HomeMy WebLinkAboutReso 2019-002RESOLUTION NO. 2019-002
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN AGREEMENT FOR
DEFERRAL OF DEVELOPMENT IMPACT FEES BETWEEN
THE CITY AND AYRES-MILLENIA, LP FOR $903,555 IN
FEES IN CONNECTION WITH A 135-ROOM HOTEL
PROJECT AT 1710 MILLENIA AVENUE
WHEREAS, development of hotels in eastern Chula Vista has been a challenge for
investors and developers due to the high cost of development and construction; and
WHEREAS, Ayres-Millenia, LP has secured financing to develop a 135-room hotel
project at 1710 Millenia Avenue (the “Project”) but requires the deferral of certain development
impact fees to a future point of stabilized operations in order for the project to be fiscally
feasible; and
WHEREAS, the proposed Project will be of public benefit by providing new, highly
amenitized visitor accommodations, creating jobs, and generating Transient Occupancy Tax
revenues to the City; and
WHEREAS, the proposed Agreement for Deferral of Development Impact Fees
(Agreement) provides necessary financial assistance by allowing for the deferral of
Transportation Development Impact Fees (TDIF), with a total deferral amount of $903,555.00;
and
WHEREAS, in accordance with Chula Vista Municipal Code Section 3.54.160.F.,
adopted October 2, 2018 by Ordinance 3440, a final determination of TDIF fees to be imposed
on the Project will be based on a traffic study to be conducted within the fourth year of Project
operation; and
WHEREAS, the terms of the Agreement include interest accrual at a fair market rate of
three and one half percent (3.5%) per annum, with the principal and all interest accrued thereon,
due and payable forty-eight (48) months from the issuance of the Certificate of Occupancy for
the Project, with repayment secured by a Deed of Trust recorded against the property/Project.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it hereby approves the Agreement for Deferral of Development Impact Fees, between
the City and Ayres-Millenia, LP, in the form presented, with such minor modifications as may be
required or approved by the City Attorney, a copy of which shall be kept on file in the Office of
the City Clerk, and authorizes and directs the Mayor to execute the same.
DocuSign Envelope ID: 0CAF3961-B4B2-49B3-AFE5-A9D112D6A650
Resolution No. 2019-002
Page No. 2
Presented by Approved as to form by
Kelly G. Broughton, FASLA Glen R. Googins
Director of Development Services City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 8th day of January 2019 by the following vote:
AYES: Councilmembers: Diaz, Galvez, McCann, Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2019-002 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 8th day of January 2019.
Executed this 8th day of January 2019.
Kerry K. Bigelow, MMC, City Clerk
DocuSign Envelope ID: 0CAF3961-B4B2-49B3-AFE5-A9D112D6A650