HomeMy WebLinkAboutReso 2022-043RESOLUTION NO. 2022-043
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA WAIVING THE CITY’S CONSULTANT
SELECTION PROCESS, APPROVING A TWO-PARTY
AGREEMENT BETWEEN THE CITY AND CBRE GROUP,
INC. FOR REAL ESTATE ADVISEMENT, MARKETING
AND BROKERAGE SERVICES AND APPROPRIATING
$653,000 IN FUNDS THEREFOR
WHEREAS, City desires to attract and locate a multi-institutional, bi-national university
in Eastern Chula Vista on 383.7 acres of City-owned land (“University-Innovation District”)
which is located adjacent to 432.9 gross acres of land that comprise Villages 9 and 10 under the
ownership of HomeFed Development Corporation (“HomeFed”)—the uniquely qualified
developer of which City is evaluating a development partnership with to facilitate the
development of the University-Innovation District on a combined-ownership area of
approximately 560 developable acres across 816.6 gross acres; and
WHEREAS, on June 8, 2020, The University Subcommittee authorized staff to draft a Master
Development Agreement with HomeFed for City Council consideration to continue to make tangible
and expeditious progress towards reaching an amicable term sheet and subsequent resulting
agreements, the assistance of a professional real estate firm would assist in negotiations and provide
trusted advisement and marketing services; and
WHEREAS, City requires the expertise of a professional services consultant to conduct
Real Estate Consulting and Negotiation Services to evaluate and provide specialized expertise,
advisement and negotiation services between City and HomeFed; and
WHEREAS, City requires the expertise of a professional services consultant to act as a
landlord representative for the City and provide marketing services to leverage CBRE’s extensive
network of occupiers, higher education, life sciences, and tech relation ships, to ensure the
Innovation District will be marketed to both local firms looking to relocate or add additional space,
and national/international firms looking to enter the Chula Vista market or expand their current
presence; and
WHEREAS, Consultant is the largest and most successful commercial real estate services
firm in the world, with significant and varied resources, including a dedicated Public Institutions
Education Solutions business group which has advised over 100 non-federal agencies and
universities on complicated and high-profile projects, and consultant provides access to
development, university, public-private partnership specialists and local market experts to execute
a transaction in the best interests of the City; and
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Resolution No. 2022-043
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WHEREAS, based upon the above-described qualifications, performance capabilities and
experience, and the substantial work that Consultant has already performed for City under a
separate but related contract regarding the University-Innovation District project, City has
determined that Consultant is uniquely qualified to perform the Required Services and has waived
the City’s competitive bidding requirements pursuant to Chula Vista Municipal Code Section
2.56.070(B)(3) (City’s interests are better served by an alternative procurement mechanism) and
2.56.070.B(4) (sole source exemption); and
WHEREAS, because of the critical importance of the project and significant anticipated
economic impact as a result of the University -Innovation District being realized, the City
agrees to pa y the consultant’s cost of up to $653,500 (six hundred fifty three thousand five
hundred dollars) for professional real estate services to assist in negotiating the terms for a
Master Development Agreement with HomeFed and a Marketing Plan for marketing the
University-Innovation District project to both institutions and industry).
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista,
hereb y:
1. Finds with respect to the proposed two-party agreement (“Agreement”) between the
City and CBRE Group, Inc. (“CBRE”) for real estate advisement, marketing and
brokerage services (“Agreement”), based on the facts set forth above, that City’s
interests are better served by an alternative procurement mechanism (per CVMC
2.56.070(B)(3) and that CBRE is uniquely qualified to perform the proposed services
(per CVMC 2.56.070.B(4)), and therefore waives the City’s consultant selection
process with respect to the Agreement; and
2. Approves the Agreement in the form presented, with such minor modifications as may
be required or approved by the City Attorney, a cop y of which shall be kept on file in
the Office of the Cit y Clerk; and
3. Appropriate $653,500 from the funds contributed by HomeFed Village III Master, LLC
per the Development Agreement approved by City Council on July 13, 2021 by
Ordinance No. 3505 for purposes of funding the real estate advisement and marketing
portion of that Agreement (4/5 Vote Required); and
4. Authorizes and directs the City Manager to execute both the Agreement and an
Exclusive Listing Agreement with CBRE therein contemplated in order to implement
the brokerage services portion of the Agreement, in a final form approved by the City
Attorney.
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Presented by Approved as to form by
Eric C. Crockett Glen R. Googins
Deputy City Manager/Director of Economic City Attorney
Development
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 15th day of February 2022 by the following vote:
AYES: Councilmembers: Cardenas, Galvez, McCann, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: Padilla
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. 2022-043 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 15th day of February 2022.
Executed this 15th day of February 2022.
Kerry K. Bigelow, MMC, City Clerk
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