HomeMy WebLinkAboutReso 2022-276 DocuSign Envelope ID:9316BD9B-3E11-4F37-AD1B-A82C23475584
RESOLUTION NO. 2022-276
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN EXCLUSIVE NEGOTIATING
AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND
HOMEFED, LLC FOR THE UNIVERSITY-INNOVATION
DISTRICT PROJECT
WHEREAS,the City of Chula Vista(the"City")has long had a goal of developing a higher
education presence in the City; and
WHEREAS, the City owns certain real property comprised of approximately 383 acres
located in the Otay Ranch and Eastlake communities (adjacent to Planned Villages 9, 10 and 11),
in the City of Chula Vista, California (the "Property), as depicted in Attachment No. 1 attached to
the ENA (defined below); and
WHEREAS, the City wishes to foster the development of the University-Innovation
District Project at the Property, as more particularly described in the Term Sheet (the "Term
Sheet"), which is attached to the ENA as Attachment No. 2 (the "Project"); and
WHEREAS, the City adopted the University-Innovation District Sectional Planning Area
Plan(the"SPA Plan")to define the vision, land use character and mix, design criteria,pedestrian,
bike, and vehicular circulation systems, and the infrastructure requirements for an approximately
10 million-square-foot University-Innovation District that will ultimately serve 20,000 students
with supporting uses including office, retail, residential and research space; and
WHEREAS, the City approved the SPA Plan for the Property and on November 13, 2018,
approved that certain certified Environmental Impact Report 14-01 (SCH No. 2014121097) (the
"EIR") for the Project; and
WHEREAS, the City wishes to explore an arrangement with a land developer to serve as
the master developer for the Project, given the complexity and long-term development horizon for
the Project and certain anticipated costs and performance efficiencies; and
WHEREAS, the City has come to the conclusion for the reasons set forth below, that
HomeFed,LLC,a Delaware limited liability company("HomeFed"),is uniquely qualified to serve
as the master developer for the Project and that a sole-source procurement of HomeFed to serve in
this capacity is justified; and
WHEREAS, HomeFed has a proven track record of successful and award-winning
development, and
WHEREAS,HomeFed has familiarity with Otay Ranch and the Project, given its extensive
and long-term land holdings near and adjacent to the Property; and
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Resolution No. 2022-276
Page No. 2
WHEREAS, HomeFed has significantly demonstrated financial strength and stability as a
wholly-owned subsidiary of Jefferies Financial Group Inc.,which is a publicly-traded company; and
WHEREAS, HomeFed has an established effective relationship with City staff based on
mutual trust, cooperation and respect; and
WHEREAS, HomeFed shares the City's interest in exploring and negotiating the possible
terms and conditions under which HomeFed would act as the master developer for the Project; and
WHEREAS, HomeFed is willing to invest substantial time and resources towards the
negotiation of a Master Developer Agreement (the "MDA") with the City; provided that City is
willing to negotiate exclusively with HomeFed for a specified time period on the terms and
conditions as provided in the Exclusive Negotiating Agreement(the"ENA")between the City and
HomeFed, the form of which has been negotiated by City staff and HomeFed, in substantially the
form presented to the City Council herewith; and
WHEREAS, HomeFed and City have negotiated the terms of the Term Sheet; and
WHEREAS,the Term Sheet sets forth certain primary terms to be included in the MDA; and
WHEREAS, due to the unique nature of the proposed Project, which the City believes will
foster economic development and educational advancement and provide a valuable amenity for
the citizens of the City of Chula Vista, as well as HomeFed's unique "master developer"
qualifications (described above), the City Council desires to approve the ENA with HomeFed.
NOW, THEREFORE, BE IT RESOLVED, based on the recitals set forth above:
1. The City Council finds HomeFed to be uniquely qualified for the purposes of
entering into an Exclusive Negotiating Agreement and, potentially, a sole-source candidate to act
as master developer of the Property.
2. Based on this finding, to the extent applicably, the City Council waives the
competitive bidding processes in Chula Vista Municipal Code sections 2.56.070 A and 2.56.110
as impractical and determined that the City's interests will be materially better served by working
exclusively with HomeFed under the terms of the ENA; and
3. The City Council hereby approves the ENA between the City and HomeFed
regarding the planning and development of infrastructure and horizontal improvements supporting
the ultimate development of the University-Innovation District Project in the form presented,with
such minor modifications as may be required or approved by the City Attorney, a final copy of
which shall be kept on file with the City Clerk.
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Resolution No. 2022-276
Page No. 3
Presented by Approved as to form by
DocuSigned by: DocuSigned by:
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F4665CABC5014C0._ CF406508504446F...
Maria V. Kachadoorian Glen R. Googins
City Manager City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 6th day of December 2022 by the following vote:
AYES: Councilmembers: Cardenas, Galvez, McCann, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
DocuSigned by:
062BFD7C0386456_.
Mary Casillas Salas, Mayor
ATTEST:
EDocuSigned by:
1,3074D104EAF342E
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. 2022-276 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 6th day of December 2022.
Executed this 6th day of December 2022.
EDocuSigned by:
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Kerry K. Bigelow, MMC, City Clerk