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HomeMy WebLinkAboutPlanning Comm Reports/2001/04/25 ACTION AGENDA CITY PLANNING COMMISSION MEETING Chula Vista, California 6:00 p.m Wednesday, April 25, 2001 Council Chambers 276 Fourth Avenue, Chula Vista CALL TO ORDER Present: Chair Thomas, Commissioners Castaneda, Hall, Cortez, Willet, McCain and O'Neil ROLL CAWMOTIONS TO EXCUSE PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE INTRODUCTORY REMARKS ORAL COMMUNICATIONS 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 to day's agenda. Each speaker's presentation may not exceed three minutes. 1. WORKSHOP: East lake III Project Planner: Luis Hernandez, Principal Planner No Action Taken 2. PUBLIC HEARING: Close of public review period for Draft Environmental Impact Report for East lake III EIR. Project Planner: Joan Isaacson, Environmental Planning No Action Taken 3. PUBLIC HEARING: SUPS-01-01; Consideration of an extension of an existing Special Use Permit for the Continuation of an Auto Dismantling and Recycling Business at 800-834 and 825 Energy Way and Resolution _ Recommending that the Redevelopment Agency Board approve the proposed Special Use Permit extension in accordance with the attached draft Agency Resolution based on the findings and subject to the conditions contained therein. Project Planner: Brian Hunter, Planning and Environmental Manager Action: Denied (7-0-0-0) 4. PUBLIC HEARING: Resolution of the Redevelopment Agency of Chula Vista amending the Otay Valley Road Redevelopment Project Procedures Manual Section III B (rules and regulations for the filing and processing of plans and proposals for the redevelopment of the otayValley Road project area, major projects) to add Sub-paragraph 3, Precise Plan Projects, and amending the Otay Valley Road Project Area Implementation Plan/Design Manual addendum to add Section 5.3(5), allowing for the administrative approval of designs and owner participation agreements within agency approved Precise Plan Developments. Planning Commission - 2 - April 25, 2001 Project Planner: Patricia Beard, Sr. Community Development Specialist Action: Approved (7-0-0-0) 5. PUBLIC HEARING: PCC-01-07; Appeal of Conditional Use Permit to install 4 panel antennas on each of the 4 sides of an existing church building with radio equipment located in the basement, at 940 Hilltop Drive. Staff is recommending that public hearing be continued to a date certain of May 9, 2001. Project Planner: Harold Phelps, Associate Planner Action: Continued (7-0-0-0) DIRECTOR'S REPORT COMMISSIONER COMMENTS: ADJOURNMENT: C:\!v1y Documents\P C ACTION AGENDA4-2S-01 .doc.doc AGENDA CITY PLANNING COMMISSION MEETING Chula Vista, California 6:00 p.m Wednesday, April 25, 2001 Council Chambers 276 Fourth Avenue, Chula Vista CALL TO ORDER ROLL CAWMOTIONS TO EXCUSE PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE INTRODUCTORY REMARKS ORAL COMMUNICATIONS 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. 1. STAFF OVERVIEW: East lake III Project Planner: Luis Hernandez, Principal Planner 2. PUBLIC HEARING: Close of public review period for Draft Environmental Impact Report for East lake III EIR. Project Planner: Joan Isaacson, Environmental Planning 3. PUBLIC HEARING: SUPS-01-01; Consideration of an extension of an existing Special Use Permit for the Continuation of an Auto Dismantling and Recycling Business at 800-834 and 825 Energy Way and Resolution _ Recommending that the Redevelopment Agency Board approve the proposed Special Use Permit extension in accordance with the attached draft Agency Resolution based on the findings and subject to the conditions contained therein. Project Planner: Brian Hunter, Planning and Environmental Manager 4. PUBLIC HEARING: Resolution of the Redevelopment Agency of Chula Vista amending the Otay Valley Road Redevelopment Project Procedures Manual Section III B (rules and regulations for the filing and processing of plans and proposals for the redevelopment of the Otay Valley Road project area, major projects) to add Sub-paragraph 3, Precise Plan Projects, and amending the Otay Valley Road Project Area Implementation PlanlDesign Manual addendum to add Section 5.3(5), allowing for the administrative approval of designs and owner participation agreements within agency approved Precise Plan Developments. Project Planner: Patricia Beard, Sr. Community Development Specialist Planning Commission - 2- April 25, 2001 5. PUBLIC HEARING: PCC-01-07; Appeal of Conditional Use Permit to install 4 panel antennas on each of the 4 sides of an existing church building with radio equipment located in the basement, at 940 Hilltop Drive. Staff is recommending that public hearing be continued to a date certain of May 9, 2001. Project Planner: Harold Phelps, Associate Planner DIRECTOR'S REPORT COMMISSIONER COMMENTS: ADJOURNMENT: COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT The City of Chula Vista, in complying with the American with Disabilities Act (ADA), requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service, request such accommodations at least forty-eight hours in advance for meetings, and five days for scheduled services and activities. Please contact Diana Vargas for specific information at (619) 691-5101 or Telecommunications Devices for the Deaf (TOO) at 585- 5647. California Relay Service is also available for the hearing impaired. PLANNING COMMISSION AGENDA STATEMENT Item .3 Meeting Date 04/25/01 PUBLIC HEARING: Consideration of an extension of an existing Special Use Permit for the Continuation of an Auto Dismantling and Recycling Business at 800-834 and 825 Energy Way and Resolution_Recommending that the Redevelopment Agency Board approve the proposed Special Use Permit extension in accordance with the attached draft Agency Resolution based on the findings and subject to the conditions contained therein. The project is the continuation of an existing use, Conditional Use Permit #PCC-73-27, effective date December 12, 1973, for automotive dismantling and the sale of auto parts, and scrap metal collection, compaction, cutting, shredding in preparation for the scrap market, and other related uses. The project was approved by the Redevelopment Agency for a thirteen year extension on December 8, 1992 which moved the expiration date of the Permit until 2005. On November 10, 2000 staff received an application for an extension of this permit until 2025. The Planning and Environmentai Manager for the Community Development Department has determined that no new environmental impacts that have not been previously addressed will occur, and the project is consistent with the previous environmental review. RECOMMENDATION: Adopt attached Resolution _ recommending that the Redevelopment Agency approve the proposed Special Use Permit Extension in accordance with the attached draft Redevelopment Agency Board Resolution based on the findings and subject to the conditions contained therein. DISCUSSION: 1. Site and Proiect Characteristics The proposed project is an extension of the existing Special Use Permit for the existing automotive recycling facilities located at 800-834 and 825 Energy Way, doing business as Ecology Auto Wrecking, Inc.. The site's discretionary history for this use goes back to Conditional Use Permit # PCC -73-27, effective date December 12, 1973, which was extended at the direction of a Settlement Agreement relating to the Otay Valley Road widening, entered into by both the City of Chula Vista, the Redevelopment Agency, and the applicant, on December 8, 1992 for a period of 13 years until 2005. Under the terms of the Settlement Agreement the City of Chula Vista was to issue a Special Use Permit (SUP) conditioned only by code required off street parking; landscape planting and irrigation; and fencing and other appropriate comparable cost screening measures to ameliorate adverse visual impacts. The Agreement further states that the applicant is not required to deviate substantially from the plans previously submitted, reviewed, and recommended for approval. The Settlement Agreement, Section III K, indicates that "if at any time between the effective date of this Agreement and December 31, 2017 the City denies a Plaintiff a Special Permit, or other such required permit which may be necessary for the continued use of the Lots for the use identified above upon the conditions herein specified, then such Plaintiff may give the City written notice of the rescission of the Agreement and ... the Action may be recommenced in its entirety..." . 2. General Plan, Zoninq, and Land Use GENERAL PLAN ZONING CURRENT LAND USE Site: Otay Valley Road Auto Recycling Research and Limited Redevelopment (OVR) Industrial IP (Industrial Precise Plan) North: Open Space S80 Otay Disposal Site South: Research and Limited OVRlIP vacant Industrial East OVRlIP Construction Residue RecyclingNehicle Auctions West OVRlIP Auto Recycling/Contractors Yard 3. PropOsal No additional physical construction activities are proposed at this time. Applicant is requesting an extension of their existing Special Use Permit from 2005 until December 12, 2025. 4. Analvsis The benefits to the society as a whole of auto recycling of end life vehicles (EL Vs) is manifested in obvious cost savings in recycled parts, energy conservation, parts availability, reduction in abandoned vehicles and land filling, raw material supply, and reduced insurance rates via reducing costs of repairs and providing a market for totaled vehicles. In addition, Ecology Auto is also an approved location as an authorized State of California and City of Chula Vista oil recycling center. The administration of the "Old Vehicle Buy Back program" for the County of San Diego/Air Pollution Control District occurs here. Annual review by City staff (Community Development and Code Enforcement performed a compliance inspection on May 24, 2000), as well as a complete inspection of the site as part of this permit, indicates this operation sets the standard locally for this use for stormwater filtration, fire suppression measures, as well as hazardous waste extraction, and storage and handling of vehicles. As this permit is an extension of an existing permit that has a history of over 25 years, the project is and has been supported by the Chula Vista General Plan, the Otay Valley Road Redevelopment Plan, and the City's Zoning Ordinance. The existing Settlement Agreement further delineates the City of Chula Vista's responsibility and limits in this area. Community Development staff would like the Planning Commission to consider, in keeping with the project area goal of eliminating visual blight due to incompatible uses, staffs desire to conduct a study of Energy Way uses during the next several months. The five-year implementation plan for the Otay Valley Road Redevelopment Project Area calls for an evaluation of the potential for alternate uses for properties now housing auto wreckers and recyclers prior to the consideration of SUP extensions for those uses. The majority of the SUP's will expire between 2004- 2006. It is recognized in the implementation plan that auto recycling is a necessary and beneficial land use for a region. However, the Agency's goal is to determine whether a portion or all of the properties in this area can be redeveloped to a higher and better use more consistent with the goals of the project area to produce an officenight industrial park. The General Plan and Zoning for this area is Research and Limited Industrial. A feasibility study would include an analysis of the demand for and location of existing auto wreckers/recyclers, perhaps to include a perfonnance standard based on population/demographics, any environmental remediation needed to redevelop the area to light industrial uses and, finally, the market and likely absorption rate in attracting iight industrial uses to the area. Staff believes now is the appropriate time to conduct the study, since this penn it is the first application for extension of the Special Use Pennits issued in the area, and while staff presently recognizes the need for at least one recycler in the area, particularly considering the Settlement Agreement, such a study may provide us with the basis for further discretion during consideration of future extensions. Additionally, the infonnation provided by the study will provide valuable direction for the General Plan update. Conclusion: The proposed land use is supported by the Chula Vista General Plan, the Otay Valley Road Redevelopment Plan, and the City's Zoning Ordinance, as well as the Settlement Agreement between the City of Chula Vista, the Redevelopment Agency, and the applicant. As the Settlement Agreement speaks to a period inclusive of December 31, 2017, staff supports an extension (a little over 12 years from the present expiration date) to this date to meet the tenns and conditions of that agreement, rather than the 20 year period requested by the applicant. Attachments 1. Planning Commission Resolution 2. RedevekJpment Agency Resolution 3. Settlement Agreement (AgOl1cy Resolution 1290ICity Resolution 16924) 4. Location Map RESOLUTION NO. RESOLUTION OF THE CITY OF CHULA VISTA PLANNING COMMISSION RECOMMENDING THAT THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVE THE SPECIAL USE PERMIT EXTENSION UNTIL DECEMBER 31, 2017 FOR ECOLOGY AUTO WRECKING LOCATED AT 800-834 AND 825 ENERGY WAY IN THE CITY OF CHULA VISTA, WHEREAS, on November 11, 2000 Ecology Auto Wrecking, filed an application for an extension of their existing Special Use Permit located at the above address; and, WHEREAS, the Planning and EnvironmentalManager has determined that no new environmental impacts that have not been previously addressed in the previously granted Conditional and Special Use Permits for this use will occur; and, WHEREAS, the Planning Director set the time and place for a hearing on the Special Use Permit extension 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 300 feet of the exterior boundaries of the real property that is the subject of the hearing at least 10 days prior to the hearing; and, WHEREAS, the hearing was held at the time and place as advertised, namely 6;00 p.m., April 25, 2001, in the City Council Chambers, 276 Fourth Avenue, before the Planning Commission and said hearing was thereafter closed; and, NOW, THEREFORE, BE IT RESOLVED THAT THE PLANNING COMMISSION hereby recommends that the Redevelopment Agency of the City of Chula Vista adopt the attached draft Agency Resolution in the forms attached with said minor modification as may be approved by the City Attomey in accordance with the findings and subject to the conditions contained therein. BE IT FURTHER RESOL VED THAT a copy of this resolution be transmitted to the Redevelopment Agency of the City of Chula Vista. PASSED AND APPROVED BY THE PLANNING COMMISSION OF THE CITY OF CHULA VISTA, CALIFORNiA, this 25" day of April, 2001, by the following vote, to wit: RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE EXTENSION OF THE SPECIAL USE PERMIT SUPO-01-01 UNTIL DECEMBER 31, 2017 FOR ECOLOGY AUTO WRECKING LOCATED AT 800-834 AND 825 ENERGY WAY AND DIRECTING STAFF TO PROCEED WITH AN EVALUATION OF THE POTENTIAL FOR ALTERNATE USES FOR PROPERTIES NOW HOUSING AUTO WRECKERS AND REOYCLERS PER THE DIRECTION OF THE ADOPTED FIVE YEAR IMPLEMENTATION PLAN FOR THE OTAY VALLEY ROAD REDEVELOPMENT PLAN WHEREAS, on November 10, 2000 the City of Chula Vista did receive an application for an extension of an existing Special Use Permit, SUPO-01-01 (formerly identified as CPE 53, SLVP 24, and PCC-73-27) until December 12, 2025, and this constitutes a formal application; and WHEREAS, Conditional Use Permit #PCC-73-27, effective date December 12, 1973 originally allowed the automotive recycling facilities located at 800-834 and 825 Energy Way and known as Ecology Auto Wrecking; and WHEREAS, the City of Chula Vista, the Redevelopment Agency of the City of Chula Vista, and the applicant entered into a Settlement Agreement relating to the Otay Valley Road widening on December 8, 1992, which resulted in the immediate extension of the previously mentioned permit until 2005; and WHEREAS, the Settlement Agreement limits the conditions of the Special Use Permit to the following: required off street parking; landscape planting and irrigation; and fencing and other appropriate comparable cost screening measures to ameliorate adverse visual impacts; and WHEREAS, annual review of the project indicates that all conditions of the previously issued permit have been met; and WHEREAS, the Settlement Agreement further indicates that if at any time between the effective date of this Agreement and December 31, 2017 the City denies a Plaintiff a Special Permit, or other such required permit which may be necessary for the continued use of the Lots for the use identified above upon the conditions herein specified, then such Plaintiff may give the City written notice of the rescission of the Agreement and ... the action may be recommenced in its entirety; and WHEREAS, the Otay Valley Road Redevelopment Project Area Implementation Plans 2000-2004, adopted on November 9, 1999, calls for an evaluation of the potential altemate uses for properties now housing auto wreckers and recyclers. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of Chula Vista to direct staff to conduct a study of auto wrecking/recycling uses in the Otay Valley Road Redevelopment Project Area to evaluate .the potential for alternate uses more compatible with the surrounding land uses, to determine environmental or market constraints to redevelopment, and to determine the density of auto wrecking/recycling uses appropriate in the Project Area. BE IT FURTHER RESOLVED that Special Use Permit SUPO-01-01 is hereby APPROVED with an expiration date of December 31, 2017 according to the following findings and subject to the conditions contained herein: FINDINGS 1. That the proposed use at the particular location is necessary or desirable to provide a service or facility which contributes to the general well being of the neighborhood or the community in that the recycling of End Life Vehicles (ELVs) results in cost savings in recycled parts, energy conservation, parts availability, reduction in abandoned vehicles and land filling, raw material supply, and reduced insurance rates via reducing costs of repair and providing a market for totaled vehicles. Ecology Auto Wrecking also acts as an approved oil recycling center. 2. That such use will not, under the circumstances of the particular case, be detrimental to the health safety or general welfare of persons residing or working in the vicinity, or injurious to property or improvements in the vicinity since the land use is considered an interim use, and is regulated for safety and health concerns via local and state agencies, as well as via the conditions of this permit, which speak to adequate offstreet parking, landscaping, and screening of the visual impact. Surrounding land uses include other auto wreckers, the landfill, auto auctioneers, contractors yard, and construction material recycling. 3. That the proposed use will comply with the regulations and conditions specified in the Municipal Code for such use as modified by the Settlement Agreement. 4. That the granting of the special use permit will not adversely affect the General Plan of the City of Chula Vista or the adopted plan of any governmental Agency since the General Plan is Industrial and the Otay Valley Road Redevelopment Implementation Plan recognizes auto wrecking as a transitional use. CONDITIONS 1. Required off street parking shall be maintained in a manner consistent with the Chula Vista Municipal Code. 2. Landscaping and irrigation shall be maintained in a manner consistent with the Landscape manual. 3. Fencing and other appropriate comparable-cost screening measures to ameliorate adverse visual impacts shall be maintained. PRESENTED BY APPROVED AS TO FORM BY Chris Salomone Director of Community Development John M. Kaheny Agency Attorney / I COUNCIL AGENDA STATEMENT REDEVELOPMENT AGENCY AGENDA STATEMENT Item ,) Q.... "6- b Meeting Date: 12/8/92 (Is) Agency Resolution j;) 1 () Approving the Settlement Agreement between the City, Agency and various parcel owners within the Otay Valley Road Widening Assessment District, AD 90-2, and Authorizing the Chairman to execute Same on Behalf of the Agency, and Appropriating the Necessary Funds. City Resolution /61:2 'f Approving the Settlement Agreement between the City, Agency and various parcel owners within the Otay Valley Road Widening Assessment District, AD 90-2, and Authorizing the Mayor to execute Same n ~iff of the City of ChuJa Vista City Attorney Iro ITEM TITLE:~) SUBMITTED BY: Agency: 4/Sths Vote: Yes]LNo Council: 4/Sths Vote: Yes No-X.. On June 23, 1992, by Resolution No. 16643, the City Council formed Assessment District No. 90-02 for the purpose of financing in part a $13.4 million (approximately) project to widen the Otay Valley Road from the 1-805 to a point approximately 2 miles easterly (just before said Road crosses the river bed). Owners of six properties within the Assessment District ("Plaintiffs")!' 1. The two northwesterly lots, to wit: 825 Energy Way (aka AD Nos. 72 and 73, Map 8147 Lot No. 12 and 13), is owned by Charles B. Siroonian, Linda 1. Mandel, Charles D. Pratty II, Louis P. Pratty, and Caroline A. Pratty; The two southwesterly lots, to wit: 820 - 834 Energy Way (aka AD Nos. 80 and 81, Map 8147 Lot Nos. 21 and 22), is owned by Otay Industrial Park (Karl Turecek and Charles Turecek are the general partners of Otay Industrial Park) and under lease to Ecology Auto Wrecking; . The two easterly lots, north and south of Energy Way, to wit: 850-855 Energy Way (aka (continued. ..) siroon.1l3 December 4, 1992 ". A 113 reSiroonian Settlement Page 1 ,-1 -j .".., -........-...- commenced a lawsuit contesting the environmental review over the road widening and protesting that the spread was inappropriately narrow (i.e., that it should be broadened to include more property owners). After months of negotiation, the City Attorney's office and the staff negotiated a relatively complex Settlement Agreement which the Agency and Council are being asked to approve by the attached resolutions. Boards and Commissioners Recommendation: None applicable. The Otay Valley Road Project Area Committee has reviewed and approved for referral to the Agency Board three special permit requests involving the Plaintiff's land use rights. These three special permit requests are the subject of the sUQsequent public hearings. Recommendation: Adopt the attached resolutions approving the attached Settlement Agreement and authorize the Mayor/Chairman to execute same, and appropriating the necessary funds. Discussion: The Proiect The Otay Valley Road Widening Project consists of widening Otay Valley Road, between I-80S and a point approximately 2 miles easterly thereof. The project has been estimated to cost approximately $13.4 million, $5.4 million of which was being contributed through a variety of accounts and funding sources, from the City or the Agency, and the balance of which is being financed from the assessment bonds. Consequence of the Litigation The mere filing of the suit, regardless of the merits of the suit, and projected length of litigation, was impairing our ability to issue bonds contemplated by the assessment district proceedings, which in turn was impairing our ability to finance the construction of the road widening project and jeopardizing a $1.16 million (approximately) SB 300 reimbursement grant 1. (...continued) AD Nos. 74 and 79, Map 8147 Lot Nos. 14 and 20), are owned by Otay Industrial Park, and leased to separate enterprises as follows: Lot 14 is leased to F.I. Willert Contracting for contracting offices and storage of heavy equipment, and Lot 20 is leased to A to Z Enterprises for impounding, storage and dismantling of automobiles. Neither of these lessees are plaintiffs. siroon .113 December 4, 1992 A 113 re Siroonian Settlement Page 2 Q--,! ~) c--> from the State of California used as a partial funding source for the project and an Army Corps of Engineers Section 404 Permit". How the Agreement Operates The agreement consists of "operative provisions" which become effective only after . certain "conditions precedent" occurY The Conditions Precedent In the process of negotiating a settlement, it was discovered that the conditional use permits~' for the Plaintiffs' property have expired and, in fact, one parcel is engaged in a use (to wit: "lien sale of impounded vehicles"--a variant of "auto auctions") which is not an authorized use in "I-p"1' zones. The continued entitlement of the property owners to engage in the uses that they have historically been engaging in was a key factor in determining their willingness to settle on the "operative provisions" . Therefore, there are four "conditions precedent" to the Agreement: Conditions Precedent Nos 1 - 3: Ecology, A - Z Enterprises and F.J. Willerts Contracting have to apply for special permits to engage in their existing uses. While the City is not required to grant these special permits, if they are granted on terms no more onerous than certain specified terms, the "condition precedent" has been met, and if all other conditions precedent are similarly met, the "operative provisions" of the Settlement Agreement go into effect. If the special permits are not granted, the "operative provisions" do not go into effect and the matter will proceed to trial in approximately two months. Condition Precedent No 4: 2. This is a permit to perform construction work in a wetland which was due to expire on January 13, 1993. 3. This structure was necessary because it is inappropriate for the City to become committed by contract to exercise its governmental authority in one manner or another. 4. Conditional Use .Permits within a Redevelopment Project Area are referred to as "Special Permits", but the terms are interchangeable and refer to the same land use regulatory device. 5. 'T'ndustrial, with development permitted only by advance approval of a "P"recise Plan. siroon.l13 December 4, 1992 A1l3 re Siroonian Settlement Page 3 ~~3 ~ ., '~-'-"..-'- The fourth condition precedent is that the City initiate, by the commencement of an initial study~/, a zone text change which would allow the land use: "lien sale of impounded vehicles" to be conducted in an I-P zone. The Plaintiffs have already made the required special permit applications, which were scheduled before the Project Area Committee on December 7 and the Redevelopment Agency on December 8 coincident with, but prior to, the scheduling of this Settlement Agreement approval. Status of Conditions Precedent Therefore, . holding the subsequent public hearings and adoption of the three Agency Resolutions granting the Special Permits, in the form presented, will constitute satisfaction of the Conditions Precedent Nos. 1 through 3. Because of this .. conditional" contract structure, approval of this agreement does not oblige the City to approve the Special Permits. Further, if the Council does not approve the Settlement Agreement, staff will request deferral of the Special Permit Applications. As in Condition Precedent No.4, the Planning Department, at the request of Agency staff, has already initiated the zone text change, which will eventually be brought to you for amendment of the Zoning Code. The Operative Provisions If the special permits are granted, and the City initiates the zone text change amendment (completion of which could take 4-6 months), the suit will settle as follows: 1. Loans and Amounts. The City will loan the Plaintiffs $140,336.75, based on the following lot ownerships, the proceeds of which are to be paid into the Assessment District to the credit of and to reduce the final confirmed assessment of the designated Plaintiffs. 6. The first step in the process of environmental review under CEQA. siroon.ll3 December 4, 1992 A 113 re .siroonian Settlement Page 4 JrLf Lot of Parcel MaD 8147 Assess- ment No. Final Con- firmed Ass- essment Unpaid Assessment Assessment Prepayment Prepay- ment Amount Note to Ecology Auto Wrecking for North and South Parcels: 12 13 72 $96,323.00 $61,691.85 $34,631.15 $33,101.34 73 $97,445.00 62,410.59 $35.034.41 $33.486.80 Total North Parcels: $69.665.56 $66.588.14 80 $79,303.00 50,790.96 $28,512.04 $27,252.54 81 $69,951.00 44,801.46 $25.149.54 $24.038.58 Total South Parcels: $53.661.58 ~51.291.11 21 22 Note to Otay Industrial Park for North East Parcel: 14 74 $78,123.00 $62,171.01 $15,951.99 $15,247.33 Note to Otay Industrial Park for South East Parcel: 20 79 $71,032.00 Total East Parcels: 63,488.70 7.543.30 $23.495.29 $ 7.210.16 $22.457.49 Total Loan Amounts: $140.336.75 2. Theory of Settlement The loans will have the effect of deferring the affected property owners assessment rate from, on average, about 46.5 cents per square foot to 27.5 cents per square foot until the property is substantially redeveloped, at which time the property owners will bear their full share of the assessment immediately by commencing a repayment of the loan, due in full by the 25th year from now. In essence, the settlement is an attempt to defer a portion of the assessment until the property is redeveloped to such an economic utility to the landowners that it can afford to pay the higher assessment. 3. Security for the Loans. follows: Those loans will be secured by Deeds of Trust against four of the six parcels as The North Parcel Loan (Lots 12 and 13, aka Parcels 72 and 73), in the amount siroon .113 December 4, 1992 Al13 re Siroonian Settlement Page 5 j~5 of $66,588.14, will be secured by Parcels 72 and 73. The other two loans, i.e., the South Parcel Loans (Lots 21 and 22, aka Parcels 80 and 81) and the East Parcel Loans (Lots 14 and 20, aka Parcels 74 and 79) will both be secured just by Parcels 80 and 8J.11 The City will be required to subordinate the Deeds of Trust, but not to a point that will jeopardize the value of our security. That is, we will not have to subordinate to any loan that will cause our position to be greater than an 80% loan to value ratio. 4. Other Loan Terms--No Interest. The terms of the loans are as follows: There will be no interest, but commencement of repayment of the principal will be required as follows: , If the Due Date (December 31, 2017) occurs before the Repayment Trigger occurs, then the Note is due and payable in full on the Due Date. Otherwise, commencing on the first day of the next succeeding month after the date on which the Repayment Trigger occurs, the Note shall be payable in equal monthly installments in an amount that will result in the complete satisfaction of the Note by the Due Date, or 10 years, whichever is less. If the payment commencement date is more than ten (10) years before the Due Date, then the Note shall have a term of ten (10) years repaid on the sooner of 25 years or when there is a substantial improvement in the property. A substantial improvement in the property is defined to be an improvement in a single instance of over $500,000 or in cumulative instances of greater than $1 million (exclusive of the improvements required by the special permit). 5. Set Aside Rights: There are four set aside rights in the Agreement. The set aside rights will permit the Plaintiffs to set aside the Agreement (and the consequent duty to drop the litigation) in only four circumstances and then will only entitle them to damages if (1) they return the consideration given by the City and (2) return any Special Permits received, (3) are successful in their lawsuit and even then their remedy will be limited merely to damages in the amount of the then present value of the remaining amount of the assessment against their property at the time their set aside 7. Note that, due to private business reasons of the Plaintiff, Otay Industrial Park, there is a shift between the seCurity for repayment (The South Parcels) and the trigger that may accelerate repayment, which may occur on either the South Parcels or the East Parcels. Note that the East Parcels are under lease to two separate tenants, but are both owned by Otay Industrial Park. siroon.ll3 December 4, 1992 All3 re Siroonian Settlement Page 6 j-b right is exercised.~' The set aside rights exist in the following circumstances: A. The agreement is collaterally attacked and voided by a third party (paragraph J). B. If at the end of 13 years, their special permits are not renewed on the same terms and conditions (paragraph K). C. The lien sale of impounded vehicles zone text change does not come to fruition (this set aside right only applies to the Plaintiff of Lot 20 - maximum risk $7,210.16) (Paragraph K 1/2). D. The issuance of the Special Permits 'are collaterally attacked. (Paragraph DD). Once again, even if the set aside rights are exercised at all, the Plaintiffs will not be able to have, as a remedy, the dissolution of the Assessment District 90-2. They have agreed to be limited to damages, and then, only in the amount of the then present value of the amount of the impressed assessment, and then, only if they return the loan proceeds, special permits and attorney fees, and then, only if they prevail on their theory in court. 6. Dismissal of Action Of course, the Agreement requires the dismissal of the pending action, without prejudice, but then only with the right of reinstituting same if a set aside right matures. The Agreement requires Plaintiff to not contest the formation of the Assessment District in any way. 7. Attorneys' Fees Payment The Agreement also proposes to compensate Ecology Auto Wrecking $32,500 in attorneys' fees incurred by Ecology in both the administrative and legal process. Ecology has provided documentation showing that they have incurred greater than this amount of money and the attorneys for Plaintiffs were instrumental in helping to achieve the Settlement Agreement. Furthermore, if there is any set aside of the Settlement Agreement, the rescinding Plaintiffs have to compensate the City the $32,500 back before they are entitled to commence suit regardless of whether it is rescinded by Ecology or not. Policy AS!JeCts of the Settlement: 8. This remedy will diminish over the duration of the 25 years because of the reducing assessment amount. siroon.1l3 December 4, 1992 All3 reO Siroonian Settlement Page 7 3 ~7 1. The Settlement Agreement does not abdicate selective assessments against property owners. The assessments remain the same as have been uniformly imposed against all property owners within the assessment district. The Agency is merely loaning some of the money with which to pay the assessment against the protesting Plaintiffs, funds which will be returned to the City when the property is more fully utilized or in 25 years from now, whichever occurs first. 2. Because of the limitation on remedies to damages, the Settlement Agreement will permit the sale of bonds to occur without fear by the underwriters or bondholders that the formation of the assessment district can be undone. FISCAL IMPACT: Source of Funds: This settlement will have an immediate cash impact on the City of $0, and on the Agency of $172,836.75; $100,000.00 of which staff proposes that the Agency appropriate from Account No. 996-9960-ST123 (balance of an Agency Loan Receivable from the City for City's Purchase of a Mitigation Site); and $72,836.75 of which staff proposes that the Agency appropriate from revenues the Agency expects to receive from the Agency's sale of the Right of Way to the Assessment District, 90-2. Use of Funds: The $172,836.75 will be spent as follows: 1. $32,500 in attorney fees will be paid to Ecology Auto Wrecking in 30 days after the Operative Provisions become effective. 2. $140,336.75 will be loaned without interest to Ecology and Otay Industrial Park which will be repaid to the Agency at the time of redevelopment of the sites, but not beyond 25 years from now (2017). The net present value cost of the transaction to the Agency, in the worst case scenario (assuming no redevelopment for 25 years of any of the sites), assuming money is worth 7%, is $ 2/ 9. This calculation will be performed and Council/ Agency will be advised at the meeting. The author estimates that it will be approximately $140,000 due to the recovery over time of the loaned proceeds. siroon .113 December 4, 1992 A1l3 re Siroonian Settlement Page 8 3 -f SETTLEMENT AGREEMENT This Settlement Agreement ("Agreement") is dated as of November 25, 1992 and is effective as of the date last executed by the parties, by and between, on the one hand, THE CITY OF CHULA VISTA, a municipal corporation; ("THE CITY"); the REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ("Agency"); and, on the other hand, CHARLES B. SIROONIAN, an individual, LINDA L. MANDEL, an individual, CHARLES D. PRATTY II, an individual, LOUIS P. PRATTY, an individual, CAROLINE A. PRATTY, an individual, OTAY INDUSTRIAL PARK, a California general partnership, KARL TURECEK and CHARLES TURECEK, general partners of OTAY INDUSTRIAL PARK; and ECOLOGY AUTO WRECKING, a California corporation, ("Plain- tiffs") with reference to the following: I. RECITALS 1. Plaintiffs warrant and represent to the City that they have the interest in certain properties within the City of Chula vista described as follows: a. North Parcels. AD Parcels 72 and 73. CHARLES B. SIROONIAN, LINDA L. MANDEL, CHARLES D. PRATTY II, LOUIS P. PRATTY, and CAROLINE A. PRATTY (herein, "Individual Plaintiffs") now own and have at all times relevant herein owned as tenants in common that certain property known as Lots 12 and 13 of Otay Industrial Park according to Map thereof 8147, filed in the office of the County Recorder of San Diego County, July 18, 1975. Such property is Assessor's Parcel Nos. 644-182-01 and 02 and its street address is 825 Energy Way, Chula Vista, California. By the assessment proceeding identified herein below THE CITY purported to establish Otay Valley Road Assessment District No. 90-2 ("AD 90-2") wherein Lot 12 is identified as Assessment No. 72 and Lot 13 is identified as Assessment No. 73. (Herein, "Parcels 72 and 73"; or "the North Parcels.") b. South Parcels. AD Parcels 80 and 81. ECOLOGY AUTO WRECKING is and has at all times relevant herein been the lessee under the Lease Agreement of February 1, 1988 with Lessor, OTAY INDUSTRIAL PARK, of that certain property identi- fied as Lots 21 and 22 of the Otay Industrial Park according to Map thereof 8147, filed in the office of the County Recorder of San Diego County, July 18, 1975. Such property is Assessor's Parcel Nos. 644-182-11 and 644-182-12 and its street address is 820-834 Energy Way, Chula Vista, California. OTAY INDUSTRIAL PARK is now and has at all times relevant herein been a California general partnership whose general partners are Petitioners/Plaintiffs KARL TURECEK and CHARLES siroon9.wp November 25, Settlement Agreement re Otay Valley Road Widening 1992 1 Page 1 '?_a '-') / -.-.-....-.-,.,.--.+ ,. TURECEK. (Herein, jointly "OTAY.") OTAY is now and has at all times herein been the owner of Lots 21 and 22. By AD 90-2, THE CITY purported to establish an assessment district wherein Lot 21 is identified as Assessment No. 80 and Lot 22 is identified as Assessment No. 81. (Herein, "Parcels 80 and 81"i or "the South Parcels.") c. East Parcels. AD Parcels 74 and 79. OTAY now owns and has at all times relevant herein owned that certain property known as Lots 14 and 20 of the Otay Industrial Park. Such property is Assessor's Parcel Nos. 644-182-03 and 644-182-10 and its street address is 855 and 850 Energy Way, Chula Vista, California. By AD 90-2 THE CITY purported to establish an assessment district wherein Lot 14 is identified as Assessment No. 74 and Lot 20 is identified as Assessment No. 79. (Herein, "Parcels 74 and 79"; or "the East Parcels". ) 2. Current Entitlements. The land use designation of the above-described 6 lots under the Chula vista General Plan is "Research and Limited Manufactur- ing," and the designation of such lots under the Otay Valley Road Redevelopment Plan, is "Limited Industrial/Research". Consistent with such plans, the zoning classification of such properties is "IP-General Industrial Precise Plan." Appropriate permits con- sistent with these zoning and land use designations have been issued, and development on the properties has proceeded consis- tent with those permits. Specifically, Parcels 72 and 73, Par- cels 74 and 79, and Parcels 80 and 81 have been dedicated to and improved with the uses authorized and permitted by Conditional Use Permit #PCC-73-27 ("C.U.P.") The C.U.P. was effective December 12, 1973 and continued by its terms to July 1, 1986. 3. Formation of Assessment District 90-2; Julv 23 Meetinq. On or about July 23, 1991, THE CITY, through its City Council, adopted the following Resolutions in furtherance of formation of AD 90-2: (a) Resolution 16274 making appointments in Assessment District No. 90-2 (Otay Valley Road). (b) Resolution 16275 Adopting a map showing the proposed boundaries of Assessment District No. 90-2 (Otay Valley Road) . (c) Resolution 16276 Approving a proposed resplution of intention and requesting consent and jurisdiction for Assessment District 90-2 (Otay Valley Road) . 4. Formation of AD 90-2; April 21 Meetinq. On or about April 21, 1992, THE CITY, through its city Council, adopted the following resolutions in furtherance of formation of AD 90-2: (a) Resolution 16599 of the City Council of the City of siroon9.wp Settlement Agreement re Otay Valley Road Widening November 25, 1992 2 Page 2 /).-/eJ ,-') Chula Vista certifying the Final Environmental Impact Report and Addendum thereto on the Otay Valley Road Widening Project (EIR 89-01), SCH #89083004. (b) Resolution 16600 of the City Council of the city of Chula Vista adopting map showing amended boundaries of Assessment District No. 90-2 (Otay Valley Road). (c) Resolution 16601 of the City Council of the city of Chula vista declaring intention to order the installation of certain improvements in a proposed assessment district; declaring the work to be of more than local or ordinary benefit; describing the district to be assessed to pay the costs and expenses thereof; and providing for the issuance of bonds for Assessment District No. 90-2 (Otay Valley Road). (d) Resolution 16602 of the City Council of the City of Chula vista passing on the "report" of the Engineer, giving preliminary approval, and setting a time and place for the public hearing in Assessment District No. 90-2 (Otay Valley Road). 5. Formation of AD 90-2; June 23 Meetinq. On or about June 23, 1992, THE CITY, through its City Council, formed and established AD 90-2 upon the adoption of the following resolutions: (a) Resolution 16639 Approving agreement for execution in Assessment District No. 90-2 (Otay Valley Road) and authorizing the Mayor to sign said agreements. (b) Resolution 16641 Ordering certain changes and modifications to the Engineer's Report in Assessment District No. 90-2 (otay Valley Road). (c) Resolution 16642 Overruling and denying protests and making certain finding in Assessment District No. 90-2 (Otay Valley Road). (d) Resolution 16643 Confirming the assessment, ordering the improvements made, together with appurtenances, approving the Engineer's Report, making CEQA findings, and adopting a statement of Overriding Considerations and a Mitigation Monitoring Plan regarding Assessment District No. 90-2 (Otay Valley Road). 6. Environmental Findinqs. Resolution Nos. 16599 and 16643 purport to set forth and contain the findings and determinations required by the California Environmental Quality Act ("CEQA" [!i 21000 et seq. of the Pub. Res. Code]) and by the Guidelines for Implementation of CEQA (14 Cal. Code of Regulations, !i 15000, et seq.), based upon the Final Environmental Impact Report and the Addendum thereto. (Herein, "the EIR.") 7. Claims in Litiqation. On or about July 22, 1992, Plaintiffs instituted Case No. 654274 in the Superior Court of the state of California by filing their petition and complaint. (Herein, "the Action.") Plaintiffs siroon9.wp November 25, Settlement Agreement re Otay Valley Road Widening 1992 3 Page 3 ~j -/ / by the Action allege, among other things, that THE CITY in adopting the foregoing resolutions and in certifying the adequacy of the EIR proceeded without or in excess of jurisdiction; failed to provide Plaintiffs a fair hearing; and abused its discretion. Based thereon, Plaintiffs seek issuance of a peremptory writ of administrative/traditional mandamus directing THE CITY to set aside and revoke the foregoing resolutions and the certification of the adequacy of the EIR; seek a declaration that the foregoing resolutions and EIR are illegal, invalid and void; and seek other relief. THE CITY claims and contends that the foregoing resolutions and the EIR and each and everyone of them are valid, enforceable and consistent with all legal requirements, and that Plaintiffs are entitled to no relief. 8. Settlement Not An Admission of Liabilitv. The parties by this settlement do not admit or acknowledge that the position of the other is correct, but enter into this settlement for the purpose of minimizing their risk; avoiding expensive and protracted litigation; and for the other purposes identified herein. 9. Assessment Imposed on Affected Parcels. THE CITY has determined that the net assessable square footage, credits allocated to and final confirmed assessment levied against each of the Parcels is as follows: Assess- Net Assess- Slope Credit Improvement ment No. able Acreaqe Credit 5.15 $ -0- 5.21 -0- 5.19 18,949 5.30 28,096 4.24 -0- 3.74 -0- 10. General Intent of Aqreement By the foregoing resolutions identified in Recitals 3, 4 and 5 hereto, THE CITY determined to and did levy assessments on all properties within AD 90-2 at the rate of approximately $.4652 per net assessable square foot. The parties have agreed that, in settlement of the Action, the Final Confirmed Assessments for the affected parcels specified in Recital 9 hereto shall be partially prepaid from the proceeds of loans made by the City to the Plaintiffs pursuant to the provisions of this Agreement so that the remaining unpaid assessments against such affected parcels following such prepayment shall be approximately $0.275 per net . , assessable square foot. The partles have further agreed that such loans shall be repaid in accordance with the terms and provisions of this Agreement. 11. city Representations Reqardinq Basis for Calculation for Assessment. THE CITY represents and warrants that the following figures calculated by THE CITY set forth in subparagraph (e) below truly 72 73 74 79 80 81 $ 8,028 8,122 8,090 8,262 6,610 5,830 Final Con- firmed Assessment $ 96,323 97,445 78,123 71,032 79,303 69,951 siroon9.wp November 25, Settlement Agreement re otay Valley Road Widening 1992 4 Page 4 ~~/'~ ~~ ~ and correctly reflect the following as to each Assessment Parcel: (a) the Final Confirmed Assessment is calculated by multiplying the assessment rate of $0.4652 per net assessable square foot by the total net assessable square footage of each of the Assessment Parcels and deducting slope and improvement credits therefrom; (b) the Unpaid Assessment is calculated by multiplying the assessment rate of $0.275 per net assessable square foot times the total net assessable square footage of each Assessment Parcel without further reduction due to slope or improvement credits; (c) the Assessment Prepayment was calculated by deducting the Unpaid Assessment from the Final Confirmed Assessment; and, (d) the Prepayment Amount, i.e., the amount of the loan proceeds applicable to each respective parcel, was calculated by deducting from the Assessment Prepayment the financing costs which would otherwise have been attributable to the Assessment Prepayment had bonds been issued to represent such remainder; (e) Specifically, the following applies: Assess- Final Con- ment No. firmed Ass- essment 72 73 Total $96,323.00 $97,445.00 North Parcels: 80 81 Total $79,303.00 $69,951.00 South Parcels: 74 79 Total $78,123.00 $71,032.00 East Parcels: Unpaid Assessment $61,691. 85 62,410.59 50,790.96 44,801.46 $62,171.01 63,488.70 Assessment Prepavrnent $34,631.15 $35.034.41 $69,665.56 $28,512.04 $25.149.54 $53,661.58 $15,951.99 7.543.30 $23.495.29 Prepavrnent Amount $33,101. 34 $33.486.80 $66,588.14 $27,252.54 $24,038.58 $51. 291.12 $15,247.33 $ 7.210.16 $22.457.49 12. Existinq Litiqation and Applicable Statutes of Limitations. The partiBs hereto understand and believe that (1) the Action is the only pending litigation in which the resolutions identified in Recitals 3, 4 and 5 hereto, and the ErR, and any of them, are challenged; and (2) that applicable statutes of limitation have expired and preclude the commencement of any such siroon9.wp November 25, Settlement Agreement re otay Valley Road Widening 1992 5 Page 5 j-/J action, except as provided in Paragraph J, infra. 13. Attornev Fees and other Costs Incurred bv Ecoloqv. THE CITY has been provided with appropriate invoices, billings, and all other appropriate documentation and has satisfied itself that ECOLOGY AUTO WRECKING has paid in excess of THIRTY TWO THOUSAND FIVE HUNDRED DOLLARS ($32,500) for attorneys' fees, expert fees and consulting fees. Those fees were incurred for (1) presentations made for and on behalf of ECOLOGY at the administrative level when the foregoing resolutions were before the city Council of the city of Chula vista for its review and consideration; and (2) this litigation. II. CONDITIONS PRECEDENT NOW, THEREFORE, the parties irrevocably agree that if the duties of Plaintiffs are performed as set forth in subparagraph II.A, and the condition precedent set forth in subparagraph II.B. occurs as therein stated, the rights and duties' set forth in the subsequent section III. ("Obligatory Provisions") shall be in full force and effect; otherwise, they shall be of no force and effect whatsoever. A. Plaintiffs, who have made application for Special Permits from the Agency permitting uses specified below on the Lots, and will, within 5 days, amend such application to request a Special Permit for Lien Sale of Impounded Vehicles to be effective if and when the City's Zoning Code is amended to allow said use by Special Permit, agree to diligently prosecute said applications, and Agency will, to the best of its efforts, cause the expeditious processing of same. B. Plaintiff Turecek will deliver to the City the sum of $2,500.00 to be applied to a portion of staff processing costs, and therefrom permit the City to pay the City's total costs for processing a zone text change to permit a land use, to wit: "the lien sale of impounded vehicles", to occur in an I-P designated zone subject to securing a conditional use/special permit ("Lien Sale Zone Text Change"). All costs for processing the Lien Sale Zone Text Change in excess of $2,500.00 shall be borne by the City, including, but not limited to, staff time, outside consultants, environmental reports and any other such expense. Nothing herein shall commit the City to incur litigation costs regarding the Lien Sale Zone Text Change. C. without constituting a covenant to cause same to happen, the condition precedents ("Condition Precedents") to the effectiveness of the Obligatory Provisions shall be as follows: . Condition Precedent No.1. Initiation of Lien Sale Zone Text Change Processing. City shall commence, within 20 days of the effective date of this Agreement, an initial study for the Lien Sale Zone Text Change, which shall be deemed to be the initiation of the process to accomplish a Lien Sale Zone Text Change. Nothing herein contractually commits the City to siroon9.wp November 25, Settlement Agreement re Otay Valley Road Widening 1992 6 Page 6 J3 ~ F! implement the Lien Sale Zone Text Change. Condition Precedent No.2. Existing Entitlement Special Permits are Granted. The Agency shall, within 20 days after the effective date of this Agreement, grant Plaintiffs Special Permits ("Existing Zoning Special Permits") covering the Lots listed below in this subparagraph II C.2.(1) through (3) and for the uses indicated for those Lots in that listing, for the terms indicated therein and on conditions no more onerous than those set forth in section II.C.2.a. (1) Lots 12, 13, 21 and 22 for (1) auto- dismantling and sales of auto parts uses, and (2) scrap metal collection, ,compaction, cutting, shredding in preparation for the scrap market; and other related uses, for a term not less than 13 years; (2) Lot 14 for (1) storage, maintenance and repair of heavy equipment; (2) support equipment and vehicles requisite to general contracting; (3) storage and distribution of fuel; (4) general contractor's offices, shops and related storage of parts, tools, machinery, etc.; (4) processing of construction site residue for reuse, recycling, or sale; and related uses, for a term not less than 13 years; (3) Lot 20 for impound, storage and dismantling of automobiles, general offices and storage of records and related uses for a term of not less than 13 years; a. Conditions Attached to Existing Zoning Special Permits. The Conditions Precedent will be deemed to have been met if the Special Permits above mentioned are issued on conditions no more onerous than the following: (1) Plans shall be submitted in an accepta- ble form to the City within three (3) months after the Special Permit has been approved for review to the otay Valley Road Project Area Committee and for approval by the Agency indicating cOde-required off-street parking; landscape planting/irrigation; fencing and other appropriate comparable-cost screening measures to ameliorate adverse visual siroon9.wp Settlement Agreement re otay Valley Road Widening November 25, 1992 7 Page 7 .3 ~ j!J impacts. The plans shall be prepared by a Registered Landscape Architect. Plans approved by the City shall be implemented by the Permittee ("Plans"). Such Plans shall be implemented within eighteen (18) months of their approval by the City. (2) The Special Permits shall become void and ineffective if not utilized within one year from effective date thereof, in accordance with Section 19.14.260 of the municipal code. Failure to comply with any condition of approval shall cause this permit to be reviewed by the City for additional conditions or revocation. (3) Should such final Special Permits issue, any failure by the permittee under any Special Permit to fulfill any condition or to proceed thereunder, or otherwise violate same, such failure or violation shall not affect the validity of any other Final Special Permit. Condition Precedent No.3. Future Zoning Special Permits are Granted. If the Plaintiff who is the owner of Lot 20 ("Lot 20 Plaintiff") amends his pending Special Permit application in a manner and form reasonably acceptable to the City in 5 days after the effective date of this Agreement to request a Special Permit for Lien Sale of Impounded Vehicles on the condition that, and not effective until, the zoning code is amended to allow said use by Special Permit in an IP Zone ("Lien Sales Special Permit"), an additional Condition Precedent (i.e., Condition Precedent No.3) is as follows: The Agency shall, within 20 days after the effective date of this Agreement, grant Lot 20 Plaintiff a prospective Lien Sales Special Permit covering the Lot 20, to be effective if the City eventually adopts the Lien Sale Zone Text Change, which Lien Sales Special Permit will permit the use of said Lot 20 for lien sales of impounded vehicles for a term of 13 years on conditions no more onerous than those set forth above as conditions for Existing Zoning Special Permits. D. Rules Interpretinq the Occurrence of a Condition Precedent. siroon9.wp Settlement Agreement re otay Valley Road Widening November 25, 1992 8 Page 8 q-Ih '- 1. The issuance of the Special Permits shall be final for purposes of completing the Condition Precedent in this Sub- paragraph II.B. upon the expiration of any period for requesting reconsideration of the decision to issue such Special Permits under the ordinance and codes of the City or the Agency. Should the City have the power, the city may waive any reconsideration period that may exist by so stating in any resolution issuing such Special Permits, and upon so doing, the Special Permit shall be deemed final w~en the resolution is effective. 2. If such uses or any of them do not require a Special Permit because they are now permitted as of right by virtue of the zone in which the Lots are currently located, then the City and the Agency shall issue a letter stating such uses are permitted as of right and do not require a Special Permit or any other permit. 3. All Plaintiffs will be deemed to have accepted more onerous conditions if they fail to deliver written notice of objection to same within 15 days after final imposition of same. Upon such acceptance, the Conditions Precedent will be deemed to have been met. 4. If the Conditions Precedent do not occur within the time provided, but do occur prior to delivery to the City by any of the Plaintiffs of a written renunciation of the Agreement on the basis that the Conditions Precedent did not occur within the time frames stated, the Plaintiffs waive the right to thereafter declare that the Conditions Precedent did not occur, and the Conditions Precedent will be deemed to have timely occurred. III. OBLIGATORY PROVISIONS NOW, THEREFORE, for and in consideration of performance by the parties of the respective promises made herein, and on the occurrence of the Conditions Precedent hereinabove set forth in Section II., the parties agree and promise as follows: A. Recitals Included. The foregoing Recitals are incorporated herein and are agreed to, confirmed and ratified and constitute a part of this Agreement. B. Omitted. C. city Dutv to Make Loans. Upon receipt of title insurance in the amount of the loans, determination of a loan (as fully subordinated) to value ratio of less than or equal to 80%, and receipt of an "additional insured" endorsement on the Plaintiff's property insurance, THE CITY will make two loans as follows: one loan to CHARLES B. SIROONIAN, LINDA L. MANDEL, CHARLES D. PRATTY II, LOUIS P. PRATTY, and CAROLINE A. PRATTY in the principal amount of $66,588.14 to be siroon9.wp November 25, Settlement Agreement re Otay Valley Road Widening 1992 9 Page 9 /) . 7 . . ~/ ,J evidenced by a note secured by deed of trust ("Note") and secured by a Trust Deed recorded against Lots 12 and 13j and one loan to OTAY INDUSTRIAL PARK in the principal amount of $73,748.61 to be evidenced by a note secured by a deed of trust ("Note") and secured by a Trust Deed recorded against Lots 21 and 22. Immediately upon making the loans referred to hereinabove, THE CITY shall transfer the proceeds of the loans to the Improvement Fund of AD 90-2 and shall credit such amounts as cash payments against the Final Confirmed Assessment on each of the respective Assessment Nos. 72, 73, 80, 81, 74 and 79. As a result of applying the proceeds of the loans to the Prepayment Amount, the Unpaid Assessment shall be the amount of the remaining unpaid assessment levied against each of the respective parcels pursuant to AD 90-2. D. Plaintiff's Dutv Not to Contest Formation of Assessment District. Plaintiffs, and each and everyone of them, will not con- test or dispute the formation of AD 90-2, or the City's authority to form same, or any alleged defects in the City's attempt to form same, including alleged defects or omissions in the environmental review or the assessment district proceedings, the levy and collection of an assessment in the amount of the Unpaid Assessment or the issuance of bonds for the assessment district representing the unpaid assessments, including the Unpaid Assessments, on properties within AD 90-2. The "cash paydown period", which is the period of time an assessed parcel owner has within which to paydown an assessment without charge for financing costs, shall be extended until 15 days after the effective date of this agreement, during which time the Plaintiffs shall have the option to payoff all or a portion of the Unpaid Assessment at the "cash paydown price" (i.e., at or about .9558 of the Unpaid Assessment amount) or, thereafter, to make annual payments on said Unpaid Assessment calculated in the same manner as is applicable to all other parcels within AD 90-2, or to payoff all or any portion of the then remaining balance of the Unpaid Assessment during the term of the assessment period in the same manner as is applicable to all parcels within AD 90-2. The actual annual payment required will depend, in part on the interest rates at which the bonds are sold which rates cannot now be determined. E. Form and Contents of Notes. The two Notes shall have the form and content of the Notes attached hereto as Exhibit A, (Herein, "the Notes.") but if not attached, each of the promissory notes shall contain customary and usual provisions and, in addition, shall provide as follows: a. Payment will commence, only at such time as a building or other development permit, or permits, as identified below is, or are, issued on any of the parcels which are the security for that Note, (i.e., on Parcel 72 or Parcel 73 for the North siroon9.wp November 25, Settlement Agreement re Otay Valley Road Widening 1992 10 Page 10 3-/! .-.-,--,,_....,...- Parcels Note; and on Parcels 80, 81, 74 or 79 for the South and East Parcels Note), but not later than December 31, 2017. Issuance of a building permit will trigger the commencement of the repayment obligation only if the City's Director of Building reasonably determines that the value of the authorized construction under such permit exceeds $500,000; or reasonably determines that the value of all improvements permitted since the effective date of this Agreement exceeds $1,000,000.00, whichever occurs sooner ("Repayment Trigger"), except that any construction activity needed to specifically satisfy conditions of renewal or issuance of a final Special Permit shall not be applicable toward calculating the Repayment Trigger. b. No Note shall bear interest. c. If the Due Date (December 31, 2017) occurs before the Repayment Trigger occurs, then the Note is due and payable in full on the Due Date. Otherwise, commencing on the first day of the next succeeding month after the date on which the Repayment Trigger occurs, the Note shall be payable in equal monthly installments in an amount that will result in the complete satisfaction of the Note by the Due Date, or 10 years, whichever is less. If the payment commencement date is more than ten (10) years before the Due Date, then the Note shall have a term of ten (10) years; d. It is the intention of the parties that the Plaintiffs not be personally liable on the promissory notes but that the land will act as the security for their repayment. F. Trust Deeds; Number; Security; Subordination. Each Note will be secured by a Deed of Trust. The North Parcels Note will be secured by a Deed of Trust on Parcels 72 and 73, and the South and East Parcels Note will be secured by a Deed of Trust on Parcels 80 and 81, but repayment of the Note that is secured by Parcels 80 and 81 will commence if the Repayment Trigger occurs as to anyone or more of Parcels 74, 79, 80 and 81. The Deeds of Trust shall be subordinate to any future deed of trust to secure a loan ("New Note") from a lender ("Lender") provided (a) the proceeds of the New Note shall be used first to pay in full any other loans secured by the property, any mechanic's liens or other charges levied or leviable against the property beca~se of any improvements made to the property by Trustor, and any trust deeds securing any other such loans, liens or other charges shall be reconveyed to the property owner as to any property for which the City Deed of Trust is security; (b) the total amount of the New Note shall not exceed eighty percent siroon9.wp November 25, Settlement Agreement re Otay Valley Road Widening 1992 11 Page 11 j -/q '""-'-"'-'-'--'~--' (ao%) of the value, as determined by the Lender making the New Note, of the property as improved by Trustor or his or her successor in interest; (c) the New Note shall not bear interest, exclusive of late charges, penalties, or fees payable in case of default, greater than fifteen (15%) per annum; and (d) the remaining terms and provisions of the New Note shall be as required by the Lender. within ten days after receipt of a written request therefor from Trustor and proof of the aforementioned conditions having been met, City/Beneficiary shall execute a separate agreement of subordination, in recordable form, in favor of the lender of the New Note to which the city Deed of Trust will be thereby subordinated, and deliver the subordination agreement to the Lender or Lender's title company designated by Trustor. The terms of any such subordination agreement shall prevail over the subordination provisions provided in the City Deed of Trust or this agreement. G. Specified Contents of Trust Deeds. The City Deeds of Trust will be executed in favor of THE CITY and will contain the following: (a) At the top of each City Deed of Trust the word "subordinated" must appear in at least lO-point bold face type unless it is typewritten, and if it is typewritten the term must appear in capital letters and must be underlined. civil Code Section 2953.2(a). (b) Immediately following the word "subordinated", the type of the security instrument must be identified--to wit, a Trust Deed. (c) Immediately below the above information, the statutory notice must appear in capital letters if typewritten and at least in a-point bold-face type as follows: "NOTICE: THIS DEED OF TRUST CONTAINS A SUBORDINATION CLAUSE WHICH MAY RESULT IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT." (d) The following notice must appear directly above the signature siroon9.wp November 25, Settlement Agreement re Otay Valley Road widening 1992 12 Page 12 " ~jLJ 0. of the beneficiary, and the notice must be in at least a-point bold face type and, if typed, must be in capital letters: "NOTICE: THIS DEED OF TRUST CONTAINS A SUBORDINATION CLAUSE WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY INSTRUMENT TO OBTAIN A LOAN, A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND." (e) The language reflecting the' agreement of the parties as contained in paragraph III.F. above. H. Payment of Plaintiffs Attornev's Fees. . THE CITY agrees to pay within thirty (30) days after the effective date of this Agreement a total of $32,500 to ECOLOGY WRECKING YARD for attorneys' fees, expert fees and consultant fees incurred by it to date. Otherwise, the parties, and each and everyone of them, will bear their own costs, including but not limited to, attorneys' fees, expert fees and consultant fees. I. Dismissal of Action. Upon the occurrence of the Conditions Precedent, Plaintiffs, and each and everyone of them, agree to dismiss the Action in its entirety without prejudice which designation (Le., "without prejudice") shall not be construed as inconsistent with the provisions of this Agreement. However, should the Action, or any cause of action pleaded in the Action, or any cause of action which could have been pleaded based on the same set of facts alleged in the Action be commenced under circumstances not authorized by this Agreement, City may tender the release contained herein and otherwise available statute of limitations as a complete defense in support of a motion for dismissal. J. Set Aside of Aqreement on Successful Collateral Attack on Aqreement. . Should a third party commence an action or proceeding challenging this Agreement, or any part of it, THE CITY agrees to defend vigorously such action or proceeding at its own individual cost and expense but with the vigorous cooperation of Plaintiffs, and each of them. The pendency of such an action or proceeding shall not, by itself, cause the delay or postponement of the implementation and the performance by the parties of their executory obligations as provided herein. In the event that injunctive, declaratory or writ relief is ordered restraining and enjoining THE CITY from giving effect to this Agreement or determining by a final judgment that this Agreement is unenforceable and/or invalid, the parties hereto agree that the siroon9.wp November 25, Settlement Agreement re Otay Valley Road Widening 1992 13 Page 13 ~ -:1-/ ,- Action may be recommenced in its entirety upon return of all consideration for this Agreement to the parties, but Plaintiffs' remedy, jointly or individually, if successful, will be limited to damages and in an amount not in excess of the then present value of the remaining amount of the assessment against each of their respective parcels, and attorney fees and costs may be awarded to the prevailing party. specifically, Plaintiffs, either jointly or individually, shall not be entitled to injunc- tive, declaratory or any other form of equitable or other relief whatsoever the effect of which would, directly or indirectly, invalidate or have the effect of invalidating any or all of the following, or any combination thereof: the proceedings to form AD 90-2, the levy of the assessments within AD 90-2 as confirmed in the AD 90-2 proceedings, the assessment liens on the proper- ties within AD 90-2 upon which unpaid assessments remain, the collection of the unpaid assessments on the properties within AD 90-2 upon which unpaid assessments remain and any bonds issued by the City representing the unpaid assessments, or any portion thereof, within AD 90-2. Subject to the limitation on remedies contained in the preceding sentence, should the action be recommenced, the parties agree that Plaintiffs have not waived, relinquished nor shall they be legally or equitably estopped from asserting any of the causes of action now sought in the Action, but that their sole remedy, jointly or individually, if successful, is limited to damages and in an amount not in excess of the then present value of the remaining amount of the assessment against each of their respective parcels. It is agreed that all parties reserve any and all other rights they may have other than as agreed to hereinabove. K. Set Aside of Aqreement If Final Special Permits Not Issued. If at any time between the effective date of this Agreement and December 31, 2017, THE CITY denies a Plaintiff a Special Permit, or other such required permit which may be necessary for the continued use of the Lots for the use identified above upon the conditions herein specified, then such Plaintiff may give the City written notice of the rescission of the Agreement, and, upon tender of the return of all consideration given by the City (The Special Permits issued to non-rescinding Plaintiffs need not be re-tendered.), the Action may be recommenced in its entirety, except that the Plaintiffs' sole remedy, if they are successful on the causes of action, shall be damages and in an amount not in excess of the then present value of the remaining amount of the assessment against each of their respective parcels. Specifically, Plaintiffs, either jointly or individually, shall not be entitled to injunctive, declaratory or any other form of equitable or other relief whatsoever the effect of which would, directly or indirectly, invalidate or have the effect of invalidating any or all of the following, or any combination thereof: the proceedings to form AD 90-2, the levy of the siroon9.wp November 25, Settlement Agreement re otay Valley Road Widening 1992 14 Page 14 ,,) - c1L assessments within AD 90-2 as confirmed in the AD 90-2 proceedings, the assessment liens on the properties within AD 90- 2 upon which unpaid assessments remain, the collection of the unpaid assessments on the properties within AD 90-2 upon which unpaid assessments remain and any bonds issued by the City repre- senting the unpaid assessments, or any portion thereof, within AD 90-2. Subject to the limitation on remedies contained in the preceding sentence, should the action be recommenced, the parties agree that rescinding Plaintiffs have not waived, relinquished nor shall they be legally or equitably estopped from asserting any of the causes of action now sought in the Action, but that their sole remedy, jointly or individually, if successful, is limited to damages and in an amount not in excess of the then present value of the Final Confirmed Assessment against each of their respective parcels. It is agreed that all parties reserve any and all other rights they may have other than as agreed to hereinabove. K 1/2. Set Aside of Agreement as to Lot 20 if Lien Sales Zone Text Change Not Made or Lien Sales Special Permit Related Thereto Not Granted. A. IP Zone Change Application. The Lot 20 Plaintiff may apply to the City for a Lien Sale Zone Text Change ("Lien Sales Zone Text Change Application") to permit the lien sales of impounded vehicles in the I-P Zone of the City. B. Use Allowed as "of right". If the City grants such Lien Sales Zone Text Change, the Lot 20 Plaintiff shall have no further rights to set aside this Agreement under this paragraph (K 1/2). C. Use Denied. If the City denies such Lien Sales' Zone Text Change Application, the Lot 20 Plaintiff shall have the special set aside right hereinbelow set forth in Subparagraph D ("Lot 20 Set Aside Right"). D. Lot 20 Set Aside Right. If the provisions of subparagraph C above apply, the Lot 20 Plaintiff shall have the following special right to set aside this agreement: 1. Such Lot 20 Plaintiff may give the City written notice of the rescission of the Aqreement on the basis of this provision, and, upon tender of the return of all consid- eration given by the City, including any Special Permits issued to the Lot 20 Plaintiff for any of the Lots under this Agreement and $32;500 paid by the City, the parties hereto agree that the Action may be recommenced in its entirety, except tpat the Lot 20 Plaintiffs' sole remedy, if they are successful on the causes of action, shall be damages and in an amount not in excess of the then present value of the remaining amount of the assessment against Lot 20. Specifically, Lot 20 Plaintiff, either jointly or individually, shall not be entitled to injunctive, declaratory or any other form of equitable or other relief whatsoever the effect of which would, directly or indirectly, invalidate or have the effect of invalidating any or all of the following, or any siroon9.wp November 25, Settlement Agreement re otay Valley Road Widening 1992 15 Page 15 ,)_-1::.?, ,..) ""'--' combination thereof: the proceedings to form AD 90-2, the levy of the assessments within AD 90-2 as confirmed in the AD 90-2 proceedings, the assessment liens on the properties within AD 90- 2 upon which unpaid assessments remain, the collection of the unpaid assessments on the properties within AD 90-2 upon which unpaid assessments remain and any bonds issued by the City repre- senting the unpaid assessments, or any portion thereof, within AD 90-2. Subject to the limitation on remedies contained in the preceding sentence, should the action be recommenced, the parties agree that rescinding Lot 20 Plaintiff has not waived, re- linquished nor shall it be legally or equitably estopped from asserting any of the causes of action now sought in the Action, but that its sole remedy, jointly or individually, if successful, is limited to damages and in an amount not in excess of the then present value of the Final Confirmed Assessment,against Lot 20. ~ Specific Dutv to Return Attornev Fee Consideration Paid bv city. Should ECOLOGY be one of the rescinding Plaintiffs who re- commence the litigation (in accordance with the rights provided herein), then it is agreed that ECOLOGY will restore to and reimburse to THE CITY the sum of $32,500.00 representing the total amount of the payment provided for in Paragraph H, supra. If ECOLOGY is not one of the rescinding Plaintiffs who recommence such litigation, then only the rescinding Plaintiffs are require to pay to THE CITY said sum of $32,500.00. M. Waiver of Statutes of Limitations if Aqreement Set Aside. THE CITY waives and relinquishes any and all limitation periods, including but not limited to those set forth in the California Environmental Quality Act, Public Resources Code Section 21000, et seq.; those set forth in Streets and Highways Code Section 10400; and such other limitation period, legal, equitable or otherwise, which might otherwise be applicable but for the agreement of the parties as set forth herein, but only as to the rescinding Plaintiffs, only until 30 days after (1) final judgement is entered effectively setting aside or invalidating this Agreement; (2) renewal of a Special Permit is sought and denied; or (3) as to the Lot 20 Plaintiff, the Lot 20 Set Aside Right has accrued, but in no event later than December 31, 2017. The foregoing waiver and relinquishment is intended to be broadly construed to also apply to such limitation periods which may be otherwise applicable by reason of a failure to make service of process, failure to request the matter be set for trial or otherwise. Finally, the parties will cooperate to obtain an order providing for the foregoing. The waiver and relinquishment of the limitations periods set forth in this paragraph shall not constitute a waiver or relinquishment in any way whatsoever of nor diminish in any way whatsoever the limitation of the remedies of Plaintiffs set forth in Paragraphs J. and K. hereto. N. Benefit of Reimbursement Districts. siroon9.wp November 25, Settlement Agreement re Otay Valley Road Widening 1992 16 Page 16 3-,iLj The Unpaid Assessment will be subject to reduction if a reimbursement district or districts are formed and reimbursement fees collected from such district or districts are allocated to AD 90-2 and such fees are deposited into the Redemption Fund for AD 90-2 for the purpose of calling bonds of AD 90-2. Any such reduction shall be pro rata among all properties within AD 90-2 which were subject to the levy of an assessment for AD 90-2. For example, it is contemplated that there will be an Auto Park Reimbursement District adopted which may result in a reduction of the balance due on the Final Confirmed Assessment. ~ Siqnature in Counterparts. This Agreement may be signed in counterparts and the signature pages may be attached hereto. E. Parties Receipt of Leqal Advice. All parties hereto have received independent legal advice from their respective attorneys regarding the advisability of entering into this Agreement. Q. Parol Evidence. Except as expressly stated herein, no party has made any statement or representation to any other party regarding any fact relied upon in entering into this Agreement, and no party hereto relies upon any such statement or representation in executing this Agreement. E. Investiqation. Each party hereto has made such investigation of the facts pertaining to this Agreement it deems necessary. ~. Aqreement Read and Understood. Each party hereto, responsible officer, or governing body thereof has read this Agreement and understands the contents thereof. T. Mutual Limited Release. By this mutual limited release, THE CITY and Agency release the Plaintiffs from any and all causes of action, and demands, and the Plaintiffs release THE CITY, Agency, TIM NADER, SHIRLEY GRASSER-HORTON, JERRY RINDONE, DAVID MALCOLM, and LEONARD MOORE, in their capacity as Members of the city Council of The City of Chula Vista; and JOHN GOSS, in his capacity as City Manager of The City of Chula Vista, from any and all causes of action and demands alleged in or related to the allegations contained in the complaint and petition in the Action. This release does not apply to Defendants inter se nor does it apply to Plaintiffs inter se. with such exceptions, the Defendants and Plaintiffs do hereby release and discharge the other from any and' all claims, demands or causes of action, known or unknown, which the Defendants or Plaintiffs now own or hold, or have at any time heretofore owned or held as against the other arising from the facts, events, causes of action and rights to relief alleged in the complaint and petition in the Action and such claims, demands or causes of action which reasonably relate thereto. This release does not apply to riqhts and duties created bv siroon9.wp November 25, Settlement Agreement re Otay Valley Road Widening 1992 17 Page 17 j~ ;L5 this Aqreement. 11. Notice. Any notice to be given or document to be transmitted hereunder shall be in writing and shall be deemed given as of the date of actual delivery to the address or addresses set forth below. All of such notices shall be directed to the parties, with copies as indicated, at the following addresses, unless notice of a different address is given in accordance with this section: Notice as-to CHARLES B. SIROONIAN, LINDA L. MANDEL, CHARLES D. PRATTY II, LOUIS P. PRATTY, CAROLINE A. PRATTY and/or ECOLOGY AUTO WRECKING: To: Charles D. pratty II Ecology Auto Wrecking 13780 E. Imperial Highway Santa Fe Springs, CA 90670 with a copy to: Worley, Schwartz, Garfield & Rice Attn: Charles V. Berwanger, Esq. William J. Schwartz, Jr., Esq. 1150 First Interstate Plaza 401 "B" Street San Diego, CA 92101 Notice as to OTAY INDUSTRIAL PARK, KARL TURECEK and/or CHARLES TURECEK: To: Karl Turecek Otay Industrial Park 2423 Camino del Rio South suite 212 San Diego, CA 92018 with a copy to: Sullivan, Delafield, McDonald, Allen & Middendorf Attn: William A. Bramley, III 1200 Third Avenue, suite 1405 San Diego, CA 92101 Notice as to THE CITY and Agency and each and everyone of THE CITY Defendants to: To: John Goss, City Manager City of Chula vista 276 Fourth Avenue Chula Vista, CA 91910 with a copy to: siroon9.wp November 25, Settlement Agreement re Otay Valley Road Widening 1992 18 Page 18 -? - ") ~ -J c'- Bruce M. Boogaard, City Attorney City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 y. Execution of collateral documents. Each party hereto agrees to execute all such documents as may be necessary or helpful to carry out the provisions of this Agreement, and each party irrevocably authorizes its attorney to execute such documents. N. Entire Aqreement. This Agreement is the entire agreement between the parties with respect to the subject matter hereof and is to supersede all prior and contemporaneous oral and written agreements and discussions. This Agreement may be amended only in writing. X. No Construction Aqainst Draftinq Partv. All parties have cooperated in drafting and preparing this Agreement. Any construction to be made in this Agreement shall not be construed against any party. X. No Admission of Liabilitv. The parties hereto declare that this is a settlement of disputed claims, not an admission of liability on the part of any party hereto. ~. Successors and Assiqns. This Agreement shall inure to. the benefit of the parties hereto and their assigns, successors, heirs, executors, administrators, officers, directors, employees, servants, insurers, privys, attorneys and agents. AA. Attornev Fees and Costs. In the event any action or proceeding is commenced between the parties hereto with respect to this Agreement, the prevailing parties shall be entitled to recover fees, costs, and expenses incurred by it in connection with such action or proceeding, including reasonable attorneys' fees. BB. Authoritv of Siqnatories. The parties represent and warrant that the signatories hereto are authorized and empowered to execute and enter into this Agreement. THE CITY further represents that its City Council has adopted any and all required Resolutions and taken all other action necessary to approve and authorize this Agreement. CC. Estoppel Certificates. Plaintiffs will issue such estoppel certificates for reliance by bond underwriters and bond holders of AD 90-2 bonds, as may be requested by the City certifying that the terms and conditions of. this agreement are in full force and effect, and cooperate with the City in executing such documentation as may be required by the City, City's bond counsel, or Assessment District underwriters consistent with the terms of this Agreement including acknowledgement as to the limitation of remedies. siroon9.wp Settlement Agreement re otay Valley Road Widening November 25, 1992 19 Page 19 ~~7 11-3,0-,92 10.1 7AM FROM WSG&R TO 4256184 P005/005 ~~ _ .~31e9210<~ ____..~ _ ._. COOK:> E01.rEY DEl..TA '704 PB2 NO\) 30 '92 113'02 a; .,~~,.d.1,.I\4 - . .... ~ --- .. . ,...... Q1t'l -- ....-... ... ~ .. ... ~.::... ~ ,.. ... "" ...... ....._. ..... .....f:... ... ...~... ~ oJ ....._ - .... ....- .. '.=- oJ -"'" .. ~ ......."'... ""t.0!:!:. .._~.:.......;-...-..,... .. ... · ~.'o ~~i.. ~.." pw.' 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'L'P _t9S!~ Bto~S_~- ~_ 1~' ~ .-0 l1li- ~IIOJ&S' oa.dD' ~I "t.'fSIU _ '* ').., ~9~ - ~.. .....-. ..._.. _ u1'" _.- ... .... ... - \ R-95% l' ! <oj 09Z18f!4a 11-30-92 10:QOAN i'002 :t;:12 /) . ~ ,') .- ').r '1'OJ-25-'92 JJ,l~~~!-2.6<!~__~COLOGY DELTR -- 692 PeJ3 NOU 25 '92 15:3121 l)JI.'rlttH I /~ #-.& ,q"J-, - It--'^S~ - DATED; <nAY UOUS'r1UAL 1iIAU. .. c.lit~nia Ganeral partne~hlp, BYt DATE!)S 1(-;;' S -GJCJ-.. I }-,;L. 5 -Cf;)-- - 1Oo1Ui ~. General paxtner ~Gc:a1icomia ... M~ . /'-~ B~t ~ ~ . ta Bacretary DATED: DA'rBD: 'tHE Ct'rY OF C!:IULA VISTA, II. munioipal corporation, DA.TUH - TIH .NAf)Z1\, its ..ayor 'rSS pnZWLOpJtDIT AQPC'l OJ' 'tHS CITY 01" c:mn.a. V15TA, e poli1:.ical .~1vi.ion of ~. stata of California. B'H TIM NADEll, 1t$l Oairman Approved &111 to ror'll DATED: _ Att..t.S , Beverly Authulet.. city Clerk BrUce 1&, Bo09&o.1:4. cIty Attorney siroon9 ,wp settletant A9reement re ot1Sy valley Roa4 Wi4eni.n<J Nov..er 25. 1n2 11 pa9- 2" 3-.21 11-25-92 lQ:51AM FROM WSG&R TO 4256184 P002/002 ---- 1'OJ-25-'92 !oED 11"39 ID:CI'IY IF ou.A VISTR T6.. I();~ 619 691 5l?1 DA'l'ID : DAfID: ~I 11~'l-<:-q? J)A'1'BDI DATIID I DATED t ~~J:I): Att..t:: t!352I PI!3 x.ovJ:' P. Paa'l"1'V ~....~......,. A. >>urn: ~~ "'''~io , &1 P~~ ~ AUTO W1t1.........1(0, . california ~~"tion, .VI , it:a P-.e1dent: BYI , it:a .e=etaQ' ~ em 06 Qlw.A 'n5'rA, . lIiwIiolpal ..,.__d.oft, nM 1tIoD..., i_ Htlr- $8 ~&LOPICIDIT AGEHCY or 1'BB m:n 07 aIOt.A V%S'1'A, . pgUU.c:al Ililbdiv1siOD ot the state of &1itonlia, HI '1'1M nDD, its Chairman Apprgyllll a. tg ror.m Bevu-ly Authulet, city Clerk Brw:e x. BoogAU'CS, City Attorney C1roon,.vp S.~~_cn1; AljnOon~ n otay Valley Road W1t1_u., .OVQJlJsar 25, 111112 &1 >>119'11 21 R-931( CITY or CBVLA VI'TA 11-25-Q2 ID,3Q~ '003 #03 ..3~Jo RESOLUTION NO. /:2 ro RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE SETTLEMENT AGREEMENT BETWEEN THE CITY, AGENCY AND VARIOUS PARCEL OWNERS WITHIN THE OTAY VALLEY ROAD WIDENING ASSESSMENT DISTRICT, AD 90-2, AND AUTHORIZING THE CHAIRMAN TO EXECUTE SAME ON BEHALF OF THE CITY OF CHULA VISTA NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of Chula vista does hereby approve the Settlement Agreement between the city, Agency and various parcel owners within the Otay Valley Road Widening Assessment District, AD 90-2, a copy of which is on file in the office of the city Clerk. BE IT FURTHER RESOLVED that the Chairman of the Redevelopment Agency of the City of Chula Vista is hereby directed to execute said Agreement for and on behalf of the Redevelopment Agency of the City Chula Vista. BE IT FURTHER RESOLVED that the sum of $100,000 is hereby appropriated from Account No. 996-9960-ST123 (balance of an Agency Loan Receivable from the City for City's Purchase of a Mitigation site) and $72,836.75 from revenues the Agency expects to receive from the Agency's sale of the Right of Way to the Assessment District, 90-2. ~~ 0']) Presented by Chris Salomone, Director of Community Development Agency P:\home\aUOrncy\sironRA.rc.s 3~3/ IIlhJo~ [PJIID@@ O[/j)~@ITiJ~O@[/j)IIDOOW O@1flt ibJOIID[/j)~o 3 <')L, RESOLUTION NO. It Pr2-1 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SETTLEMENT AGREEMENT BETWEEN THE CITY, AGENCY AND VARIOUS PARCEL OWNERS WITHIN THE OTAY VALLEY ROAD WIDENING ASSESSMENT DISTRICT, AD 90-2, AND AUTHORIZING THE MAYOR TO EXECUTE SAME ON BEHALF OF THE CITY OF CHULA VISTA NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the Settlement Agreement between the City, Agency and various parcel owners within the Otay Valley Road Widening Assessment District, AD 90-2, a copy of which is on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula vista is hereby directed to execute said Agree nt for and on behalf of the City Chula Vista. ~~ d~t ity Presented by Chris Salomone, Director of Community Development F:\hom~\attorncy\siconCC.res 3-33 i ~ I ) l' l-1\ \ , DTAY! lANDFILL I I ROJECT lOCATION / . , i i \ i \ !OJ ---l ~~ !~! ------- COORS AMPHITHEATER SOAK CITY USA C HULA VISTA PLANNING AND BUILDING DE PARTM E NT R PROJECT ECOLOGY AUTO WRECKING PROJECT DESCRIPTION: APPLICANT: SPECIAL USE PERMIT PROJECT 834 Energy Way ADDRESS: Request: Proposed time extension of the expiration date for the - existing special land use permit number OVRCPE 53/SLVP24 = LOCATOR FILE NUMBER: until December 12,2025. No edditional construction or l No Scale SUPO - 01-02 expansions to the permitted facility are being proposed. C:\myfiles\locators\SUP00102.cdr 11/27/00 PLANNING COMMISSION AGENDA STATEMENT ITEM NO.: MEETING DATE: 4 4/25/01 ITEM TITLE: RESOLUTION OF THE REDEVELOPMENT AGENCY OF CHULA VISTA AMENDING THE OTAY VALLEY ROAD REDEVELOPMENT PROJECT PROCEDURES MANUAL SECTION III B (RULES AND REGULATIONS FOR THE FILING AND PROCESSING OF PLANS AND PROPOSALS FOR THE REDEVELOPMENT OF THE OTAY VALLEY ROAD PROJECT AREA, MAJOR PROJECTS) TO ADD SUB-PARAGRAPH 3, PRECISE PLAN PROJECTS, AND AMENDING THE OTAY VALLEY ROAD PROJECT AREA IMPLEMENTATION PLAN/DESIGN MANUAL ADDENDUM TO ADD SECTION 5.3(5), ALLOWING FOR THE ADMINISTRATIVE APPROVAL OF DESIGNS AND OWNER PARTICIPATION AGREEMENTS WITHIN AGENCY APPROVED PRECISE PLAN DEVELOPMENTS SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR REVIEWED BY: EXECUTIVE DIRECTOR 4/STHS VOTE: YES D NO ~ BACKGROUND In May, 1985, the Redevelopmen1 Agency adopted a Projects Procedure Manual and an Implementation Plan/Design Manual Addendum as support documents to the Otay Valley Rood Redevelopment Plan. These documen1s describe the processes the Agency Board should follow and staff should use in processing developmen1 plans that are presented. It was mean1 10 be responsive to changing circumstonces and to be amended as necessary to facilitate the smooth and efficient processing of proposals. Late in 2000, Landbank, Inc. - the property owner of a formerly contaminated set of parcels totaling "'arc 11,"1, 30approxima1elv 40 -acres - approoched the Agency to discuss processing of a light manufacturing industrial park on the site. Development constraints included set backs and height restrictions caused by the topography of the site, use constraints in some areas imposed by environmental monitoring requirements, and an aggressive processing schedule desired by the developer to make the project financially feasible. Staff in 1he Planning Department, in conjunction with Community Development, determined that a Precise Pion would allow the development 10 go forward despite the set back and height restrictions imposed by 1he current zoning. The intent of a Precise Plan is to allow diversification in the spatial relationship of lond uses, density, buildings, structure, landscaping and open spaces, as well os design review of architecture and signs through the adoption of specific criteria as opproved. The Precise Plan would be created by the developer and include a re-mapping of -_.'~--'-"..'- PAGE 2, ITEM NO.: MEETING DATE: 04/25/01 the project, the layout of buildings, traffic circulation, the an1icipated uses, and' design, construction and landscaping guidelines for the entire site. The Precise Plan allows the flexibility to accommodate the construction of the various types of buildings and uses required in a multi- parcel industrial park. To allow for ample Agency control of the project but facilitate the streamlined processing schedule desired by the developer, the Planning and Community Development Departments request the Agency invoke their authority to delegate certain matters to staff. Staff is therefore requesting that following Design Review, Planning Commission and Agency approval of the Precise Plan, administrative approvals be allowed for the review of each development phase~ lona as it is consistent with the overall Precise Pion approved for the development. Staff is also requesting that following Agency approval of a Mas1er Owner Participa1ion Agreement (OPA) on the project, administrative approvals be allowed for individuol OPA's upon transfer of the lond from the developer to individual businesses. As under the Precise Plan. fFhese administrative approvals of an individual OPA would only be given if the Ph",e "'"iAg preseAted exectl, falla..ed the 3pu:ifieatior,3 ar"pra,ed ir, tl,c Preci3e PloA and ani, if the OPA conditions exactly matched those adopted by the Agency in the Mosler OPA. Any Phases requiring Conditional or Special Use Permits ond the related OPA's would be presen1ed before the Agency for their ar"r"1 a.olconsideration. RECOMMENDATION It is recommended the Agency adopt the resolu1ion, amending the Otay Valley Road Redevelopment Project Manual Section III B (Rules and Regulations for the Filing and Processing of Plans ond Proposals for the Redevelopment of the Otay Valley Road Project Area, Major Projects) to add sub-paragraph 3, Precise Plan Projects, and the Otay Valley Road Redevelopment Project Area Implementation Plan/Design Manual Addendum, allowing administrative approval of designs and owner participation agreements within Agency approved Precise Plan developments. BOARDS/COMMISSIONS RECOMMENDATION Design Review Recommendation Pending. Planning Commission Recommendation Pending. DISCUSSION In many cases 1he blighting constraints of the Otay Valley Road Redevelopment Project Area lend to 1heir planning by Precise Plans. A Precise Plans is a planning tool allowed by 1he City zoning code intended for larger scale developments consisting either of mul1iple parcels being united and/or reconfigured, or on a parcel with multiple party ownership and is intended to provide flexibility from the strict interpretation of development standards. A Precise Plan can overcome developmen1 constraints common in the Otay Valley Road project area, such as difficult topography, poor prior planning practices, environmental constraints or the need to unify and re- map parcels for modern development design. PAGE 3, ITEM NO.: MEETING DATE: 04/25/01 The Landbank parcel, formerly known both as Omar Rendering and Darling Delaware, is an exomple of a project benefi1ing from a Precise Plan. Because of significant changes of grade on the site, building height restrictions and required set backs of the IL (light industrial) Generol Plan designation make industriol development unfeasible. :,135, 131 e. i5u3 en .i, 5nmCI ,lal c5ntan,ina1i519 5n the 3itenccc33itatc3 that 30me arc", of the de,d5i"ffient bc le1ained a3 "centainl9 ,Cl9t 3itc3". Construction opportunities within the current zoning are Iii "ikd. ,',Iimited by exis1ina development slandards. The flexibility of the Precise Plan will allow parcels with limited development potential to be u3cd '" I'""I,in9 lob 51 5tl,CI I "il ,51 U3<::3 CUrl <;1 ,tl, 131 ehibitcd b, tl,c Cel ,101 al Plan dC3ignati51, al,d wl9in9.developed for hiaher and better uses. because 1he Precise Plan will supercede the zonina desianation of the si1e. While the needs of the Landbank site and developer have driven staffs' research and problem- solving approach in this matter, the amended procedures for reviews and approvals in the Otay Valley Road project area would extend beyond this specific project. Other developments moy use o similar process. Currently, the only other Otay Valley Road project intended for development as a Precise Plan project is Phase II of the Auto Park. This amendment would not affect its review process, since auto dealers are a conditional use in the IL zone and, under the amendment, Special Use Permits are required to re1urn for public review before the Agency. However, future projects unknown at this time may qualify for the streamlined phase approval process 1he amendment would allow. Additionally, slaff will explore the applicability of this approach for olher redevelopmen1 project areas. Staff believes a streamlined approach to the entitlement and OPA approval process is justified in some instances. Where the Design Review Committee, Planning Commission and Agency have thoroughly reviewed and approved a dc.cl513,,,cl,t Plejcd,Precise Plan. it is redundant to return with minor reviews 1hat exoctly mirror prior officio I action. By allowing a more efficient approach, both staff and officio I time can be saved, as well as developers' expense. Both the Procedures Manual and the Implementation Plan/Design Manual of the Redevelopment Plan states and imply that revision 10 the review process 10 streamline approvals in the interest of the public and developer needs is desirable. Because all CEQA requirements and environmental reviews will be comple1ed in the Precise Plan process, the Planning and Environmental Monager for the Community Development Department has determined 1hat no new environmental impacts that have not been previously addressed will occur. FISCAL IMPACT NfAo The approvol of the resolution should result in a more efficien1 and streamlined development approval process for loraer multi-parcel development in the Otay Valley Road Proiect Area that. in turn. should result in these potentiol developmen1s beina more financially feasible for redevelopmen1 and save staff time. PAGE 4, ITEM NO.: MEETING DATE: 04/25/01 ATTACHMENTS Otay Valley Road Redevelopment Project Procedures Manual Otay Valley Road Redevelopment Project Area Implementation Plan/Design Manual Addendum Map of Otay Valley Road Project Area J\COMMDEV\STAFF.REP\OS-Ol-Ol\OYR PROCEDURES MANUAl-R&S.doc RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE EXTENSION OF THE SPECIAL USE PERMIT SUPO-01-01 UNTIL DECEMBER 31,2017 FOR ECOLOGY AUTO WRECKING LOCATED AT 800-834 AND 825 ENERGY WAY WHEREAS, on November 10, 2000 the City of Chula Vista did receive an application for an extension of an existing Special Use Permit, SUPO-01-01 (formerly identified as CPE 53, SLVP 24, and PCC-73-27) until December 12, 2025, and this constitutes a formal application; and WHEREAS, Conditional Use Permit #PCC-73-27, effective date December 12, 1973 originally allowed the automotive recycling facilities located at 800-834 and 825 Energy Way and known as Ecology Auto Wrecking; and WHEREAS, the City of Chula Vista, the Redevelopment Agency of the City of Chula Vista, and the applicant entered into a Settlement Agreement relating to the Otay Valley Road widening on December 8, 1992, which resulted in the immediate extension of the previously mentioned permit until 2005; and WHEREAS, the Settlement Agreement limits the conditions of the Special Use Permit to the following: required off street parking; landscape planting and irrigation; and fencing and other appropriate comparable cost screening measures to ameliorate adverse visual impacts; and WHEREAS, annual review of the project indicates that all conditions of the previously issued permit have been met; and WHEREAS, the Settiement Agreement further indicates that if at any time between the effective date of this Agreement and December 31,2017 the City denies a Plaintiff a Special Permit, or other such required permit which may be necessary for the continued use of the Lots for the use identified above upon the conditions herein specified, then such Plaintiff may give the City written notice of the rescission of the Agreement and ... the action may be recommenced in its entirety; NOW THEREFORE BE IT RESOLVED that Special Use Permit SUPO-01-01 is hereby APPROVED with an expiration date of December 31, 2017 according to the following findings and subject to the conditions contained herein: FINDINGS 1. That the proposed use at the particular location is necessary or desirable to provide a service or facility which contributes to the general well being of the neighborhood or the community in that the recycling of End Life Vehicles (ELVs) results in cost savings in recycled parts, energy conservation, parts availability, reduction in abandoned vehicles and land filling, raw material supply, and reduced insurance rates via reducing costs of repair and providing a market for totaled vehicles. Ecology Auto Wrecking also acts as an approved oil recycling center. 2. That such use will not, under the circumstances of the particular case, be detrimental to the health safety or general welfare of persons residing or working in the vicinity, or injurious to property or improvements in the vicinity since the land use is considered an interim use, and is regulated for safety and health concems via local and state agencies, as well as via the conditions of this permit, which speak to adequate offstreet parking, landscaping, and screening of the visual impact. Surrounding land uses include other auto wreckers, the landfill, auto auctioneers, contractors yard, and construction material recycling. 3. That the proposed use will comply with the regulations and conditions specified in the Municipal Code for such use as modified by the Settlement Agreement. 4. That the granting of the special use permit will not adversely affect the General Plan of the City of Chula Vista or the adopted plan of any governmental Agency since the General Plan is Industrial and the Otay Valley Road Redevelopment Implementation Plan recognizes auto wrecking as a transitional use. CONDITIONS 1. Required off street parking shall be maintained in a manner consistent with the Chula Vista Municipal Code. 2. Landscaping and irrigation shall be maintained in a manner consistent with the Landscape manual. 3. Fencing and other appropriate comparable-cost screening measures to ameliorate adverse visual impacts shall be maintained. 4. The applicant shall and does hereby agree to indemnify, protect, defend, and hold harmless City, its Council members, officers, employees, agents and representatives. from and against all liabilities, losses, damages, demands, claims, and costs, including court costs and attorney fees (collectively, liabilities) incurred by the City arising, directly or indirectly, from a)City approval and issuance of this Special Land Use Permit extension. b)City's approval or issuance of any other permit or action, whether discretionary or non discretionary, in connection with the use contemplated herein, and without limitation, any and all liabilities arising from the operation of the facility. Applicant shall acknowledge their agreement to this provision by executing a copy of this Special Land Use Permit where indicated below. The applicant's compliance with this provision is an express condition of this permit and this provision shall be binding on any and all of the applicant's successors and assigns. EXECUTION AND RECORDATION OF RESOLUTION OF APPROVAL The property owner and the applicant shall execute this document by signing the lines provided below, said execution indicating that the property owner and applicant have each read, understood, and agreed to the conditions contained herein. Upon execution, this document shall be recorded with the County Recorder's Office of the County of San Diego. and a signed, stamped copy returned to the Community Development Department. Failure to return a signed and stamped copy of this recorded document within ten days of recordation to the Community Development Department shall indicate the property owner/applicant's desire that the Project, and the corresponding application for building permits and/or a business license, be held in abeyance without approval. Said document shall also be on file in the Community Development Department's files and known as Resolution No_. Signature of Property Owner/Applicant. Date Signature of Property Owner/Applicant Date CONSEQUENCES OF FAILURE OF CONDITIONS If any of the forgoing conditions fail to occur, or if they are, by their terms to be implemented and maintained over time, and any of such conditions fail to be so implemented and maintained according to their terms, the Redevelopment Agency shall have the right to revoke or modify all approvals herein granted; deny or further condition issuance of future building permits; deny, revoke, or further condition all certificates of occupancy issued under the authority of approvals herein granted; institute and prosecute, litigate, or compel their compliance; or seek damages for their violations. Applicant or successor in interest gains no vested rights by the Redevelopment Agency approval of this Resolution. INVALIDITY; AUTOMATIC REVOCATION It is the intention of the Redevelopment Agency that its adoption of this Resolution is dependent upon the enforceability of each and every term, provision, and condition herein stated; and that in the event that anyone or more terms, provisions, or conditions are determined by a Court of competent jurisdiction to be invalid, illegal, or unenforceable, this resolution and the permit shall be deemed to be automatically revoked and of no further force and effect ab initio. PRESENTED BY APPROVED AS TO FORM BY Chris Salomone Director of Community Development John M. Kaheny Agency Attorney PLANNING COMMISSION AGENDA STATEMENT Item Meeting Date 04/25/01 PUBLIC HEARING: Consideration of an extension of an existing Special Use Permit for the Continuation of an Auto Dismantling and Recycling Business at 800-834 and 825 Energy Way and Resolution_Recommending that the Redevelopment Agency Board approve the proposed Special Use Permit extension in accordance with the attached draft Agency Resolution based on the findings and subject to the conditions contained therein. The project is the continuation of an existing use, Conditional Use Pennit #PCC-73-27, effective date December 12, 1973, for automotive dismantling and the sale of auto parts, and scrap metal collection, compaction, cutting, shredding in preparation for the scrap market, and other related uses. The project was approved by the Redevelopment Agency for a thirteen year extension on December 8, 1992 which moved the expiration date of the Penn it until 2005. On November 10, 2000 staff received an application for an extension of this pennit until 2025. The Planning and Environmental Manager for the Community Development Department has detennined that no new environmental impacts that have not been previously addressed will occur, and the project is consistent with the previous environmental review. RECOMMENDATION: Adopt attached Resolution _ recommending that the Redevelopment Agency approve the proposed Special Use Pennit Extension in accordance with the attached draft Redevelopment Agency Board Resolution based on the findings and subject to the conditions contained therein. DISCUSSION: 1. Site and Proiect Characteristics The proposed project is an extension of the existing Special Use Penn it for the existing automotive recycling facilities located at 800-834 and 825 Energy Way, doing business as Ecology Auto Wrecking, Inc.. The site's discretionary history for this use goes back to Conditional Use Penn It # PCC -73-27, effective date December 12,1973, which was extended at the direction of a Settlement Agreement relating to the Otay Valley Road widening, entered into by both the City of Chula Vista, the Redevelopment Agency, and the applicant, on December 8,1992 for a period of 13 years until 2005. Under the tenns of the Settlement Agreement the City of Chula Vista was to issue a Special Use Pennit (SUP) conditioned only by code required off street parking; landscape planting and irrigation; and fencing and other appropriate comparable cost screening measures to ameliorate adverse visual impacts. The Agreement further states that the applicant is not required to deviate substantially from the plans previously submitted, reviewed, and recommended for approval. The Settlement Agreement, Section III K, indicates that "if at any time between the effective date of this Agreement and December 31, 2017 the City denies a Plaintiff a Special Pennit, or other such required pennit which may be necessary for the continued use of the Lots for the use identified above upon the conditions herein specified, then such Plaintiff may give the City written notice of the rescission of the Agreement and ... the Action may be recommenced in its entirety..." "._._~...._.._.._.- .-....---.. ----_.._---~_..._--_...-- 2. General Plan, Zoninq. and Land Use GENERAL PLAN ZONING CURRENT LAND USE Site: Otay Valley Road Auto Recycling Research and Limited Redevelopment (OVR) Industrial IP (Industrial Precise Plan) North: Open Space S80 Otay Disposal Site South: Research and Limited OVRfIP vacant Industrial East: OVRfIP Construction Residue RecyclingNehicle Auctions West: OVRfIP Auto Recycling/Contractors Yard 3. Proposal No additional physical construction activities are proposed at this time. Applicant is requesting an extension of their existing Special Use Permit from 2005 until December 12, 2025. Staff supports an extension until December 31, 2017 to coincide with the Settlement Agreement. 4. Analvsis The benefits to the society as a whole of auto recycling of end life vehicles (ELVs) is manifested in obvious cost savings in recycled parts, energy conservation, parts availability, reduction in abandoned vehicles and land filling, raw material supply, and reduced insurance rates via reducing costs of repairs and providing a market for totaled vehicles. In addition, Ecology Auto is also an approved location as an authorized State of Califomia and City of Chula Vista oil recycling center. The administration of the "Old Vehicle Buy Back program" for the County of San Diego/Air Pollution Control District occurs here. Annual review by City staff (Community Development and Code Enforcement performed a compliance inspection on May 24, 2000), as well as a complete inspection of the site as part of this permit, indicates this operation sets the standard locally for this use for stormwater filtration, fire suppression measures, as well as hazardous waste extraction, and storage and handling of vehicles. As this permit is an extension of an existing permit that has a history of over 25 years, the project is and has been supported by the Chula Vista General Plan, the Otay Valley Road Redevelopment Plan, and the City's Zoning Ordinance. The existing Settlement Agreement further delineates the City of Chula Vista's responsibility and limits in this area as reflected in the Agency Resolution. Conclusion: The proposed land use is supported by the Chula Vista General Plan, the Otay Valley Road Redevelopment Plan, and the City's Zoning Ordinance, as well as the Settlement Agreement between the City of Chula Vista, the Redevelopment Agency, and the applicant. As the Settlement Agreement speaks to a period inclusive of December 31,2017, staff supports an extension (a little over 12 years from the present expiration date) to this date to meetthe terms and conditions of that agreement, rather than the 20 year period requested by the applicant. Attachments 1. Planning Commission Resolution 2. Redevelopment Agency Resolution 3. Settlement Agreement (Agency Resolution 1290/City Resolution 16924) 4. Location Map - RESOLUTION NO. RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CHULA VISTA RECOMMENDING THAT THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AMEND THE OTAY VALLEY ROAD REDEVELOPMENT PROJECT PROCEDURES MANUAL SECTION III B (RULES AND REGULATIONS FOR THE FILING AND PROCESSING OF PLANS AND PROPOSALS FOR THE REDEVELOPMENT OF THE OTAY VALLEY ROAD PROJECT AREA, MAJOR PROJECTS) TO ADD SUB- PARAGRAPH 3, PRECISE PLAN PROJECTS AND AMEND THE OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA IMPLEMENTATION PLAN/DESIGN MANUAL ADDENDUM, BY ADDING SECTION 5.3(5), ALLOWING FOR THE ADMINISTRATIVE APPROVAL OF DESIGNS AND OWNER PARTICIPATION AGREEMENTS WITHIN AGENCY APPROVED PRECISE PLAN DEVELOPMENTS WHEREAS, the Otay Valley Road Redevelopment Project Procedures Manual is a supportive document to the Otay Valley Road Redevelopment Plan; and WHEREAS, the Procedures Manual allows for revisions and amendments to keep it responsive to the changing provisions and requirements of the Redevelopment Plan and Implementation Plan/Design Manual, as well as responsive to the public and the needs of developers and property owners in the Project Area; and WHEREAS, the use of a Precise Plan/Master Owner Participation Agreement process for larger scale developments made up of multiple parcels and/or multiple ownership allows for greater responsiveness to the public interest and needs of the developers and property owners; and WHEREAS, development projects consisting of multiple parcels and/or multiple property owners are important to the elimination of blight in the Otay Valley Road Redevelopment Project Area; and WHEREAS, the Otay Valley Road Redevelopment Plan works to lessen the impacts of blighting conditions, including the lack of incentives to improve or re-habilitate unproductive land and to correct past detriments to development caused by faulty planning; WHEREAS, the Planning and Environmental Manager of the Community Development Department has determined that no new environmental impacts that have not been previously addressed will occur; NOW, THEREFORE, BE IT RESOLVED the Planning Commission of the City of Chula Vista recommends that the Redevelopment Agency of the City of Chula Vista amend The Otay Valley Road Project Procedures Manual, Section III B, adding sub-paragraph 3: "Precise Plan Projects", and amend the Otay Valley Road Redevelopment Project Area Implementation Plan/Design Manual Addendum, by adding Section 5.33(5), as follows, in substantially the following form, which such changes as the City Attorney shall require: Precise Plan Proiects: All projects deemed to require a Precise Plan must be presented to the Redevelopment Agency for consideration. Once the Design Review Committee's and the Planning Commission's recommendation have been established, the proposal shall be placed on the next available Redevelopment Agency agenda. The standards within the Precise Plan shall serve as the zoning and design guidelines of the project and shall be consistent with the General Plan. The Redevelopment Agency shall approve, conditionally approve, or deny the Precise Plan through a Master Owner Participation Agreement (Appendix E). Thereafter, as phases of a Precise Plan project are submitted to the Planning Department and the Redevelopment Agency for review, Design Review approval and Phase OPA approval shall be granted administratively at the staff level, based on the following conditions: 1) that the Phase plan exactly follow the Precise Plan approved in the Master Owner Participation Agreement by the Redevelopment Agency & 2) that no conditional or special use permit is required. PRESENTED BY APPROVED AS TO FORM BY Chris Salomone Director of Community Development John M. Kaheny Agency Attorney H:\HOME\COMMDEVlRESOS\RESO - AGENCY DOWNTOWN PBID.doc