HomeMy WebLinkAboutReso 2023-189
RESOLUTION NO. 2023-189
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN AGREEMENT FOR
DEFERRAL OF DEVELOPMENT IMPACT AND SEWER
CAPACITY FEES FOR SPRINGHILL SUITES HOTEL
BETWEEN THE CITY AND EASTLAKE HOSPITALITY
VENTURES LLC
WHEREAS, Eastlake Hospitality Ventures LLC is developing a 179-room Springhill
at 870 District Place; and
WHEREAS, the Project will be of public benefit by providing new, amenitized visitor
accommodations, creating jobs, and generating significant recurring annual Transient Occupancy
Tax revenues to the City; and
WHEREAS, Chula Vista Municipal Code Sections 3.50.160 and 3.54.160 provide for fee
deferral incentives regarding Eastern Transportation Development Impact Fees and Public
Facilities Development Impact Fees for hotel and motel projects; and
WHEREAS, the City of Chula Vista is separately authorized to defer Sewer Capacity Fees
pursuant to its general Charter City authority and its general police powers authority to act in the
public interest. Further, CVMC 3.45 requires the City to adopt a Master Fee Schedule, which
Schedule gives the City Council authority to waive or defer fees, and to impose terms and
conditions as may be deemed appropriate for such actions; and
WHEREAS, the proposed Agreement for Deferral of Development Impact and Sewer
fee deferral incentives to the Project by allowing for
deferral of $2,243,343.10 in Eastern Transportation Development Impact Fees, Public Facilities
Development Impact Fees, and Sewer Capacity Fees for no more than four (4) years. Deferral of
the fees will facilitate development of the Project and enable its attendant employment, visitor,
and public benefits; and
WHEREAS, the terms of the Agreement include interest accrual at a fair market rate of
three and one half percent (3.5%) per annum, with the principal and all interest accrued thereon,
due and payable forty-eight (48) months from the issuance of the Certificate of Occupancy for the
Project, with the obligation to repay evidenced by a promissory note is secured by a first priority
pledge of a bank account or brokerage account, whose minimum balance shall be maintained at a
level no less than the principal amount of deferred fees described above, or, alternatively, by a
deed of trust to be recorded against the property; and
WHEREAS, City staff recommends approval of the Agreement for Deferral of
Development Impact and Sewer Capacity Fees for the Springhill Suites Hotel Project; and
Resolution No 2023-189
Page No. 2
WHEREAS, the City Clerk set the time and place for the City Council to consider the
Agreement for Deferral of Development Impact and Sewer Capacity Fees for the Springhill Suites
Hotel Project, and notice of the consideration of the matter, together with its purpose, was properly
provided consistent with State law and City Codes; and
WHEREAS, the Chula Vista City Council has reviewed and considered all materials for
the Agreement for Deferral of Development Impact and Sewer Capacity Fees for the Springhill
Suites Hotel Project; and
WHEREAS, the matter was considered at the time and place as advertised in the Council
Chambers, 276 Fourth Avenue, before the Chula Vista City Council.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it approves the Agreement for Deferral of Development Impact and Sewer Capacity Fees,
between the City and Eastlake Hospitality Ventures LLC, in 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 Mayor to execute same.
\[SIGNATURES ON THE FOLLOWING PAGE\]
Resolution No. 2023-189
Page No. 3
Presented by Approved as to form by
Laura C. Black, AICP Jill D.S. Maland
Director of Development Services Lounsbery Ferguson Altona & Peak
Acting City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 5th day of December 2023 by the following vote:
AYES: Councilmembers: Cardenas, Chavez, Gonzalez, Preciado, and McCann
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
John McCann, 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. 2023-189 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 5th day of December 2023.
Executed this 5th day of December 2023.
Kerry K. Bigelow, MMC, City Clerk