HomeMy WebLinkAboutRDA Reso 2003-1814
RESOLUTION NO. 1814
RESOLUTION OF THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA APPROVING THE
FOURTH AMENDMENT TO THE GATEWAY CHULA
VISTA PROJECT DISPOSITION AND DEVELOPMENT
AGREEMENT (DDA)
WHEREAS, the Redevelopment Agency and the Developer (Gateway Chula Vista,
LLC) 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, 2002 ("First Amendment"), as further
amended by that certain Second Amendment to Disposition and Development Agreement
dated December 17, 2001, ("Second Amendment"); and as administratively amended by
that certain Third Amendment to the Disposition and Development Agreement dated April
16, 2002 (the First Amendment, the Second Amendment, and the Third Amendment are
collectively referred to herein as the "DDA"); and
WHEREAS, the DDA relates to redevelopment, development, and operation of a
phased First Class, First Quality 344,000 square foot 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, timing of construction of the Project's Phase II improvements has been
delayed based upon overall market conditions and demand for office and retail space, the
effects of the recession on financial lending institutions, and by the unavoidable impacts of
the terrorist attacks in 2001. As a result, the developer is unable to comply with the original
terms of the DDA relating to completion of the aforementioned Phase II improvements; and
WHEREAS, the timing of release of Agency Installment Payments Two and Three
may be ineffective in the timely collateralization of the Phase II improvements, given the
experience with construction financing for Phase I. As a result, the developer has
requested a shift in the timing of release of Installment Payments Two and Three, as
provided for herein. The shift in timing of Agency installment payments should assist the
developer in more easily acquiring construction and/or permanent financing at preferred
interest rates;
WHEREAS, Agency is willing to make Developer's proposed adjustments to project
schedule and installment payments because (1) the project will benefit from improved
financing terms, (2) the proposed changes do not alter the original DDA framework work
-----_.~.__.._,~._----~
Resolution No. 1814
Page 2
projected timing for Agency financial participation; and (3) the project's continued success
is considered an important keystone to the overall success of the City's downtown
redevelopment effort.
NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of
Chula Vista does hereby approve the Fourth Amendment to the Gateway Chura Vista
Project Disposition and Development Agreement (DDA) in the form presented, with such
minor modifications as may be approved or required by the Agency Attorney.
PRESENTED BY
APPROVED AS TO FORM BY
PASSED, APPROVED and ADOPTED BY THE REDEVEL MENT AGENCY OF THE CITY OF
CHULA VISTA, CALIFORNIA this 15th day of April, 2003 th followi 9 vo
.~~
Stephen C. Padilla
Chainnan
AYES:
NOES:
ABSENT:
ABSTENTIONS:
Chair/Mayor Padilla; Members Davis, McCann, Salas, Rindone
None
None
None
ATTEST:
STATE OF CALIFORNIA)
COUNTY OF SAN DIEGO) ss:
CITY OF CHULA VISTA)
I, Laurie Madigan, Executive Secretary to the Redevelopment Agency of the City ofChula Vista, California
DO HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution No. 1814 and that
the same has not been amended or repealed.
Dated: April 15, 2003