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HomeMy WebLinkAboutAgenda Packet 1996/06/25 (2) "' declare Nnder penalty 01 perjury that' am emp!oyed by the CHy of ChuliJ Vista in tho Of1ico of the City GIN;; ~:n~; 't:',1~ I p~5~r.:t~ this Agenda/Notice on ti":.z 8~¡Ii'.::tin e~~1rd at Tuesday, June 25, 1996 1~n PubHc sor~es Euildi; ~'. ¡¡nrl.a C¡"Y Hall on Council Chambers 6:00 p.m. DArED:, ~h> ¡, S1Gí'~~D ,~~ " Puhlic Services Building ,- Joint Medin!! of the City of Chula Vi5ta and Plannim.! Commission CALL TO ORDER 1. ROLL CALL: Councihnember.s Alevy _' Moot _' Padill. _' Rindone _' and Mayor Horton _' Planning Commissioners Davis _. Ray _. Safas _. Tarantino _' Thomas _' Willett _' and Chair Tuchscher _. *'......... '" Eflectiv#! April I, 1994, there lIav#! bee1l new amendments 10 the Brown Act. The City Council must now reconvent into open session to npoTt any final actions talen in closed session and 10 adjourn the meeting. Because 0/ the tðSI involved, then will be 1U} vUJeataping o/the reconl1ened portion of the meeting. However, fiMI action. reported will be recorr/ed In the minutes which wiU be available in Ihe Cily Clerk', Office. ***** PUBLIC HEARINGS AND RELATED RESOI.UTlONS AND ORDINANCES The following iJem. have been IJIivertised ond/o, pos/ed as public hearings as reqtlired by IIlw. if you wish /0 "Peal to ony iJem, pleau fill out the "Request/a Speak Fona" available in the lobby and .ubmil it 10 the City Cleric prio' to the meeting. (Complete the g,een fona to 'peal in favor of the staff recommendation; complete thl! pink form to speak in opposition to the sla/I recornm~ndation.) Commems art limited ta five minutes per individual. 2. PUBLIC HEARING ADOPTING OTAY RANCH PRE-ANNEXATION DEVELOPMENT AGREEMENTS - Staff recommenùs the Council !U1d Plallni.ng Conunission place the orùinances on first reading. (Deputy City Manager Krernpl) A. ORDINANCE 2679 ADOPTING THE PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHIJLA V[~'TA AND OTAY RANCH, L.P., A CALIFORNIA PARTNERSHIP, TIGER DEVELOPMENT TWO, A CALIFORNIA LIMITED PARTNERSHIP BY TIGERHEART INC., A CALIFORNIA CORPORATION, ITS GENERAL PARTNER, VILLAGE DEVELOPMENT, A CALIFORNIA GENERAL PARTIIo'ERSHIP (first readin¡Ü B. ORDINANCE 2680 ADOPTING TIlE PRE-ANNEXATION DEVELOPMENT AGR£EMENT BETWEEN THE CITY OF CHIJLA VISTA AND SNMB, LTD., JEWELS OF CHARITY, AND STEVEN AND MARY BIRCH FOUNDATION (first readilU!) Agenda -2- June 25, 1996 C. ORDINANCE 2681 ADOPTING THE PRE-ANNEXATlON DEVELOPMENT AGREEMENT BETWEENTlIE CITY OFCHULA VISTA AND UNITED ENTERPRISES LTD., A CALWORNIA LIMITED PARTNERSHIP (first readin2) D. ORDINANCE 2682 ADOPTING THE PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VlSfA AND GREGORY T. SMITH AND GEORGIANA R. SMITH (first rradil1l!) ORAL COMMUNICATIONS 170b is all opponulliry for the felleral pubüc to tuldl'tSS the CilJ Coullcil 011 any subject matler ...ilhill the Council'sjurisdictioll Ihat is !l!I1 all ilem all thb ageNia/or pubüc discussioll. (State Úl.... ho.....er. gellerally prohibils the CÜ} Caullcil/rom takillg actWlI 011 any issues 1101 illeluded an the posted ageNia.) 1/ you ...ish to add7tSS the Councü on such a SubjtCIJ pl~as~ compkle the yellow "Requ~sllo Speal: Under Oral CommunÙations Form· available ill the lobby and submil it ra the CÜ} Clerk prior 10 Ihe meetillg. Those who wish to speak. please give your name and addrtss for record purposes and follow up at/ion. Your time is limited to three minutes per speaker. OTIIER BUSINESS 3. CITY MANAGER'S REPORTlS) a. Scheduling of meetings. 4. MA VOR'S AND CHAIR'S REPORT(S) 5. COUNCIL AND COllfMISSIONERS COMMENTS AD rOURNMENT The meeting will adjourn to a Regular Meeting of Ihe Planning Commission on Jun. 26. 1996 al 7:00 p.m. In the City Council Chambers. and to a Special MeetinglWorksession of the City Council on June 25. 1996, immediately following the Joint Meeting of the City CüuncillPlanning Cununission, th~nœ to the fe-gular City Council meeting on July 9, 1996 at 6:00 p.m. in the City Council Chambers. · .. COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT .. * The City of Chula Vista. in complying with the Americans with Disahilitics Act (ADA), re.qUósl individWlls who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least forty·eight hours in advance for meetings and five days for scht::duled services and activities. Plea...~ contact the City Clerk: for specific infonnation at (619) 69J·5041 or Telecommunications D~vices for the Deaf (TDD) (619) 585-5655. Califurnia Relay Service is al,o available for the he>.ring impaired. JOINT MEETING OF CITY COUNCIL/PLANNING COMMISSION ;¿ Item No, Meeting Date 6/25/96 ITEM TITLB: Ordinances - Adopting Otay Ranch Pre- Annexation Development Agreements Between: A) ,¡O ~tay Ranch, L.P. , a California limited partnership, Tiger Development Two, a California limited partnership, by Tigerheart ,Inc. , a California corporation; its general partner, Village Development, a California general partnership, and the City of Chula Vista; .J. IR 9" ¿¡ BJ SNMB, Ltd. , Jewels of Charity, and steven and Mary Birch Foundation, and the City of Chula Vista; ;).6f{/ C) united Enterprises, Ltd. , a California limited partnership, and the City of Chula Vista; and ..2kg'i smith, and Georgiana Smith and OJ Gr gory T. R. the City of Chula vista. r I' SUBMITTED BY: ~P"ty Öty ..".~mp,[/C ",,,1" Planning Directo ~. ~ 1.(/ Public Works Dire tol otay Ranch projec Manager~~~~ . q REVIEWED BY: C1ty Manager t/5 Vote: Yes No-X.. <-- - The purpose of this item is to present four different development agreements between the City of Chula vista and Village Development; the Foundation; United Enterprises and Greg smith. These property owners own the fee title to the majority of the lands on the Western Parcel of the Otay Ranch, ranch house and the "inverted L" parcel of land. The Development Agreements, amongst other things, are necessary to achieve the Developers' support for annexation of the otay Ranch Western Parcel as a unit and to meet certain obligations of the Landfill Agreement between the County and the City. Specifically, the Landfill Agreement requires that "Nuisance Easements" be granted by the Property OWners to the County on lands within an approximately 1,000 foot buffer area surrounding the otay Landfill. Granting of the Easements is a pre-condition of any annexation of otay Ranch Properties, RECOMMENDATION: Place the Ordinances on First Reading, BOARDS/COMMISSIONS RECOMMENDATION: The Planning Commission will be reviewing and taking action on the Agreements at a joint meeting between the City Council and the Planning Commission on June 25, 1996. ,;2 -/ Meeting Date 6/25/96 Page 2 BACltGROmm A Sphere of Influence application and annexation application for consideration and action are pending before the Local Agency Formation Commission July 1, 1996 to annex the Western Parcel of Otay Ranch plus the Ranch House and the inverted ilL" property. In consideration of supporting the entire annexation described above at one time, LAFCO has stressed that it is important to have the majority of the property owners' support. These Agreements offer that support. In addition to the LAFCO process and negotiations with property owners, the City has also been working cooperatively with the County of San Diego. On May 15, 1996, a Property Tax Sharing Agreement and an Agreement Regarding Jurisdiction Over and Operation of the Otay Landfill were entered into between the City and County. In mid to late April, draft development agreements were submitted by Village Development and the Foundation, and in early June by United Enterprises, The City put together a review/negotiating team consisting of the Planning Director, Public Works Director, otay Ranch Project Manager, Deputy City Manager and the Acting City Attorney, as well as Peggy McCarberg, staff contract attorney. Each of the applicants was represented by legal counsel as well. CEQA review is not required for the development agreement since an in-depth review occurred when the environmental review was approved for the otay Ranch General Development Plan and adopted by the City on October 28, 1993. (Lona Beach Sav. and Loan v. Lana Beach Federal, 232 Cal. Rptr. 772, 781-2 (1986) . DISCUSSION The following discussion focuses on the benefits of the Agreement to the parties, a description of the terms of the Agreement which are constant for all the parties, a description of certain specifics to each party, and an outline of major policy issues. 1- Renefits to the Parties a, Benefits to the City · Developer support for annexation of the Otay Parcel to Chula vista. · assurance that the Developer will dedicate needed R.O.W. for SR #125. · granting of landfill nuisance easements to the County for the Otay Landfill buffer area. 02.~1- --.._.~_...._-_._- Meeting Date 6/25/96 Page 3 · provision ot property tor the Chula vista Greenbelt open space areas and MSCP compliance. · assurance ot adequate public tacilities when needed, and in some cases development ot excess capacity or facilities sooner than required, · compliance with the City's Growth Management Program, b. Bene~its to the DevelQDer · vests permitted land uses, density, intensity ot use per the approved General Development Plan and timing and phasing ot development per Future Discretionary Approvals (Le. , SPA Plan and Public Facility Finance Plan) and in compliance with the city's Growth Management Ordinance. · grants the owner certainty to proceed with the development of the property in general accordance with today's ordinances, rules, regulations and standards or as they may be changed in the future citywide or east of I-80S, · allows for fee credits and/or reimbursement mechanisms tor extraordinary facility improvements or pioneering thereof and specifies that DIF fees will be used to facilitate regional backbone facilities. · allows the Developer to receive timely processing on an equal basis with other Developers of Future Discretionary Approvals and allows those approvals to be covered by these Agreements. 2. Description of the Agreement Terms The Agreement contains the following major points: (1) The owners support the annexation, and the plan is to complete annexation of the Otay Parcel by January 1, 1997 (an outside time frame - annexation is actually scheduled July 1, 1996) . (2) The term of the Agreement, as recommended by staff, is 20 years (the Developers want 40 years). (3) Application of new or amended Rules, Regulations, Ordinances, Resolutions, Standards and Policies, ..2~3 Meeting Date 6/25/96 Page 4 As stated above, the Developer would like to lock in and have certainty as to what rules will apply to his project while the city wants to retain as much flexibility as possible. The Agreement permits changes in rules, policies, etc, as long as they are applied citywide or east of I-80S and do not unreasonably prevent or delay the development of the Property to the approved uses, densities or intensity of use. Changes necessitated by changes in State or Federal law are also covered. (4) Modifications to Existing Project Approvals are contemplated and do not constitute an amendment to the Agreement. Future Discretionary Approvals are also contemplated and do not constitute an amendment to the Agreement. (5) The dedication and reservation of land is to be consistent with the Existing Project Approvals, (6) The timing for project construction is to only be regulated by the Growth Management Ordinance and threshold standards which include the adequate provision of all public facilities needed to serve the project as well as project phases through subsequent SPA and Public Facility Finance Plan Approvals. The project is subject to amendments to the Growth Management Ordinance subject to certain conditions. Changes to the Growth Management Ordinance and Threshold standards are to be consistent with the purpose and intent of the existing Growth Management Ordinance and generally applicable citywide or east of I-80S or applicable to a benefit, fee district as described in earlier sections. The Developer would like added the phrase "and such changes would not prevent or unreasonably delay the development of the Property consistent with the Existing Project Approvals." This is a policy issue discussed later in this report, (7) Application of new/increased Fees and special Taxes are contemplated and allowed so long as they are applicable citywide or east of 1-805 or relate to some special fee or benefit assessment district formed in accordance with the Government Code. (8) The city will accept and diligently process development applications with the Developer paying for the staff and consultant costs therewith. (9) Length of validity of Tentative Maps. The Developer would like to have the tentative map vested for the term of the Agreement (20 or 40 years) while a tentative map is ordinarily good for 3 years and can be extended :¿~i Meeting Date 6/25/96 Page 5 another 3 years for a total of 6 years, A compromise proposed by the Developers is to have a tentative map vest for 10 years for projects up to 3,000 dwelling units and to allow tentative maps larger than 3,000 units to vest additional time at the rate of one additional year for each additional 300 units. This is a policy issue to be discussed later in this report. (10) Recognizes that the Developer can do certain work such as grading at the pre-final map stage subject to City approval and posting of required performance bonds. Acknowledges the ability to record Superblock Final Maps ("A" Maps) for financing purposes as well as the standard Final Maps (liB" Maps). Allows for maps to be recorded in the name of builders or third parties and certain transfer of obligations to occur with city approval. (11) The Developer is obligated to dedicate or reserve land and fund/construct public facilities as required by the General Development Plan and subsequent approvals (12) The SR #125 R.O.W. is to be dedicated to the City, (13) Landfill nuisance easements are to be granted to the County. (14) The Developer is to comply with the provisions of any Preserve Conveyance Plan and convey property as set forth therein. (15) The Developer is to comply with the otay Ranch Reserve Fund Program as adopted as part of the Existing Project Approvals, (16) The City has the right to withhold the issuance of building permits if a threshold has been violated and until the deficiency has been cured per the Growth Management Ordinance. Permits may also be withheld where public facilities required for thresholds have not been committed, Unless the Developer is responsible for the threshold violation, the Agreement is tolled while permit issuance has been stopped. (17) If the Developer constructs a facility which is the obligation of another Developer or builds a facility of increased supplemental size, the City will consider a reimbursement district. Similarly, the Developer will dedicate land for others to pioneer projects on the Property. ./' l) _ '::> c;:J. --- Meeting Date 6/25/96 Page 6 (18) The Developer agrees to pay DIF fees. The City agrees to establish and use the DIF fees in an appropriate fashion. The DIF can be modified if it incorporates reasonable cost estimates to provide facilities based on specified methodology and justification. The City can withhold permits until the DIF is paid. The Developer can get DIF credits when facilities are completed. The city will undertake reasonable efforts to collect and impose the DIF on others and spread the costs on an equitable basis. The Property owner will pay its fair share of the DIF for Otay River Road crossings and the City will pursue other parties, such as the County and city of San Diego, to pay their fair share as well. . (19) The city will cooperate in the provision of utilities to the Project. (20) The City agrees that if they negotiate some long-term participation or financial advantages with CTV on the SR 125 road that the City may share those advantages with subsequent property owners/residents of the area. (21) The Agreement contains provisions for annual review, default, encumbrances and releases on property, modification or suspension, assignment and delegation, delay and amendments. (22) A provision has been included that in the event of a dispute between the parties that a mediation process be followed. If any party commences litigation, the prevailing party as determined by the court, will be entitled to attorney's fees. (23) The parties recognize that the Developer and the City are negotiating agreements with the U.S. Fish and wildlife and California Fish and Game to implement the "NCCP" and the "MSCP" mUlti-species habitat programs. MOdifications to the Existing Project Approvals will be required to be processed by the City, paid for by the Developer, and would not constitute an amendment to the Agreement. 3 . Aareement Terms Relating to Specific Parties Because each agreement is with a separate Property Owner, there are specific terms unique to each party by way of benefits and acknowledgements. a. united EnterDrises The United Enterprises Agreement speaks specifically to the Rock Quarry operations, which have been in existence ;!.-¿, Meeting Date 6/25/96 Page 7 for about the last 40 years. Upon annexation, the Quarry operations will become a legal non-conforming use in the city. This is due to the fact that the use was authorized by the county prior to an ordinance which would otherwise require a use permit. A Reclamation Plan is on file with the county and the state Division of Mines and Geology. The main provision relating to the Quarry states that the owner will be allowed the continued use of the property for rock quarry use, that applications for related uses will be processed by the city for uses including such things as an asphalt and concrete batch plant and sand and gravel operations, and that planning for the ultimate non-quarry use of the property shall be allowed as well. b. The Foundation The Foundation would like the City to consider certain land use changes and infrastructure commitments regarding their property. Those considerations are obviously subject to future discretionary applications including environmental review and public hearing and cannot be pre-judged. Therefore, the terms of the Agreement are along the lines of language stating that the City shall process said applications and give them reasonable consideration, The requests for land use changes the applicant would like to make include the following: transfer of residential units from Village J to Villages 2, 4 and 8; a change of the Village 3 land use from industrial to industrial, commercial, recreational, visitor serving and some residential, and a request to expand the development areas of Villages 2, 3, 4, and 8 if environmental constraints can be satisfactorily addressed, with regard to infrastructure, the Agreement says the city will cooperate and work with CALTRANS to facilitate improvements to the 1-805 and otay Valley Road interchange when needed, as well as hold appropriate hearings to revise the DIF. In addition, we will initiate contact and pursue discussions concerning the number, scheduling and financing of otay River road and bridge crossing with the city and County of San Diego. Ca village DeveloDment A circumstance specific to Village Development is the construction of additional east-west access, The Agreement acknowledges that east-west access through the property connecting to 1-805 may be needed at a time when inadequate DIF monies are available and other developers are not able to contribute either. In effect, Village Development could be pioneering the facility at its cost. ,) /ì d- ~ I Meeting Date 6/25/96 Page 8 In that case, the City will be willing to consider a traffic capacity development agreement, giving priority status to some amount of project development. The additional circulation capacity could be on either East Palomar street or Orange Avenue. The Developer agrees to proceed, if necessary, with orange Avenue first since it provides potentially greater traffic capacity. In addition, if SR-125 is constructed prior to construction of east-west access, then the timing of construction required for Palomar or Orange will be re-reviewed. A second element specific to the Village Development Agreement is the application of the Natural Communities Conservation Act (NCCP) and the Multiple Species Conservation Program (MSCP) . The Developer has negotiated agreements with the resource agencies to make certain trade-offs of sensitive habitat land preservation in some areas for more flexible development possibilities in some other areas. This Agreement recognizes that circum.stance, and the City agrees to reasonably consider and process such amendments and consider them as part of Existing Project Approvals and not requiring an amendment to their Agreement. A third factor, somewhat similar to what was mentioned for the Foundation Agreement, would be to process and reasonably consider an application for a land use change necessitated by virtue of land use changes that will be mandated in the otay Landfill buffer area. Land uses in the 1,000 foot buffer area of Village 3 (east of the landfill) are currently designated "Residential" and will need to be changed to an acceptable "non-Residential" designation. Village Properties would like to have an amendment to the GDP considered to relocate those residential uses elsewhere on the Project. Maior Policy Tssues The major policy issues, in staff's view, are only three at this point. The issues are the agreement terms, application of growth management changes and the length of time tentative maps remain in effect. 1- A9reement Term - as stated earlier, the Developer wants a 40-year term and the City staff is of the opinion that a 20-year term is more than generous. While aCknowledging that the project buildout could be 40 years or more, that doesn't mean the Development Agreement can or should run that long. Many things will change over even a 10 or 20-year period that it is not prudent to vest entitlements for 40 years. The Developer could seek an amendment or another Development ,2-/[ - _po Meeting Date 6/25/96 Page 9 Agreement at that time, The City's existing agreements with EastLake and Rancho del Rey have 7 or 10-year terms, respectively. The recently approved Landfill Agreement with the County has a term the length of operation of the landfill or 50 years, whichever is earlier. We feel that is a specialized agreement recognizing the uniqueness of a landfill and ongoing monitoring even beyond closure and should not establish a precedent for this type of agreement. 2. Growth Manaqement Ordinance/Threshold Standard Changes - The Developers agree that they are subject to the provisions of the Growth Management Ordinance including the Threshold Standards and all of the public facility requirements associated therewith, including existing and future approved Public Facility Finance Plans (PFFP's) , They also agree that they are subject to construct facilities to address project required thresholds and the City retains the right to withhold building permits should the relevant threshold be exceeded until a deficiency is cured. The issue then becomes whether Or not they are subject to changes in the Growth Management Ordinance and under what conditions. The Developer wants to be protected from "arbitrary" changes, which Developer states would be impossible to meet and which in effect would stop all development and negate the purpose of the Development Agreement. An example would be changing the traffic threshold from level of service "C" to level of service "A" or changing the fire threshold from responding to calls in 7 minutes B5% of the time to 2 minutes 100% of the time. The City, on the other hand, has to be able to reasonably refine, adjust and change, or add, to the thresholds as times, standards and circumstances change. The compromise suggestion was to allow for change if implemented citywide or east of I-B05 and if the changes met the purpose and intent section of the existing ordinance. In other words, the driving motive of the standards are to insure that adequate public facilities are provided when needed and not as a means to impose housing caps or stop development, The above conditions are acceptable to staff and help to circumscribe the types of changes that will be acceptable. The Developers request that an additional phase be added whereby the city may make changes to the Growth Management Ordinance "which would not prevent or unreasonably delay the development of the Property consistent with the Existing project Approvals." This seems unacceptably broad, in particular the reference to "unreasonably delay" since the Growth Management Ordinance by its very nature sets performance standards and infrastructure provisions and phasina. Should a change in the ordinance result in a change ,) -9 Meeting Date 6/25/96 Page 10 in infrastructure phasing, then the timing of the Project could very well be affected, The ability to change thresholds has been an integral part of all of the city's development agreements to date. 3. Length of validity of Tentative Subdivision Maps As mentioned earlier, a tentative map normally has a 3-year life with a 3- year extension. The terms of this Agreement call for a 10- year life of a map not to exceed 3,000 units and for a map with more than 3,000 units an additional year for each 300 units. Then a map with say 4,500 units would have a length of 15 years. The pOlicy issue is how long a period of time the City wants a tentative map to exist before a new map has to be filed. From a planning perspective, the longer the period the map exists, the greater likelihood that circumstances of development surrounding the mapped area will have changed or the map and its conditions will have been dated, The options would be to stick with the time frames in the current Subdivision Map Act (i,e. 3 years with a 3-year extension), shorten the lO-year base period, or state that smaller maps, say less than 500 units, should not receive any special consideration as to length, Another option would be to allow for the Council to approve any extensions from 6 to 20 years in length after the normal map extension period had run out, All of the remaining Agreement terms and language are supported by the Developers and staff as appropriate considerations for the benefits occurring to both parties. Fiscal TmDðct It isn't possible to quantify the value of the Agreement to the City or the other parties. Through annexation and the related property tax, sales tax, etc" the city will realize significant benefits, Likewise, the Developers benefit from the vesting and certainty provided by the Agreement to be able to get loans and sell and develop the Property in accordance with current and future approvals. M: \HOME\A;)MI N\nEVM;11 J c7-/û Item No. 2 Meeting Date 6/25/96 OTAY RANCH PRE-ANNEXATION DEVELOPMENT AGREEMENTS ERRATA SHEET FOR AGREEMENTS A. GREG SMITH AGREEMENT 7.2.1 Preserve Convevance Plan, The city and ~the Developer shall mutua1lv aaree UDon a eelll191y ,,:itfi aft)" eHistiftlJ or yet te be adapted Preserve Conveyance Plan,-aflè The city shall in aood faith consider for adoption auch a plan and the Developer ahall convey property and/or fees in lieu of land as set forth in such Plan. B. FOUNDATION AGREEMENT 5.1,1 City "fiall reassflaaly consiEier aREi preeess ".,:i th J3ysper cnvi~BRmcRtal rcyiei,;, a :t"eEJueo.t fey tHe 'EraRsfcr af residen_ial aRits fraæ Village J te Villa!cG 2, 4 aR~ 8 az the ~illa~Es arc iàLRtifieà iA tHe CÐP) ., 5.1.1 Citv shall reasonablv consider in its discretion and with proper environmental review. a request to increase the residential density of Villaaes 2. . and 8. UD to the number of residential units provided in villaae 3 bv the County's adopted GDP. 5.1.2 City shall reasonably consider in its discretion and process with proper environmental review a request to change the primary land Use designation for Village 3 from Industrial to commercial, recreational, visitor-serving, and some residential uses in addition to the Industrial Use. The exact acreages of the residential, industrial, commercial, or other uses, shall be agreed upon and set forth in a general plan amendment. 7.2.3 Preserve Convevance Plan. The city and ~the Developer shall mutually aqree uPon a oOIlll'ly ,,:itil afty cUÌ<3tiflE " er yet te Be aEioptcd Preserve Conveyance Plan,-anà The city shall in qood faith consider for adoption such a plan and the Developer shall convey property and/or fees in lieu of land as set forth in such Plan. C. THE OTAY RANCH, L.P., ETC. AGREEMENT 2.17 "Future Discretionary Approvals" means all permits and approvals by the City granted after the effective date ..)- / and excluding existing Project Approvals, including, but not limited to: (i) grading permits; (ii) site plan reviews; (iii) design guidelines and reviews; (i v) precise plan reviews; (v) sUbdivisions of the Property or re-subdivisions of the Property previously subdivided pursuant to the SUbdivision Map Act, (vi) conditional use permits; (vii) variances; (viii) encroachment permi ts; (ix) Sectional Planning Area plans; (I!) Preserve ceR7eyaftee Plan anà (x*) all other reviews, permits, and approvals of any type which may be required from time to time to authorize public or private on- or off-site facilities which are a part of the Project. 4. Owner Consent to Annexation, Owner hereby consents to and shall cooperate with the applications of City to declare that the eta)' Valley Pareel land depicted in Exhibit D is within City's sphere of influence and to annex the Gtay 'lalley Pareel land depicted in Exhibit D to the City; provided, however, that Owner may withdraw such consent and withhold further cooperation if the City, prior to the Effective Date, adopts rules, regulations, ordinances, pol icies, condi tions, environment a 1 regulations, phasing controls, exactions, entitlements, assessments or fees applicable to and governing development of the Property which are inconsistent with, or render impractical development of the Property according to, the Development Plan..... ar tfic aààitienal eomlllitlllenta af City set fert" in ParaEjraphs S.1.1 threHEj" S.1.&, Ðcle'í.~ . 5.2.3 At the bottom of Page 8, there is a redundancy in that Section 5.2.3 is repeated. The correct Section 5.2.3 appears on page 9, with the heading Modifications to Existinq Proiect Approvals. NOTEI POLIC~ IOSBE 5.2.3 ~EJreelllent tAat tAe City anà Ðcvele~er may IIIHtually seck anà aEjree to maàifieatiens ta the ExistinEj Prajcct ~p~rsvals. C~efl modific~tioR~ ar~ c6Rt£mplatc aD within tfic aaape af this A~FeemeAt, aRå sh.J.ll, UpOR '~'rittoA acceptaRCE: ay all 13a:rties, eonGtitHte fer all ~Hr!,esÐs al9 EJ1Ísting Project ,""'I"reval. The par~ies a~ree that aAY ouoh modifiC3tisRO may Rst eSAztitHtc aft amcRà~eAt to this ~~reemcRt. 7.2,2 Land f i 11 Nuisance Easements, Developer shall grant to the County by July 1, 1996 "Landfill Nuisance Easements" substantially in the form attached as Exhibit E The Easement shall cover all land which is within the Otay Landfill Buffer Area of Villages 2, 3 and Planning Area 18B of the otay Ranch GDPP as shown on Exhibit E hereto. D. AS TO ALL PRE-ANNEXATION DEVELOPMENT AGREEMENTS 2.15 "Existing Project Approvals" means all discre- tionary approvals affecting the Project which have been approved or ')..Id- r.../ /1 established in conjunction with, or preceding, the effective date consisting of, but not limited to the GDP, the Chula vista General Plan, the otay Ranch Reserve Fund Program adopted pursuant to Resolution ~ 18288, the SPA One Plan and the Phase II Resource Management Plan (RMP) , as may be amended from time to time consistent with this agreement, 3. Term. This Agreement shall become effective as a development agreement upon the effective date of the Annexation ("the Effective Date"); provided, however, that if the Annexation does not occur on or before 3anuary 1, 1997, this Agreement shall be null and void. Any of the foregoing to the contrary notwith- standing, from the effec£ivc date of first readinq of the ordinance approving this Agreement, ee~ fer£A iR Para~ra~R 1.8, and unless or until this Agreement becomes null and void, Owner shall be bound by the terms of Paragraph 4. The Term of this Agreement for purposes other than Paragraph 4 shall begin upon the Effective Date, and shall continue for a period of twenty (20) years ("the Term")'. 5.22 Development of Property. The development of the Property will be governed by this Agreement and Existing Project Approvals and such development shall comply and be governed by all rules, regulations, policies, resolutions, ordinances, and standards in effect as of the Effective Date subject to the provisions. of section ~ 5.2.1 below. The City shall retain its discretionary authority as to Future Discretionary Approvals, provided however, such Future Discretionary Approvals shall be regulated by the Existing Project Approvals, this Agreement, and city rules, regulations, standards, ordinances, resolutions and policies in effect on the Effective Date of this Agreement and subject to Section ~ 5.2.1. 6.4.3 Recordation of Final Subdivision Map in Developer's Name; Transfer of Obliqations Under Subdivision Improvement Aqreement(s) , If Developer so elects, it may defer the conveyance of any super block lot to a Builder or third party until after the final map of such super block lot has been recorded. If Developer elects to proceed in this manner, it will enter into City's standard subdivision improvement agreement(s) with City for the improvements required as a condition to the reeeràatieR approval of such map(s), Upon sale to a Builder or third party, if such Builder or third party assumes Developer's obligations under the improvement agreement and provides its own security and insurance for the completion of the subdivision improvements as approved by the city, Developer shall be released from liability under the subdivision improvement agreement (s) and Developer's security shall be ~eleased. 6,4.4 Transfer of Riqhts and Obliqations of 'Developer wants 40 year term 2policy issue .-;)-(] Development. Whenever Developer conveys a portion of the Property, the rights and obligations of this Agreement shall transfer in accordance with Section IS herein. 7.1 Condition to Developer's Obliqations to Dedicate. Fund or Construct Public Facilities, Developer agrees to develop or provide the public improvements, facilities, dedications, or reservations of land and satiSfy other exactions conditioning the development of the Property which are set forth hereinbelow. The obligations of the Developer pursuant to this Agreement are conditioned upon: (i) the City not being in default of its obliga- tions under this agreement; and (ii) the City not preventing or unreasonably delaying the development of the property; and (iii) the Agreement having not been suspended er meàified in response to changes in state or federal law; and (iv) the City's obligations having not been suspended pursuant to Section 13,2. 8.5 Development Impact Fee Credit. Upon the completion and .ccectance bv the city of any public facility, the City shall immediately credit Developer with the appropriate amount of cash credits ("EDUs") as determined by Developer and City. However, if the improvements are paid for through an Assessment District, the City shall credit the Developer with the appropriate number of Equivalent Dwelling Unit Credits (EDU's). Developer shall be entitled to apply any and all credits accrued pursuant to this subsection toward the required payment of future DIF for any phase, stage or increment of development of the Project. Bold/underline = new addition Strikeout = deletion N;\Shared\Attorney\Err4ta <.2 - /f! [i SOLOMON WAR D SEIDENWURM & S M I T H ~._._.- ------- _. ----- A LIMITED LIA.ßJUTY PARTNE¡¡>SHIP ~HCHAEL n 1I"~s~eEII CYNT\1IAL. (;WI!GD LAYI1EN<.."EI. KAPU."· DANIEL E. G"~CF.i'lS:W'AIITZ ~lnlAIID F. ~\,CAIITHY ~\tcHA.l:L A. (;A"DIN'E~ !WWAIIDJ ~1dI'iTYI/f' CATHt;;I1INI:LI'UiJ/CIi ·...t'I.¡;.ioIFT8CH AU~"'" I.. 1'1"01>"" JEl'HHA öi..'IINliIUEII ""","""'l .1I:H~III I. 5F1I1EN....'1o'H" JOSH~I)\,IH\I:O J"'I'I'!lEY II. SIl.Hël!~\^,'I: June 25, 1996 ....IGt'EI.^ SMtTH "'OI!)\oVIl+ S)HTII 1¡;'IJJJAM n "'A~lJ. 111 (II~T l1~ALULI.'OI.C\M.ù:-l 1I8If'!<::WTI. 50l.CMON ." P."P""''''''''_'''''P<.'IiAT1~'N VIA HAND DELIVERY Mayor and City Council Planning Commission City of Chula Vista 276 Fourth A venue Chula Vista, California 91910 Re: United Enterprises, Ltd. Otay Ranch Pre-Annexation Development Agreement Hearing Date: June 25, 1996 Our File No. 46027.002 Honorable Mayor and Members of the City Council and Planning Commission: We represent United Enterprises, Ltd. ("UE") in its capacity as OWner of the approximately 136.47 acres of property on which the Nelson Sloan Quarry currently operates (the "Property"). ReQJlested Action. We request that the Planning Commission recommend to the Mayor and City Council and that the Mayor and City Council adopt Ordinance No. 26&1, thereby approving the Pre- Annexation Development Agreement between UE and the City of Chula Vista (the "Agreement"), with the following modifications: 1. Revise Paragraph 3 of thc Agreement to provide that the term of the Agreement shall continue for a period of forty (40) years; and 2. Revise Paragraph 5.2 of the Agreement by adding the following language to the end of the last sentence of that paragraph: "and which would not prevent or unreasonably delay the development of the Property consistent with the Existing Project Approvals". This change would further modify the circumstances under which the City of Chu!a Vista (lhe "City") could apply to the physic-a! development of thc Property subsequent changes to the City's Growth Management Ordinance. 0-2-;;- 401 B Street, Suile 1200 8im Diego, Cãli[tlrnid lJ2101 Tcle¡,I",,,, (619) 23J·030] I'.w,unilc (619) 231.4755 Ui -.--.-...- - Mayor and City Council Planning Commission City of Chula Vista June 25, 1996 Page 2 Additionally, we request that the Planning Commission recommend to the Mayor and City Council and that the Mayor and City Council adopt Ordinance No. 2681, thereby approving the Agreement with the present language of Paragraph 6.2 of the Agreement intact. This paragraph provides that tentative subdivision maps for 3,000 or fewer dwelling units shall remain valid for a term of ten (10) years and tentative subdivision maps for more than 3,000 dwelling units shall remain valid for a term of ten (10) years plus one (1) additional year for every 300 dwelling units in excess of 3,000 dwelling units. Discussion. Forty-Year Term. We have spent a significant amount of time negotiating with staff the provISIOns of the Agrecment for presentation to the Mayor, City Council, and Planning Commission. The provisions of the Agreement included in the agenda package for this evening's joint meeting reflect compromises which, although disappointing to UE in some respects, are acceptable to DE with the modifications requested above. The first requested modification would establish a forty-year life for thc Agreement, as opposed to the twenty-year life which staff have proposed. The twenty-year life is insufficient to meet the needs of DE with respect to the Property. As staff have indicated, the rock quarry has operated on the Property for approximately forty years. We understand that an additional ten to forty-year life is projected for the quarry. DE continues to plan for the continued operation of the quarry throughout its life term and the development of the Property for its ultimate uses only after the life term of the quarry has expired. Annexation is of value to DE only at such time as it is prepared to mOve forward to develop the ultimate uses of the Property. For these, among other, reasons, UE would not of its own accord seek annexation into the City at this time. We understand that at least several jurisdictions within the County of San Diego have cntcred into development agreements for periods of time in excess of twenty (20) years. Ncither state nor local legislation limits the terms of development agreements. r2-/¿ [j ~- ---.....- ~-- Mayor and City Council Planning Commission City of Chula Vista June 25, 1996 Page J For these reasons, among others, UE requests that Paragraph 3 of the Agreement be revised to provide that the term of the Agreement continue for a period of forty (40) years. An agreement of the type now before the Mayor, City Council, and Planning Commission for consideration is of limited use to UE if its term does not extend beyond the lifc term of the quarry and into the period of time during which the Property is developed for its ultimate uscs. Amendments to the Growth Mana~ement Ordinance. The primary benefit to a property owner of entering into a development agreement is to obtain certainty in the development process. In exchange for such certainty, the property owner agrees to provide to the governing jurisdiction benefits such as those enumerated in Paragraph 1.3 of the Agreement presented for consideration tonight. To a significant extent, without further modification the provisions of Paragraph 5.2 of the Agreement relating to changes in the City's Growth Management Ordinance recite limitations on the City's powers which any project within the City's jurisdiction enjoy. The provision, as written and proposed by staff, would not provide UE with the certainty that it needs in order to enter into the Agreement with the City. The limiting language which we propose be added to this provision docs no more than prote~"t the Existing Project Approvals as discusscd in Paragraph 5 of the Agreemcnt. The language which we suggest be added is consistent with Paragraph 5 of the Agreement and the underlying goals of the Agreement. For these reasons, among others, UE requests that Paragraph 5.2 of the Agreement be revised to provide that changes to the City's Growth Management Ordinance would apply to the Property only if, among other things, they do not prevent or unreasonably delay the development of the Property consistent with the Existing Project Approvals. Tcntative Map. UE, staff, and the other developers involved in the Otay Ranch Annexation have agreed upon a compromise for the length of time in which tentative subdivision maps for the Property would remain valid. UE requests that the language of Paragraph 6.2 be accepted and approved by the Mayor, City Council, and Planning Commission. eJ-/'/ / Li -~-- ---------- Mayor and City Council Planning Commission City of Chula Vista June 25, 1996 Page 4 Conclusion. The compromises which UE has made with staff are acceptable to UE with the modifications to Paragraphs 3 and 5.2 of the Agreement requested and discussed in this letter. For the reasons discussed above, among others, UE rcquests that the Planning Commission recommcnd to the Mayor and the City Council and that the Mayor and the City Council adopt Ordinance No. 2681, approving the Agreement with the present language of Paragraph 6.2 intact, and the modifications requested to Paragraphs 3 and 5.2. Sincerely, ~ Cynthia L. Eldred SOLOMON WARD SEIDENWURM & SMITH A Limited Liability Partnership CLE/ sgv cc: United Enterprises, Ltd. George Krempl, Deputy City Manager Beverly Authelet, City Clerk Ann Y. Moore, Interim City Attorney SS,69694. I ,46027.002 ,;) ~I K Revised 6-24-96 ORDINANCE NO. 2679 AN ORDINANCE OF THE CITY OF CHULA VISTA ADOPTING THE PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND OTAY RANCH, L.P. , A CALIFORNIA PARTNERSHIP, TIGER DEVELOPMENT TWO, A CALIFORNIA LIMITED PARTNERSHIP BY TIGERHEART INC. , A CALIFORNIA CORPORATION, ITS GENERAL PARTNER, VILLAGE DEVELOPMENT, A CALIFORNIA GENERAL PARTNERSHIP WHEREAS, a City of Chula Vista application is pending before the County of San Diego and LAFCO to have the Otay Valley Parcel included within City's sphere of influence; and WHEREAS, the development of the otay Valley Parcel will require substantial pUblic improvements phased over a period of time; and WHEREAS, California Government Code §65867,5 et seg. provides authority for cities to enter into development agreements; and WHEREAS, CEQA review is not required for the development agreement since an in-depth review occurred when the environmental review was approved for the Otay Ranch General Development Plan and adopted by the City on October 28, 1993. (Lono Beach Sav. & Loan v. Lono Beach Redevel" 232 Cal.Rptr. 772, 881-2 [1986]) ; and WHEREAS, the Planning Commission and City Council held a joint public hearing on June 25, 1996 to consider the Pre- Annexation Development Agreement; and WHEREAS, the Planning commission and city Council have reviewed the Pre-Annexation Development Agreement and recommend its approval. NOW, THEREFORE, the City council of the city of Chula vista ordains as follows: SECTION I: Pre-Annexation Development Agreement for a portion of the Otay Valley Parcel. In accordance with Section 65867.5 of the Government Code, the City Council of the City of Chula Vista has approved that certain document entitled "Pre-Annexation Development Agreement" for a portion of the Otay Valley Parcel with otay Ranch, L.P. , a California limited partnership, Tiger Development Two, a California limited partnership, by Tigerheart Inc. , a California corporation, its general partner, Village Development, a ~A.-I ...,...._..~--~._-_._---'--,. California general partnership, on file in the office of the City Clerk as Document No. SECTION II: The Mayor of the city of Chula Vista is hereby authorized and directed to execute said Agreement for and on behalf of the City of Chula vista, SECTION III: This ordinance shall take effect and be in full force on the ~irtietR elay fram a FIe! after its passal}c effective date of annexation as set forth in the "tt"ched Pre- Annexation DeveloDment Agreement. Presented by Approved as to form by Ov-- L') ~ George Krempl, Deputy City Ann Y. Moore, Interim Manager City Attorney C:\or\pr.annex.o~ ~A.-.;¡, Rev-h"\èd 6-24-96 ORDINANCE NO. 2680 AN ORDINANCE OF THE CITY OF CIjt1LA VISTA ADOPTING THE PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN THE CIT¥ OF CaULA VISTA AND SNMB, LTD., JEWELS OF CHARITY. AND STEVEN AND MARY BIRCH FOUNDATION WHEREAS, a City of Chula Vista application is pending before the County of San Diego and LAFCO to have the Otay Valley Parcel included within City's sphere of influence; and WHEREAS, the development of the Otay Valley Parcel will require substantial public improvements phased over a period of time; and WHEREAS, California Government Code §65867.5 et seq, provides authority for cities to enter into development agreements; and WHEREAS, CEQA review is not required for the development agreement since an in-depth review occurred when the environmental review was approved for the Otay Ranch General Development Plan and adopted by. the City on October 28, 1993. (Lona Beach Sav, , Loan v. Lona Beach Redeve1., 232 Cal.Rptr. 772, 881-2 [1986]) ; and WHEREAS, the Planning Commission and City Council held a joint public hearing on June 25, 1996 to consider the Pre- Annexation Development Agreement; and WHEREAS, the Planning commission and City Council have reviewed the Pre-Annexation Development Agreement and recommend its approval. NOW, THEREFORE, the City Council of the City of Chula Vista ordains as follows: SECTION I: Pre-Annexation Development Agreement for a portion of the Otay Valley Parcel. In accordance with Section 65867.5 of the Government Code, the City Council of the City of Chula Vista has approved that certain document entitled "Pre-Annexation Developmènt Agreement" for a portion of the Otay Valley Parcel with SNMB, Ltd., Jewels of Charity, and steven and Mary Birch Foundation on file in the office of the City Clerk as Document No. . - SECTION II: The Mayor of the City of Chula Vista is hereby authorized and directed to execute said Agreement for and on behalf of the city of Chula Vista. " " K ,¿.'/? - I ," SECTION III: This ordinance shall take effect and be in I full force on the t"ir~ie~A day frem 8PJI:I after it3 pa3s8g£ effective date of annexation as set forth in the attached Pre- Annexation Development Aareement, Presented by Approved as to form by Ú-~ ~a George Krempl, Deputy city Ann Y. Moore, Interim Manager City Attorney C:\or\pr..nnf..o~ I . . - .i ~-~ 6ß-c2 -;,... --- ----..--.. Revised 6-24-96 ORDINANCE NO, 2681 AN ORDINANCE OF THE CITY OF CHULA VISTA ADOPTING THE PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND UNITED ENTERPRISES, LTD, , A CALIFORNIA LIMITED PARTNERSHIP WHEREAS, a City of Chula Vista application is pending before the County of San Diego and LAFCO to have the Otay Valley Parcel included within City's sphere of influence; and WHEREAS, the development of the otay Valley Parcel will require sUbstantial public improvements phased over a period of time; and WHEREAS, California Government Code 565867.5 et seq. provides authority for cities to enter into development agreements; and WHEREAS, CEQA review is not required for the development agreement since an in-depth review occurred when the environmental review was approved for the Otay Ranch General Development Plan and adopted by the City on October 28, 1993. (Lonq Beach Sav. & Loan v. Lana Beach Redevel., 232 Cal.Rptr. 772, 881-2 [1986)) ; and WHEREAS, the Planning Commission and City Council held a joint public hearing on June 25, 1996 to consider the Pre- Annexation Development Agreement; and WHEREAS, the Planning Commission and City Council have reviewed the Pre-Annexation Development Agreement and recommend its approval. NOW, THEREFORE, the City Council of the City of Chula Vista ordains as follows: SECTION I: Pre-Annexation Development Agreement for a portion of the Otay Valley Parcel. In accordance with Section 65867,5 of the Government Code, the city Council of the City of Chula Vista has approved that certain document entitled "Pre-Annexation Development Agreement" for a portion of the otay Valley Parcel with United Enterprises, Ltd. , a California limited partnership on file in the office of the City Clerk as Document No, SECTION II: The Mayor of the city of Chula Vista 15 hereby authorized and directed to execute said Agreement for and on behalf of the City of Chula Vista. SECTION III: This ordinance shall take effect and be in full force on the ~t.-icth day from and after it~ c::)! C.-I effective date of annexation as set forth in the attached Pre- Annexation Development Aareement, Presented by Approved as to form by ~ V\ VîA .~<r- Q George Krempl, Deputy City Ann ¥. . Interim Moore, Manager City Attorney c: \or\ preannex. ov d C-d, Revised 6-24-96 ORDINANCE NO. 2682 AN ORDINANCE OF THE CITY OF CHULA VISTA ADOPTING THE PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND GREGORY T. SMITH AND GEORGIANA R. SMITH WHEREAS, a City of Chula Vista application is pending before the County of San Diego and LAFCO to have the Otay Valley Parcel included within City's sphere of influence; and WHEREAS, the development of the otay Valley Parcel will require substantial public improvements phased over a period of time; and WHEREAS, California Government Code §65867.5 et seg. provides authority for cities to enter into development agreements; and WHEREAS, CEQA review is not required for the development agreement since an in-depth review occurred when the environmental review was approved for the Otay Ranch General Development Plan and adopted by the City on October 28, 1993. (Lone¡ Beach Sav. & Loan v. Lone¡ Beach Redevel., 232 Cal.Rptr. 772, 881-2 [1986]) ; and WHEREAS, the Planning Commission and city council held a joint public hearing on June 25, 1996 to consider the Pre- Annexation Development Agreement; and WHEREAS, the Planning commission and City Council have reviewed the Pre-Annexation Development Agreement and recommend its approval. NOW, THEREFORE, the City Council of the City of Chula vista ordains as follows: SECTION I: Pre-Annexation Development Agreement for a portion of the otay Valley Parcel. In accordance with Section 65867.5 of the Government Code, the City Council of the City of Chula Vista has approved that certain document entitled "Pre-Annexation Development Agrcement" for a portion of the Otay Valley Parcel with Gregory T. Smith and Georgiana R. Smith on file in the office of the City Clerk as Document No.___ - . SECTION II: The Mayor of the City of Chula Vista is hereby authorized and directed to execute said Agreement for and on behalf of the city of Chula Vista. SECTION III: This ordinance shall take effect and be in full force on the tAirticth-<lùy frOl. 8Rà ilfter it!'! l"asoaE c cl Ù-I effective date of annexation as set forth in the attached Pre- Annexation DeveloDment Agreement, Presented by Approved as to form by ~ 1.1) Ì"A^",,-~ George Krempl, Deputy City Ann ¥. , Interim Moore, Manager City Attorney C:\or\pre.nnex.o~ ç§ [j-d-