HomeMy WebLinkAboutRDA Reso 2001-1762
RESOLUTION NO. 1762
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
ADOPTING SECOND AMENDMENT TO THE GATEWAY CHULA VISTA PROJECT
DISPOSITION AND DEVELOPMENT AGREEMENT (DDA); AUTHORIZING THE
AGENCY TO ENTER INTO A THREE YEAR LEASE FOR 10,000 SQUARE FEET OF
OFFICE SPACE; ACCEPTING $209,607.88 FOR SALE OF PHASE 1 AGENCY LAND
PURSUANT TO THE AMENDED DDA; AND AMENDING THE CURRENT YEAR
BUDGET FOR THE BAYFRONTITOWN CENTRE I PROJECT AREA BY
APPROPRIATING $58,500 FROM SALE PROCEEDS FOR LEASE PAYMENT
PURPOSES AND AMENDING THE SPENDING PLAN FOR BAY FRONT/TOWN
CENTRE I FOR FISCAL YEAR 2003 TO PROVIDE $234,000 FROM REMAINING LAND
SALE PROCEEDS AND FROM MERGED PROJECT AREA FUNDS
WHEREAS, the Agency and the Developer are parties to that certain Disposition and
Development Agreement dated June 6, 2000 ("DDA"), as amended by that certain First Amendment to
Disposition and Development Agreement dated September 25, 2001 ("First Amendment", collective the
originai DDA and the First Amendment are herein referred to as the "DDA".); and
WHEREAS, the DDA relates to redevelopment, development, and operation of a phased
First Class, First Quality 344,000 square feet mixed-use commercial/office project with restaurant and
retail components and common areas, including a five-tier 1300 space parking structure that spans all
Phases of the Project; specifically the retail component will include up to 81,000 square feet with a
restaurant, deli, coffee shop, financial institution, and other retail uses, Phase I will include 102,237
square feet in a five story office tower at the easterly portion of the Site, Phase II will include 125,000
square feet in a six story office tower, and Phase III will include 117,000 square feet in a six story office
tower at the westerly portion ("Project"); and
WHEREAS, capitalized terms used in this Second Amendment are defined and set forth in the
DDA and the First Amendment, unless separately defined in this Second Amendment, inclusive of the
Attachments thereto and hereto; and
WHEREAS, the financial assistance to be provided by the Agency to Developer pursuant to the
DDA includes the Agency Participation to be paid in up to five (5) separate installment payments with
specific Conditions Precedent thereto, as set forth therein; and
WHEREAS, pursuant to the First Amendment the Agency provided a Bridge Loan and disbursed
the First Installment Advance of $1,300,000 toward payment of the First Installment Payment of Agency
Participation ("First Installment"). The Bridge Loan is for a term of the first to occur of (i) June 15, 2002 or
(ii) the date Developer achieves Construction Loan Full Funding Status; and
WHEREAS, the balance of the First Installment includes (i) $209,607.88 as repayment for the fair
market value of the Phase I Agency Parcels inciuded in the Phase I development, (ii) plus reimbursement
for the costs of the Public Improvements pursuant to the terms of the Reimbursement Agreement in an
amount not to exceed $300,000.00, (iii) plus reimbursement for fifty percent (50%) of the Phase I Permit
Fees, not to exceed and estimated at $91,000 (collectively, "Balance"), the total of which is to be paid
after the Conditions Precedent to the First Installment Payment are satisfied; and
WHEREAS, Developer represents it is ready to close the GMAC Construction Loan of $13.75
million for Phase I of the Project and the proceeds thereof are sufficient to conti nue and complete
construction of the Phase I Improvements; and
WHEREAS, by this Second Amendment Developer desires to hold back the Balance of the
First Installment funding described above in Recital F in consideration for the Agency Lease (defined
Resolution No. 1762
Page 2
herein) and payment of rent thereunder, as hereinafter more fully described, in order for the Developer to
achieve Construction Loan Full Funding Status; and
WHEREAS, the Agency desires to accommodate Developer's request by this Second
Amendment and to enter into a lease for 10,000 square feet of office space in Phase I of the Project,
substantially in the form of the "Agency Lease" attached hereto as Attachment No. 2 and fully
incorporated herein by this reference, subject to the terms and conditions herein set forth and specifically
to the Conditions Precedent to Agency Lease, as hereinafter defined and set forth, thereby amending and
modifying the timing of and Conditions Precedent to the First Installment Payment of Agency Participation
under the DDA; and
WHEREAS, the County of San Diego ("County") has evidenced a desire to negotiate the terms of
a lease with Developer for approximately 25,000 square feet of Phase I office space for use by the District
Attorney's offices in south San Diego County. In furtherance thereof, Developer provided to Agency a
written letter of intent to lease Phase I office space to the County dated December 7, 2001, a true copy of
which is attached hereto as Attachment No. 3 and fully incorporated herein by this reference ("County
Office Lease Letter"); and
WHEREAS, the Community Redevelopment Law, Health and Safety Code Section 33000,
et seq., in particular Section 33220, promotes cooperation between redevelopment agencies and other
public entities, such as and including the County, in the planning, undertaking, construction, or operation
of redevelopment projects located upon the terms as such public entity determines. Section 33220
further provides the County may acquire interests in land in a project area from the Agency for
redevelopment in accordance with the Redevelopment Plan, and in connection therewith, such public
entity is authorized to become obligated to comply with Section 33437, which sets forth the obligations
the Agency must impose upon such public entity as a lessee of property acquired in a redevelopment
project; and
WHEREAS, the Agency Lease proposed and to be entered into pursuant to this Second
Amendment will further and facilitate achieving the County's objective to iease office space in Phase I for
use by the District Attorney's office; and
WHEREAS, the Agency Lease will become effective and a performance obligation of the Agency
only upon (and the date of) satisfaction by Developer of certain Agency Lease Conditions Precedent, as
defined and described hereinafter, including without limitation the closing of the Phase I Conveyance
Escrow and Developer achieving Construction Loan Full Funding Status ("Lease Effective Date").
WHEREAS, as the Developer continues its leasing activities for the Phase I Improvements, pro
rata portions of the Agency Lease will be released and terminated pursuant to a partial lease termination
document on a form approved by Agency ("Partial Lease Termination"). Upon execution of each Partial
Lease Termination, using the applicable form thereof, the Agency shall have no continuing or further
obligations under the Agency Lease with respect to the terminated and released portion of the Premises
upon the date of execution of the Partial Lease Termination Agreement; and
WHEREAS, the Agency will be authorized by Developer pursuant to this Second Amendment to hold
back ("Hold Back") the Balance of the First Installment Payment of Agency Participation (i.e., the amounts
described above in Recital F.) The Agency's Hold Back of such sums shall be reduced dollar for dollar
through the Agency's payment of Rent under the Agency Lease and Developer drawn downs triggered by
additional leases of Phase I the City and Redevelopment Agency approved the original Disposition and
Development Agreement (DDA) for the Gateway Chula Vista project on June 6, 2000 and a subsequent
First Amendment on September 9,2001 for the development of a 347,000 square foot office and retail
Resolution No. 1762
Page 3
project at the northwest corner of Third Avenue and "H" Street in the Town Centre I Redevelopment
Project Area.
NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of Chula
Vista does hereby approve the Second Amendment to the Gateway Chula Vista Project Disposition and
Development Agreement (DDA), in substantially the form presented with such minor modifications as may
be required or approved by the City Attorney.
BE IT FURTHER RESOLVED that the Redevelopment Agency is hereby authorized to enter into
a three year lease for 10,000 square feet of office space in Phase I of the Project on the terms presented
in a final form approved by the City Attorney.
BE IT FURTHER RESOLVED that the Redevelopment Agency does hereby accept $209,607.88
for sale of Phase 1 Agency Land pursuant to the Amended DDA.
BE IT FURTHER RESOLVED that the current year budget is hereby amended for the
BayfrontITown Centre 1 Project Area by appropriating $58,500 from Sale Proceeds for lease payment
purposes and amending the Spending Plan for BayfrontITown Centre 1 for fiscal year 2003 to provide
$234,000 from remaining land sale proceeds and from merged project area funds.
BE IT FURTHER RESOLVED the Chairman is authorized to execute the Second Amendment to
DDA and the Lease, and such other documents consistent with the terms thereof and approved by the
City Attorney that are necessary to implement the terms thereof and the closing of the GMAC construction
loan for Phase I of the Project.
PRESENTED BY
APPROVED AS TO FORM BY
~ s:~/
Chris Salomone
Community Development Director
________"u _.~._~____"_.~
Resolution No. 1762
Page 4
PASSED, APPROVED and ADOPTED BY THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA, CALIFORNIA this 17th day of December, 2001 by the following vote:
AYES:
Members Davis, Padilla, Rindone, Salas, Chair/Mayor Horton
NOES:
None
ABSENT:
None
ABSTENTIONS:
None
-ÆW;f:fJ¡,JïZ; y(
Shirley Horto
Chairman
ATTEST:
~S~
Chris Salomone
Executive Secretary
STATE OF CALIFORNIA)
COUNTY OF SAN DIEGO) ss:
CITY OF CHULA VISTA)
I, Chris Salomone, Executive Secretary to the Redevelopment Agency of the City of Chula Vista,
California DO HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution No.
1762 and that the same has not been amended or repealed.
Dated: December 18, 2001
~~
Chris Salomone
Executive Secretary