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HomeMy WebLinkAboutReso 2018-173RESOLUTION NO. 2018-173 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A FIRST AMENDMENT TO AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND HOMEFED VILLAGE III MASTER, LLC. FOR CONSTRUCTION OF NEIGHBORHOOD PARK P-1 IN OTAY RANCH VILLAGE 3 AND A PORTION OF COMMUNITY PARK P-2 IN OTAY RANCH VILLAGE 4 AND APPROPRIATING FUNDS THEREFOR WHEREAS, City and HomeFed previously entered into that certain agreement, namely, Agreement Regarding Construction of Neighborhood Park P-1 in Otay Ranch Village 3 and a portion of Community Park P-2 in Otay Ranch Village 4 (Original Agreement) on December 6, 2016; and WHEREAS, City and HomeFed desire to amend the Original Agreement (First Amendment) to allow for the contribution of additional funds to supplement the Neighborhood Park P-1 budget; and WHEREAS, pursuant to the Original Agreement, the Neighborhood Park Budget for Neighborhood Park P-1 is based upon the proportional ratio of neighborhood parkland acres required for Village 3, assuming the Development portion of the City’s current Parkland Acquisition and Development Fee as the budget per acre; and WHEREAS, the City and HomeFed agree that construction costs have recently increased significantly, including, but not limited to labor and materials; and WHEREAS, applying the Development portion of the City’s current Parkland Acquisition and Development Fee results in a budget shortfall for Neighborhood Park P -1 of one million dollars ($1,000,000.00), assuming a prototypical park design; and WHEREAS, the City and HomeFed agree to each contribute matching fund amounts, up to but not to exceed five hundred thousand dollars ($500,000.00) each for a combined total not to exceed one million dollars ($1,000,000.00), in addition to the Development Fees pursuant to the Original Agreement to cover only those costs needed to construct the park amenities included in Exhibit F of the First Amendment; and WHEREAS, pursuant to Resolution 2006-191, the City has collected funds from the Eastlake III Senior Project (Olympic Pointe) which may be utilized on any park or public facility serving the Eastern Territories of Chula Vista (the “Olympic Pointe Park Funds”); and WHEREAS, the City Council desires to contribute five hundred thousand dollars ($500,000.00) of the Olympic Pointe Park Funds toward the Neighborhood Park P-1 budget; and DocuSign Envelope ID: F5462CA4-F265-4E9F-8177-CD1323C6EE22 Resolution No. 2018-173 Page No. 2 WHEREAS, the City and HomeFed agree that HomeFed’s additional contribution of $500,000.00 is in excess of their fee obligation pursuant to the City’s Parkland Acquisition and Fee Program and is not eligible for credit against said fee program; and WHEREAS, the City and HomeFed agree to utilize the combined additional park funding of up to one million dollars ($1,000,000.00) for the purposes of increasing the Neighborhood Park P-1 budget established by the Development Fees pursuant to the Original Agreement and the First Amendment; and WHEREAS, HomeFed agrees to provide, in “Turnkey” condition (as the term “Turnkey is defined in the Original Agreement), the selected Neighborhood Park P-1 amenities noted on Exhibit F of the First Amendment; and WHEREAS, the City and HomeFed agree to amend Exhibit F if the increase to the Neighborhood Park P-1 budget cannot satisfy, in full, the estimated construction costs for all amenities noted on Exhibit F. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby approves the First Amendment to Agreement between the City of Chula Vista and HomeFed Village III Master, LLC for construction of Neighborhood Park P-1 in Otay Ranch Village 3 and a Portion of Community Park P-2 in Otay Ranch Village 4. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it hereby approves the appropriation of $500,000.00 from the Parkland Acquisition and Development (PAD) fund for the purposes of funding the City’s contribution toward the P-1 Neighborhood Park Budget increase. [SIGNATURES ON FOLLOWING PAGE] DocuSign Envelope ID: F5462CA4-F265-4E9F-8177-CD1323C6EE22 Resolution No. 2018-173 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 14th day of August 2018 by the following vote: AYES: Councilmembers: Aguilar, Diaz, McCann, and Padilla NAYS: Councilmembers: None ABSENT: Councilmembers: Casillas Salas 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. 2018-173 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 14th day of August 2018. Executed this 14th day of August 2018. Kerry K. Bigelow, MMC, City Clerk DocuSign Envelope ID: F5462CA4-F265-4E9F-8177-CD1323C6EE22