HomeMy WebLinkAboutReso 2022-108 DocuSign Envelope ID: F2C411 D8-DC1 B-4CC4-B476-9F29117A25AC
RESOLUTION NO. 2022-108
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN AGREEMENT FOR
DEVELOPMENT IMPACT AND SEWER CAPACITY FEES
(BAYFRONT RESORT AND CONVENTION CENTER)
BETWEEN THE CITY AND RIDA CHULA VISTA, LLC
WHEREAS, the City, RIDA Chula Vista, LLC (the "Developer"), and the San Diego
Unified Port District(the "Port District") entered into a Disposition and Development Agreement
for the Resort Hotel Convention Center Project (Chula Vista Bayfront Master Plan Parcel H-3)
(the "Project"), effective May 7, 2018; and
WHEREAS, the Project is comprised of(1) a resort hotel, consisting of no less than 1,570
rooms and no more than 1,600 rooms and related resort-level amenities (collectively, the
"Developer's Private Improvements"), (2) an attached approximately 275,000 square foot
convention center ("Convention Center") to be constructed and operated by Developer on behalf
of the City of Chula Vista Bayfront Facilities Financing Authority, formed by the City and the Port
for such purpose, and (3) a portion of the substantial public improvements required for
development of the Developer's Private Improvements and Convention Center(the "Developer's
Phase IA Infrastructure Improvements"), as more particularly described that certain Project
Implementation Agreement between the City, the Port, Developer, the Financing District (as
defined therein) and the JEPA (as defined therein) (the "PIA"); and
WHEREAS, as authorized by California Government Code section 66000, et seq.,the City
imposes various development impact fees in connection with the approval of a development
project for the purpose of defraying all or a portion of the cost of public facilities related to the
development project; and
WHEREAS, certain development impact fees applicable to this Project are set forth in the
Chula Vista Municipal Code ("CVMC") as follows: (1) CVMC Chapter 3.54 provides for the
transportation infrastructure related Bayfront Development Impact Fee (the"BFDIF"); (2) CVMC
Chapter 3.50 provides for certain other public facilities development impact fees ("PFDIF"); (3)
CVMC Chapter 13.14.090 provides for certain sewer capacity fees ("Sewer Capacity Fees"); and
(4) City Council Policy 478-01 provides for certain traffic signal fees ("Signal Fees"); and
WHEREAS, in accordance with City polices, rates and calculations, City and Developer
have agreed that Developer's total BFDIF, PFDIF, Sewer Capacity Fees and Signal Fees is $22.1
million(collectively,the"Project Development Fees Obligation"). The Parties have further agreed
that this amount shall be fixed at the date for issuance of the first building permit for the Project
and that the applicable rates for the fees shall not subject to increase; provided, however that, if
the first building permit for the Project is not issued prior to the City's next development impact
fee rate review and adjustment (currently scheduled to occur on or about, but no sooner than,
October 1, 2022) such amount shall be subject to change based upon the City's updated
development impact and/or capacity fees and any such changes shall be automatically incorporated
into the terms of this Agreement, including with respect to the final total amount of the Project
Development Fees Obligation; and
DocuSign Envelope ID: F2C411 D8-DC1 B-4CC4-B476-9F29117A25AC
Resolution No. 2022-108
Page No. 2
WHEREAS, the CVMC allows for Developer to receive credits towards the BFDIF
component of its Project Development Fees Obligation through the construction of BFDIF
qualified public improvements up to, but not in excess of, the BFDIF fees imposed; and
WHEREAS, through its construction of various components of Developer's Phase IA
Infrastructure Improvements, Developer is expected to generate approximately $15.5 million in
credits towards the BFDIF component of Developer's Project Development Fees Obligation, with
the final amount of credits to be determined upon Developer's completion of such improvements
which shall equal an amount (as determined pursuant to the PIA) approved by the City which is
equal to costs incurred for such improvements that are determined to be qualified for credits in
accordance with the City's BFDIF policies (the "Phase IA Construction Credit"). When the Phase
IA Construction Credit is offset against the BFDIF component of the Developer's Project
Development Fees Obligation, the remaining development fee obligation due and owing is
currently expected to be approximately$6.6 million(the"Net Development Fee Obligation"); and
WHEREAS, pursuant to the authority set forth in various sections of the CVMC and City
policies,including,without limitation Section 3.50.160,and the City's inherent authority as charter
city, the City is permitted, to defer the Net Development Fee Obligation upon request from a
developer, the making of certain findings and upon certain terms; and
WHEREAS, developer has requested that the City defer the Net Development Fee
Obligation in order to address funding sequencing issues and to make the Project financially
feasible; and
WHEREAS, the City Council has found and determined that the Project qualifies for the
requested fee deferral under CVMC Section 3.50.160.C, and other applicable standards in
consideration of(1)Developer's demonstrated need for the deferral to address funding sequencing
and overall Project feasibility challenges; and (2) the substantial public benefits of the Project in
furthering the desired objectives and goals of the City to facilitate development of the Chula Vista
Bayfront Master Plan area,job creation, and related economic development benefits to the public,
both at a local and regional level; and
WHEREAS, the City Council has also found and determined that the terms of this
Agreement are consistent with the requirements of CVMC Section 3.50.160.0 in that the Net
Development Fee Obligation (1) will bear interest at a fair market rate, such that the City will
receive an amount that is equal to, or greater than, the total amount of fees owed prior to the
deferral; and(2) the amount deferred is adequately secured by a written agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that,based upon the City Council findings and determinations set forth above,which such findings
and determinations are incorporated herein by this reference, the City Council approves the
Agreement for Deferral of Development Impact and Sewer Capacity Fees (Bayfront Resort and
Convention Center), between the City and RIDA Chula Vista, LLC, in substantially 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
City Manager to execute same.
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Resolution No. 2022-108
Page No. 3
Presented by Approved as to form by
E DocuSigned by: DocuSigned by:
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Tiffany Allen Glen R. Googins
Deputy City Manager/Director of Development City Attorney
Services
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 10th day of May 2022 by the following vote:
AYES: Councilmembers: Cardenas,Galvez,McCann,Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
EDocuSigned by:
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Mary Casillas Salas, Mayor
ATTEST:
DocuSigned by:
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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. 2022-108 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 10th day of May 2022.
Executed this 10th day of May 2022.
DocuSigned by:
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Kerry K. Bigelow, MMC, City Clerk