HomeMy WebLinkAboutReso 2024-241RESOLUTION NO. 2024-241
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROPRIATING FUNDS TO COMPLETE
CONSTRUCTION OF THE MILLENIA LIBRARY AND OFFICE
BUILDING AND ELIMINATING AN ASSOCIATED
INTERFUND LOAN BETWEEN THE TRUNK SEWER
CAPITAL RESERVE FUND AND THE DEVELOPER
CONTRIBUTION (PUBLIC BENEFIT) FUND
WHEREAS, on December 6, 2022, the City Council adopted Resolution Nos. 2022-273
through 2022-275, approving a Purchase and Sale Agreement with LMC-Millenia Investment
Company (“Chesnut”) to acquire 7.06 acres of undeveloped land on Lot 7 of Millenia located at
1775 Millenia Avenue (APN 643-060-57-00); approving a Project Development Agreement with
LMC-Millenia Investment Company to construct a 168,000 square foot class “A” library and
office building, a 6,100 square foot amenity building, a parking structure, related site work and
improvements; and making necessary budget amendments, authorizing interfund loans, and
appropriating $96.4 million for the project, respectively; and
WHEREAS, following the December 6, 2022 action of the City Council let the project out
to bid and selected McCarthy Building Companies (“McCarthy”) as the prime contractor; and
WHEREAS, during the initial contract negotiations with McCarthy, it was necessary to
eliminate the amenity building and parking structure from the scope of development and make
other value engineering decisions to control costs and keep the project within the December 6,
2022 appropriation; and
WHEREAS, due to a combination of cost overruns on the construction of the building’s
core and shell and development of the site, it is necessary to appropriate an additional $17,335,057
to complete construction of the building, including furnishing the library and constructing certain
tenant improvements for San Diego State University pursuant to a non-binding letter of intent
being considered by the City Council in conjunction with this item; and
WHEREAS, the December 6, 2022 action included an interfund loan from the Trunk Sewer
Capital Reserve Fund that relied upon $5,163,958 anticipated to be received in conjunction with
the future development of Otay Ranch Village 14; and
WHEREAS, Otay Ranch Village 14 has been converted into permanent conservation land
that will not be developed and the City will not receive the public benefit contribution previously
anticipated; and
WHEREAS, it is therefore necessary to replace the Otay Ranch Village 14 developer
contribution fees and eliminate the associated interfund loan; and
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Resolution No. 2024-241
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WHEREAS, there are sufficient monies in the Capital Improvement Fund to complete the
project due to one-time Fiscal Year 2023-24 General Fund revenues, including reimbursements
from other agencies as well as savings in other projects.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it amends the Fiscal Year 2024-25 CIP Program budget by appropriating $22,499,015 from
the available balance of the Capital Project Fund to CIP GGV0267 and eliminates the previously
approved interfund loan from the Trunk Sewer Fund (413) to the Developer Contribution (Public
Benefit) Fund (262) in the amount of $5,163,958.
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Resolution No. 2024-241
Page No. 3
Presented by Approved as to form by
Tiffany Allen Marco A. Verdugo
Assistant City Manager City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 10th day of December 2024 by the following vote:
AYES: Councilmembers: Chavez, Gonzalez, Morineau, 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. 2024-241 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 December 2024.
Executed this 10th day of December 2024.
Kerry K. Bigelow, MMC, City Clerk
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