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HomeMy WebLinkAboutReso 1986-12531 RESOLUTION NO. 12531 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING INTERIM FINANCING AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND BONITA LONG CANYON PARTNERSHIP IN CONJUNCTION WITH CHULA VISTA TRACT 86-3, BONITA LONG CANYON UNIT NO. 2, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT The City Council of the City of Chula Vista does hereby resolve as follows: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that that certain Interim Financing Agreement between THE CITY OF CHULA VISTA, a municipal corporation, and BONITA LONG CANYON PARTNERSHIP, in conjunction with Chula Vista Tract 86-3, Bonita Long Canyon Unit No. 2, dated the 5th day of June, 1986, a copy of which is attached hereto and incorporated herein, the same as though fully set forth herein be, and the same is hereby approved. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista be, and he is hereby authorized and directed to execute said agreement for and on behalf of the City of Chula Vista. Presented by Approved as to form by bn P. Li[g,[Sit~,~Director of Charles R. Gill, Assistant lic Works/City Engineer City Attorney 1657a ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, this 17th. doy of June 19 86 , by the following vote, to-wit: AYES: Councilmembers McCandliss, Cox, Malcolm, Moore, Campbell NAYES: Councilmembers None ABSTAIN: Counci lmembers None ABSENT: Counci 1 members None M Chula Visto 6~ City CleriC' ~ STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chulo Visto, Colifornio, DO HEREBY CERTIFY th(It the obove ond foregoing is o full, true ond correct copy of RESOLUTION NO. 12531 ,ond fhot the s(ime hos not been omendedor repe(iled DATED City Clerk CI'IY OF · IUIA, VISTA CC-660 THIS INTERIM FINANCING AGREEMENT ("Agreement") is entered into as of June ~___, 1986 between BONITA LONG CANYON PARTNERSHIP, a California general partnership ("Developer"), and the CITY OF CHULA VISTA, a municipal corporation (#City"), with reference to the following facts: A. City and Eastlake Development Company (a developer not associated with Developer) have previously entered into the Eastlake 1 Public Facilities Financing Plan ("Financing Plan") dated February 19, 1985. The Financing Plan has been filed with the City Clerk of the City as Document No. 0-2102 B. City and Eastlake Development Company have also entered into an Interim Facilities Financing Agreement dated December 19, 1985 (#Eastlake Interim Agreement") and the City and Eastlake Development Company have each agreed, pursuant to Paragraph 2 of the Eastlake Interim Agreement, to the provisions of Exhibit A to the Eastlake Interim Agreement, entitled #Eastlake Development Impact Fees" ("Exhibit A#) . Copies of the Eastlake Interim Agreement and Exhibit A have been filed with the City Clerk of the City as Document Nos. R-12307 and R-12409 , respec- tively. C. The Financing Plan and Exhibit A set forth a descrip- tion of certain public facilities needed to serve the eastern areas of the City as a result of the cumulative effect of development within the Eastlake Sectional Planning Area and other adjacent developments. D. Developer is developing land cove~red by CHULA VISTA TRACT 86-3, UNITS 2 through 7, inclusive, which land is adjacent to the Eastlake Sectional Planning Area. The City has approved a tentative map for CHULA VISTA TRACT 86-3, UNITS 2 through 7, inclusive, by its Council's Resolution No. 12285 (the #CVT 86-3 Map Resolution"). E. City has also approved Tentative Parcel Map 86-11 ("TPM 86-11") covering a portion of land shown on the tentative map for CHULA VISTA TRACT 86-3. F. Condition No. 24 of the CVT 86-3 Map Resolution requires Developer to enter into a Development Agreement with the City and Condition No. 6 of the City's resolution of approval of TPM 86-11 requires Developer to satisfy CVT 86-3 Map Resolution conditions. The parties intend this Agreement to satisfy Condition No. 24 with respect to UNITS 2 and 3 only of the CVT 86-3 Map Resolution and with respect to Condition No. 6 of the -1- resolution of approval for TPM 86-11; this Agreement shall be deemed a "development agreement# within the meaning of Condition No. 24 of the CVT 86-3 Map Resolution and Condition No. 6 of the resolution approving TPM 86-11. G. Condition No. 20 of the CVT 86-3 Map Resolution requires Developer to participate financially in the off-site construction of Central Avenue. These improvements are, however, covered by the Financing Plan and Exhibit A; the improvements to Central Avenue are covered by Item II 6 on Page 13 of Exhibit A. H. Condition No. 23 of the CVT 86-3 Map Resolution requires Developer to make certain off-site improvements to Otay Lakes Road, northwest of Developer's land. These improvements are, however, covered by the Financing Plan and Exhibit A; the improvements to Otay Lakes Road are covered by Item II 3 on Page 13 of Exhibit A. I. The City is presently considering various financing programs and alternatives to implement the methods of financing capital improvement projects for the construction of public infrastructure contemplated by the Financing Plan and Exhibit A. One such method of financing is the imposition of an impact fee as a condition to the issuance by the City of building permits for the construction of residential units within the geographic areas of the City generally east of Interstate 805, south of Bonita Road and north of the ridgeline generally midway between the proposed extensions of Telegraph Canyon Road and Orange Avenue (the "Impact Area"). J. It is intended that this Agreement impose an impact fee requirement on lots within UNITS 2 and 3 only of CHULA VISTA TRACT 86-3 and TPM 86-11 and that such fee be considered "interim" and subject to modification by the City (subject to the limitations stated in Paragraph 3 below) at such time as the Chula Vista City Council adopts a permanent impact fee schedule applicable to the Impact Area. K. It is intended that this Agreement satisfy the require- ments of Condition Nos. 20 and 24 of the CVT 86-3 Map Resolution with respect to UNITS 2 and 3 only, and Condition No. 6 of the resolution of approval of TPM 86-11 to the extent Condition No. 6 would apply Condition Nos. 20 and/or 23 of ~he CVT 86-3 Map Resolution to TPM 86-11. NOW, THEREFORE, the parties agree as follows: 1. Payment of Fee. Developer shall pay to the City an interim impact fee of $1,151.00 for each single-family residen- tial lot within CHULA VISTA TRACT 86-3, UNITS 2 and 3 or within Parcel Map 86-11 at such time as Developer applies for a building permit for construction on such lot. -2- as Developer applies for a building permit for construction on such lot. 2. Purpose of the Fee. The impact fees paid by Developer or others in the Impact Area shall be place-d in an interest bearing account and may be expended only for the purposes of providing the public facilities for which the fees were collected. The impact fees collected under this Agreement are for the construction of projects covered by Item I and Items II 1, 2, 3, 4, 5, 6, 7 and 8 on Page 13 of Exhibit A and as referred to in the Financing Plan (the "Covered Projects"). 3. Change in Fee Amount. The City shall have the right to change the impact fee (either interim or permanent) from time to time applicable to properties within the Impact Area for the Covered Projects. The Developer shall be obligated to pay any increase in impact fee amounts for lots for which a building permit has not yet issued or interim or permanent fees paid; provided, however, the total impact fee (interim or permanent) shall not exceed $3,000.00 per lot. 4. Impact Fees on Other Projects. The City will use its best reasonable efforts to collect like or similar impact fees pro rata (based on benefit) from other property owners of undeveloped property within the Impact Area so that Developer will not be placed in an unfair or noncompetitive situation. 5. Withhold of Permits. Developer agrees that the City shall have the right to withhold issuance of the building permit for any lot within UNITS 2 and 3 of CHULA VISTA TRACT 86-3 or within Parcel Map 86-11 unless and until the impact fee required hereunder is paid for such lot. 6. Termination. This Agreement shall remain in effect unless and until it is superseded by one or more of the financing programs authorized by the Financing Plan. Should any such alternative financing plans be utilized, the impact fees required hereunder shall either be eliminated or be reduced pro rata (as is appropriate) based upon such other sources of financing as may become available. 7. Increases to Interim or Permanent Impact Fees. Anything herein stated to the contrary notwithstanding, the impact fees (interim or permanent) payable hereunder shall be subject to annual review by the City Council and may be adjusted by the City Council in an amount not to exceed the percentage increases or decreases set forth in the Engineering News Record for the types of construction contemplated by the Covered Projects. No such increase or decrease shall apply to interim fees already paid for any lot. -3- 8. Satisfaction of Map Conditions. Condition Nos. 20 and 24 of the CVT 86-3 Map Resolution (both as to CHULA VISTA TRACT 86-3 and TPM 86-11) shall be deemed satisfied by the parties entering into this Agreement. 9. Credit for Otay Lakes Road Improvements. City shall credit Developer for impact fees otherwise due hereunder, the costs incurred by Developer for the improvements to Otay Lakes Road installed at Developer's expense pursuant to Condition No. 23 of the CVT 86-3 Map Resolution. Said improvements shall be commenced by Developer immediately upon completion of the undergrounding of utilities along Otay Lake-s Road as part of City's Capital Improvement Program, or within four (4) years, whichever first occurs. Developer shall, upon execution of this Agreement, post a bond with City in an amount sufficient to cover current estimated costs to complete the work called for in Condition No. 23, and shall keep said bond in effect until such time as the improvements have been accepted by City. Condition No. 23 shall be deemed satisfied upon execution of this Agreement and the posting of the bond contemplated herein. 10. Invalidity. If any material provision of this Agree- ment is held invalid, this Agreement will be automatically terminated unless, within fifteen (15) days after such provision is held invalid, the party holding rights under the invalidated provision affirms the balance of this Agreement in writing. This provision will not affect the right of the parties to modify or supersede this Agreement by mutual consent. 11. Assignment. Developer may assign its rights and transfer its obligations under this Agreement if such assignment and transfer is made as a part of the transfer, assignment, sale or lease of all or a portion of the lots within UNITS 2 and/or 3 of CHULA VISTA TRACT 86-3 and/or Parcel Map 86-11 and if the City consents to such transfer. Such consent shall not be unreason- ably withheld and shall be given if the transferee assumes the obligations of Developer hereunder in a manner reasonably satisfactory to the City. Upon such transfer, assignment and assumption the original Developer shall be deemed released from the obligation to pay any impact fees or adjustment to impact fees for lots so transferred. 12. Applicable Law - Attorney,s Fees. This Agreement shall be construed and enforced in accordance with the laws of the State of California. In the event of litigation between the parties arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to recover all attorney's fees, court costs and necessary disbursements made in connection with the litigation. 13. Notices. Ail notices, demands or other communications given pursuant to this Agreement shall be in writing and shall be -4- deemed to have been delivered upon (i) personal delivery to any officer of Developer or to the Office of the City Attorney of the City, or (ii) as of the third business day after mailing by United States Mail, postage prepaid, addressed as follows: If to Developer: Bonita Long Canyon Partnership 2727 Hoover Avenue National City, California 92050 Attention: Mr. Ken Baumgartner If to City: Office of the City Attorney City of Chula Vista 276 Fourth Avenue Chula Vista, California 92010 Attention: Mr. Thomas J. Harron This Agreement has been executed at San Diego County, California as of the date first written above. BONITA LONG CANYON PARTNERSHIP, a California general partnership By: McMILLIN DEVELOPMENT, INC., a California corporation, General Partner . By: HOME CAPITAL CORPORATION, a California corporation, General Partner / Approved as to form by CITY OF CHULA VISTA Charles R. Gill By Assistant City Attorney ized Agent -5-