HomeMy WebLinkAboutReso 2018-161RESOLUTION NO. 2018-161
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A DEVELOPMENT IMPACT
FEE CREDIT ACCOUNTING AGREEMENT WITH BALDWIN
& SONS, LLC. RELATING TO THE CONSTRUCTION OF A
PORTION OF HERITAGE ROAD
WHEREAS, as a condition of development, Baldwin & Sons, LLC. (Developer) is
obligated to construct a portion of Heritage Road as required in the “Supplemental Subdivision
Improvement Agreement for the Otay Ranch Village 2 & Portions of Village 4 ‘A’ Map,” whic h
was recorded May 26, 2006, as Document No. 2006-0375301, of Official Records of the San
Diego County Recorder (the “2006 SSIA”); and
WHEREAS, as a condition of development, Developer is obligated to enter into an
agreement to design, construct, and secure full street improvements for a portion of Heritage
Road as required by Mitigation Measure 5.10-6 in the “Final Second Tier Environmental Impact
Report for Otay Ranch Villages Two, Three, and a Portion of Village Four Sectional Planning
Area Plan,” dated May 5, 2006, as Second Tier EIR 02-02/SCH No. 2003091012; and
WHEREAS, Developer agreed to construct half the width (two, striped one -way lanes) of
Heritage Road from Santa Victoria Road to Main Street as required in the “Development
Agreement for Otay Ranch Village of Montecito Sectional Planning Area Plan (Otay Ranch
Village 2),” which was recorded December 10, 2014, as Document No. 2014-0543535, of
Official Records of the San Diego County Recorder (the “Development Agreement”); and
WHEREAS, Developer further agreed to build a segment of Heritage Road as given in
the “Supplemental Subdivision Improvement Agreement for the Otay Ranch Village 2 South ‘A’
Map” which was recorded June 22, 2016, as Document No. 2016-0309513, of Official Records
of the San Diego County Recorder (the “2016 SSIA”); and
WHEREAS, Chapter 3.54 of the Chula Vista Municipal Code (CVMC) governs City’s
Transportation Development Impact Fee (TDIF) and CVMC §3.54.040 sets forth the process
whereby a developer may post a bond to construct a TDIF road and receive a fifty (50) percent
TDIF credit to use for the payment of TDIF building permit fees; and
WHEREAS, Developer posted two bonds to construct Heritage Road from Santa Liza
Road to Main Street, in the amount of $12,108,846, and received fifty (50) percent TDIF credit
($6,054,423) based on the estimated cost of grading and constructing said segment of Heritage
Road; and
WHEREAS, Developer posted a bond and solicited bids to construct half of the width of
Heritage Road from Olympic Parkway to Santa Victoria Road and received seventy-five (75)
percent TDIF credit based on the apparent low bid cost of constructing said segment of Heritage
Road (additional credit award of $81,057.89, resulting in a total credit award of $652,442.21 for
Heritage Road North Phase 1); and
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Resolution No. 2018-161
Page No. 2
WHEREAS, the owner of Otay Ranch Village 3 has subsequently agreed to build a
portion of the same segment of Heritage Road, northward from Main Street and adjacent to Otay
Ranch Village 3 resulting in duplicate bonding for this portion of Heritage Road, and as a result,
the fifty (50) percent TDIF credit the Developer has received for said segment is more than the
Developer is entitled to, necessitating a reduction in the previously awarded TDIF credit by the
“Existing TDIF Deficit” amount; and
WHEREAS, the Developer will be eligible for a one hundred (100) percent TDIF credit
for constructing the segment of Heritage Road not constructed by the owner of Otay Ranch
Village 3 upon completion of construction and such credit will be in an amount less than or equal
to the “Anticipated TDIF Eligible Cost”; and
WHEREAS, the City and Developer wish to enter into an agreement (Agreement) that
establishes a process by which the progress of constructing the project, thereby earning TDIF
credits, can be tracked against the allocation of TDIF credits for the issuance of building permits
in Otay Ranch Village 2 so that the use of TDIF Credits is no greater than the “Anticipated TDIF
Eligible Cost” (Agreement Exhibit “B” Table 1).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it hereby approves the Development Impact Fee Credit Accounting Agreement
Relating to the Construction of a Portion of Heritage Road, between the City and Baldwin &
Sons, LLC. in the form presented, with such minor modifications as may be required or approved
by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and
authorizes and directs the Mayor to execute the same.
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Resolution No. 2018-161
Page No. 3
Presented by Approved as to form by
Kelly G. Broughton, FASLA Glen R. Googins
Director of Development Services City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 7th day of August 2018 by the following vote:
AYES: Councilmembers: Aguilar, Diaz, McCann, Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2018-161 was duly passed, approved, and adopted b y the City Council at a
regular meeting of the Chula Vista City Council held on the 7th day of August 2018.
Executed this 7th day of August 2018.
Kerry K. Bigelow, MMC, City Clerk
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