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HomeMy WebLinkAboutOrd 2021-3505ORDINANCE NO. 3505 ORDINANCE OF THE CITY OF CHULA VISTA APPROVING THE SECOND AMENDMENTS TO THE DEVELOPMENT AGREEMENTS BETWEEN THE CITY OF CHULA VISTA AND HOMEFED VILLAGE III MASTER, LLC AND HOMEFED OTAY LAND II, LLC AND OTAY LAND COMPANY, LLC AND HOMEFED VILLAGE 8, LLC I. RECITALS A. Project Site WHEREAS, the area of land that is the subject of this Ordinance is diagrammatically represented in Exhibit A attached hereto and incorporated into this Ordinance, and commonly known as Village 3 (Escaya), and for the purpose of general description herein consists of 484.6 acres within the Otay Ranch Planned Community (Project Site); and B. Project; Application for Discretionary Approvals WHEREAS, a duly verified application was filed with the City of Chula Vista Development Services Department on May 29, 2020 by HomeFed Village III Master, LLC/FlatRock Land Company, LLC (the “Applicant” or “Owner”) requesting approval of the Village 3 and a Portion of Village 4 Sectional Planning Area (SPA) Plan amendment to expand the boundary of the SPA to include parcel R-20 (a.k.a. the “FlatRock” parcel) and rezone three parcels from professional & office, medium residential and light industrial to “High Residential,” “Medium- High Residential,” and “Medium-High Residential,” respectively, redistribute residential unallocated, unused and transfer units (418 units) among Village 3 parcels; and WHEREAS, due to proposed amendments in the expanded boundary, proposed modifications in zoning and resulting increase in Village 3 units, therefore require modifications to the Development Agreement between the City of Chula Vista and HomeFed Village III Master, LLC and HomeFed Otay Land II, LLC approved by Ordinance No. 2700 (City Clerk Document No. C097-014) and first amendment on January 14, 2015, recorded as Document No. 2015-0015682 with the San Diego County Recorder’s Office; and WHEREAS, this action further requires modifications to the Development Agreement between the City of Chula Vista and Otay Land Company, LLC and HomeFed Village 8, LLC recorded on May 12, 1997, as Document No. 1997- 0219970 with the San Diego County Recorder's Office and first amendment on October 15, 2014, recorded as Document No. 2014-0446474 with the San Diego County Recorder’s Office; and DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 Ordinance No. 3505 Page No. 2 C. Environmental Determination WHEREAS, the City’s Director of Development Services has reviewed the project for compliance with the California Environmental Quality Act (CEQA) and determined that the Village 3 and a Portion of Village 4 project is substantially covered in the previously certified Final Environmental Impact Report for the University Villages EIR (FEIR 13-01) (SCH #2013071077) and that the FlatRock parcel is substantially covered in the Otay Ranch Village 2, 3 and a Portion of 4 EIR (FEIR02-02) (SCH #2003091012), that only minor technical changes or additions to FEIR 13-01 are necessary, and that none of the conditions described in Section 15162 of the State CEQA Guidelines calling for the preparation of a subsequent document have occurred; therefore, the Director of Development Services has caused the preparation of an Addendum to FEIR 13-01 (IS20-0003) for consideration; and WHEREAS, the City Council has considered the Addendum and hereby finds that the Addendum to the FEIR has been prepared in accordance with the requirements of CEQA, and the Environmental Procedures of the City of Chula Vista; and D. Planning Commission Record of Application WHEREAS, the Director of Development Services set the time and place for a public hearing on the project, and notice of the public 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 500 feet of the exterior boundary of the Project Site at least ten (10) days prior to the public hearing; and WHEREAS, the Planning Commission held an advertised public hearing on April 28, 2021 on the project to adopt Resolution MPA20-00017 recommending that the City Council amend the Village 3 and a Portion of Village 4 SPA Plan, Tentative Maps (TMs), Public Facilities Financing Plan (PFFP), Fiscal Impact Analysis (FIA) and Development Agreements (DAs); and WHEREAS, the proceedings and all evidence introduced before the Planning Commission at the public hearing on the Project and the Minutes and Resolution resulting therefrom, are incorporated into the record of this proceeding; and E. City Council Record of Application WHEREAS, the City Clerk set the time and place for a public hearing on the project and notices of said hearing, together with its purposes given by its publication in a newspaper of general circulation in the City, and its mailing to property owners within 500 feet of the exterior boundaries of the Project Site at least ten (10) days prior to the public hearing; and DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 Ordinance No. 3505 Page No. 3 WHEREAS, the duly noticed and called public hearing on the Project was held before the City Council in the Council Chambers in the City Hall, Chula Vista Civic Center, 276 Fourth Avenue, to receive the recommendations of the Planning Commission, and to hear public testimony with regard to the same. II. NOW, THEREFORE, the City Council of the City of Chula Vista does hereby find, determine and ordain as follows: A. CONSISTENCY WITH GENERAL PLAN The City Council finds that the proposed amendment to the Village 3 and a Portion of Village 4 project (Village 3) SPA Plan and related documents are consistent with the City of Chula Vista General Plan. The General Plan envisions Village 3 as a vibrant transit-oriented mixed-use Village center serving the City and Otay Ranch master plan community. B. APPROVAL OF PROPOSED AMENDMENTS The City Council hereby approves the Second Amendment to the Development Agreement between the City of Chula Vista and HomeFed Village III Master, LLC and HomeFed Otay Land II, LLC as represented in Exhibit B attached hereto and incorporated herein by this reference and the Second Amendment to the Development Agreement between the City of Chula Vista and Otay Land Company, LLC and HomeFed Village 8, LLC as represented in Exhibit C attached hereto and incorporated herein by this reference. III. EFFECTIVE DATE This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. [SIGNATURES ON THE FOLLOWING PAGE] DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 Ordinance No. 3505 Page No. 4 Presented by Approved as to form by Tiffany Allen 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 13th day of July 2021, by the following vote: AYES: Councilmembers: Cardenas, Galvez, Padilla, and Casillas Salas NAYS: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: McCann 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 Ordinance No. 3505 had its first reading at a regular meeting held on the 15th day of June 2021, and its second reading and adoption at a regular meeting of said City Council held on the 13th day of July 2021; and was duly published in summary form in accordance with the requirements of state law and the City Charter. Dated Kerry K. Bigelow, MMC, City Clerk DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 7/29/2021 Exhibit A Locator Map DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897079.03/SD 256583-00002/5-27-21/jac/scn -1- RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: CITY OF CHULA VISTA 276 Fourth Ave. Chula Vista, CA 91910 Attention: City Clerk (Space Above For Recorder's Use) SECOND AMENDMENT TO RESTATED AND AMENDED PRE-ANNEXATION DEVELOPMENT AGREEMENT This SECOND AMENDMENT TO RESTATED AND AMENDED PRE-ANNEXATION DEVELOPMENT AGREEMENT (the "Second Amendment") is entered into and effective as of ______________________, 2021 (the “Effective Date”), by and between HOMEFED VILLAGE III MASTER, LLC, a Delaware limited liability company and HOMEFED OTAY LAND II, LLC, a Delaware limited liability company (the “Owner”) and the CITY OF CHULA VISTA, a political subdivision of the State of California (the “City”). RECITALS A. On or about March 18, 1997, City and SNMB, LTD. entered into that certain Amended and Restated Pre-Annexation Development Agreement ("Development Agreement") as approved by the City of Chula Vista by Ordinance No. 2700 and on file with the Chula Vista City Clerk’s office as Document No. C097-014. B. SNMB, LTD. subsequently transferred its interest in the Development Agreement to JJJ&K Investments Two, LLC, OV Three Two LLC and RR Quarry, LLC, which in turn transferred its interests in the Development Agreement to SSBT LCRE V, LLC, a Delaware limited liability company (“SSBT”). SSBT subsequently transferred its interest in the Development Agreement to HomeFed Village III, LLC, a Delaware limited liability company, which in turn transferred its interest in the Development Agreement to Owner. Said Owner’s property being described on Exhibit A and Exhibit B attached hereto and incorporated herein by this reference. C. On or about December 16, 2014, City and Owner entered into that certain First Amendment to Restated Amended Pre-Annexation Development Agreement recorded in the San Diego County Recorder’s Office on January 14, 2015 as Document No. 2015-0015682. D. The property subject to the Development Agreement is part of a master-planned community subject to the Otay Ranch General Development Plan (“GDP”) and Village 3 North and a Portion of Village 4 Sectional Planning Area (“SPA”) Plan, approved by the City in 2014 and amended in 2016 (“2016 SPA”), and commonly known as “Village 3 North.” Adjacent land not subject to the Development Agreement is also part of the GDP and within the Villages 2, 3 and Exhibit BDocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897079.03/SD 256583-00002/5-27-21/jac/scn -2- a Portion of Village 4 SPA Plan approved by the City in 2006 (“2006 SPA”) and commonly known as the “FlatRock Parcel.” E. City and Owner wish to further amend the Development Agreement as set forth herein. F. The City seeks to facilitate the creation of high-quality jobs and economic growth within the SR-125 corridor through development of sites within the University Innovation District SPA, Millenia (formerly Eastern Urban Center) SPA, the Otay Ranch Village 9 SPA, Otay Ranch Village 8 East SPA and/or the Otay Ranch Village 10 SPA by attracting industries and businesses that can accommodate high technology and large manufacturing businesses or academic, institutional, and innovation-related businesses that contribute to the diversification and stabilization of the local economy (“Economic Development Uses”). G. The City also seeks to expedite the construction of much needed rental and for-sale housing to respond to a broadly recognized shortfall of housing supply. H. The Owner proposes to amend the Chula Vista General Plan and the Otay Ranch General Development Plan (“GDP”) to change the existing General Plan land use designations on portions of the property subject to the Development Agreement from Office & Professional to Residential High and from Residential Medium to Residential Medium High designations. Concurrently, the owner of the FlatRock Parcel proposes General Plan and GDP changes to the existing designation on portions of its property from Research & Limited Industrial to Residential Medium High. The Owner further proposes to amend the Village 3 North and a Portion of Village 4 Sectional Planning Area (“SPA”) Plan and two new tentative maps consistent with the GDP described above. Collectively, these amendments and tentative maps (“Entitlements”) enable and accelerate development of housing opportunities for City residents in newly established residential neighborhoods with retail and community amenities. Owner is proposing to utilize existing, unallocated, and unused units previously approved within Village 3 as well as previously approved units to be transferred from Village 9 to Village 3. No new residential units are proposed. I. Moreover, the Owner proposes a financial contribution to the City to be used toward Economic Development Uses to advance City interests, addressed above, and serve the public by attracting high-quality job producing businesses and educational anchor institutions. J. The commitments of the Owner made in this Agreement allow the City to realize significant economic, social, or other public benefits. K. Unless otherwise defined herein, capitalized terms as used herein shall have the same meaning as given thereto in the Development Agreement. NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Owner and City agree as follows: 1.Term. The following language shall be added after the phrase "twenty (20) years" and before the phrase "(the term)" in the fourth sentence of Section 3 of the Development Agreement: DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897079.03/SD 256583-00002/5-27-21/jac/scn -3- “from ______, 2021, the effective date of this Second Amendment.” 2.Owner’s Financial Contribution. Not later than ninety (90) days from the later to occur of the following: (i) the date of written request of City following the Effective Date, and (ii) the expiration of all applicable statutes of limitations within which to file legal challenges to the Second Amendment, GDP and Entitlements concurrently approved by the City in connection therewith, with no such legal challenges having been filed, Owner shall contribute one million dollars ($1,000,000) to the City, which funds shall be used exclusively for Economic Development Uses (the “Initial Contribution”). Thereafter, Owner shall contribute an additional three million dollars ($3,000,000) to the City not later than thirty (30) days from the City’s written notice of the sooner to occur of the following: (i) the City’s issuance of the 224th certificate of occupancy to Owner for Otay Ranch Village 3, Neighborhood R-19, or (ii) the commencement of construction of an Economic Development Use as defined above and enacted by an action of the City Council (the “Remaining Contribution”). In any case, the Remaining Contribution shall not be paid to City sooner than eighteen (18) months from the Effective Date. If the Remaining Contribution has not been paid to City within thirty-six (36) months of the Effective Date, then the Remaining Contribution shall accrue compound interest at a rate of two percent (2%) per annum, until the date payment is remitted to the City. Any and all funds contributed to the City pursuant to this Agreement, including interest accrued thereon, shall be used exclusively for Economic Development Uses. Expenditures toward Economic Development Uses shall be at the City’s sole and absolute discretion and shall be subject to approval of the Chula Vista City Council. City and Owner agree that a minimum of one million dollars ($1,000,000) shall be used for the future planning, engineering, or marketing costs associated with development of University and Innovation District land. 3.No Further Modification. Except as set forth in this Second Amendment, all of the terms and provisions of the Development Agreement shall remain unmodified and in full force and effect. [Remainder of page intentionally left blank] DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897079.03/SD 256583-00002/5-27-21/jac/scn -4- IN WITNESS WHEREOF, this Second Amendment to Restated and Amended Pre-Annexation Development Agreement has been executed as of the day and year first above written. CITY OF CHULA VISTA, a political subdivision of the State of California By: Mary Salas, Mayor Attested By: Kerry K. Bigelow, City Clerk APPROVED AS TO FORM Glen R. Googins, City Attorney HOMEFED VILLAGE III MASTER, LLC, a Delaware limited liability company By: Name: Title: HOMEFED OTAY LAND II, LLC, a Delaware limited liability company By: Name: Title: DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897079.03/SD 256583-00002/5-27-21/jac/scn -5- ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of ______________________ ) On _________________________, before me, , (insert name of notary) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897079.03/SD 256583-00002/5-27-21/jac/scn -6- ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of ______________________ ) On _________________________, before me, , (insert name of notary) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897079.03/SD 256583-00002/5-27-21/jac/scn EXHIBIT “A” -1- DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897079.03/SD 256583-00002/5-27-21/jac/scn EXHIBIT “A” -2- DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897079.03/SD 256583-00002/5-27-21/jac/scn EXHIBIT “A” -3- DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897079.03/SD 256583-00002/5-27-21/jac/scn EXHIBIT “B” -1- DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897078.01/SD 256583-00002/5-27-21/jac/rch RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: CITY OF CHULA VISTA 276 Fourth Ave. Chula Vista, CA 91910 Attention: City Clerk (Space Above For Recorder's Use) SECOND AMENDMENT TO RESTATED AND AMENDED PRE-ANNEXATION DEVELOPMENT AGREEMENT This SECOND AMENDMENT TO RESTATED AND AMENDED PRE-ANNEXATION DEVELOPMENT AGREEMENT (Second Amendment) is entered into and effective as of _______________, 2021, by and between OTAY LAND COMPANY, LLC, a Delaware limited liability company, HOMEFED VILLAGE 8, LLC, a Delaware limited liability company, FLATROCK, LAND COMPANY, LLC, a Delaware limited liability company (the “Owner”) and the CITY OF CHULA VISTA, a political subdivision of the State of California (the “City”). RECITALS A. On or about May 12, 1997, City and The Otay Ranch, L.P., a California Limited Partnership (the "Original Owner") entered into that certain Restated and Amended Pre- Annexation Development Agreement (the “Development Agreement”) recorded in the San Diego County Recorder's Office on May 12, 1997, as Document No. 1997-0219970. B. Pursuant to sections 2.6, 15.1 and 16.1 of said Development Agreement, Owner acquired its interest in portions of the property subject to the Development Agreement, said property being described on Exhibit A and Exhibit B attached hereto and incorporated herein by this reference. C. On or about September 9, 2014, City and Owner entered into that certain First Amendment to Restated and Amended Pre-Annexation Development Agreement recorded in the San Diego County Recorder’s Office on October 15, 2014 as document no. 2014-0446474. D. City and Owner wish to further amend the Development Agreement as set forth herein. E. Unless otherwise defined herein, capitalized terms as used herein shall have the same meaning as given thereto in the Development Agreement. NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Owner and City agree as follows: Exhibit CDocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897078.01/SD 256583-00002/3-16-21/jac/rch -2- 1.Term. The following language shall be added to the end of the last sentence of the first full paragraph of Section 3 of the Development Agreement: "from ______, 2021, the effective date of this Second Amendment.” 2.No Further Modification. Except as set forth in this Second Amendment, all of the terms and provisions of the Development Agreement shall remain unmodified and in full force and effect. IN WITNESS WHEREOF, this Amendment has been executed as of the day and year first above written. CITY OF CHULA VISTA, a political subdivision of the State of California By: Mary Salas, Mayor Attested By: Kerry K. Bigelow, City Clerk APPROVED AS TO FORM Glen R. Googins, City Attorney OTAY LAND COMPANY, LLC, a Delaware limited liability company By: Name: Title: HOMEFED VILLAGE 8, LLC, a Delaware limited liability company By: Name: Title: FLATROCK LAND COMPANY, LLC, a Delaware limited liability company By: Name: Title: DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897078.01/SD 256583-00002/3-16-21/jac/rch -3- ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of ______________________ ) On _________________________, before me, , (insert name of notary) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897078.01/SD 256583-00002/3-16-21/jac/rch -4- ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of ______________________ ) On _________________________, before me, , (insert name of notary) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897078.01/SD 256583-00002/3-16-21/jac/rch EXHIBIT “A” -1- DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897078.01/SD 256583-00002/3-16-21/jac/rch EXHIBIT “A” -2- DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897078.01/SD 256583-00002/3-16-21/jac/rch EXHIBIT “A” -3- DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897078.01/SD 256583-00002/3-16-21/jac/rch EXHIBIT “A” -4- DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897078.01/SD 256583-00002/3-16-21/jac/rch EXHIBIT “A” -5- DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897078.01/SD 256583-00002/3-16-21/jac/rch EXHIBIT “A” -6- DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897078.01/SD 256583-00002/3-16-21/jac/rch EXHIBIT “A” -7- DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897078.01/SD 256583-00002/3-16-21/jac/rch EXHIBIT “A” -8- DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439 897078.01/SD 256583-00002/3-16-21/jac/rch EXHIBIT “B” -1- DocuSign Envelope ID: 85F7135E-718F-4A7D-9578-6F8D7B978439