEE PROGRAMS The project must continue to comply with various development impact fee programs of the City of Chula Vista to cover the costs of certain.public-improvements and facilities included in those fee programs. These fee programs include the Transportation Development Impact Fee (TDIF), the Traffic Signal Participation fee, the Public Facilities Development Impact Fee (PFDIF), the Parkland Acquisition and Development In-Lieu(PAD) fee, the Millenia Pedestrian Bridge impact fee program and the applicable sewer fee programs - the Salt Creek and Poggi Canyon sewer basin fee programs and the sewer capacity charge fee. All impact fee rates are subject to annual adjustments and proposed development will be required to pay the fee in effect at the time of approval, or alternatively satisfy the public facility and improvement obligation per the adopted Millenia Development Agreement or Parks Agreement as provided for in the project approvals. The current(effective 10/2017) Transportation DIF Schedule is provided in Table B.6 below which updates the corresponding table in the original PFFP. The current Millenia Pedestrian Bridge DIF amounts are Single Family- $615.13 per DU and Multi Family- $456.10 per DU. (06/28/18) 5 Millenia Supplemental PFFP Revised Table 6.6 Transportation DIF Schedule Land Use Classification TDIF Rate Residential (Low) 0-6 dwelling units per gross $14,126 per DU Residential (Med.) 6.1-18 dwelling units per gross $11,300 per DU Residential (High) >18.1 dwelling units per gross $8,475 per DU Senior housing $5,650 per DU Residential mixed use >18 dwelling units per gross $5,650 per DU Commercial mixed use < 5 stories in height $226,016 per 20,000 sq. General commercial $226,016 per acre Regional commercial >60 acres or 800,000 sq. ft. $155,386 per acre High rise commercial >5 stories in height $395,528 per acre Office(acre) <5 stories in height $127,134 per acre Industrial (acre) $127,134 per acre 18-hole golf course $988,820 per acre Medical center $918,190 per acre The Public Facilities Development Impact Fee (PFDIF) is a separate development impact fee program to provide funds to improve a variety of city facilities which are impacted by additional growth. Both residential and non-residential development impact fees apply to the project. The current fee amounts applicable to additional development are presented in the updated Table B.7, Public Facilities DIF Components, below. Revised Table B.7 Public Facilities Estimated DIF Fee Components Component Single Family/DU Multi-Family/DU Commercial/Acre Industrial/Acre Civic Center $2,907 $2,754 $9,276 $2,931 Police $1,760 $1,901 $8,314 $1,793 Corporation Yard $472 $378 $8,038 $3,785 Libraries $1,671 $1,671 $0 $0 Fire Suppression $1,469 $1,057 $3,884 $773 GIS, Computers, Telecom & Records $0 $0 $0 $0 Management Administration $632 $598 $2,019 $638 Recreation $1,269 $1,269 $0 $0 Total/Residential Unit $10,180 $9,628 Total per Com'I/Ind. Ac. $31 531 $9,920 (06/28/18) 6 Millenia Supplemental PFFP As noted previously, the applicant has agreed to construct all the improvements and mitigation measures as identified in the original approval and thus no revised facility analysis is warranted as part of this supplement. VI. TRAFFIC The SPA amendment does not propose changes to the circulation element roadways serving the Project, including internal street cross sections and alignments. Since the maximum build scenario in the proposed amendment is within approximately 5% of the maximum intensities approved in the original SPA plan, the external trip distribution patterns to the surrounding roadway network, including roadway segments, intersections, and freeway segments, will be consistent with those identified with the original approval. The amended project will comply with the all the traffic-related requirements and mitigation measures associated with the original approval. VII. POLICE The demand for additional police services is based on the amount of new development in a project. The amended project generates a similar demand for police services as identified in the original PFFP. Therefore, the project must comply with the requirements identified in the original PFFP (2009 PFFP, Page 81), adjusted to actual unit counts and will be adequately served. VIII. FIRE and EMERGENCY MEDICAL SERVICES The demand for additional fire and emergency medical services is also based on the amount of new development. The amended project generates a similar demand for fire and medical emergency services as identified in the original PFFP. Therefore, the"project must comply with the requirements identified in the original PFFP (2009 PFFP, Page 85), adjusted to actual unit counts and will be adequately served. IX. SCHOOLS The amended project includes a potential elementary school site, consistent with the adopted SPA Plan. The amended project generates the same number of elementary, middle and high school students as identified in the original PFFP due to the same maximum build-out unit count. (06/28/18) 7 Millenia Supplemental PFFP The amended project must comply with the requirements identified in the original PFFP (2009 PFFP, Page 94). Consistent with these requirements, the master developer has entered into School Mitigation Agreements with both school districts and has formed Community Facilities District(CFD)18 for the Chula Vista Elementary School District and CFD 18 for the Sweetwater Union High School District. Neither of these school agreements, the school CFDs or any mitigation obligations will change with the amendment so the amended project will continue to be adequately served by schools. X. LIBRARIES The amended project includes a potential library site, consistent with the adopted SPA Plan. The demand for additional library facilities is based on the amount of new residential development. Similar to schools, the amended project generates the same demand for library services. Therefore, the amended project must comply with the requirements identified in the original PFFP (2009 PFFP, Page 98), adjusted to actual unit counts and will be adequately served. The library obligation is further defined in the Millenia Development Agreement. In February of 2016, the applicant and one of the applicant's merchant builders entered into a recorded agreement with the City to transfer the library obligation from the applicant to the merchant builder. The project's responsibilities regarding libraries will not change with the SPA amendment so the amended project will continue to be adequately served by libraries. XI. PARKS,TRAILS and OPEN SPACE The amended project includes public and private park sites, consistent with the adopted SPA Plan. The demand for additional parks is based on the amount of new residential development. The amended project generates the same demand for parks. Trails and open space within the Otay Ranch community are designated at the General Development Plan(GDP) and implemented within each SPA. The amended SPA includes all the required GDP components included in the adopted SPA Plan. Therefore, the amended project must comply with the requirements identified in the original PFFP (2009 PFFP, Page 111), adjusted to actual unit counts and will be adequately served. Consistent with those requirements, the master developer entered into an agreement entitled "Agreement Regarding Construction of Parks in a Portion of the Otay Ranch Eastern Urban Center" as part of the original entitlements. That agreement has been amended twice, once in 2015 and again in 2016. No further amendment to that agreement, which is based on a build-out of 2,983 residential units (but contemplates the possibility of fewer units), will be required to implement the proposed SPA amendment. (06/28/18) 8 Millenia Supplemental PFFP XII.WATER The demand for additional water and recycled water service is based on the amount of new development in a project. The amended project generates a similar demand for water and recycled water as identified in the original PFFP. Therefore, the project must comply with the requirements identified in the original PFFP (2009 PFFP, Page 121), adjusted to actual unit counts and will be adequately served. XIII. SEWER The demand for additional sewer service is based on the amount of new development in a project. The amended project generates a similar demand for sewer service as identified in the original PFFP. Therefore, the project must comply with the requirements identified in the original PFFP (2009 PFFP, Page 133-134), adjusted to actual unit counts and will be adequately served. XIV.DRAINAGE The need for additional drainage facilities is based on the amount of development(impervious surface) in a project. The developed area of the amended project is the same as that of the adopted SPA,hence the drainage needs of the amended project will be the same as the approved. Therefore, the amended project must comply with the requirements identified in the original PFFP (2009 PFFP, Pages 151-152). In addition, the amended project would continue to comply with all applicable rules and regulations including compliance with National Pollutant Discharge Elimination System (NPDES)permit requirements for urban runoff and stormwater discharge. Best Management Practices (BMPs) for design, treatment, and monitoring for stormwater quality would be implemented as required with respect to municipal and construction permits. XV.AIR QUALITY Air quality impacts associated with the adopted project were evaluated in the Air Quality Improvement Plan (AQIP)prepared and adopted with the original project approval. The primary factor in estimating ongoing emissions is the amount of vehicular traffic associated with the project and the amount of traffic is directly related to the amount of new development. The amended project would result in a similar level of development intensity. As a result, operational emissions (specifically those resulting from mobile sources) associated with the amended project would be similar to the prior analysis. Construction emissions would remain unchanged, because no change in the construction schedule or required construction equipment is anticipated. The (06/28/18) 9 Millenia Supplemental PFFP previous analyses remain applicable to the proposed project, and no additional mitigation measures would be required. The amended project must comply with the requirements in the original PFFP (2009 PFFP Pages 156). XVI. CIVIC CENTER Per the original PFFP, there are no adopted Threshold Standards for the Civic Center. The Public Facilities fee (see Section V. Development Impact Fee Programs) must be paid prior to the issuance of building permits, at the rate in effect at the time payment is made. XVII. CORPORATION YARD Per the original PFFP, there are no adopted Threshold Standards for the Corporation Yard. The Public Facilities fee (see Section V. Development Impact Fee Programs) must be paid prior to the issuance of building permits, at the rate in effect at the time payment is made. XVIII. OTHER PUBLIC FACILITIES Per the original PFFP, there are no adopted Threshold Standards other facilities which are part of the Public Facilities Development Impact Fee Program. The Public Facilities fee (see Section V. Development Impact Fee Programs) must be paid prior.to the issuance of building permits, at the rate in effect at the time payment is made. XIX. FISCAL ANALYSIS The Applicant will prepare an updated fiscal analysis for the amended project. XX. PUBLIC FACILITY FINANCE The amended project will utilize the same public facility finance mechanisms as the approved project. No changes are necessary to the original Public Facility Finance discussion. (06/28/18) 10 Pro Forma Advisors L►_' Report for: Millenia Fiscal Impact Analysis Chula Vista,CA Prepared for:SLF IV-Millenia, LLC Prepared by: Pro Forma Advisors, LLC, re+ep June 2018 PFAID: 10-808 Version: 10.0 Pro Forma Advisors,LLC Los Angeles T 310.616.5079 New York Metro T 203.604.9007 F 888.696.9716 www.ProFormaAdvisors.com Pro Forma Advisors LLC Table of Contents Introduction 1 Results 1 Project Description 4 1 P Model Inputs 5 Appendix 9 Proposed Amendment FIA Tables 9 Pro Forma Advisors,LLC PFAID:10-824.10 ? Pro Forma IM .Advisors LLC General Limiting Conditions Certain information included in this report contains forward-looking estimates,projections and/or statements. Pro Forma Advisors LLC has based these projections, estimates and/or statements on expected future events.These forward- looking items include statements that reflect our existing beliefs and knowledge regarding the operating environment, existing trends,existing plans,objectives,goals,expectations,anticipations,results of operations,future performance and business plans. Further,statements that include the words"may," "could," "should," "would," "believe," "expect," 'anticipate," 'estimate,' 'intend,' 'plan,""project,"or other words or expressions of similar meaning have been utilized.These statements reflect our judgment on the date they are made and we undertake no duty to update such statements in the future. No warranty or representation is made by Pro Forma Advisors that any of the projected values or results contained in this study will actually be achieved. Although we believe that the expectations in these reports are reasonable,any or all of the estimates or projections in this report may prove to be incorrect.To the extent possible,we have attempted to verify and confirm estimates and assumptions used in this analysis. However,some assumptions inevitably will not materialize as a result of inaccurate assumptions or as a consequence of known or unknown risks and uncertainties and unanticipated events and circumstances,which may occur. Consequently, actual results achieved during the period covered by our analysis will vary from our estimates and the variations may be material. As such, Pro Forma Advisors accepts no liability in relation to the estimates provided herein. In the production of this report, Pro Forma Advisors has served solely in the capacity of consultant and Pro Forma Advisors has not rendered any"expert"opinions and does not hold itself out as an"expert"(as the term"expert"is defined in Section 11 of the Securities Act of 1933). This report is not to be used in conjunction with any public or private offering of securities,and may not be relied upon with the express written consent of Pro Forma Advisors. This study is qualified in its entirety by,and should be considered in light of,these limitations,conditions,and considerations. Pro Forma Advisors,LLC PFAID:10-824.10 . Pro Forma Advisors LLC Introduction SLF IV-Millenia, LLC("Owner"or"Client")retained Pro Forma Advisors to evaluate the fiscal impacts of several build out scenarios for the approved project commonly referred to as"Millenia"and previously referred to as the Eastern Urban Center("EUC"),which is part of the Otay Ranch Master Planned Community located in the City of Chula Vista("City'). These build-out scenarios include the following: Proposed Amendment This scenario assumes the Millenia project continues to intensify over time and builds out to the maximum buildout under the proposed amendment which is 2,983 residential units and 3.1 million square feet of commercial uses.This scenario includes approximately 2.7 million square feet of office,395,000 square feet of commercial,a 135-room hotel and approximately 130,000 square feet of civic uses. 2009 Adopted Plan This scenario assumes the Millenia project builds out to the maximum buildout under the current entitlements of 2,983 residential units and 3.48 million square feet of commercial uses.This scenario includes approximately 2.0 million sf of office,980,000 square feet of commercial(including 160,000 square feet of civic and recreational uses),and two, 250- room hotels(500 rooms total). 2009 Adopted Plan with Reduced Hotel This scenario assumes the Millenia project builds out to the maximum buildout under the current entitlements but rather than two,250-room hotels,the project includes a single 135-room hotel similar to the proposed project. The approved entitlements allow a maximum buildout at 2,983 residential units and 3.48 million square feet of commercial uses. The prior fiscal impact study-prepared-as-part of the approved public facilities financing plan("PFFP") for Millenia evaluated the 2009 Adopted Plan scenario. Results The following analysis evaluates the fiscal impact of the various scenarios across a 30-year period, including build out that is projected to occur prior to Fiscal Year(FY)30. For the purposes of this analysis, net fiscal impacts refer to the fiscal revenues less the fiscal costs generated by the development. A positive net fiscal impact means that the fiscal revenues covers the costs generated by the development. Using the City's FIA Framework,the Proposed Amendment scenario would have a net positive revenue annual impact of approximately$740,000 in Year 10(FY 2027)that is expected to grow to approximately$2.4 million in an illustrative Year 20(FY 2037)and$5.4 million in an illustrative Year 30(FY 2047). Pro Forma Advisors,LLC Page 1 PFAID:10-824.10 r-- Pro Forma Advisors LLC Figure 1 - Net Fiscal Impact(Future Year Dollars) MmCD Total General Fund Revenues $ 6,868,374 $ 9,677,123 I $ 12,952,077 $ 235,912,249 $ 7,863,742 Total General Fund Expenditures $ 6,129,873 i $ 7,273,249 I $ 7,597,932 $ 177,466,660 $ 5,915,555 Projected Net Revenues/(Shortfall) 4s- 738,501 $ 2,403,874 $ 5,354,145 ( $ 58,445,589 I $ 1,948,186 Source:Pro ma Advisors and Gty of Cnda Vista In 2009, Economic Research Associates conducted a FIA for the approved EUC Specific Plan Area(SPA)that estimated a range of positive net fiscal impacts of the project under a different development program. Using the City's current FIA model,the net fiscal impact associated with the 2009 Adopted Plan scenario is presented below.A second analysis is also provided,for comparison purposes,with the 2009 Adopted Plan with Reduced Hotel. Figure 2- Net Fiscal Impact Comparison (Future Year Dollars) 512.010.000 -----'-_`- --'-------"--- 510.000.000------------_..---...--------------------._....------- o p 59.993.719 O� $7.709.985 58.000.000 - b.�---.- P c �b c* 56.000.000 -------.-_ .__._��.-..-.-,.—.__.__._-_..,.,.,.._-__-...-.-.._ .Fsa.s?='-.._...._.._.-_--...._._ �_--_..-_--$5.354.145 d� v e e o o e s S4.000.000 1 O o� oeecd� 52.000.000 J-__--...._.._.._ —_- .j ,. �..—__�.,__.--._--- ^r- FY SO FY FY FY -7 FY .-l' FY FY FY FY FY FY FY F' FY FY FY FY FY FY FY FY FY F' FY FY FY FI F' 2018 2019 2020 2021 2022 2023 2024 2025 2M 2027 2029 2029 2030 2031 2032 2033 2034 2035 2036 2037 2039 2039 2040 2041 2042 2043 2044 2045 2048 2047 .070.000) --_-_. --_-_._—_._ -------.--_.-.._ �F, y Ameixl a —2009 AP0,rXd?fan(135 ROOM ==2007 AP=W Plan 1500:—) Source:Economics Resea ch Associates;Pro Forma Ad\isors;City of Cndda Vista The purpose of including a scenario which assumes full buildout under the adopted plan but with a reduced number of hotel rooms was to illustrate the impact of the hotels and the Transient Occupancy Taxes(TOT)on the overall fiscal performance of the various alternatives.As noted by the Client,the single hotel currently planned is a direct consequence of City's decision to approve the construction of two new hotels,which total 300 rooms,in the Freeway Commercial SPA Plan amendment. If this direct competition,as well as the two new.hotels being located in the Eastlake Business Park, were known at the time of Millenia's entitlement,then it is likely that no hotels,or perhaps a single smaller hotel would have been included and theoretically modeled in the fiscal study. Another way to look at this is that the net fiscal revenue associated with the hotel rooms were not lost, but rather transferred to another location in the City. Consequently, due to the weight given to TOT in the City's current fiscal model as well as differences between the overall development program,specifically the additional reduction of housing and retail development,comparisons between the P 20 9 P Y 9 Proposed Amendment and either of the proposed plan scenarios are not appropriate.While still a different Pro Forma Advisors,LLC Paget PFAID:10-824.10 Pro Forma Advisors LLC development programs and assumptions regarding absorption,a comparison between the Proposed Amendment and the 2009 Adopted Plan with Reduced Hotel is a more direct comparison. Figure 3- Net Fiscal Impact of All Scenarios(Millions of Future Year Dollars) a 4 M Proposed Amendment(135 room hotel) Total General Fund Revenues $4.1 I $6.9 $7.8. $9.7 $11.1 $13.0 __.._._....-.__........._..........-------...._..............._-...........-_..A._...............-.......-._.__.j..._._....__-----.-__------ _._.___.._......__._..... Total General Fund Expenditures $3.1 I $6.1 $6.9 $7.3 $7.4 $7.6 Projected Net Revenues/(Shortfall) $1.0 $07 $0.8 � -!......-.......__....._..._._! _. 111 _-._.........__..,......_.-_-----.--__._.. 2009 Adopted Plan with Reduced Hotel(135 room hotel) ___...___....._.._..__._-------------- -----------................-.....-...:.:....:.:._...........--------------------. ---- ---- -___---------------- __............_......._...__..............................,....................._....... Total General Fund Revenues $2.4 $6.0 $9.9 $12.0 $13.8 $15.4 _..._....___..-.-......_--------..........._--__-._-...._------....._. --------------- _.........-._...._.._................... ,...._........................................................._..... Total General Fund Expenditures $2.1 $4.8 $7.2 $7.4 $7.6 $7.7 ___..._... - __ _ _ _ .. - _ - _� ------------------------_ .. _____.._ _. .._...------- -___.. .............._._ . _ . Projected Net Revenues/(Shortfall) 1 $0.3 $1,.1 $2.7 $4.6 $6.2 $7.7 .......... 2009 2009 Adopted Plan Maximum Buildout(500 hotel rooms) ._.._.................. .............. ---------------------....-_-_------------------_---------------......_.._. .............._..........._................._....................... Total General Fund Revenues $2.4 I $7.6� $11.7 $14.0 $15.9 $17.7 _------------ ..................._........._.................._.._............................-_..-..--.._-------------__._..........----.._.._ __..._...._._..._......__....,.,........_.. ..._..,.,....__.....__...__.... Total General Fund Expenditures ( $2.0 ` $4.8 I $7.2 $7.4 $7.6 $7.7 I ! Projected Net Revenues/(Shortfall) ( $0.3 $2.8 $4.5 $6.5 $8.3 $10.0 Source:Pro Forma Advisors and City of Chula Vista Pro Forma Advisors,LLC Page PFAID:10-824.10 I_ Pro Forma .Advisors LLC Project Description The Client is currently developing the Millenia project in the eastern portion of the City on vacant land located south of Birch Road,west of the SR-125, north of Hunte Parkway,and east of Eastlake Parkway("Project Site").The Project Site includes multiple parcels totaling approximately 145 net developable acres(Figure 4). Millenia will serve as a new urban center for the Otay Ranch and eastern Chula Vista community.The area is planned to include a variety of land uses including office, retail, hotel,and residential uses. Millenia will create an iconic urban village with a mixture of uses similar to a downtown environment and is anticipated be denser relative to the City as a whole. Figure 4-Site Map js�^$� --L`. ;k t� ` i�' + � •`�� �'!w5{\ Y .� < f } 1 a n I1 ass 1:g M1 ' .>!r �-j am•"�11 ,��' .�; f +_ �Ft, Y e r , Y Source:-SRi 3usr ess Anayst;ProForma AcVsors Pro Forma Advisors,LLC Page 4 PFAID:10-824.10 rh- Pro Forma Advisors LLC Figure 5 presents the land use program for the Proposed Amendment in comparison to the previously analyzed PFFP development program. The development program analyzed in the EUC SPA FIA1-includes approximately 2 million square feet of office, 160,000 square feet of civic uses,815,000 square feet of retail, 165,000 square feet of residential fitness center,500 hotel rooms(two 250-room properties),and 2,983 medium to high density for-sale residential units.The absorption schedule used in that FIA was expected to extend for over a 20 year build out during which the projects land uses would intensify overtime, with early phase surface parking lots being replaced by taller buildings and structured parking. Figure 5- Estimated Building Square Feet Retail(SF) 395,000 815,000 48% Office(SF) 2,747,000 2,007,000 137% Civic(SF) 130,852 160,000 82% Hotel(Rooms) 135 500 27% Residential(Units) 2,983 2,983 100% iNote:5,532 square feet of the retail space includes 4,200 SF of dedicated retail,282 square feet of outdoor seadng/oiaza space,and 1050 square feet of We wore space. Eor the purposes of this analysis,these mixed-use retail space has been classified as'retail'for t'ne.purpose of the RA. Source,Economics Research Associates,Pro Forma Advisors Model Inputs Development Program Absorption The information provided has been provided by the Client and reflects the actual plans of their merchant builders,a qualified real estate market research firm hired by the Client,consultations with local developers,as well as their own development expertise to provide guidance on a reasonable build out timeline for the residential units given current market conditions.The following absorption schedules for commercial development were based on input provided by the Clients merchant builders and a review of the historical absorption of commercial development in the City across the last decade. Please see delivered model for specific assumptions regarding project absorption. Memorandum"Eastern Urban Center Fiscal"dated March 31,2009. Pro Forma Advisors,LLC Page5 PFAID:10-824.10 Pro Forma Advisors !!C Assessed Value The capitalized value approach was used to estimate the market value of commercial properties. Pro Forma used an average office lease rent of$2.60(triple net or"NNN")per month and a cap rate for a Class A office product(6.0 percent) as reported for San Diego in the CBRE's Capitalization Rate Survey for the second-half of 2015.2 The cap rate is applied to the net operating income after reductions have been made for operating expenses and structural vacancy. As it relates to the NNN rent structure, it is assumed that the development recovers the vast amount of expenses.The capitalized value approach provided an assessed value of$400 per gross square foot of building area for the office space. A similar methodology was used to estimate the market value of the proposed retail development. Pro Forma used an average retail lease rent of$3.00 NNN per month and$1.50 NNN per month for the small-format(neighborhood)retail and large-format(community)retail, respectively. A 5.5 percent cap rate was used to estimate the value of both the community and neighborhood retail after accounting for operating expenses and structural vacancy.The capitalized value approach provided an assessed value of$532 and$266 per gross square foot of building area of the small-format and large-format retail,respectively. Currently,Chula Vista hotel accommodations have generally lower asking room rates than other submarkets in the larger .San Diego market area. However,existing accommodations options include primarily economy level limited service hotels. The Client anticipates that the hotel developed at the Project Site will be of a higher quality and exceed the average daily room rate of many of the existing properties in the City. Based on information provided within the City model, PFA utilized a stabilized average daily rates of$154.87 with 77.1 percent occupancy. Using standard industry operating margins and a current cap rate of approximate 7.5 percent,each hotel room is projected to have a value of approximately$349,000 per room(key). The for-sale residential assessed value was determined based on the average, unadjusted, sales price. For-rent residential units'assessed value was based on the assumed average asking rent along with the associated operating costs for multi-family residential development. The current multi-family for rent cap rate in San Diego(4.75 recent)was applied to estimate the total project value. In the FIA,for-sale residential were estimated to yield approximately$459,000 per unit while for-rent development was estimated to yield approximately$290,000 per unit.3 2 Released May 2016 3 Assessed value assumptions on a per unit basis were utilized in the 2009 fiscal analysis. Pro Forma Advisors,LLC Page6 PFAID:10-824.10 t1— i Pro Forma Advisors LLC Figure 6- Estimated Assessed Value by Land Use(2017 Dollars) 0 • IIOIIYi_`i 1 ,�.... �s.9� ® �£ fjJ ILT7Sl�D. Retail Small-Format(SF) 72,634 $36 90% 95% 5.0% 5.50% $39 $532 Large-Format(SF) 322,366 $18 90% 95% 5.0% 5.50% $86 $266 Office(SF) 2,747,000 $31 90% 90% 5.0% 6.00% $1,099 $400 Hotel(Rooms) 135 $56,575 40.0% 7.50% $47 $349,000 Residential For-Sale(Dwelling Units) 1,170 $459,300 $537 $459,300 For-Rent(Dwelling Units) 1,813 $23,232 95% 37.5% 4.75% $526 $290,394 Total Assessed Value $2,3341 1 Source:Pro Forma kMsors Maintenance-Service-Costs Public Works and Recreation Expenditures In 2014 the City Council adopted a resolution to establish a community facilities district("CFD")for Millenia,which authorizes a special tax to fund all or a portion of the costs to maintain and service a variety of facilities including: ► Street Frontage Maintenance ► Park Maintenance ► Bio-Retention Maintenance . ► Storm Water Maintenance Maintenance includes, but is not limited to,the"furnishing of services and materials for the ordinary and usual maintenance,operation,and servicing"within the CFD. The CFD tax also includes"Administrative Expenses"that represents the actual or estimated costs incurred by the City acting on behalf of the CFD area. As such, it is assumed that the CFD will cover the some of the costs associated with the new road network and urban parks. J The following distributes the costs inputed into the"Maintenance Service Costs"tabs less the 20 percent"Admin/ Reserves"cost that is already included in the CFD for the park maintenance. Furthermore,the developer has formed a Master Community association in Millenia which will take over maintenance of a number of items normally covered by the City's general fund including sidewalk maintenance,streetscape landscape maintenance and some lighting. As such,the estimates using the City's fiscal model may overstate some of the costs associated with the project. Pro Forma Advisors,LLC Pagel PFAID:10-824.10 Pro Forma Advisors LLC Figure 8- Maintenance Service Inputs f7 Q lit �i7 l Q a q �7 Q Q EO M r � t.� rpt Struts and Lighting Lane Miles 3.4 7.1 7.1 8.2 8.2 8.2 8.2 8.2 6.2 8.2 8.2 8.2 8.2 (Cumulative) Parks Park Acres 1.970 1.970 3.480 8.980 10.600 10.600 10.600 10.600 10.600 10.600 10.600 10.600 10.600 (Cumulative) Souroe:Gent Pro Forma Advisors,LLC Page8 PFAID:10-824.10 Pro Forma Advisors LLC Appendx Appendix Proposed Amendment FIA Tables (excel model available upon request) The remainder of the page is intentionally blank Pro Forma Advisors,LLC Page9 PFAID:10-808.08 - _ - __ P t6 if A Eg;p 1 is xxfR --_ gw �_ z 2 A 3 mA ___ - 'Z' �l)tw -2s v u "�10€X� aSo�sm m _mxoo ""a_ sm�a s Sm _ ----^ - -- .moa s a2i �m as -_ " � "e�t XXt n :gym _ » 'YIto_IY .,YoYX - Ll rim^gni - _ '��I�` _»_ -' _y L$8 � x5g2 da a s.7 EE as a <aL< Ea dv E a z » - 2 oC -' �^:0 3 �T EG�� E � -^e €€i F - - ij � `~ Iii i II it f - «« 15 - poi - ; tlk" � I xto "t__ o 5 old Sion jo Q,« H � _ - minis_ moi` J ?+'1= 411 MIR ill 11 11 1 L ^ 1 1 - - F u c; - iTi - 1 17 �^ { � i I � � ,�I t . 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I� IN a �n ! ! �'em mem � V L y ills.ac°o ea y9�u` � f `ll II'F; Nf.S II��VT :J - � §\!\ - . (�!J Li jF / )� \ ( . . - (/}\!\ ° - : [ «� - @!2/!j : - - - e }ƒ(f$} \ - � - � \/\\!� � \ . • . /&(!;! / 52 2 ! . - }%;;;§ \$\\(\ 4 \ . � - \!}/�\ - ; z \\ )�\ \ Recording Requested By: and When Recorded Mail To: City Clerk City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 EXEMPT FROM RECORDER'S FEES Pursuant to GOVERAM ENT CODE §6103 (ABOVE SPACE FOR RECORDER'S USE ONLY) FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (ORIGINALLY BY AND BETWEEN THE CITY OF CHULA VISTA AND McMILLIN OTAY RANCH LLC) FIRST AMENDMENT TO DEVELOPMENT AGREEMENT This First Amendment to Development Agreement (`'First Amendment") is made and entered into by and between the CITY OF CHULA VISTA, a chartered California municipal corporation ("City") and SLF IV - MILLENIA, LLC, a Delaware limited liability company ("Master Developer") and is dated for reference purposes only as of , 2018. The City and Master Developer are sometimes referred to jointly in this Agreement as the "Parties" and individually as a "Party." Capitalized terms used in this First Amendment are defined in the Original Agreement (defined below) unless defined or redefined in Section 1 of this First Amendment. RECITALS A. Original Agreement. City and Master Developer's predecessor in interest previously entered into the Development Agreement By and Between the City of Chula Vista and McMillin Otay Ranch LLC(the"Original Agreement"). The Original Agreement was duly approved by both Parties and recorded on October 27, 2009 as Document No. 2009- 0595116 of Official Records in the Office of the San Diego County Recorder. B. Identity of Master Developer. Master Developer succeeded to the position of the Master Developer after the Original Agreement took effect. C. Purpose of First Amendment. Master Developer has requested that the City amend the SPA Plan in a way that constitutes a Material Change to the Project. Section 2.13.3 of the Original Agreement requires that this be done by an amendment thereto. The amendment to the SPA Plan being proposed would only affect the Remaining Property and thus, according to Section 2.13 of the Original Agreement, does not require approval of any Owner other than Master Developer. D. Effect of SPA Plan Amendment. The amendment to the SPA Plan proposed by Master Developer would reduce the total amount of Development in Millenia without reducing infrastructure. E. Authorization. City is authorized to enter into this First Amendment pursuant to Chula Vista City Council Resolution No. 11933, California GOVERNMENT CODE §65864 et seq., the City Charter, and City's self-rule powers, all of which authorize City to enter into and amend binding development agreements with persons having equitable or legal interests in real property, for the purposes of assuring, among other things: (i) certainty as to permitted land uses in the development of such property; and (ii) the construction of adequate public facilities to serve such development of the property. F. Interest in Remaining Property. Master Developer represents that it is the fee owner of the Remaining Property. Master Developer further represents that it has the legal authority to bind the Remaining Property by recordation of this First Amendment. G. Planning Commission Hearing on First Amendment. On 2018, City's Planning Commission held a duly noticed public hearing on this First Amendment and at the conclusion of the hearing recommended approval of this First Amendment. H. City Council Hearing on First Amendment. On , 2018, the City Council held a duly noticed public hearing on this First Amendment, at the conclusion of which the Council introduced and conducted the first reading of the ordinance approving the First Amendment; and subsequently, on , 2018, adopted Ordinance No. approving the First Amendment. As part of its initial hearing, the City Council considered and approved the environmental documentation for this First Amendment as being in compliance with the California Environmental Quality Act, and found that this First Amendment and the Project are consistent with the Land Use Regulations. AGREEMENT NOW, THEREFORE, in light of the Recitals,which are hereby incorporated into this First Amendment, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Definitions. As used in this First Amendment, in addition to terms defined in the Original Agreement the following terms shall have the following meanings: 1.1 Remaining Property shall mean the real property legally described in Exhibit "F" hereto and incorporated herein. 1.2 Revised SPA Plan shall mean the Sectional Planning Area Plan for the EUC approved by the City on 2018, by Resolution No. 2. Revision to SPA Plan. As to the Remaining Property, all provisions of the Original Agreement referring to the SPA Plan are hereby amended so as to refer to the Revised SPA Plan. Without limiting the generality of the foregoing, uses, densities, intensities, heights, sizes,reservations,and dedications on the Remaining Property shall be those in the Revised SPA Plan rather than the Spa Plan. Exhibit "G" hereto, incorporated herein by this reference, is the list of Existing Entitlements applicable to the Remaining Property. 3. Intent of First Amendment. The substantive intent of this First Amendment is limited to substituting the Revised SPA Plan for the SPA Plan as to the Remaining Property. No other substantive change to the Original Agreement is intended hereby. Except as expressly amended hereby, the Original Agreement remains in full force and effect on its own terms. The "Development Agreement' shall constitute the Original Agreement as amended by this First Amendment. 4. Miscellaneous. 4.1 Notices. Solely to document the change in ownership, the Parties note that notice to Master Developer should be sent to: -4- If to Master Developer: SLF IV - MILLENIA, LLC c/o Meridian Development Attn: Mr. Todd Galarneau 9988 Hibert Street, Suite 210 San Diego, California 92131 With a copy to: Hecht Solberg Robinson Goldberg& Bagley LLP 600 West Broadway, Suite 800 San Diego, California 92101 Attn: Richard A. Schulman IN WITNESS WHEREOF, Master Developer and City have executed this First Amendment on the date first above written. [Signature Page Follows] -5- City: Master Developer: CITY OF CHULA VISTA, a chartered SLF IV - MILLENIA, LLC, California municipal corporation a Delaware limited liability company BY:SLF IV Millenia Investor, LLC, By a Texas limited liability company, Its its sole and managing member BY:Stratford Land Fund IV, L.P., a Delaware limited partnership, its co-managing member BY:Stratford Fund IV GP, LLC, a Texas limited liability company, its general partner By: Name: Title: ATTEST: By APPROVED AS TO FORM: APPROVED AS TO FORM: CITY ATTORNEY HECHT SOLBERG ROBINSON GOLDBERG&BAGLEY LLP By By Richard A. Schulman, Attorneys for Master Developer SLF IV - MILLENIA, LLC -6- EXHIBIT "F" LEGAL DESCRIPTION OF REMAINING PROPERTY That certain real property located in the City of Chula Vista, County of San Diego, State of California and more particularly described as follows: LOTS J THROUGH M, INCLUSIVE,IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 15942 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON SEPTEMBER 23, 2013, AND LOTS 1, 8, 11 THROUGH 13, INCLUSIVE, 15, 16, 19, 21 AND 22, AND LOTS A, F THROUGH K, INCLUSIVE, M AND N, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 16081 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON DECEMBER 28, 2015 AND LOT A IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 16150 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON NOVEMBER 30, 2016. F-1 EXHIBIT "G" LIST OF "EXISTING ENTITLEMENTS" APPLICABLE TO THE REMAINING PROPERTY 1. Eastern Urban Center Final Second Tier EIR(EIR-07-01) 2. Eastern Urban Center Sectional Planning Area (SPA) Plan 3. Eastern Urban Center Tentative Map (PCS-09-03) 4. Development Agreement between the City of Chula Vista and McMillin Otay Ranch LLC (PCM-06-08(B)) 5. Eastern Urban Center Parks Agreement (PCM-06-08(C)) 4840-8471-74071 G-1 SECOND READING AND ADOPTION ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING AMENDMENTS TO THE EASTERN URBAN CENTER PLANNED COMMUNITY DISTRICT REGULATIONS AND DESIGN PLAN (FORM BASED CODE) FOR 207 ACRES OF LAND IN THE EASTERN URBAN CENTER PORTION OF THE OTAY RANCH RELATING TO MODIFICATIONS IN THE OVERALL BUILDOUT INTENSITY,BUILDING HEIGHTS AND DISTRICT 6 REGULATIONS I. RECITALS A. Project Site WHEREAS, the area of land that is the subject of this Ordinance is diagrammatically represented in Exhibit A attached hereto and incorporated into this Ordinance, and commonly known as the Eastern Urban Center (EUC), and for the purpose of general description herein consists of 207 acres located adjacent to and east of SR-125, adjacent to and west of Eastlake Parkway, south of Birch Road and the Otay Ranch Town Center, and north of the future extension of Main Street ("Project Site"); and B. Project; Application for Discretionary Approvals WHEREAS, a duly verified application was filed with the City of Chula Vista -Development Services Department on May 24,2017 by SLF N-Millenia,LLC(the "Applicant," "Owner" and "Developer") requesting approval of an EUC Sectional Planning Area(SPA)Plan and Form Based Code(FBC)amendment to: 1)establish a maximum land use intensity of 2,983 residential units and 3.324 million square feet of commercial uses with a low build out of 1,236 units of residential and 1.568 million square feet of non-residential land uses; 2) modify design standards to: a. revise the Minimum Average Height on six lots from five stories to four stories and modify the minimum height in feet in the Regulating Plan, b. establish a "height blending'for Districts 6 and 9,and c.establish deviations for setbacks;and 3)revise the Main Street District(District 6)to reduce the amount of non-residential use to a low of 80,000 and high of 100,000 square feet,further modifying Section 02.04.003 of the District Regulations and Design Guidelines; and ' C. Environmental Determination WHEREAS, The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act(CEQA)and has determined that the project was covered in previously adopted Final Second Tier Environmental Impact Report, EIR 07-01. The Director of Development Services Ordinance No. Page 2 has determined that only minor technical changes or additions to this document are necessary and that none of the conditions described in Section 15162 and 15164 of the State CEQA Guidelines calling for the preparation of a subsequent document have occurred; therefore, the Director of Development Services has prepared an addendum to the Final Second Tier Environmental Impact Report, EIR 07-01; and WHEREAS, the City Council finds that the Addendum to EIR 07-01 has been prepared in accordance with the requirements of CEQA, and the Environmental Procedures of the City of Chula Vista; and D. Planning Commission Record of Application WHEREAS, the Director of Development Services set the time and place for a hearing on the Project,and notice of the hearing,together with its purpose,was given by its publication in a newspaper of general circulation in the City,and its mailing to property owners within 500 feet of the exterior boundary of the Project Site at least ten(10) days prior to the hearing; and WHEREAS,the Planning Commission held an advertised public hearing on June 13, 2018 on the Project to adopt Resolution MPA17-0005 recommending that the City Council amend the EUC SPA Plan and FBC; and WHEREAS, the proceedings and all evidence ,introduced before the Planning Commission at the public hearing on the Project and the minutes and Resolution resulting therefrom, are incorporated into the record of this proceeding; and E. City Council Record of Application WHEREAS, the City Clerk set the time and place for the hearing on the Project application and notices of said hearing, together with its purposes given by its publication in a newspaper of general circulation in the City,and its mailing to property owners within 500 feet of the exterior boundaries of the Project Site at least ten(10) days prior to the hearing; and WHEREAS,the duly noticed and called public hearing on the Project was held before the City Council in the Council Chambers in the City Hall,Chula Vista Civic Center, 276 Fourth Avenue,to receive the recommendations of the Planning Commission,and to hear public testimony with regard to the same. II. NOW THEREFORE, the City Council of the City of Chula Vista does hereby find, determine and ordain as follows: A. CONSISTENCY WITH GENERAL PLAN The City Council finds that the proposed amendment to the EUC Planned Ordinance No. Page 3 Community District Regulations and Form Based Code are consistent with the City of Chula Vista General Plan. The General Plan envisions the EUC as a vibrant transit-oriented high intensity urban center serving the City and Otay Ranch master plan community. B. APPROVAL OF PROPOSED AMENDMENTS The City Council hereby approves the amendments to the Eastern Urban Center Planned Community District Regulations and Design Guidelines(Form Based Code) as represented in Exhibit B attached hereto and incorporated herein by this reference. III. EFFECTIVE DATE This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. Presented by Approved as to form by: Kelly Broughton Glen R. Googins Director of Development Services City Attorney SECOND READING AND ADOPTION ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE DEVELOPER AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND SLF IV — MILLENIA, LLC I. RECITALS A. Project Site WHEREAS, the area of land that is the subject of this Ordinance is diagrammatically represented in Exhibit A attached hereto and incorporated into this Ordinance, and commonly known as the Eastern Urban Center(EUC), and for the purpose of general description herein consists of 207 acres located adjacent to and east of SR-125, adjacent to and west of Eastlake Parkway, south of Birch Road and the Otay Ranch Town Center, and north of the future extension of Main Street ("Project Site"); and B. Project; Application for Discretionary Approvals WHEREAS, a duly verified application was filed with the City of Chula Vista Development Services Department on May 24,2017 by SLF IV-Millenia,LLC(the "Applicant," "Owner" and '`Developer") requesting approval of an EUC Sectional Planning Area(SPA)Plan and Form Based Code(FBC)amendment to: 1)establish a maximum land use intensity of 2,983 residential units and 3.324 million square feet of commercial uses with a low build out of 1,236 units of residential and 1.568 million square feet of non-residential land uses; 2) modify design standards to: a. revise the Minimum Average Height on six lots from five stories to four stories and modify the minimum height in feet in the Regulating Plan, b. establish a "height blending'for Districts 6 and 9,and c.establish deviations for setbacks;and 3)revise the Main Street District(District 6)to reduce the amount of non-residential use to a low of 80,000 and high of 100,000 square feet,further modifying Section 02.04.003 of the District Regulations and Design Guidelines; and WHEREAS, due to proposed amendments in overall commercial square footage there are potential impacts to public benefits including job generation and annual net revenue over the cost of providing municipal services, and therefore require modifications to the Developer Agreement between the City of Chula Vista and SLF IV-Millenia, LLC originally entered into September 15, 2009 and recorded on October 27, 2009 as Document No. 2009-0595116 of Official Records in the Office of the San Diego County Recorder; and C. Environmental Determination Ordinance No. Page 2 WHEREAS, The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act(CEQA)and has determined that the project was covered in previously adopted Final Second Tier Environmental Impact Report, EIR 07-01. The Director of Development Services has determined that only minor technical changes or additions to this document are necessary and that none of the conditions described in Section 15162 and 15164 of the State CEQA Guidelines calling for the preparation of a subsequent document have occurred; therefore, the Director of Development Services has prepared an addendum to the Final Second Tier Environmental Impact Report, EIR 07-01; and WHEREAS, the City Council finds that the Addendum to EIR 07-01 has been prepared in accordance with the requirements of CEQA, and the Environmental Procedures of the City of Chula Vista; and D. Planning Commission Record of Application WHEREAS, the Director of Development Services set the.time and.place for a hearing on the Project,and notice of the hearing,together with its purpose,was given by its publication in a newspaper of general circulation in the City,and its mailing to property owners within 500 feet of the exterior boundary of the Project Site at least ten(10) days prior to the hearing; and WHEREAS,the Planning Commission held an advertised public hearing on June 13, 2018 on the Project to adopt Resolution MPA17-0005 recommending that the City Council amend the EUC SPA Plan,FBC,PFFP,FIA and Developer Agreement; and WHEREAS, the proceedings and all evidence introduced before the Planning Commission at the public hearing on the Project and the minutes and Resolution resulting therefrom, are incorporated into the record of this proceeding; and E. City Council Record of Application WHEREAS, the City Clerk set the time and place for the hearing on the Project application and notices of said hearing, together with its purposes given by its publication in a newspaper of general circulation in the City,and its mailing to property owners within 500 feet of the exterior boundaries of the Project Site at least ten(10) days prior to the hearing; and WHEREAS,the duly noticed and called public hearing on the Project was held before the City Council in the Council Chambers in the City Hall,Chula Vista Civic Center, 276 Fourth Avenue,to receive the recommendations of the Planning Commission,and to hear public testimony with regard to the same. II. NOW THEREFORE, the City Council of the City of Chula Vista does hereby find, Ordinance No. Page 3 determine and ordain as follows: A. CONSISTENCY WITH GENERAL PLAN The City Council finds that the proposed amendment to the EUC Planned Community District Regulations and Form Based Code are consistent with the City of Chula Vista General Plan. The General Plan envisions the EUC as a vibrant transit-oriented high intensity urban center serving the City and Otay Ranch master plan community. B. APPROVAL OF PROPOSED AMENDMENTS The City Council hereby approves the amendments to the Eastern Urban Center Planned Community District Regulations and Design Guidelines(Form Based Code) as represented in Exhibit B attached hereto and incorporated herein by this reference. III. EFFECTIVE DATE This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. Presented by Approved as to form by: Kelly Broughton Glen R. Googins Director of Development Services City Attorney - :. CITY COUNCIL AGENDA STATEMENT CITY OF CHULA VISTA July 10,2018 File ID: 18-0202 ERRATA SHEET Replace the"Fiscal Impact Analysis (FIA)" Section beginning on page 8 with the following: Fiscal ImpactAnalysis(FIA) The Applicant's proposal includes a revised Fiscal Impact Analysis (FIA) evaluating the proposed amendment (see Fiscal Impact Analysis, Attachment 4). This FIA has been prepared using the City's new fiscal model which was first provided to the Applicant in October of last year. Staff worked with the Applicant who provided the necessary project-specific inputs to the plan needed to calculate the City's maintenance costs. It is important to note that the FIA presents a projection of the anticipated fiscal impacts of the development, based upon the best information currently available. Actual fiscal impacts as a result of development may vary from model outcomes. The FIA evaluates the following scenarios: 1. Proposed Amendment Maximum Buildout - This scenario assumes development of the proposed maximum buildout,including 2,983 residential units and 3.324 million square feet of non-residential uses. The non-residential uses assumed include approximately 2.7 million square feet of office, 395,000 square feet of retail uses, 130,000 square feet of civic uses (school and fire station), and a single 135-room hotel (96,000 square feet). 2. 2009 Adopted Plan Maximum Buildout (assumes 500 hotel rooms) - This scenario assumes development of the adopted maximum building, including 2,983 residential units and 3.487 million square feet of non-residential uses. The non-residential uses assumed in the 2009 plan include approximately 2.0 million square feet of office, approximately 800,000 square feet of retail uses, 160,000 square feet of civic uses,and two hotels totaling 500 rooms (375,000 square feet). 3. 2009 Adopted Plan with reduced Hotel (assumes 135 hotel rooms) - In recognition of the fact that since the original Millenia entitlements were approved the City has approved three hotels in addition to the one approved in Millenia-this scenario looks at the 2009 full build scenario but includes only the 135-room hotel currently under construction (reduction of 365 hotel rooms). Based on the FIA and the assumptions contained therein,all of the scenarios above are projected to generate a positive net fiscal impact to the City by year three (2020/2021). The relative fiscal performance of the three scenarios over a 30-year buildout term are compared in the table below. Page 1 Comparison of Modeled Fiscal lmpact'Scenarios ' pact, 1 Year 5 Year 10 Year 15 Year 20 Year 25 Year 30 Proposed Amendment Revenues $4.1 $6.9 $7.8 $9.7 $11.1 $12.9 (135 Hotel Rooms) Expenses ($3.1). _._($.6.1) '($6.9)_' ___($7.3) _($7.4)__ __($7.6) ,Net Impact $1.0 $0.7 $0.8 $2.4 $3.6 $5.3 Revenues $2.4 $6.0 $9.9 $12.0 $13.8 $15.4 2009 Adopted Plan (135 Hotel Rooms) Expenses _ ($2.1) ($4.8) ($7.2) ($7.4) ($7.6) CNet Impact $0.3 $1.1 $2.7 $4.6 $6.2 $7.7 2009 Adopted Plan Revenues $2.4 $7.6 $11.7 $14.0 $15.9 $17.7 (500 Hotel Rooms) Expenses ($2.0), -($4.8) ($7.2) ($7.4)_ .__($7-6) ($7.7) Net Impact $0.3 $2.8 $4.5 $6.5 $8.3 $10.0 The Proposed Amendment(135 Hotel Room) scenario assumes development phasing as summarized in the table below. Proposed 1 Development Phasing.Assumptions Year 5 Year 10 Year 15 Year 20 Year 25 Year 30 Residential Units 1,596 2,983 2,983 2,983 2,983 2,983 Hotel Rooms 135 135 135 135 135 135 Non-Residential SF Hotel SF 96,148 96,148 96,148 96,148 96,148 96,148 Retail SF 189,600 221,200 221,200 395,000 395,000 395,000 Office SF 1,107,820 1,675,240 1,756,300 1,918,420 2,161,600 2,702,000 Total Non-Residential SF 1,393,568 1,992,588 2,073,648 2,409,568 2,652,748 3,193,148 *Note:Civic uses are assumed to have no net fiscal impact and are therefore excluded. The Proposed Amendment phasing assumptions can be compared with the assumptions in the 2009 Adopted Plan fiscal analysis,summarized in.the table below. • Adopted Development Phasing A 1 1 Year 5 Year 7 Year 12 Year 17 Year 22 Residential Units 1,245 1,743 2,983 2,983 2,983 Hotel Rooms 250 500 500 500 500 Non-Residential SF Hotel SF 187,500 375,000 375,000 375,000 375,000 Retail SF 73,850 221,550 738,500 883,400 980,000 Office SF 88,650 265,950 886,500 1,552,200 1,996,000 Total Non-Residential SF 350,000 862,500 2,000,000 2,810,600 3,351,000 ��� Page 2 Overall, comparing projected net annual fiscal impacts in year 30 for the 2009 Adopted Plan and the Proposed Amendment($10.0 million and$5.3 million, respectively) indicates a$4.7 million reduced annual positive fiscal impact. It is important to note that a key driver reducing the fiscal benefit to the City between the Proposed Amendment scenario and the 2009 Adopted Plan scenario is Transient Occupancy Taxes,and the fact that the City's model attributes very little service costs to hotels. At year 30, approximately $2.3 million of the projected net fiscal benefit associated with the 2009 Adopted Maximum Buildout Scenario is attributable to the 365 additional hotel rooms assumed under that scenario. This is a relevant comparison as it recognizes that the City has not lost the TOT revenues,but rather those revenues have been relocated to other locations in the Eastern Territories where hotels have been added since the entitlements for Millenia were approved in 2009. Replace #1 under the"Developer Agreement" Section on page 10 with the following: Developer Agreement 1. Net Revenue-The first benefit identified in the existing DA was annual net revenue over the cost of providing municipal services of approximately$5.0 million in buildout year 22. As shown above,the updated fiscal impact analysis using a more current fiscal model shows that the original project could have resulted in estimated annual net revenues of$10.0 million in year 30. Applying this new fiscal model to the proposed project amendment, including the reduced non-residential development,the estimated annual net revenue is projected to be approximately $5.3 million in year 30. While this equates to a reduction of$4.7 million annually from the approved plan,it still represents a significant positive fiscal impact to the City's General Fund. Replace the"Ongoing Fiscal Impact"Section beginning on page 11 with the following: ONGOING'FISCAL IMPACT As discussed in-the Fiscal Impact Analysis section of this report, the Proposed Amendment is projected to result in net positive fiscal impacts throughout the development period, ranging from $1.0 million to $5.3 million annually. Cumulative impacts of the Proposed Amendment buildout scenario during the term of the 30-year analysis are anticipated to total approximately$57.8 million,with an annual average positive impact of$1.9 million. The table below summarizes the projected annual net fiscal impact for representative buildout years for the Proposed Amendment,the 2009 Adopted Plan as originally approved (assuming 500 hotel rooms),and the 2009 Adopted Plan (assuming only the 135 hotel rooms constructed to date). Comparison of Modeled Fiscal Impact Scenarios(Annual Net Impact,Millions) Year 5 Year 10 Year 15 Year 20 Year 25 Year 30 Proposed Revenues $4.1 $6.9 $7.8 $9.7 $11.1 $12.9 Amendment Expenses $(3.1) $(6.1) $(6.9) $(7.3) $(7.4) $(7.6) 135 Hotel Rooms Net Impact $1.0 $0.7 $0.8 $2.4 $3.6 $5.3 2009 Adopted Plan Revenues $2.4 $6.0 $9.9 $12.0 $13.8 $15.4 (135 Hotel Rooms) Expenses $(2.1) $(4.8) $(7.2) $(7.4) $(7.6) $(7.7) Net Impact $0.3 $1.1 $2.7 $4.6 $6.2 $7.7 2009 Adopted Plan Revenues $2.4 $7.6 $11.7 $14.0 $15.9 $17.7 (500 Hotel Rooms) Expenses $(2.0) $(4.8) $(7.2) $(7.4) $(7.6) $(7.7) Net Impact $0.3 $2.8 $4.5 $6.5 $8.3 $10.0 Page 3 As illustrated in the table above, reducing the hotel rooms assumed to be developed by 365 decreases the projected annual positive impact in year 30 by approximately$2.3 million. This accounts for just under 50% of the total projected positive impact reduction in year 30 resulting from the Proposed Amendment. Additional adjustments to the development plan further reduce the year 30 projected net positive fiscal benefit from$10.0 million (2009 Adopted Plan with 500 hotel rooms) to$5.3 million. While a comparison of the Proposed Amendment with the 2009 Adopted Plan (with 500 hotel rooms) indicates reduced positive impacts of approximately$4.7 million annually in year 30,the plan continues to indicate significant net positive impacts to the City's General Fund as a result of the Millenia project. When considering the above, it is important to note that the Fiscal Impact Analysis presents projections based upon the best information currently available. Actual fiscal impacts as a result of this development may vary from those indicated by the model. Pursuant to Section 4.5 (Operating Deficit) of the Millenia Development Agreement, the Master Developer will cover the City's net operating deficit during the initial years of the project(excluding fire services),up to a cumulative maximum of$500,000. The amount of the deficit is to be determined via a fiscal study to be prepared by the City at the Master Developer's cost. Per the Development Agreement,the first fiscal analysis "shall be conducted following the end of the fiscal year which is two (2),years following the first occupancy within the Property, and annually thereafter at the end of each fiscal year." The first Millenia certificate of occupancy was issued to Fairfield Residential, on October 23, 2015. Based upon this date, the first fiscal analysis shall be conducted after June 30, 2018. Initiation of the first fiscal analysis is expected in July of 2018. Replace Attachment 4 with the revised Fiscal Impact Analysis (FIA) attached. r Staff Contact.Stacey Kurz,Senior Project Coordinator Page 4 t Pro Forma AdVisors LLC Report for: IVIdlenia HscaI Impact AnaIysis Chula Vista,CA Prepared for:SLF IV-Millenia, LLC Prepared by: Pro Forma Advisors, LLC, re+ep July 2018 PFAID: 10-808 Version: 11.0 Pro Forma Advisors,LLC Los Angeles T 310.616.5079 New York Metro T 203.604.9007 F 888.696.9716 www.ProForma4dvisors.com Pro Forma Advisors LLC Table of Contents Introduction 1 Results 1 Project Description 4 Model Inputs 5 Appendix 9 Proposed Amendment FIA Tables 9 Pro Forma Advisors,LLC PFAID:10-824.11 Pro Forma \� ,Advisors LLC General Limiting Conditions Certain information included in this report contains forward-looking estimates, projections and/or statements. Pro Forma Advisors LLC has based these projections, estimates and/or statements on expected future events.These forward- looking items include statements that reflect our existing beliefs and knowledge regarding the operating environment, existing trends,existing plans, objectives,goals,expectations,anticipations, results of operations,future performance and business plans. Further,statements that include the words'may," °could,° "should," 'would,' "believe," "expect,' "anticipate,' "estimate," 'intend,' 'plan,""project,"or other words or expressions of similar meaning have been utilized.These statements reflect our judgment on the date they are made and we undertake no duty to update such statements in the future. No warranty or representation is made by Pro Forma Advisors that any of the projected values or results contained in this study will.actually be achieved. Although we believe that the expectations in these reports are reasonable,any or all of the estimates or projections in this report may prove to be incorrect.To the extent possible,we have attempted to verify and confirm estimates and assumptions used in this analysis. However,some assumptions inevitably will not materialize as a result of inaccurate assumptions or as a consequence of known or unknown risks and uncertainties and unanticipated events and circumstances,which may occur. Consequently,actual results achieved during the period covered by our analysis will vary from our estimates and the variations may be material. As such, Pro Forma Advisors accepts no liability in relation to the estimates provided herein. In the production of this report, Pro Forma Advisors has served solely in the capacity of consultant and Pro Forma Advisors has not rendered any"expert"opinions and does not hold itself out as an "expert"(as the term"expert"is defined in Section 11 of the Securities Act of 1933). This report is not to be used in conjunction with any public or private offering of securities,and may not be relied upon with the express written consent of Pro Forma Advisors. This study is qualified in its entirety by,and should be considered in light of,these limitations,conditions,and considerations. Pro Forma Advisors,LLC PFAID:10-824.11 r- Pro Forma Advisors LLC Introduction SLF IV-Millenia, LLC("Owner"or"Client")retained Pro Forma Advisors to evaluate the fiscal impacts of several build out scenarios for the approved project commonly referred to as"Millenia"and previously referred to as the Eastern Urban Center("EUC"),which is part of the Otay Ranch Master Planned Community located in the City of Chula Vista("City"). These build-out scenarios include the following: Proposed Amendment This scenario assumes the Millenia project continues to intensify over time and builds out to the maximum buildout under the proposed amendment which is 2,983 residential units and 3.32 million square feet of commercial uses.This scenario includes approximately 2.7 million square feet of office,395,000 square feet of commercial,a 135-room hotel and approximately 130,000 square feet of civic uses. 2009 Adopted Plan This scenario assumes the Millenia project builds out to the maximum buildout under the current entitlements of 2,983 residential units and 3.48 million square feet of commercial uses.This scenario includes approximately 2.0 million sf of office,980,000 square feet of commercial(including 160,000 square feet of civic and recreational uses),and two,250- room hotels(500 rooms total). 2009 Adopted Plan with Reduced Hotel This scenario assumes the Millenia project builds out to the maximum buildout under the current entitlements but rather than two, 250-room hotels,the project includes a single 135-room hotel similar to the proposed project. The approved entitlements allow a maximum buildout at 2,983 residential units and 3.48 million square feet of -commercial uses. The prior fiscal impact study prepared as part of the approved public facilities-financing plan("PEEP") for Millenia evaluated the 2009 Adopted Plan scenario. Results The following analysis evaluates the fiscal impact of the various scenarios across a 30-year period,including build out that is projected to occur prior to Fiscal Year(FY)30. For the purposes of this analysis, net fiscal impacts refer to the fiscal revenues less the fiscal costs generated by the development. A positive net fiscal impact means that the fiscal revenues covers the costs generated by the development. Using the City's FIA Framework,the Proposed Amendment scenario would have a net positive revenue annual impact of approximately$740,000 in Year 10(FY 2027)that is expected to grow to approximately$2.4 million in an illustrative Year 20(FY 2037)and$5.4 million in an illustrative Year 30(FY 2047). Pro Forma Advisors,LLC Page 1 PFAID:10-824.11 5 Pro Forma _ Advisors LLC Figure 1 - Net Fiscal Impact(Future Year Dollars) Total General Fund Revenues $ 6,851,032 1 $ 9,652,886 I $ 12,910,221 $ 235,258,848 $ 7,841,962 i Total General Fund Expenditures $ 6,129,873 : $ 7,273,249 $ 7,597,932 $ 177,466,660 $ 5,915,555 Projected Net Revenues/(Shortfalq ( $ 738,501 i $ 2,403,874 $ 5,354,145 $ 57,792,188 ( $ 1,926,406 Source:Pro F orma AdVsors and Gty of Gnda Vsta In 2009, Economic Research Associates conducted a FIA for the approved EUC Specific Plan Area(SPA)that estimated a range of positive net fiscal impacts of the project under a different development program. Using the City's current FIA model,the net fiscal impact associated with the 2009 Adopted Plan scenario is presented below.A second analysis is also provided,for comparison purposes,with the 2009 Adopted Plan with Reduced Hotel. Figure 2- Net Fiscal Impact Comparison (Future Year Dollars) $12.00.000 -----'—"---- ---------- --------`------"--------`--- $10.000.000 ----- -- --- ----- - iy 0'S9.993,718 $8.000.000 $7.709.985 paayr mss $6.000.000 — -----'----"--- ---'--¢,o-=`_�_.�_ _ O ea $4.000.000 OA $2.000.000 i So FY FY R' FY FY �FY FY FY FY .-l' FY FY FY FY FY FY FY FY FY FY FY :Y 1' FY FY FY FY FY FI FI 2016 2019 2020 2021 2022 2073 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 ($2.00.0001 —?,p Anrendnref¢ —2009 APo W Tan(135 Fl—) o e 2009 AP.&.d Tan(500 R... Source:—Economics Resea cn Associates;Pro Forma A.dvsors;City of Cnd'a Vsta The purpose of including a scenario which assumes full buildout under the adopted plan but with a reduced number of hotel rooms was to illustrate the impact of the hotels and the Transient Occupancy Taxes(TOT)on the overall fiscal performance of the various alternatives.As noted by the Client,the single hotel currently planned is a direct consequence of City's decision to approve the construction of two new hotels,which total 300 rooms, in the Freeway Commercial SPA Plan amendment. If this direct competition,as well as the two new hotels being located in the Eastlake Business Park, were known at the time of Millenia's entitlement,then it is likely that no hotels,or perhaps a single smaller hotel would have been included and theoretically modeled in the fiscal study. Another way to look at this is that the net fiscal revenue associated with the hotel rooms were not lost,but rather transferred to another location in the City. Consequently,due to the weight given to TOT in the City's current fiscal model as well as differences between the overall development program,specifically the additional reduction of housing and retail development,comparisons between the Proposed Amendment and either of the proposed plan scenarios are not appropriate.While still a different Pro Forma Advisors,LLC Page2 PFAID:10-824.11 Pro Forma Advisors LLC development programs and assumptions regarding absorption,a comparison between the Proposed Amendment and the 2009 Adopted Plan with Reduced Hotel is a more direct comparison. Figure 3- Net Fiscal Impact of All Scenarios (Millions of Future Year Dollars) 41 v Proposed Amendment(135 room hotel) Total General Fund Revenues $4.1 1 $6.9 $7.8 $9.7 $11.1.i $12.9 ......................................._......_......................_..............---..................._....--1111- -------+------------ - ----------...............LLL.........----.........__............................._......................................-............... Total General Fund Expenditures $3.1 $6.1 $6.9 $7.3 $7.4 $7.6 _.............._.........__..........................................._.........., .----------------------- 1111---------- ............-..........._.............................. _.........................................._.. - Projected Net Revenues/(Shortfall) $1.0 $0.7 $0.8 $2.4 $3.6 $5.3 2009 Adopted Plan with Reduced Hotel(135 room hotel) - -----------------------------..--._,.. _..- -...,.._...,-.._..........................._..... ........__........._...._._._.. _1_1.11.. - 1111_...--1111--- ._.. ........__......_..._.:. Total General Fund Revenues $2.4 1 $6.0 $9.9 $12.0 $13.8 $15.4 ------------------------------------- --- -..--.._.....__...._.,..._._.__ ----------------- - -- _ _........_.........-_111.1 .. -- - Total General Fund Expenditures $2.1 ' $4.8 $7.2 $7.4 $7.6 $7.7 -----------1111--- ___ 1111 ------..-_.............- _----------------_. -.---------_----._---------- ---------=_------------- J ----- Projected Net Revenues/(Shortfall) $0.3 $1.1 $2.7 $4.6 $6.2 $7.7 2009 Adopted Plan Maximum Buildout(500 hotel rooms) _......_._-..........____......___._...._....._.............._. -..._:_.._____-. -_ ._.....__._._.._.............._.._...------_..._-_--_---- Total General Fund Revenues $2.4 $7.6 $11.7 $14.0 $15.9 $17.7 -- _ ._11.1-1-1--.1- -___ ------__-- Total General Fund Expenditures $2.0 $4.8 I $7.2 $7.4 $7.6 $7.7 ---[Projected Net Revenues/(Shortfall) $0.3 -$2.8 I $4.5 $6.5 $8.3 $10.0 I Source:Pro Forma Advsors and Gty of Cnida Msta -1 Pro Forma Advisors,LLC Page PFAID:10-824.11 Pro Forma Advisors LLC Project Description The Client is currently developing the Millenia project in the eastern portion of the City on vacant land located south of Birch Road,west of the SR-125,north of Hunte Parkway, and east of Eastlake Parkway("Project Site").The Project Site includes multiple parcels totaling approximately 145 net developable acres(Figure 4). Millenia will serve as a new urban center for the Otay Ranch and eastern Chula Vista community.The area is planned to include a variety of land uses including office, retail, hotel,and residential uses. Millenia will create an iconic urban village with a mixture of uses similar to a downtown environment and is anticipated be denser relative to the City as a whole. Figure 4-Site Map z j n. 71 Nr�l � _ r s ♦•t � � , �' iE d ,��Ki 's � X41' a n ^ , v S Y. $ _ x .w t •'' 'g ll J Source:=SRi Bushess Ariayst;Pro Forrna Advisors Pro Forma Advisors,LLC Page PFAID:10-824.11 Pro Forma Advisors LLC Figure 5 presents the land use program for the Proposed Amendment in comparison to the previously analyzed PFFP development program. The development program analyzed in the EUC SPA FIAt includes approximately 2 million square feet of office, 160,000 square feet of civic uses,815,000 square feet of retail, 165,000 square feet of residential fitness center, 500 hotel rooms(two 250-room properties),and 2,983 medium to high density for-sale residential units.The absorption schedule used in that FIA was expected to extend for over a 20 year build out during which the projects land uses would intensify overtime,with early phase surface parking lots being replaced by taller buildings and structured parking. Figure 5- Estimated Building Square Feet Retail(SF) 395,000 815,000 48% Office S 2,702,000 2,007,000 135% Civic(SF) 130,852 160,000 82% Hotel Rooms 135 500 27% Residential(Units) 2,983 2,983 100% Vote:5,532 square feet of the retail space includes 4,200 SF of ded':ated retail,282 square feet of outdoor seating/plaza space,and 1050 square feet of lNe vvork space. For the ourooses of this anaysls,these mixed-use retail space has been classified as'retail'for the ouroose of the RA, Source:Economics Research Associates,Pro Forma Advisors Model Inputs Development Program Absorption The information provided has been provided by the Client and reflects the actual plans of their merchant builders,.a qualified real estate market research firm hired by the Client,consultations with local developers, as well as their own development expertise to provide guidance on a reasonable build out timeline for the residential units given current market conditions.The following absorption schedules for commercial development were based on input provided by the Clients merchant builders and a review of the historical absorption of commercial development in the City across the last decade. Please see delivered model for specific assumptions regarding project absorption. Memorandum"Eastern Urban Center Fiscal'dated March 31,2009. Pro Forma Advisors,LLC Pages PFAID:10-824.11 Pro Forma Advisors LLC Assessed Value The capitalized value approach was used to estimate the market value of commercial properties. Pro Forma used an average office lease rent of$2.60(triple net or"NNN")per month and a cap rate for a Class A office product(6.0 percent) as reported for San Diego in the CBRE's Capitalization Rate Survey for the second-half of 2015.2 The cap rate is applied to the net operating income after reductions have been made for operating expenses and structural vacancy. As it relates to the NNN rent structure, it is assumed that the development recovers the vast amount of expenses.The capitalized value approach provided an assessed value of$400 per gross square foot of building area for the office space. A similar methodology was used to estimate the market value of the proposed retail development. Pro Forma used an average retail lease rent of$3.00 NNN per month and$1.50 NNN per month for the small-format(neighborhood)retail and large-format(community)retail, respectively. A 5.5 percent cap rate was used to estimate the value of both the community and neighborhood retail after accounting for operating expenses and structural vacancy.The capitalized value approach provided an assessed value of$532 and$266 per gross square foot of building area of the small-format and large-format retail,respectively. Currently,Chula Vista hotel accommodations have generally lower asking room rates than other submarkets in the larger San Diego market area. However,existing accommodations options include primarily economy level limited service hotels. The Client anticipates that the hotel developed at the Project Site will be of a higher quality and exceed the average daily room rate of many of the existing properties in the City. Based on information provided within the City model, PFA utilized a stabilized average daily rates of$154.87 with 77.1 percent occupancy. Using standard industry operating margins and a current cap rate of approximate 7.5 percent,each hotel room is projected to have a value of approximately$349,000 per room(key). The for-sale residential assessed value was determined based on the average, unadjusted,sales price. For-rent residential units'assessed value was based on the assumed average asking rent along with the associated operating costs for multi-family residential development. The current multi-family for rent cap rate in San Diego(4.75 recent)was applied to estimate the total project value. In the FIA,for-sale residential were estimated to yield approximately$459,000 per unit while for-rent development was estimated to yield approximately$290,000 per unit.' 2 Released May 2016 'Assessed value assumptions on a per unit basis were utilized in the 2009 fiscal analysis. Pro Forma Advisors,LLC Page 6 PFAID:10-824.11 r-- Pro Forma Advisors LLC Figure 6- Estimated Assessed Value by Land Use(2017 Dollars) s �o Retail Small-Format(SF) 72,634 $36 90% 95% 5.0% 5.50% $39 $532 Large-Format(SF) 322,366 $18 90% 95% 5.0% 5.50% $86 $266 Office(SF) 2,702,000 $31 90% 90% 5.0% 6.00% $1,056 $391 Hotel(Rooms) 135 $56,575 40.0% 7.50% $47 $349,000 Residential For-Sale(Dwelling Units) 1,170 $459,300 $537 $459,300 For-Rent(Dwelling Units) 1,813 $23,232 95% 37.5% 4.75% $526 $290,394 Total Assessed Value $2,291 Source.Pro Forma A-Mscrs -Maintenance Service Costs Public Works and Recreation Expenditures In 2014 the City Council adopted a resolution to establish a community facilities district("CFD")for Millenia,which authorizes a special tax to fund all or a portion of the costs to maintain and service a variety of facilities including: ► Street Frontage Maintenance ► Park Maintenance ► Bio-Retention Maintenance ► Storm Water Maintenance Maintenance includes, but is not limited to,the"furnishing of services and materials for the ordinary and usual maintenance,operation,and servicing"within the CFD. The CFD tax also includes"Administrative Expenses"that represents the actual or estimated costs incurred by the City acting on behalf of the CFD area. As such, it is assumed that the CFD will cover the some of the costs associated with the new road network and urban parks. The following distributes the costs inputed into the"Maintenance Service Costs"tabs less the 20 percent"Admin/ Reserves"cost that is already included in the CFD for the park maintenance. Furthermore,the developer has formed a Master Community association in Millenia which will take over maintenance of a number of items normally covered by the City's general fund including sidewalk maintenance,streetscape landscape maintenance and some lighting. As such,the estimates using the City's fiscal model may overstate some of the costs associated with the project. Pro Forma AdvisorsLLC Pa9 e7 PFAID:10-824.11 1`. Pro Forma _, Advisors LLC Figure 8- Maintenance Service Inputs C�t7 �7�7 '�' w �G'1t7�� �t7 �TGr�7y� G�� Gt77� �,3zu �w �T��?7� w GL•lL'J CS:A1C! 1 1 Soo (4�1�4 1 CS•w QS p EED r+•rtr rte• ) 99) a streets and Lighting Lane Miles 3.4 7.1 7.1 8.2 8.2 8.2 8.2 8.2 8.2 8.2 8.2 8.2 8.2 (Cumulative) Parks Park Acres 1.970 1.970 3.480 8.980 10.600 10.600 10.600 10.600 10.600 10.600 10.600 10.600 10.800 (Cumulative) Source:Cfent Pro Forma Advisors,LLC Page PFAID:10-824.11 I Pro Forma Advisors LLC Appendix Appendix Proposed Amendment FIA Tables (excel model available upon request) The remainder of the page is intentionally blank Pro Forma Advisors,LLC Page9 PFAID:10-808.11 MEMO- -ls�s Ti Hist oil f.E Mel _. 11 �f i MAits 1. 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N - C _ till 11 ` L . construction"best practices,"that would reduce GHG emissions.These"best practices"represent an improVement above conventional construction practices, and thus are an improvement above "business as usual."Therefore,,impacts would.be.less than significant.. Analysis of.the Proposed SPA Plan Amendment The proposed .project would not expand or increase the development footprint as previously evaluated in the EIR..The proposed plan amendment involves changes to the statistics on the Site Utilization Plan The proposed amendment Would reduce the maximum development level by approximately 163,000 square feet, Due to the reduction:in.total development and average daily trips compared to the approved.project, energy usage and waterdermand.Would be reduced under the proposed project. Therefore, GHG.emissions would be reduced under the proposed project. The GHG reducing project,features contained in the EUC SPA Plan's Sustainability Element would .still be applicable.to the proposed project. No additional global'climate,change impacts would occur and the conclusions and mitigation.measures identified in'the.previously- certified Final EIR remain accurate and applicable to the proposed project. V. CONCLUSION Based on the findings and information contained in the previously-certified EIR, the analysis above, the CEQA statute and State CEQA Guidelines, including Sections 15164 and 151;62, the proposed modifications will not result in any new, increased, or substantially different impacts, otherthan those previously considered and addressed in the Project EIR. The proposed project will result in ,only minor :technical changes or additions which are necessary to make the Environmental Impact Report adequate under CEQA. No changes or additions,to the previously- certified EIR analyses are necessary, nor is there a need for any additional.mitigation measures. Therefore,.a Supplemental` EIR.is not required. This Addendum to the EIR. is the appropriate environmental documentation for the proposed modifications to the project. ,Je-f Ste° n ssociaie Planner .23 June 19, 2018 City: Master Developer: CITY OF CHULA VISTA, a chartered SLF IV -MILLENIA, LLC, California municipal corporation a Delaware limited liability company BY:SLF IV Millenia Investor,LLC, By a Texas limited liability company, Its its sole and managing member BY:Stratford Land Fund IV, L.P., a Delaware limited partnership, its co-managing member BY:Stratford Fund IV GP, LLC, a Texas limited liability company, its general partner By: 1 "Asw4ttl Name: Title: ATTEST: By APPROVED AS TO FORM: APPROVED AS TO FORM: CITY ATTORNEY HECHT SOLBERG ROBINSON GOLDBERG&BAGLEY LLP By By Richard A. Schulman, Attorneys for Master Developer SLF IV- MILLENIA, LLC -6- [notary page to First Amendment to Development Agreement] A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. STATE OF TEXAS ) )ss. COUNTY OF DALLAS ) On July �, 2018, before me, T41(pt 14'Pr(M 5p1A Notary Public, personally appeared personally known to me (s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Texas that the foregoing paragraph is true and correct. WITNESS my hand and official seal. r Signature GLt (b� (Seal) PAIGE ATKINSON Notary ID 9763030 My commission Expires �,,��' January 16.21322 Addi-�ONOL i vtb. 77 CITY COUNCIL AGENDA STATEMENT _ = CITY OF - ffi CHUtAVISTA July 10,2018 File ID: 18-0202 ERRATA SHEET Replace the"Fiscal Impact Analysis(FIA)"Section-beginning on page 8 with the following: Fiscal-impact Analysis(FIA) The Applicant's proposal includes a revised 'Fiscal Impact Analysis (FIA) evaluating the ,proposed amendment (see Fiscal Impact Analysis, Attachment 4). This FIA has been prepared using the City 's new fiscal model which was first provided to the, Applicant in October of last.-year. Staff worked with the Applicant who provided the necessary project-specific inputs to the plan needed to calculate:the C_itys- maintenance costs. It 'is important to note that the FIA presents a projection_ of the anticipated fiscal impacts of -the development, based upon the best information currently available. Actual fiscal impacts as a result of development may varyfrom model outcomes. The'FIA evaluates the following scenarios: 1. Proposed Amendment Maximum Buildout - This scenario assumes development-of the proposed. maximum .buildout, including ' 2.983 residential units and X3.324 million.square Feet of non-residential uses. The non-residential uses . X assumed include approximately 2_7. million square feet of office; X088395.000 square feet of retail uses,.130,000 square feet of civic uses (school and fire station),and a single 135=room hotel(96.000 square feet). 2. 2009 Adopted Plan Maximum Buildout (assumes 500 hotel rooms) -- "This scenario assumes development of the adopted maximum building,including 2,983 residential units and 3.4$7 million square feet of non-residential uses. The hon-residential uses assumed in the 2009 plan include approximately 2.0 million square feet of office, approximately 800,000 square feet of retail.uses, -160,000 square feet of civic uses,and two hotels'totaling 500 rooms (375.000 square feet . 3. 2009 Adopted Plan with reduced Hotel (assumes 135'hotel rooms) -_Inrecogni tion of the fact that since the. original Millenia entitlerrients .were approved the City has approved.three=hotels in addition to-the one approved in Millenia - this scenario looks at the 2009 'full build "scenario but includes.only the 135-room hotel ciurrently under construction (reduction of 365'hotel rooms). Based on the FIA and the assumptions contained therein, all. of the scenarios. above are projected to generate a positive-net fiscal impact to the City by year twe-three (24142020/ 02021). The relative -fiscal performance of the three scenarios over a 30-year buildout term-'are compared in the table below. r i - i Page 1 } 1 1 1 1 11 1 1 11 1 ..���� e; _„�.5,�,,.� •t�� � "p w:�'A'e�-t'3`' `� :::z� a s �-� a`..,,.,, a",`�.." s ��.� �n T'-; Revenues $474_1 $87'8 ;$99.7 $44=311.1 $.12.9 Proposed Amendin'ent . (135 Hotel Rooms) Expense � s ($3 23 1) ($ 61) ($7-16 9) ($7 3) ($7.4) ($7,16) Revenues $2.4 $6.0 $9`9 1$12.0 ;$13.8. $15A 200.9 Adopted Plan (135 Hotel Rooms) Expenses ($2 1) ($4 8) ($7 2) C$7.4) ($?6) ($7 7) a s rr § .Net.Im aot. ..... $0.3.,._._. _.$1.1,. . °$2 7 _ $4'6 ._. .$6 Revenues $14 $7.6 $11.7 $14;0 315.9 $1.7.7 2009 Adopted Plan Expenses ($2 0) ($4 8) ($7 2) ($7.4) ($7 6) ($7.7") (500 Hotel Rooms) t 5._.. $83'-f' $IO 0 The Proposed Amendment(13.5:H6te1 Room) scenario.assumesdevelopment phasing.assummarized.inthe table below. Residential Units 1,596 2,983 :21983. 2;983 2;983 2,983 Hotel Rooms 135 135 135 135 135 135 Non-Residential SF. Hotel SF 96;148 96.148 96.148 96;148 96.148 96.148 88-846 3804 E 46 �8,89 6 Retail&-Hotel SF 189,600 224,.200 221,200 .395.000 '395.000 395.000 64;964 ! 0onn ,#c7,00 sz n cnn 2-99.9-888 2,990,000 :Office SF 1:107,820 1;675,240 1,756;300 1.918:420 2,161;600 2.17 2000 4,048$$ 1;90$46 2, ^6. 46 2 i99,3 6 :�,''� .28,8za °38,846 Total Non=Residential:SF . 1393.568 1.992.588 .2073,648 .2409.568 .2:652,748 3.-193,-148 *Note•Civic uses are.assumed to have no.net fiscal impact and.are;theref6re excluded. The Proposed -Amendment,phasing assumptions can be compared with the assumptions in the 2009 Adopted Plan fiscal analysis,summarized in the table-below. 1 1 ' 1 1 1 • 1 ' 1Year 5 _ .,Year"7 zYear 12Yr.` Year 17: Year>22 Residential.Units 1;245 :1,743 '2;983 .2,983 2;983 Hotel Rooms 250 '500 500, 500 500. Non-Residential SF Hotel SF 187;500 375;000 375,000 375;000. 375,000 Retail SF 73;850 22,1;550 738,500, 883;400 980,000 '0ffice SF 88,650 265,9;5`0 886;5.00 1,552;200: 1,996;000 Total Non-Residential SF 350,0.0.0 862;500 2,000;000 2;810,600 3,351;000 ............ ... _. _.__.___ ___ _.. . . _..... __. Page I.2 Overall, comparing projected net annual fiscal .impacts in year 30 for the 2009 Adopted Plan and the Proposed Amendment ($10.0 million and $5--55_3 million, respectively) indicates'a $4 54_7 million reduced annual positive fiscal impact. It is important to note that a key driver reducing the fiscal benefit to the City between the Proposed Amendment scenario and the 2009 Adopted Plan scenario is Transient Occupancy Taxes, ;and the fact that the City's model attributes very little service costs to hotels. At year 30, approximately$2.3 million of the projected net..h5cal benefit associated with the 2009 Adopted Maximum Buildout Scenario'is attributable to the 365 additional h6tel rooms assumed under that scenario. This is a relevant comparison as it recognizes that the City has not lost the TOT revenues,but rather those revenues have been relocated to other locations in the Eastern Territories where hotels have been added since the entitlements for Millenia were approved in 2009. Replace#1 under the"Developer Agreement"Section on page 10 with the following: Developer Agreement 1: Net Revenue=The first benefit identified in the existing DA was annual net revenue over the cost of providing municipal services of approximately $S.0 million in buildout year 22. As shown above, the updated fiscal impact analysis using a more current fiscal model shows-that the-original project could have resulted in estimated annual net revenues of$10.0 million in year 30. Applying this new fiscal model •to the proposed project amendment, including the reduced non-residential development, the:estimated annual net revenue is-projected to be approximately $5-55_3 million in year 30. While this equates to a reduction of$44_7 million annually from the approved plan,.it still.rOresents,a significantpositive fiscal:impact to the City's General Fund. .Replace the"Ongoing Fiscal Impact"Section beginning on page 11 with the following: ONGOING FISCAL IMPACT As discussed in the Fiscal Impact Analysis section of this report, the Proposed Amendment is projected to result in net positive fiscal impacts throughout the development period, ranging from $4-51_0 million to $5.55_3 million annually. Cumulative impacts of the Proposed Amendment buildout scenario during the term.of the 30-year analysis are anticipated to total approximately $ 57.8 million, with an annual average;positive impact of$ 31_9 million. The table below summarizes the,projected annual net fiscal impact for representative buildout years for the Proposed Amendment,the•2009 Adopted Plan as originally approved (assuming 500 hotel rooms), and i the 2009 Adopted Plan(assuming only the 135 hotel rooms constructed to date). 1 Comparison 6f,modeicid -Year 5 Year'10 'Year,15 Year 20 . Year 25 Year 30 - - _ Proposed Revenues $4 4_1 $7-76_9 $8-.7Z.8 $"9.7 $4�-311.1 $4-3.412.9 Amendment- Expenses $(-3-43 1) $(6-361) $(7-46.9) $C7.3) $(7.4) m $(7:6) 135 Hotel Rooms Net=Im act=` 2009 Adopted Plan Revenues $2.4 $6.0 $9.9 $12.0 $13.8 $15.4 t Expenses $(2.1) $(4..8) $(7.2) $(7.4) $(7.6) $(7.7) F (13S Hotel Rooms) ; Revenues $2.4 $7.6 $11.7 $14.0 $15.9 $17.7 2009 Adopted Plan - (500 Hotel Rooms) Expenses $(2 0) $(4 8) $(7 2) $(7 4) $(7 6) $(7.7)_ Pa g p age I-3- 1 As illustrated in the table above, reducing the-hotel,rooms assumed to be developed by 365 decreases the projected annual positive impact in year 30 by approximately $2.3 million This accounts for lust over under 50% of the .total projected positive impact 'reduction in.year 30 resulting from the Proposed Ameridmerit: .Additional adjustments to the development plan further reduce the year 30-projected:,net ;positive fiscal benefit from,$10.0 million-(2,009 Adopted Plan With 500 hotel rooms) 0$-5-3 million. While.a,comparison of the ;Proposed.Amendment;with the 2009 Adopted Plan (with 500 hotel room's) indicates reduced positive irr►paets of approximately$4 4_7 million annually in year 30,-.'the plan con"inues ' to indicate significant netpositive impacts to the City's General Fund as a result of the Mllenia'project: 'When considering the above, itvs important;to note that the Fiscal njpact Analysis.presents projections' based upon the b6si f inforination currently available.. Actual fiscal.impacts as a result of this development °may:vary from'those indicated.bythe model- Pursuant to Section 4.5 (Operating Deficit) of the MilleniaDevelopment Agreement, the Master developer will.cover the City`s net Iop6rating deficit during the iiiitial,years of"the project(excluding fire servicesImp to a cumulative maximum of$500,000. The amount of the'deficitis io-'be determined via:a f scal'study'to'be prepared by the City'at-the Master .Developer's cost. Per' the. Development Agreement; the first fiscal ,analysis "shall be.conducted':following the end of the fiscal year which is:two (2) years following the-first. occupancy within the Property, and annually thereafter at-the end'of each fiscal"year:" The first.:Millenia. certificate of occupancy was issued to`Fairfield Residenfial, on October 23, 2015. `Based is'date,-the first fiscalanalysis:shall be conducted after-june 30,2018. :Initiatio.n of the;firsf fiscal analysis,is expected,in July of.20.18. Replace Attachment 4 With the revised Fiscal Impact Analysis (FIA) attached. Staff Contact:Stacey Kurz,Senior Project Coordinator i t i i i x .....------ _ -----­ Pag-e 14 Item 8 - Written Communications Leah Larrarte From: Patricia Aguilar Sent: Monday,July 09, 2018 10:38 PM To: Kerry Bigelow Subject: Fwd:Item#8 on July 10th Council Meeting Comment on item 8..... Patricia Aguilar, Councilmember City of Chula Vista Via Smartphone Begin forwarded message: From: Jo Anne Springer Date: July 9, 2018 at 5:31:02 PM PDT To: Mary Salas <msalas(@chulavistaca.aov>, Pat Aguilar<pa ug ilar(@chulavistaca. og_v>, Steve Padilla<spadilla a,chulavistaca.gov>,Mike Diaz<mdiaz@chulavistaca.gov>, John McCann <jmccann chulavistaca. �ov> Cc. > Subject: Item #8 on July 10th Council Meeting Madame Mayor and Council Members: You have a fiduciary responsibility to the City of Chula Vista and the citizens who elected you to represent them. Thus far, you have been exceedingly derelict in your duties in that regard. The fact that previous mayors and councils have been equally derelict, and they most certainly have, does not exculpate you in your dereliction. The City is on the brink of bankruptcy. This is due in large part to the lack of sufficient tax income, and the cost of high government salaries and perks, infrastructure, police and fire protection. Of those last three, the last two are the essential expenses that needs to be met. As a result of the fiduciary incompetence and mis-management of funds available, it has been necessary to raise the sales tax twice in one 12-month period in the hopes of meeting those costs. And the City remains on the brink of bankruptcy. You are to be shamed! It is your responsibility to recruit clean commercial business to the city. You have done little or nothing in this regard. Any attempts that you may have made have been woefully unsuccessful. What is even more egregious is that you have substituted these necessary efforts with accepting paltry developer fees that actually in both the short and the long term cost the city more than any income the developments they build generate. What can you possibly be thinking? It is long past time to do business with developers who are willing to build fewer high density residential units, and more commercial square footage. Those are the developers you should seek. And then you should be recruiting the necessary businesses to occupy that space. i Item 8 - Written Communications If the current developers are not willing to develop here under those terms, find developers who are willing to take smaller profits rather than no profits! It is long past time to stop giving in to the demands of outside interests at the expense of the people who live in this city. I strongly urge you to NOT approve the proposed amendments! Adhere to the maximum amount of commercial space, and the minimum amount of residential units in the Millenia Plan. And then begin doing the job for which you were elected. Sincerely, Jo Anne Springer z Item 8 - Written Communications Leah Larrarte From: Patricia Aguilar Sent: Monday,July 09, 2018 10:34 PM To: Kelly Broughton; Stacey Kurz; Kerry Bigelow Subject: Fwd: DO NOT DECREASE COMMERCIAL SPACE @ MILLENIA! Another Millenia comment Patricia Aguilar, Councilmember City of Chula Vista Via Smartphone Begin forwarded message: From: Patricia Aguilar<PA ug ilarnchulavistaca.gov> Date: Jul 9, 2018a t3:16:33 PM PDT To: > Cc: Patricia Aguilar<PA filar chulavistaca. ov> Subject: RE: DO NOT DECREASE COMMERCIAL SPACE @ MILLENIA! Dear Bettie, Thank you for writing to Councilmember Aguilar with your comments on this topic. I'll make sure she sees your message. Best wishes, Leslie 1YoCf Branscomb Sr. CouriciCAicfe to CfruCa 1lista. City Cauxwi&n.ember Pat-Acgu4ta.r From ] Sent: Saturday, July 07, 2018 11:30 AM To: Mary Salas; Patricia Aguilar; Steve C. Padilla; mdias@chulavistaca.gov; John McCann Subject: DO NOT DECREASE COMMERCIAL SPACE @ MILLENIA! Dear Major & City Council-members; The vote for the above issue is coming up before you & I am urging each of you to remain true to the original plan of commercial space for this project. We need the income from commercial properties to help us begin to dig our way out of the financial hole we are now in & will only get devastatingly worse if we do not plan wisely . Item 8 - Written Communications As a long time citizen of Chula Vista I am appalled that we the citizens have not protested this issue years ago when it could have been corrected with less pain. As one member of a recent meeting stated , she thought those elected would do the right thing for the city & make good judgements for the benefit of everyone. She further stated that she recently saw the budget online & became frightened at what she saw as the state the city is actually in financially. When we all saw the presentation we were equally scared for the future. It was 2008 locally all over again! Will you all rise to the occasion & save us? We are hoping that you will!!!!!! Sincerely, A voter who has never missed an election, Bettie Lupi z Item 8 - Written Communications Leah Larrarte From: Patricia Aguilar Sent: Monday,July 09, 2018 10:32 PM To: Kelly Broughton; Stacey Kurz Cc: Kerry Bigelow Subject: Fwd: Chula Vista's Future...... Comment on Millenia agenda item Patricia Aguilar, Councilmember City of Chula Vista Via Smartphone Begin forwarded message: From: Jerilyn Canfield Date: July 7, 2018 at 8:42:43 AM PDT To: undisclosed-recipients:; Subject: Chula Vista's Future...... Please Do Not approve a change to desperately-needed business/commercial center right on 125 in the east.Our lack of income is responsible for future deficits that will devastate our Parks and Libraries in order to balance the budgets. Tell the council to insist that the developer keep the full 3.4 million and start marketing it to large companies. Sincerely. Jeril n Canfield i Item 8 -.Written Communications Leah Larrarte From: Patricia Aguilar Sent: Monday,July 09, 2018 10:28 PM To: Kelly Broughton; Stacey Kurz Cc: Kerry Bigelow Subject: Fwd: Millenia FYI for public record Patricia Aguilar, Councilmember City of Chula Vista Via Smartphone Begin forwarded message: From: Peter Watry Date: July 9, 2018 at 4:20:44 PM PDT To: Councilman John McCann <imccann cr,chulavistaca.gov>, Mayor Mary Salas <msalas6khulavistaca.gov>, Councilman Steve Padilla<spadilla cr,chulavistaca.gov>, Councilwoman Pat Aguilar<pa-guilar(o-)chulavistaca.gov>, Councilman Mike Diaz <mdi azchulavi staca. ov> Cc: "City Mgr. Gary Halbert" <ghalbert(c7),ci.chula-vista.ca.us> Subject: Millenia The original plan for the Eastern Urban Center("Millenia") called for 3.4 million square feet of commercial of one sort or another. I never did see a breakdown of the details. Now, the developer/staff plan before you wants commercial to be a range of a minimum of about 1.6M and a maximum of 33M. Recognizing that `brick and mortar' retail is no longer a large factor, Crossroads is suggesting a minimum of 2.5 million square feet of commercial. But on page 8 of the Staff Report, it does mention a suggested breakdown of the maximum 3.3 figure - - including"2.55 million square feet of office:" Bingo! That's exactly what you should be aiming for- - office jobs are good jobs, and most people who work in offices can afford to live in Chula Vista- - and office buildings are a good tax base. That's exactly what Chula Vista needs, both as a tax base and a jobs base. And Millenia is surely the last chance Chula Vista have for a significant tax/jobs opportunity. Peter Watry/Crossroads II i \&M WMA, Leah Larrarte From: Kerry Bigelow Sent: Tuesday, July 10, 2018 ISS PM To: Leah Larrarte Subject: FW:Vote No to Reduce Commercial Space at the Millenia Development Kerry Bigelow, MMc City Clerk (619) 407-3590 1 kbigelow@chulavistaca.gov Please note that email correspondence with the Cityof Chula Vista,along with attachments,maybe subject to the California Public Records Act and therefore may be subject to disclosure unless otherwise exempt From: Patricia Aguilar Sent:Tuesday,July 10, 2018 3:05 PM To: Kelly Broughton<kbroughton@chulavistaca.gov>;Stacey Kurz<SKurz@chulavistaca.gov> Cc: Kerry Bigelow<KBigelow@chulavistaca.gov> Subject: Fwd:Vote No to-Reduce Commercial Space at the Millenia Development More on millenia..... Pat Aguilar, Councilmember City of Chula Vista Begin forwarded message: From: Pam Susann <pamelasusann59@gmail.com> Date:July 10, 2018 at.11:20:36 AM PDT To:<msalas@chulavistaca.gov>,<spadilla@chulavistaca.gov>,<paguilar@chulavistaca.pov>, <mdiaz@chulavistaca.gov>, <imccann@chulavistaca.gov> Subject: Vote No to Reduce Commercial Space at the Millenia Development Dear Mayor Salas, John McCann, Steve Padilla, Pat Aguilar and Mike Diaz Tonight, Tuesday, July 10, you will vote on a proposal to reduce the amount of commercial space at the Millenia development. The change is anticipated to reduce projected tax revenues by $4.5 million. Since, this reduction to tax revenues will increase our proposed deficits, I ask 'Lhat you vote NO. Please preserve our library, recreation resources and public works staff. Sincerely, Pamela Susann 305 East Moss Street Chula Vista, CA 91911 ti i i Leah Larrarte From: Kerry Bigelow Sent: Tuesday,July 10, 2018 3:56 PM To: Leah Larrarte Subject: FW: Millenia Kerry Bigelow, Mmc City,Clerk (619) 407-3590 1 kbigelow@chulavistaca.gov Please.note that email correspondence with the City of Chula Vista,along with attachments,may be subjectto the California Public Records Act, and therefore may be subject to disclosure unless otherwise exempt 1 From; Patricia Aguilar Sent:Tuesday,July 10, 2018 1:20 PM To:Stacey Kurz<SKurz@chulavistaca.gov>; Kelly Broughton<kbroughton@chulavistaca.gov> ' Cc: Kerry Bigelow<KBigelow@c hulavistaca.gov> .Subject: Fwd: Millenia Another Millenia comment.... .Pat Aguilar, Councilmember ,city of Chula vista Begin forwarded message: From: David Davis<ded3i@att.net> Date:July 10, 2018 at 12:25:01 PM PDT To: David Davis<ded3i@att.net> Subject: Millenia TO: Mary Salas Pat Aguilar Steve Padilla John McCann Mike Diaz: People who long study,closely follow, and know these issues say: "If Chula Vista reduces Millenia's.retail space, it will lose $4.5 million annually." f i 1 3 i i Our city is already in deep and growing debt, and as it grows you will cut even more staff from our libraries, parks, and other operations vital to, and characteristic of, civilized people. Please do not pass the measure reducing Millenia's retail space! - David E. Davis, registered voter, activist, and Chula Vista resident. j ! i 2 i I ( SVM LO) - WiAY�,-n COMM U VU 1'aittm July 10, 2018 Attn: City of Chula Vista City Council 276 Fourth Avenue Chula Vista, CA To Whom It May.Concern: We are hemlb offer our support of the proposed amendment to the Millenia SPA plan. Here are the reasons why we support this amendment: • The Millenia project has been an economic engine for Chula Vista with more than a billion dollars of investment in completed and ongoing vertical construction projects • It has created thousands of construction jobs and has the potential to create thousands of high paying permanent employment opportunities for the City • It will bring much needed housing, shopping, hospitality and employment opportunities to the-City over the.coming"years. • This project has the potential to be a great success for the City to build on, but to do so it needs to ensure that is remains viable in a very dynamic market and in very dynamic times. Sincerely, Romeo Narvaza Dolly Narvaza r I i i i t CITY COUNCIL r: AGES DA STATEMENT EE L `t } - �`�!� CITY OF CHULAVISTA July 17,2018 File ID: 18-0270 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING AN AMENDMENT TO THE OTAY VALLEY REGIONAL PARK CONCEPT PLAN RECOMMENDED ACTION Council adopt the resolution. SUMMARY In December 2016 the San Diego County Board of Supervisors adopted the Otay Valley Regional Park (OVRP) Concept Plan update,and the Chula Vista City Council adopted the update in July 2017. In October 2017 the City of San Diego City Council adopted the OVRP Concept Plan update,but with an amendment that deleted specific text from the Plan affecting an area entirely within its jurisdiction. As a result,the County and Chula Vista needed to consider adopting the same amendment. ENVIRONMENTAL REVIEW The City of Chula Vista,as a responsible agency,and the County of San Diego,as the lead agency,have found that the Concept Plan update qualifies for a Statutory Exemption pursuant to Section 15262 (Feasibility and Planning Studies) of the California Environmental Quality Act (CEQA) State Guidelines. The Concept Plan update is general in nature, and does not propose to construct park improvements. Prior to the development of any park improvements, detailed development plans will need to be prepared that will require environmental review when the permitting process commences. DISCUSSION In 2015 the OVRP Concept Plan (the"Plan") update project was initiated by the County of San Diego,which required the County,the City of Chula Vista,and the City of San Diego to update the Plan.The County of San Diego adopted the Plan in December 2016, and on July 25, 2017 the Chula Vista City Council adopted the Plan (Attachment 1). However, the City of San Diego's adoption was pending as there were lease discussions between San Diego and the Tac Air Ops for the area labeled Recreation Area#16,described as Skydive San Diego, within the OVRP (Attachment 2). This area is owned by the City of San Diego, but is within the County of San Diego's jurisdiction.The OVRP Concept Plan originally planned for the area to be reclassified as an open space and core preserve designation when the lease between San Diego and Tac Air Ops expires in 2020. Page 1 In October 2017 the City of San Diego adopted a resolution for the Plan with the omission of the following text on Page 48 of the Plan: "This Recreation Area will be reclassified from Recreation Area Open Space/Core Preserve Area at the end of the current lease, in 2020" (Attachments 3 and 4). This omission has no impact on the City of Chula Vista or County of San Diego, and does not establish a significant change in the goals and objectives of the overall OVRP Concept Plan, as .the Plan is consistent between all jurisdictions. Therefore, staff recommends that the City Council adopt this amendment deleting the aforementioned text. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action (specifically, Recreation Area #16 of the Plan). Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act(Cal.Gov't Code§87100,et seq.). Staff is not independently aware, and has not been informed by the Mayor or any Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The Plan update addresses the Healthy Community and Connected Community goals as it seeks to provide recreational opportunities for residents and visitors. CURRENT-YEAR FISCAL IMPACT All staff costs associated with preparing the Plan update are included in the adopted budget. ONGOING FISCAL IMPACT Ongoing land acquisition and implementation of the Plan will be funded through a combination of federal and state grants as well as General Fund city staff services. Future costs for park development and management will be presented to the Parks and Recreation Commission, Planning Commission, and City Council when more information is available. ATTACHMENTS 1.July 25, 2017 City Council Resolution 2. Map of Active Recreation Area 16 3.OVRP Concept Plan Original Text(Page 48) 4.City of San Diego Resolution (with text omission) Staff Contact.Michael Walker,Senior Planner,DSD Advance Planning Division Page 2 RESOLUTION NO. 2017-149 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE OTAY VALLEY REGIONAL PARK CONCEPT PLAN UPDATE WHEREAS, in 1990 the Cities of Chula Vista and San Diego, and the County of San Diego entered into a Joint Exercise of Powers Agreement (JEPA) to initiate and coordinate planning, acquisition and design of the Otay Valley Regional Park (OVRP) for the benefit of their citizens and the public; and WHEREAS, the OVRP is generally located in the southern portion of San Diego County, four miles north of the international border. The OVRP extends over 11 miles from the southeastern edge of the South.Bay Wildlife Refuge through the Otay River Valley to-the_land surrounding the_Otay.Lakes area as-shown on Exhibit A;-and WHEREAS, in 2001 the Cities of Chula Vista and San Diego, and the County of San Diego adopted the OVRP Concept Plan to identify park amenities including open space areas for recreational opportunities, a trail system with staging areas, features such as viewpoints and overlooks, connections to recreation areas adjacent to public lands and trials, and locations for interpretive centers for environmental and educational programs, while protecting environmentally sensitive areas and important cultural resources; and WHEREAS, on November 16, 2016, the City of Chula Vista Parks and Recreation Commission recommended adoption of the OVRP Concept Plan update, to the City Council; and WHEREAS, on June 14, 2017 the City of Chula Vista Planning Commission recommended adoption of the OVRP Concept Plan update, to the City Council; and WHEREAS, the Development Services Director reviewed the proposed action for compliance with the California Environmental Quality Act (CEQA) and has determined that the OVRP Concept Plan update qualifies for a Statutory Exemption pursuant to Section .15262 (Feasibility and Planning Studies) of the CEQA State Guidelines: The Concept Plan update is general in nature, and does not include details on specific park improvements; and WHEREAS, a hearing time and place was set for the City Council for consideration of the OVRP Concept Plan update, and a notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City, at least ten days prior to the hearing; and WHEREAS, the City Council held a duly noticed public hearing on said OVRP Concept Plan update at a time and place as advertised, namely July 25, 2017 at 5:00 p.m. in the Council Chambers located at 276 Fourth Avenue, and said hearing was therefore closed. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby adopt the Otay Valley Regional Park Concept Plan update. Resolution No. 2017-149 Page No. 2 Presented by Approved as to form by GaK Hal b rt en R. Gopgins City Marfager CAtto ey PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 25th day of July 2017 by the following vote: AYES: Councilmembers: Aguilar, Diaz, McCann, and Padilla NAYS: Councilmembers: None- ABSENT: Councilmembers: Salas Mary SlUs, Mayor ATTEST: J. Kerry K. i elow, C, Acting City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) 1, Kerry K. Bigelow, Acting City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2017-149 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 25th day of July 2017. Executed this 25th day of July 2017. Kerry K. Bow, M , Acting City Clerk r to '� #r U t •� .: ��� �'�` o _ N u . LU LLI LLJ zn LU - c s LL O °• '�, . CD akr WW VI �"' '�. �,_� -� � �• -�'� �'b ate'- � �; =� _�.`�I i .ri r � - �.ap4.t�t^'icy' •� u \ i N U i N y �� ,i6� I j, cis. ��, � ��'. n ._j ,• . � �� '=c-� •.� d�' "'meq -'er T rd N `t •� 0 0 i "77 -, - - EXHIBIT B { - - r i �? t4 •r=`#s _ r r�. ,e i y _ ?� ve - a and is used as a landing field for ultra-light aircrafts and parachutists,and I as a U.S. Navy training and operations area'<This Recreation Area will be - - --- -- --- - reclassified From Recreation Area to Open Space/Core Preserve Area at the end of the current lease,in 202W TRAIL CORMORS —Proposed corridors for trails are located in this Segment,and link to regional trails outside the park.There are i approximately 19 miles ofTrail Corridor proposed for this Segment within the Concept Plan Boundary. 'r j: ATrail Corridor loops around the upper and lower reservoirs. ? Another Trail Corridor extends off site to BLM lands to the east and I southeast. i E ° A third Trail Corridor leads north towards Proctor Valley and has J potential to connect to Sweetwater Regional Park. J An additional Trail Corridor connects to a portion of Chula Vista Greenbelt trails in Salt Creek Canyon to the northwest. Trail corridors extending eastward will be evaluated as part of a current 1 planning study, the Otay Ranch Preserve Trail Alignment Study,which is a multi-agency planning effort to ensure trail connections from the Otay Ranch Preserve to regional trails within the OtayValley Regional Park, Sweetwater Loop Trail,and the California Hiking and Riding Trail;as well } as to ensure trail connections to adjacent public trail systems located within the Cities of Chula Vista and San Diego,and on lands owned by the National Wildlife Refuge, California Department of Fish and Wildlife, and BL1. i STAGING AREAS—A local Staging Area is located at Otay Lakes County Park. 3 An equestrian Staging Area is also proposed at Otay Lakes County Park. i i INTERPRETIVE CENTER—Otay Lakes County Park contains a small cultural � w museum to educate park goers on the park's cultural and historic resources. I 1 s j v - (R-2018-109) RESOLUTION NUMBER R- 311345 DATE OF FINAL PASSAGE OCT 13 2011 A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN DIEGO ADOPTING AN UPDATE TO THE OTAY VALLEY ' O REGIONAL PARK CONCEPT PLAN. t ` WHEREAS, the Otay Valley Regional Park(OVRP)is a multi jurisdictional park that is jointly administered by the County of San Diego(County), the City of Chula Vista(Chula Vista) and the City of San Diego(San Diego),referred to collectively as the"Jurisdictions", and WHEREAS,the Otay Valley Regional Park Concept Plan(Plan)is a conceptual level planning document which provides policy recommendations and goals to the Jurisdictions for coordinated land acquisition and development for the OVRP; and WHEREAS,on April 17,2001,the Council of the City of San Diego(City Council) adopted the Plan by Resolution No. R-294777; and WHEREAS, in 2015, staff for the County, Chula Vista, and San Diego commenced the process to update the Plan to'reflect the existing conditions in the area,verify the feasibility of planned land uses,incorporate certain OVRP documents, and revise figures and images(Plan Update); and WHEREAS,on December 14, 2016, the Plan Update was approved by the San Diego County Board of Supervisors; and WHEREAS,on July 25, 2017, the Plan Update was approved by the City Council of the City of Chula Vista; and WHEREAS, San Diego desires to explore possible uses of Recreation Area#16; and -PAGE 1 OF 2- (R=2018-109) WHEREAS, the City Council of the City of San Diego has considered all maps, exhibits, and written documents contained in the file for this project on record in the City of San Diego, .and has considered the oral presentations given at the public hearing;NOW,THEREFORE, ; BE IT RESOLVED,by the City Council of the City of San Diego, that it adopts the update to the Otay Valley Regional Park Concept Plan subject to the deletion of the sentence, 1 "This Recreation Area will be reclassified from Recreation Area to Open Space/Core Preserve Area at the end of the current lease, in 2020"regarding Recreation Area#16.on page 48, a copy " of which is on file in the Office of the City Clerk as Document No. RR- 311345 � 3 APPROVED: MARA W. ELLIOTT,City Attorney I By i Hilda R. Mendoza Deputy City Attorney ' HRM:als:mm 09/25/2017 Or.Dept: Park&Rec. Doc. No.: 1432851 I certify that the foregoing Resolution was passed by the Council of the City of San Diego, at this i meeting of OCT 0 9 2017 ELIZABETH S. MALAND City Clerk _ i By Deput it er Approved: ( 0 A A ✓ (date) kEVIN L..FA LCONER, Mayor Vetoed: (date) KEVIN L. FAULCONER,Mayor -PAGE 2 OF 2- V OCT 09-2017 ' Passed by the Council of The City of San Diego on by the following vote: Councilmembers Yeas Nays Not Present Recused Barbara Bry ❑ ❑ ❑ Lorie Zapf ❑ ❑ ❑ Chris Ward ❑ ❑ ❑ Myrtle Cole ❑ ❑ ❑ Mark Kersey ❑ ❑ ❑ c Chris Cate ❑ ❑ ❑ Scott Sherman ❑ ❑ ❑ David Alvarez ❑ ❑ ❑ Georgette Gomez ❑ ❑ ❑ Date of final passage OCT 13 2017 (Please note:NVhea a.resolution is approved by the Mayor,the date of final passage is the date the approved resolution was returned to the Office of the City Clerk) KEVIN L:FAULCONER AUTHENTICATED BY: Mayor of The City of San Diego,California. ELIZABETH S.MALAND (Seal) City Clerk of The City of San Diego, California. By ,Deputy I Office of the City Clerk, San Diego, California Resolution Number R- 311345 i (R-2018-111) RESOLUTION NUMBER R- 311346 DATE OF FINAL PASSAGE OCT 13 2017 4�tl� � A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN DIEGO DETERMINING THAT THE ADOPTION OF AN UPDATE TO THE OTAY VALLEY REGIONAL PARK CONCEPT PLAN IS STATUTORILY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO PUBLIC RESOURCES CODE SECTIONS 21102 AND 21150 AND.CEQA GUIDELINES SECTION 15262. WHEREAS,the Otay Valley.Regional Park(OVRP) is a multi jurisdictional park that is jointly administered by the County of San Diego and the Cities of Chula Vista and San Diego; and WHEREAS, staff for the County of San Diego and the Cities of Chula Vista and San Diego prepared an update to the Otay Valley Regional Park Concept Plan to reflect the existing . i conditions in the area,verify the feasibility of planned land uses, incorporate certain OVRP documents, and revise figures and images(Project); and j WHEREAS,the California State Legislature,through the California Environmental Quality Act(CEQA),Public Resources Code sections 21000-21177,has determined that CEQA does not apply to various types of projects listed therein; and WHEREAS,California Public Resources Code section 21084 states that CEQA I Guidelines shall list those classes of projects which have been determined not to have a i significant effect on the environment and which shall be exempt from CEQA; and WHEREAS,pursuant to that authority, CEQA Guidelines sections 15260-15285 list the statutory exemptions promulgated by the Califb`nia State Legislature; and -PAGE 1 OF 2- i= (R-2018-111) WHEREAS, the Development Services Department has determined that the Project is statutorily exempt from CEQA pursuant to Public Resources Code sections 21102 and 21150 and CEQA Guidelines section 15262(Feasibility and Planning Studies);NOW,THEREFORE, BE IT RESOLVED,that the Council of the City of San Diego,using its independent judgment, has considered the written record concerning the Project as well as public comment, if any, and determines that the Project is statutorily exempt from CEQA pursuant to Public i Resources Code sections 21102 and 21150 and CEQA Guidelines section 15262. 1 BE IT FURTHER RESOLVED,that the City Clerk is directed to file a Notice of Exemption regarding the Project with the Clerk of the Board of Supervisors for the County of { San Diego. i APPROVED: MARA W. ELLIOTT, City Attorney i By Hilda R. Mendoia 1 Deputy City Attorney HRM:als:mm i 09/25/17 Or.Dept: Park&Rec. Doc.No.: 1432885 I certify that the foregoing Resolution was passed by the Council of the City of San Diego, at this meeting of OCT 0 9 2017 ELIZABETH S. MALAND City Clerk BY Deputy y 12& Approved: (0 /� (date) VINL. FAU11CONER, Mayor Vetoed: (date) KEVIN L. FAULCONER,Mayor -PAGE 2 OF 2- Passed b the Council of The Ci of San Diego on OCT 0 9 2017 i Y City g by the following vote: i Councitmembers Yeas Nays Not Present Recused Barbara Bry ❑ El ❑ Lorie Zapf P1 ❑ ❑ ❑ Chris Ward � ❑ ❑ ❑ Myrtle Cole El ❑ ❑ Mark Kersey El- ❑ ❑ Chris Cate ❑ ❑ ❑ Scott Sherman �/ ❑ ❑ ❑ David Alvarez ❑ ❑ ❑ Georgette Gomez ❑ ❑ ❑ Date of final passage OCT 13 2017 (Please note:IVhen a resolution is approved by the Mayor,the date of final passage is the date the approved resolution was returned to the Office of the City Clerk.) KEVIN L FAULCONFR AUTBEIN ITCATED BY: Mayor of The City of San Diego, California. ELIZABETH S.MALAND (Seal) City Clerk of The City of San Diego,California. By ,Deputy ' Office of the City Clerk, San Diego, California Resolution Number R- 31134.6 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING AN AMENDMENT TO THE OTAY VALLEY REGIONAL PARK CONCEPT PLAN WHEREAS, in 1990 the Cities of Chula Vista and San Diego, and the County of San Diego, referred to collectively as the `'Jurisdictions", entered into a Joint Exercise of Powers Agreement (JEPA) to initiate and coordinate planning, acquisition and design of the Otay Valley Regional Park(OVRP) for the benefit of their citizens and the public; and WHEREAS, the OVRP Concept Plan is a conceptual level planning document which provides policy recommendations and goals to the Jurisdictions for coordinated land acquisition and development for the OVRP; and WHEREAS, the OVRP is generally located in the southern portion of San Diego County, four miles north of the international border. The OVRP extends over 11 miles from the southeastern edge of the South Bay Wildlife Refuge through*the Otay River Valley to the land surrounding the Otay Reservior area; and WHEREAS, on December 14, 2016 the County of San Diego adopted the OVRP Concept Plan update; and WHEREAS, on July 25, 2017 the City Council of the City of Chula Vista adopted.the OVRP Concept Plan update by Resolution No. 2017-149; and WHEREAS; the area labeled Recreation Area #16, described as Skydive San Diego, is owned by the City of San Diego located within the County of San Diego jurisdiction as shown on attached Exhibit A. The OVRP Concept Plan originally planned for the area to be reclassified as an open space and core preserve designation when the lease between the Tac Air Ops (also known as Skydive San Diego) and City of San Diego expires in 2020. A lease renewal is in progress. At such time as this area is not under lease, it would be designated as open space and core preserve in the future; and WHEREAS, the City of San Diego adopted the OVRP Concept Plan update on October 13, 2017 with the omission of the following text on Page 48 of the OVRP Concept Plan: "This Recreation Area will be reclassified from Recreation Area Open Space/Core Preserve Area at the end of the current lease, in 2020" as shown on attached Exhibit B; and WHEREAS, the extended lease is of no consequence to the City of Chula Vista or County of San Diego; therefore, the deletion of the aforementioned text is immaterial and does not establish a significant change in the goals and objectives of the overall OVRP Concept Plan; and WHEREAS, so that the OVRP Concept Plan update is consistent between all Jurisdictions and because the deletion of the aforementioned text is immaterial and does not establish a significant change in the goals and objectives of the overall OVRP Concept Plan, staff recommends that the City Council adopt this amendment deleting the aforementioned text; and WHEREAS, the City Council reviewed the proposed action for compliance with the California Environmental Quality Act (CEQA) and has determined that the action qualifies for a Statutory Exemption pursuant to Section 15262 (Feasibility and Planning Studies) of the CEQA State Guidelines. The Concept Plan update is general in nature, and does not include details on specific park improvements. NOW THEREFORE BE IT RESOLVED that the City Council hereby adopt the subject amendment to the Otay Valley Regional Park Concept Plan. Presented By: Approved as to form by: Gary Halbert Glen R. Googins City Manager City Attorney Resolution No. Page 3 PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, this day of , 2018, by the following vote, to-wit: AYES: NOES: ABSENT: ABSTAIN: Mary Casillas Salas, Mayor ATTEST: Kerry Bigelow, City Clerk � ,..' `3� rc ,� t' �"�• `�`' L. 'S` i` •+L,(�.i a a �_. r'C..�•"i'.�,� tom{ r �• �. '�. LA cc Of 0ui - to e F 44 , ui y c I bbd 't Q � . Jag "`•: ?<.�.*r` .�.., J � n. Q j ® �"��.�] �7� .� � r•.n-y y .�.C�`"`' �.� gyp; `�' y oY �`,i lam}' .�� �"Y.•.*•, :•£� � a'> � _�� �r A � L:l-k�1 (� € f � � ��� . , w LO NR a LLCD ca T fs i , at*lam '" Q C � � -�'S •.�..fi-�c � ,gyp l -• � .�+; s €' ,•' �a� 2 rtiti 'f�'`a 3 Sr y r \ LLI U K K O U d =� ¢ fn J 1 ��•`�µ7� -- Q aoo_ 1,01mI mol F- • - EXHIBIT B r n ` k a''w"`R�'"" rt'r• n,,,.'n ;�Vis.�..,,�'.•,�, � � L�. i+,.. �``�z'.'� ,.,,r� 4 v 1 f • m x y f s f ( and is used as a landing field for ultra-light aircrafts and parachutists,and i i as a U.S. Navy training and operations arca,This Recieation.Area will be,'�reclassificd from}2ecreation Area to 0-pen Space/Core Preserve Area at,' l `tithe end of the current lease,in 2020.' TP./AIL CORRMORS _Proposed corridors For trails are located in ment, and link to regional trails outside the parlc.There are this Seg approximately 19 miles of Trail Corridor proposed for this Segment within the Concept Plan Boundary. i . ( o A Trail Corridor loops around the upper and lower reservoirs. ( Another Trail Corridor extends off site to BLM lands to the east and southeast. ° A third Trail Corridor leads north towards Proctor Valley and has potential to connect to Sweetwater Regional Park. An additional Trail Corridor connects to a portion of Chula Vista Greenbelt trails in Salt Creek Canyon to the northwest. j - 1 1 ard will be evaluated as part of a current Trail corridors extending eastw ! planning study, the Otay Ranch Preserve Trail Alignment Study,which is a multi-agency planning effort to ensure trail connections from the Otay Reich Preserve to regional trails within the OtayValley Regional Park, Sweetwater Loop Trail,and the California Hiking and Riding Trail;as well i t: as to ensure trail connections to adjacent public trail systems located within F { the Cities of Chula Vista and San Diego,and on lands owned by the National 4 Wildlife Refuge, California Department of Fish and Wildlife,and BLM. STAGING AREAS—A local Staging Area is located at Otay Lakes County Park. An equestrian Staging Area is also proposed at Otay Lakes County Park. I INTERPRETIVE CENTER—Otay Lakes County Park contains a small cultural museum to educate park goers on the park's cultural and historic resources. • , f i ;I_M_.01 3 f M ° CITY COUNCIL 41. AGENDA STATEMENT CITY OF CHUtA VISTA July 17,2018 File ID: 18-0137 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS, AWARDING THE CONTRACT FOR THE "CMP REHABILITATION OUTSIDE RIGHT-OF-WAY FY2017/2018 - MEASURE P (DRN0211)" PROJECT TO SPINIELLO COMPANIES IN THE AMOUNT OF$4,169,940 RECOMMENDED ACTION Council adopts the resolutions. SUMMARY On May 30, 2018,the Director of the Department of Engineering&Capital Projects received two (2) sealed bids for the "CMP Rehabilitation Outside Right-of-Way FY 2017/2018 - Measure P (DRN0211)" project. The project will rehabilitate portions of the City's storm drain system outside the public street right-of-way and includes the lining of existing corrugated metal pipes (CMP) at various locations throughout the City of Chula Vista. The proposed Resolution,if approved,would accept bids,award the contract for this project to the lowest responsive bidder, Spiniello Companies in the amount of $4,169,940; and authorize the expenditure-of-all available-contingencyfunds'in an amount not to exceed$848,310. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed project for compliance with CEQA and has determined that the project qualifies for Class 1 Categorical Exemptions pursuant to Section 15301, Class 1 -[b] (Existing Facilities) of the CEQA State Guidelines. Consistent with Section 15301(b), the proposed actions would not result in a significant effect on the environment, create a cumulative impact, damage a scenic highway, be located on site pursuant to Section 65962.5, or cause a substantial adverse change in the significance of a historical resource. The project involves no expansion of an existing use. ` Thus,no further environmental review is necessary. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not Applicable. DISCUSSION Based on the result of inspections performed with a closed-circuit television (CCTV) camera, a number of CMPs conveying storm water runoff have.been identified requiring rehabilitation. These pipes are Page � 1 8 deteriorated and need to be relined to contain and convey storm water runoff and prevent structural failure of the pipes. The Contractor will be allowed to perform work at night to reduce traffic congestions within business areas of the City. Night work within residential neighborhoods will not be allowed. On April 6, 2018, the Department of Engineering & Capital Projects advertised the annual "CMP Rehabilitation Outside Right-of-Way FY 17/18- Measure P (DRN0211)" project. The bids from the two (2) contractors were as follows: NO. CONTRACTOR BID 1 Spiniello Companies— Pomona, CA $4,169,940.00 2 Downstream Services — Escondido, CA $6,289,056.94 The low bid submitted by Spiniello Companies is more than the Engineer's estimate of$4,058,353.20 by $111,586.80, or approximately 3%. Staff reviewed the low bid and determined that the bid package is complete,with no errors or omissions. On May 9, 2017, City Council approved Resolution 17-0174 to adopt ordinance (Ord. 3400 § 1, 2017) of the City of Chula Vista and amend Chapter 2.56 of the Chula Vista Municipal Code - "Purchasing System". This ordinance amends the change order limits and authorizes the City Engineer to approve change orders up to the remaining CIP budget available for the CIP project.Authorizing the Director of Engineering and Capital Projects/City Engineer to approve change orders will allow the project to continue without delay should unforeseen circumstances arise resulting in increased project costs-during the course of construction, as well as make adjustments to bid item quantities. Unforeseen conditions include such items as utility conflicts,hazardous materials,unexpected underground conflicts,unexpected pavement conditions etc. Staff recommends accepting the bids and awarding the contract to Spiniello Companies in the amount of $4,169,940. Spiniello Companies is a licensed General Engineering Contractor (License No.751598). Their license status is current and active per the State of California Department of Consumer Affairs Contractor State License Board. Disclosure Statement Attachment 1 is a copy of the Contractor's Disclosure Statement. Wage Statement The Contractor that is awarded the contract and,its subcontractors are required to pay prevailing wages to persons employed by them for work under this contract. The prevailing wage scales are those determined by the Director of Industrial Relations,State of California. DECISION-MAKER CONFLICT Not Applicable Page 2 a Staff has reviewed the decision contemplated by this action and has determined that the decision concerns repairs, replacement or maintenance of existing streets, water, sewer, storm drainage or similar facilities, per California Code of Regulations Title 2, section 18702.2(c)(1),and consequently the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11) is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act(Cal.Gov't Code§87100,et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The "CMP Rehabilitation Outside Right-of-Way FY 2017/2018 - Measure P (DRN0211)" project supports the "Strong & Secure Neighborhoods"goal as it will ensure the successful conveyance of storm water runoff into and through the City's storm drain system,to designated outlet points. Proper management of storm water runoff protects private and public properties from flood damage, thus preserving the quality of life for residents and creating an appealing community for the residents to live,work,and play. CURRENT-YEAR FISCAL IMPACT Sufficient Measure P funds are available in DRN0211 to complete the project. Therefore, there is no additional impact to the Measure P Fund. The following table summarizes the project construction costs. FUNDS REQUIRED FOR CONSTRUCTION A. Contract Amount $4,169,940 B. Contract Contingency 20% $848,310 C. Construction Inspection Staff Time $150,000 D. Design & Survey Support $87,553 TOTAL FUNDS REQUIRED FOR CONSTRUCTION 1 $5,255,803 ONGOING FISCAL IMPACT "Upon completion of the project,the improvements will require routine maintenance. ATTACHMENTS Attachment 1 -Contractor's Disclosure Statement Staff Contact:Michael Benoza,Assistant Engineer Page 3 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING THE CONTRACT FOR THE "CMP REHABILITATION OUTSIDE RIGHT-OF-WAY FY2017/2018 — MEASURE P (DRN0211)" PROJECT TO SPINIELLO COMPANIES IN THE AMOUNT OF $4,169,940 WHEREAS, Chapter 2.56 of the Chula Vista Municipal Code authorizes the City to contract for public works; and s WHEREAS, on April 6, 2018, the Department of Engineering and Capital Projects solicited bids for the "CMP Rehabilitation Outside Right-of-Way FY2017/2018 — Measure P (DRN0211)"project in accordance with Chula Vista Municipal Code section 2.56.160.A; and WHEREAS, on May 30, 2018, the Director of the Department of Engineering and Capital Projects received two (2) sealed bids for the "CMP Rehabilitation Outside Right-of-Way FY2017/2018—Measure P (DRN0211)"project; and WHEREAS, the apparent low bid for the project was submitted by Spiniello Companies in the amount of $4,169,940, which is above the Engineer's estimate of $4,058,353.20 by $111,586.80 (approximately 3%above the Engineer's estimate); and WHEREAS, staff has determined that the bid submitted by Spiniello Companies is responsive in all material respects to the bid specifications/requirements, and that Spiniello Companies is the lowest responsive and responsible bidder; and WHEREAS, staff recommends awarding the project contract to Spiniello Companies in the amount of$4,169,940. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista awards the contract for the "CMP Rehabilitation Outside Right-of-Way FY2017/2018 — Measure P (DRN0211)" project to Spiniello Companies in the amount of$4,169,940. BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista authorizes the Mayor, or designee, to execute the project contract on behalf of the City of Chula Vista, and directs a copy to be kept on file with the City Clerk. Presented by Approved as to form by William S. Valle Glen R. Googins Director of Engineering and Capital Projects City Attorney CITY OF CHULA VISTA DISCLOSURE STATEMENT Pursuant to Council Policy 101-01, prior to any action upon matters that will require discretionary action by the Council,Planning Commission and all other official bodies of the City of Chula Vista(the"City"), a statement of disclosure of certain ownership or financial interests, payments, or campaign contributions for a City election must be filed.The following information must be disclosed: 1. List the names of all persons having a financial interest in the property that is the subject of the application or the contract, e.g.,owner,applicant, contractor, subcontractor,material supplier. Emil J. Solimine-President!Secretary Emil W. Solimbe- CF /Treasurer 2. If any person* identifiied pursuant to item one (1) above is a corporation or partnership, list the names of all individuals with a two thousand dollars ($2,000) investment in the business (corporation/partnership)entity. not applicable 3. If any person* identified pursuant to item one (1) above is a non-profit organization or trust, list the names of any person sewing as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. not applicable 4. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. Emil J. Solimine-President! Secretary _.mil W. & .Umine^CE01Tmasurer _ 5. Has any person* associated with this contract had any financial dealings with an official** of the City as it relates to this contract within the past twelve(12)months? Yes No X 31 Q:4_Projed3V)]?N0211-Cb1P RIv IAH 1,Y17-134Bid PackrigeiParrsll)RN0211 Prevailing Wage Aid Package(Mar 2013).docx I E Il'Yes,briefly describe the nature of the financial interest the official**may have in this contract. j I i I 6. Have you made a contribution of more than two hundred Cil:y dollars ($250) within the past twelve (12) months to a current member of the Chula Vista City Council?No X Yes _If yes, which Council member? 7. Havc you provided more than three hundred forty dollars ($340), or an item of equivalent value, to an official" of the City in the past twelve (12) months? (This includes being a source of income,money to retire a legal debt,gift,loan, etc.)Yes— No X If Yes,which official"and what was the nature o F item provided? .Date: Na:z /10V -44;-;z Signature of C tracta Applican Spiniello Companies Abdou Seydi Name of Company,Firm or Entity Print or type name of Contractor/Applicant Division VP Title * Person is defined as: any individual, firm, co-partnership,joint venture, association, social club, fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality,district, or other political subdivision, or any other group or combination acting as a unit. Official includes, but is not limited to: Mayor, Council member, Planning Commissioner, Member of a board,commission, or committee of the City,employee,or staff members, 32 9:1 1'mjects4DRN021 I-CMP RE11AH FYI 7-184Bid Pac4-agel7'ai-tsiDRN0211 Prevedlixg Wage Bid Package(A4ar 201 S).docx ' - CITY COUNCIL AGENDA STATEMENT --- - CIN OF CHULA VISTA July 17,2018 File ID: 18-0198 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE SUBMITTAL OF ACTIVE TRANSPORTATION PROGRAM - CYCLE 4 GRANT APPLICATIONS AND STATING THE CITY'S ASSURANCE TO COMPLETE THE PROJECTS RECOMMENDED ACTION Council adopt the resolution. SUMMARY In the interest of obtaining grant funding toward roadway improvement projects,City staff prepared two(2) applications for the statewide Active Transportation Program-Cycle 4 grant administered by CalTrans and the California Transportation Commission. The applications are for the F Street Promenade - Phase 1 and the Main Street Streetscape projects. ATP funds are dedicated to projects that encourage increased use of active modes of transportation. ENVIRONMENTAL REVIEW The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15301 (Existing Facilities); Section 15303 (New Construction or Conversion of Small Structures); Section 15304 (Minor Alterations to Land); Section 15183 (Projects Consistent with a Community Plan or Zoning); and Section 15061(b)(3)because it creates a balanced, connected, safe, and convenient transportation network designed to serve all users via walking, biking,public transit,and driving.It can also be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Further, there is no possibility that the proposed activity would create cumulative impacts that are significant, and there are no unusual circumstances that would cause any such significant impacts. Thus, no further environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION On May 16, 2018, the California Transportation Commission (CTC) announced the Active Transportation Program (ATP) - Cycle 4 Call for Projects. The purpose of the ATP is to increase the roadway usage by all Page 11 active modes of transportation,giving preference to areas of high pedestrian and bicycle activity,as well as disadvantaged communities. This call for projects is targeted for approximately$440M in Federal,and State S131 and SHA funding. The funding/programming years are expected to include FY19/20, 20/21,21/22 and 22/23. For ATP-Cycle 4,City staff worked in collaboration with Urban Corps of San Diego County,Tree San Diego and the Center for Sustainable Energy on the preparation of two grant applications. It is recommended that the City apply for grant funding of the following projects: Proposed Project 1: F STREET PROMENADE-PHASE 1. Project Location: Overall Project-FStreet(Bay Boulevard to Third Avenue) Phase 1 -F Street(Bay Boulevard to Broadway) Project Description: The goal of the F Street Promenade project is to develop a balanced, connected, safe, and convenient transportation network designed to serve all users, regardless of their age or ability, that will also provide multi-modal access (via walking,biking, and transit) to downtown Chula Vista on Third Avenue, the Chula Vista Civic Center,the E Street Trolley Station (one block north of study area),and the Chula Vista Bayfront. The need for the project is identified in both the City's General Plan and the Urban Core Specific Plan. Proposed improvements include enhancing pedestrian and bicycle facilities by expanding the existing five- foot wide sidewalk to create a 12'wide multi-use pathway on both sides of the street. The project will also include landscaped and lighted parkways, bulb-outs,new or improved crosswalks and the undergrounding of overhead utilities. To provide added space for these improvements, vehicular travel lanes would be reduced to one lane in each direction. On-street parking will remain,but will be relocated to the area of the eliminated travel lane closest to the curbline. Since ATP requires all projects to be completed within four years of being'awarded funding, staff recommends applying for grant funding to cover preliminary engineering, right-of-way, and construction costs for only Phase 1 of the F Street Promenade project(from Bay Boulevard to Broadway). There will be a $3,200,000 local match provided by the Utility Underground Program 20A fund. Total-Estimated Cost: $16,400,000(PE,R/W, UUD, CON) Phase 1 -Estimated Cost: $8,080,000 (PE,R/W,UUD,CON) (ATP Contribution: $4,780,000/Local Contribution: $3,300,000) Proposed Project 2: MAIN STREET STREETSCAPE-PRELIMINARY ENGINEERING Project Location: Main Street(I-5 Freeway to 1-805 Freeway) Page 2 Project Description: The Main Street Streetscape project encourages active transportation and proposes improvements needed to provide a more complete circulation system for pedestrians, bicyclists, transit users and automobile traffic. The project presents a balanced transportation system that improves pedestrian safety,alerts drivers to share the road with bicyclists, connects Main Street to the Regional bicycle network, and improves exposure for local businesses and destinations. Proposed improvements include continuous sidewalks and Class II bicycle facilities along the entire corridor, with segmented raised medians to create pedestrian refuge areas. The project will also include landscaped and lighted parkways,bulb-outs and new bus shelters with bike racks. Due to the overall length(approximately 3 miles)and complexity of the corridor,staff recommends applying for ATP grant funding to cover the Preliminary Engineering phase of the overall Main Street Streetscape project. With completed construction plans and right-of-way determinations, the City will be in a more competitive position to receive construction funding with future grant opportunities. Total Estimated Cost: $25,800,000(PE, R/W, CON) Preliminary Engineering: $2,000,000 (ATP Contribution: $2,000,000) DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action.Consequently,this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov't Code §87100,et seq.). Staff is not independently aware, and has not been informed by any City Council member,of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals:Operational Excellence,Economic Vitality,Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The F Street Promenade and Main Street Streetscape projects support the Strong and Secure Neighborhoods goal. These projects facilitate mixed-use, pedestrian and bicycle oriented development, that incorporates the City's Complete Streets policy by addressing the needs for all modes of transportation for residents and visitors of the City alike. CURRENT-YEAR FISCAL IMPACT There is no impact to the General Fund. If a grant is awarded, staff will return to Council with a recommendation to accept and appropriate grant funds. — — Page 13 ONGOING FISCAL IMPACT Upon construction completion,the projects will require routine maintenance. ATTACHMENTS 1. F Street Promenade-Phase 1 Exhibit 2. Main Street Streetscape-Exhibit Staff Contact:Patrick C. 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RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE SUBMITTAL OF ACTIVE TRANSPORTATION PROGRAM - CYCLE 4 GRANT APPLICATIONS AND STATING THE CITY'S ASSURANCE TO COMPLETE THE PROJECTS WHEREAS, on May 16, 2018, the California Transportation Commission (CTC) announced the Active Transportation Program(ATP) - Cycle 4 Call for Projects; and WHEREAS, the purpose of the ATP is to increase the roadway usage by all active modes of transportation, giving preference to areas of high pedestrian and bicycle activity, as well as disadvantaged communities; and WHEREAS, ATP — Cycle 4 Call for Projects is targeted for approximately $440M in Federal, and State SB 1 and SHA funding. WHEREAS, if grants are awarded, this Resolution is also intended to authorize the Director of Engineering & Capital Projects or his designee the power to execute in the name of the City of Chula Vista all grant documents, including but limited to, applications, agreements, amendments and requests for payments, necessary to secure grant funds; and WHEREAS, the following infrastructure grant applications will be submitted: 1. F Street Promenade—Phase 1 2. Main.Street_Streetscape—Preliminary Engineering _NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it authorizes the submittal of Active Transportation Program — Cycle 4 Grant Applications for F Street Promenade — Phase 1 and Main Street Streetscape — Preliminary Engineering, and states the City's assurance to complete these projects. Presented by Approved as to form by William S. Valle Glen R. Googins Director of Engineering & City Attorney Capital Projects CITY COUNCIL 4 * AGEN ®A STATEMENT 4 ,� _... CITY OF CHU[AVISTA July 17,2018 File ID: 18-0163 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO COUNCIL POLICY 102-02 FLAGS,BANNERS-IN PUBLIC RIGHT-OF-WAY,AUTHORIZING A PERMIT PROCESS FOR THE TEMPORARY PLACEMENT OF BANNERS ON CITY-OWNED STREETLIGHT STANDARDS, FENCES OR OTHER CITY-OWNED PROPERTY RECOMMENDED ACTION Council adopt the resolution. SUMMARY The City Manager's Office.has amended policy 102-02 Flags, Banners-in Public Right-of-Way to include the temporary placement of banners on City-owned streetlight standards, fences or other City-owned property. The City Manager or designee will manage the administrative process of approving the issuance of banner permits on City-owned streetlight standards,fences or other City-owned property. The City Manager or designee,shall have the authority to designate City-owned streetlight standards,fences or other City-owned property within the public right-of-way that are available for the display of banners. The administrative process of approving the issuance of banner permits pertains to banners that have a public interest message.Banners that do not fall within this public interest message will have to be presented to City Council for approval. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act(CEQA) and has determined that the project qualifies for a Statutory Exemption pursuant to State CEQA Guidelines Section 15268 (Ministerial Projects) because it is temporary and would not have any permanent effects on the environment.Thus,no further environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. Page 1 DISCUSSION On January 6, 1970 the City Council by Resolution No. 5499,adopted Council Policy No. 102-02 to establish regulations for display flags and banners in the public right-of-way. The original purpose of the policy was to establish a process for permitting the display of the American flag in the public right-of-way. In recent years, various agency partners have expressed the desire to display temporary banners in the public right-of-way on City-owned streetlight standards,fences or other City-owned property.The purpose of these banners has been to promote a public interest message within the City. Policy 102-02 Flags,Banners-in Public Right-of-Way was amended to provide a streamlined process for the approval of banners within the City of Chula Vista that includes banners in the public right-of-way on City- owned streetlight standards, fences or other City-owned property. Amendments to this policy update the banner permit requirements in several areas including the following: City Manager or designee shall have the authority to designate City-owned streetlight standards, fences or other City-owned property within the public right-of-way that are available for the display of banners Entities desiring to display a banner or banners on City-owned streetlight standards shall obtain a banner permit, including or in combination with an encroachment permit, from the City Manager or designee. The banner(s) shall comply with all City-approved policies regarding permissible specifications for banner displays The City Manager, or designee, has the authority to create an administrative policy regarding permissible banner specifications including but not limited to those related to acceptable designs, dimensions, materials,and logos/trademarks/servicemarks. In addition to the above, a banner may be approved by the City Manager or designee for display on a streetlight standard, fence or other City-owned property under the policy only where it: Promotes a"public interest message" - Will be displayed for no more than sixty(60) days. DECISION-MAKER CONFLICT Staff has determined that the action contemplated by this item is ministerial,secretarial,manual,or clerical in nature and, as such, does not require the City Council members to make or participate in making a governmental decision, pursuant to California Code of Regulations Title 2, section 18704(d)(1). Consequently,this item does not present a conflict of interest under the Political Reform Act(Cal. Gov't Code §87100,et seq.). Staff is not independently aware, and has not been informed by any City Council member,of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals:Operational Excellence,Economic Vitality,Healthy Community, Strong and Secure Neighborhoods and a Connected Community.The proposed actions support the Economic Vitality strategy as they would create an environment for organizations to promote public interest messages in the public right-of-way, and the Connected Community Strategy as it promotes a manner for these organizations to connect with our community and enrich the community's quality of life. CURRENT-YEAR FISCAL IMPACT There are no anticipated fiscal impacts in the current fiscal year. ONGOING FISCAL IMPACT There are no anticipated ongoing fiscal impacts. ATTACHMENTS Policy 102-02 Staff Contact:Olga Berdial ----------------- ----- -----..--........... ---- - ------- -- ------------ --------------- ------ Page 3 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO COUNCIL POLICY 102-02 FLAGS, BANNERS - IN PUBLIC RIGHT-OF-WAY, AUTHORIZING A PERMIT PROCESS FOR THE TEMPORARY PLACEMENT OF BANNERS ON CITY- OWNED STREETLIGHT STANDARDS, FENCES OR OTHER CITY-OWNED PROPERTY WHEREAS, Chula Vista Municipal Code (CVMC) section 2.04.010 authorizes the City Council to adopt by resolution necessary and desirable policies pursuant to the CVMC and instructs that such policies shall be maintained in the City Council Policy Manual; and WHEREAS, the City of Chula Vista works with numerous agency partners to provide information to the public; and WHEREAS, agency partners have asked to display public-interest informational banners on City-owned property within the public rights-of-way; and WHEREAS, the City of Chula Vista desires to formalize an administrative policy authorizing the issuance of banner permits as they pertain to the placement of banners with a public interest message on City-owned property within the public rights-of-way; and WHEREAS, the proposed policy requires the agency partners to create the banners to be authorized for placement and pay all production and installation costs associated therewith; and WHEREAS, the proposed policy requires the agency partners to indemnify the City of Chula Vista, and provide insurance coverage naming the City of Chula Vista as an additional insured, for all actions and omissions related to obtaining a banner permit and the purchase, installation, maintenance, and removal of a banner authorized for placement under the policy; and WHEREAS, the proposed policy allows the display of banners for no more than 60 days; and WHEREAS, the proposed policy reserves to City the authority to remove banner displays and/or to require the agency partners to remove banner displays; and WHEREAS, there is no ongoing fiscal impact by approving the changes to the proposed policy. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it approves the amendment to Council Policy 102-02 Flags, Banners — In the Public Right- of-Way, in the form provided. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it directs the amended Council Policy 102-02 Flags, Banners — In the Public Right-of-Way to be maintained in the City Council Policy Manual on file with the Office of the City Clerk. Presented by Approved as to form by Gary Halbert Glen R. Googins City Manager City Attorney COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: FLAGS,BANNERS-IN PUBLIC RIGHT-OF-WAY POLICY EFFECTIVE NUMBER DATE PAGE 102-02 01-06-70 1 OF 2 ADOPTED BY: Resolution No. 5499 DATED: 01-06-70 AMENDED BY: BACKGROUND Various individuals and organizations have expressed the desire to display banners in the public rights-of-way. The following policy establishes regulations for such displays. PURPOSE Establishing the policy of the City of Chula Vista (City) concerning permission to install flags and banners in the public right-of-way. POLICY Temporary Banners on City Property in the Public Rights-of-Way 1. The City Manager, or designee, has the authority to approve and issue a permit("Banner Permit"), which includes an encroachment permit or is in combination with an encroachment permit, authorizing the temporary display of banners within the public right-of-way, including but.not limited to on City-owned streetlight standards, City-owned fences, and other City- owned property within the public right-of-way. 2. The City Manager, or designee, has the authority to designate locations that are available for the temporary display of banners within the public right-of-way. 3. The City Manager, or designee, has the authority to create an administrative policy regarding permissible banner specifications including but not limited to those related to acceptable designs, dimensions, materials, and logos/trademarks/servicemarks. 4. In order to display a banner within the public right-of-way, an applicant must obtain a Banner Permit that shall include, without limitation, the following requirements: a. Permittee is required to display banners in accordance with this policy and all other City policies regarding banner displays. b. Permittee is authorized to display banners only during the term identified in the Banner Permit. No term shall be for a period of more than sixty(60) days. c. Permitee is responsible for the purchase, installation, maintenance, and removal of banners (including all mounting and related hardware) at permittee's sole cost. d. Permittee is required to install, maintain, and remove banners with a person and/or entity approved by the City. Such approval by City shall not relieve permittee of any responsibility or cost associated with the installation, maintenance, or removal of the banner. e. Permittee is required to notify the City prior to proceeding with any installation, maintenance, or removal of a banner. f. Permittee is required to repair and/or remove banners upon request of the City. Permittee is required to complete such repair or removal within forty-eight (48) hours COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: FLAGS,BANNERS-IN PUBLIC RIGHT-OF-WAY POLICY EFFECTIVE NUMBER DATE PAGE 102-02 01-06-70 2 OF 2 ADOPTED BY: Resolution No. 5499 DATED: 01-06-70 AMENDED BY: of receipt of notice from City. If a banner display is not timely or adequately repaired or removed, City is authorized to repair or remove such banner display at permittee's sole cost. Notwithstanding the issuance of any permit, City is authorized to remove any banner display in the event of an emergency or other exigent circumstance. g. Permittee is required to defend, hold harmless, and indemnify the City of Chula Vista for all actions and omissions of permittee, its agents, employees, and contractors, that are related to or connected with a Banner Permit or the purchase, installation, maintenance, or removal of a banner under this policy. h. Permittee is. required to procure and maintain general liability and other necessary insurance, as determined by City, naming the City of Chula Vista and its elected officials, appointed officials, and employees as Additional Insureds. 5. To approve a Banner Permit, the proposed banner display must contain a "Public Interest Message". As used in this policy, a"Public Interest Message" means: a. An official sign or notice for the purpose of carrying out a public official's official duty or responsibility; b. An informational sign or notice for a City event, policy, or program; c. An informational sign or notice for an event, policy, program, or purpose that is Sponsored or Endorsed by the City; d. An informational sign or notice for a program or purpose of a charitable organization that provides social services and is funded in whole or in part with federal, state, or local government funding; or e. An.informational sign or notice promoting a special event that is approved by City in accordance with City's special event policies. As used in this policy, "Sponsored" means the City provides significant staff support or services, or both, and funding from the General Fund. For purposes of this policy, a purpose or event may be sponsored only by resolution of the City Council. As used in this policy, "Endorsed" means the City provides limited staff support or services at the direction of the City Manager, or designee. I certify that this is the true and correct version of said Policy, adopted by the City Council of the City of Chula Vista on this date Signed: Dated: CITY COU NCI L AGENDA STATEMENT lw``h CITY OF CHULAVISTA July 17, 2018 File ID: 18-0267 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MODIFYING THE APPENDIX TO THE LOCAL CONFLICT OF INTEREST CODE TO ADD THE POSITIONS OF CITY ATTORNEY INVESTIGATOR, CITY LIBRARIAN, CONSTITUENT SERVICES REPRESENTATIVE, DIRECTOR OF COMMUNITY SERVICES, PRINCIPAL TRAFFIC ENGINEER, PARKS AND RECREATION ADMINISTRATOR, PUBLIC WORKS SUPERINTENDENT, REVENUE MANAGER, AND STORMWATER PROGRAM MANAGER TO THE LIST OF OFFICIALS WHO ARE REQUIRED TO FILE PERIODIC STATEMENTS OF ECONOMIC INTERESTS AND DESIGNATING THOSE FILERS AS "LOCAL AGENCY OFFICIALS" FOR PURPOSES OF AB 1234, THEREBY REQUIRING THEM TO PARTICIPATE IN MANDATED ETHICS TRAINING RECOMMENDED ACTION Council adopt the resolution. SUMMARY The Political Reform Act requires every local agency to amend its Conflict of Interest Code when change is necessitated by changed circumstances.The proposed resolution adopts an amended appendix to the City's Conflict of Interest Code to add the positions of City Attorney Investigator, City Librarian, Constituent Services Representative, Director of Community Services, Principal Traffic Engineer, Parks and Recreation Administrator, Public Works Superintendent, Revenue Manager, and Stormwater Program Manager to the list of officials that are required to file periodic statements of economic interest, and establishes the disclosure categories under which the employees would be required to file. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section-1:5378(b)-(5) of the State-CEQA Guidelines because it involves only amendments to the local-conflict - of interest code to add the charter review commission members to the list of required filers of periodic statements of economic interests; and therefore is an organizational or administrative activity of government that will not result in a direct or indirect physical change in the environmental; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. Page 11 DISCUSSION On March 21, 2000, the Council adopted Ordinance No. 2807, adopting by reference the standardized conflict of interest code contained in Title 2 of the California Code of Regulations, §18730, and any amendments thereto that are adopted by the Fair Political Practices Commission. The ordinance requires that the Council set forth by resolution the officials and designated employees who are required to file statements of economic interests and the disclosure categories under which each such official and designated employee shall file. The following positions were recently added and, after reviewing the duties of the positions with input from the appropriate department, staff recommends the following positions be added to the list of designated filers: City Attorney Investigator, City Librarian, Constituent Services Representative, Director of Community Services, Parks and Recreation Administrator, Principal Traffic Engineer, Public Works Superintendent, Revenue Manager, and Stormwater Program Manager. The resolution also designates the filers as "local agency officials" for the purpose of A131234, thereby requiring them to participate in the mandatory ethics training. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently,the 500-foot rule found in California Code of Regulations Title 2,section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act(Cal. Gov't Code§87100,et seq.). Staff is.not independently aware, and has not been informed by any City Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Adoption of this item support's the City's goal of providing responsible public service and fostering public trust through an open and ethical government. CURRENT-YEAR FISCAL IMPACT Adoption of the proposed resolution will have no impact on the general fund. ONGOING FISCAL IMPACT There is no ongoing fiscal impact. ATTACHMENTS 1. Exhibit A—List of Designated Filers Staff Contact.Leah Larrarte x2300 Page 12 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MODIFYING THE APPENDIX TO THE LOCAL CONFLICT OF INTEREST CODE TO ADD THE POSITIONS OF CITY ATTORNEY INVESTIGATOR, CITY LIBRARIAN, CONSTITUENT SERVICES REPRESENTATIVE, DIRECTOR OF COMMUNITY SERVICES, PRINCIPAL TRAFFIC ENGINEER, PARKS AND RECREATION ADMINISTRATOR, PUBLIC WORKS SUPERINTENDENT, REVENUE MANAGER, AND STORMWATER PROGRAM MANAGER TO THE LIST OF OFFICIALS WHO ARE REQUIRED TO FILE PERIODIC STATEMENTS OF ECONOMIC INTERESTS AND DESIGNATING ,THOSE FILERS AS "LOCAL AGENCY OFFICIALS" FOR PURPOSES OF AB 1234, THEREBY REQUIRING THEM TO PARTICIPATE IN MANDATED ETHICS TRAINING WHEREAS, the Political Reform Act (California Government Code sections 87100 through 91014), requires certain officials and candidates to file Statements of Economic Interests (Form 700) and requires local government agencies to adopt and promulgate conflict of interest codes; and WHEREAS, the City Council adopted Ordinance No. 2807, adopting by reference the standardized conflict of interest code contained in Title 2 of the California Code of Regulations, section 18730, and any amendments thereto that are adopted by the Fair Political Practices Commission; and WHEREAS, the ordinance requires that the City Council set forth by resolution the officials and designated employees who are required to file statements of economic interests and- the disclosure categories under which each such official and designated employee shall file; and WHEREAS, the Political Reform Act requires every local agency to review its Conflict of Interest Code periodically to determine if amendments are necessary; and WHEREAS, the City Attorney and the City Clerk have reviewed the Code and its Appendix, consulted with Department Directors, and determined that amendments to the Appendix of the Code are necessary; and WHEREAS, the City Council desires that all City employees who are required to file Form 700 under the City's Conflict of Interest Code be designated as "Local Agency Officials," as defined in Government Code §53234(c)(2), thereby requiring them to participate in the ethics training mandated by AB 1234; and WHEREAS, the list of officials, candidates and designated employees of the City of Chula Vista who are required to file periodic statements of economic interests, and the disclosure categories under which each such official, candidate or designated employee is required to file, was presented to the City Council and is attached hereto as Exhibit A and made a part of this Resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby modifies the appendix to the local Conflict of Interest Code to amend the list of officials, candidates and designated employees who are required to file periodic statements of economic interests, and the disclosure categories for said filers, in the form presented and as reflected in Exhibit A to this resolution, a copy of which shall be kept on file in the Office of the City Clerk. Presented by Approved as to form by Kerry K. Bigelow, MMC Glen R. Googins City Clerk City Attorney EXHIBIT A OFFICIALS REQUIRED TO FILE PURSUANT TO GOVERNMENT CODE §§ 87200, et seq. The following officials shall file periodic statements disclosing certain economic interests (commonly referred to as "700 Forms'') with the Fair Political Practices Commission, as required by California Government Code §§87200— 87210: Mayor and City Councilmembers Candidates for Elective Office City Manager City Attorney Director of Finance/City Treasurer Planning Commission Members In addition, each official falling within any of the above-listed categories, except "Candidates for Elective Office;" is required to comply with the ethics training requirements of California Government Code §§53234, et seq. DESIGNATED EMPLOYEES REQUIRED TO FILE UNDER THE CITY OF CHULA VISTA CONFLICT OF INTEREST CODE Each City employee whose position title is listed below shall file a 700 Form under the designated disclosure category (as set forth in Chula Vista Municipal Code §2.02.030) and is required to comply with the ethics training requirements of California Government Code §§53234, et seq. Where `'Full Disclosure" is indicated, it implies that the disclosure categories are 1, 2, 5, and 7. PositionTitle..................................................................................................Disclosure Cate ory Administrative Services Manager............................................................................................1, 2, 5 Animal Care Facility Administrator ....................................................................................1, x, 6, 7 AssistantChief of Police......................................................................................................1, 2, 6, 7 Assistant City Attorney.............................................................................................Full Disclosure AssistantCity Clerk.................................................................................................................152, 6 Assistant City Manager.............................................................................................Full Disclosure Assistant Director of Development Services.......................................................................1, 2, 6, 7 Assistant Director of Engineering............................................................................................1, 2, 5 Conflict of Interest Code—Designated Positions Adopted by City Council on[DATE],Resolution No.2018-XXX PositionTitle..................................................................................................Disclosure Cate:zory Assistant Director of Finance....................................................................................Full Disclosure Assistant Director of Human Resources..................................................................................1. 3. 5 Assistant Director of Public Works .........................................................................................1, 2, 5 Assistant Director of Recreation..........................................................................................1. 2. 6, 7 AssistantPlanner..........................................................................................................................3, 4 AssociateEngineer.......................................................................................................................3. 4 Associate Plan.Check Engineer...................................................................................................1, 2 AssociatePlanner.........................................................................................................................3, 4 BenefitsManager.............................................................................................................................5 Budget & Analysis Manager..................:..................................................................Full Disclosure Building Inspection Manager...........................................................................................................3 Building Inspector(all levels)..........................................................................................................3 Building Official/Code Enforcement Manager............................................................................1, 2 BuildingProject Manager........................................................................................................3. 4. 5 Chiefof Police.....................................................................................................................1. 2. 6, 7 Chiefof Staff.............................................................................................................Full Disclosure Chief Sustainability Officer.................................................................................................1. 2. 6. 7 Citv Attornev InvestiRator........................................................................................Full Disclosure CityClerk.................................................................................................................................1. 2. 6 CitvLibrarian...................................................................................................................................6 Code Enforcement Officer(all levels).............................................................................................3 CollectionsSupervisor.....................................................................................................................3 Constituent Services Manager..................................................................................Full Disclosure Constituent Services Representative.........................................................................Full Disclosure Council Assistant......................................................................................................Full Disclosure Cultural Arts Program Manager...................................................................................................2, 7 Deputy City Attorney(all levels)..............................................................................Full Disclosure Deputy City Manager................................................................................................Full Disclosure DeputyFire Chief....................................................................................................................1, 2, 6 Development Services Counter Manager....................................................................................3, 4 Conflict of Interest Code—Designated Positions Adopted by City Council on[DATE].Resolution No.2018-XXX Development Services Department Director.......................................................................1, 2, 6, 7 Director of Community Services..............................................................................Full Disclosure Director of Economic Development....................................................................................1, 2, 6, 7 Director of Engineering/City Engineer................................................................................1, 2, 6, 7 Director of Human Resources..................................................................................................1, 3, 5 Director of Information Technology................................................................................................6 Directorof Library.......................................................................:.......................................1, 2, 6, 7 Directorof Public Works.........................................................................................................1, 2, 5 Directorof Recreation...............................................................................................:..........1, 2, 6, 7 EMS Nurse Coordinator Emergency Services Coordinator ...........:........................................................................................6 Environmental Health Specialist......................................................................................................3 Environmental Services Manager............................................................................................3, 6, 7 Environmental Sustainability Manager....................................................................................3, 6, 7 FacilitiesManager............................................................................................................................5 Facility& Supply Specialist .......................................................................................................... 6 Finance and Purchasing Manager.............................................................................Full Disclosure FireBattalion Chief.........................................................................................................................6 Fire Captain (80 HR Training Division only)..................................................................................6 FireChief.................................................................................................................................1, 25 6 FireDivision Chief.......................,...........................................................................................1, 2, 6 Fire Inspector/Fire Investigator(all levels)..............................................................................3, 4, 6 Fire Prevention Engineer/Fire Investigator..............................................................................3, 4, 6 FirePrevention Aide........................................................................................................................3 Fiscal and Management Analyst......................................................................................................5 Fiscal Debt Management Analyst....................................................................................................5 FleetInventory Control Specialist...................................................................................................5 FleetManager..................................................................................................................................5 HousingManager.............................................................................................. ...................1, 2, 6, 7 Human Resources Operations Manager...........................................................................................5 Information Technology Manager....................................................................................................6 Conflict of Interest Code—Designated Positions Adopted by City Council on[DATE],Resolution No.2018-XXX LandscapeArchitect.....................................................................................................................3, 4 LandscapePlanner.......................................................................................................................3, 4 LawOffice Manager........................................................................................................................6 Librarian (all levels, except hourly).................................................................................................6 Library Digital Services Manager....................................................................................................6 ManagementAnalyst.......................................................................................................................5 Marketing and Communications Manager...................................................................................3, 5 OpenSpace Manager...................................................................................................................3, 5 Park Ranger(excluding hourly) ......................................................................................................3 ParkRanger Supervisor...................................................................................................................3 ParksManager .........................................................................................................................1, 2. 5 ParksOperations Manager.......................................................................................................1, 2, 5 Parks and Recreation Administrator................................................................................................6 Performance and Organizational Development Manager................................................................5 PlanCheck Supervisor.................................................................................................................1, 2 PlanningManager........................................................................................................................1, 2 Police Administrative Services Administrator.....................................................................1. 2. 6, 7 PoliceCaptain......................................................................................................................1. 2. 6, 7 PoliceTechnology Manager....................................................................................................3, 4, 5 PolicyAide................................................................................................................Full Disclosure PrincipalCivil Engineer...........................................................................................................3, 4. 5 Principal Economic Development Specialist...............................................................................1. 2 Principal Landscape Architect.....................................................................................................1, 2 PrincipalLibrarian.......................................................................................................................... 6 PrincipalManagement Analyst....................................................................................................3. 5 PrincipalPlanner................................................:.........................................................................1. 2 Principal Project Coordinator ..................................................................................................1, 2. 7 Principal Recreation Manager..........................................................................................................6 PrincipalTraffic Engineer........................................................................................................3. 4. 5 Procurement Specialist..............................................................................................Full Disclosure Project Coordinator(all levels)....................................................................................................2, 7 Conflict of Interest Code—Designated Positions Adopted by City Council on[DATE].Resolution No.2018-XXX Public Works Inspector(all levels)..........................................................................................3, 4, 5 PublicWorks Manager............................................................................................................1, 2, 5 Public Works Superintendent ..........................................................................................................6 Purchasing Agent......................................................................................................Full Disclosure RealProperty Manager............................................................................................................1, 2, 6 RevenueManaeer............................................................................................................................6 Risk Management Specialist................................................................................................... 1, 2 RiskManager...............................................................................................................................1, 2 Senior Assistant City Attorney.................................................................................Full Disclosure SeniorBuilding Inspector................................................................................................................3 SeniorCivil Engineer...............................................................................................................3, 4, 5 Senior Code Enforcement Officer ..............................................................................:................3, 4 Senior Council Assistant........................... ..............................................................Full Disclosure Senior Economic Development Specialist...............................................................................1, 2, 7 Senior Fire Inspector/Investigator............................................................................................3, 4, 6 SeniorGraphic Designer..................................................................................................................5 SeniorLand Surveyor..................................................................................................................4, 5 Senior Landscape Inspector.....................................................................................................3, 4, 5 SeniorLibrarian...............................................................................................................................6 Senior Management Analyst............................................................................................................5 Senior Open Space Inspector........................................................................................................3, 5 SeniorPark Ranger..........................................................................................................................3 Senior Plan Check Engineer........................................................................................................3, 4 SeniorPlanner..............................................................................................................................1, 2 Senior Procurement Specialist..................................................................................Full Disclosure SeniorProject Coordinator......................................................................................................1, 2, 7 Senior Public Works Inspector................................................................................................3, 4, 5 Senior Recreation Manager..............................................................................................................6 Senior Risk Management Specialist............................................................................................1, 2 Special Events Coordinator..............................................................................................................3 Stornwater Program Mana2er.................................................................................................3. 4. 5 Conflict of Interest Code—Designated Positions Adopted by City Council on[DATE],Resolution No.2018-XXX Supervising Public Safety Analyst........................:..................................................................3, 4, 5 Transportation Engineer...........................................................................................................3, 4, 5 Veterinarian (Permitted, all levels, except hourly)......................................................................3, 6 Wastewater/Stormwater Operations Manager.........................................................................1, 2, 6 Board and Commission Members: Board of Appeals and Advisors Members.......................................................................2, 5 Boardof Ethics Members ................................................................................................1, 2 Civil Service Commission Members Charter Review Commission Members........................................................Full Disclosure Districting Commission Members................................................................Full Disclosure Growth Management Oversight Commission Members.................................................2,4 Historic Preservation Commission..................................................................................1, 2 Mobilehome Rent Review Commission Members Oversight Board to the Successor Agency to the Redevelopment Agency..Full Disclosure Consultants*..............................................................................................................Full Disclosure HearingOfficers........................................................................................................Full Disclosure *Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the code, subject to the following limitation: The City may determine, in writing, that a particular consultant, although a '*designated position,- is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The determination shall be included in the contract by which the consultant is hired by the City. The City's determination is a public record. Conflict of Interest Code—Designated Positions s Adopted by City Council on[DATE];Resolution No.2018-XXX CITY COUNCIL : k F AGENDA STATEMENT CITY OF CHULAVISTA July 17,2018 File ID: 18-0221 TITLE A. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 19.58 (USES) TO ADD SECTION 19.58.440 (MOBILE FOOD FACILITIES),AMENDING CHAPTER 8.20 (FOOD VENDORS), AMENDING CHAPTER 5.62 (VENDING VEHICLES), AMENDING CHAPTER 10.52 (STOPPING, STANDING,AND PARKING),AND AMENDING CHAPTER 5.07 (MASTER TAX SCHEDULE) (FIRST READING) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CHAPTER 14 (PLANNING FEES) OF THE CITY'S MASTER FEE SCHEDULE TO ESTABLISH MOBILE FOOD FACILITY PERMIT FEES RECOMMENDED ACTION Council conduct the public hearing,place the ordinance on first reading,and adopt the resolution. SUMMARY The City is experiencing a surge of mobile food facilities that operate on public and private property with limited regulatory standards. To facilitate mobile food facility commerce, the City needs to protect the public by ensuring these facilities operate in a safe manner and do not create a nuisance or hazard. Staff is proposing amendments to the Chula Vista Municipal Code (CVMC), by adding a new Mobile Food Facility Ordinance to Chapter 19.58 (Uses) and amending Chapters 8.20, 5.62, and 10.52 regarding food vending, and vending vehicles, and stopping/parking respectively. In addition, staff is proposing to amend CVMC Title 5 to clarify continued applicability of the existing business license tax for mobile food facilities and amend the Master Fee Schedule to establish Mobile Food Facility permit fees. ENVIRONMENTAL REVIEW The Project is a legislative activity that qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15061(b)(3). — - - -- -- -Environmental-Determination-The City Council finds that the adoption of this ordinance is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Therefore,pursuant to Section 15060(c)(3) of the CEQA Guidelines, the action is not subject to CEQA;therefore,no further environmental review is required. The City Council reviewed the proposed legislative action for compliance with the California Environmental Quality Act (CEQA) and determined that the action is not a "Project" as defined under Section 15378 of the Page 1 State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the action is not subject to CEQA. BOARD/COMMISSION/COMMITTEE RECOMMENDATION On February 28, 2018 the Planning Commission recommended adoption of the ordinance to City Council (Attachments 1 and 2). The proposed ordinance that the Planning Commission recommended included omissions of sections in Chapter 8.20 regarding vending vehicles; however, staff reviewed the omissions and determined that most should remain, as they are defined and operate different from mobile food facilities. The retention of the sections does not affect the purpose and intent of the Mobile Food Facility Ordinance. The San Diego County Airport Land Use Commission reviewed the ordinance and determined that it is consistent with Airport Land Use Compatibility Plan (APLUCP) (Attachment 3). DISCUSSION CVMC Section 19.58.440 (Mobile Food Facilities) The City's zoning code provides a regulatory process for pushcarts on private property and in the public right-of-way, but currently does not regulate mobile food facility vending on public or private property. The proposed ordinance will create a new section; CVMC Section 19.58.440,to address these uses on public and private property. The proposed code amendments are intended to differentiate between the City's mobile food/beverage vending regulations that limit the sale or distribution of merchandise, and services from vehicles which dispense freshly prepared and pre-packaged food and beverages (e& ice cream trucks),and mobile food facilities by creating new zoning regulations and processes for permit approval for mobile food facility activity in the City. Reasonable regulations are necessary to ensure that mobile food facilities operate in accordance with health, safety and traffic laws of the state and the City of Chula Vista's parking requirements; do not cause public safety problems by contributing to traffic congestion or by creating pedestrian and vehicular conflicts;and do not disturb the quiet use and peaceful enjoyment of residential neighborhoods. Therefore, the regulations described in the attached ordinance are in accordance with the authority granted in Section 22455 of the California Vehicle Code,which allows the driver of any commercial vehicle engaged in vending upon a street to vend products on a street in a residential zone and lawfully parking adjacent to the curb. A local authority may also adopt additional requirements for public safety by regulating the type of vending and the time, place, and manner of vending from vehicles upon any street. Additionally, California Health and Safety Code section 114315 allows a mobile food facility to operate within 200 feet of an approved and readily available toilet, and handwashing facility to ensure that restroom facilities are available to facility employees when the mobile food facility conducts business for more than a one-hour period. These amendments will require mobile food facilities to obtain a Vending Permit through a ministerial process that includes securing a business license,as required in CVMC Section 5.62,obtain permission from a property owner,and possess a County health permit among other requirements. These amendments will also require a property owner who would like to host mobile food facilities on their premises, to obtain a Hosting Permit. Mobile food facilities that vend in the public right-of-way are governed by the California Vehicle Code and by new CVMC Section 19.58.440 that regulates the time, place, and manner to protect public health and safety.Listed below are key features of the new ordinance: • Requires annual Vending and Hosting permits for mobile food facilities; and • Requires a valid commissary agreement; and • Requires a valid County Health permit;and • Limits the amount of outside furniture;and • Requires a valid business license; and Page 2 • Requires compliance with performance standards;and • Prohibits mobile food facilities on vacant lots or gas service stations; and • Requires property owner permission; and • Requires that mobile food facilities be an accessory use to a primary use on-site;and • Requires a waste receptacle; and • Requires a restroom facility for vending employees Permit process: Mobile food facility vendors would be required to obtain a Vending Permit, and a City of Chula Vista business license. Property owners who host a mobile food facility would be required to obtain a Hosting Permit to allow a mobile food facility to operate on their property. Hosting Permits would not be required for public special events, private event catering, active construction sites, or institutions such as schools, religious facilities,colleges or hospitals. The application packet submittal requirements would include: the application form; site plan (Hosting Permit only); proof of a County Health permit (Vending Permit only); proof of a commissary agreement(Vending Permit only), Indemnification Agreement(Attachment 4),and a fee. Vending and Hosting permits would be processed by Development Services as a ministerial action and expire annually. Permit Fees: As proposed, Resolution B amends Chapter 14 (Planning Fees) of the City's Master Fee Schedule to establish annual Mobile Food Facility Vending and Hosting permit fees. The estimated reasonable cost of providing the associated services has been calculated using the most recent Development Services Fee Study hourly rates and is summarized in the table below (see Attachment 5 for Cost of Service Analysis). Annual fees of $135 and $250, are recommended for Vending and Hosting permits, respectively (Attachment 6). Total Estimated Proposed Staff Time Cost of Service Fee Vending Permit 0.75 Hours $137.27 $135.00 Host Permit 1.25 Hours $253.58 $250.00 Enforcement: While enforcement of mobile food facility regulations is expected to be more challenging than typical enforcement for violations at fixed locations; violators will be subject to enforcement action by the Code Enforcement Division; the Police Department; the County of San Diego, for health permit violations; and potentially be subject to fines and permit revocation procedures. Mobile food facility vendors are required to park, and service their vehicles at the commissary location in the agreement that is submitted with the vending permit application. CVMC Chapter 5.62 Chapter 5.62 of the CVMC currently addresses vending vehicles used to sell,give away,or display any goods other than foodstuffs. The proposed amendments to Chapter 5.62 clarify the applicability of this Chapter to only vendors of non-food goods (does not apply to mobile food facilities or vendors of prepackaged food goods). CVMC Chapter 8.20 Chapter 8.20 of the CVMC currently addresses vending vehicles that sell,give away,display,or offer for sale both prepared (e.g. catering trucks, bakery trucks, or ice cream trucks) and unprepared (e.g. raw or unprepared fruits, vegetables, produce, meats, fish, poultry, or seafood) foodstuffs. Historically, the City has primarily permitted vending vehicles, as defined in Chapter 8.20. The new CVMC Section 19.58.440 - Page 13 addresses mobile food facilities, which are differentiated from vending vehicles, by including a definition for these facilities in Chapter 8.20.The proposed amendment adds CVMC Section 8.20.015 to establish that a mobile food facility is not a vending vehicle for purposes of Chapter 8.20. CVMC Section 10.52.200 The proposal also includes an amendment to CVMC Section 10.52.200 to establish that a mobile food facility is not subject to time limit provision of this section as defined in the added Section 19.58.440. CVMC Section 5.07.030 The proposed ordinance amends CVMC Section 5.07.030 (Master Tax Schedule) to add references to the newly created CVMC Section 19.58.440 and mobile food facilities. This action does not establish a new tax, but instead clarifies continued applicability of the existing tax to all food vending vehicles (whether permitted under Section 8.20.020 or 19.58.440). Public Outreach: Staff presented the Mobile Food Facility Ordinance to the Third Avenue Village Association (TAVA) Board of Directors and received their support for mobile food facilities to vend on private property and at special events. At TAVA's request, staff held a public workshop on November 7, 2017 and received input from business owners along Third Avenue.The ordinance was heard by the Planning Commission following the workshop on November 8th, but decided to continue the hearing and requested that staff hold an additional workshop to get more input from the public. On January 31, 2018 staff held a second citywide publically noticed workshop to explain and clarify the purpose and intent of the proposed ordinance. Discussion points included the ordinance's background, Vending and Hosting Permit regulations, permitted locations, permitted and unpermitted operation, and enforcement, followed by a question and answer period. The concerns raised included, ordinance enforceability, use of extension cords, and host and vendor accountability; the concerns did not require significant ordinance revisions; however, staff committed to bring the ordinance back after one year for review,and to further consider the use of extension cords. Staff also worked together with San Diego United Food Truck Association and California Restaurant Association representatives to address their interests and obtain input; both associations support the ordinance. Additionally,staff presented the draft ordinance to the Development Services Citizen Oversight Committee; following discussion and review,the Committee recommended adoption of the ordinance. The proposed Mobile Food Facility Ordinance, if adopted, will encourage fair, safe, and equitable business practices employed by mobile food vendors and businesses that host food vending activities. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently,the 500-foot rule found in California Code of Regulations Title 2,section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act(Cal.Gov't Code§ 87100,et seq.). Staff is not independently aware, and has not been informed by any City Council member,of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The Mobile Food Facility Page 14 Ordinance supports the Economic Vitality goal as the ordinance will strengthen the City's economy by supporting and advancing existing businesses and encouraging entrepreneurial opportunities for new small business owners. CURRENT-YEAR FISCAL IMPACT All staff costs associated with preparing the Mobile Food Facility Ordinance are included in the adopted budget. Approval of Resolution B supports appropriate cost recovery for providing Vending and Hosting permitting services. ONGOING FISCAL IMPACT With approval of Resolution B,costs associated with issuing Vending and Hosting permits will be recovered through the adopted fees. Long term economic impacts are anticipated to be positive but cannot be reasonably projected at this time. ATTACHMENTS 1. Planning Commission Resolution MPA17-0009 2. Planning Commission Minutes 3. Airport Land Use Commission Letter 4. Indemnification Agreement S. Cost.of Service Analysis 6. Master Fee Schedule (Chapter 14) Staff Contact.Michael Walker,Senior Planner,DSD Advance Planning Division ._..-Page 5 i RESOLUTION NO. MPA17-0009 RESOLUTION OF THE CITY OF CHULA VISTA PLANNING COMMISSION RECOMMENDING THAT THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPT AN ORDINANCE AMENDING THE CHULA VISTA MUNICIPAL CODE BY ADDING SECTION 19.58.440 (MOBILE FOOD FACILITIES); AND AMENDING CHAPTERS 8.20 (FOOD VENDORS); 5.62 (VENDING VEHICLES); AND 10.52 (STOPPING, STANDING, AND PARKING) WHEREAS, the City is experiencing a surge of mobile food facilities that operate on private and public property without regulatory standards; and WHEREAS, staff identified the need for a new Mobile Food Facility ordinance as there currently are no land use regulations for operating these facilities on private or public property within the City; and WHEREAS, staff prepared a draft Mobile Food Facility ordinance to better regulate safe and equitable operation of these facilities on private and public property by requiring a ministerial permit process; and WHEREAS, mobile food facilities provide diverse dining options for the general public at permitted special events on public or private property; and WHEREAS, mobile food facilities provide an opportunity for entrepreneurs to operate small businesses, as well as for brick and mortar restaurants to expand into other locations or new markets; and WHEREAS, California Health and Safety Code section 114315 establishes local regulatory authority over mobile food facilities and allows mobile food facilities to operate in accordance with local codes, ordinances and regulations; and WHEREAS, Section 22455 of the California Vehicle Code authorizes the City to regulate the time, place and manner of vending from mobile food facilities in the public right-of-way for public safety; and WHEREAS, staff presented the draft ordinance to the Development Services Oversight Committee which recommended approval; and WHEREAS, the Director of Development Services reviewed the proposed legislative action for compliance with the California Environmental Quality Act (CEQA) and determined that the action is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore,pursuant to Section 15060(c)(3) of the State CEQA Guidelines the action is not subject to CEQA. In addition, notwithstanding the foregoing, the Director of Development Services has 1 !i I PC Resolution MPA 17-0009 February 28,2018 Page-2- also determined that the action qualifies for an Exemption pursuant to Section 15061(b)(3) of the State CEQA Guidelines. Therefore,no further environmental review is required; and WHEREAS, a hearing time and place was set by the Planning Commission to consider the Chula Vista Municipal Code amendments and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City, at least ten(10) days prior to the hearing; and WHEREAS, the Planning Commission held a drily noticed public hearing to consider said code amendments at the time and place as advertised in the City Council Chambers, 276 Fourth Avenue, and said hearing was thereafter closed. NOW, THEREFORE, BE IT RESOLVED that the Planning Commission hereby recommends that the City Council of the City of Chula Vista adopt the ordinance amending various sections of the Chula Vista Municipal Code related to mobile food facilities. BE IT FURTHER RESOLVED THAT a copy of this Resolution be transmitted to the City Council. Pre n d by: Approved as to form by: Kel ro n, FSLA Glen G'&ggins Director of Development Services City Attdrney �--- -, PASSED AND APPROVED BY THE PLANNING COMMISSION OF THE CITY OF CHULA VISTA, CALIFORNIA, this 28th day of February 2018,by the following vote, to-wit: AYES: Burroughs, Calvo,.Milburn, Nava, Zaker NOES: n/a ABSENT: Anaya, Gutierrez ��� p� G�-L-/0 ABSTAIN: n/a PW Gabe Gutt rre hair ATTEST: Pout7u uo_,�2(11_1�U_Q�_ Patricia Laughlin, Secretary J CITY OF CHULA VISTA 1 1 I ~✓� 3 1 1 ♦ 1 I I 11 1 I �, ! `'< Planning Commission Vin ttfes REGULAR MEETING OF THE CITY OF CHULA VISTA PLANNING COMMISSION February 28, 2018 Council Chambers 6:00 p.m. Public Services Bldg A 276 Fourth Avenue CALL TO ORDER MEMBERS PRESENT: Commissioners Burroughs, Calvo, Milburn, Nava, Zaker MEMBERS ABSENT: Commissioner Anaya and Chair Gutierrez MOTIONS TO EXCUSE: Excuse Anaya and Gutierrez Motion by Calvo; Second by Zaker Motion passed 5-0-0 PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE OPENING STATEMENT: 1. APPROVAL OF MINUTES: January 24, 2018 Motion by Milburn; Second by Burroughs Motion passed 4-0-1 (Nava abstained) PUBLIC COMMENTS: An opportunity for members of the public to speak to the Planning Commission on any subject matter within the Commission's jurisdiction, but not an item on today's agenda. Each speaker's presentation may not exceed three minutes. There were none Planning Commission Minutes February 28,2018 Page 2 PUBLIC HEARINGS The following items) have been advertised as public hearing(s) as required bylaw. If you wish to speak on any item, please fill out a "Request to Speak form (available in the lobby) and submit it to the Board Secretary prior to the meeting. 2. PUBLIC HEARING Consideration of amendments to the Chula Vista Municipal Code (CVMC) to.: 1) add'Section 19.58.440 (Mobile Food Facilities); and 2) amend Chapters 8.20 (Food Vendors), 5.62(Vending Vehicles), and 10.52, (Stopping, Standing, and Parking). I` I Resolution of the City of Chula Vista Planning Commission recommending that the City Council of the City of Chula Vista adopt an ordinance amending the Chula Vista Municipal Code by adding Section 19.58.440, (Mobile Food Facilities); amending Chapters 8.20 (Food Vendors); 5.62 (Vending Vehicles); and 10.52, (Stopping, Standing, and Parking). i Project Manager: Michael Walker, Senior Planner Staff Recommendation:. That the Planning Commission recommend to the City Council adoption of the proposed CVMC amendments. Michael Walker gave a presentation that included the background that began with complaints regarding food trucks. The City Council directed staff to create food truck regulations. This process was started approximately three years ago and included reviewing regulations from other regulations, having meetings with food truck owners; restauranteurs and other stakeholders. Two ordinances were presented to the Planning Commission in November 2017, however the Planning Commission continued the item and requested additional public outreach. ` i Additional public outreach was done on January 31, 2018 with a widely publicized workshop to explain and clarify the intent and purpose of the ordinance. The result was that the public wanted reassurance that the ordinance would 1) be enforceable 2) hold the host and vendors accountable and 3) there was concern by restaurant owners regarding food trucks being parked on Third Avenue. Another issue was the use of extension cords, which staff does not recommend at this time. There were no issues discussed at the workshop that would necessitate any major changes to the ordinance as written. However, staff did commit to reevaluate the ordinance in one year. f 1 F I { f I Planning Commission Minutes February 28,2018 Page 3 The intent of this ordinance is to 1) Benefit the community 2) Provide entrepreneurial opportunities 3) Enable brick and mortar restaurants to serve at different locations 4) Attract more business to restaurants and breweries 5) Regulate food trucks on private and public property as well as in the right-of-way The purpose of regulation is to: 1) Protect the public by ensuring that food trucks conduct business in a safe manner 2) Ensure compliance with health, safety and traffic laws and the City's parking ordinances 3) Promote fair business practices 4) Prevent traffic congestion and pedestrian/vehicular conflicts 5) Maintain quiet and peaceful use of property in residential neighborhoods i Walker reviewed the responsibilities that go with a "host/vendor' license and what is allowed with the issuance of a permit i.e. belly bars, canopies, and signage. Not allowed are extension cords, exterior heaters or generators or impacting on-site parking. Other items regarding the ordinance were explained and available on the audio tape of the meeting. Two ordinances were brought to the Planning Commission at the November meeting, however it was requested to have one ordinance, so they have been combined into the current version brought forward tonight. QUESTIONS TO STAFF Questions to staff included discussion on: • Vending from the curbside only? How will that work in the case of diagonal parking. • Food trucks not permitted at gas stations • Generators and/or self-contained food trucks and extension cords. • The diagonal parking on Third Avenue • Parking in large lots i.e. Home Depot • Explanation of"Vending" and "Host" permits • Private property and public right-of-way allowances • Limitation of number of food trucks allowed on a premises at one time PUBLIC HEARING OPENED There were no speakers PUBLIC HEARING CLOSED f i f Planning Commission Minutes j February 28,2018 i Page 4 r COMMISSIONER DELIBERATIONS Deliberations included concerns/questions regarding: ® Private property regulations.—just for special events? Limit to trucks allowed? ® Impact of existing parking—also on multi-tenant sites a Only restriction for Third avenue 525' footprint on site and 30' from intersection? O Number of food trucks allowed to park on Third Avenue MSC: Zaker/Calvo to approve the resolution with revision of added language to the resolution of: "except when parked in diagonal spaces. Motion passed: 5/0/0 OTHER BUSINESS 3. DIRECTOR'S REPORT: There was none 4. COMMISSION COMMENTS: Commissioner Milburn thanked staff for their diligence in bringing this back to the Planning Commission. 'Glad that they had a workshop and it seems like questions were answered by the fact that there is no one from the public here tonight. Great job. Commissioner Zaker very pleased to hear we're going to revisit this in a year: If any complications arise, they can be addressed at that time. Complimented staff on their work. ADJOURNMENT At 6:34 p.m. to the next Regular Planning Commission Meeting on March 14, 2018 at 6:00 p.m., in the Council Chambers. MLtesbmitted by Patricia Laughlin, Board Secretary Minutes approved March 14, 2018 MSC: Calvo/Burroughs ; Motion passed: 5-0-1 (Anaya abstained) I I e D 0 0 ' 0. January 26, 2018 Mr.Michael Walker City of Chula Vista 276 Fourth Avenue Chula Vista,California 91910 Re: Airport Land Use Commission Consistency Determination—Mobile Food Facility Ordinance, City of Chula Vista Dear Mr Walker: As the Airport Land Use Commission (ALUC)for San Diego County,the San Diego County Regional Airport Authority(SDCRAA)acknowledges receipt of an application for a determination of consistency for the project described above.Areas covered by this project lie within the Airport Influence Area (AIA)for the Brown Field Municipal Airport-Airport Land Use Compatibility Plan (ALUCP). ALUC staff has reviewed your application and accompanying materials and has determined that it meets our requirements for completeness. In accordance with SDCRAA Board Policy 8.30 and applicable provisions of the State Aeronautics Act(Cal. Pub. Util.Code 621670- 21679.5),ALUC staff has determined that the proposed project is consistent with the aforesaid ALUCP based upon the facts and findings summarized below: (1)The proposed project involves a municipal ordinance to provide regulatory standards for the operation of mobile food facilities without any physical construction proposed. (2)The proposed project would be permitted to occur within the 60-65 and 65-70 decibel (dB)Community Noise Equivalent Level (CNEL) noise contours. The ALUCP identifies eating and drinking establishment uses located within the 60-65 dB CNEL noise contour as compatible and within the 65-70 dB CNEL as conditionally compatible,subject to interior sound attenuation to 50 dB, with airport uses. However,the food facilities are mobile vehicles of transitory occupancy rather than permanently occupied structures, and therefore are not subject to any standard of sound attenuation. (3)The proposed project is in compliance with the ALUCP airspace protection surfaces because mobile vehicles would not penetrate airspace protection surfaces within areas in which the project would be permitted. (4)The proposed project would be permitted to occur within Safety Zone 6. The ALUCP identifies eating and drinking establishment uses located within Safety Zone 6 as compatible with airport uses. PO Box 82776 AIRPORT San Diego,CA 92138-2776 LAND USE www.san.org/aluc I COMMISSION i D ®.G j I (5)The proposed project would be permitted to occur within the overflight notification area, but does not contain any new residential uses subject to overflight notification. (6)Therefore,the proposed project is compatible with the Brown Field Municipal Airport ALUCP. (7)This determination of consistency is.not a"project"as defined by the California Environmental Quality Act(CEQA.),Cal. Pub. Res.Code§21065. Please contact Ed Gowens at(619)400-2244 if you have any questions regarding this letter. i Yours truly, r Ralph Redman Manager,Airport Planning cc: Amy Gonzalez,SDCRAA General Counsel Tony Sordello, Caltrans Division of Aeronautics Seth Cutter,Caltrans District 11 I I i t i AIRPORT LAN® USE COMMISSION I CnY OF CHULA VISTA INDEMNIFICATION AGREEMENT THIS AGREEMENT is made and entered into this day of , 20 , (Effective Date) among the City of Chula Vista, a charter municipal corporation of the State of California (City), and (Vendor)(Host). L HOLD HARMLESS, INDEMNITY AND DEFENSE Vendor/Host, for performing Food Truck Services (Services) within the City, does hereby agree to protect, defend, indemnify and hold harmless City, its elected and appointed officers, agents, employees and volunteers (collectively, "Indemnified Parties"), from and against any and all claims, demands, causes of action, costs, expenses, (including reasonable attorneys' fees and court costs), liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Vendor/Host, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Services or this agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses arising from the sole negligence or willful misconduct of the Indemnified Parties. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the Indemnified Parties which may be in combination with the active or passive negligent acts or omissions of the Vendor/Host, its employees, agents or officers, or any-third party. II. COSTS OF DEFENSE AND AWARD Vendor/Host acknowledges and agrees that it is Vendor's/Host's obligation to defend, at Vendor's/Host's own cost, expense and risk, any and all suits, actions or other legal proceedings that may be brought or instituted against one or more of the Indemnified Parties. Vendor/Host further acknowledges and agrees that Vendor/Host shall pay and satisfy any judgment, award or decree that may be rendered against one or more of the Indemnified Parties for any and all related legal expenses and costs incurred by any of them. III.VENDOR OBLIGATIONS NOT LIMITED OR MODIFIED Vendor/Host acknowledges and agrees that Vendor/Host shall not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by any prior or subsequent declaration by Vendor/Host. Vendo/Host r further acknowledges and agrees that Vendor/Host shall in no way limit, modify or excuse any of Vendor's/Host's other obligations or duties under this agreement. Page 1 of 2 IV.ENFORCEMENT COSTS Vendor/Host acknowledges and agrees to pay any and all costs City incurs in enforcing Vendor's/Host's obligations hereunder. V. SURVIVAL Vendor/Host acknowledges and agrees that Vendor's/Host's obligations hereunder shall survive any termination of this agreement. IN WITNESS WHEREOF, by executing this agreement where indicated below, City and Vendor/Host, for valuable consideration, agree that they have read and understood all terms and conditions of the agreement, that they fully agree and consent to be bound by the same, and that they are freely entering into this agreement as of the Effective Date. VENDOR/HOST CITY OF CHULA VISTA By: By: Signature [Insert City Signatory] Approved as to Form Print Signatory Name By: Print Signatory Title Glen R. Googins, City Attorney Print Signatory Telephone Number Print Signatory Email Address Print Signatory Address Page 2 of 2 Mobile Food Facility Permits Cost of Service Analysis Vending Vehicle Permit FB Hourly Total Cost of Staff:Activity Rate Hours Service Development Services Counter: Intake, Review& Permit Issuance $ 183.03 0.75 $ 137.27 Proposed Fee $ 135.00 Host FB Hourly Total Cost of Staff:Activity Rate Hours Service Development Services Counter: Intake & Permit Issuance $ 183.03 0.25 $ 45.76 Development Planning: Permit Review $ 207.82 1.00 $ 207.82 Total Estimated Cost of Service 1.25 $ 253.58 Proposed Fee $ 250.00 MASTER FEE SCHEDULE Chapter 14—Planning Fees � � General Planning FeesCffY OF ® 0 CHUf VISTACity of Chula Vista Development Services 276 Fourth Avenue,Chula Vista,CA 91910 o x !APPEALS iCOASTAL DEVELOPMENT PERMITS 3 All appeals from actions of the Zoning Administrative.............................Full cost recovery Administrator, Design Review Board, Planning Initial deposit...............................................$5,000 Commission or Chula Vista Redevelopment Corporation for consideration by the City Council De Minimum Waiver...................Full cost recovery pursuant to CVMC§19.14. Initial deposit...............................................$3,000 Filing fee (Appellant).......................................$250 Public hearing.............................Full cost recovery Processing fee (Applicant) ..........Full cost recovery Initial deposit.............................................$11,000 Initial deposit...............................................$5,000 CONDITIONAL USE PERMITS (CUPS) & PRE-APPLICATION/ PRE-SUBMITTAL VARIANCES REVIEW CUP,administrative.....................................$3,000 Optional pre-application review services are .CUP, public hearing..................'...Full cost recovery available on a full cost recovery basis (per Initial deposit.............................................$10,000 conference). The applicable hourly rates by work group are listed below. Variance, administrative..............................$2,200 Variance, public hearing.............Full cost recovery Development Planning staff, per hour............$208 Initial deposit...............................................$9,000 Long Range Planning staff, per hour...............$235 Land Development staff, per hour..................$176 Permit extension, nonrefundable...................$300 Building staff, per hour...................................$188 Fire Prevention staff, per hour........................$162 Permit Modification/Amendment Landscape Architecture staff;per hour..........$162 Administrative..............................................$2,400 Pre-submittal/Completeness Public hearing.............................Full cost recovery Review(Required).......................................$750 Initial deposit...............................................$5,000 'ANNEXATION {DESIGN REVIEW . Annexation..................................Full cost recovery Administrative.............................Full cost recovery Initial deposit.............................................$10,000 Initial deposit, each organizational change <_20 acres.....................................................$4,000 Public hearing.............................Full cost recovery 21—100 acres..............................................$6,000 Initial deposit.............................................$20,000 > 100 acres.................................................$10,000 City of Chula Vista www.chulavistac6.gov 619.691.5101 July 203 72018 MASTER FEE SCHEDULE ■ FEE BULLETIN 14-100 Page 2 of 3 ;ENVIRONMENTAL REVIEWPlan modification........................Full cost recovery Initial deposit.............................................$20,000 Preliminary Environmental Review..............$2,200 Precise Plan Initial Study.................................Full cost recovery Initial plan ...................................Full cost recovery Initial deposit.............................................$10,000 Initial deposit.............................................$10,000 Environmental Impact Report Plan modification........................Full cost recovery (EIR) .........................................Full cost recovery Initial deposit...............................................$5,000 Initial deposit.............................................$20,000 Sectional Planning Area (SPA)/Specific Plan Habitat Loss and Incidental Take Permit Initial plan ...................................Full cost recovery (HLIT) Permit............................Full cost recovery Initial deposit.............................................$20,000 Initial deposit.....:.........................................$7,500 Plan modification........................Full cost recovery Mitigation Monitoring Initial deposit.............................................$20,000 Mitigated Negative Declaration (MND)......................................Full cost recovery OUT-OF-AGENCY SERVICE Initial deposit...............................................$5,000 AGREEMENT Environmental Impact Report Agreement..................................Full cost recovery (EIR).........................................Full cost recovery Initial deposit...............................................$5,000 Initial deposit.............................................$15,000 HISTORIC DESIGNATION TENTATIVE SUBDIVISION MAP AND ICONDOMINIUM CONVERSIONS Application for Historic designation ............$4,800 Tentative subdivision map..........Full cost recovery Application for Mills Act status....................$8,725 Initial deposit.............................................$10,000 Historic sign fee...............................................$875 Historic District formation ..........Full cost recovery Condominium Conversion ..........Full cost recovery Initial deposit.............................................$10,000 Initial deposit.............................................$20,000 Certificate of SIGNS Appropriateness......................Full cost recovery Planned Sign Program, Application and Initial deposit, minor....................................$1,000 Modifications Initial deposit, major....................................$2,000 Sign Program, administrative.......................$3,700 MAJOR-PLANNING APPLICATIONS Sign Program, public hearing......Full cost recovery General Plan Amendment/Rezone Initiation Initial deposit...............................................$7,500 per CVMC§ 19.14.800) ............................$2,600 Sign Permits General Plan Amendment...........Full cost recovery Planned Sign Program, per sign......................$200 Initial deposit.............................................$20,000 Non-planned Sign Program, per sign..............$200 General Development Plan Initial plan ...................................Full cost recovery Initial deposit.............................................$20,000 City of Chula Vista www.chulavistaca.gov 619.691.5101 July X72018 MASTER FEE SCHEDULE ® FEE BULLETIN 14-100 Page 3 of 3 ZON N FULL COST RECOVERY E Rezone application......................Full cost recovery For all full cost recovery fee items, an initial Initial deposit.............................................$10,000 deposit shall'be collected to cover the City's full cost, including overhead, incurred in conjunction Zoning Compliance Review for Business License with review and processing as requested by Application submitted prior to establishment of applicant. Additional funds may be collected, as a new or changed use of any land required, to cover City costs. Should the or building...................................................$100 application be withdrawn at any time,the deposit shall be adjusted to cover the City's actual costs, Application not submitted prior to establishment including overhead, up to that time. Any funds of remaining on deposit at the time of the a new or changed use of any land completion or withdrawal of the application shall or building...................................................$200 be returned to the depositor, after accounting for expenses incurred to date. OTHER PERMITS•& ACTIVITIES, See Master Fee Schedule Fee Bulletins 1-100 and Large family daycare permit/extension.......$1,250 1-200 for additional discussion of full cost recovery and current hourly rates. Mobile Food Facilities Vending vehicle permit, annual......................$135 Host permit, annual........................................$250 Special/Temporary Events Special events on private property.................$550 Temporary outside sales permit.....................$375 Official Zoning Letter, per letter.....................$200 Site Plan and architectural review (commercial & industrial).............$2,300 Substantial Conformance Review Administrative..............................................$1,700 VIOLATIONS/AFTER-THE-FACT- !SUBMITTALS The fee required for applications subsequent to a violation of Title 19 of the CVMC shall be double the amount that would normally be required. Such double fee shall not be construed as a penalty, but shall be construed as an added fee required to defray the additional expense of investigation and enforcement by the City as a result of failure to comply with the provisions of the title. If the normal application requires a deposit,the normal deposit is also double. City of Chula Vista www.chulavistaca.gov 619.691.5101 Ordinance Page 1 ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 19.58 (USES) TO ADD SECTION 19.58.440 (MOBILE FOOD FACILITIES); AMENDING CHAPTER 8.20 (FOOD VENDORS); AMENDING CHAPTER 5.62 (VENDING VEHICLES); AMENDING CHAPTER 10.52 (STOPPING, STANDING, AND PARKING); AND AMENDING CHAPTER 5.07 (MASTER TAX SCHEDULE) WHEREAS, mobile food facilities, provide gourmet and fast food options to city residents, workers and visitors; and WHEREAS, mobile food facilities operating at the invitation of businesses, such as retail centers or breweries, draw customers that benefit these businesses; and WHEREAS, mobile food facilities provide diverse dining options for the general public at permitted special events on public or private property such as festivals, street fairs and fun runs; and WHEREAS, mobile food facilities provide an opportunity for entrepreneurs to operate small businesses, as well as for brick and mortar restaurants to expand into other locations or new markets; and WHEREAS, California Health and Safety Code section 113700 et seq. (the "California Retail Food Code') establishes local regulatory authority over mobile food facilities and allows mobile food facilities to operate in accordance with local codes, ordinances and regulations; and WHEREAS, Section 22455 of the California Vehicle Code authorizes the City to regulate the time, place and manner of vending from mobile food facilities in the public right-of-way for public safety; and WHEREAS, Section 114315 of the California Health and Safety Code requires a mobile food facility be operated within 200 feet of an approved and readily available toilet and handwashing facility to ensure that restroom facilities are available to mobile food facility employees whenever the mobile food facility is stopped to conduct business for more than a one- hour period; and WHEREAS, Chula Vista Municipal Code (CVMC) Chapters 8.20 and 5.62 currently address the licensing and operation of food and non-food vending vehicles; and WHEREAS, the creation of CVMC Section 19.58.440 (Mobile Food Facilities) is recommended to regulate mobile food facilities; and Ordinance Page 2 WHEREAS, CVMC Section 5.07.030 establishes a Master Tax Schedule for business license tax purposes; and WHEREAS, pursuant to Section 5.07.030, the applicable rate for all vending vehicles is set at$200 per vehicle per year(foodstuffs and non-foodstuffs); and WHEREAS, for each business license tax established in CVMC Section 5.07.030, a reference to the applicable section of the CVMC is provided; and WHEREAS, approval of this ordinance will create a new CVMC section regulating a subset of food vending vehicles, necessitating an update to the Master Tax Schedule references; and WHEREAS, The City Council reviewed the proposed legislative action for compliance with the California Environmental Quality Act (CEQA) and determined that the action is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the action is not subject to CEQA. In addition, notwithstanding the foregoing, the City Council has also determined that the action qualifies for an Exemption pursuant to Section 15061(b)(3) of the State CEQA Guidelines; therefore, no further environmental review is required. NOW THEREFORE the City Council of the City of Chula Vista does hereby find and ordain as follows: That the regulation of mobile food facilities is in the interest of the health, safety and welfare of the community and that the sales of products from mobile food facilities be limited to food items subject to regulation under the California Retail Food Code, as may be amended. BE IT FURTHER ORDAINED that Section 19.58.440 be added to the Chula Vista Municipal Code and that Chapters 5.62, 8.20 and Section 10.52.200 of the Chula Vista Municipal Code be amended as set forth below. Section L Section 19.58.440 Mobile food facilities. A. Purpose Mobile food facilities benefit the community by providing_gourmet and fast food services to City residents, workers and visitors. They also provide an entrepreneurial opportunity for small businesses to operate in the City, and for brick-and-mortar restaurants to operate in different locations or markets. When operated at the invitation of a brewery or retail center, mobile food facilities draw customers that benefit these businesses. Similarly, when operated as part of a permitted special event, mobile food facilities draw customers that benefit the special event. The City needs to protect the public by ensuring mobile food facilities are operated in a safe manner and do not create nuisances or hazards. Reasonable regulations are necessary to ensure Ordinance Page 3 that mobile food facilities are operated in accordance with health, safety and traffic laws of the state and the parking ordinances of the City; do not cause public safety problems by contributing to traffic congestion or by creating pedestrian and vehicular conflicts; and do not disturb the quiet use and peaceful enjoyment of residential neighborhoods. Therefore the regulations in this section are enacted in accordance with the authority granted in Section 22455 of the California Vehicle Code and California Health and Safety Code section 114315 et sea. (the "California Retail Food Code"), as each may be amended. B. Definitions 1. "Authorizing Person'' means a property owner, host, tenant, lessor, or manager of real property, or an agent thereof, who has responsibility for authorizing location of a mobile food facility on the property. 2. "Hosting Permit" means a permit authorizing an Authorizing Person to host a mobile food facility on their premises. 3. "Mobile food facility' A large vehicle equipped to cook and sell food as a mobile kitchen, and as defined in California Health and Safety Code section 113831, as may be amended, and also means a vehicle that operates as a food facility from which food is sold or distributed at retail. a. "Mobile food facility" does not include a "transporter" used to transport packaged food from a facility, or other approved source, to the consumer. b. "Mobile food facility" does not include ice cream trucks that sells pre-made, prepared, prepackaged, or unprepared vending vehicles, which are defined in Section 8.20.010 of the Municipal Code, or vehicles that deliver prepared food to subscribers. 4. "Responsible Party" is defined in Section 1.04.010 of this Municipal Code, and for purposes of this Section, also includes Authorizing Persons and Vendors. 5. The terms ``street," "highway,'' and "vehicle" have the same definition as in the California Vehicle Code, as may amended. 6. ``Trailer" means an unpowered vehicle towed by another vehicle. 7. ."Vending Permit" means a permit allowing a Vendor to operate a mobile food facility on private and public property. 7. "Vendor" means a person who owns, leases, manages or vends from a mobile food facility. C. Mobile food facilities—License tax required Ordinance Page 4 Every person conducting, managing or operating a mobile food facility shall pay a tax as Presently designated, or as may in the future be amended, pursuant to Master Tax Schedule Section CVMC 5.07.030. The license obtained by payment of the license tax shall identify the particular vehicle to be used and shall be kept on the vehicle, available for inspection at all times. D. Mobile food facilities on private, public, and City property Mobile food facilities may operate on nonresidential and residential private property with prior written consent of an Authorizing Person. Mobile food facilities may operate on City property with the prior written consent of the City Manager or designee, and may also operate on public streets and highways. All mobile food facilities, regardless of vending location, are subject to the Vending Permit requirements and the regulations set forth herein, as well as other applicable provisions of the Municipal Code, California law and federal law. 1. Mobile food facilities may operate as an accessory or ancillary use in all agricultural, mixed use, commercial and industrial zones, and similar zones for all Sectional Planning Area (SPA) Plans and Specific Plans upon issuance of a Vending Permit by the City Manager or designee, except where prohibited in this Municipal Code. 2. Mobile food facilities may operate at multiple nonresidential sites with a valid annual Vending Permit for each site, and written permission by an Authorizing Person representing property or business ownership, in possession of a Hosting Permit, where the mobile food facility operates. 3. Mobile food facilities may not operate in residential zones, except: a) Pursuant to a block party_permit_issued by the City; or b) When an Authorizing Person has invited a mobile food facility onto the premises of a college, school, religious institution, construction site, or other private property in a residential zone, when providing food service to patrons on such premises exclusively. 4. Mobile food facilities are prohibited from vending on vacant lots or gas service stations, and shall not be the primary use on an, E. Private Catering Mobile food facilities may operate as a private food and beverage caterer with a Vending Permit under the following conditions: 1. The mobile food facility shall be parked entirely on private property. 2. Service shall be limited to guests of the event host; no walk-up customers are permitted. Ordinance Page 5 3. Payment transactions shall occur between the event host and the Vendor only. F. Hosting Permit requirements 1. An Authorizing Person wanting to host mobile food facilities on their property shall obtain an annual Hosting Permit prior to allowing mobile food facility Vendors on their premises. 2. Payment of a fee is required for an annual Hosting Permit. The permit fee shall be as set forth in the Master Fee Schedule of the City adopted by resolution by the City Council. The Cit Manager shall from time to time recommend such fees to the City Council that reflect an amount to equal but not to exceed the reasonable costs of administration of the program. G. Vending Permit requirements 1. All mobile food facility Vendors shall obtain an annual Vending Permit before offering food or beverages for sale at each location in Chula Vista. 2. Payment of a fee is required for an annual Vending Permit. The permit fee shall be as set forth in the Master Fee Schedule of the City adopted by resolution by the City Council. The City Manager shall from time to time recommend such fees to the City Council that reflect an amount to equal but not to exceed the reasonable costs of administration of the program. 3. The following shall be submitted with each application for a mobile food facility Vending Permit and when a Vending Permit is issued, the Vendor shall maintain the following during the permit year, and shall present the Vending Permit and any of the following, upon request, to a police officer, code enforcement officer, or any other person designated by the City to enforce this Municipal Code section: a. A business tax certificate (license) to operate in Chula Vista; a separate - business license is required for each mobile food facility. b. A valid driver's license for each mobile food facility driver. c. Proof of commercial vehicle insurance for each mobile food facility. d. A commissary agreement for each mobile food facilittopark, clean, and obtain supplies from a commissary that provides these services; except trailers. e. A health permit issued by the San Diego County Department of Environmental Health for each mobile food facility. f. When vending on nonresidential private property either pursuant to a special event permit or a Vending Permit, a written agreement with an Authorizing Ordinance Page 6 Person authorizing the Vendor to operate a mobile food facility on the property, including days and hours of operation. g. When vending on private property for more than a one-hour period, a written agreement with an Authorizing Person authorizing mobile food facility employees to use toilet and handwashing facilities onsite; portable toilets and portable handwashing do not satisfy this requirement. h. When vending on public property or City property, an agreement to indemnify and hold harmless the City, on a form provided by the City, and a certificate of insurance naming the City of Chula Vista as an additional insured in an amount and manner determined by City at City's sole discretion. 4. A Vending Permit is non-transferrable. H. Mobile food facility regulations Vendors and Authorizing Persons are required to ensure that all mobile food facilities comply with the following regulations: 1. Only food and beverages regulated by the California Retail Food Code shall be offered for sale or distribution. 2. Litter generated by the mobile food facility Vendor or customers shall be picked up within a 25 foot radius of the mobile food facility before the mobile food facility leaves the vending location. 3. A trash receptacle and a separate recycling receptacle shall be provided for use by employees and customers; the Vendor shall remove trash and recycling receptacles before leaving the vending site. 4. Advertising shall be limited to A-frames entirely on the premises only, or advertising on or in the Mobile food facility. 5. Lighting shall be provided during hours of darkness to ensure customer safety. Lighting shall not create glare and shall be directed downward and away from adjacent properties. 6. A Mobile food facility shall be operated only on a paved level area. A paved level area means an area having a surface comprised of Decomposed Granite (DG), Asphalt/Concrete (A/C), or Concrete with a cross fall not greater that 2.0 percent. 7. The Vending Permit shall be displayed in a place on the Mobile food facility visible from outside. 8. Mobile food facilities shall be entirely self-sufficient in regards to gas, electricity, water and telecommunications. Ordinance Page 7 9. All other applicable provisions of the Municipal Code and state and federal laws that regulate Mobile food facilities and commercial vehicle operations on public or private property and all traffic, parking and motor vehicle laws shall be followed. 1. Mobile food facility_prohibitions Vendors and Authorizing Persons are required to ensure that all mobile food facilities, except for mobile food facilities operating as part of a special event for which a special event permit has been issued by the City, shall comply with the following prohibitions: 1. No alcoholic beverages or tobacco products shall be served or sold. 2. Music or other noise shall not exceed the limits set by the provisions of Municipal Code section 19.68, Performance Standards and Noise Control. 3. All associated equipment and operations shall be self-contained within mobile food facilities. A condiment table and four belly bars of uniform size, eight chairs, and one 10' x 10' pop-up canopy are allowed adjacent to the mobile food facility. The following items, which shall include, but not be limited to: detached benches; heaters; generators; and exterior electrical cords; exterior hoses and tents; are prohibited. 4. An awning that does not exceed the square footage of the mobile food facility and that is attached, and fully supported by the mobile food facility is allowed. Such awnings shall not be tied to traffic signals,ls, light standards, sign poles, parking meters, newspaper racks, bus stops, benches, trash receptacles or other similar fixed objects. 5. When a mobile food facility is located within 500 feet of a residential zone, operations, including set up and tear down, are allowed only between 7 a.m. and 10 p.m. weekdays and between 8 a.m. and 10 p.m. weekends. 6. A mobile food facility shall not be parked so that it: a) restricts sight distances at driveways and intersections; or b) interferes with the free flow of pedestrian or vehicle circulation and traffic, including but not limited to access to or egress from any business, public building, or dwelling unit. 7. A mobile food facility may not be operated in such a way as to occupy more than 25 percent of paved area on the property upon which it is located. 8. The maximum number of mobile food facilities permitted on a site is determined as follows: a. One mobile food facility may operate on the site for every 525 square feet of paved area (at least 35 feet by 15 feet in dimension) available for vending activity, except that mobile food facilities greater than 30 feet in length require a space at least 70 feet by 15 feet. Ordinance Page 8 b. Mobile food facility vending activity at a private parking lot shall not impact on-site parking or reduce the number of parking spaces required for on-site uses while those uses are in operation. 9. Mobile food facilities shall not be located within 30 feet of an intersection when parked on a street or highway, sales shall be from the curbside only - except when parked in diagonalpaces - and pedestrian or vehicular circulation on the street, sidewalk, or parkway shall not be obstructed. 10..No person shall stop or park a mobile food facilitypublic street within 500 feet of any school property boundary in the City of Chula Vista between the hours of 7:00 a.m. and 5:00 p.m. on regular school days. For purposes of this provision, "school" means all public or private schools in which instruction is given through grade 12 or in any one or more of such grades. J. Exceptions to mobile food facility prohibitions The prohibitions in SubsectionI.3 shall not apply to a mobile food facility operating entirely on private property that is not open to theeg neral public, is closed to walk-up sales to the general public, and is available for sales or service only to Quests, customers or employees and is operating pursuant to a special event permit. K. Vending Permit issuance The City Manager or designee shall approve and issue a Vending Permit if all applicable sections of this Chapter are satisfied and required fees are paid. The permit is effective on the date of issuance, and is effective for one year or until the expiration of a valid business license, whichever comes first. A permit shall not be issued for a location where an enforcement action for Code violations or unlawful activity is pending. L. Hosting Permit issuance The City Manager or designee shall approve and issue a Hosting Permit if all applicable sections of this Chapter are satisfied and required fees are paid. The permit is effective on the date of issuance, and is effective for one year or until the expiration of a valid business license, whichever comes first. A permit shall not be issued for a location where an enforcement action for Code violations or unlawful activity is pending M. Enforcement of violations; appeal of Vending Permit denial or revocation Violation of any provision of this Chapter is subject to enforcement pursuant to the provisions of Chapter 1.20 through 1.41 of this Municipal Code. For purposes of enforcement of this Section, a Responsible Party, as defined in Section 1.04.010 of this Municipal Code, also includes Vendors and Authorizing Persons. Denial or revocation of a Vending Permit may be appealed pursuant to Chapter 1.40 of this Municipal Code. If a Vendor or Authorized Person is cited for three violations within one year, no Vending Permit or Hosting Permit shall be granted the Ordinance Page 9 following year. The Vendor or Authorizing Person may apply for a permit two years after the last violation. Section II. Chapter 5.62 VENDING VEHICLES —NON-FOOD GOODS Sections: 5.62.010 Vending vehicles—License tax required. 5.62.020 Vending vehicles—Parking and stopping regulations. 5.62.010 Vending vehicles—License tax required. Every person conducting, managing or operating a business in which vending vehicles are used, from which any goods other than foodstuffs are sold, given away, displayed or offered for sale at retail, shall pay a license tax presently designated, or as may in the future be amended, in Section 5.62.010, of the master tax schedule in CVMC 5.07.030. The license shall identify the particular vehicle to be used and shall be kept on the vehicle, available for inspection at all times. (Ord. 2408 § 1, 1990; Ord. 2081 § 1, 1984; Ord. 1801 § 13, 1978). 5.62.020 Vending vehicles—Parking and stopping regulations. No person shall stop or park a vending vehicle on a public thoroughfare for the purpose of selling, giving away, displaying or offering for sale any non-food goods, except for a period of time sufficient to consummate an immediate sale or sales. No person shall stop, park or cause any vending vehicle to remain on any public property, except pursuant to the order of a lawful authority or for the purpose of making emergency repairs to the vehicle; in no event shall any person sell or give away any non-food good from a vending vehicle while on any public property No person shall stop, park or cause a vending vehicle to remain on any private property for the purpose of selling, giving away, displaying-or offering for sale any non- food good to any person other than the owner of such property or his agents, customers or employees. (Ord. 1884 § 1, 1979). Section III. Chapter 8.20 FOOD VENDORS* Sections: 8.20.010 Vending vehicles—Definitions. 8.20.015 Vending vehicles—Mobile food facility. 8.20.020 Vending vehicles—For prepared, or prepackaged, and unprepared foodstuffs, including but not limited to, frozen desserts, drinks, ice cream, fruits, vegetables, meat, seafood, and poultry—License tax required. 8.20.025 Vending vehicles—Restrictions near school facilities. 8.20.030 Vending vehicles—Parking and stopping regulations. 8.20.040 Vending vehicles—Compliance with certain regulations required. 8.20.050 Vending vehicles—Refrigeration required. 8.20.060 Vending vehicles—Identification to be displayed. Ordinance Page 10 8.20.070 Vending vehicles—Cleanliness required—Inspection—Certification. 8.20.075 Letter grades for vending vehicles. 8.2n0.n0n(80`[ Vending ve�h7ic�l�e�s�—For unprepared food—Regulations. 8.2"0 .095 Vending` ehieles Mobile food pr-el 6•• , •,:r Regulations-. 8.20.090 Vending vehicles—For prepared food—Regulations. 8.20.100 Vending vehicles—Limitations on use. 8.20.110 Vending machines—Operator defined. 8.20.120 Vending machines—Permit required—Operator responsibilities. 8.20.130 Vending machines—Permit required for service vehicle. 8.20.140 Vending machines—Location restrictions—Approval required. 8.20.150 Vending machines— Service room required. 8.20.160 Vending machines—Cleaning and sanitizing generally. 8.20.170 Vending machines—Outside and other equipment to be cleaned. 8.20.180 Vending machines—For cold carbonated beverages—Cleaning requirements. 8.20.190 Vending machines—For milk products—Cleaning and sanitizing requirements. 8.20.200 Vending machines—Refilling regulations. * For authority for cities to license businesses for purposes of revenue and regulation, see Gov. Code § 37101; for statutory provisions authorizing cities to enforce state laws on food handling sanitation, see Health and Safety. Code § 28690. 8.20.010 Vending vehicles—Definitions. Whenever in this chapter the following terms are used, they shall have the meanings respectively ascribed to them in this section: A. "Prepared food vending vehicle" means a food vending vehicle from which any food or beverage product-is.sold,-given away, displayed or offered for sale, at retail, other than an unprepared food-vending vehicle, catering truck, bakery truck, or ice cream or ice cream product truck. B. "Unprepared food vending vehicle" means a food vending vehicle from which is sold, given away, displayed or offered for sale, at retail, any raw or unprepared food or food product including,but not limited to, fruits, vegetables,produce, meats, fish,poultry or seafood. food is prepared for-sen4ee, sale, or-distfibution at retail. A mobile feed nit shall be DC. A vending vehicle may have more than one designation pursuant to this section. A vehicle with multiple designations must comply with all applicable provisions of this chapter and state law. (Ord. 2120 § 1, 1985; Ord. 855 § 2, 1963;prior code § 15.60). 8.20.015 Mobile food facility — A large vehicle equipped to cook.and sell food as a mobile kitchen, and as defined in California Health and Safety Code section 113831, as may be amended, and also means a vehicle that operates as a food facility from which food is sold or distributed at retail, and is not a vending vehicle for purposes of Chapter 8.20, and as regulated in CVMC 19.58.440. Ordinance Page 11 8.20.020 Vending vehicles— For prepared or prepackaged, and unprepared foodstuffs, including but not limited to, frozen desserts, drinks, ice.cream, fruits, vegetables, meat, seafood, and op ultry—License tax required. Every person conducting, managing or operating a business in which carts, wagons or vending vehicles for prepared or prepackaged, and unprepared foodstuffs, including ice cream, are used shall pay a tax as presently designated, or as may in the future be amended, in Section 8.20.020 of the master tax schedule in CVMC 5.07.030. The license shall identify the particular vehicle to be used and shall be kept on the vehicle, available for inspection at all times. (Ord. 2408 § 1, 1990; Ord. 2081 § 1, 1984; prior code § 18.57). 8'.20.025 Vending vehicles—Restrictions near school facilities. A. No person shall stop or park a food vending vehicle on a public street within 500 feet of any school property boundary in the city of Chula Vista between the hours of 7:00 a.m. and 5:00 p.m. on regular school days. B. "School" means all public or private schools in which instruction is given through grade 12 or in any one or more of such grades. (Ord. 2729 § 1, 1998; Ord. 2122, 1985). 8.20.030 Vending vehicles—Parking and stopping regulations. No person shall stop or park a food vending vehicle on a public thoroughfare for the purpose of selling, giving away, displaying or offering for sale any food or beverage product except for a period of time sufficient to consummate an immediate sale or sales. No person shall stop, park or cause any food vending vehicle to remain on any public property except pursuant to the order of a lawful authority or for the purpose of making emergency repairs to the vehicle; in no event shall any person sell or give away any food or beverage product from a food vending vehicle while on any public property other than a thoroughfare. No person shall stop, park or cause a food vending vehicle to remain on any private property for the purpose of selling, giving away, displaying or offering for sale any food or beverage product to any person other than the owner of such property or his agents, customers or employees. (Ord. 855 § 2, 1963;prior code § 15.61). 8.20.040 Vending vehicles—Compliance with certain regulations required. Food vending vehicles shall comply with all provisions of this code and other ordinances of the city regulating food vending establishments, insofar as such regulations are applicable to vending vehicles and the operation thereof. (Ord. 855 § 2, 1963;prior code § 15.62). 8.20.050 Vending vehicles—Refrigeration required. No person shall operate, or cause to be operated, a food vending vehicle unless it is furnished with mechanical refrigeration equipment, in good working order, sufficient to maintain perishable food and beverage products at a temperature not in excess of 50 degrees Fahrenheit. Refrigeration compartments shall be kept clean, shall be constructed of tile, metal or other approved material, and shall have no seams or cracks. Food storage containers shall have no open seams. (Ord. 954 § 2, 1965; Ord. 855 § 2, 1963; prior code § 15.63). 8.20.060 Vending vehicles—Identification to be displayed. Ordinance Page 12 The exterior of each vending vehicle shall display, in lettering at least three inches in height, the name, address and telephone number of the owner. A distinctive identifying number or symbol assigned by the department of public health shall be displayed on the windshield of each vending vehicle. (Ord. 954 § 2, 1965; Ord. 855 § 2, 1963; prior code § 15.64). 8.20.070 Vending vehicles—Cleanliness required—Inspection—Certification. The interior.and the exterior of every food vending vehicle and all equipment therein shall have smooth, washable surfaces and shall be maintained in good repair and in a sanitary manner. Each vending vehicle shall be inspected at least semi-annually by the health officer. Vending vehicles shall be loaded and ready for operation at the time of inspection. A certificate of inspection,valid for six months, shall be issued to vending vehicles conforming to the requirements of this code. The certificate of inspection shall specify the food products which may be sold. (Ord. 954 § 2, 1965; Ord. 855 § 2, 1963;prior code § 15.65). 8.20.075 Letter grades for vending vehicles. A. San Diego County Code of Regulatory Ordinances. The provisions of the San Diego County Code of Regulatory Ordinances concerning permanent and mobile food facilities, at Title 6, Division 1 of the County Code, are incorporated into this code by reference and shall also be applicable to "vending vehicles," as defined in CVMC 8.20.010. B. Fee. All persons and businesses required to obtain a health-related permit or related service from the County of San Diego Department of Environmental Health (DEH)pursuant to this code shall pay the county the fee established in the County Code for that permit or service, including delinquent payment fees. (Ord. 3243 § 1, 2012). 8.20.080 Vending vehicles—For unprepared food—Regulations. No person shall operate or .cause to be operated an unprepared food vending vehicle without complying with all of the following regulations: A. All tools, implements and receptacles shall be kept in a clean and sanitary condition. B. Sufficient fly-tight containers, of metal or some other approved substance, shall be provided for the disposal of trimmings and refuse and shall be emptied and washed daily. C. No fish, poultry or other animal shall be cleaned in a food vending vehicle, nor shall the entrails of any fish, poultry or other animal be there removed. No fish, poultry, meat or meat products shall be cut, processed or otherwise prepared in a food vending vehicle. D. Scales and other weighing devices shall be protected from dust, dirt, flies and other vermin and contaminants. E. Every unprepared food vending vehicle shall be inspected at least semi-annually on dates scheduled by the health officer, or more often if the health officer so requires. The vending vehicle shall be fully loaded and ready for operation at the time of such inspection. The health officer shall issue a certificate of inspection if his inspection discloses that the vehicle conforms to the requirements of this code. The certificate shall expire six months from and after the date of Ordinance Page 13 its issue, and shall specify the particular food and beverage products authorized to be sold or otherwise distributed from the vehicle. (Ord. 855 § 2, 1963;prior code § 15.66). 8.20.090 Vending vehicles—For prepared food—Regulations. No person shall operate or cause to be operated a prepared food vending vehicle without complying with all of the following requirements: A. Every owner or operator of vending vehicles shall have a service room or other sanitary location approved by the director of public health for the preparation of food sold from vending vehicles. Only food prepared in the service room or other approved location shall be sold from a vending vehicle. Service rooms or other approved locations shall comply with regulations for food handling establishments. B. No hot prepared food, except coffee, tea or packaged cocoa, shall be served from a vending vehicle unless the equipment used to prepare such food is approved by the director of public health. C. Except as provided in subsection (D) of this section, no perishable food shall be sold from a vending vehicle more than 24 hours after preparation. D. If the air-e^t^r- of publie health County of San Diego Department of Environmental Health certifies that an owner or operator of vending vehicles continuously maintains all perishable food intended for sale from a vending vehicle at a temperature of not more than 50 degrees Fahrenheit from the time of preparation until service to the consumer, such food may be sold for a period not exceeding 72 hours after preparation. E. All perishable food shall show the date of preparation. F. Vending vehicles shall dispense only single-service disposable cups, plates, forks and spoons. (Ord. 954 § 2, 1965; Ord. 855 § 2, 1963; prior code § 15.67). 8.20.0955 Vending vehieles Mobile feed preparation, .,:t Regulations. No per-son shall opefate or- eattse to be operated a fnabile feed p iit Withetit eemplying with all of the pfevisions of Health and Safety Cede Seetion 27790, et •, and A 4iele 10 (eef,...,,o.,eing with Seetio 13600) of-Title 17 of the Galif , Aamii:istfat:vo!'ode Said operation..hall e ..1.,with the f 11.,wi x. additional,-A. Meehanioally ,,*�• b er-ated display eases shall be'pr-evided for- all perishable foods an display for-sale in said mobile feed pr-epafatien unit. B. Vehiele ambient air-temper-a�ufe shall be maintained iff eaeh Nver-k area to pr-evide reasonable -1. -f oa if o heat 1 t� idi , tll t er- ..t. „f the eb le 0 0 ao � e o 0 feed preparation tinit shall mi-Alkee�_111 fie-asible means te r-eduee sueh exeessive heat ef hufnid4y4e Ordinance Page 14 CMobile f„a .fepafa ien units shall be-equipped with adequate eats with T.,ekT-est„ f ,.11 employees to be tfansported in stteh units. Said seats shall be pfopefly seeufed in plaee. Seats shall be not less than 15 inehes or- fnE)fe than 19 inehes above the floor-, at heast 1_0 im-whes deep, and at least 18 inehes wide. The baek:fests shall extend to a height of at least 3 6 inehes above the AR-A-F. .4-1-1 per-sons being tfafispoi4ed in a mobile food pr-epafation unit shall be seated in said seats while the unit is in motion. D. Eaeh mobile feed p ...,t:,.„ unit shall be equipped_w with ., fially ehafged fire ext:.guishe f ; good eendition. Dr-iver-s shall be advised of the loeation of the t�Te of extinpishef used aml instizueted in its opefation, L All tt;« toels of tool with shafp edges eaffied in a eb to feed pfepafation ttnit shall be 7 and all ether-tools and eeeki�g e�tli tent shall be-seeuredte the body of the vehicle •--while the unit is in motion. Tools yyith eutting edges pfoteeted by seabbafds or-similar-gtiar-ds shall be eonsider-ed as being in eentamefs. F. An aftemative means of exit, othef than the main e)Eit 7 "Safetywall and in the r-oof of the vehiele with unobstmeted passages to the outside. Stteh p age shall be at least 24 inehes by 24 inehes. The altemate means of exit shall have an ifftefief latehing fneehanism whieh shall be operated by hand without speeial'toels ef key. Stieh exit shall be labeled :t" in nt t: Ior-s :t4, lotto at_least o ifieh N:nl, G All loads—eaffi 'l in a mobile F.tea pfepafation tinit shall be as to pfevent shiffing, toppling of 14. Ne-eeaking-ef feed pr-epafation shall be done wkile the mobile fbod pfepafation imit is in 1. A headquarters shall be established fof all mobile feed preparation units, and said tinits shall be stofed at sueh headqttai4er-s when not in use. rnvrcvir. T The .t. hal beequipped :tl, eleet, al ,det t, ide ;1: f_,. am0 K. The headquartefs par-king area for mobile food pr-epafation units shall be paved with a paving material stteh as eonefete of asphalt. The sttr-faee of the paving to a dr-ain and shall not Peer. Said- snr-faee shall be kept in geed it l}o st,,,age . a shall „tai ., liquid waste dump station, and thefe shall be installed a eonefete apfen sur-founding the waste f eeeptof for-a dist.,.,..o of 1-0- feet: eaeh he-:.moo t.,l d -ootio sloping to the ,1-a L. Alastewatef shall not be pet:faitted to flew into the stfeet f+om the headquat4er-'s parkifig area. M.r A„ appr-oved waste dump station shall be pr-ovided .,t eaeh l,oa.lquai-tar� Ordinance Page 15 N. Lights shall be pr-evided fer- the b :ll,,.ain tie who., .,, r-ed 30 inehos above the pavement. .Mobile food-prepar-atien units whieh-de not pfeper4y eentr-el feed temper-awfe, which 1aek b 7 to operate in a samtafy mannef so as to pese an immediate danger- tE) the ptiblie health ffla5, be o L... vd .,tie order- f't of health ltoffiee-or-1::s desi bffiate .. ' during1-2. The. health effieer- shall be granted aeeess Ie mebile feed preparation u-n-its b leading, > b' tyre 20§21985)- 8.20.100 Vending vehicles—Limitations on use. Food vending vehicles shall be used for no purpose other than those purposes permitted by this chapter, unless the health officer has approved in writing some other proposed use of such vehicle. (Ord. 855 § 2, 1963; prior code § 15.68). 8.20._110 Vending machines—Operator defined. "Operator" means the person who furnishes, installs and services the vending machine. (Ord. 855 § 2, 1963; prior code § 15.71). 8.20.120 Vending machines—Permit required—Operator responsibilities. No operator shall maintain, conduct, manage or operate any vending machine unless a permit for such machine has been issued by the health officer and unless such permit is valid and unexpired. The applicant for a permit shall designate in writing the products to be vended, and permits shall be valid only for those products listed on the permit. Unless it appears to the health officer that the vending machine will at all times be maintained in a clean and sanitary condition, and that all products of the machine will reach the consumer in a clean and wholesome condition, he shall deny the application for the permit. If the permit is granted, the operator shall be responsible for the proper operation and maintenance of the vending machine and for complying with the requirements of this division and of state laws and regulations in connection therewith. The name and address of the operator shall be posted conspicuously on the vending machine. (Ord. 855 § 2, 1963; prior code § 15.70). 8.20.130 Vending machines—Permit required for service vehicle. No operator shall use a vehicle to service vending machines, or allow such use, unless the health officer has issued a permit for such vehicle. (Ord. 855 § 2, 1963; prior code § 15.72). 8.20.140 Vending machines—Location restrictions—Approval required. The operator shall furnish the health officer with the location of any vending machine installed, sufficiently soon so that within 72 hours subsequent to such installation the health officer may inspect the vending machine and the location. If the location of the machine is not approved by . the health officer, the vending machine shall be removed immediately and not operated until the location thereof is rendered acceptable. Each vending machine shall be located so that sanitary facilities, fixtures and receptacles for emptying waste containers and for performing required sanitation are readily accessible. The area around the vending machine shall be maintained clean Ordinance Page 16 and free of accumulated paper cups and wrappers, spillage, and other waste material and trash. Approved trash receptacles shall be provided by the machine operator, proximate to vending machines, whenever required by the health officer. (Ord. 855 § 2, 1963;prior code § 15.73). 8.20.150 Vending machines— Service room required. All operators shall establish within the city a service room or rooms, which shall be used only for cleaning, storing and maintaining vending machines, supplies and sanitized parts. All cleaning and sanitizing of vending machine parts which come in contact with food, food products or liquids dispensed by a vending machine shall be done in the service room previously approved by the health officer. The service room shall meet all the requirements of this title relative to food handling establishments. (Ord. 855 § 2, 1963;prior code § 15.74). 8.20.160 Vending machines—Cleaning and sanitizing generally. Vending machines dispensing liquids shall be cleaned not less frequently than three times each week, and machines dispensing unwrapped nonliquid food products shall be cleaned not less frequently than once each month, except as hereinafter noted in the manner set forth in CVMC 8.20.170 through 8.20.200. (Ord. 855 § 2, 1963; prior code § 15.75). 8.20.170 Vending machines—Outside and other equipment to be cleaned. The following general regulations apply to all vending machines. The operator shall clean the outside of the machine,.and any vending stage, door, chute, drip plate and waste can. Used cup and trash containers shall be emptied and cleaned. Parts shall be wiped with a cleaned moist cloth which has been dipped in a solution containing not less than 200 parts of active chlorine per million parts, or in some such other approved sanitizing agent or material. (Ord. 855 § 2, 1963; prior code § 16.76(A)). 8.20.180 Vending-machines—For cold carbonated_beverages—Cleaning requirements. In addition to the servicing required by the general regulations, machines dispensing cold carbonated beverages shall be serviced as follows: Not less frequently than once each 60 days, all contact parts of the machine shall be cleaned by removing, washing and disinfecting all tanks, valves, faucets, pipe lines and water filters. Interior water filter and conditioning elements shall be taken to the service room for servicing; properly sanitized replacements may be transported under sanitary conditions from the service room and installed while the other water filter and conditioning elements are being serviced. Water filters and water conditioning devices shall be of a type which permits periodic cleaning and replacement. (Ord. 855 § 2, 1963; prior code § 15.75(B)). 8.20.190_Vending machines—For milk products—Cleaning and sanitizing requirements. In addition to the servicing required by the general regulations, machines dispensing milk and milk products shall be serviced as follows: Fluid milk or cream shall be removed from the machine and discarded daily, and fresh products added. Canned evaporated milk may be dispensed for 72 hours before discarding; provided, that throughout this period the temperature of such milk is maintained at not more than 50 degrees Fahrenheit. All parts and appurtenances of vending machines that come in contact with fluid milk or milk products shall be removed daily and cleaned and sanitized. Vending machines that dispense nonliquid milk or nonliquid Ordinance Page 17 cream products shall be sanitized not less frequently than three times each week. (Ord. 855 § 2, 1963; prior code § 15.75(C)). 8.20.200 Vending machines—Refilling regulations. Vending machines, in locations for which the health officer has not issued a food handling establishment permit, shall be refilled only by substituting for the empty container one which was cleaned, sanitized and filled in the service room. The emptied container shall be transported to the service room for cleaning and sanitizing. (Ord. 855 § 2, 1963;prior code § 15.75(D)). Section W. Chapter 10.52 STOPPING, STANDING AND PARKING* 10.52.200 Peddlers and vendors—Parking permitted when—Time limit. Except as otherwise provided in this chapter, no person shall stand or park any vehicle, wagon or pushcart from which goods, wares, merchandise, fruits, vegetables, meats, seafood, or foodstuffs are sold, displayed, solicited or offered for sale or bartered or exchanged, or any lunch wagon or eating car or vehicle, on any portion of any street within this city, except that such vehicles, wagons or pushcarts may stand or park only at the request of a bona fide purchaser for a period of time not to exceed 10 minutes at any one place. The provisions of this section shall not apply to persons delivering such articles upon order of, or by agreement with, a customer from a store or other fixed place of business or distribution, or a mobile food facility as defined in Section 19.58.440 of this Municipal Code. (Ord. 973 §' l, 1966;prior code § 19.10.15(A)). Section V. Chapter 5.07 MASTER TAX SCHEDULE The following is hereby added to the matrix of Section 5.07.030 Master Tax Schedule of the CVMC: Section: 5.07.030 Master tax schedule. 119.58.440 1 Mobile Food Facilities $200.00/year/vehicle Section VI. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase Ordinance Page 18 of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section VII. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section VIII. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section VIX. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by: Approved as to form by: Kelly Broughton, FSLA Glen R. Googins Development Services Director City Attorney RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CHAPTER 14 (PLANNING FEES) OF THE CITY'S MASTER FEE SCHEDULE TO ESTABLISH MOBILE FOOD FACILITY PERMIT FEES WHEREAS, the City Council wishes to establish permit fees for the issuance and administration of Mobile Food Facility Vending and Hosting permits; and WHEREAS, an analysis of the staff effort and the current fully burdened hourly rates for impacted staff associated with issuing and administering Mobile Food Facility Vending and Hosting Permits has been conducted to determine the cost of service associated with providing these permitting services; and WHEREAS, in order to achieve full and equitable cost recovery for Mobile Food Facility Vending and Hosting permits, the City Council wishes to amend Chapter 14 (Planning Fees) of the City's Master Fee Schedule, as set forth in Exhibit 1, attached hereto and incorporated herein by reference as if set forth in full; and WHEREAS, the proposed fees do not exceed the estimated reasonable cost of providing the associated services; and WHEREAS, Article XIII C of the California Constitution requires a vote of the electorate to increase any levy, charge, or exaction imposed by a local government, unless specifically exempted; and WHEREAS, the proposed fees are exempt from the vote requirement per Sections 1(e)(2) and 1(e)(3); and WHEREAS, the proposed amendments to Master Fee Schedule Chapter 14 shall become effective upon adoption of this Resolution by the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby amend Chapter 14 (Planning Fees) of the City's Master Fee Schedule to establish Mobile Food Facility permit fees as set forth in Exhibit 1 to this Resolution. Presented by Approved as to form by Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services City Attorney MASTER FEE SCHEDULE Chapter 14—Planning Fees _ General Planning Fees CrfY OF City of Chula Vista Development Services p CHULA VISTA fes= 276 Fourth Avenue,Chula Vista,CA 91910 a 'OAS TAL DEVELOPMENPIRE MITS Y z All appeals from actions of the Zoning Administrative.............................Full cost recovery Administrator, Design Review Board, Planning Initial deposit...............................................$5,000 Commission or Chula Vista Redevelopment Corporation for consideration by the City Council De Minimum Waiver...................Full cost recovery pursuant to CVMC§19.14. Initial deposit...............................................$3,000 Filing fee (Appellant).......................................$250 Public hearing.............................Full cost recovery Processing fee (Applicant) ..........Full cost recovery Initial deposit.............................................$11,000 Initial deposit..........................:....................$5,000 CONDITIONALUSErtPERMITS(CUPs);& Y3 PRE APPLICATION/,PRE SUBMITTAL �= � � ��.- x �__ _ r. VARIANCES `moi fREVIEW CUP,administrative.....................................$3,000 Optional pre-application review services are CUP, public hearing.....................Full cost recovery available on a full cost recovery basis (per Initial deposit.............................................$10,000 conference). The applicable hourly rates by work group are listed below. Variance, administrative..............................$2,200 Variance, public hearing.............Full cost recovery � Development Planning staff, per hour............$208 Initial deposit...............................................$9,000 Long Range Planning staff, per hour...............$235 Land Development staff, per hour..................$176 Permit extension, nonrefundable...................$300 Building staff, per hour....................................$188 Fire Prevention staff, per hour........................$162 Permit Modification/Amendment Landscape Architecture staff, per hour..........$162 Administrative..............................................$2,400 Pre-submittal/Completeness Public hearing.............................Full cost recovery Review(Required).......................................$750 Initial deposit...............................................$5,000 `-��.�.0 «.�.... fi. tT,t ,:e"'7+'i�'t9ex_y,-�av �T.} Fy�a--x ��'•5.:..�--�-Zr�+.amu-4=..r Annexation..................................Full cost recovery Administrative.............................Full cost recovery Initial deposit.............................................$10,000 Initial deposit, each organizational change <_ 20 acres..............................................:......$4,000 Public hearing.............................Full cost recovery 21—100 acres..............................................$6,000 Initial deposit.............................................$20,000 > 100 acres.................................................$10,000 1 City of Chula Vista www.chulavistaca.gov 619.691.5101 July:tQI:72018 MASTER FEE SCHEDULE 0 FEE BULLETIN 14-100 Page 2 of 3 `ENVIRONMENTAL REVIEW Plan modification........................Full cost recovery Initial deposit................................:............$20,000 Preliminary Environmental Review..............$2,200 Precise Plan Initial Study.................................Full cost recovery Initial plan ...................................Full cost recovery Initial deposit.............................................$10,000 Initial deposit.............................................$10,000 Environmental Impact Report Plan modification........................Full cost recovery (EIR).........................................Full cost recovery Initial deposit...............................................$5,000 Initial deposit.............................................$20,000 Sectional Planning Area (SPA)/Specific Plan Habitat Loss and Incidental Take Permit Initial plan ...................................Full cost recovery (HLIT) Permit............................Full cost recovery Initial deposit.............................................$20,000 Initial deposit...............................................$7,500 Plan modification........................Full cost recovery Mitigation Monitoring Initial deposit.............................................$20,000 Mitigated Negative Declaration (MND)......................................Full cost recovery OUT-OF-AGENCY SERVICE Initial deposit...............................................$5,000 AGREEMENT Environmental Impact Report Agreement..................................Full cost recovery (EIR).........................................Full cost recovery Initial deposit...............................................$5,000 Initial deposit.............................................$15,000 HISTORIC DESIGNATION TENTATIVE SUBDIVISION MAP AND iCONDOMINIUM CONVERSIONS Application for Historic designation ............$4,800 Application for Mills Act status....................$8,725 Tentative subdivision map..........Full cost recovery Historic sign fee...............................................$875 Initial deposit.............................................$10,000 Historic District formation ..........Full cost recovery Condominium Conversion ..........Full cost recovery Initial deposit.............................................$10,000 Initial deposit.............................................$20,000 Certificate of (SIGNS Appropriateness......................Full cost recovery Planned Sign Program, Application and Initial deposit, minor....................................$1,000 Modifications Initial deposit, major....................................$2,000 Sign Program, administrative.......................$3,700 MAJOR PLANNING APPLICATIONS Sign Program, public hearing......Full cost recovery General Plan Amendment/Rezone Initiation Initial deposit...............................................$7,500 per CVMC§ 19.14.800) ............................$2,600 Sign Permits General Plan Amendment...........Full cost recovery Planned Sign Program, per sign......................$200 Initial deposit.............................................$20,000 Non-planned Sign Program, per sign..............$200 General Development Plan Initial plan ...................................Full cost recovery Initial deposit.............................................$20,000 City of Chula Vista www.chulavistaca.gov 619.691.5101 JUIy 24442018 MASTER FEE SCHEDULE ■ FEE BULLETIN 14-100 Page 3 of 3 ZONING !FULL COST RECOVERY Rezone application......................Full cost recovery For all.full cost recovery fee items, an initial Initial deposit.............................................$10,000 deposit shall be collected to cover the City's full cost, including overhead, incurred in conjunction Zoning Compliance Review for Business License with review and processing as requested by Application submitted prior to establishment of applicant. Additional funds may be collected, as a new or changed use of any land required, to cover City costs. Should the or building...................................................$100 application be withdrawn at any time,the deposit shall be adjusted to cover the City's actual costs, Application not submitted prior to establishment including overhead, up to that time. Any funds of remaining on deposit at the time of the a new or changed use of any land completion or withdrawal of the application shall or building...................................................$200 be returned to the depositor, after accounting for expenses incurred to date. 'OTHER PERMITS & ACTIVITIES. See Master Fee Schedule Fee Bulletins 1-100 and Large family daycare permit/extension.......$1,250 1-200 for additional discussion of full cost recovery and current hourly rates. Mobile Food Facilities Vending vehicle permit, annual......................$135 Host permit, annual........................................$250 Special/Temporary Events Special events on private property.................$550 Temporary outside sales permit.....................$375 Official Zoning Letter, per letter.....................$200 Site Plan and architectural review (commercial& industrial).............$2,300 Substantial Conformance Review Administrative..............................................$1,700 VIOLATIONS/AFTER-THE FACT (SUBMITTALS The fee required for applications subsequent to a violation of Title 19 of the CVIVIC shall be double the amount that would normally be required. Such double fee shall not be construed as a penalty, but shall be construed as an added fee required to defray the additional expense of investigation and enforcement by the City as a result of failure to comply with the provisions of the title. If the normal application requires a deposit,the normal deposit is also double. City of Chula Vista www.chulavistaca.gov 619.691.5101 CITY COUNCIL k AGENDA STATEMENT a. CITY OF CHULA VISTA July 17,2018 File ID: 18-0244 TITLE A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE, SALE AND DELIVERY OF MULTI-FAMILY HOUSING REVENUE BONDS OF THE CHULA VISTA HOUSING AUTHORITY FOR ST. REGIS PARK APARTMENTS B. RESOLUTION OF THE CHULA VISTA HOUSING AUTHORITY REGARDING ITS INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS FOR A PROPOSED ACQUISITION AND REHABILITATION OF EXISTING AFFORDABLE UNITS AT ST.REGIS PARK APARTMENTS RECOMMENDED ACTION Council conduct the public hearing,adopt Resolution A,and Authority adopt Resolution B. SUMMARY The Chula Vista Housing Authority has received a request from Chelsea Investment Co. ("Project Sponsor") on behalf of St. Regis Park CIC L.P. to consider the issuance of tax exempt private activity bonds to finance the acquisition and rehabilitation of 119 existing affordable units at St. Regis Park Apartments (the "Project"). The Project is located at 1025 Broadway. The rehabilitation would improve the properties and extend the term of the affordable rents for 55 years (currently scheduled to expire in 2052). ENVIRONMENTAL REVIEW The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 Existing Facilities of the California Environmental Quality Act State Guidelines because it involves the rehabilitation of existing facilities which would not result in an expansion of the existing uses. BOARD/COMMISSION/COMMITTEE RECOMMENDATION The Housing Advisory Commission was not able to consider a recommendation due to a lack of quorum. DISCUSSION The Project Sponsor is requesting that the Chula Vista Housing Authority ("Housing Authority") be the conduit bond issuer for tax-exempt private activity bonds for multi-family projects ("tax-exempt bonds") in an aggregate amount not to exceed $25 million for the acquisition and rehabilitation of the Project located at 1025 Broadway (Attachment 1: Locator Map). An application will be submitted by July 20, 2018 to the California Debt Limit Allocation Committee (CDLAC), the State bonding authority, and for the companion tax credits. The bond allocation and tax credit contributions will be used to substantially finance the Project. Page 11 In compliance with Section 147(f) of the Internal Revenue Service Code of 1986, reflecting the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), a public hearing (the "TEFRA hearing") by the elected legislative body of the jurisdiction must be held to provide the public an opportunity to comment on the use of the tax-exempt funds to finance the Project. Proof of a public hearing to be held within 30 days of application to CDLAC is required for consideration of a bond allocation. At this time,the City Council is asked to hold the TEFRA hearing to consider whether the Housing Authority should issue tax exempt private activity bonds to finance the Project and to approve the issuance,sale, and delivery. of multi-family housing revenue bonds by the Housing Authority at such time as the bond allocation is received from CDLAC. Additionally, it is requested that the Housing Authority adopt a resolution expressing its preliminary intent to issue bonds. Such preliminary actions are necessary in order to allow the Housing Authority to submit an application to CDLAC on behalf of the Project Sponsor and to allow the Project Sponsor to receive reimbursement out of bond proceeds for cost it incurs leading up to the actual sale of the bonds. If successful in obtaining a bond allocation from CDLAC, the Housing Authority will then consider final approval of loan documents for the issuance of bonds. Resolutions presented for the City Council's and Housing Authority's consideration have been prepared by Stradling Yocca Carlson & Rauth, serving as bond counsel for the City of Chula Vista and its Housing Authority. All future bond documents will also be prepared by bond counsel. The Development Team The Project Sponsor, Chelsea Investment Corporation (CIC), is a for-profit affordable housing developer. The project is currently owned by St. Regis Park, L.P., with CIC as the Administrative General Partner. At bond closing, a new limited partnership, St. Regis Park CIC, LP, will be created to acquire, rehabilitate and operate the Project. CIC will continue to serve as the manager of the Administrative General Partnership, retaining a level of ownership and handling management of the properties. Pacific Southwest Community Development Corporation will continue to serve as the managing general partner. Raymond James will be the new tax credit Investor Limited Partner. Table 1 -Ownership Structure r Pacific Southwest Pacific Southwest Managing General Partner 00.01610 Community Development Community Development Corporation Corporation Chelsea Investment Chelsea Investment Administrative General Partner 00.09% Cor oration (CIC), manager Corporation (CIC),manager Investor Limited Partner 99.9% Edison Capital Housing Raymond James CIC will be responsible for managing the rehabilitation of the property through completion and cost certification,with a general contractor overseeing construction. CIC will also be responsible going forward for preparation of annual property-specific budgets, marketing, leasing, overseeing property management and maintenance, income-qualification of residents, annual reporting to investor and lender, payments to lenders and provide resident services. ConAm Management Corporation Property Management will serve as the day to day property manager. CIC has developed over 100 affordable communities throughout California with the majority of the communities within San Diego County. Their communities include special needs housing, senior housing, Page 12 rural housing, and mixed-use developments. St. Regis Park Apartments represents one of the seven bond and tax credit financed affordable housing developments within CIC's portfolio in Chula Vista. Other CIC affordable housing developments in the City of Chula Vista include: • Rancho Buena Vista-Eastlake • Villa Serena Apartments-Sunbow • Landings I-WindingWalk • Landings II-WindingWalk • Duetta-Otay Ranch Millenia • Volta-Otay Ranch Millenia The Proposed Project Built in 1978, the Project consists of 119 affordable rental units for families located at 1025 Broadway in Southwestern Chula Vista, known as "St. Regis". The complex is composed of ten (10) two-story walk-up buildings containing 119 1, 2, and 3 bedroom units for families earning at or below 50 and 60 percent of the area median income (AMI). This project was originally acquired and rehabilitated using former Redevelopment funds in 2000. On June 1, 2000, the Redevelopment Agency of the City of Chula Vista provided a simple interest loan with a principal amount of$1,387,152. The Project is currently subject to a Redevelopment Agency Housing Agreement (assumed by the Chula Vista Housing Authority), Bond Regulatory Agreement and California Tax Credit Allocation Committee (TCAC) Regulatory Agreement,with tenant income and rent restrictions expiring in 2052. The rehabilitation includes improvements to the 119 rental housing units and upgrades to the following amenities: • Laundry rooms (2) • Leasing office • Community room with a computer lab • Playground structure • Swimming pool • Surface parking Additional improvements include extensive demolition of interiors and exteriors (including removal of all mansards), upgrades to storm water systems, twelve ADA unit conversions, replacement of cabinets and countertops,roof repairs, resilient flooring,painting,and re-piping of plumbing between buildings. The Project is ideally located for the convenience of residents. The Project is within comfortable walking and biking distance to recreational opportunities and neighborhood services and has direct access to public transportation. Nearby amenities and services include: ■ 0.01 miles to MTS Bus Route 932 ■ Less than Y2 mile from grocery store and other shopping. ■ Less than Y2 mile from Harborside Park and Elementary Page 13 Building Conditions/Proposed Rehabilitation Work Given the age and the desire to preserve the affordability,the Project Sponsor is proposing the acquisition and rehabilitation of the Project to ensure continued long-term use and viability. At the time of the original acquisition, rehabilitation efforts involved updates to interiors (new appliances, flooring, cabinets, paint) and repairs of roofing, replace gutters/downspouts, exterior painting, and upgrades to tot lot and landscaping, amounting to $15,000 per unit in rehabilitation costs. Since the original construction of the Project,improvements to interiors are done upon turnover of individual units,a replacement of the roofing approximately 8 years ago,and retrofitting of the windows. At this time, a comprehensive renovation is proposed. Based upon the Physical Needs Assessment completed, systems are in fair to poor condition. Built in 1979, the site and buildings will need more extensive work (e.g. significant drainage issues, moisture, ventilation, and roofing). Higher costs for rehabilitation are anticipated to address these issues. The Project total costs for both acquisition and rehabilitation is estimated at$41.82 million. Table 2 -Estimated Costs&Key Performance Indicators akOMMOMM Acquisition' $ 23,100,000 $ 194,118 $ 151 Construction $ 9,910,983 $ 83,286 $ 65 Soft Costs $ 8,810,523 $ 74,038 $ 68 TOTAL COSTS $ 41,821,507 $ 351,441 $ 284 TOTAL Dwelling Units DUs 119 TOTAL Gross Bldg Sq Ft 156,162 A Physical Needs Assessment has been completed for the Project,which will serve as the basis for a more detailed scope of work to be competitively bid by a general contractor and value engineered to the final sources of funds available for the rehabilitation. The scope of work will address the immediate physical needs and will extend the useful life of the building systems, reduce operating costs and improve energy efficiency. Additionally, in accordance with TCAC regulations, rehabilitation projects must meet the minimum 10 percent post-rehabilitation improvements in energy efficiency over existing conditions and provide wheelchair accessibility in 10 percent of the units and 4 percent of the units accessible to residents with visual and/or hearing impairment. Priority items to be addressed across the portfolio include the following immediate and short term repairs: 1. Site • Drainage modifications • Patching,crack sealing,sealing and striping of pavement and parking areas 2. Improved Amenities ■ Resurface Pool and Repair Deck ■ Replace perimeter wood fencing 1 Acquisition costs are based upon an Appraisal Report as of 05/18/2018 indicating a$23,100,000 market value of the fee simple estate assuming restricted rents and$2,600,000 hypothetical value of underlying land as encumbered by a Regularity Agreement. Hypothetical conditions are specified by TCAC appraisal regulations. z Includes the estimated costs to address the scope of work proposed, temporary relocation, general contactor's profit/overhead/general requirements,and a construction contingency. Page 4 ■ Replace and refurbish wrought iron fencing ■ Replace tot-lot equipment 3. Facade Improvements • Replace dry rot and touch up paint on wood exteriors and facades, including stucco repair • Apartment window repairs and partial replacement 4. Roof Repairs • Replace damaged shingles 5. Other construction/replacement activities • Plumbing-replace/repair portions of domestic water lines • HVAC-installation of Humidstat fans to prevent moisture in stucco cavity and improve ventilation • Carbon Monoxide detectors 6. Interiors ■ Kitchen Finishes- Replacement with new laminate cabinets and solid surface counters ■ Bathroom Finishes- Replacement with new laminate vanities and solid surface counters ■ Plumbing-New fixtures,angle stops toilets at units and common baths ■ Carpet/Vinyl flooring replacement ■ Appliances-Replace circulating range hood vents 7. Improved Accessibility ■ 10 percent of units (12 DUs) required as fully accessible ■ 4 percent of units (5 DUs)with accommodations for visual and hearing impaired ■ ADA compliant handrails ■ Accessible parking stalls As rehabilitation is performed on each unit, households may require temporary relocation off-site. Such relocation expenses are contemplated in the rehabilitation costs and will be covered by the Partnership. Income&Rent Restrictions For the bond financing, Section 142 (d) of the Internal Revenue Code requires either a minimum of 20 percent of the rental units in the Project to be available for occupancy by persons or families whose income does not exceed 50 percent of the area median income (AMI) for the San Diego Primary Metropolitan Statistical Area, or alternatively, at least 40 percent of the rental units are required to be available for occupancy by persons or families whose income does not exceed 60 percent of the AMI.The units are made available at affordable rents established by the applicable State law. The project will exceed the affordability requirements with 119 units currently restricted as affordable for very low-income households at 50 percent of AMI and low income households at 60 percent of AMI, with one unit reserved for the resident manager, see Table 3. The Project proposes to maintain the existing income and rent restrictions for fifty-five years from the effective date of the bond financing agreements, exceeding the existing affordability period ending 2052. These income and rent restrictions will be outlined within a bond regulatory agreement to be recorded against the property. Page � 5 Table 3 -Affordability&Estimated Monthly Rent/Income (Effective April 1,2018) , 1 Bdrm 1 Ba 1 $818 $ 31,400 4 $981 $40,920 2 Bdrm 1 Ba 22 $920 $ 38,950 87 $ 1104 $46,740 3 Bdrm 1 $1022 $43,800 3 $1227 $52,560 TOTAL DUS 241 94 Compliance with the income and rent restrictions will be subject annually to a regulatory audit and annual tax credit certification. Compliance with strict property management policies and procedures will ensure that income and rent restrictions will be maintained for the full 55-year compliance period. Proposed Financing of Project The Tax Exempt Multi-Family Revenue Bonds and Low Income Housing Tax Credit financing will support the majority of the estimated $41.82 million total development cost of the Project. The Project Sponsor has requested the Housing Authority consider the issuance of a maximum of$25 million in tax exempt bonds to be privately placed with Raymond James. It is anticipated that the bonds will be used for both construction and permanent financing of the Project. The $25,000,000 maximum bond.allocation is approximately 12 percent higher than the amount for which the Project is being underwritten for financing,which is$22,500,000. This maximum allocation represents a slight cushion to account for possible increases in the bond amount due to increases in rehabilitation costs or decreases in the assumed interest rate. The bond amount that is ultimately issued will be based upon project costs,revenues and interest rates prevailing at the time of bond issuance. The Project Sponsor will also apply for approximately$11.35 million in Low Income Housing Tax Credits. The balance of needed funds for the construction and permanent financing of the Project is proposed to be provided by deferred developer fee, rebates, and income during construction. There will be no Housing Authority loan proceeds provided to the Project. A summary of the estimated sources and uses submitted by the Project Sponsor is provided in Attachment 2. The bonds will meet all requirements of the Housing Authority's Multifamily Housing Revenue Bond Program and will fully comply with the City bond disclosure policies. Final approval of the issuance of the bonds and the related bond documents will be presented to the City and its Housing Authority for approval at such time Project Sponsor is successful in receiving a commitment from CDLAC for a bond allocation. ❑r®m Article 34 of the California Constitution requires that voter approval be obtained before any "state public body" develops, constructs or acquires a "low rent housing project". The Project is existing and therefore, exempt from the requirement. 3 1/12th of 30%of 50%or 60%of AMI °Assumes 1 person per bedroom Page 6 DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council and the Housing Authority members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov't Code §87100,et seq.). Staff is not independently aware, and has not been informed by any City Council or Housing Authority member,.of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The development and provision of quality affordable housing for low-income families and seniors within master planned communities supports the Economic Vitality goals as it promotes the development quality neighborhoods that provide a full complement of uses and services in a balanced fashion. With only 16 percent of the housing within the areas east of Interstate-805 available as multifamily housing, the St. Regis Apartment Project will preserve 119 rental units within the Southwest community of Chula Vista and will preserve the availability of housing opportunities for all economic segments of the community for an additional 55 years. With 57 percent of Chula Vista households earning less than the U.S. Department of Housing and Urban Development's area median income, the development of affordable housing addresses the City's Connected Community goals as it provides housing to meet residents' needs and priorities. CURRENT-YEAR FISCAL IMPACT Bond Financing is a self-supporting program with the borrower responsible for the payment of all costs of issuance and other costs of the bonds. The Housing Authority will receive compensation for its services in issuing bonds by charging an origination fee equal to 20 basis points (0.20%) of the total original principal amount of the bonds to be issued,with a minimum fee of$15,000. The issuance fee estimated to be paid to the Housing Authority by the owner will be$50,000 ($25 million x.0020). ONGOING FISCAL IMPACT The Multifamily Housing Revenue Bond program is self-supporting. Staff costs associated with monitoring compliance of the regulatory restrictions and administration of the outstanding bonds will be reimbursed from an annual administrative fee of$17,000 paid to the Housing Authority by the owner. ATTACHMENTS 1. Locator Map 2. Sources and Uses 2. Disclosure Form Staff Contact.Jose Dorado,Senior Management Analyst, Chula Vista Housing Page 7 � r e 1_ `�„ syr. g'�s° G a �•.... ��%,� �"".�`y •E`*.:5�. '��� � i lTi. .{ AM Wit- �.iµ a+,7•x, �•. '* -� 015 � -Y.. �N.,�,. � � { ° �• 1 1O "'� �-ed �'�`�w� ��x� �,� �O i� 7J� al .a 5� $�s^` �I®..� r��•fA� M " Y$ � � � �" � Ade__.."�. �� Oea q # �. gc.��?u '.` ib.• >�� AV�M J� ;#. � ._ rte' � Z � �r ,.` + �''y... 3, ! C6 ' NFY-j#�! s W � ham. Q• � � m .,..•+"� m � 4= 1 as pve �,. a•O q. � a # ,; Pva off•.. `, ��{q � f i �W 'NpedioW^ � ��y'• � �"�.,.."L6"'� �V p#� ac. 1 µ°"°`!ms Nei . ,h'� ..� ,�ap� � �" �� ,4l•� y 4 r 1��nt0er..m Y„ ' kr ' U Ln 11 W7 a OD Opo IE ,o' i'U i.� � i t� i � �' K •z7i A 1 ❑❑❑❑ ST. REGIS 119 Units Sources and Uses Cost Funds Prosect Cost: Acquisition $23,100,000 Structures&Site Improvements $9,910,983 A&E $77,214 Financing Fees and Interest $2,218,643 Legal Fees $279,500 Reserves $332,494 Development Impact Fees $68,000 Developer Fee $4,759,973 'Misc. (acctg, marketing, reports, studies, etc.) $972,286 Contingency $102,414 Total Development Costs $41,821,507 Sources of Funds Tax Credit Equity $ 11,354,279 Solar LIHTC+Rebates $ - Permanent Loan $ 10,890,600 Subtotal $ 22,244,879 Subsidies Deferred Developer Fee $ 3,499,350 Seller Carryback $ 15,000,000 Bond Performance Deposit $ - Income from Operations $ 704,364 Seller Note Interest $ 372,914 Subtotal $ 19,576,628 TOTAL $ 41,821,507 Project Dus 119 Project Cost $ 41,821,507 Cost per Unit $ 351,441 per unit S[bsidy Lay[rinDSt.RDCis 2018.[ls/SDEI Dary ProforDa 2018[06 Revised. 06/2018 Development Services Department i Housing Division ( Development Processing OF CHUILAVISfA AFFORDABLE HOUSING APPLICATION I Part IV Required Attachments The following items must be attached to this request: • Completed Disclosure Statement of Ownership Interests within the project(Appendix A). • Street map that identifies the project and neighborhood boundaries. • Site development plan for affordable housing units; and • Complete description of financial assistance or incentives including specific terms that are, or will be requested from the City of Chula Vista for the project, if applicable. Certification/Authorization Cheri Hoffman, an authorized representative of the developer, certifies that the information contained in this application is true and correct. Authorization is provided to the City of Chula Vista and its Housing Authority to verify information provided in this application, including but not limited to the developer's credit rating, status and payment history. of real estate loans and performance on contracts with third parties. The City/Authority is further authorized to use photocopies .of this authorization to obtain third party contractual and credit references and status of the developer's obligations. The confidentiality of the information you have furnished will be preserved except where disclosure of this information is required by applicable law. Signature.: / Date: 6/11/2018 Printed Name: Cheri Hoffman Title: President of Chelsea Investment Corporation Address: 6339 Paseo del Lago, Carlsbad, CA 92011 Telephone 760-456-6000 E-Mail: cheri@chelseainvestco.com No.: THIS BOX IS FOR CITY USE ONLY Date Request Received: Click here to enter text. Staff Recommendation: C'ti::k hers to enter text. Date of Housing Advisory Commission Review: Click h_-rc to eluer text. Action on Request by Housing Advisory Commission: (`Lick here to ertter teat. Other Comments: Click iters it) eliter i .276 Fourth Avenue I Chula Vista I California 91910 I www.chulavistaca.gov (619) 691.-5047 Development Services Department Housing Division I Development Processing UIcrryOISfA AFFORDABLE HOUSING APPLICATION I Part V f Disclosure Statement Pursuant to City Council Policy 101-01, prior to any action on a matter that requires discretionary action by the City Council, Planning Commission or other official legislative body of the City, a statement of disclosure of certain ownerships, financial interests, payments, and campaign contributions must be filed. The following information must be disclosed: 1. List the names of all persons* having a financial interest in the project that is the subject of the application, project or contract (e.g., owner, applicant, contractor, subcontractor, material supplier). Jim Schmid AGP Robert Laing MGP Charles Schmid Contractor Click here to enter text. Click here to enter text. 2. If any person* identified in section 1. is a corporation or partnership, list the names of all individuals with an investment of$2000 or more in the entity. Jim Schmid CEO of Chelsea Investment Corporation Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. 3. If any person* identified in section 1. is a non-profit organization or trust, list the names o.f any person who is the director of the non-profit organization or the names of the trustee, beneficiary and trustor of the trust. Robert Laing Executive Director of Pacific Southwest Community Development Corporation Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. 4. Please identify every person,* including any agents, employees,consultants,or independent contractors,whom you have authorized to represent you before the City in this matter. Cheri Hoffman President of Chelsea Investment Corporation Click here:to enter text. Click here to enter text. Click here to enter text. Click here to enter text. l 276 Fourth Avenue I Chula Vista California 91910 1 www.chulavistaca.gov 1 (619) 691-5047 Development Services Department Housing Division I Development Processing CHULAVISTA AFFORDABLE HOUSING APPLICATION I Part V i Disclosure Statement — Page 26 5. Has any person* identified in 1., 2., 3., or 4., above, or otherwise associated with this contract, project or application, had any financial dealings with an official** of the City of Chula Vista as it relates to this contract, project or application within the past 12 months? ❑ Yes ® No If yes,briefly describe the nature of the financial interest the official** may have in this contract. 6. Has any person*anyone identified in 1., 2.,3.,or 4.,above, or otherwise associated with this contract, project or application, made a campaign contribution of more than$250 within the past twelve(12) months to an official of the City of Chula Vista? ® Yes ❑ No If Yes, briefly describe the nature of the financial interest the official*" may have in this contract. Jim Schmid made a personal donation to Steve Padilla in September 2017 for$310 Ribbons&Shovels$500 2.28.2018 Fourth Fest$500 2.28.2018 Charles Schmid sent Friends of Steve Padilla$310 10/13/2017 7. Has any person* identified in 1., 2.,3., or 4., above,or otherwise associated with this contract, project or application, provided more than$440(or an item of equivalent value)to an official** of the City of Chula Vista in the past twelve (12) months? (This includes any payment that confers a personal benefit on the recipient, a rebate or discount in the price of anything of value, money to retire a legal debt, gift, loan, etc.) ❑ Yes ® No If Yes,which official** and what was the nature of item provided? ( Click here to eater text. 8. Has any person* identified in 1., 2.,3.,or 4., above, or otherwise associated with this contract, project or application, been a source of income of$500 or more to an official**of the City of Chula Vista in the past twelve (12) months? ❑ Yes L No If yes,which official** and the nature of the item provided? Click here to enter text. ( 276 Fourth Avenue I Chula Vista I California 91910 1 www.chulavistaca.gov (619) 691-5047 i 1 Development Services Department Housing Division I Development Processing i CHULLAVISTA AFFORDABLE HOUSING APPLICATION ( Part V i Disclosure Statement — Page 27 I 6/11/2018 Date Signature of Contracto plicant i Cheri Hoffman Print or type name of Contractor/Applicant * Person is identified as: any individual, firm, co-partnership,joint venture, association,social club, fraternal organization, corporation, estate,trust, receiver; syndicate, any other county; city, municipality, district, or other political subdivision, or any other group or combination acting as a unit. i *.* Official includes, but is not limited to: Mayor,Council member, Planning Commissioner, Member of a board, commission, or committee of the City, and City employees or staff members. ***This Disclosure Statement must be completed at the time the project application, or contract, is submitted to City staff for processing, and updated within one week prior to consideration by the legislative body. i I i i i i 276 Fourth Avenue Chula Vista California 91910 www.chulavistaca.gov I (619) 691-5047 t i RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE, SALE AND DELIVERY OF MULTIFAMILY HOUSING REVENUE BONDS OF THE CHULA VISTA HOUSING AUTHORITY FOR ST. REGIS PARK APARTMENTS WHEREAS, the Chula Vista Housing Authority (the "Authority') intends to issue multifamily housing revenue bonds in an amount not to exceed $25,000,000 in aggregate principal (the 'Bonds") to finance the acquisition and rehabilitation of an existing 119-unit multifamily rental housing project known as St. Regis Park Apartments located at 1025 Broadway(the "Project') in the City of Chula Vista, California (the "City'); and WHEREAS, the Project will be owned and/or operated by St. Regis Park CIC, LP., or another limited partnership affiliated with Chelsea Investment Corporation (the "Owner); and WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), the Bonds are required to be approved, following a public hearing, by an elected representative of the governmental unit having jurisdiction over the area in which the Project is located; and WHEREAS, the Project is located wholly within the geographic jurisdiction of the City; and WHEREAS, the City Council (the "City Council") is the elected legislative body of the City; and WHEREAS, the City has caused a notice to appear in the Star News, which is a newspaper of general circulation in the City, on June 29, 2018 to the effect that a public hearing would be held by the City Council on July 17, 2018, regarding the issuance of the Bonds by the Authority; and WHEREAS, on July 17, 2018, the City Council held said public hearing, at which time an opportunity was provided to present arguments both for and against the issuance of the Bonds. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula Vista, as follows: Section 1. The City Council does hereby find and declare that the above recitals are true and correct. Section 2. Pursuant to Section 147(f) of the Code, the City Council hereby approves the issuance of the Bonds by the Authority in one or more series, in an aggregate principal amount not to exceed $25,000,000 and with a final maturity not later than 55 years from the date of issuance to finance the acquisition, rehabilitation and equipping of the Project. It is the purpose and intent of the City Council that this Resolution constitutes approval of the issuance of Resolution No. Page 2 the Bonds by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located; in accordance with said Section 147(f). Section 3. This Resolution shall take effect from and after its adoption. Presented by Approved as to form by Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services City Attorney RESOLUTION NO. RESOLUTION OF THE CHULA VISTA HOUSING AUTHORITY REGARDING ITS INTENTION TO ISSUE TAX- EXEMPT OBLIGATIONS FOR A PROPOSED ACQUISITION AND REHABILITATION OF EXISTING AFFORDABLE UNITS AT ST. REGIS PARK APARTMENTS WHEREAS, the Chula Vista Housing Authority (the "Issuer') desires to assist St. Regis Park CIC, L.P., a California limited partnership, or another limited partnership affiliated with Chelsea Investment Corporation (the `'Applicant") in financing the costs of acquiring and rehabilitating a l 19-unit multifamily rental housing project known as St. Regis Park Apartments, as described in Exhibit A attached hereto and incorporated herein (the "Project"): and WHEREAS, the Issuer intends to assist in the financing of the acquisition and rehabilitation of the Project or portions of the Project with the proceeds of the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations"), which Obligations are expected to be issued pursuant to Chapter 1 of Part 2 of Division 24 the Health and Safety Code of the State of California; provided, however, that this Resolution shall not authorize the issuance of the Obligations and provided further that neither the faith and credit nor the taxing power of the Issuer shall be pledged to repay such Obligations if, and when, authorized; and WHEREAS, prior to the issuance of the Obligations the Applicant expects to incur certain expenditures with respect to the Project from its own available monies which expenditures it desires to have reimbursed from a portion of the proceeds of the sale of the Obligations if, and when, issued; and WHEREAS, Section 146 of the Internal Revenue Code of 1986, as amended (the "Code") limits the amount of multifamily housing revenue bonds that may be issued in any calendar year by entities within a state and authorizes the governor or the legislature of a state to provide the method of allocation within the state; and WHEREAS, Chapter 11.8 of Division 1 of Title 2 of the Government Code of the State of California (the "Government Code") governs the allocation of the state ceiling among governmental units in the State of California having the authority to issue multifamily housing revenue bonds; and WHEREAS, Section 8869.85 of the Government Code requires a local agency to file an application with the California Debt Limit Allocation Committee ("CDLAC") prior to the issuance of multifamily housing revenue bonds; and WHEREAS, the Issuer desires to apply to CDLAC for an allocation for the Project. NOW, THEREFORE, THE BOARD OF COMMISSIONERS OF THE CHULA VISTA HOUSING AUTHORITY DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: l Resolution No. Page 2 SECTION 1. The Issuer has received an application for the financing of the Project on behalf of the Applicant (the "Application"). The Applicant will incur costs with respect to the Project prior to the issuance of the Obligations. The Issuer hereby states its intention and reasonably expects to reimburse to the Applicant for such costs with proceeds of the Obligations; provided, however, that nothing herein obligates the Issuer to issue the Obligations or provides the Applicant with any legal right to compel the issuance of the Obligations, which decision remains in the final discretion of the Issuer. Exhibit A describes the general character, type, purpose, and function of the Project. SECTION 2. The reasonably expected maximum principal amount of the Obligations is $25,000,000. This.Resolution is being adopted no later than sixty (60) days after the date (the "Expenditure Date or Dates") that the Applicant will expend moneys for the portion of Project costs to be reimbursed from proceeds.of the Bonds. The expected date of issue of the Bonds is within eighteen (18) months of the later of the Expenditure Date or Dates and the first date the Project are placed in service and, in no event, later than three years after the Expenditure Date or Dates. SECTION 3. Proceeds of the Bonds to be used to reimburse for Project costs are not expected to be used directly or indirectly to pay debt service with respect to any obligation or to be held as a reasonably required reserve or replacement fund with respect to an obligation of the Issuer or any entity related in any manner to the Issuer, or to reimburse any expenditure that was originally paid with the proceeds of any obligation, or to replace funds that are or will be used in such manner. SECTION 4. This Resolution is consistent with the budgetary and financial circumstances of the Issuer, as of the date hereof. No monies from sources other than the Obligations are, or are reasonably expected to be reserved, allocated on a long-term basis, or otherwise set aside by the Issuer (or any related party) pursuant to their budget or financial policies with respect to the portion of the Project costs to be financed with the Obligations. This Board of Commissioners is not aware of any previous adoption of official intents by the Issuer that have been made as a matter of course for the purpose of reimbursing expenditures relating to the Project and for which tax-exempt obligations have not been issued. SECTION 5. This Resolution is adopted as official action of the Issuer in order to comply with Treasury Regulation § 1.103-8(a)(5) and Treasury Regulation § 1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of expenditures incurred prior to the date of issue of the Obligations, is part of the Issuer's official proceedings, and will be available for inspection by the general public at the main administrative office of the Issuer. SECTION 6. The officers and employees of the Authority are hereby authorized and directed to apply to CDLAC for a portion of the private activity bond allocation set aside for the calendar year 2018 for the Project in an aggregate amount not to exceed $25,000,000, to collect Resolution No. Page 3 from the Applicant and hold pursuant to CDLAC requirements the required CDLAC deposit for the requested allocation, and to certify to CDLAC that such amount has been placed on deposit in an account in a financial institution. Because the amount of private activity bond allocation is limited, such officers are also authorized to resubmit the application to CDLAC one or more times during the calendar year 2018 in the event the application is denied by CDLAC. SECTION.7. The officers and employees of the Issuer are hereby authorized and directed,jointly and severally, to take any actions and execute and deliver any and all documents which any of them deem necessary or advisable, with the advice of City Attorney, in order to effectuate the purposes of this Resolution, and such actions previously taken by such officers and employees are hereby ratified and confirmed; provided that the terms and conditions under which the Bonds are to be issued and sold must be approved by this Board in the manner provided by law prior to the sale of the Bonds. SECTION 8. All the recitals in this Resolution are true and correct. SECTION 9. This Resolution shall take effect immediately upon its adoption. Presented by Approved as to form by Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services Legal Counsel EXHIBIT A DESCRIPTION OF PROJECT A multi-family rental housing project totaling 119 units known as "St. Regis Park Apartments" apartments located at 1025 Broadway in the City of Chula Vista, California. -� CITY COUNCIL AGENDA STATEMENT CHULA VISTA July 17,2018 File ID: 18-0245 TITLE A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE, SALE AND DELIVERY OF MULTI-FAMILY HOUSING REVENUE BONDS OF THE CHULA VISTA HOUSING AUTHORITY FOR VILLA SERENA AFFORDABLE APARTMENTS B. RESOLUTION OF THE CHULA VISTA HOUSING AUTHORITY REGARDING ITS INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS FOR A PROPOSED ACQUISITION AND REHABILITATION OF EXISTING AFFORDABLE UNITS AT VILLA SERENA AFFORDABLE APARTMENTS RECOMMENDED ACTION Council conduct the public hearing,adopt Resolution A,and Housing Authority adopt Resolution B. SUMMARY The Chula Vista Housing Authority has received a request from Chelsea Investment Co. ("Project Sponsor") on behalf of Serena Sunbow L.P. to consider the issuance of tax exempt obligations to finance the acquisition and rehabilitation of 132 existing affordable units at Villa Serena Apartments (The "Project"). The Project is located at 1231 Medical Center Drive. The rehabilitation would improve the properties and extend the term of the affordable rents for 55 years (currently scheduled to expire in 2052). ENVIRONMENTAL REVIEW The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 Existing Facilities of the California Environmental Quality Act State Guidelines because it involves the rehabilitation of existing facilities which would not result in an expansion of the existing uses. BOARD/COMMISSION/COMMITTEE RECOMMENDATION The Housing Advisory Commission was not able to consider a recommendation due to a lack of quorum. DISCUSSION The Project Sponsor is requesting that the Chula Vista Housing Authority ("Housing Authority") be the conduit bond issuer for tax-exempt private activity bonds for multi-family projects ("tax-exempt bonds") in an aggregate amount not to exceed $21 million for the acquisition and rehabilitation of the Project located at 1231 Medical Center Drive (Attachment 1: Locator Map). An application will be submitted by July 20, 2018 to the California Debt Limit Allocation Committee (CDLAC), the State bonding authority, and for the companion tax credits. The bond allocation and tax credit contributions will be used to substantially finance the Project. Page 11 In compliance with Section 147(f) of the Internal Revenue Code of 1986, reflecting the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA),a public hearing(the "TEFRA hearing") by the elected legislative body of the jurisdiction must be held to provide the public an opportunity to comment on the use of the tax-exempt funds to finance the Project. Proof of a public hearing to be held within 30 days of application to CDLAC is required for consideration of a bond allocation. At this time, the City Council is asked to hold the TEFRA hearing regarding whether the Housing Authority should issue tax exempt bonds to finance the Project and to approve the issuance, sale, and delivery of multi-family housing revenue bonds by the Housing Authority at such time the bond allocation is received from CDLAC. Additionally, it is requested that the Housing Authority adopt a resolution expressing its preliminary intent to issue bonds. Such preliminary actions are necessary in order to allow the Housing Authority to submit an application to CDLAC on behalf of the Project Sponsor and to allow the Project Sponsor to receive reimbursement out of bond proceeds for cost it incurs leading up to the actual sale of the bonds. If successful in obtaining a bond allocation from CDLAC, the Housing Authority will then consider final approval of loan documents for the issuance of bonds. Resolutions presented for the City Council's and Housing Authority's consideration have been prepared by Stradling Yocca Carlson & Rauth, serving as bond counsel for the City of Chula Vista and its Housing Authority. All future bond documents will also be prepared by bond counsel. The Development Team The Project Sponsor, Chelsea Investment Corporation (CIC), is a for-profit affordable housing developer. The project is currently owned by Serena Sunbow L.P., with CIC as the Administrative General Partner. At bond closing, a new limited partnership, Villa Serena CIC, LP, will be created to acquire, rehabilitate and operate the Project. Under the new limited partnership, CIC will continue to serve as the Administrative General Partner, retaining a level of ownership and handling management of the properties. Pacific Southwest Community Development Corporation will continue to serve as the managing general partner and Candeur Group will be the new tax credit Investor Limited Partner. Table 1 -Ownership Structure 410 0 Pacific Southwest Pacific Southwest Managing General Partner 00.01% Community Development Community Development Corporation Corporation Administrative General Partner 00.09% Chelsea Investment Chelsea Investment Corporation (CIC), Manager Corporation (CIC),Manager Investor Limited Partner 99.9% Edison Capital Housing Candeur Group Investment CIC will be responsible for managing the rehabilitation of the properties through completion and cost certification,with a general contractor overseeing construction. CIC will also be responsible going forward for preparation of annual property-specific budgets, marketing, leasing, overseeing property management and maintenance, income-qualification of residents, annual reporting to investor and lender, payments to lenders and provide resident services. ConAm Management Corporation Property Management will serve as the day to day property manager. p a g eve 2 CIC has developed over 100 affordable communities throughout California with the majority of the communities within San Diego County. Their communities include special needs housing, senior housing, rural housing, and mixed-use developments. Villa Serena Apartments represents one of the seven bond and tax credit financed affordable housing developments within CIC's portfolio in Chula Vista. Other CIC affordable housing developments in the City of Chula Vista include: • Rancho Buena Vista-Eastlake • St.Regis Park Apartments-Southwest • Landings I-WindingWalk • Landings II-WindingWalk • Duetta-Otay Ranch Millenia • Volta-Otay Ranch Millenia The Proposed Project Built in 2000, the Project consists of 132 affordable rental units for senior households located at 1231 Medical Center Drive within the Sunbow master planned community. This project was originally built and financed using former Redevelopment funds and received a Density Bonus concession. The Redevelopment Agency loan of$275,000 was fully paid in April 2008. The Project is currently subject to a City and Housing Authority Housing Agreement, Bond Regulatory Agreement and California Tax Credit Allocation Committee (TCAC) Regulatory Agreement, with tenant income and rent restrictions expiring in 2052. The complex is composed of three (3) two and three-story apartment buildings, one one-story laundry building, and one one-story community building all located on a 4.14 acre lot. Site amenities include a community room,exercise room, courtyard/picnic area,laundry room and computer room. The Project is ideally located for the convenience of residents. The Project is within comfortable walking and biking distance to recreational opportunities and neighborhood services and has direct access to public transportation. Nearby amenities and services include: ■ Directly adjacent to Veterans Home of California and MTS Bus Route 704 (E St Transit Center); ■ 1/4 mile from Sharp Chula Vista Medical Center; ■ 1/3 mile from Ralphs grocery store and other shopping; ■ 1/3 mile from Veterans Park and Recreation Center; and, ■ 1/z mile from MTS Bus Route 712 (Palomar Transit Center). Building Conditions/Proposed Rehabilitation Work Given the age and the desire to preserve the affordability,the Project Sponsor is proposing the acquisition and rehabilitation of the Project to ensure continued long-term use and viability. Since the original construction of the Project, no comprehensive renovations have been completed. Project acquisition and rehabilitation costs are estimated to total $32.7 million ($19.4 million for acquisition and $13.3 million for construction and soft costs). Additional detail is provided in Table 2 below. .Page 3 Table 2 - Estimated Costs.&Key Performance Indicators �I i a, aft IN WWI r S, of # Y ,, . W Acquisition' $ 19,400,000 $ 146,970 $ 162 Construction2 $ S,183,787 $ 39,271 $ 43 Soft Costs $ 8,144,664 $ 61,702 $ 68 TOTAL COSTS $ 32,728,451 $ 247,943 $ 273 TOTAL Dw Bing Units DUs 132 TOTAL Gross Bldg Sq Ft 119,706 A Physical Needs Assessment has been completed for the Project, which will serve as the basis for a more detailed scope of work.to be competitively bid by a general contractor and value engineered to the final sources of funds available for the rehabilitation. The scope of work will address the immediate physical needs and will extend the useful life of the building systems, reduce operating costs and improve energy efficiency. Additionally, in accordance with TCAC regulations, rehabilitation projects must meet the minimum 10 percent post-rehabilitation improvements in energy efficiency over existing conditions and provide wheelchair accessibility in 10 percent of the units and 4 percent of the units accessible to residents with visual and/or hearing impairment. Priority items to be addressed across the portfolio include the following immediate and short term repairs: 1. Site ■ Topo-Drainage Modifications ■ Pavement/Parking-Replace Damaged Concrete ■ Amenities-Site Lighting Improvements ■ Amenities-Security Fencing ■ Improve Non-Conforming Ramps for accessible parking 2. Mechanical/Electrical ■ Plumbing-Replace boilers,pumps,storage tanks ■ HVAC-Humidistat Fans ■ Fire Safety-Fire Alarm Panels-Obtain current inspection certification ■ Safety-Carbon Monoxide Detectors ■ Elevator-Inspection and maintenance Other physical needs to be addressed with the acquisition and rehabilitation will include: 1. Site ■ Paving/Parking-Patching,crack sealing,sealing,and striping ■ Amenities-Refurbish mailboxes ■ Signage-New signage for units, common areas and directories and reface monument sign 1 Acquisition costs are based upon an Appraisal Report as of 11/0S/2017 indicating a$16,200,000 market value of the fee simple estate assuming restricted rents and$3,170,000 hypothetical value of underlying land as encumbered by a Regulatory Agreement. Hypothetical conditions are specified by TCAC appraisal regulations. 2 Includes the estimated costs to address the scope of work proposed, temporary relocation, general contactor's profit/overhead/general requirements,and a construction contingency. Page 4 ■ Path of travel upgrades ■ Painting of trash and site trellises and railings 2. Architecture ■ Facades- Exterior Paint,stucco repairs,dry rot replacements ■ Facades-Apartment window replacements ■ Roof-Remove and install new underlayment and metal. 3. Mechanical/Electrical ■ Electrical fixture replacement and exterior lighting ■ Replace electrical wall heaters in ADA unit conversions 4. Interiors ■ Kitchen Finishes- Replacement with new laminate cabinets and solid surface counters ■ Bathroom Finishes- Replacement with new laminate vanities and solid surface counters ■ Plumbing-New fixtures,angle stops toilets at units and common baths ■ Carpet/Vinyl flooring replacement ■ Appliances-Replace circulating range hood vents S. Accessibility ■ 10 percent of units (14 dus) required as fully accessible ■ 4 percent of units (5 dus)with accommodations for visual and hearing impaired ■ ADA compliant handrails ■ Accessible parking stalls As rehabilitation is performed on each unit, households may require temporary relocation off-site. Such relocation expenses are contemplated in the rehabilitation costs and will be covered by the Partnership. Income&Rent Restrictions For the bond financing, Section 142 (d) of the Internal Revenue Code requires either a minimum of 20 percent of the rental units in the Project to be available for occupancy by persons or families whose income does not exceed 50 percent of the area median income (AMI) for the San Diego Primary Metropolitan Statistical Area, or alternatively, at least 40 percent of the rental units are required to be available for occupancy by persons or families whose income does not exceed 60 percent of the AMI.The units are made available at affordable rents established by the applicable State law. The project will exceed the affordability requirements with 132 units currently restricted as affordable for very low-income households at 50 percent of AMI and low income households at 60 percent of AMI, with one unit reserved for the resident manager, see Table 3. The Project proposes to maintain the existing income and rent restrictions for fifty-five years from the effective date of the bond financing agreements, exceeding the existing affordability period ending 2052. These income and rent restrictions will be outlined within a bond regulatory agreement to be recorded against the property. Page 15 Table 3 -Affordability&Estimated Monthly Rent/Income (Effective April 1,2018) m ' S17.9J-l=TZA • 1 Bdrm 1 Ba 22 $818 $ 31,400 90 $981 $40,920 2 Bdrm 1 Ba 5 $920 $ 38,950 14 $ 1104 $ 46,740 TOTAL DUS 271 1 1041 1 Compliance with the income and rent restrictions will be subject annually to a regulatory audit and annual tax credit certification. Compliance with strict property management policies and procedures will ensure that income and rent restrictions will be maintained for the full SS-year compliance period. Proposed Financing of Project The Tax Exempt Multi-Family Revenue Bonds and Low Income Housing Tax Credit financing will support the majority of the estimated $32.7 million total development cost of the Project. The Project Sponsor has requested the Housing Authority consider the issuance of a maximum of$21 million in tax exempt bonds to be privately placed with Candeur Group. It is anticipated that the bonds will be used for both construction and permanent financing of the Project. The $21,000,000 maximum bond allocation is approximately 10 percent higher than the amount for which the Project is being underwritten for financing,which is$19,000,000. This maximum allocation represents a slight cushion to account for possible increases in the bond amount due to increases in rehabilitation costs or decreases in the assumed interest rate. The bond amount that is ultimately issued will be based upon project costs,revenues and interest rates prevailing at the time of bond issuance. The Project Sponsor will also apply for approximately$8.2 million in Low Income Housing Tax Credits.The balance of needed funds for the construction and permanent financing of the Project is proposed to be provided by deferred developer fees, rebates, and income during construction. There will be no Housing Authority loan proceeds provided to the Project. A summary of the estimated sources and uses submitted by the Project Sponsor,see Table 4 below. Table 4-Sources&Uses Tax-Exempt Bonds $18,707,410 $11,625,000 City of Chula Vista Loan $0.00 $0.00 Low Income Housing Tax Credit Equity $979,474 $8,192,628 Tax Credit Equity Reserves Demand Note $350,000 Seller Carry Back Loan $9,151,674 $11,376,358 Existing Reserves - Income from Operations $513,080 $726,862 Deferred Developer Fees $817,603 Total $29,351,638 $33,088,451 3 1/12th of 30%of 50%or 60%of AMI 4 Assumes 1 person per bedroom C Acquisition Land and Building) $19,400,000 $19,400,000 Rehabilitation (Including Contingency) $5,235,554 $5,235,554 Architectural En ineerin Technical $44,000 $44,000 Financing fees and interest $1,830,085 $1,830,085 Reserves $350,000 Development and Impact Fees $100,000 $100,000 Miscellaneous Soft Costs $1,991,999 $2,491,210 Developer Fees $750,000 $3,637,602 Total $29,351,638 $33,088,451 The bonds will meet all requirements of the Housing Authority's Multifamily Housing Revenue Bond Program and will fully comply with the City bond disclosure policies. Final approval of the issuance of the bonds and the related bond documents will be presented to the City and its Housing Authority for approval at such time Project Sponsor is successful in receiving a commitment from CDLAC for a bond allocation. ❑r®m Article 34 of the California Constitution requires that voter approval be obtained before any "state public body" develops, constructs or acquires a "low rent housing project". The Project is existing and therefore, exempt from the requirement. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council and the Housing Authority members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov't Code §87100,et seq.). Staff is not independently aware, and has not been informed by any City Council or Housing Authority member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality,. Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The development and provision of quality affordable housing for low-income families and seniors within master planned communities supports the Economic Vitality goals as it promotes the development quality neighborhoods that provide a full complement of uses and services in a balanced fashion. With only 16 percent of the housing within the areas east of Interstate-805 available as multifamily housing, the Villa Serena Apartment Project will preserve 132 rental units within the Sunbow community of Chula Vista and will preserve the availability of housing opportunities for all economic segments of the community for an additional 55 years. With 57 percent of Chula Vista households earning less than the U.S. Department of Housing and Urban Development's area median income, the development of affordable housing addresses the City's Connected Community goals as it provides housing to meet residents' needs and priorities. Page 17 CURRENT-YEAR FISCAL IMPACT Bond financing is a self-supporting program with the borrower responsible for the payment of all costs of issuance and other costs of the bonds. The Housing Authority will receive compensation for its services in issuing bonds by charging an origination fee equal to 20 basis points (0.20%) of the total original principal amount of the bonds to be issued,with a minimum fee of$15,000. The issuance fee estimated to be paid to the Housing Authority by the owner will be$42,000 ($21 million x.0020). ONGOING FISCAL IMPACT The Multifamily Housing Revenue Bond program is self-supporting. Staff costs associated with monitoring compliance of the regulatory restrictions and administration of the outstanding bonds will be reimbursed from an annual administrative fee of$17,000 paid to the Housing Authority by the owner. ATTACHMENTS 1. Locator.Map 2. Disclosure Form Staff Contact:Jose Dorado,Senior ManagementAnalyst Chula Vista Housing Page 8 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE, SALE AND DELIVERY OF MULTIFAMILY HOUSING . REVENUE BONDS OF THE CHULA VISTA HOUSING AUTHORITY FOR VILLA SERENA AFFORDABLE APARTMENTS WHEREAS, the Chula Vista Housing Authority (the "Authority") intends to issue not to exceed $21,000,000 aggregate principal amount of multifamily housing revenue bonds (the "Bonds") to finance the acquisition and rehabilitation of an existing 132-unit multifamily rental housing project known as Villa Serena Senior Apartments located at 1231 Medical Center Drive (the "Project") in the City of Chula Vista, California (the "City'); and WHEREAS, the Project will be owned and/or operated by Villa Serena CIC, LP., or another limited partnership affiliated with Chelsea Investment Corporation (the "Owner"); and WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), the Bonds are required to be approved, following a public hearing, by an elected representative of the governmental unit having jurisdiction over the area in which the Project is located; and WHEREAS, the Project is located wholly within the geographic jurisdiction of the City; and WHEREAS, the City Council (the "City Council") is the elected legislative body of the City; and WHEREAS, the City has caused a notice to appear in the. Star News, which is a newspaper of general circulation in the City, on June 29, 2018 to the effect that a public hearing would be held by the City Council on July 17, 2018, regarding the issuance of the Bonds by the Authority; and WHEREAS, on July 17, 2018, the City Council held said public hearing, at which time an opportunity was provided to present arguments both for and against the issuance of the Bonds. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula Vista, as follows: Section 1. The City Council does hereby find and declare that the above recitals are true and correct. Section 2. Pursuant to Section 147(f) of the Code, the City Council hereby approves the issuance of the Bonds by the Authority in one or more series, in an aggregate principal amount not to exceed $21,000,000 and with a final maturity not later than 55 years from the date of issuance to finance the acquisition, rehabilitation and equipping of the Project. It is the purpose and intent of the City Council that this Resolution constitutes approval of the issuance of Resolution No. Page 2 the Bonds by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f). Section 3. This Resolution shall take effect from and after its adoption. Presented by Approved as to form by Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services City Attorney RESOLUTION NO. RESOLUTION OF THE CHULA VISTA HOUSING AUTHORITY REGARDING ITS INTENTION TO ISSUE TAX- EXEMPT OBLIGATIONS FOR A PROPOSED ACQUISITION AND REHABILITATION OF EXISTING AFFORDABLE UNITS AT VILLA SERENA SENIOR APARTMENTS WHEREAS, the Chula Vista Housing Authority (the "Issuer") desires to assist Villa Serena CIC, L.P., a California limited partnership, or another limited partnership affiliated with Chelsea Investment Corporation (the "Applicant") in financing the costs of acquiring and rehabilitating a 132-unit multifamily rental housing project known as Villa Serena Senior Apartments, as described in Exhibit A attached hereto and incorporated herein (the "Project"); and WHEREAS, the Issuer intends to assist in the financing of the acquisition and rehabilitation of the Project or portions of the Project with the proceeds of the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations"), which Obligations are expected to be issued pursuant to Chapter 1 of Part 2 of Division 24 the Health and Safety Code of the State of California; provided, however, that this Resolution shall not authorize the issuance of the Obligations and provided further that neither the faith and credit nor the taxing power of the Issuer shall be pledged to repay such Obligations if, and when, authorized; and WHEREAS, prior to the issuance of the Obligations the Applicant expects to incur certain expenditures with respect to the Project from its own available monies which expenditures it desires to have reimbursed from a portion of the proceeds of the sale of the Obligations if, and when, issued; and WHEREAS, Section 146 of the Internal Revenue Code of 1986, as amended (the "Code") limits the amount of multifamily housing revenue bonds that may be issued in any calendar year by entities within a state and authorizes the governor or the legislature of a state to provide the method of allocation within the state; and WHEREAS, Chapter 11.8 of Division 1 of Title 2 of the Government Code of the State of California (the "Government Code") governs the allocation of the state ceiling among governmental units in the State of California having the authority to issue multifamily housing revenue bonds; and WHEREAS, Section 8869.85 of the Government Code requires a local agency to file an application with the California Debt Limit Allocation Committee ("CDLAC") prior to the issuance of multifamily housing revenue bonds; and WHEREAS, the Issuer desires to apply to CDLAC for an allocation for the Project. NOW, THEREFORE, THE BOARD OF COMMISSIONERS OF THE CHULA VISTA HOUSING AUTHORITY DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: Resolution No. Page 2 SECTION 1. .The Issuer has received an application for the financing of the Project on behalf of the Applicant (the "Application"). The Applicant will incur costs with respect to the Project prior to the issuance of the Obligations. The Issuer hereby states its intention and reasonably expects to reimburse to the Applicant for such costs with proceeds of the Obligations; provided, however, that nothing herein obligates the Issuer to issue the Obligations or provides the Applicant with any legal right to compel the issuance of the Obligations, which decision remains in the final discretion of the Issuer. Exhibit A describes the general character, type, purpose, and function of the Project. SECTION 2. The reasonably expected maximum principal amount of the Obligations is $21,000,000. This Resolution is being adopted no later than sixty (60) days after the date (the "Expenditure Date or Dates") that the Applicant will expend moneys for the portion of Project costs to be reimbursed from proceeds of the Bonds. The expected date of issue of the Bonds is within eighteen (18) months of the later of the Expenditure Date or Dates and the first date the Project are placed in service and, in no event, later than three years after the Expenditure Date or Dates. SECTION 3. Proceeds of the Bonds to be used to reimburse for Project costs are not expected to be used directly or indirectly to pay debt service with respect to any obligation or to be held as a reasonably required reserve or replacement fund with respect to an obligation of the Issuer or any entity related in any manner to the Issuer, or to reimburse any expenditure that was originally paid with the proceeds of any obligation, or to replace funds that are or will be used in such manner. SECTION 4. This Resolution is ' consistent with the budgetary and financial circumstances of the Issuer, as of the date hereof. No monies from sources other than the Obligations are, or are reasonably expected to be reserved, allocated on a long-term basis, or otherwise set aside by the Issuer (or any related party) pursuant to their budget or financial policies with respect to the portion of the Project costs to be financed with the Obligations. This Board of Commissioners is not aware of any previous adoption of official intents by the Issuer that have been made as a matter of course for the purpose of reimbursing expenditures relating to the Project and for which tax-exempt obligations have not been issued. SECTION 5. This Resolution is adopted as official action of the Issuer in order to comply with Treasury Regulation § 1.103-8(a)(5) and Treasury Regulation § 1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of expenditures incurred prior to the date of issue of the Obligations, is part of the Issuer's official proceedings, and will be available for inspection by the general public at the main administrative office of the Issuer. SECTION 6. The officers and employees of the Authority are hereby authorized and directed to apply to CDLAC for a portion of the private activity bond allocation set aside for the calendar year 2018 for the Project in an aggregate amount not to exceed $21,000,000, to collect Resolution No. Page 3 from the Applicant and hold pursuant to CDLAC requirements the required CDLAC deposit for the requested allocation, and to certify to CDLAC that such amount has been placed on deposit in an account in a financial institution. Because the amount of private activity bond allocation is limited, such officers are also authorized to resubmit the application to CDLAC one or more times during the calendar year 2018 in the event the application is denied by CDLAC. SECTION 7. The officers and employees of the Issuer are hereby authorized and directed,jointly and severally, to take any actions and execute and deliver any and all documents which any of them deem necessary or advisable, with the advice of City Attorney, in order to effectuate the purposes of this Resolution, and such actions previously taken by such officers and employees are hereby ratified and confirmed; provided that the terms and conditions under which the Bonds are to be issued and sold must be approved by this Board in the manner provided by law prior to the sale of the Bonds. SECTION 8. All the recitals in this Resolution are true and correct. SECTION 9. This Resolution shall take effect immediately upon its adoption. Presented by Approved as to form by Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services Legal Counsel EXHIBIT A DESCRIPTION OF PROJECT A multifamily rental housing projects totaling 132 units known as "Villa Serena Senior Apartments " apartments located at 1231 Medical Center Drive in the City of Chula Vista, California. x I L _.- . tel•! R `, - W _ 1 _ Ar - .F+ o - .A tom-✓ i F .v 3 w`o •. .o-. �j L U PFJ.2 Ul \ : ` y G2Ea, IA d;cal Center Or El -- JL. J .t�m `�i4`�:7. .0 M19eriicalCerre�Uc. r �. _D'-wi-via Cmc fII J e ate` 4*1 i J z GRl=- cc 521 a� .o A.� rn y a— c W fs" il r •� r s f � c •V � Zs'3 � 4 { �• .t �Ppi � ¢ i r x r Ve �� ��ffis�^iii� �1• ��+. Al Flo A 4 S ^ E-7t x f ; f a � �r 1_ f A9 ;111 4ti.. ars D f� f y7 Development Services Department Housing Division Development Processing ffOFA AFFORDABLE HOUSING APPLICATION I Part V Disclosure Statement Pursuant to City Council Policy 101-01, prior to any action on a matter that requires discretionary action by the City Council, Planning Commission or other official legislative body of the City, a statement of disclosure of certain ownerships, financial interests, payments, and campaign contributions must be filed. The following information must be disclosed: 1. List the names of all persons* having a financial interest in the project that is the subject of the application, project or contract (e.g., owner, applicant, contractor, subcontractor, material supplier). Jim Schmid AGP Robert Laing MGP Charles Schmid Contractor Click here to enter text. Click here to enter text. 2. If any person* identified in section 1. is a corporation or partnership, list the.names of all individuals with an investment of$2000 or more in the entity. j Jim Schmid CEO of Chelsea Investment Corporation Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. t Click here to enter text. Click here to enter text. 3. If any person* identified in section 1. is a non-profit organization or trust, list the names of any person who is the director of the non-profit organization or the names of the trustee, beneficiary and trustor of the trust. Executive Director of Pacific Southwest Robert Laing Community Development Corporation Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. 4. Please identify every person,* including any agents, employees, consultants, or independent contractors,whom you have authorized to represent you before the City in this matter. Cheri Hoffman President of Chelsea Investment Corporation Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. t 276 Fourth Avenue I Chula Vista I California 91910 1 www.chulavistaca.gov i (619) 691-5047 Development Services Department Housing Division I Development Processing CHULA ?F AFFORDABLE HOUSING APPLICATION I Part V i Disclosure Statement — Page 26 5. Has any person* identified in 1., 2., 3., or 4., above, or otherwise associated with this contract, project or application, had any financial dealings with an official** of the City of Chula Vista as it relates to this contract, project or application within the past 12 months? ❑ Yes ® No If yes, briefly describe the nature of the financial interest the official** may have in this contract. i 6. Has any person* anyone identified in 1., 2.,3., or 4.,above,or otherwise associated with this contract, project or application, made a campaign contribution of more than $250 within the past twelve (12)months to an official of the City of Chula Vista? ® Yes ❑ No If Yes, briefly describe the nature of the financial interest the official** may have in this contract. Jim Schmid made a personal donation to Steve Padilla in September 2017 for$310 Ribbons&Shovels$500 2.28.2018 Fourth Fest$500 2.28.2018 Charles Schmid sent Friends of Steve Padilla $310 10/13/2017 7. Has any person* identified in 1., 2., 3., or 4.,above,or otherwise associated with this contract, project or application, provided more than$440(or an item of equivalent value)to an official** of the City of Chula Vista in the past twelve(12) months?(This includes any payment that confers a personal benefit on the recipient, a rebate or discount in the price of anything of value, money to retire a legal debt,gift,loan,etc.) ❑ Yes ® No If Yes,which official** and what was the nature of item provided? Click here to enter test. 8. Has any person* identified in 1., 2.,3.,or 4., above,or otherwise associated with this contract, project or application, been a source of income of$500 or more to an official**of the City of Chula Vista in the past twelve(12) months? ❑ Yes ® No If yes,which official** and the nature of the item provided? Click here to enter text. r 276 Fourth Avenue I Chula Vista I California 91910 1 www.chulavistaca.gov ( (619) 691-5047 Development Services Department Housing Division Development Processing CHUIIAVISTA .AFFORDABLE HOUSING APPLICATION Part V Disclosure Statement — Page 27' J 6/11/2018 J Date Signature of Contrac /Applicant Cheri Hoffman Print or type name of Contractor/Applicant * Person is identified as: any individual, firm,co-partnership,joint venture, association, social club, I fraternal organization,cor oration,estate,trust receiver,syndicate, any other county,'city, municipality, district, or other political subdivision, or any other group or combination acting as a unit. ** Official includes, but is not limited to: Mayor,Council member, Planning Commissioner, Member of a board, commission, or committee of the City,and City employees or staff members. ***This Disclosure Statement must be completed at the time the project application, or contract, is submitted to City staff for processing, and updated within one week prior to consideration by the legislative body. i 276 Fourth Avenue I Chula Vista I California 91910 viww.chulavista ca.gov (619) 691-5047 CITY COUNCIL AGENDA STATEMENT --- CITY OF CHU[AVISTA July 17,2018 File ID: 18-0274 TITLE ORDINANCE OF THE CITY OF CHULA VISTA APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND NORTH C.V.WATERFRONT L.P.FOR THE DEVELOPMENT OF APPROXIMATELY 33 ACRES OF LAND LOCATED IN THE HARBOR DISTRICT OF THE CHULA VISTA BAYFRONT MASTER PLAN AREA(FIRST READING) RECOMMENDED ACTION Council place the ordinance on first reading. SUMMARY North C.V.Waterfront L.P.("Applicant"or"Developer") has requested that the City enter into a Development Agreement for the development of approximately 33 acres of land located in the Harbor District of the Chula Vista Bayfront Master Plan Area("Property"). The Property is currently undeveloped,but has been approved by the City for the development of up to 1,500 residential units with 15,000 square feet of ground floor retail, a 250-room hotel,and 420,000 square feet of commercial, office,and retail uses ("Project"). ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity was covered in previously certified Environmental Impact Report UPD#83356-EIR-658/SCH#2005081077. Thus,no additional environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION On July 11, 2018, the Planning Commission took action and voted 4-0 to approve Resolution PCM18-01 recommending that the City Council approve the proposed Development Agreement. DISCUSSION 1. Location, Existing Site Characteristics,and Ownership The Property is located in the Harbor District of the Chula Vista Bayfront Master Plan area of the City. The proposed Development Agreement is limited to the approximately 33 acres owned by North C.V.Waterfront L.P. (see Attachment 1,Locator Map). Page 11 2. Project Description The Project has been approved by the City for the development of up to 1,500 residential units with 15,000 square feet of ground floor retail,a 250-room hotel,and 420,000 square feet of commercial, office,and retail uses. 3. Proposed Development Agreement State and City Requirements for Development Agreements California Government Code section 65864 et seq.authorizes cities to enter into a development agreement with any person having a legal or equitable interest in real property for the development of the property. A development agreement is a contract negotiated between the project proponent and the public agency that specifies certain mutual benefits negotiated for a particular project and vests, subject to certain conditions in the agreement, the rights of the project applicant to develop the property under current land use regulations for a specified term. Through City Resolution No. 11933 (adopted in 1985),the City Council has determined that development of large projects within the City create unique and complex development considerations and that, in addition to the minimum requirements for development agreements contained in the Government Code, additional procedures and requirements for the consideration of development agreements shall be contained within each individual agreement. The Development Agreement presented here includes the requirements for development agreements contained in the Government Code, as well as additional procedures and requirements designed to address the unique and complex development considerations presented by the Project. The following discussion summarizes the major benefits of the proposed Development Agreement (Attachment 2) to both the City and the Applicant,and describes the fundamental terms of the agreement. Public Benefits Beyond the benefits of developing this catalyst Project that will anchor and encourage future investment in the Chula Vista Bayfront Master Plan area,the Development Agreement commits the Developer to providing the following public benefits: • Developer agrees to commence construction of improvements (public or private) for the Project prior to December 31, 2022,even if the nearby Bayfront Resort Hotel and Convention Center project has not commenced construction prior to that date. • Developer agrees that the quality of building materials and landscaping for the Project will exceed the building materials and landscaping included in the Project's approvals. Developer also commits to use its best efforts to obtain a luxury brand name for the residential component of the Project. Page 2 • Developer agrees to pay the City the sum of one million dollars ($1,000,000) towards the purchase of a new fire engine. This payment will be made prior to the issuance of the certificate of occupancy for the first phase of the residential component of the Project. • Developer agrees to pay the City the sum of five hundred thousand dollars ($500,000) towards the purchase of a new fire ladder truck. This payment will be made prior to the issuance of a certificate of occupancy for the third phase of the residential component of the Project. • The Developer will construct significant public infrastructure at the beginning of the 20-year build out of the project,representing a substantial financial commitment and benefit to the City. In addition to the above commitments,the Developer has already provided the following benefits: • Developer agreed to voluntarily postpone processing entitlements for the original 97 acres of land that it owned in order to allow the City and the San Diego Unified Port District ("Port District") to engage in a comprehensive planning process for the entire Chula Vista Bayfront. • Developer agreed to a land swap of 97 acres of land in exchange for the Property in order to preserve sensitive environmental habitat and respond to the concerns and planning objectives of the City,the Port District, the community, and numerous environmental groups (the "Land Exchange Agreement"). In addition to an investment in community outreach, Developer has contributed $3 million to the Port District as part of the Land Exchange Agreement. • Developer agreed to contribute funds to support specific public benefit projects and activities, including: natural resources; affordable housing; sustainability and livability; and community impacts and culture. Funds to be contributed include: 0 0.5% of all gross residential sales will be contributed to the Port District; 0 0.5% of all residential resales within the first 7 years of the initial sale of a unit will be contributed to the Community Benefits Foundation,an endowment established with the San Diego Foundation for this purpose;and o $2,000 for each hotel room developed will also be contributed to the Community Benefits Foundation. • Developer worked extensively with the members of the community, environmental organizations, and representatives of labor unions to obtain support for the land swap and the Project. • Developer provided funding in the amount of$1.4 million to acquire approximately two (2) acres of land on which a fire station will be located to provide fire and rescue services for the entire Chula Vista Bayfront. At the time the land became available for purchase, the City did not have funds available to acquire the land. Once funds were available, Developer sold the land to the City for the amount it paid for the land, foregoing any profit on the purchase and sale of the land. Page 13 Benefits to the Developer • Predictability in the development approval process by vesting the permitted uses,density,intensity of use, and timing and phasing of development consistent with the land use regulations in effect on the approval date,including the General Plan,Local Coastal Permit,and MSCP Subarea Plan,for up to twenty (20)years. • The retention of the Property's designation as a"Primarily Underdeveloped Area"for purposes of the City's Balanced Communities Policy ("CBC Policy') and City's agreement to grant the Project a variance from the CBC Policy. This variance will allow the Transient Occupancy Tax (TOT) revenue generated by the short-term rental of the Project's residential units to satisfy the CBC requirements, so long as three million dollars ($3,000,000) is received by the City by the end of Year 10 of the Development Agreement. If insufficient funds are generated by the end of Year 10, Developer will pay the difference within ninety (90) calendar days. Upon receipt,the City will commit the funds to further the goals of the CBC Policy. There will be no restriction on TOT revenues generated after Year 10 and there will be no restriction on use of TOT revenues generated by the Project's planned 250- room hotel. • The available balance of credits against the Developer's Bayfront Development Impact Fee (BFDIF) or Traffic Signal Fee obligation (as established through the installation of eligible facilities) will be annually adjusted each October 15t,at the same rate that the subject fee program is adjusted. • Developer will receive notice of any planned update to the 2014 BFDIF nexus study upon City initiation. City will also provide at least sixty(60)days advance notice of any public hearing at which the City Council will consider amending the BFDIF program. • City agrees to add construction of a monument for the J Street entrance (the "J Street Gateway Project") to the BFDIF program in the next update. • Developer has the option to request formation of a Community Facilities District(CFD)to finance the acquisition and construction of eligible public facilities. The City agrees to use reasonable efforts to initiate and diligently pursue proceedings to establish the CFD. • City agrees to present the undergrounding of the remaining overhead utility lines within the Otay District and the Harbor District as a priority in any future requests for Rule 20A funds. Other Terms of the Agreement The Development Agreement contains the following additional major points: • The term of the Development Agreement,all subdivision maps,parcel maps,and other development approvals will be twenty (20)years. Page�4 • For the Term of the Development Agreement, the Developer shall have the vested right to develop the property pursuant to the Tentative Map, Development Agreement, and existing land use laws, regulations and policies. • The Development Agreement may be amended from time to time by the mutual written consent of the City and Developer and the Owner of any affected portion of the property. • The Development Agreement shall run with the land and benefit and bind future owners should the Developer sell or transfer ownership. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently,this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov't Code§87100,et seq.). Staff is not independently aware, and has not been informed by any City Council member,of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals:Operational Excellence,Economic Vitality,Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Approval of the proposed Development Agreement provides certainty in the development of revenue generating land uses such as the Project's planned 250-room hotel and 420,000 square feet of commercial, office, and retail uses, supporting the Economic Vitality goal. In addition,the proposed Agreement supports the Strong and Secure Neighborhoods goal by securing the Developer's commitment to contribute$1.5 million towards fire apparatus. CURRENT-YEAR FISCAL IMPACT All costs associated with processing the proposed Development Agreement are borne by the Developer, resulting in no net impact to the General Fund or the Development Services Fund. ONGOING FISCAL IMPACT Approval of the Development Agreement supports development of the Project consistent with current entitlements, including up to 1,500 residential units, 15,000 square feet of ground floor retail, a 250-room hotel,and 420,000 square feet of commercial,office,and retail uses. In addition,the proposed Development Agreement secures Developer's commitment to contribute$1,000,000 toward the purchase of a fire engine and an additional$500,000 toward the purchase of a fire ladder truck. In addition,the Development Agreement clearly recognizes that the short-term rental of the project's 1,500 residential units will be subject to the City's Transient Occupancy Tax (TOT). For the first 10 years, up to $3,000,000 of the TOT generated by the short-term rental of the residential units will be dedicated to meeting the goals of the City's Balanced Communities Policy. If less than$3,000,000 is generated in the first 10 years, the Developer will remit the shortfall to the City. All subsequent TOT generated by the short-term rental of Page 15 the residential units will flow to the City as discretionary revenues,as will all TOT revenues generated by the planned 250-room hotel. ATTACHMENTS 1. Project Locator Map 2. Proposed Development Agreement Staff Contact: Tiffany Allen,Assistant Director of Development Services Page 6 ATTACHMENT 1 PROJECT LOCATION 3 D -n M m San Diego m Bay D CAO MARINA PW J ST MARINA PW N W E S RECORDED AT REQUEST OF AND WHEN RECORDED RETURN TO: City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 Attn: City Clerk Fee Exempt—Gov't Code §6103 (Space above for Recorder's Use) DEVELOPMENT AGREEMENT Among THE CITY OF CHULA VISTA, a California charter city and municipal corporation and NORTH C.V.WATERFRONT L.P., a California limited partnership TABLE OF CONTENTS Page RECITALS .................................................................................................................................... 1 AGREEMENT............................................................................................................................... 3 1. DEFINITIONS................................................................................................................... 3 1.1 Agreement.............................................................................................................. 3 1.2 Approval Date........................................................................................................ 3 1.3 CBC Policy............................................................................................................4 1.4 CFD........................................................................................................................4 .1.5 City.........................................................................................................................4 1.6 City Charter............................................................................................................4 1.7 City Council...........................................................................................................4 1.8 City Manager .........................................................................................................4 1.9 City Municipal Code..............................................................................................4 1.10 Day.........................................................................................................................4 1.11 Developer...............................................................................................................4 1.12 Developer's Vested Right......................................................................................4 1.13 DIFs.........................................................................................................................4 1.14 Effective Date ........................................................................................................4 1.15 RESERVED...........................................................................................................4 1.16 Enabling Ordinance ...............................................................................................4 1.17 Existing Land Use Regulations..............................................................................4 1.18 RESERVED...........................................................................................................4 1.19 General Plan........................................................................................................... 5 1.20 RESERVED........................................................................................................... 5 1.21 J Street Sewer Improvements................................................................................. 5 1.22 J Street Sweep Improvements................................................................................ 5 1.23 J Street Gateway Monument.................................................................................. 5 1.24 Land Use Regulations............................................................................................ 5 1.25 LCP........................................................................................................................ 5 1.26 Mortgagee.............................................................................................................. 5 -i- TABLE OF CONTENTS (continued) Page 1.27 Mello-Roos Act...................................................................................................... 5 1.28 Parties..................................................................................................................... 5 1.29 Phase I Project Approvals...................................................................................... 5 1.30 Port District............................................................................................................6 1.31 Project.................................................................................................................... 6 1.32 Project Approvals...................................................................................................6 1.33 Property..................................................................................................................6 1.34 Reservation of Authority" or"Reserved Authority............................................... 6 1.35 Section.........................................................................:.......................................... 6 1.36 Subarea Plan.............................................:............................................................. 6 1.37 Subsequent Land Use Regulations......................................................................... 6 1.38 Subsequent Project Approvals............................................................................... 7 1.39 Term....................................................................................................................... 7 1.40 Street Improvements.............................................................................................. 7 2. INTEREST OF DEVELOPER.......................................................................................... 7 3. PUBLIC HEARINGS........................................................................................................ 7 4. DEVELOPMENT OF THE PROJECT ON THE PROPERTY........................................ 7 4.1 Developer's Vested Right...................................................................................... 7 4.2 Governing Land Use Regulations.......................................................................... 7 4.3 Permitted Uses....................................................................................................... 8 4.4 Density and Intensity; Requirement for Reservation and Dedication of Land....................................................................................................................... 8 4.5 Reservation of Authority........................................................................................ 8 4.6 Vested Rights Upon Termination........................................................................ 10 4.7 Compliance with CEQA...................................................................................... 10 4.8 Timing of Development....................................................................................... 10 4.9 Conditions, Covenants and Restrictions.............................................................. 11 4.10 Balanced Communities........................................................................................ 11 4.11 J Street Sewer Improvements............................................................................... 11 -ii-_ TABLE OF CONTENTS (continued) Page 4.12 J Street Pump Station and Force Mains............................................................... 12 4.13 Reclaimed Water.................................................................................................. 12 4.14 Transportation and Traffic Signal Portion of Development Impact Fees............ 12 4.15 J Street Gateway Monument................................................................................ 13 4.16 Recreational Facilities DIF Credit....................................................................... 13 4.17 Park Acquisition and Development DIF Credit................................................... 13 4.18 RESERVED......................................................................................................... 14 4.19 Undergrounding of Overhead Utilities Lines .............................:........................ 14 4.20 Future Use of Project Revenues........................................................................... 14 4.21 Assistance from Other Governments...............................:................................... 14 5. DEVELOPER'S OBLIGATIONS AND PROVISION OF PUBLIC BENEFITS.......... 14 5.1 Public Benefits..................................................................................................... 14 6. TERM AND TERMINATION........................................................................................ 15 6.1 Term of Agreement.............................................................................................. 15 6.2 Termination.......................................................................................................... 16 6.3 Effect of Termination........................................................................................... 16 6.4 Release of Obligations With Respect to Individual Lots Upon Certification of Occupancy 16 6.5 Term of Map(s) and Other Project Approvals..................................................... 17 7. ANNUAL REVIEW........................................................................................................ 17 7.1 Timing of Annual Review ................................................................................... 17 7.2 Standards for Annual Review.............................................................................. 17 7.3 Procedures for Annual Review............................................................................ 18 7.4 Certificate of Compliance.................................................................................... 18 7.5 Failure of Periodic Review .................................................................................. 18 8. THIRD PARTY LITIGATION....................................................................................... 18 8.1 General Plan Litigation........................................................................................ 18 8.2 Third Party Litigation Concerning Project or Agreement ................................... 18 8.3 Indemnity............................................................................................................. 18 -iii- TABLE OF CONTENTS (continued) Page 8.4 Environmental Contamination............................................................................. 19 8.5 City to Approve Counsel; Conduct of Litigation................................................. 19 8.6 Survival................................................................................................................ 19 9. DEFAULTS AND REMEDIES ...................................................................................... 19 9.1 Default by Developer........................................................................................... 19 9.2 Default by City.....................................................................................................20 9.3 Notice and Termination.......................................................................................20 9.4 Default Remedies.................................................................................................20 9.5 Developer's Remedy.............................................................................................20 9.6 City's Remedy .....................................................................................................21 9.7 Waiver; Remedies Cumulative............................................................................ 21 9.8 Alternative Dispute Resolution............................................................................ 21 10. ENCUMBRANCES, ASSIGNMENTS, AND RELEASES ........................................... 21 10.1 Discretion to Encumber....................................................................................... 21 10.2 Mortgagee Protection...........................................................................................21 10.3 Estoppel Certificate..............................................................................................22 10.4 Transfer or Assignment........................................................................................ 23 10.5 Effect of Assignment........................................................................................... 23 10.6 City's Consent......................................................................................................24 11. MISCELLANEOUS PROVISIONS................................................................................24 11.1 Rules of Construction.......................................................................................... 24 11.2 Binding Effect of Agreement............................................................................... 24 11.3 Entire Agreement.................................................................................................24 11.4 Recorded Statement Upon Termination...............................................................24 11.5 Amendment or Cancellation of Agreement......................................................... 24 11.6 Minor Changes/Operating Memorandum............................................................25 11.7 Project as a Private Undertaking.......................................................................... 25 11.8 Incorporation of Recitals...................................................................................... 25 11.9 Captions............................................................................................................... 25 -iv- TABLE OF CONTENTS (continued) Page 11.10 Consent ................................................................................................................25 11.11 Covenant of Cooperation.....................................................................................25 11.12 Execution and Recording.....................................................................................26 11.13 Relationship of City and Developer.....................................................................26 11.14 Notices.................................................................................................................26 11.15 Delay for Events Beyond the Parties' Control.....................................................27 11.16 Interpretation and Governing Law.........................................................................27 11.17 Time of Essence.....................................................................................................27 11.18 Successors and Assigns.......................................................................................... 27 11.19 Future Litigation Expenses....................................................................................28 12. EXHIBITS .......................................................................................................................28 -v- THIS DEVELOPMENT AGREEMENT("Agreement") is entered into by and among THE CITY OF CHULA VISTA, a California charter city and municipal corporation ("City"), and NORTH C.V. WATERFRONT L.P., a California limited. partnership ("Developer") as of the Effective Date (as defined in the Agreement). City or Developer are sometimes individually referred to in this Agreement as "Party" and collectively as the "Parties". The Parties enter into this Agreement with reference to the following recited facts: RECITALS A. The State of California has enacted the Development Agreement Statute, found at Sections 65864 et seq., of the California Government Code, to strengthen the public planning process, encourage private participation in comprehensive planning and to reduce the economic risk of development; B. City is authorized by the Development Agreement Statute and by its City Charter to enter into development agreements with persons and entities having legal or equitable interests in real property for the purpose of establishing predictability for both City and property Developer in the development process and in the provision of public infrastructure and public benefits; C. Developer has a legal or equitable interest in that certain real property consisting of approximately 33 acres of land located in the City, County of San Diego, State of California,more particularly described and depicted in Exhibit"A"to this Agreement("Property"); D. The Property is located in the Harbor District of the Chula Vista Bayfront Master Plan("Harbor District") in the City. The Property is currently undeveloped but has been approved by City for the development of up to 1,500 residential units with 15,000 square feet of ground floor retail,a 250-room hotel, and 420,000 square feet of commercial, office, and retail uses,all as more fully described in the City of Chula Vista General Plan ("General Plan") and Local Coastal Program (which includes the Land Use Plan and Bayfront Specific Plan) ("LCP"), and the Chula Vista Multiple Species Conservation Plan Subarea Plan ("Subarea Plan") (collectively, "Project Approvals"); E. Developer desires to.develop the Property into a unified development consisting of the uses described in the Project Approvals ("Project"). A general description and depiction of key elements of the Project is contained in Exhibit"137 to this Agreement; F. Developer has requested that City enter into a development agreement for the development of the Project on the Property, and City desires to enter into this Agreement pursuant to the provisions of the California Government Code, the City Charter, the General Plan, the City Municipal Code, and applicable City policies; G. This Agreement assures that development of the Project on the Property will occur in accordance with the Project Approvals; H. This Agreement constitutes a current exercise of City's police powers to provide -1- predictability to Developer in the development approval process by vesting the permitted uses, density, intensity of use, and timing and phasing of the Project on the Property in exchange for Developer's commitment to provide significant public benefits to City. Developer would not commit to provide such significant public benefits to City if not for the promise of City that the Property can be developed pursuant to the Existing Land Use Regulations and Subsequent Land Use Regulations; I. This Agreement is also intended to ensure that Developer has provided funding sufficient to provide the adequate and appropriate infrastructure and public facilities required by the development of the Project on the Property, and that this infrastructure and public facilities will be available no later than when required to serve the Project's demand; J. The commitments of Developer made in this Agreement allow City to realize significant economic, public facilities, and other public benefits. These public benefits will advance the interests and meet the needs of City's residents and visitors to a significantly greater extent than would development of the Project on the Property absent this Agreement. In addition to the specific public benefits to be provided by the Project and described in Section 5.1 below, Developer also accomplished the following: (1) Developer agreed with City to voluntarily postpone processing entitlements for the original 97 acres of land that it owned in order to allow City and Port District to engage in a comprehensive planning process for the entire Chula Vista Bayfront, which planning process resulted in Developer's agreement to the land swap referenced below; (2) Developer agreed to a land swap of 97 acres of land in exchange for the Property in order to preserve sensitive environmental habitat and respond to the concerns and planning objectives of City,the San Diego Unified Port District ("Port District"), the community, and numerous environmental groups (the"Land Exchange Agreement"). The process to accomplish the land swap involved an extensive upfront investment by Developer in the planning process, environmental review process, and outreach to the community and other interested third parties. In addition to an investment in community outreach,Developer has contributed$3 million to the Port of San Diego as part of the Land Exchange Agreement; (3) Developer worked extensively with the members of the community, environmental organizations, and representatives of labor unions to obtain support for the land swap and the Project, thus ensuring the ability to achieve the objectives of the Project and resulting benefits to City without additional lengthy and costly delays; (4) Developer provided funding in the amount of $1.4 million to acquire approximately two (2) acres of land on which will be located a fire station to provide fire and rescue services for the entire Chula Vista Bayfront. At the time the land became available for purchase, the City did not have funds to acquire the land. When City had adequate funds to purchase the land, Developer sold the land to City for the amount it had paid for the land, thus foregoing any profit on the purchase and sale of the land; -2- (5) The Project is a "catalyst project" that will anchor and encourage future investment in the Chula Vista Bayfront Master Plan area; (6) The Project is a significant development for the City with up to 1,500 residential units with 15,000 square feet of ground floor retail, a 250-room hotel, and 420,000 square feet of commercial,office,and retail uses,which will generate a new stream of property and sales tax for the City; (7) The Project will create a substantial new stream of transient occupancy tax ("TOT") revenue from short-term rentals from the Project's 1,500 residential units; and (8) The Project is expected to provide a significant public benefit by constructing public infrastructure in the Chula Vista Bayfront Master Plan area along with the first phase residential building. This work is expected to earn Bayfront Development Impact Fee credits that the Developer will not be able to fully use for many years because its public infrastructure investments will be made at the beginning of the 20-year term of the Development Agreement. It is highly unusual and extraordinary for a developer to make a significant financial commitment upfront to earn substantial Development Impact Fee credits so far in advance of being able to apply such credits to fees incurred through its project development, and is a demonstration of the significant benefit the Project is expected to provide to the City. K. In addition to customary development impact fees, the Developer commits to providing the City with $1 million dollars towards the purchase of a fire engine, which shall be paid at certificate of occupancy of the first phase residential building. The Developer further commits to provide the City with an additional $500,000 towards the purchase of a fire ladder truck, which shall be paid at the certificate of occupancy of the third phase residential building. L. In return for Developer's commitment to provide the public benefits described in Section 5.1 below,City is willing to exercise its authority to enter into this Agreement and to make a commitment of predictability for the development process for the Project on the Property. AGREEMENT For good and valuable consideration, City and Developer agree as follows: 1. DEFINITIONS. In this Agreement, unless the context otherwise requires, the following terms and phrases shall have the following meanings: 1.1 Agreement. "Agreement" means this Development Agreement between City and the Developer. The term "Agreement" shall include any amendment to the Agreement properly approved and executed pursuant to the terms of this Agreement. 1.2 Approval Date."Approval Date"means the date on which the City Council adopted -3- the Enabling Ordinance amending the General Plan, LCP, and Subarea Plan to allow for the development of the Project on the Property. 1.3 CBC Policy. "CBC Policy" means the City's Guidelines to the Balanced Communities Policy adopted as part of the Housing Element of the General Plan. 1.4 CFD. "CFD" means a Community Facilities District formed pursuant to the provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California. 1.5 City. "City" means the City of Chula Vista, a California charter city and municipal corporation. 1.6 City Charter. "City Charter" means the City of Chula Vista's City Charter. 1.7 City Council. "City Council" means the governing body of City. 1.8 City Manager. "City Manager" means the City Manager of City or his or her designee. 1.9 City Municipal Code. "City Municipal Code" means the Chula Vista Municipal Code. 1.10 Day. "Day" means a calendar day unless specifically stated as a ``business day." 1.11 Developer. "Developer' means North*C.V. Waterfront L.P., a California limited partnership, and Developer's successors and assigns as set forth in.this Agreement. 1.12 Developer's Vested Right. "Developer's Vested Right" shall have the meaning set forth in Section 4.1. 1.13 DIFs. "DIFs" means City's Development Impact and In Lieu Fees. 1.14 Effective Date. "Effective Date" mean the date on which the Enabling Ordinance for this Agreement becomes effective and the Parties have each signed this Agreement. 1.15 RESERVED. 1.16 Enabling Ordinance. "Enabling Ordinance" means the ordinance, resolution, or legislative action necessary to approve the Project Approvals or this Agreement. 1.17 Existing Land Use Regulations. "Existing Land Use Regulations- mean all Land Use Regulations in effect on the Approval Date, including the General Plan, LCP, and Subarea Plan. -4- 1.18 RESERVED. 1.19 General Plan. "General Plan" means the General Plan of the City of Chula Vista. I 1.20 RESERVED. 1.21 J Street Sewer Improvements. "J Street Sewer Improvements" means the sewer improvements required for the Project as shown on the attached Exhibit"D." 1.22 J Street Sweep Improvements. "J Street Sweep Improvements" means the improvements potentially required for the Project as shown on the attached Exhibit "E 1.23 J Street Gateway Monument. "J Street Gateway Monument" means the monument Developer has agreed to design, located at the J Street entrance just west of Interstate Highway 5, which shall consist of street improvements, hardscape, and landscape improvements necessary to create a ceremonial entrance to the Chula Vista Bayfront and the Project area. 1.24 Land Use Regulations. "Land Use Regulations" means all ordinances, resolutions, codes, rules, regulations and official policies of City governing the development and use of land, including,without limitation, the permitted use of land,the density or intensity of use, subdivision requirements, timing and phasing of development, the maximum height and size of buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement, construction, and initial occupancy standards and specifications applicable to the Project. "Land Use Regulations" do not include any City ordinance, resolution, code, rule, regulation or official policy governing: 1.24.1 The conduct or taxation of businesses, professions, and occupations applicable to all businesses, professions, and occupations in City; 1.24.2 Taxes and assessments of general application upon all residents of City. 1.24.3 The control and abatement of nuisances. 1.25 LCP. "LCP" means City's Local Coastal Program (which includes the Land Use Plan and Bayfront Specific Plan). 1.26 Mortgagee. "Mortgagee" means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security-device,a lender, and their successors and assigns. 1.27 Mello-Roos Act. "Mello-Roos Act" means the Mello-Roos Community Facilities Act of 1982, as amended,being California Government Code Section 53311 et seq. 1.28 Parties. "Parties" means City on the one hand and Developer on the other hand. A -5- "Party" means either City or the Developer. 1.29 Phase I Project Approvals. "Phase I Project Approvals" means the Development Agreement, tentative and/or final subdivision map, coastal development permit ("CDP"), Phase 1 architectural design schematic, community design guidelines, and Design Review approval as further described in the attached Exhibit'`C": 1.30 Port District. "Port District" means the San Diego Unified Port District. 1.31 Project. `'Project"means the development of the Property as set forth in the Project Approvals and Subsequent Project Approvals, and includes the development of up to 1,500 residential units with 15,000 square feet of ground floor retail,a 250-room hotel, and 420,000 square feet of commercial, office, and retail uses, all as more fully described in the "Project Entitlements" as depicted in Exhibit"B". 1.32 Project Approvals. "Project Approvals" means the entitlements approved by the City to allow for the development of the Project on the Property as further described in the attached Exhibit "L". 1.33 Property."Property"means the real property described and depicted in Exhibit"A", consisting of approximately 33 acres of underdeveloped property in the Harbor District of the Chula Vista Bayfront Master Plan ("CV Master Plan"). 1.34 Reservation of Authority or Reserved Authority. '`Reservation of Authority' or "Reserved Authority" means the rights and authority specifically reserved to City which limits the assurances and rights provided to Developer and Developer's Vested Right under this Agreement. 1.35 Section. "Section"means a numbered section of this Agreement,unless specifically stated to refer to another document or matter. 1.36 Subarea Plan. "Subarea Plan" means the Chula Vista Multiple Species Conservation Plan Subarea Plan. 1.37 Subsequent Land Use Regulations. "Subsequent Land Use Regulations"means the Land Use Regulations adopted after the Approval Date that do not conflict with the Existing Land Use Regulations or this Agreement. Subsequent Land Use Regulations shall be deemed to conflict with the Existing Land Use Regulations or this Agreement if their application to the Project would (a) restrict or modify the permitted types of land uses, the density or intensity of use, the maximum height, size, or square footage of the proposed buildings, the timing and phasing of development, or building and yard setback requirements specified in the Existing Land Use Regulations; (b) increase the amount or change the location of the infrastructure required for the Project; (c) impose additional exactions or requirements other than as provided for in the Existing Land Use Regulations or -6- this Agreement; (d) change design or development standards or the policies or requirements of the Existing Land Use Regulations; (e) imposes a new permit requirement or procedure not included within the Existing Land Use Regulations; (f) increase the cost of development of the Project as those costs existed at the time of the Approval Date; or (g) otherwise preclude Developer's ability to develop according to the Existing Land Use Regulations or this Agreement. 1.38 Subsequent Project Approvals. "Subsequent Project. Approvals" means all approvals, permits, or entitlements approved, granted, or issued after the Approval Date which are required or permitted by the Project Approvals, Existing Land Use Regulations, Subsequent Land Use Regulations, and this Agreement. 1.39 Term. "Term" means the term of this Agreement as set forth in Section 6 of this Agreement. 1.40 Improvements. "Improvements" mean commencement of construction of any portion of the improvements authorized by the Phase I Project Approvals or the improvements described in Sections 4.11, 4.12, and 4.14. 2. INTEREST OF DEVELOPER. Developer represents that it has a legal or equitable interest in the Property and is authorized to enter into this Agreement. 3. PUBLIC HEARINGS. On July 17, 2018, after providing notice as required by law, the City Council held a public hearing on this Agreement and made any legally required findings as set forth in the Enabling Ordinance for this Agreement. 4. DEVELOPMENT OF THE PROJECT ON THE PROPERTY. 4.1 Developer's Vested Right. Developer shall have the vested right to complete the Project on the Property during the Term in accordance with the Existing Land Use Regulations, Subsequent Land Use Regulations,the Subsequent Project Approvals, City's Reservation of Authority,and this Agreement("Developer's Vested Right"). 4.2 Governing Land Use Regulations. Except as otherwise provided in this Agreement, the Land Use Regulations applicable to the development of the Project on the Property shall be those contained in the Existing Land Use Regulations, the Subsequent Land Use Regulations, and the Subsequent Project Approvals. 4.2.1 City shall review the Subsequent Project Approvals pursuant to the process described in the Existing Land Use Regulations only for consistency with the Existing Land Use Regulations, Subsequent Land Use Regulations, and this Agreement. Such Subsequent Project Approvals shall not be unreasonably withheld or delayed. City will exercise reasonable best efforts to expedite review and processing of Phase I Subsequent Project Approvals without charging any expedited -7- review fees or additional costs to Developer. 4.2.2 Developer may in its sole and absolute discretion agree to subject the Project to Subsequent Land Use Regulations that conflict with the Existing Land Use Regulations. 4.2.3 Development on Parcels 2 through 7 shall be subject to the review and approval of the Chula Vista Zoning Administrator through the administrative design review process as set forth in the City of Chula Vista Design Manual and subject to the City's development standards. All development on said parcels shall be consistent with adopted design guidelines and applicable development standards for the Project, subject to public notification requirements, and appealable to the Chula Vista City Council. 4.3 Permitted Uses. Except as otherwise provided within this Agreement,the permitted uses on the Property shall be as provided in the Existing Land Use Regulations, Subsequent Land Use Regulations, and the Subsequent Project Approvals. 4.4 Density and Intensity; Requirement for Reservation and Dedication of Land. Except as otherwise provided in this Agreement, the density and intensity of use for the development of the Project on the Property, and the requirements for reservation and dedication of land, shall be as provided in the Existing Land Use Regulations, Subsequent Land Use Regulations, and the Subsequent Project Approvals. 4.5 Reservation of Authority. The following Land Use Regulations or other requirements shall apply to the Property and the Project unless otherwise specifically provided for in this Agreement: 4.5.1 Processing fees and charges may be imposed by City to cover City's estimated or actual costs of reviewing and processing applications for the Project, providing inspections, conducting annual reviews, providing environmental analysis, or for monitoring compliance with this Agreement or any Project Approvals or Subsequent Project Approvals granted or issued, provided such fees and charges are in force and effect on a general basis on the date of filing such applications with City. This Section shall not be construed to limit the authority of City to charge its then-current, normal and customary application, processing, and permit fees for Project Approvals or Subsequent Project Approvals, building permits and other similar permits, which fees are designed to reimburse City's expenses attributable to such application, processing, and permitting and are in force and effect on a City-wide basis on the date of filing such applications with City,notwithstanding the fact that such fees may have been increased by City subsequent to the Approval Date; -8- 4.5.2 Development Impact and In-Lieu Fees. Developer's DIF obligations shall be determined by the City pursuant to the provisions outlined in the Municipal Code or in the ordinances establishing the fees. These amounts shall be fixed for each building permit, as of the date the impact fees are paid, between permit issuance and the issuance of a certificate of occupancy. DIF shall not increase between building permit issuance and final inspection more than the Construction Cost.Index; 4.5.3 Except as specifically provided for in Section 4.2 of this Agreement, procedural regulations relating to hearing bodies,petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals, and any other matter of procedure; 4.5.4 The following, provided that they are uniformly applied to all development projects within City: 4.5.4.1 Uniform codes governing engineering and construction standards and specifications adopted by City pursuant to state law. Such codes include, without limitation, City's adopted version of the Uniform Administrative Code, California Building Code, California Plumbing Code, California Mechanical Code, California Electrical Code, and California Fire Code; 4.5.4.2 Local amendments to those uniform codes which are adopted by City pursuant to state law, provided they pertain exclusively to the preservation of life and safety; and 4.5.4.3 City's standards and procedures regarding the granting of encroachment permits and the conveyance of rights and interests which provides for the use of or the entry upon public property. 4.5.5 Regulations which may be in conflict with this Agreement, but which are objectively required to protect the public health and safety,provided, however, such regulations shall be of the minimum scope, effect, and duration necessary to address the public health and safety concern; 4.5.6 State or federal laws or regulations which preempt local regulations or mandate local regulations or conditions that conflict with the development of the Project on the Property. This expressly includes mandates imposed through the Clean Water Act or the Porter-Cologne Water Quality Control Act. Upon discovery of such a federal or state law, City or Developer shall provide the other Party with written notice, a copy of the state or federal law or regulation, and a written explanation of the legal or regulatory conflict created.- Within ten (10) days thereafter, City and Developer shall meet and confer in good faith in a -9- reasonable attempt to modify this Agreement, as necessary, to comply with such federal or state law or regulation. In such negotiations, City and Developer agree to preserve the terms of this Agreement and the rights of Developer as derived from this Agreement to the maximum extent possible while still following the applicable state or federal law; 4.5.7 City's public improvement engineering ordinances, policies,_ rules, regulations and standards; 4.5.8 Developer shall be issued building permits for the Project after permit applications are reviewed and approved by City consistent with Section 4.2 of this Agreement; 4.5.9 The exercise of the power of eminent domain; 4.5.10 Due to the unique nature of the Project, City acknowledges that exceptions and deviations to some Land Use Regulations may be required and agrees to reasonably consider requests for exceptions and deviations from the Land Use Regulations necessary for development of the Project or implementation of the Project Approvals. Developer acknowledges that it is reasonable for City to deny a request for exceptions and deviations from the Land Use Regulations when necessary to protect the public health, safety, or welfare. 4.6 Vested Rights Upon Termination. Developer acknowledges that following termination of this Agreement, except as to any Project Approvals or Subsequent Project Approvals that have vested under state law without reliance on this Agreement, City may amend the Project Approvals and Subsequent Project Approvals as they relate to the Project*and the Property. 4.7 Compliance with CEQA. The City Council has found that the environmental impacts of the Project have been addressed in the Final Environmental Impact Report for the Chula- Vista Bayfront Master Plan (State Clearinghouse No. 2005081077). Where the California Environmental Quality Act requires that an additional environmental analysis be performed in connection with a Subsequent Project Approval or other future discretionary approval granted by City for the Project, the Developer shall pay all of City's reasonable costs to perform that additional analysis. If the application of CEQA to a Subsequent Project Approval would (a) require as mitigation a reduction in the density or intensity of use from that allowed by this Agreement,(b)require as mitigation a change in use from those allowed by this Agreement, (c) result in the identification of new significant, unmitigable impacts, and/or (d) identify an environmentally preferred alternative that would reduce density or intensity of use or change a use from that allowed by this Agreement, then Developer may terminate this Agreement. -10- 4.8 Timing of Development. Because the California Supreme Court held in Pardee Construction Co. v. City of Camarillo, 37 Cal. 3d 465 (1984),that the failure of the parties in that case to provide for the timing of development resulted in a later- adopted initiative restricting the timing of development to prevail over the parties' agreement, it is the specific intent of the Parties here to provide for the timing of the Project in this Agreement. To do so, the Parties acknowledge and agree that unless otherwise specifically required by this Agreement, Developer shall have the right, but not the obligation, to complete the Project in such order, at such rate, at such times,and in as many development phases and sub-phases as Developer deems appropriate in its sole subjective business judgment. 4.9 Conditions,Covenants and Restrictions. Developer shall have the ability to reserve and record covenants, conditions, and restrictions("CC&Rs") against the Property. Such CC&Rs may not conflict with this Agreement, the Existing Land Use Regulations, Subsequent Land Use Regulations, or Subsequent Project Approvals. Before recording any CC&Rs, Developer shall provide a copy of the CC&Rs to City for review and approval by the City Attorney, which approval shall not be unreasonably denied. 4.10 Balanced Communities. City has adopted a Balanced Communities Policy ("CBC Policy"),commonly referred to as Inclusionary Housing, to implement the Housing Element of the General Plan. The Property is located in an area that the CBC Policy defines as a "Primarily Underdeveloped Area". The City agrees that the Property will retain that definition for all Subsequent Project Approvals for the Term of this Agreement. In accordance with the CBC Policy, findings made in Recitals J,K,and L substantiate that special circumstances exist that are unique to the Project that justify granting a variance from the CBC Policy. Based on these findings, City agrees to grant the Project a variance from the CBC Policy. TOT revenue generated by the Project's residential units will satisfy the CBC requirements now and for any Subsequent Project Approvals so long as at least $3,000,000.00 in TOT revenue has been received from the residential units by the end of Year 10 of this Agreement. If such amount has not been,received, however, City shall notify Developer in writing and Developer shall have ninety(90)calendar days to pay the difference between $3,000,000.00 and the TOT revenue collected by the City to date. Upon receipt, City will commit these funds to further the Goals of the City's Balanced Communities Policy. There shall be no such use restrictions on the TOT revenues generated by 1) the Project's residential units in excess of the initial $3,000,000.00; 2) the Project's residential units following the end of Year 10 of this Agreement; or 3)the Project's hotel rooms. 4.11 J Street Sewer Improvements. The Project requires certain sewer improvements at J Street as more fully described in the attached Exhibit "D" ("J Street Sewer Improvements"). In the event that any portion of the J Street Sewer Improvements is included in City's Capital Improvements Project,City agrees that Developer shall -11- receive full credit against any Project related sewer connection fee for the cost of designing and constructing that portion of the J Street Sewer Improvements. In the event that the J Street Sewer Improvements provide sewer capacity in excess of that required for the Project and that additional sewer capacity is needed by the City for future development outside of the Project, City agrees to enter into a Reimbursement Agreement with Developer. For any amount that exceeds Developer's proportional share of DIF fees, the Reimbursement Agreement shall provide for cash reimbursement when funds are available as determined by the City Manager, or other mutually acceptable reimbursement mechanism. 4.12 J Street Pump Station and Force Mains. The Project may require certain improvements to the pump station and force mains that currently serve the Port District's Marina properties located in what is referred to as the J Street sweep, as more fully described in the attached Exhibit'`E" ("J Street Sweep Improvements"). In the event that any portion of the J Street Pump Station and Force Mains is included in City's Capital Improvements Project, City agrees that Developer shall receive full credit against any Project related sewer connection fee for the Developer incurred cost of designing and constructing that portion of the J Street Pump Station and Force Mains. In the event that the J Street Sewer Improvements provide sewer capacity in excess of that required for the Project and that additional sewer capacity is needed by the City for future development outside of the Project, City agrees to enter into a Reimbursement Agreement with Developer. For any amount that exceeds Developer's proportional share of DIF fees, the Reimbursement Agreement shall provide a cash reimbursement to Developer when funds are available as determined by the City Manager, or other mutually acceptable reimbursement mechanism. 4.13 Reclaimed Water. City agrees that the Project shall only be required to install water delivery facilities required for the use of reclaimed water in a street segment if such requirement exists at the time Developer files an application for a public improvement permit to construct water delivery facilities in that street segment. The City shall not require Developer to retroactively reconstruct its water delivery facilities to interconnect with a reclaimed water system. 4.14 Transportation and Traffic Signal Portion of Development Impact Fees. Developer will be responsible for payment of traffic signal fees ("Traffic Signal Fees") and Bayfront Transportation DIF ("Bayfront DIF") fees, pursuant to applicable City Council Policies and the Chula Vista Municipal Code. The Project shall have the option to design and construct certain elements of the Harbor District's traffic circulation system, provided that the improvements to be constructed by the Developer are fully funded by the Traffic Signal Fees, the Bayfront DIF, or a combination thereof. Credits against the Project's Traffic Signal Fee and/or Bayfront DIF obligations and/or cash reimbursements shall be made pursuant to City Council Policy 478-01 and Section 3.55.150 of the Chula Vista Municipal -12- Code, as applicable. 4.14.1 .The Parties acknowledge Developer's intent to make major investments in the public transportation infrastructure in the Bayfront area in advance of constructing the majority of the Project, which will provide a public benefit to the City. As Developer completes such public transportation infrastructure, Developer shall submit a request for reimbursement, or a credit against fees, to the City as set forth in City Council Policy 478-01 (Traffic Signal Fees) and Section 3.55.150 of the Chula Vista Municipal Code (Bayfront DIF). For any credit against fees for the Project as approved by the City, the value of that credit balance (with the credit balance representing the credits approved, less credits applied in-lieu of cash payment at building permit, and other credit adjustments as mutually agreed upon by the Parties in writing) shall be annually adjusted on October 1 using the annual inflation adjustment applied by the City to the subject fee program, as set forth in City Council Policy 478-01 and Section 3.55.090 of the Chula Vista Municipal Code. 4.14.2 The Parties acknowledge the possibility that the City Council may choose to add projects to the Bayfront DIF program over the life of this Development Agreement. To ensure that Developer's share of such additional improvements complies with nexus and proportionality requirements, the City agrees to: (1) provide notice to Developer when the City initiates an update to the 2014 BFDIF Nexus Study, or any subsequent nexus study prepared thereafter;and(2)provide at least sixty (60) days' advance notice to Developer before any hearing at which the City Council will consider amending the Bayfront DIF program. 4.15 J Street Gateway Monument.. Developer has agreed to design the monument for the J Street entrance as more frilly described in the attached Exhibit"G" ("J Street Gateway Monument"). The City agrees to add the construction of the J Street Gateway Monument to the Bayfront Impact Fee program in the next update. Should Developer elect to construct the J Street Gateway Monument, the City agrees to enter into a Reimbursement Agreement with Developer. For any amount that exceeds Developer's proportional share of DIF fees, the Reimbursement Agreement shall provide for a cash reimbursement when funds are available as determined by the City Manager, or other mutually acceptable reimbursement mechanism. 4.16 Recreational Facilities DIF Credit. To the extent Developer builds facilities that qualify as eligible Recreational Facilities, Developer shall receive credit for this against DIF fees that would have otherwise been paid by Developer. 4.17 Parkland Acquisition and Development In-Lieu Fee (PAD) Credit. To the extent Developer builds facilities that qualify as eligible parkland,Developer shall receive -13- credit for this against PAD fees that would have otherwise been paid by Developer. Should the City replace the PAD in-lieu fee with a similar park DIF in the future, the Developer shall receive credits for eligible facilities in the same manner. 4.18 RESERVED. 4.19 Undergrounding of Overhead Utilities Lines. City acknowledges the benefit of undergrounding overhead utilities lines located within the Otay District and Harbor District of the Chula Vista Bayfront. City has previously obtained a commitment of Rule 20A funds pursuant to the undergrounding program adopted by the California Public Utilities Commission to underground the 230kV lines located within the Chula Vista Bayfront. City agrees that the undergrounding of the remaining overhead utilities lines located within the Otay District and Harbor District shall be presented to the City Council as a priority in any future requests for Rule 20A funds to underground overhead utilities lines within the City. 4.20 Future Use of Project Revenues. City acknowledges that while nothing in this Agreement contemplates revenue sharing with respect to retail sales taxes or other revenues, Developer may ask City to consider revenue sharing and tax deferrals to promote development consistent with the Project Approvals. 4.21 Assistance from Other Governments. Upon Developer's request and at Developer's sole expense, City shall reasonably consider whether to make applications, or reasonably assist and cooperate with Developer in submitting applications for the following assistance, consistent with the Project Approvals and the Subsequent Project Approvals: 4.21.1 Available tax or other benefits from state or federal governments. 4.21.2 Available grants, loans, bonds, or subsidies from non-City local, state, or federal governments or agencies for government programs that seek to encourage the type of development identified in the Project Approvals or Subsequent Project Approvals. 4.21.3 Reimbursement from non-City local, state, or federal sources for any facilities provided as part of the Project. 5. DEVELOPER'S OBLIGATIONS AND PROVISION OF PUBLIC BENEFITS. 5.1 Public Benefits. In connection with the development of the Project, Developer shall provide the following public benefits: 5.1.1 In order to accelerate development of other property located within the Harbor District of the Chula Vista Bayfront Master Plan by constructing necessary infrastructure, demonstrating the economic viability of such -14- development, and substantially increasing the overall economic activity within the area, Developer agrees to commence construction of Improvements for the Project prior to December 31, 2022, even if the proposed Regional Conference Center has not commenced construction prior to that date. This obligation to commence construction shall be subject to the provisions of Section 11.15 below. 5.1.2 In order to elevate and encourage an increase in the quality of development within the Harbor District of the Chula Vista Bayfront Master Plan, Developer agrees that the quality of building materials and landscaping for the Project shall exceed the building materials and landscaping included in the Project's approvals. Developer also shall use its best efforts to obtain a luxury brand name for the residential component of the Project. 5.1.3 Developer agrees to pay City a sum of One Million dollars ($1,000,000.00) towards the purchase of a fire engine ("Fire Engine Payment"). The Developer shall make the Fire Engine Payment prior to the issuance of a certificate of occupancy for the first phase of the residential building for the Project. 5.1.4 Developer agrees to pay City a sum of Five Hundred Thousand dollars ($500,000.00) towards the purchase of a fire ladder truck ("Fire Truck Payment"). The Developer shall make the Fire Truck Payment prior to the issuance of a certificate of occupancy for the third phase of the residential building for the Project. 5.1.5 The City anticipates the formation of a CFD in the Bayfront Master Plan area ("Bayfront CFD") that will encompass the Property. The Bayfront CFD is anticipated to include an additional tax on transient occupancy revenues and transactions subject to sales and use tax, as determined by the California State Board of Equalization. Final tax rates shall be as determined during formation proceedings. Developer agrees that it shall not oppose or encourage others to oppose the formation of the Bayfront CFD. 6. TERM AND TERMINATION. 6.1 Term of Agreement. The Term shall commence on the Effective Date. The Term shall continue for a period of twenty(20) years from the Effective Date, subject to the following: 6.1.1 The Term shall be extended for periods equal to the time during which: 6.1.1.1 Litigation is pending which challenges any matter, including -15- compliance with CEQA or any other local, state, or federal law, related in any way to the approval or implementation of all or any part of the Project Approvals. Any such extension shall be equal to the time between the filing of litigation, on the one hand, and the entry of final judgment or dismissal, on the other. 6.1.1.2 Any other delay occurs which is beyond the control of the Parties, as described in Section 11.15. 6.1.2 During the Term, certain portions of the Property may be released from this Agreement as provided in Sections 6.4 and 11.2 of this Agreement. The City shall provide written confirmation of such release upon request. 6.1.3 As provided in Section 6.2 and elsewhere within this Agreement, the Term may end earlier than the end of the Term as specified in this Agreement. 6.2 Termination. This Agreement shall be deemed terminated and of no further effect upon the earlier occurrence of any of the following events: 6.2.1 Expiration of the Term as set forth in Section 6.1; 6.2.2 Entry of a final judgment setting aside,voiding,or annulling the adoption of the Enabling Ordinance for this Agreement; 6.2.3 The adoption of a referendum measure overriding or repealing the Enabling Ordinance for this Agreement; 6.2.4 Completion of the Project in accordance with the terms of this Agreement, including issuance of all required occupancy permits and acceptance, as required by state law, by City, or the applicable public agency, of all required dedications and the satisfaction of all of Developer's obligations under this Agreement; and 6.2.5 Should Developer fail to timely commence construction as provided in section 5.1.1 of this Agreement, City shall have the right, but not the obligation, to terminate this Agreement. 6.2.6 As may be provided by other specific provisions of this Agreement. 6.3 Effect of Termination. Subject to Section 6.2, upon any termination of this Agreement, the only rights or obligations under this Agreement which either Party shall have are: 6.3.1 The completion of obligations which were to have been performed prior to termination, other than those which are separately addressed by -16- Section 5; 6.3.2 Development rights that may have vested as set forth in Section 4.6; 6.3.3 The performanceand cure rights set forth in Section 9.3; and 6.3.4 Those obligations that are specifically set forth as surviving this Agreement, such as those described in Section 8.6 and 11.19.2. 6.4 Release of Obligations With Respect to Individual Lots Upon Certification of Occupancy. Notwithstanding any other provision of this Agreement: 6.4.1 When any individual lot has been finally subdivided and sold, leased, or made available for lease to a member of the public or any other ultimate user, and a certificate of occupancy has been obtained for the building(s) on the lot, that lot and its owner shall have no further obligations under and shall be released from this Agreement. 6.4.2 Upon the conveyance of any lot, parcel, or other property, whether residential, commercial, or open space, to a homeowners' association, property owners' association, or public or quasi-public entity, that lot, parcel, or property and its owner shall have no further obligations under and shall be released from this Agreement. No formal action by City is required to affect this release, but, upon Developer's request, City shall sign an estoppel certificate or other document to evidence the release. 6.5 Term of Map(s) and Other Project Approvals. 6.5.1 Subdivision Maps. Pursuant to Government Code Section 66452.6, the term of all subdivision or parcel maps that are approved for all or any portion of the Project on the Property shall be automatically extended to a date coincident with the Term and, where not prohibited by State law, with any extension of the Term. 6.5.2 Other Project Approvals. Pursuant to Government Code section 65863.9, the Subsequent Project Approvals shall automatically be extended for a term ending concurrently with the applicable subdivision maps for the Project. 6.5.3 Pursuant to Government Code section 65867.5(c), any tentative map prepared for the Project will comply with the provisions of Government Code section 66473.7. (See Final Environmental Impact Report for the Chula Vista Bayfront Master Plan, Appendix 4.14-1.) -17- 7. ANNUAL REVIEW. 7.1 Timing of Annual Review. Pursuant to Government Code Section 65865.1, at least once during every twelve(12)month period of the Term,City shall.review the good faith compliance of Developer with the terms of this Agreement ("Annual Review''). 7.2 Standards for Annual Review. During the Annual Review, Developer shall be required to demonstrate good faith compliance with the terms of this Agreement. "Good faith compliance" shall be established if Developer is in compliance with the terms and conditions of this Agreement. If the City Council or its designee finds and determines that Developer is not in good faith compliance, then City may proceed in accordance with Section 9 pertaining to the potential default of Developer and the opportunities for cure. Developer shall pay City's reasonable fees and costs incurred in connection with the Annual Review. 7.3 Procedures for Annual Review. The Annual Review shall be conducted by City Council or its designee. Developer shall be given a minimum of sixty (60) days' notice of any date scheduled for an Annual Review. 7.4 Certificate of Compliance. At any time during any year that the City Council or its designee finds that Developer is not in default under this Agreement, City shall, upon written request by Developer, provide Developer with a written certificate of good faith compliance within fifteen(15) days of City's receipt of that request. 7.5 Failure of Periodic Review. City's failure to review at least annually Developer's compliance with the terms and conditions of this Agreement shall not constitute or be asserted by City or Developer as a breach of this Agreement. 8. THIRD PARTY LITIGATION. 8.1 General Plan Litigation. City has determined that this Agreement is consistent with its General Plan,LCP,and Subarea Plan. Developer has reviewed the General Plan, LCP, and Subarea Plan and concurs with City's determination. City shall not have any liability under this Agreement or otherwise for any failure of City to perform under this Agreement, or for the inability of Developer to develop the Property as contemplated by the Project Approvals, Subsequent Project Approvals, or this Agreement, if such failure or inability is the result of a judicial determination that part or all of the General Plan, LCP, or Subarea Plan is invalid, inadequate, or not in compliance with law. 8.2 Third Party Litigation Concerning Project or Agreement. Developer shall, at Developer's sole expense, defend, indemnify, and hold harmless the City, and its elected and appointed officials, officers, employees, and independent contractors engaged in Project (each a "City Party", collectively the "City Parties") from any -18- third-party claim, action or proceeding against any City Party to attack, set aside, void, or annul the Project Approvals, Subsequent Project Approvals, or this Agreement. City shall promptly notify Developer of any such claim, action or proceeding, and City shall reasonably cooperate in the defense. City may in its discretion participate in the defense of any such claim,action or proceeding. If City uses its discretion to participate in the defense of any such claim, action or proceeding, Developer shall pay City's reasonable attorneys' fees and litigation costs incurred in that defense. 8.3 Indemnity. In addition to the provisions of Sections 8.1 and 8.2, Developer shall, at Developer's sole expense,indemnify,defend,and hold free and harmless all City Parties engaged in Project planning or implementation from and against any third- party liability or claims based or alleged upon any act or omission of Developer,its officers, agents, employees, subcontractors, independent contractors (each a "Developer Party"; collectively the "Developer Parties"), for property damage, bodily injury or death (Developer's employees included), or any other element of damage of any kind or nature, relating to or arising from development of the Project, except for claims for damages arising through active negligence or willful misconduct of any City Party. Developer shall defend,at Developer's sole expense, including attorneys' fees, all City Parties in any legal action based upon such alleged acts or omissions of any Developer Party. City may in its discretion participate in the defense of any such legal claim, action, or proceeding. If City uses its discretion to participate in the defense of any such claim, action or proceeding, Developer shall pay City's reasonable attorneys' fees and litigation costs incurred in that defense. 8.4 Environmental Contamination. Developer shall, at Developer's sole expense, indemnify, and hold free and harmless all City Parties from and against any liability, based or alleged, upon any act or omission of Developer, or any of its officers, agents, employees, subcontractors, predecessors in interest, successors, assigns, or independent contractors, resulting in any violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under, or about the Property, including, but not limited to, soil and groundwater conditions, and Developer shall defend, at its sole expense, including attorneys' fees, all City Parties in any action based or asserted upon any such alleged act or omission. City may in its discretion participate in the defense of any such claim, action, or proceeding. If City uses its discretion to participate in the defense of any such claim, action or proceeding, Developer shall pay City's reasonable attorneys' fees and litigation costs incurred in that defense. 8.5 Cit, toApprove Counsel; Conduct of Liti ag tion. With respect to Sections 8.1 through 8.4, City reserves the right either (a) to approve the attorney(s) that Developer selects, hires, or otherwise engages to defend City,which approval shall not be unreasonably withheld or delayed, or (b) in City's sole discretion, conduct -19- its own defense. If City elects to conduct its own defense, Developer shall reimburse City for all reasonable attorneys' fees and litigation costs incurred for such defense with the understanding that Developer's attorney(s) shall be lead counsel and City's attomey(s)shall,to the maximum extent feasible,cooperate with Developer's attorney(s). Developer shall have the right to audit all billings for such fees and expenses. 8.6 Survival. The provisions of Sections 8.1 through 8.5 inclusive, shall survive the termination, cancellation, or expiration of this Agreement. 9. DEFAULTS AND REMEDIES. 9.1 Default by Developer. Developer shall be in default of this Agreement if it does any or any combination of the following: 9.1.1 Willfully, or through Developer's gross negligence, violates any order, ruling or decision of any administrative or judicial body having jurisdiction over the Property or the Project. 9.1.2 Fails to cure a material breach of this Agreement within the time set forth in a written notice of default from City. 9.2 Default by City. City shall be in default of this Agreement only if it fails to cure a material breach of this Agreement within the time set forth in a written notice of default from the Developer to City. 9.3 Notice and Termination. A Party alleging a default by any other Party shall serve written notice thereof. Each such notice shall state with specificity all of the following: 9.3.1 The nature of the alleged default, with reference to the specific Sections of the Agreement that are alleged to have been breached and the specific facts supporting those allegations. 9.3.2 The manner in which the alleged default may be satisfactorily cured. 9.3.3 A period of time in which the default may be cured. The notice of default shall allow at least sixty(60) days to cure the default. If the default is of such a nature as not to be susceptible of cure within sixty(60)days using diligent efforts, then the defaulting Party shall only be deemed to have failed to cure the default if it fails diligently to commence such cure within sixty(60) days or if it fails diligently to prosecute such cure to its conclusion. 9.4 Default Remedies. A Party who complies with the notice of default and opportunity -20- to cure requirements of Section 9.3 may, at its option, institute legal action to cure, correct, or remedy the alleged default as provided in this Agreement. 9.5 Developer's Remedy. Developer acknowledges that City would not have entered into this Agreement if if were to be liable in damages under or with respect to all or any part of the development of the Project on the Property._Accordingly, Developer shall not sue City for damages or monetary relief for any matter related to the development of the Project on the Property. Developer's litigation remedies shall be limited to declaratory and injunctive relief, mandate, and specific performance. In the event that Developer desires to enforce any term or provision of this Agreement by specific performance, City expressly agrees that an action in damages is inadequate and unavailable. Given these facts and circumstances, City warrants and represents that damages for a breach are inadequate and/or unavailable and City expressly waives the right to contest any request by Developer to this Agreement for specific performance on the basis that damages are adequate. 9.6 City's Remedy. In the event of an uncured default by Developer, City may pursue any and all available legal or equity remedies for the default. 9.7 Waiver; Remedies Cumulative. All waivers of performance must be in a writing signed by the Party granting the waiver. There are no implied waivers. Failure by City or Developer to insist upon the strict performance of any provision of this Agreement,irrespective of the length of time for which such failure continues,shall not constitute a waiver of the right to demand strict compliance with this Agreement in the future. A written waiver affects only the specific matter waived and defines the performance waived and the duration of the waiver. Unless expressly stated in a written waiver,future performance of the same or any other condition is not waived. A Party who complies with the notice of default and opportunity to cure requirements of Section 9.3, where applicable, and elects to pursue a .legal or equitable remedy available under this Agreement does not waive its right to pursue any other remedy available under this Agreement, unless prohibited by statute, court rules, or judicial precedent. Delays, tolling, and other actions arising under Section 11.15 shall not be considered waivers subject to this Section 9.7. 9.8 Alternative Dispute Resolution. Any dispute between the Parties may, upon the mutual agreement of the Parties, be submitted to mediation, binding arbitration, or any other mutually agreeable form of alternative dispute resolution. While an alternative dispute process is pending, the statute of limitation shall be tolled for any claim or cause of action which either of the Parties may have against the other. -21- 10. ENCUMBRANCES, ASSIGNMENTS, AND RELEASES. 10.1 Discretion to Encumber. This Agreement shall not prevent or limit Developer, in any manner, at Developer's sole discretion, from encumbering some or all of the Property or any improvement on the Property by any mortgage, deed of trust, or other security device to secure financing related to the Property or the Project. 10.2 Mortgagee Protection. City acknowledges that the lender(s) providing financing secured by the Property and/or its improvements may require certain Agreement interpretations and modifications. City shall, at any time requested by Developer or the lender, meet with Developer and representatives of such lender(s) to negotiate in good faith any such interpretation or modification. City will not unreasonably withhold or delay its consent to any requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Any Mortgagee of the Property shall be entitled to the following rights and privileges: 10.2.1 Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish, or impair the lien of any mortgage or deed of trust on the Property made in good faith and for value. 10.2.2 If City timely receives a request from a Mortgagee requesting a copy of any notice of default given to Developer under the terms of this Agreement, City shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to Developer. The Mortgagee shall have the right,but not the obligation,to cure the default during the remaining cure period allowed Developer under Section 9.3 of this Agreement. 10.2.3 Except as otherwise provided within this Agreement, any Mortgagee who comes into possession of some or all of the Property pursuant to foreclosure of a mortgage or deed of trust, or deed in lieu of such foreclosure or otherwise, shall: 10.2.3.1 Take that property subject to the terms of this Agreement and as Developer's successor; 10.2.3.2 Have the rights and obligations of an Assignee as set forth in Sections 10.5; 10.2.3.3 Have the right to rely on the provisions of Section 4 of this Agreement, provided that any development proposed by the Mortgagee is in substantial conformance with the terms of this Agreement; and -22- 10.2.3.4 Not be liable for any defaults, whether material or immaterial, or monetary obligations of Developer arising prior to acquisition of title to the Property by the Mortgagee, except that the Mortgagee may not pursue development pursuant to this Agreement until all delinquent and current fees and other monetary obligations due under this Agreement for the portions of the Property acquired by the Mortgagee have been paid to City. 10.3 Estoppel Certificate. Within ten (10) business days following a written request by either of the Parties,the other Party shall execute and deliver to the requesting Party a statement certifying that(i) either this Agreement is unmodified and in full force and effect or there have been specified (date and nature) modifications to the Agreement, but it remains in full force and effect as modified; and (ii) either there are no known current uncured defaults under this Agreement or that the responding Party alleges that specified (date and nature) defaults exist. The statement shall also provide any other reasonable information requested. The failure to timely deliver this statement shall constitute a conclusive presumption that this Agreement is in full force and effect without modification,except as may be represented by the requesting Party and that there are no uncured defaults in the performance of the requesting Party, except as may be represented by the requesting Party. Developer shall pay to City all reasonable administrative costs incurred by City in connection with the issuance of estoppel certificates under this Section prior to City's issuance of such certificates. 10.4 Transfer or Assignment. Subject to Section 10.6, Developer shall have the right, subject to City's reasonable consent, to sell, transfer, or assign its rights and obligations under this Agreement (collectively, an "Assignment") in connection with a transfer of Developer's interest in all, any portion of, or any interest in the Property ("Transferred Property"). No Assignment shall be made unless made together with the sale, transfer, or assignment of all or any portion of Developer's . interest in the Transferred Property. At least fifteen (15) business days prior to the effective date of any Assignment, Developer shall notify City in writing of the proposed Assignment and provide City with an Assignment and Assumption Agreement, in a form substantially similar to Exhibit "J", executed by'the purchaser, transferee, or assignee (collectively, the "Assignee") to expressly and unconditionally assume all duties and obligations of Developer under this Agreement remaining to be performed at the time of the Assignment with respect to the Transferred Property. 10.5 Effect of Assi ent. Subject to Section 10.4 and unless otherwise stated within the Assignment, upon an Assignment: 10.5.1 The Assignee shall be liable for the performance of all obligations of Developer with respect to Transferred Property, but shall have no -23- obligations with respect to the portions of the Property, if any, not transferred(the"Retained Property"). If the Assignee of the Transferred Property defaults under this Agreement, such default shall not constitute a default by the Developer of the Retained Property. 10.5.2 The Developer of the Retained Property shall be liable for the performance of all obligations of Developer with respect to Retained Property, but shall have no further obligations with respect to the Transferred Property. If the Developer of the Retained Property defaults under this Agreement, such default shall not constitute a default by the Assignee of the Transferred Property. 10.5.3 The Assignee's exercise, use,and enjoyment of the Transferred Property shall be subject to the terms of this Agreement to the same extent as if the Assignee were the Developer provided, however, that Assignee shall not have the right to seek an amendment to this Agreement, the Project Approvals, or the Subsequent Project Approvals with respect to the Transferred Property without the written consent of the Developer of the Retained Property. The Developer of the Retained Property shall retain the right to seek an amendment to this Agreement,the Project Approvals, or the Subsequent Project Approvals with respect to the Retained Property without the written consent of the Assignee. 10.6 City's Consent. City's reasonable consent shall be required for any Assignment of all or a portion of this Agreement, provided, however, City's consent shall not be required if the Assignment is to an entity that is 100% owned by Developer or subject to the control of Developer. It shall be a presumption that control with respect to a corporation or limited liability company is the right to exercise, directly or indirectly, more than fifty percent (50%) of the voting rights attributable to the controlled corporation or limited liability company, and, with respect to any individual, partnership, trust, other entity or association, control is the possession, indirectly or directly, of the power to direct or cause the direction of the management or policies of the controlled entity. 11. MISCELLANEOUS PROVISIONS. 11.1 Rules of Construction. The singular includes the plural; the masculine gender includes the feminine; "shall" is mandatory; "may" is permissive. 11.2 Binding Effect of Agreement. This Agreement shall be recorded against the Property and shall run with the land. The Project shall be carried out on the Property in accordance with the terms of this Agreement. Until released or terminated pursuant to the provisions of this Agreement or until Developer has fully performed its obligations arising out of this Agreement, no portion of the Property shall be released from this Agreement. -24- 11.3 Entire Agreement. This Agreement constitutes the entire understanding and agreement of City and Developer with respect to the matters set forth in this Agreement. This Agreement supersedes all negotiations or previous agreements between City and Developer respecting the subject matter of this Agreement. 11.4 Recorded Statement Upon Termination. Upon the completion of performance of this Agreement or its cancellation or termination, a statement evidencing completion, cancellation, or termination signed by the appropriate agents of City, shall be recorded in the Official Records of San Diego County, California. 11.5 Amendment or Cancellation of Agreement. This Agreement may be amended from time to time or canceled only by the written consent of both City and Developer in the same manner as its adoption, as set forth in California Government Code Section 65868. Any amendment or cancellation shall be in a form suitable for recording in the Official Records of San Diego County,California. An amendment or other modification of this Agreement will continue to relate back to the Effective Date of this Agreement (as opposed to the effective date of the amendment or modification), unless the amendment or modification expressly states otherwise. 11.6 Minor Changes/Operating Memorandum. The provisions of this Agreement require a close degree of cooperation between the Parties. It is anticipated that minor changes to the Project may be required from time to time to accommodate design changes, engineering changes, and other refinements related to the details of the Parties' performance. Minor changes are those changes to the Project that are otherwise consistent with the Project Approvals, and which do not result in a change in the type of use, an increase in density or intensity of use, significant new or increased environmental impacts that cannot be mitigated, or violations of any applicable health and safety regulations in effect on the Approval Date. Accordingly, the Parties may mutually consent to adopting "minor changes" through their signing of an operating memorandum reflecting the minor changes without having to amend this Agreement. Neither the minor changes nor any operating memorandum shall require public notice or hearing. The City Attorney and City Manager shall be authorized to determine whether proposed modifications and refinements are minor changes subject to this Section or more significant changes requiring amendment of this Agreement. The City Manager may execute any operating memorandum for minor changes without City Council action. 11.7 Project as a Private Undertaking. It is specifically understood by City and Developer that (i) the Project is a private development; (ii) City has no interest in or responsibilities for or duty to third parties concerning any improvements to the Property unless City accepts the improvements pursuant to the provisions of this Agreement or in connection with subdivision map approvals; and (iii) Developer shall have the full power and exclusive control of the Property, subject to the obligations of Developer set forth in this Agreement. -25- 11.8 Incorporation of Recitals. Each of the Recitals set forth at the beginning of this Agreement are part of this Agreement. 11.9 Captions. The captions of this Agreement are for convenience and reference only and shall not define, explain, modify, construe, limit, amplify, or aid in the interpretation, construction,or meaning of any of the provisions of this Agreement. 11.10 Consent. Where the consent or approval of City or Developer is needed to implement Development under this Agreement, the consent or approval shall not be unreasonably withheld, delayed, or conditioned. 11.11 Covenant of Cooperation. City and Developer shall cooperate and deal with each other in good faith and assist each other in the performance of the provisions of this Agreement. In addition, City staff shall cooperate with Developer in order to facilitate Developer obtaining any required Project approvals from the California Coastal Commission. ` 11.12 Execution and Recording. The City Clerk shall cause a copy of this Agreement or, at City's discretion, a notice of the Agreement, to be signed by the appropriate representatives of City and recorded with the Office of the County Recorder of San Diego County, California, within ten (10) days following the Effective Date. The failure of City to sign and/or record this Agreement or notice thereof shall not affect the validity of and binding obligations set forth within this Agreement. 11.13 Relationship of City and Developer. The contractual relationship between City and Developer arising out of this Agreement is one of independent contractor and not agency. This Agreement does not create any third-party beneficiary rights. 11.14 Notices. All notices, demands, and correspondence required or permitted by this Agreement shall be in writing and delivered in person, sent by electronic mail, or mailed by first class or certified mail,postage prepaid, addressed as follows: If to City, to: City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 Attn: City Manager With a copy to: City Attorney City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 If to Developer, to: -26- North C.V. Waterfront L.P. 1775 Hancock Street, Suite 200 San Diego, California 92106 Attn: Ashok Israni, Chairman, Sergio Sandoval, Senior Project Manager AND Thomas P. Sayer, Esq. 9914 Scripps Ranch Blvd., #284 San Diego, California 92131 City or Developer may change its address by giving notice in writing to each of the other names and addresses listed above. Thereafter, notices, demands, and correspondence shall be addressed and transmitted to the new address.Notice shall be deemed given upon personal delivery,the date of actual receipt or, if mailed,not later than two (2)business days following deposit in the United States mail. 11.15 Delay for Events Beyond the Parties' Control. Notwithstanding Section 9, performance by either Party of its obligations under this Agreement shall be excused, and the Term shall be extended,for periods equal to the time during which (1) litigation is pending which challenges any matter, including compliance with CEQA or any other local, state, or federal law, related in any way to the approval or implementation of all or any part of the Project Approvals or Subsequent Project Approvals. Any such extension shall be equal to the time between the filing of litigation, on the one hand, and the entry of final judgment or dismissal, on the other. All such extensions shall be cumulative; (2) a delay is caused by reason of any event beyond the control of City or Developer which prevents or delays performance by City or Developer of obligations under this Agreement. Such events shall include, by way of example and not limitation, acts of nature, riots, strikes, or damage to work in process by reason of fire, mud, rain, floods, earthquake,or other such casualties. Such an event may include a severe market or business downturn, recession, collapse or contraction of financial and capital markets, and the unavailability of reasonable market financing. If City or Developer seeks excuse from performance (an "Impacted Party"), it shall provide .written notice of such delay to the other party within thirty (30) days of the commencement of such delay. The Impacted Party shall resume the performance of its obligations as soon as practicable after the removal of the cause for delay. If the delay or default, is beyond the control of City or Developer it shall be excused, and an extension of time for such cause shall be granted in writing for the period of the enforced delay, or longer as may be mutually agreed upon. Any disagreement between the Parties with respect to whether this Section applies to a particular delay or default is subject to the filing by either Party of an action for judicial review of the matter, including requests for declaratory and/or injunctive relief. -27- 11.16 Interpretation and Governing Law. In any dispute regarding this Agreement, the Agreement shall be governed and interpreted in accordance with the laws of the State of California. Venue for any litigation concerning this Agreement shall be in San Diego County, California. 11.17 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 11.18 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. 11.19 Future Litigation Expenses. 11.19.1 Payment to Prevailing Party. If either Party brings a legal or equitable proceeding against the other Party which arises in any way out of this Agreement,the prevailing Party shall be entitled to recover its reasonable attorneys' fees and all other reasonable costs and expenses incurred in that proceeding. 4 11.19.2 Scope of Fees. Attorneys' fees under this Section shall include attorneys' fees on any appeal and in any post judgment proceedings to collect or enforce the judgment. This provision is separate and several and shall survive the termination of this Agreement. 11.20 Appeal to City Council. Developer may appeal directly to the City Council any decision by the City Manager concerning the interpretation and/or administration of this Agreement. Developer shall file any such appeal with the City Clerk within ten (10) days after receiving notice of the City Manager's decision. The City Council shall render a decision at the next available noticed public hearing. 12. EXHIBITS. All exhibits attached to this Agreement are incorporated as a part of this Agreement. Those exhibits are: -28- Exhibit Description "A" Legal Description and Depiction of the Property "B" General Description and Depiction of the Project "C" Phase I Project Approvals "D" J Street Sewer Improvements "E" J Street Sweep Improvements "F" RESERVED "G" RESERVED "H" RESERVED ;T7 RESERVED Assignment and Assumption Agreement "K" RESERVED "L" Project Entitlements (Signatures on following page) -29- Developer and City have executed this Agreement on the dates set forth below. CITY DEVELOPER CITY OF CHULA. VISTA, a California NORTH C.V. WATERFRONT L.P., a charter city and municipal corporation California limited partnership By: By: PACIFICA HOSPITALITY GROUP, Mayor INC., a Nevada corporation, its sole general partner Date: By: ATTEST: Its: By: Date: City Clerk APPROVED AS TO FORM: By: City Attorney -30- EXHIBIT "A" LEGAL DESCRIPTION AND DEPICTION OF THE PROPERTY LAND DESCRIPTION AD 558/G10-08.16 TRUST TERMINATION PARCEL Two parcels of land situate in'the City of Chula Vista,County of San Diego,State of California .and more particularly described as follows: Parcel 1 Those portions of Fractional Quarter Section 170 and 171 of the Rancho de La Nation, situate in the City of Chula Vista,County of San Diego, State of California according to Map thereof by Mora filed as Map No. 166 in the Office of the County Recorder of San Diego granted to the State of California as BFG Parcel.2 by deed recorded December 30, 1999 as Document No:1999-0845737,and more particularly described as all of said BFG. Parcel 2 lying southerly of the following described.line: COMMENCING at Station 116 of the ordinary high water mark as fixed and established by agreement recorded June 22, 1953,in Book 4897,Page 408 of Official Records of said County,and depicted on that"Survey of the Ordinary High Water Mark on the Shore of San Diego Bay"by the California State Lands Commission;filed as Miscellaneous Map 217 Records of said County;thence North 14°12'27"West 334.64 feet along said ordinary high water mark to-the POINT OF BEGINNING of said line;thence leaving said ordinary high water. mark North 84°22'28"East 323.30 feet to the beginning of a curve concave north; thence easterly along said curve with a radius of 534.00 feet through a central . angle of 3°07'25"an are distance of 29.11 feet to the intersection with the easterly line of said BFG Parcel l and the TERMINOUS of said line. Parcel l That portion of tide lands and submerged land whether filled or unfilled within the Bay of San Diego, situate in the City of Chula Vista,County of San Diego, State of California lying westerly of the ordinary high water mark of said Bay,as said ordinary high water mark was-fixed and established by agreement recorded June 22, 1953,in Book 4897, Page 408 of Official Records of said County,also shown on-that"Survey of the Ordinary High Water Mark on the Shore of San Diego Bay"by the California State Lands Commission,filed as Miscellaneous Map 217,Records of said County,and more particularly described as follows: BEGINNING at Station 116 of said-ordinary high watermark;thence North 14°12'27"West 334.64,feet along said ordinary high water mark;thence leaving said ordinary high water mark along the following nine(9)courses: 1. South 84022'28"West 86.65 feet to the.beginning of a curve concave southerly; 2. Thence westerly along said curve with a radius of 416.00-feet through a central angle of 13°34'46"an arc distance of 98.59'; 3. South 7004742"West 284.67 feet to the.beginning of a curve concave . northerly; 4. Thence westerly along said curve with a radius of 2034.00 feet through a, central angle of 1°17'22"an arc distance of 45.77 feet; 5: South 72°05'04"West 249.60 feet; 6. South 26°46'42"West 20.04 feet; 7. South 17054'50"East 1365.90 feet; 8. South 62°51'20"East 28.26 feet; 9. North 72°12'10"East 503.92 feet to the-intersection with said ordinary high water mark; thence along said ordinary high water mark North 7°04'12"West 11.59 feet; thence North 7°04'12"West 491.51 feet;thence North 4°01'5T'.West 568.80 feet to the POINT OF BEGINNING. RESERVING THEREFROM,for the benefit of the Grantor and the People of the State of California to use(I)the public rights-of-way lying within the parcel as described below and commonly known as."J"Street and Marina.Parkway in the City of Chula Vista,County of San Diego, State of California and(II)that portion of the said described parcel lying generally south and west of said"J" Street and Marina Parkway.The foregoing reservation shall terminate and shall be no further force or effect upon completion of the realignment and improvement of said segments of"J"Street and Marina Parkway as evidenced by written acceptance.of said realignment and improvement by the San Diego Unified Port District and the City of Chula Vista,as applicable: That potion of tide lands and submerged land whether filled or unfilled within the Bay of -San Diego,situate in the City of Chula Vista, County of San Diego, State of California lying westerly ofthe ordinary high water mark of said Bay,as said ordinary high water mark was fixed and established by agreement recorded June 22, 1953,in Book 4897, Page 408 of Official Records of said County,also shown on that"Survey.of the Ordinary High Water Mark on the Shore of San Diego Bay"by the California State Lands Commission,fled as Miscellaneous Map 217,Records of said County,and more particularly described as follows: .CON3 ENCING at.Station 116 of said ordinary high watermark-,thence North 14012127"West 334.64 feet along said ordinary high water mark;thence leaving said ordinary high water mark along the following seven(7)courses:. 1. South 84°22'28"West 86.65 feet to the beginning of a curve concave southerly; 2. Thence westerly along said curve with'a radius of 416.00 feet through a central angle of.13°34'46"an arc distance of 98.59'; 3. South 70°47'42"West 284.67 feet to the beginning of a curve concave northerly; 4. Thence westerly along said curve with a radius of 2034.00 feet through a central angle of 1°17'22"an are distance of.45.77 feet; 5. South 72005'04"West 249.60 feet; 6. South 25°46'42"West 20.04 feet; 7.. South 17°54'50"East 833.96 feet to the P0114T OF BEGINNING said point of beginning being the beginning of a curve concave northeasterly; thence souttheasterly along said curve with a radius of 540.00 feet through a central angle of 88°33'22"an arc distance of 834.62 feet to the intersection with said ordinary high water mark;thence along said ordinary high water mark South 7°04'12"East.1138 feet;thence leaving said ordinary high water mark South 72012'10"West 503.92 feet;thence North 62°51'20"West 28.26 feet;thence North 17°54'50"West 531.94 feet to the POINT OF BEGINNING. BASIS OF BEARINGS for this description is California Coordinate System 1983 Zone VI.All distances are grid distances. END OF AESCRI PTION Prepared 11/21/2011 by the Boundary Unit of the California State Lands Commission. Np,L LAS x CL Exp, f' No..487 �9�OF CALIF�Q EXHIBIT ,A•-2 P.O.R -Poll. J/f OED. M • �F:94'22'2a t 323.30'/ N u L W w w EASTERLY LINE Of` Ah QU,�t?lER:SEfTD P.O.C, a+ STA. f 16 N �'. x o ' x PUR. 1/4 auW 170 Th o; o N w W.Ail T7� 1. m .STA. 117 o: x a sVv LINE OF rn 9FG PGL 2 � , .-F/P 1999-084573 7. THIS EXHIBIT IS FOR GENERAL REFERENCE PURPOSES ONLY; SEE ACCOMPANYING LAND DESCRIPTION FOR CONTROLLING PARCEL BOUNDARY INFORMATION. PLAT OF FINAL TRUST TERMINATION PARCEL 1 DATE 11/21/2011 AD .558 / C"0-08. f6 CSL C, SDUPD, 'CALIFORNIA STATE 1:TORTFI C.V. lVATERFRDNT L.P. I�L, �'S CoNmfls�SiioN LAND E.�CHANGE AGREEMENT - 4 EXfH1®iT A-3 NB4?�'28eE X665' -ZW. .114 8W. 1711 / D9,97097 YBDEL AND P.G.B. ' 20 4' 'STA. 116 ' V:Z: COURSE TABLE D WMBER•RADNS DELTA/BEARING .LENGTH 1 N� .07'04'12":W L=11.59'' PZW. 114 61E0 .1-7a N 62''51'20",.W L=28:26' 3 R=2034' '6= 01'1T'22" L=45.T7: ' a 4 R=416' A13 34'46" L=98.59' PARCEL ` PARCEL.2 3 m, m. g STA. 117 m . O: T . il a, V1 : a S"LY UNE.OF LA ; 7 BFG:PCL - LA . -F/F 1999.08457 7 V 57 THIS EXHIBIT IS FOR GENERAL REFERENCE PURPOSES ONLY; SEE ACCOMPANYING LAND DESCRIPTION FOR CONTROLLING PARCEL BOUNDARY INFORMATION. PLAT OF TRUST TERMINATION. PARCEL 2 DATE 11/21/2011 AD 55a / G110-08-. 16 . CSLc, SDUPD, ]CALIFORNIA STATE NORTH C.V. 1VATERF'RONT L.P. �LAr+TJS �OrdIr�SSIOr1 LAND EXCHANGE AGREEMENT i �' EXHIBIT "B" GENERAL DESCRIPTION AND DEPICTION OF THE PROJECT Chula Vista Bayfront Master Planned Project General Project Description & Depiction of Property I. Pacifica Companies Development Portion Within the Plan area, Pacifica Companies' development portion (the"Property") will consist of 33 acres of 1,500 residential condos, 420,000 SF of commercial office & retail space, and a 250-room hotel (the"Project"). North C.V. Waterfront L.P. is an affiliate of Pacifica Companies, and is defined as the Developer in the accompanying Development Agreement. The Project is intended to be constructed in phases over the length of the Development Agreement. 1 Z Iwo Ifg 3-1 t. s # eu P•h $ op £ i 4P cm LJL- ` � i t p � r' fi � ��j►� (�i'i'i x ci , Ok o to 'a fo � �t + +`' Oo e � -:t+s � rzT`� �s ¢9 N✓�� ry ,1'•t S U O EXHIBIT"C" PHASE I PROJECT APPROVALS • Development Agreement • Tentative subdivision map • Coastal Development Permit • Local Coastal Program Amendment • Design Review approval EXHIBIT "D" J STREET SEWER IMPROVEMENTS W � _ a LL —� w LL) IOL- LLJ 4-0 U 00 _ ... 3:• d ——U) z f x `� U CD o zinwz f-`Q< 7 ;I N:2u<o 1 x=)ow wa-J:� 21 cu � jl LU z E ui I f z cn xz o< I(j"��- xo�r N V ��Q� O - A _' II � 9 � - P-• Z Z Z w � • , � f, if - � .p �, 2 rn LL v<' H N_ W ?�Q I X r^ I—N O SUN WxW eO O /�j V ^� L)LLJ O `I =_.` _ �II ® O I� � W —i 0 o oLL V)LLJ LU Z t a Z , cn LL <, -� 7 +I ❑ CL V CL �. - 1 = -W'— oLLJ ar x 3ZQW Q'I LLIO0-ZCLO (n�0UZCIJ 0 ; H�~WLLJ-LL Q(nZ •(n0 Z U W OCLQHOW _j C) H WSW OQ W zz F- l' F— X ao LL) �J WNL X d LLI L. J D�Z0 c <c o � U�W� Ou Y W O LLD " <_01 �-9 \ 1+� u- I V D G( (f) 00 ' c Z x t �<TLL z A m LPs{YIOZ-1]O-lf uva al Paas-sooz-voxa,Prulal\cv-sooz-vPlva�m\viovfo�a\vooav,l�o.,\9ooz-.�vl N+va\aP�PPmlv�lvl�\lazf-��v\\ uPP'�ow05-POooPo�d-44x58-tl91494\1191 W.Tllnl]\9L t94\.f EXHIBIT "E" J STREET SWEEP IMPROVEMENTS i r1 �a 71 - -- M i! z 14 I t t _ Imulmn �Eliliflilig �•:,�� .. Zr! , I EXISTING RIGHT ` - I OF WAY =` Ie IIIIIIIIIIIIIII!^ �\� L 0 EXISTING RIGHT OF WAYSTREET WMAP \ -- 1�p - -�_�_-_-___ u Schematic Only. Not Approved for construction 5620 FRIARS ROAD SAN DIEGO,CA 92110 1.0707 (FAX)619.291.4165 CHULA VISTA BAYFRONT EXISTING CONDITIONS EVGISEERISG CONPAVY (FAX)6 DRAFT 10/31/14 !Ir rj 9� PARKWAY' f 5'SIDEWALK 12' CLASS I T� •i =BIKE PATH PR o ` .��---,.fes 12' CLASS.I^ J STREET ® BIKE PATI 'SIDE ALK T PARKWAY t N Schematic Only. Not Approved for Construction 5620 FRIARS ROAD SAN DIEGO,6192110 1.0707 (FAX)619.291A165 PACIFICA COMPANIES PROPOSED IMPROVEMENTS EVGNEERI� (FAX)6 DRAFT 10/31/14 EXHIBIT "F" RESERVED EXHIBIT "G" RESERVED EXHIBIT "H" RESERVED EXHIBIT "I" RESERVED EXHIBIT "J" ASSIGNMENT AND ASSUMPTION AGREEMENT P ASSIGNMENT AND ASSUMPTION AGREEMENT ASSIGNMENT AND ASSUMPTION OF DEVELOPMENT AGREEMENT AMONG CITY OF CHULA VISTA AND THIS ASSIGNMENT AND ASSUMPTION OF DEVELOPMENT AGREEMENT ("Assignment") is made as of the day of , 20_ ("Effective Date"), by and among the ("Developer") and ("Assignee") with reference to the following facts: RECITALS A. Developer has entered into that certain Development Agreement, dated by and between the City of Chula Vista ("City"), on the one hand, and the X B. and Y Capital Partners on the other hand ("Agreement") for certain real property consisting of approximately acres of land located in the City, more particularly described in Exhibit "A" ("Property"). C. Developer desires to assign and delegate, and Assignee desires to accept and assume, all of Developer's rights and obligations under the Agreement in accordance with the terms and conditions set forth herein. D. By signing this Assignment, City approves the Assignment in accordance with the terms and-conditions set forth herein and in the Agreement. AGREEMENT NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Developer and Assignee do hereby agree as follows: 1. Assimment and Assumption. Effective as of the Effective Date, Developer hereby assigns, transfers, and conveys to Assignee all of Developer's rights, interest, duties, liabilities, and obligations in, to, and under the Agreement, and Assignee hereby accepts and assumes all such rights, interests, duties, liabilities, and obligations under the Agreement from Developer for[the Property or a portion of the Property] ("Assigned Property") [, except to the extent Developer has retained a portion of the Property(the"Retained Property")]. 2. City Consent to Assignment. Effective as of the Effective Date, City hereby consents to the Assignment and hereby fully releases and forever discharges Developer from any and all obligations to City under the Agreement for the Assigned Property, [except Developer's obligations with respect to the Retained Property]. 3. Entire Agreement. This Agreement represents the final and entire agreement between the parties in connection with the subject matter hereof, and may not be modified except by a written agreement signed by both Developer and Assignee. G-2 60093.00023\8457554.1 4. Governing Law. This Agreement has been prepared, negotiated, and executed in, and shall be construed in accordance with, the laws of the State of California, without regard to conflict of law rules. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. Developer: By: Assignee: By: Name: Its: City: City of Chula Vista, a California Municipal Corporation By: Name: Its: EXHIBIT "K" RESERVED EDIT"L" PROJECT ENTITLEMENTS • Chula Vista Bayfront Master Plan, as jointly approved by the San Diego Port Authority Board of Commissioners and City Council of Chula Vista, 2005 • Chula Vista Bayfront Master Plan certified Environmental Impact Report, as jointly approved by the San Diego Port Authority Board of Commissioners and City Council of Chula Vista, 2010 • Chula Vista Bayfront Master Plan, as approved by the California Coastal Commission, 2012 • City of Chula Vista Bayfront Specific Plan, Local Coastal Program, "LCP", 2012 • City of Chula Vista Bayfront Land Use Plan, 2012 • Chula Vista Multiple Species Conservation Plan Subarea Plan("Subarea Plan"), 2013 ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND NORTH C.V. WATERFRONT L.P. FOR THE DEVELOPMENT OF APPROXIMATELY 33 ACRES OF LAND LOCATED IN THE HARBOR DISTRICT OF THE CHULA VISTA BAYFRONT MASTER PLAN AREA WHEREAS, the property which is the subject matter of this ordinance is identified in the Development Agreement as `'Exhibit A" on file in the office.of the City Clerk, consisting of approximately 33 acres of land located in the Harbor District of the Chula Vista Bayfront Master Plan ("Property"); and WHEREAS, the Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project was covered in previously certified Environmental Impact Report UPD#83356-EIR- 658/SCH#2005081077. Thus, no additional environmental review is required; and WHEREAS, the Planning Commission set the time and place for a hearing on said Development Agreement and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City and its mailing to property owners within 500 feet of the exterior boundaries of the Property at least ten days prior to the hearing; and WHEREAS, the hearing was held at the time and place as advertised, namely 6:00 p.m. July 11, 2018, in the Council Chambers, 276 Fourth Avenue, and the Planning Commission voted 0-0-0-0 to approve Planning Commission Resolution PCM18-01 recommending to the City Council approval of the Development Agreement between the City of Chula Vista and North C.V. Waterfront L.P. for the development of approximately 33 acres of land located in the Harbor District of the Chula Vista Bayfront Master Plan Area("Development Agreement"); and WHEREAS, on July 17, 2018, a duly noticed public hearing was scheduled before the City Council of the City of Chula Vista to consider adopting the ordinance to approve the Development Agreement; and WHEREAS, staff has reviewed the Development Agreement and determined it to be consistent with the City's General Plan and Local Coastal Program, both as amended; and WHEREAS, North C.V. Waterfront L.P. ("Developer") requested a variance from the City's Balanced Communities Policy ("BCP"), as amended, on the basis that special circumstances exist that are unique to the development including significant unique public benefits that will be provided to the community; \\prod-netapp-gm-as-fsas.tops.gdi\insite_data_prod\files\CHUL\Ittachmentsta766a96I-fcce-49eb-9ed4-a5130b34G07.docx Ordinance Page 2 WHEREAS, the Director of Development Services obtained further information regarding the Developer's request and performed an independent evaluation of such request; and WHEREAS, the City Manager recommends that the City Council approve the Developer's request for a variance after his consideration of. (i) the independent evaluation of the Director of Development Services, (ii) the unique public benefits of the development as described in Recitals J, K, and L of the proposed Development Agreement, and (iii) the specific factors to be considered as provided in the BCP. NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I. Planning Commission Record The proceedings and all evidence introduced before the Planning Commission at their public hearing held on July 11, 2018 and the minutes and resolutions resulting therefrom, are hereby incorporated into the record of this proceeding. These documents, along with any documents submitted to the decision makers, shall comprise the entire record of the proceedings for any California Environmental Quality Act(CEQA) claims. Section II. Compliance with CEQA The City Council hereby finds, based upon their independent review and judgement, that the adoption of the ordinance approving the Development Agreement for the project, as described and analyzed in the certified Environmental Impact Report UPD#83356-EIR- 658/SCH#2005081077, would have no new effects that were not examined in said certified EIR (CEQA Guideline 15168 (c)(2)). Section III-. Consistency with General Plan and Local-Coastal Program The City Council finds that the proposed Development Agreement is consistent with.the City's General Plan and the City's Local Coastal Program, both as amended. The Development Agreement implement the General Plan and the Local Coastal Program by providing a comprehensive program to implement the Project, as approved. Section IV. Variance from Balanced Communities Policy The City Council finds that the proposed development provides unique public benefits to the community, including those described in Recitals J, K, and L of the proposed Development Agreement, which constitute special circumstances justifying the approval of Developer's request for a variance from the City's Balanced Communities Policy. Section V. Action The City Council hereby adopts an Ordinance approving the Development Agreement between the City of Chula Vista and North C.V. Waterfront L.P. for the development of approximately 33 acres of land located in the Harbor District of the Chula Vista Bayfront Master Plan Area (a copy of which is on file with the City Clerk's Office), finding it consistent with the California Government Code, adopted City policies, the General Plan, and the City's certified Ordinance Page 3 Local Coastal Program, and approving North C.V. Waterfront L.P.'s request for a variance from the City's Balanced Communities Policy based on the findings herein. Section VI. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section VII. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section VIII. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section IX. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as to form by Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services City Attorney RESOLUTION NO. 2018- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OPPOSING POLICIES WHICH SEPARATE, AND SUPPORTING NON-CRIMINAL PROCESSING OF, IMMIGRANT FAMILIES; AND CALLING ON THE U.S. GOVERNMENT TO IMMEDIATELY REUNITE FAMILIES SEPARATED AT THE BORDER WHEREAS, the U.S. government recently ended an immigration enforcement policy that resulted in the separation of more than 2,000 minors from their families; and WHEREAS, an unknown number of minors still remain separated from their families or guardians; and WHEREAS, the City of Chula Vista is a community that values humanity, and believes that all human beings have inalienable rights, regardless of their country of origin; and WHEREAS, the City of Chula Vista has a rich cultural heritage including contributions from immigrants around the world; and WHEREAS, the City of Chula Vista is a member of the Welcoming America Network and is applying to become a Certified Welcoming City; and WHEREAS, according to the U.S. Census Bureau, as of July 1, 2017 the population of the City of Chula Vista is estimated to be 31% foreign-born; and WHEREAS, the U.S. State Department's "Trafficking in Persons Report 2018" concludes: "Removal of a child from the family should only be considered as a temporary, last resort. Studies have found that both private and government-run residential institutions for children, or places such as orphanages and psychiatric wards that do not offer a family-based setting, cannot replicate the emotional companionship and attention found in family environments that are prerequisites to healthy cognitive development"; and WHEREAS, a policy that forcibly separates immigrant families fuels the climate of fear experienced by many immigrants and refugees, causing them to avoid reporting crime to law enforcement agencies, thus making it more difficult to solve crimes; and WHEREAS, separating children from families, especially when the family is merely invoking their right to seek asylum in the U.S., is inconsistent with the values of the city of Chula Vista; and WHEREAS, the Chula Vista City Council believes it has an obligation to take a stand against government actions that it believes are immoral and inhumane; and WHEREAS, the City of Chula Vista Human Relations Commission has asked the City Council to consider taking actions to oppose policies resulting in the separation of immigrant children from their families, to support non-criminal processing of immigrant families, and support actions or policies that expedite reunification; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does as follows: 1. Opposes policies resulting in separation of immigrant children from their familes. 2. Supports non-criminal processing of immigrant families. 3. Calls on the United States government to immediately reunite families separated at the U.S. border with Mexico, especially in cases where the family is exercising its right to apply for asylum, or in cases when the only offense committed is crossing the border illegally. 4. Directs the Mayor toforward this resolution to U.S. Representatives Susan Davis and Juan Vargas, U.S. Senators Kamala Harris and Dianne Feinstein, U.S. Attorney General Jeff Sessions, and President Donald Trump. Presented by Approved as to form Mary Casillas Salas, Mayor Glen R. Googins, City Attorney Patricia Aguilar, City Councilmember Sheree Kansas From: Kevin Sent: Monday,July 02, 2018 8:39 AM To: Patricia Aguilar Cc: John McCann; Steve C. Padilla; Mike Diaz Subject: Illegal Immigration TO: Pat Aguilar, and the rest of the CV City Council THIS IS WHAT YOU SHOULD BE CONSIDERING CONCERNING ILLEGAL IMMIGRATION YOU SOCIOPATH COMMUNIST SUBVERSIVE! AFTER I READ THE STAR NEWS AND WHAT YOU WANT! Missouri has no illegals; go figure... shouldn't the other states do the same? Missouri's approach to the problem of illegal immigration appears to be more advanced, sophisticated, strict and effective than anything to date in Arizona . Does the White House appreciate what Missouri has done?So, why doesn't Missouri receive attention?Answer:There are no illegals in Missouri to demonstrate. (And the Media doesn't want to publicize that fact!) The "Show Me" state has again shown us how it should be done. There needs to be more publicity and exposure regarding what Missouri has done. Please pass this around. In 2007, Missouri placed on the ballot a proposed constitutional amendment designating English as the official,. language of Missouri In November, 2008, nearly 90%voted in favor! Thus, English became the official language for ALL governmental activity in Missouri . No individual has the right to demand government services in a language OTHER than English. In 2008, a measure was passed that required the Missouri Highway Patrol and other law enforcement officials to verify the immigration status of any person arrested, and inform federal authorities if the person is found to be in Missouri illegally. Missouri law enforcement officers receive specific training with respect to enforcement of federal immigration laws. In Missouri, illegal immigrants.do NOT have access to taxpayer benefits such as food stamps or health care through Missouri Health NET. In 2009, a measure was passed that ensures Missouri 's public institutions of higher education do NOT award financial aid to individuals who are illegally in the United States . In Missouri all post-secondary institutions of higher education are required to annually certify to the Missouri Dept. of Higher Education that they have NOT knowingly awarded financial aid to students who are unlawfully present in the United States . It is important to remember, Missouri has been far more proactive in addressing this horrific problem. Missouri has made it clear that illegal immigrants are NOT WELCOME in the state and they will NOT receive public benefits at the expense of Missouri taxpayers. DON'T DELETE THIS,AMERICA . KEEP IT GOING UNTIL WE GET ALL 50 STATES TO COMPLY! i Taken from: "The Ozarks Sentinel" Editorial - P.S. Keep your parasite leftist sociopath lawless protestors out of my neighborhood! Kevin Hancock 30 year Chula Vista Resident! 2 14w �1 r GO` fi Gomm- RESOLUTION NO. 2018- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CALLING ON THE U.S. GOVERNMENT TO IMMEDIATELY REUNITE FAMILIES SEPARATED AT THE BORDER WHEREAS, the U.S. goverrunent recently ended an irn migration enforcement policy that resulted in the separation of more than 2,000 milnors from their families; and WHEREAS,c unkfflOwa stiliY-emiain separated ffem t if familitas - guffdiapz ;; and WHEREAS,despite the President's recent Executive Order, families remain separated. and the"zero tolerance"policy,which criminalizes all migrants who attempt to-cross the of border and denies asylum-seekers and other immigrants their rights to due process, continues; and WHEREAS,despite a lack of transparency,there are multiple reports of immigrant detainees being held inn,inhumane conditions at detention facilities; and WHEREAS,we acknowledge our country's history of disgraceful and inhumane immigration laws and policies including: the declaration of some human as slaves who were regarded as inherently"less than"others in our Constitution; the forced relocations and decimation of Native American Peoples and cultures; the rejection of Jewish refugees who were refused entry to the U.S. during WWII and later killed in Nazi Concentration Camps; and the internment of Japanese-American families which caused irreparable harm to families and children, many-from our South Bay community; and WHEREAS,more recently,many of our community members and leaders have lifted their voices in righteous moral opposition to the separation of families and the detention of thousands of children, and Are calling for their release from detention and declaring that family detention is.not the solution to family separation; and WHEREAS,the City of Chula Vista is.a community that values humanity, and believes that all human beings haverights, regardless of their country of origin; and WHEREAS,the City of Chula Vista has a rich cultural heritage including contributions from immigrants around the world; and WHEREAS,according to the U.S. Census Bureau, as of July 1;2017 the population of the City of Chula Vista is estimated to be 31%foreign-born; and WHEREAS, the City of Chula Vista is a member of tine Welcoming America Network and is applying to become a Certified Welcoming City-,and WHEREAS,the City of Chula Vista confirms its support'for the.California Values Act (SB 54)and a"clean"DREAM.Act; and WHEREAS. aeeofding le the U.S. C-eflsus i he Ott of�,, t Vista s stip fated to boor-ejg�-barn-�t-1-[MOVED UP] I j Resolution No. 2018-Page No. 2 WHEREAS, the practice of punishing innocent children and disrupting families as an attempted deterrent to immigration is a human rights abuse and these practices deprive both parent and child of reasonable due process; and WHEREAS,the U.S. State Department's "Trafficking in Persons Report 2018" concludes: "Removal ofa child.fi•om the family should only be considered as a temporary, last resort. Studies have_found that both,private and government-run residential institutions for children, or places such as orphanage's and psychiatric}yards that do not offer a family-based setting,.cannot replicate the emotional companionship and attention found in_family environments that are prerequisites to healthy cognitive development"; and WHEREAS, the United Nations has called for an immediate halt to the practice of separating families entering the United States, claiming that the practice violates their rights as well as international law; and WHEREAS, a policy that forcibly separates immigrant families fuels the climate of fear experienced by many immigrants and refugees, causing them to avoid reporting crime to law enforcement agencies, thus making it more difficult to solve crimes; and WHEREAS, separating children from families, especially when the family is merely invoking their right to seek asylum in the U.S., is inconsistent with the values of the City of Chula Vista; and WHEREAS,the Chula Vista City Council believes it has an obligation to take a stand against government actions that are immoral and inhumane; and WHEREAS,the City of Chula Vista Human Relations Commission has asked the City Council to consider.taking actions to oppose policies resulting in the separation of innmigrant children from their families, to support non-criminal processing of immigrant families, and support actions or policies that.expedite reunification. NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of Chula does as follows: I. Declare its opposition to the current administration's "zero tolerance"policy and call Eatls on the United States government to immediately reunite families separated at the U.S. border with Mexico, especially in cases where the family is exercising.its right to apply for asylum, or in cases when the only offense committed is crossing the border illegally. 2. Direct the Mayor to forward a copy of this resolution to California's representatives of the United States Senate, the United States House of Representatives, Senate Majority Leader Mitch McConnell, House Speaker Paul Ryan, Attorney General Jeff Sessions, and President Donald Trump; our city's State Assembly and Senate representatives;the members of the San Diego County Board of Supervisors; and the mayors and city managers of the cities within San Diego County.-Beets-the " Resolution No. 2018-Page No. 3 to U.S. R6pr-esentatik,es Su§an Davis and Juan Vafgas, Se at . v., al Har-fis „a$i--ro Feinstein, U.S Aitofney Genefal jeff S Presented by Approved as to form AYES: Councilmembers: *** NAYS: Councilmembers: *** ABSENT: Councilmembers: ** ATTEST: Kerry K. Bigelow, MMC, City Clerk STATE OF CALIFORNIA) COUNTY OF SAN.DIEGO) CITY OF CHULA VISTA ) Mary Casillas Salas,Mayor Resolution No. 2018- Page No. 3 Mary Casillas Salas,Mayor Glen R. Googins, City Attorney Patricia Aguilar, City Councilmember PASSED, APPROVED, and.ADOPTED by the City Council of the City of Chula Vista, California, this 10th day of July 2018 by the following vote: I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2018-*** was duly passed, approved,and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 10th day of July 2018. Executed this 10th day of July 2018. Kerry K.Bigelow,MMC, City Cleric I