HomeMy WebLinkAboutAgenda Packet 1992/07/06
Monday, July 6,1992
4:30 p.m.
'" declare un~er penalty of perjury that. ( am
em;lioyed by U,e City of Chuls Vista in the
Office Qf H1e City Clerk and that I posted
this Af,cn:'c,/Not;ce en the Buliel;n Board at
the Public ervices Bu"aing and at ity Hall on
DATED, " d Cf~ SIGN::: . '-'D~ ..
Council Conference Room
Administration Building
Soecial MeetinS1 of the City of Chula Vista City Council
CAll. TO ORDER
1. ROIJ. CAll.: Councilmembers Grasser Horton ~ Malcolm _, Moore _, Rindone _, and
Mayor Nader _'
CONSENT CALENDAR
(Items 2 & 3)
The staff recommendations regarding the following items 1isted under the Consent Calendar wiIl be enocted by the
Cowu;iI by OIU! motion wilhout discussion U1Ikss a Coundlmember, a member of the puhlU: or City staff requests
that the item be pulled for discussion. If you wish to speiJk 011 OIU! of these items, please fill out a 'Request to
Speak Form' avaiUlble in the lobby and submit it to the City Clerk prior to the meeting. (Complete the green form
to speak in favor of the staff recommendation; complete the pink form to speak in opposition to the staff
recommendation.) Items pulled from the Consent Cakndar wiIl be discussed after Action Items and Boards and
Commission Recommendations. Items pulled by the puhlU: wiIl be the first items of business.
2. WRITrEN COMMUNICATIONS:
a. Letter of resignation from the Montgomery Planning Committee and the Southwest
Redevelopment Area Committee - Nancy L. Palmer.
3.
ORDINANCE 2522
ADOPTING AN AMENDMENT TO THE EASTLAKE I PLANNED
COMMUNl1Y DISTRICT REGillATIONS AND APPROVING THE KAISER
DEVELOPMENT AGREEMENT (second readinR: and adootion) - Tbe
proposal is to construct a 1,350,000 square foot Kaiser Permanente Medical
Office Center to be located in the Ciry of Chula Vista. Staff recommends
Council place ordinance on second reading and adoption.
* * END OF CONSENT CALENDAR * *
PUBIJC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
The following items have been advertised and/or posted as puhlU: heorirJ&< as required by Ww. If you wish to speak
to any item, please fill out the 'Request to Speak Form' avaiUlble in the lobby and submit it to the City Clerk prior
to the meeting. (Complete the green form to speiJk in favor of the staff recommendation; complete the pink form
to speak in opposition to the staff recommendation.) Comments are IimiJed to five minutes per individual.
None scheduled.
ORAL COMMUNICATIONS
This is an opportunity for the general puhlU: to address the City Cowu;iI 011 any subject mntter within the Cowu;iI's
jurisdU:tion that is not an item 011 this agendiL (State Ww, however, generaIly prohibits the City Couru:iI from
taking action 011 any issues not included 011 the posted agendiL) If you wish to address the Cowu;iJ 011 sudI a
subject, please complete the yellow 'Request to Speak Under Oral Communications Form' avaiUlble in the lobby
and submit it to the City Clerk prior to the meeting. Those who wish to speak, please give your name and address
for record purposes and follow up action. Your time is IimiJed to three minutes per speaker.
Agenda
-2-
July 6, 1992
ACTION ITEMS
The items listed in this section of the agendLl are expected to eliciJ substantiJJl discussions and deliberations by the
Council, staff, or members of the general public. The items will be considend individually by the Council and staff
recommendJJtion may in certain cases be presented in the altemaJive. Those who wish to speak, p/elJse fill out
a "Request to Speak" form available in the lobby and submit it to the City Clerk prior to the meeting. PublU:
comments are limited to five rninuks.
4. DISCUSSION OF MATrERS RELATING TO HIRING FREEZE
BOARD AND COMMISSION RECOMMENDATIONS
This is the time the City Council will consider items which hove been forwarded to them for consideration by OIU!
of the City's Boards, Commissions and/or Committees.
None submitted.
ITEMS PUllED FROM TIlE CONSENT CALENDAR
This is the time the City Council will discuss items which hove been removed from the Consent Calendar. Agenda
items pulled at the request of the publU: will be considend prior to those pulled by Coundlmembers. PublU:
comments are limited to five rninuks per individuaL
OTIIER BUSINESS
5. CITY MANAGER'S REPORTfS)
a. Scheduling of meetings.
6. MAYOR'S REPORTfS)
7. COUNCIL COMMENTS
ADJOURNMENT
The City Council will adjourn to the Regular City Council Meeting on July 21, 1992 at 6:00 p.m. in the City
Council Chambers.
Notice is hereby given that the Mayor of the City of Chula Vista has called and will convene a special
meeting of the Chula Vista City Council on Monday, July 6, 1992, 4:30 p.m., in the Council Conference
Room, located in the Administration Building, 276 Fourth Avenue, Chula Vista, California.
.L .~~,t1-
Tim Nader, Mayor
PE-~:~.!"/f._~O
NANCY L. PALMER
;;:'i~c; C ':?tre>tlttl9i\9\~':C9J.:::
Chj~ll i'i-\) i :3ta.,- C(~~
91910-1034
OF ':h~ ,I.
e, I ClERi"'"
'{
4.~";'.
Jl...lflt?
1':;"'7':2
f"Javor..... T], In f\jadt-?r-
Cj.tv j...ja'll
Chu..:.3 \f i -;:;:.t d. ~ i.";~.~
D[~ar Mavc)r..:
It 1S with regret that J
the City of Chllla VIsta.
nave enjoyed mv service.
a comolete and tharouqh
.:;:r.ncf the city ~A,jE-'!11.
discontinue mv volunteer serVIce to
~'or most of the cast seven years 1
r have always ta~(en oride In dOIng
.JOb~ on servIng bot~ mv COmmlJnltv
In the la.31". 'v.f:~ar. m\/ r.'E:'~;:-oC)n~;ibi-l i.ties wit.h +..:hE' C:all.foF'nlo:)
Teachers AssociatIon at both the state and 10cal level have
Increased mar~(edlv. The comiflg year is shaPIng uo as even
more hectic. I have found it dIfficult to continue to
oerform my duties at a level with which I am satIsfied for
either the c:tv or tne .3ssoclation.
Please consider mv resignation effectIve 31 July 1992, for
the Montgomerv F'lanning Committee and~ because my membership
15 contingent on being a member of MF'C, the Southwest
Redevelooment Area Committee. The Growth Management
Oversight Commission is currently completing it's latest
r"'epor.t. I ~~Jl1.1 ser-;v(~.:o u.ntil 11.: i~::i comp.iE?ted.
I have always felt that the level of oarticlpation of the
community was one of Chula Vista/s greatest assets. I pray
it ~",i 1.1 continuE' t.o be so.
::3 i ncet-.121 v .
-I[!L/L Uf!!;' . )1:.; ~t) )L(/ ^z./
(\ .q.. ' 1.... -.
,~anL y L... ,.' Iller
cc: City Council
Planning Deoartment
\ -
~.'
WRrnEtas COMMUN~CA T~ONS
2CA. -I
~ 0.1/
J;~tY \fA
5 }l". if' 1;D
c\~~
~ 1fV')
..1'<)
Co
:-v<)
~
~<)
AN ORDINANCE OF THE CITY OF CHULA VISTA ADOPTING THE ~Q
EASTLAKE I PLANNED CO~ DISTRICT REGULATION -1-}<)
AMENDMENT AND KAISER DEVELOPMENT AGREEMENT FOR -10
EASTLAKE IlKAISER PERMANENTE oA)
~
0"1-
ORDINANCE ~ 5~~
WHEREAS, the area of land which is the subject of this ordinance amending the
EastLake I Planned Community District Regulations consists of 71.S acres located to the north
of Otay Lakes RoadlTelegraph Canyon Road, to the east of the proposed future State Route 125,
and lying on both sides of EastLake Parkway; and,
WHEREAS, the proposed amendment would modify the Planned Community District
Regulations and Land Use District Map for the EastLake I Activity Center by the amendment
of permitted land uses, including the zone reclassification of 2 acres of Village Center 2 (VC-2)
to Business Center 1 (BC-l); and
WHEREAS, the applicant, Kaiser Permanente, has requested a Development Agreement
for the vesting of various planning permits for the 30.6-acre Kaiser Medical Center located
within the northerly portion of the 71.S-acre area in return for certain extraordinary benefits to
be provided to the City of Chula Vista; and
WHEREAS, in 1982 the EastLake I General Development Plan was originally adopted.
In 1985 the EastLake I Sectional Planning Area Plan (SPA) was adopted and the EastLake I
General Development Plan (GDP) was amended to reflect that approval. On September 12,
1989 an amendment to the EastLake I SPA Plan was approved to allow the Salt Creek I project;
and,
WHEREAS, the Planning Commission held a duly advertised public hearing on said
EastLake I Planned Community District Regulations amendment and Kaiser Development
Agreement on June 24, 1992, and at the conclusion of said hearing recommended approval of
the proposed amendment and Development Agreement; and,
WHEREAS, the Planning Commission, having received certain evidence on June 3,
1992, and June 24, 1992, as set forth in the record of its proceedings and incorporated herein
by reference as if set forth in full, made certain findings as set forth in their recommending
Resolution No. EIR-92-01 herein and recommended to the City Council the approval of said
EastLake I Planned Community District Regulation Amendment and Kaiser Development
Agreement based on certain terms and conditions; and,
3-1
~ t!!:4~~ '
;iin
) to
;::
1(-'
";is
^,
..,.
".:
,j
.....-
0-
,
'^
;d
-,
J
..ili!
. . to
;5,
:'an
","'\
U'~on
a
~!lent
E 18
WHEREAS, the City Council set the time and place for a public hearing, together with
the purpose, which was given by the publication in a newspaper of general circulation in the City
and mailed notice was given to property owners within 1,000 feet of the exterior boundaries of
the proposed amendment area and Development Agreement at least ten (10) days prior to the
hearing; and,
WHEREAS, the hearing was held at the time and place as advertised, namely 7:00 p.m.
on June 30, 1992, in the Council Chambers, 276 Fourth Avenue, before the City Council and
said hearing was thereafter closed; and,
WHEREAS, the Final Supplemental Environmental Impact Report for this project
(EIR-92-o1) has been previously certified by the City Council of the City of Chula Vista; and,
WHEREAS, a public hearing having been noticed in accordance with Council policy was
scheduled before the City Council of the City of Chula Vista on the consideration of the
EastLake I Planned Community District Regulation Amendment and Kaiser Development
Agreement on June 30, 1992; and,
NOW, THEREFORE, BE IT RESOL YED THAT THE CITY COUNCIL OF THE CITY
OF CHULA VISTA does hereby determine, fmd, and resolve and orders as follows:
1.
PLANNING COMMISSION RECORD
The proceedings before the Planning Commission consisting of a public hearing
on the Draft Supplemental E1R held on June 3, 1992, and certification of the
Final Supplemental E1R in public hearing on this project on June 24, 1992, and
the unofficial minutes and resolutions resulting therefrom (Exhibit 1) are hereby
incorporated into the record of this proceeding.
2.
COMPLIANCE WITH CEQA
The City Council of the City of Chula Vista has reviewed and considered the
Final Supplemental EIR-92-01, the environmental impacts therein identified for
this project, the Candidate CEQA Findings attached hereto as Exhibit 3-1, the
proposed mitigation measures contained therein, the Mitigation Monitoring
Program attached hereto as Exhibit 3-2, and the Statement of Overriding
Considerations which is attached hereto as Exhibit 3-3. The City Council, by
approving the Final Supplemental EIR, has found that it was prepared in
accordance with the requirements of the California Environmental Quality Act,
-2-
'! - 2..
the State EIR Guidelines, and the procedures of the City of Chula Vista. The
certifying resolution number is incorporated herein by reference.
3. CONSISTENCY WITH GENERAL PLAN
a. The proposed EastLake I Planned Community District Regulations
Amendment is in conformity with the provisions of the Chula Vista
General Plan.
k
4. i. CEQA FINDINGS, MITIGATION MONITORING PROGRAM, AND
STATEMENT OF OVERRIDING CONSIDERATIONS
a. Adoption of Findings.
The City Council does hereby approve and accept as its own, incorporate
as if set forth full herein, and make each and every one of the CEQA
Findings attached hereto as Exhibit 3-1.
From the facts presented to the City Council, the Council has determined
that said amendment and Development Agreement is consistent with the
City of Chula Vista General Plan and that public necessity, convenience,
general welfare and good zoning practice support adoption of the
amendment to the EastLake I Planned Community District Regulations
Amendment and Kaiser Development Agreement.
b. Certain Mitigation Measures Feasible and Adopted.
As more fully identified and set forth in the previous environmental
documents for this project area and this supplemental environmental
document (EIR-92-01) and the CEQA Findings for this project which is
hereby attached hereto as Exhibit 3-1, Coun~il hereby fmds that pursuant
to Public Resources Code Section 21081 and CEQA Guidelines Section
15091, that the mitigation measures described in the above referenced
document are feasible and will become binding upon the appropriate entity
such as the project proponent, the City, or other special districts which
has to implement these specific mitigation measures.
-3-
.3..3
c. Feasibility of Alternatives.
As is also noted in the environmental document in paragraph b above,
alternatives to the project which were identified as potentially feasible
were found not to be feasible.
d. Adoption of Mitigation Monitoring Program.
As required by the Public Resources Code Section 21081.6, City Council
hereby adopts the Mitigation Monitoring and Reporting Program
(Program) set forth in Exhibit 3 to this resolution and incorporated herein
by reference as set forth in full. The Council hereby finds that the
Program is designed to ensure that during the project implementation and
operation, the permittee/project applicants and other responsible parties
implement the project components and comply with the feasible mitigation
measures identified in the Findings and in the Program.
e. Statement of Overriding Considerations.
Even after the adoption of all feasible mitigation measures and
alternatives, certain significant or potentially significant environmental
affects caused by the project or cumulatively will remain. Therefore, the
City Council of the City of Chula Vista does hereby issue pursuant to
CEQA Guidelines Section 15093, as set forth in Exhibit 3-3 attached
hereto, a Statement of Overriding Considerations identifying the specific
economic, social, and other co~siderations that render the unavoidable
significant adverse environmental affects acceptable.
f. Amendment to Planned Community District Regulations.
5. THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS
FOLLOWS:
SECTION I. That the conditions of approval of the amendments to the EastLakc
I Planned Community District Regulations attached hereto as Exhibit 8 and
incorporated herein as set forth in full are as follows:
.
1)
The applicant shall implement each and every mitigation measure
identified in the Final Supplemental Em and in the CEQA Findings
previously adopted.
-4-
3-4/
2) The applicant and all other responsible parties shall implement each and
every aspect of the Mitigation Monitoring Program previously adopted.
3) Variance of the conditions of approval to occur shall, at the option of the
City, be exercised at a public hearing, notice of which an opportunity
which the applicant has been given to be heard on the matter, revoke the
zoning regulations herein above conditionally approved.
SECTION n. That the zoning map or maps established by Section 19.18.000 of
the Chula Vista Municipal Code be hereby amended by adding thereto the
following amendment:
That that certain property consisting of 59.8 acres located at the northwest
quadrant of EastLake Parkway and Otay Lakes Road described as Village Center
I (RM-25, RM-44, OS 5) in PCM-92-Q2 be and the same is hereby zoned to
Village Center 1 (OS 5), and
SECTION m. That said zoning map of the City of Chula Vista is further
amended by adding the following amendment:
That that certain property consisting of 2 acres located at the southeast comer of
EastLake Parkway and Fenton Street described as Village Center 2 in PCM-92-02
be and the same is hereby zoned Business Center -I, and
SECTION IV. That the proposed amendments to the land use regulations
contained in the EastLake I Planned Community District Regulations for the
Village Center Districts I, 2, and 3 described in PCM-92-02 be and the same is
hereby amended in accordance with Exhibit 8.
SECTION V. That the Kaiser Development Agreement attached hereto as
Exhibit 13 and incorporated herein as if set forth in full, is hereby adopted, and
SECTION VI. This ordinance shall take affect and be in full force on the 30th
day from the date and after its passage and approval.
-5-
3....1
6. NOTICE OF DETERMINATION
The Environmental Review Coordinator of the City of Chula Vista is directed
after City Council approval of this project to ensure that a Notice of
Determination is med with the County Clerk of the County of San Diego.
Presented by
Approved as to form by
/5/!:-r dr&-/-f-
Robert A. Leiter
Director of Planning
/>/ ~y Jrd/!
BrUce M. Boogaard
City Attorney
II:"- .tri)
-6-
3-~
COUNCIL AGENOA STATEMENT
Item:2.1 ~...V
Meeting Date 6/30/92
ITEM TITLE: Public Hearing: Consideration of EastLake -I General
Development Plan Amendment, EastLake I SPA Plan Amendment,
EastLake I Activity Center Precise Plan Guidelines, EastLake I
Publ ic Facil ities Finance Pl an, EastLake I Pl anned Community
District Regulations Amendment, EastLake I Activity Center Air
Quality Improvement Plan, EastLake I Activity Center Water
Conservation Plan, Kaiser Medical Center Precise Plan, Kaiser
Medical Center Conditional Uses Permit, and Kaiser Development
Agreement; EastLake Development Company and Kaiser Permanente
Resolution 11070~ Approving the EastLake I General
Development Pl an, EastLake I SPA Pl an Amendment, EastLake I
Activity Center Precise Plan Guidelines, EastLake I Public
Facilities Finance Plan, EastLake I Activity Center Air
Quality Improvement Plan, EastLake I Activity Center Water
Conservation Plan, Kaiser Medical Center Precise Plan, Kaiser
Medical Cerr~ Conditional Use Permit, CEQA Findings,
Mitigati~~'llOnitoring Program and Statement of Overriding
Conside~on for EastLake I/Kaiser Project
~,~ .
9r.(!\'ilance 2- S;2.. ';L Adopting an amendment to the EastLake I
,:\)'Jitanned Community District Regulations and approving the
~v'- Kaiser Development Agreement
SUBH~~~Y: Director of Planning ~~
REVIEWED BY: City Manager-J4 PO@ (4/5ths Vote: Yes_No..x.J
The applicants, EastLake Development Company and Kaiser Permanente, have
submitted the above referenced plans and application for the Kaiser Medical
Center Project, located north of Otay Lakes Road between EastLake Parkway and
future SR-125.
The property is located within the EastLake I Village Center and was planned
in 1985 as part of the first phase of the 3,OOO! acre EastLake development.
Copies of the draft Supplemental Environmental Impact Report 92-01 were
previously forwarded to the Council. Included in this report are the DRC
staff report, RCC recommendations, Planning Commission staff report, and the
various plans and applications referenced in the Item Title.
A Community Forum was held at EastLake Elementary School on May 26, 1992, to
familiarize area property owners and residents with the Kaiser project.
RECOMMENDATION: That Council:
1. Adopt a reso 1 ut ion approvi ng the General Development Pl an amendment, SPA
Plan amendment, Public Facilities Finance Plan, Water Conservation Plan,
Air Quality Improvement Plan, EastLake Activity Center Precise Plan
Guidelines, Conditional Use Permit, Precise Plan, CEQA Findings,
Mitigation Monitoring Program and Statement of Overriding Considerations;
~\ - \
Page 2, Item c~.n3 · <!..-
Meeting Date 6/30/92
2. Adopt an ordinance approving the Planned Convnunity District Regulations
Amendment, and the Kaiser Development Agreement.
BOARDS/COMMISSIONS RECOMMENDATION: On May 18, 1992, the Resource
Conservation Convnission reviewed the Supplemental EIR, Air Quality Improvement
Plan and the Water Conservation Plan and recommended approval with the request
that the City establish gUidelines for the preparation of Air Quality
Improvement Plans and Water Conservation Plans for future projects.
On June 24, 1992, the Planning Convnission recommended by a vote of 6-0
(Tuchscher absent) approval of the EastLake I/Kai ser project. The Pl anning
Convnission resolutions and meeting minutes are attached. Other
reconvnendations by the Commission included:
1. Adding language to the Development Agreement to encourage
Kaiser to work with local educational institutions to establish
and promote health care job training and education programs.
2. Minor wording change to Mitigation Measure 4.3.4.5 to clarify
the requirement for an access road from Otay lakes Road north
to Fenton Street extension at the time of issuance of a
building permit for Phase III of the Kaiser Medical Center.
On June 8, 1992, the Design Review Convnittee reconvnended approval of the
Kaiser Medical Center Precise Plan by a vote of 4-0.
DISCUSSION:
1.0 Historv
The 1982 EastLake I General Development Plan (GDP) was originally
adopted as the City's General Plan for the Eastlake I project area.
In 1985, the GDP was amended to reflect the preparation and approval
of the EastLake I SPA Plan. The General Pl an Update, adopted in
July 1989, incorporated the previous Council approvals of Eastlake I
GDP and SPA Plan into the City's General Plan.
The Salt Creek I project which was approved on September 12, 1989,
constituted the last amendment to the Eastlake I 6DP and SPA Plan by
changing a 130-acre area originally planned for industrial to
residential. This area is currently under development.
The currently adopted EastLake I SPA Plan designates 71.8 acres in
the southwest portion of the plan area for Village Center
development. The SPA Plan states that the Village Center will
contain shopping, restaurants, offices, high density residential,
lakes, open space and civic uses. The Village Center was to be
divided into two areas. The area identified as VC-l on the adopted
SPA Plan, located immediately to the north of Otay lakes Road and
west of EastLake Parkway, includes 59.8 acres, while VC-2, located
~\-~
Page 3, Item d/8"'C
Meeting Date 6/30/92
to the north of Otay Lakes Road and east of EastLake Parkway,
includes 12.0 acres. In order to accommodate the Kaiser Permanente
Chula Vista Medical Center proposal, the applicants are proposing an
amendment to the adopted Eastlake I SPA Plan to modify the types of
uses permitted in the Activity Center, or former Village Center,
portion of the adopted SPA. SpeCifically, the area currently
designated as Village Center (VC-I) would be divided to include 30.6
acres of MC-I, Medical Center use, 17.3 acres of VC-l, village
center use, and 11.9 acres of open space/public facility. The
approved 12.0-acre VC-2 area would be reduced to 10 acres and would
include 6.0 acres of office/commercial VC-2 use and 4.0 acres of
community purpose facil ity use, such as church use. The two acres
of land, located at the southeast intersection of Eastlake Parkway
and Fenton Street, is proposed to be redesignated for employment use
(E-10) and would be moved from the Activity Center to the Business
Center portion of the SPA Plan. In addition to these changes, the
proposal would eliminate all residential use from the Activity
Center. A breakdown of the currently approved and proposed uses and
the corresponding acreage is provided in the following table and is
shown on Exhibit 6.
Table 1
Eastlake I Activity Center land Use Statistics
land Use
Currentlv Aooroved
Prooosed
Retail/Commercial
Office/Commercial
Residential
Open Space/Public Facility
Medical Center
Employment
Community Purpose Facility District
Totals
22.2 ac
12.0 ac
18.0 ac (405 du's)
19.6 ac
N/A
N/A
N/A
71.8 ac
17.3 ac
6.0 ac
0.0 ac
11.9 ac
30.6 ac.
2.0 ac.
4.0 ac.
71.8 ac
Villaae Center Conceot
The Eastlake Master Plan contains two Village Centers within the
3,200 acre community. These Village Centers were to be located
within an "activity spine" in close proximity to a major
transportation corridor. Along these transportation corridors would
be the two Village Centers plus employment center, community park,
school facil ities and institutional uses. Each of the residential
neighborhoods would have vehicular and pedestrian access to a
Vi 11 age Center.
The Kaiser Medical Center is proposed to be located within the first
Vill age Center between future SR-125, Otay lakes Road and Eastlake
Parkway. Originally, this Village Center was planned as a place
where local needs of the individual residential neighborhoods would
~\-3
Page 4, Item::t' ~.....~
Meeting Date 6/30/92
be met. The Village Center was located at the north end of the
activity corridor near the hub of the transportation system, l.e.,
Otay lakes Road and SR-125. This location is in close proximity to
the Business Park and the individual residential neighborhoods
(Hills, Shores and Greens). The mix of uses was to be a combination
of apartments, senior citizen housing, retail, civic and visitor
serving commercial with water features, library, transit center,
trails and other amenities. Most of the uses were planned to be low
scale and oriented toward serving Eastlake residents and the
surrounding area.
The Kaiser Medical Center, with 6 to 9 story buildings and
multi -level parking structures, represents a major change to the
original concept of the Village Center plan. As the Kaiser project
evolved, it became obvious that the Kaiser Medical Center would not
work with the small scale Village Center concept without major
revisions.
As a result of this realization, the Village Center was re-destgned
to be compatible with the Kaiser project. The residential uses were
removed and a mix of specialty shopping, entertainment, restaurant,
auto center, offices, and other uses were selected as being more
supportive of a regional medical office center. These uses have
been arranged to work with the design and scale of the Kaiser
Medical Center as well as being supportive of Eastlake resident's
needs.
The new plan for the Village Center described above is not without
certain tradeoffs. The design and functioning of the Village Center
becomes more cri t i ca 1 when the uses become more i ntens ive.
Accordingly, the requirement for precise plan approval of each use
within the Village Center will be required.
2.0 Eastlake II (Eastlake I Exoansionl General Develooment Plan
Amendment (Exhibit 4l
The proposed amendment to the Eastlake General Development Plan
consists of certain minor text amendments and a change to the
General Development Plan map to change the designation of the Kaiser
Medical Center site (30.6 acres) from Retail-Commercial to
Public/Quasi-Public, and to change 2.0 acres at the southeast corner
of Fenton and Eastlake Parkway from Professional & Administrative to
Research and limited Manufacturing, to move the candidate church
site from the west side of Eastlake Parkway to the east side, and to
redesignate the remainder of the Retail-Commercial south of the
Kaiser Medical Center from High Residential Retail-Commercial to
Retail Commercial.
~l-l\
Page 5, Item ~\ 16+c....
Meeting Date 6/30/92
All of the above changes to the General Development Pl an are the
resul t of the repl anni ng of the Vill age Center. Essentially, the
principal change starts with the prosed Kaiser Medical Center and
continues through the remaining portions of the 71.8 acre Village
Center to reflect uses that will be compatible with and
complementary to the Medical Center.
3.0 EastLake I SPA Plan Amendment {Exhibit 51
The proposed amendment to the EastLake I SPA Plan consists of
substantial additions to the text to describe the new design concept
for the revi sed Vi 11 age Center and changes to the SPA Pl an map to
reflect the Kaiser Medical Center.
In addition to the Kaiser Medical Center, the remaining portions of
the EastLake Village Center will include retail commercial, hotel,
church and daycare, restaurants, office uses, publ ic 1 ibrary and a
transit center.
The Final Supplemental Environmental Impact Report identifies an
impact arising from the movement of 405 units of rental housing out
of the Village Center. The units are being removed but discussions
are underway wi th EastLake Development Company to relocate these
units within the remaining EastLake ownership. Rental units are
important in helping the City meet its affordable housing goals.
4.0 EastLake I Activitv Center Precise Plan Guidelines {Exhibit 61
The EastLake Activity Center (71.8 acres) is comprised of three
areas. The site north of Otay Lakes Road and south of Kaiser
Medical Center is 29.2 acres. The Kaiser Medical Center is 30.6
acres. The site east of EastLake Parkway is 10 acres, plus a 2.0
acre employment park area.
In 1985, the EastLake I SPA Plan was approved with provisions for
the preparation of a precise plan for the Village Center (EastLake
Activity Center described above) prior to any building
construction. The idea in 1985 was that when the time came to begin
constructing the Village Center, a precise plan would be prepared to
guide the site planning and architectural design of the various land
uses.
The applicant began discussions on the Precise Plan with City staff
in July 1991. The design evolved from early ideas about traditional
"main street" design to the modified concept reflected in the
present proposal. The "axial" concept finally settled on seemed to
tie the site together functionally as well as providing pedestrian
connections with the uses to the east and south.
~\ ..s
Page 6. Item d.-\ to +<!.J
Meeting Date 6/30/92
The Conceptual Master pl an incl uded in the Guidel i nes illustrates
the kinds of uses that could work well together and be compatible
with the Kaiser Medical Center. The Conceptual Master Plan does not
restrict the developer to specific uses. The uses are simply
"typical" uses that would serve the EastLake community and work well
with the overall Village Center concept.
For example, the west site might contain a theater, medical center,
offi ces, special ity retail, restaurants, auto center, and 1 i brary.
The east side might contain a health club, church, daycare center,
offices and a hotel.
The major theme is to create an urban village by having animation
and interest in the buildings and the landscape features. The
1 ibrary could be a key civic element and has been located in a
prominent location in close proximity to the water features which
will be a dominant landscape element in the design of the site.
The design channel s the pedestrian toward intersections at
Fenton/EastLake Parkway and Otay Lakes Road/EastLake Parkway which
are safe crossing .locations. A pedestrian bridge will be located
across Otay Lakes Road, west of EastLake Parkway, to facilitate the
pedestrian linkage from EastLake Greens to the Activity Center. The
timing of construction of the pedestrian bridge will depend upon the
traffic volume on Otay Lakes Road.
This description of the "end state" of the Village Center
deve 1 opment is represented by the Conceptual Master Pl an conta i ned
within the EastLake I Activity Center Precise Plan Guidelines. The
Conceptual Master Plan plan, coupled with the criteria contained in
the Guidelines, is intended to guide future individual precise plan
submittals within the area.
As each precise plan is approved, the Conceptual Master Plan will be
updated and, therefore, kept current at all times. As future
precise plan proposals are presented, staff will determine whether
there is substantial conformity of design, improvements,
landscaping, and grading of the proposed use with the Conceptual
Master Plan. If staff determines that the proposed use does not
substantially conform to the Guidelines, . then the proposed use would
require an amendment by the City Council.
The Conceptual Master Plan is divided into phases to show the
minimum amount of area required to be precise planned with each
phase. This is necessary to avoid discontinuity in the physical
development of the site. Certain common amenities such as public
improvements, landscaping, off-street parking, access, lighting and
signage need to be included in each phase together with individual
uses.
~I-~
Page 7, Item ~ \ to... t.>
Meeting Date 6/30/92
5.0 Public Facilities Finance Plan UDdate {Exhibit 71
The original EastLake I Public Facilities Finance Plan was adopted
by the City Council on February 19, 1985. The proposed Eastlake I
SPA Pl an amendment requires an update to the adopted Eastlake I
Public Facilities Finance Plan.
This update consists of two tasks: (1) an update of the plan to
reflect changes since 1985, and (2) to. identify additional public
facilities needed by the Kaiser amendment, if any.
The major change to the SPA Plan since 1985 consists of the Salt
Creek I amendment which changed approximately 130 acres from
Business Park to residential. The Salt Creek I project consists of
550 dwelling units and is under construction.
The additional publ ic facil ities needed by the proposed amendment
consist primarily of traffic related facilities. Other public
facil ities are adequate or will be provided by the applicant prior
to the issuance of building permits or at appropriate future times
in accordance with the phased construction of the Eastlake Activity
Center.
5.1 Traffic Facilities
The traffic facilities required to meet the new demand created by
the Kaiser Medical Center are based upon a trip generation rate of
26 ADT per 1,000 square feet of floDr area.
A total of 49,440 ADT would be generated by the proposed SPA Plan
amendment which includes the Medical Center plus the Village
Center. Of this total, 34,710 ADT would be produced by the medical
center. Phase I and II of the Medical Center would generate 20,670
ADT while Phase III would generate 14,040.
In comparing the Eastlake I SPA total trips to adopted plans, there
are two cri t i ca 1 compari sons. The fi rst is compari ng the total
traffi c generated by the entire Eastlake I SPA Pl an i ncl udi ng the
Medical Center (65,794) to the total traffic assumed in the General
Plan (43,750). The second is comparing the total traffic generated
by the Eastlake I SPA with only Phase I and II of the Medical Center
(51,174) to the total traffic assumed in the Transportation Phasing
Plan (34,116). This latter comparison is the more important of the
two. It indicates that the Eastlake I SPA Plan with Phases I and II
of the Medical Center would generate an estimated 17,638 more ADT's
than was allocated to the site in the Transportation Phasing Plan.
These extra trips can be accommodated by planned improvements to the
street system prior to SR-125 construction together with offsetting
reductions from Eastlake's "Approved Projects. identified in the
City's Transportation Phasing Plan or the trips generated by the
Medical Center are less than anticipated in the traffic analysis.
~l-l
Page 8, Item ~ \ fO....c.,.
Meeting Date 6/30/92
The traffic analysis shows that all intersections would continue to
operate within the City's level of service standards with the
additional traffic during the interim (pre-SR 125) condition,
however, the buildout situation would not meet level of service
standards without additional street facilities. The mitigation
measures recommended by the traffi c report will properly condit ion
the development to meet the traffic threshold standards.
6.0 Air Oualitv ImDrovement Proaram (Exhibit 91
The City's Growth Management Ordinance requires that projects
invol ving a SPA Plan amendment prepare an Air Quality Improvement
Plan. This plan is intended to focus attention on those programs
which can be implemented with the proposed project to reduce air
po 11 utants.
The air qual ity problem in San Diego is primarily ozone. Ozone
levels are exceeding State and Federal standards. Ozone is the
result of the chemical reaction of hydrocarbons and nitrogen oxide
in the presence of bright sunl ight. In 1988, San Diego County
exceeded the Federal standard on 45 days (.12 ppm) and the State
standards on 160 days (.09 ppm).
Accordingly, the Kaiser organization has prepared a transportation
demand management program for this project. This program will
concentrate efforts on reducing automobile emissions by encouraging
employees to carpool, vanpool, use public transportation, bicycle or
walk to work which will in turn reduce air pollutants.
In addition, the Village Center site will incorporate a transit
center facil ity, approved by the City Transit Coordinator, and 120
spaces of shared parking for park and ride purposes will be provided
(see Public Facilities Finance Plan).
7.0 Water Conservation Plan (Exhibit 10)
The Growth Management Program also requires the preparation of a
Water Conservation Plan for major projects. The plan prepared for
the project proposes various on-site measures to conserve water
usage such as ultra-low flow toilets and shower heads, faucet
aerators, hot water pipe insulations and special hospital equipment.
In addition, the plan proposes to implement outdoor/landscaping
conservation measures which include efficient irrigation systems,
moisture sensors, low water use landscaping, installation of
reclaimed water lines and water conserving practices during grading
and construction.
Off-site measures require the appl icant to comply with any future
water offset policy adopted by the San Diego County Water Authority,
local water districts or the City of Chula Vista.
d.-\ ~ 8'
Page 9, Item d\~"'~
Meeting Date 6/30/92
The net result of the proposed amendment with respect to water usage
is an increase of .16 MGD with the proposed water conservation
measures. These measures will be incorporated into the CUP
conditions of approval as well as the Mitigation Monitoring Program.
8.0 Conditional Use Permit (Exhibit 11\
The proposed medical office center involves the northerly 30.6 acres
of the EastLake I Village Center. At full buildout, the Medical
Center will contain 439 hospital beds (785,000 square feet of floor
area), 485,000 square feet of medical and administrative offices, a
35,000 square foot central plant, three parking structures to
accommodate 4,271 cars, and surface parking for an additional 148
cars.
8.1 Adiacent Zonina and Land Use
North - PC - EastLake I Employment Park - Business Park
South - PC - EastLake I Village Center - Vacant
East - PC - EastLake I Employment Park - Business Park
West - PC - SR 125 and SDG&E easement - vacant/utilities
8.2 Existina Site Characteristics
The 30.6 acre site is relatively flat and currently vacant. The
site has been rough graded and all abutting streets and utilities
are installed. The community trail connecting EastLake Hills and
Shores to the Vi 11 age Center is located along the west side of
EastLake Parkway. EastLake Parkway is a 4-1ane road with a
landscaped median which provides access to the Village Center.
8.3 ProDosed Use
The medical center would be constructed in three phases. Phase I
would be devoted to the construction of a medical office building,
parki ng structure, and central p1 ant. Construction is proposed to
begin in 1993, with completion of the first phase by 1995. Phase 2
would begin approximately one year after the start of Phase I and is
expected to be completed by 1997. Phase 2 would consist of the
first of two hospital wings and a parking structure. The third
phase of the project would only be constructed when membership
growth is sufficient to warrant the provision of the second hospital
wing expansion of the medical office building and parking structure.
The medical office building (Phase I) is six stories with a
penthouse and the hospital towers (Phases II & III) are seven
stories with a penthouse. The expanded medical office building
(Phase III) would be nine levels.
d-l -'1
8.4
Page 10, Item ~ I ~....(!..
Meeting Date 6/30/92
The parking structure would be constructed in three phases along the
western project boundary and would range in height from five levels
at the southerly end to seven levels at the northerly end.
loading and unloading is located between the hospital and the
parking structure. The loading areas are screened from the north
and south ends, while permitting through access only to fire
protection/emergency vehicles.
Vehicular circulation is controlled by an on-site loop road
connecting Eastlake Parkway to Fenton Street (extended). Vehicle
entrance to the site is assigned primarily to one or more user
groups as follows:
Northeast entrance - Service, maintenance, employee, staff
doctors, and ambulance.
Southeast entrance - General publ ic, drop-off patient, walk-in
emergency
Southwest entrance - Patient and visitor
located between the medical office buildings and the hospital is a
public courtyard at multiple levels. Stairways, landscaping, water
features, and outdoor dining are intended to make the courtyard the
main publ ic meeting place within the complex. The diagnostic and
treatment portion of the hospital is 3 stories tall and is located
along the north side of the courtyard.
Reason for location of Kaiser Medical Center at Eastlake
Kaiser Permanente has projected a need for a new medical office
center to serve their South Bay membership. The timeframe for
planning and constructing a facility of this type is typically seven
years. The current membership in the South Bay is approximately
100,000, which is enough members to support the proposed facility
today.
Ka i ser has evaluated its needs and found that its exist i ng main
hospital facility (the Zion facility) has a service capacity of
approximately 300,000-350,000 members with a current demand of
393,000 which will grow to 500,000 by 1998. The Chula Vista
facility will reduce the overcrowding at the Zion facility and
provide more convenient medical service to Chula Vista residents and
employers.
Kaiser has evaluated over 40 sites in the South Bay over the past
10-15 years. These investigations. were narrowed down to five sites
- all of which are within or near the City of Chula Vista. These
sites included locations. on Baldwin's property north of Telegraph
~\- Ii)
Page 11, Item a..\IO...~
Meeting Date 6/30/92
Canyon Road, south of Telegraph Canyon Road, Rancho Del Rey, an
EastLake IV site near future Orange Avenue, and the EastLake I
site. Each of the five sites was evaluated for medical center
suitability and expected time required to process the necessary
permits. Three of the sites were in the unincorporated area and not
planned or zoned for urban development. The remaining two sites
were in the City of Chula Vista and planned for urban development.
The Rancho Del Rey SPA III site which is north of Telegraph Canyon
Road was designated for a school and park site and surrounded on
three sites by residential development. The EastLake I site was
designated for commercial/office development and was selected as the
preferred site in accordance with Kaiser's site selection criteria.
8.5 Circulation
The main entrances to the medical center would be from the extension
of Fenton Street and opposite Miller Drive from EastLake Parkway.
Regional access to the property would eventually be provided by
SR-125 as well as Otay Lakes Road. A full interchange is proposed
at Otay Lakes Road. In addition, a half-diamond interchange at
EastLake Parkway/SR-125 would facilitate access and relieve
congestion at SR-125 and Otay Lakes Road. This half-diamond
interchange is not currently pl anned as part of SR-125 and must
receive approval from CalTrans before it could be constructed.
All intersections would operate at acceptable levels of service with
the project (exclusive of Phase III) with planned TPP improvements
during the pre-125 condition. The pre-125 mitigation measures
include widening Telegraph Canyon Road to 6 lanes plus widening East
"H" Street to 8 lanes from 1-805 to Hidden Vista Drive. Also, an
access road from Otay Lakes Road up to Fenton Street (extended),
will be constructed. EastLake Parkway will be widened to six lanes
between Otay Lakes Road and Fenton Street. Otay Lakes Road will be
widened to 8 lanes between SR-125 and EastLake Parkway.
8.6 Land Use/Comoatibilitv
The primary goal of the proposed project is to construct a new
Kaiser Permanente Medical Office Center on the 30.6 acre site to
serve Chula Vista and other South Bay Kaiser members who are
currently going to the Zion facility in San Diego to receive medical
care.
The Kaiser facility is clearly a regional medical office/hospital
center. It is located within the Activity Corridor which will be
served by the future SR-125 transportation corridor. This Activity
Center is part of the larger EastLake master plan concept which
includes a number of more intensive land uses such as commercial,
high school, churches, community park, higher density residential,
dl..1l
Page 12, Item e...\ ~~o....
Meeting Date 6/30/92
etc. located between SR-125 corridor and EastLake Parkway. Thi s
location for a regional medical office/hospital center is-compatible
with the overall EastLake master plan.
9.0 Precise Plan - Kaiser Medical Center (Exhibit 12)
The initial design of the Kaiser Precise Plan was reviewed by the
Design Review Committee on April 27. The expressed concerns about
the project architecture and site design focused on:
Length and massing of the proposed parking structure,
especially along the westerly building facade.
Proposed setbacks for the hospital and medical office building
structure, specifically Phase III nursing tower and Phase III
medical office building expansion.
Medical office building overall "monolithic" form.
Spatial and architectural relationships between the medical
office building and the southern portion of the Activity Center.
Central Plant area screening.
Design and screening of the courtyard area between the medical
office building and hospital loading areas.
Color palette and use of materials on buildings and common
space areas.
Processing and timing of Phase III.
On May IS, 1992, the project architect presented a number of
schematic design solutions and modifications to address the concerns
raised by the DRC on April 27, 1992.
The proposed modifications included:
a. Reduction of Phase II parking segment from 7 levels to 6 levels.
b. Reduction of the southern portion of Phase III parking
structure from 9 levels to 6 levels.
c. Reduction of the northern portion of Phase III parking
structure increment from 9 levels to 7 levels and horizontal
staggering of upper parking levels along EastLake Parkway.
d. Horizontal staggering of Phase III Medical Office Building mass.
~\ ..r.l.
Page 13, Item ~\ P.:>~~
Meeting Date 6/30/92
The Design Review Committee reviewed the revised design of the
Kaiser Medical Center on June 8, 1992. The DRC recommended approval
with conditions necessary to ensure that the project is functionally
and aesthetically balanced and properly designed.
A large scale model of the medical center has been prepared by the
applicant to demonstrate the site and building relationships. This
model will be available at the public hearing and will be used to
discuss the principal features of the project's design.
10.0 Develooment Aareement (Exhibit 13\
The attached Development Agreement between Kaiser Permanente and the
Ci ty of Chul a Vi sta represents an agreement to vest the various
permits in return for certain extraordinary benefits to the City of
Chula Vista. These benefits constitute additional opportunities for
mutua 1 cooperat i on between Ka i ser and the City. The general terms
of this agreement are described in the attached memorandum from John
Goss, dated June 10, 1992 (Exhibit ~).
11.0 Conclusion
The combined processing and public hearing for the various plans and
permits included in this project is unique. Normally, the planning
amendments would be separated from the zoning and design permits.
By combining both permits into a single process, the time required
to process this project was reduced by over 50%.
The attached resolutions which contain the conditions of approval
include all of the EIR Mitigation Measures contained in the
Environmental Impact Report.
FISCAL IMPACT: The fiscal impact of the Kaiser Medical Center is included
in Appendix I of the Technical Appendices to the Eastlake I SPA Plan
Amendment/Kai ser Envi ronmental Impact Report. The Eastlake Activity Center's
annual impact after buildout is projected to be a positive $263,009 per year
in current 1992 dollars.
WPC 0340p
~I-l~
"
h.
THE Cl1. JF CHUL4 VISTA PAR1Y DISCLOSURE STATEMENT
Stat<:ment of disclosure of cc:rtain ownership interests, payments, or cllmpaign contributions, on all mattcrs
which will require discretionary action on the part of the City Council, Planning Commission, and all othe"
official bodies. The following information must be disclosed:
1. List the names of all persons having a financial interest in the contract, Le., contractor,
subcontractor, malerinl supplic:r.
Unknown
.,
If any person identified pursuant to (1) above is a corporation or partnership, list the names of all
individuals owning more than 10% of the shares in the corporation or owning any partnership
interest in the partnership.
N/A
3.
If nny person identified pursuant to (1) above is non-profit organization or a trust, list the names
of any person serving as director of the non-profit organization or as trustee or beneficiary or
trustor of the trust.
N/A
-I.
Have you had more than 5250 worth of business transacted with <lny member of the City Maf
Boards, Commissions, Committees and Council within the past twelve months? Yes
Z'\o ~ If yes. pJc:ase indicate person(s):
Please identify ench and every person, including any agents, employees, consultants or independent
COntractors who YOll have assigned 10 reprc:selll you oefore the City in this matter.
liMe Architects .'
Have you and/or your officers or agents, in the aggregllte,
Clluncilmember in th.: current or precc:ding elc:ction pc:riod'!
Clluncilmc:mhc:r(s):
contributed more ttwn S /,O()() to a
Yes No XX Ifves, state which
- - .
P,'r.\'n is defincd as: "AllY illdil'it/III1!. Jim.. (O'I'"r/lII'rShip,joillf '.rl/lm.... (/s.<Ol:i,,,ioll, SOL'iIl! clul>. .lratc'nUl! "'KIlI.izlllim.. n"I'''rtllicm.
",'lllIt', IrIlSI. 'c'("dn'" .\;.'/U!iClIU', ,his fill/limy OIhc" cowuy, (ily 11I,,1 "VIIII1I); cil)~ Immic;l'i1Ii~\i ,/iMriel or olh,'rl'oliti(,fll .w/l,!il'i.J;;,m.
' 01' I:".'" o,I1er group or ('(}mhmtllioIJ Ilcring 11.\' IllIlIil." .
KAISER FOUNDATION HOSPITALS
D;,I.:':
(:\OTE: AII"ch "d~ili()nall'a~cs :IS nc,'c":,ryl
~k :; I Itt'l2.
By:
'. \ ,):" H)SI..:~ q
CAAT2.\...e~ ~MI~~~I
1'1 illt Ill' 1~'I'" II:1l11e of ,'o11l1':11'!ol'.':ll'pli";,m
: ; (; ,'\ .. l'. ! !. ... "f1~
d-! .Ii
~ fft'" J
WHEREAS, the area of land which is the subject of this ordinance amending the
EastLake I Planned Community District Regulations consists of 71.8 acres located to the north
of Otay Lakes Road/Telegraph Canyon Road, to the east of the proposed future State Route 125,
and lying on both sides of EastLake Parkway; and,
~()
00
~()
-?<:::
AN ORDINANCE OF THE CITY OF CHULA VISTA ADOPTING.~
EASTLAKE I PLANNED COMMUNITIES DISTRICT REGULATION 0
AMENDMENT AND KAISER DEVELoPMENT AGREEMENT FOR -11z->
EAS'ILAKE IlKAISER PERMANENTE -s'z>
Ck,
Qo
q,
ORDINANCE.:l 5~~
WHEREAS, the proposed amendment would modify the Planned Community District
Regulations and Land Use District Map for the EastLake I Activity Center by the amendment
of permitted land uses, including the zone reclassification of 2 acres of Village Center 2 (VC-2)
to Business Center 1 (BC-1); and
WHEREAS, the applicant, Kaiser Permanente,. has requested a Development Agreement
for the vesting of various planning permits for the 30.6-acre Kaiser Medical Center located
within the northerly portion of the 71.8-acre area in return for certain extraordinary benefits to
be provided to the City of Chula Vista; and
WHEREAS, in 1982 the EastLake I General Development Plan was originally adopted.
In 1985 the EastLake I Sectional Planning Area Plan (SPA) was adopted and the EastLake I
General Development Plan (GDP) was amended to reflect that approval. On September 12,
1989 an amendment to the EastLake I SPA Plan was approved to allow the Salt Creek I project;
and,
WHEREAS, the Planning Commission held a duly advertised public hearing on said
EastLake I Planned Community District Regulations amendment and Kaiser Development
Agreement on June 24, 1992, and at the conclusion of said hearing recommended approval of
the proposed amendment and Development Agreement; and,
WHEREAS, the Planning Commission, having received certain evidence on June 3,
1992, and June 24, 1992, as set forth in the record of its proceedings and incorporated herein
by reference as if set forth in full, made certain findings as set forth in their recommending
Resolution No. EIR-92-Q1 herein and recommended to the City Council the approval of said
EastLake I Planned Community District Regulation Amendment and Kaiser Development
Agreement based on certain terms and conditions; and,
;2.\ f; - \
;nn
) to
i:
,t'.
'; is
'.1.
;<;.'
,j
"It
S
:~
'd
'r
.'
..lli~
.
. ",to
'5,
:"an
.......
U ~~cn
a
,.lent
2 18
WHEREAS, the City Council set the time and place for a public hearing, together with
the purpose, which was given by the publication in a newspaper of general circulation in the City
and mailed notice was given to property owners within 1,000 feet of the exterior boundaries of
the proposed amendment area and Development Agreement at least ten (10) days prior to the
hearing; and,
WHEREAS, the hearing was held at the time and place as advertised, namely 7:00 p.m.
on 1une 30, 1992, in the Council Chambers, 276 Fourth Avenue, before the City Council and
said hearing was thereafter closed; and,
WHEREAS, the Final Supplemental Environmental Impact Report for this project
(EIR-92-01) has been previously certified by the City Council of the City of Chula Vista; and,
WHEREAS, a public hearing having been noticed in accordance with Council policy was
scheduled before the City Council of the City of Chula Vista on the consideration of the
EastLake I Planned Community District Regulation Amendment and Kaiser Development
Agreement on 1une 30, 1992; and,
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY
OF CHULA VISTA does hereby determine, fmd, and resolve and orders as follows:
1.
2.
PLANNING COMMISSION RECORD
The proceedings before the Planning Commission consisting of a public hearing
on the Draft Supplemental EIR held on 1une 3, 1992, and certification of the
Final Supplemental EIR in public hearing on this project on 1une 24, 1992, and
the unofficial minutes and resolutions resulting therefrom (Exhibit 1) are hereby
incorporated into the record of this proceeding.
COMPLIANCE WITH CEQA
The City Council of the City of Chula Vista has reviewed and considered the
Final Supplemental EIR-92-01, the environmental impacts therein identified for
this project, the Candidate CEQA Findings attached hereto as Exhibit 3-1, the
proposed mitigation measures contained therein, the Mitigation Monitoring
Program attached hereto as Exhibit 3-2, and the Statement of Overriding
Considerations which is attached hereto as Exhibit 3-3. The City Council, by
approving the Final Supplemental EIR, has found that it was prepared in
accordance with the requirements of the California Environmental Quality Act,
-2-
~IS"2..
the State EIR Guidelines, and the procedures of the City of Chula Vista. The
certifying resolution number is incorporated herein by reference.
3. CONSISTENCY WITH GENERAL PLAN
a. The proposed EastI.ake I Planned Community District Regulations
Amendment is in conformity with the provisions of the Chula Vista
General Plan.
k
4. I, CEQA FINDINGS, MITIGATION MONITORING PROGRAM, AND
STATEMENT OF OVERRIDING CONSIDERATIONS
a. Adoption of Findings.
The City Council does hereby approve and accept as its own, incorporate
as if set forth full herein, and make each and every one of the CEQA
Findings attached hereto as Exhibit 3-1.
From the facts presented to the City Council, the Council has determined
that said amendment and Development Agreement is consistent with the
City of Chula Vista General Plan and that public necessity, convenience,
general welfare and good zoning practice support adoption of the
amendment to the EastLake I Planned Community District Regulations
Amendment and Kaiser Development Agreement.
b. Certain Mitigation Measures Feasible and Adopted.
As more fully identified and set forth in the previous environmental
documents for this project area and this supplemental environmental
document (EIR-92-01) and the CEQA Findings for this project which is
hereby attached hereto as Exhibit 3-1, Council hereby fmds that pursuant
to Public Resources Code Section 21081 and CEQA Guidelines Section
15091, that the mitigation measures described in the above referenced
document are feasible and will become binding upon the appropriate entity
such as the proj ect proponent, the City, or other special districts which
has to implement these specific mitigation measures.
.
-3-
~1~"3
c. Feasibility of Alternatives.
As is also noted in the environmental document in paragraph b above,
alternatives to the project which were identified as potentially feasible
were found not to be feasible.
d. Adoption of Mitigation Monitoring Program.
As required by the Public Resources Code Section 21081.6, City Council
hereby adopts the Mitigation Monitoring and Reporting Program
(Program) set forth in Exhibit 3 to this resolution and incorporated herein
by reference as set forth in full. The Council hereby finds that the
Program is designed to ensure that during the project implementation and
operation, the permittee/project applicants and other responsible parties
implement the project components and comply with the feasible mitigation
measures identified in the Findings and in the Program.
e. Statement of Overriding Considerations.
Even after the adoption of all feasible mitigation measures and
alternatives, certain significant or potentially significant environmental
affects caused by the project or cumulatively will remain. Therefore, the
City Council of the City of Chula Vista does hereby issue pursuant to
CEQA Guidelines Section 15093, as set forth in Exhibit 3-3 attached
hereto, a Statement of Overriding Considerations identifying the specific
economic, social, and other considerations that render the unavoidable
significant adverse environmental affects acceptable.
f. Amendment to Planned Community District Regulations.
5. THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS
FOLLOWS:
SECTION I. That the conditions of approval of the amendments to the EastLake
I Planned Community District Regulations attached hereto as Exhibit 8 and
incorporated herein as set forth in full are as follows:
. .
1)
The applicant shall implement each and every mitigation measure
identified in the Final Supplemental EIR and in the CEQA Findings
previously adopted.
-4-
~llS -f
2) The applicant and all other responsible parties shall implement each and
every aspect of the Mitigation Monitoring Program previously adopted.
3) Variance of the conditions of approval to occur shall, at the option of the
City, be exercised at a public hearing, notice of which an opportunity
which the applicant has been given to be heard on the matter, revoke the
zoning regulations herein above conditionally approved.
SECI'ION n. That the zoning map or maps established by Section 19.18.000 of
the Chula Vista Municipal Code be hereby amended by adding thereto the
following amendment:
That that certain property consisting of 59.8 acres located at the northwest
quadrant of EastLake Parkway and Otay Lakes Road described as Village Center
I (RM-25, RM-44, OS 5) in PCM-92-02 be and the same is hereby zoned to
Village Center 1 (OS 5), and
SECI'ION m. That said zoning map of the City of Chula Vista is further
amended by adding the following amendment:
That that certain property consisting of 2 acres located at the southeast comer. of
EastLake Parkway and Fenton Street described as Village Center 2 in PCM-92-02
be and the same is hereby zoned Business Center -I, and
SECTION IV. That the proposed amendments to the land use regulations
contained in the EastLake I Planned Community District Regulations for the
Village Center Districts I, 2, and 3 described in PCM-92-Q2 be and the same is
hereby amended in accordance with Exhibit 8.
SECI'ION V. That the Kaiser Development Agreement attached hereto as
Exhibit 13 and incorporated herein as if set forth in full, is hereby adopted, and
SECI'ION VI. This ordinance shall take affect and be in full force on the 30th
day from the date and after its passage and approval.
,
-5-
dl f2.:>1S
6. NOTICE OF DETERMINATION
The Environmental Review Coordinator of the City of Chula Vista is directed
after City Council approval of this project to ensure that a Notice of
Determination is f1led with the County Clerk of the County of San Diego.
Presented by
Approved as to form by
/s/~y )V6-If-
Robert A. Leiter
Director of Planning
/>/ fry cJdll-
BrUce M. Boogaard
City Attorney
......od)
. .
-6-
d-I ~-{,
Recording Requested By: )
)
Latham & Watkins !
701 "B" Street, Suite 2100
San Diego, CA 92101
ATTN: Jon D. Demorest, Esq.
,-
DEVELOPMENT AGREEMENT
BY AND BETWEEN
KAISER FOUNDATION HOSPITALS, a
California non-profit public benefit corporation,
'-
and
THE CITY OF CHULA VISTA, a charter city
Dated:
, 1992
"!
,
d-(~-i
I
.
Based on the foregoing, and the City's determination that its transportation
facilities could still be operated within the traffic threshhold with the
development contemplated by EastLake's plan, the City determined that it would
not object to the issuance of building permits for the Village Center, under
EastLake's plan, on the basis of the development's impact on the "traffic
threshhold" established by the "Quality of Life Threshholds," as defin-ed herein.
Accordingly, the Vi llage Center was given "approved project" status by the City.
1.5 Hospitals' Projected Traffic Demand. The proposed "medical
center" use of the Property, under Hospitals' plan, including all three phases,
on the entire 30.6 acres, has been projected by the City to generate 2,630 P.M.
Peak Trips. The P.M. Peak Trips allocated by phase are as follows:
Phase I
Phase II
Phase II I
Total
560
1,010
1,060
2,630
! .
,~
1.6 Projected Traffic Demand of Village Center. The proposed uses
of the Village Center under the amended SPA Plan, including all three phases of
Hospitals' proposed medical center development, has been projected by the City
to generate 4,158 P.M. Peak Trips, based on the fo llowing ant icipated deve lopment
of the Village Center:
Open Space (10.9 acres)
Library (1 acre)
Commercial (17.3 acres)
Office (6 acres)
Industrial (2 acres)
Church (4 acres)
Medical Center (30.6 acres)
Total P.M. Peak Trips
o
40
1,211
234
31
12
2.630
4,158
Accordingly, the City has projected that the proposed uses for the Vi 11 age Center
will create 1,772 (4,158 - 2,386) more P.M. Peak Trips than were projected for
the previously anticipated use.
1.7 Benefits to the City. This Agreement is entered into for the
purpose of facilitating the development of the Property in a manner that will
ensure certain anticipated benefits to the City (including, without limitation,
the existing and future residents and populations of the City) as follows:
1.7.1 To provide for a significant cash contribution to the
City that wi 11 enab le the City to finance programs and improvements that
otherwise would have to be financed from the City's general fund or from other
sources.
1.7.2 To provide and assure to the City the accelerated,
coordinated and more economic construction, funding and dedication to the public
of certain vitally needed public facilities and benefits, and to provide for
anticipated levels of service to residents and populations of the City and
adjacent areas, all as provided for in the City's General Development Plan.
--
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 3
~\ ,; ~ '1
DEVELDPMENT AGREEMENT
.'
California Government Code
Sections 65864-65869.5
~
THIS DEVELOPMENT AGREEMENT ("this Agreement") is entered into on
, 1992, between KAISER FOUNDATION HOSPITALS, a California non-profit
public benefit corporation ("Hospitals") and the CITY OF CHULA VISTA, a municipal
corporation having charter powers (the "City"). with reference to the recitals
set forth below.
1. Recital s.
1.1 City's Authority to Enter Into Development Agreement. .The
City, as a charter city, is authorized under Resolution No. 11933, its Charter,
and its self-rule powers and Government Code Section 65864 to enter into binding
development agreements with persons having legal and equitable interests in real
property for the purposes of assuring, among other things (i) certainty as to
permitted land uses in the development of such real property, (ii) construction
of adequate public facilities to service such real property and (iii) equitable
reimbursement of the cost of construction of excessive size or capacity public
facilities.
1.2 The Property; Developer's Interest. Hospitals owns or holds
an enforceable right to acquire fee title to the real property described in
Exhibit "A" (the "Property"). consisting of approximately 30.6 acres at the
northwest corner of EastLake Parkway and the extens ion of Fenton Street.
Hospitals intends to construct and operate on the Property, in three phases,
medical office buildings, a hospital, a parking structure and related support
facilities, as is more particularly described in the "CUP," as defined herein,
with the fo llowing approximate amounts of building square footage for each phase:
Phase I 295,000 S.F.
Phase II 505,000 S.F.
Phase III 540.000 S.F.
Total 1,340,000 S.F.
1.3 Property Part of Village Center. Hospitals has purchased or
will purchase fee title to the Property from EastLake Development Company
("EastLake"). The Property was planned for development by EastLake as part of
a larger area, consisting, including the Property, of approximately 71.8 acres
and referred to as the Village Center 1 (59.8 acres) and Village Center 2 (12
acres) portions of the EastLake SPA Plan Area (the "Village Center"). .
1.4 Approved Project Status of Village Center. The Village Center
was previously estimated to generate a number of average daily trips which the
City and Hospitals agrees is equivalent to 2,386 p.m. peak period traffic trips
("P.M. Peak Trips"). based on the following prev10usly anticipated development.
of the Village Center, expressed in P.M. Peak Trips:
Multi-Family Residential
Library (1 acre)
Commercial (22.2 acres)
Office (12 acres)
Total P.M. Peak Trips
(405 D.U.) 324
40
1,554
468
2.386
~\~..r
._..~
i
1.7.3 To provide and assure that the City receive enhanced
sales tax revenues and an interim increase in property tax revenues.
1.7.4 To provide a major employment opportunity for residents
of the City. In this regard, Hospitals promises to use reasonable efforts to
develop an employment outreach program that encourages local employment of Chula
Vista residents. '
1.7.5 To provide additional high quality medical services to
serve the residents of the City.
1.8 Intentions of Parties in Entering Into This Agreement.
Hospitals and the City intend to enter into this Agreement to:
1.8.1 Assure Hospitals' participation in the construction and
financing of public facilities;
1.8.2 Provide the City with public facilities and improvements
in excess of those public facilities and improvements to which it would otherwise
be entitled and/or provide the City with such public facilities and improvements
at an earlier time than the City would otherwise have been able to obtain them;
and
1.8.3 Provide Hospitals with certainty in the land use
regulations and policies applicable to the development of the Property to the
extent herein granted and with a vested right to proceed with the development of
the Property to the land uses, densities and intensity of uses to the extent and
.- in the manner as provided below.
'-
1.8.4 It is the intention of the parties to review the traffic
ana lys is undertaken with respect to Hospitals' proposed development for the
express purpose of attempting to reduce or avoid the deferral of development of
land owned by EastLake and otherwise authorized for development, as is
contemplated by Section 5.6 hereof.
1.9 Effective Date; Adoption of Ordinance Approving Agreement. The
ordinance approving this Agreement was first introduced at the City Council
meeting of ,1992. The Citil Council of the City adopted Ordinance No.
, approving this Agreement.!! The "Effective Date" of this Agreement
shall be the date on which the thirty day period for challenging the City's
adoption of the environmental impact report prepared in conjunction with its
consideration and approval of the CUP and this Agreement under the California ~
Environmental Quality Act expires without any lawsuit having been filed, or the .'11
date on which the thirty day period for challenging this Agreement by referendum II'\~~ (II
expires without such a challenge having been initiated, whichever is later. In IIIP tt t
the event any such lawsuit is filed or referendum is initiated, Hospitals and the '"Il(t\ \I~
City shall meet within thirty days and confer about the method for responding to/?~ r~'
the lawsuit or challenge, and the Effective Date shall be extended for such'J1 :e1111"
thirty days. If the City and Hospitals are unable to agree to the method for l$~lV :
1. The Development Agreement will be executed immediately following the second
reading of the ordinance.
".
kaiser19.wp
June 19, 1992
Kaiser Development Agreement
Page 4
~\ 8.../0
\.
responding within said thirty days, then this Agreement shall terminate and
Hospitals and the City shall be released from all liability hereunder.
1.10 Findings of the City Council. The City Council has found that this
Agreement is consistent with the City's General Plan, the EastLake II. (EastLake
I Expansion) General Development Plan, the EastLake I Planned Community District
Regulations, and the EastLake I Sectional Planning Area Plan, as 'well as all
other applicable policies and regulations of the City.
2. Definitions.
requires:
In this Agreement, unless the context otherwise
2.1 "Activity Center Precise Plan Guidelines" shall mean the design
guidelines for the EastLake I activity center, adopted concurrently with the
first reading of this Agreement as an Ordinance by the City.
2.2 "Air Quality Improvement Plan" shall mean the EastLake I
Activity Center Air Quality Improvement Plan, as adopted concurrently with the
first reading of this Agreement as an Ordinance by the City.
2.3 "City" means the City of Chula Vista, a charter city.
2.4 "CUP" shall mean the Conditional Use Permit granted by
Resolution No. , adopted concurrently with the first reading of the
Ordinance approving this Agreement.
2.5 "EastLake" means EastLake Development Company, a California
~. general partnership comprised of corporations.
.....
2.6 "Effective Date" is defined in paragraph 1.9 hereof.
2.7 "Existing Approvals" shall mean all discretionary approvals
and/or standards which have been approved, established or amended in conjunction
with or preceding approval of this Development Agreement, as it relates to the
Property, consisting of, but not limited to:
2.7.1 The General Plan;
2.7.2 The EastLake II (EastLake I Expansion) General
Development Plan;
2.7.3 The SPA Plan; and
2.7.4 The Financing Plan;
2.7.5 The Water Conservation Plan.
2.7.6 The Air Quality Improvement Plan;
2.7.7 The Activity Center Precise Plan Guidelines;
2.7.8 The Precise Plan;
'"
1
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 5
d\~ "/1
2.7.9 The CUP;
I
'.
2.7.10
The EastLake I Planned Coonnunity District
Regulations;
The Lot Line Adjustment;
2.7.11
2.8 "Financing Plan" means the EastLake I Public Facilities Finance
Plan, adopted concurrently with the first reading of this Agreement as an
Ordinance by the City, together with any exhibits and appendices thereto,
including without limitation any phasing plans attached thereto, and any further
modifications or amendments thereto which may be duly adopted by the City in the
manner provided by law. .
2.9 "General Plan" shall mean the Chula Vista General Plan,
together with all its elements, currently in effect at the time of adoption of
the Ordinance approving this Agreement.
2.10 "General Development Plan" shall mean the EastLake II (EastLake
I Expansion) General Development Plan and all elements thereof, as amended
concurrently with the first reading of this Agreement as an Ordinance by the
City.
2.11 "Hospitals" means Kaiser Foundation Hospitals, a California
non-profit public benefit corporation, and any affiliate owned, controlled by,
owning, or under coonnon control with the Kaiser Permanente medical. care program
to which it may assign all or any portion of its rights under this Agreement.
'"
.....
2.12 "Lot Line Adjustment"
on as document no.
Property as a separate legal lot.
2.13 "Planned Community District Regulations" shall refer to the
EastLake I Planned Community District Regulations as approved pursuant to
Ordinance No. on , as amended concurrently with the first
reading of the~nance approving this Agreement.
means the lot line adjustment recorded
for the purpose of creating the
.~
2.14 "Planning Coonnission" means the Planning Coonnission of the City
of Chula Vista.
2.15 "P.M. Peak Trips" is defined in paragraph 1.4 hereof.
2.16 "Precise Plan" means the Precise Plan with respect to
Hospitals' proposed construction at the Property, adopted concurrently with or
prior to the first reading of the Ordinance by the City approving this Agreement.
2.17 "Property" is defined in paragraph 1.2 hereof.
2.18 "Quality of Life Threshholds" means the levels of service
criteria and enforcement procedures established by Resolution No. 13346 and
Section 19.09 of the City's Municipal Code. If any disparity exists between the
Resolution and the Municipal Code as to the nature of the threshold, or the
method for measuring same, the Municipal Code shall govern.
...
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 6
dl e,... I~
,.
'-
.~
2.19 "SPA Plan" means the EastLake I Sectional Planning Area Plan
'approved by the City pursuant to Resolution No. 11934 on February 19, 1985, as
amended concurrently with the first reading of Ordinance by the City approving
this Agreement.
2.20 "Substantial Compliance" means that the party charged with the
performance of a covenant herein has sufficiently followed the terms of this
Agreement so as to carry out the intent of the parties in entering into this
Agreement.
2.21 "Trans DIF" means the City's transportation facil ity
development impact fee program adopted pursuant to Ordinance No. 2251, as
amended. '
2.22 "Vi llage Center" is defined in paragraph 1.3 hereof.
2.23 "Water Conservation Plan" shall mean the EastLake I Activity
Center Water Conservation Plan, as amended concurrently with the first reading
of this Agreement as an Ordinance by the City.
3. Description of Property. The Property consists of approximately 30.6
acres located at the northwest corner of the EastLake Parkway and Fenton Road in
the City of Chula Vista, County of San Diego, and is more particularly described
in Exhibit "A" attached hereto. .
4. Extraordinary Benefits to the City. 'In addition to the benefits t~ ,,~ ~
the City as described in paragraph 1.3 hereof, and as further consideration for \. ~
the vesting of Hospitals' right to develop the Property as provided herein, L~~~
Hospitals shall pay to the City the sum of one million two hundred thousand" ~f
dollars ($1,200,000) within five (5) business days after the Effective Date. ~~
Said sum shall be used by the City to support programs or to build capital
facilities that serve health and human services needs. The City shall advise~~
Hospitals as to how the City proposes to use said sum, and Hospitals shall have,. \)~~
the right to approve the uses proposed by the City. Hospitals agrees not to
unreasonably withhold or delay its approval of any use proposed by the City, so I
long as the proposed use is consistent with the intent of the parties that said ~
sum be directed to health and human services. " ~,
5. Conditions Precedent. The vesting of Hospitals' right to develop the ~\ ~~
Property as pro v i ded herei n, and Hosp i ta l' s ob 1 i gat ions under paragraph 4 hereof, n t1i \ '\ ~ 1)
are contingent upon EastLake's execution and delivery of an instrument in the ~~'(l\'
form of Exhibit "B" attached hereto and incorporated herein by reference.Y In Il"l\. V
addition, the vesting of Hospitals' right to develop the Property as provided v'-
herein. and all of the remainder of the riohts conferred in this Aoreement are
'* contingent upon Hospitals' timely payment to the City of the sum referred to
in paragraph 4 hereof. All rights, duties, waivers, findings and determinations
subsequently provided in this Agreement apply only if the aforementioned
Conditions Precedent have occured.
2. Form of agreement may have to have a transfer of an interest in land to the
City to be a covenant running with the land and binding upon successors. Open
Point. .
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 7
~\ €>.. 1,3
..
~
,-
6.
Vested Rights.
and other benefits to the ty as set forth herein, Hospitals is vest~d with the ,'~
right to develop and ma' tain the first two phases of the medical center project ~
at the Property to t land uses, densities and intensities and at such a rate~ 'l
of development and bject to such standards as are set forth herein and in the ~
Existing Approvals. Hospitals' right to develop the third phase of its medical~~ '~Y\\
center project at the Property is vested presently, subject only to the condition {~S
that an additional 521 P.M. Peak Trips be allocated to the Property in the manner .1
contemplated pursuant to Section 6.5 hereof and subject to the provisions of V \ J(
Section 6.6 hereof. . 6~ ~
6.2 Benefit of Earlier Vesting. Nothing in this Agreement will be ~.~
construed as adversely affecting Hospitals' obtaining a vested right to develop
the Property, if any, pursuant to the provisions of California's constitutional,
statutory and decisional law.
6.3 Application of New Rules, Regulations and Policies. Subject
to the provisions of Section 7 hereof, the City may, during the term of this
Agreement, apply to the Propert only such new rules, regulations, policies,
ordinances and standards that a do not relate to land use and ~ are generally
applicable throughout the City or b aRB ::RieR will not prevent or delay the
development of the Property to the land uses, densities or intensities of
development permitted herein and in the Existing Approvals.
6.4 Phasing. The parties acknowledge that Hospitals cannot at this
time predict when or the rate at which the phases of its development at the
Property will be developed. Such decisions depend upon numerous factors which
are not within the control of Hospitals, such as membership growth and other
similar factors. Since the California Supreme Court held in Pardee Construction
Co. v. the Citv of Camarillo, 37 Cal. 3d 465 (1984), that the failure of the
parties therein to provide for the timing of development resulted in a later
adopted initiative restricting the timing of development to prevail over such
parties' agreement, it is the parties' intent to cure that deficiency by
acknowledging and providing that Hospitals shall have the right to develop the
Property to the density and intensity of use contemplated by the Existing
Approvals during the term of this Agreement in such order and at such rate and
at such times as Hospitals deems appropriate within the exercise of its
subjective business judgment within the limits and subject to the conditions
stated in this agreement.
6.5 Transfer of Approved Project Status. Hospitals shall not apply
for building permits, and City shall have the right to withhold building permits
as to all or any portion of Hospita ls' development at the Property, unt i1
Hospitals secures, to the satisfaction of the City, an allocation from the City
of additional P.M. Peak Trips as provided for under the terms of this Section
6.5, inclusive of Subsections 6.5.1 through 6.5.8. An additional 712 P.M. Peak
Trips must be secured in order to allow Hospitals to procure building permits
with respect to the first two phases of its development at the Property (the
.Phase I and II Required Amount"). and a total of 1772 P.M. Peak Trips (i.e.
another 1060 P.M. Peak Trips in excess of the Phase I and II Required Amount~
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 8
a.l to ../~
...
must be secured in order to allow Hospitals to procure building permits with
respect to the third phase of its development at the Property (the "Phase III
Requ ired Amount"). The City further agrees that the ob 1 igat ions of City
contained in Subsections 6.5.2 through 6.5.8, inclusive, Section 11 (excepting
the right lp the payment of prevailing party attorney fees), Section 12.3, and
Section 1~ are for the benefit of Hospitals and for the benefit of EastLake,
as an express third party beneficiary.
6.5.1. Capacity Obtained by Deferral Agreements from Other
Property Owners. Agreements to Withhold Development. To the extent that
Hospitals secures an agreement and covenant running with the land ("Deferral
Agreement") in a form satisfactory to the City and for the express benefit of the
City, from one or more property owners owning property ("Vicinity Property")
within the City of Chula Vista east of I-80S, which Vicinity Property is not
developed but which is determined by the City to generate a given number of P.M.
Peak Trips, that said property owner(s) will withhold such Vicinity Property from
development, then the number of P.M. Peak Trips determined by the City to be
allocable to such Vicinity Property shall be credited to Hospitals towards the
satisfaction of the Phase I and II Required Amount and the Phase III Required
Amount. The City agrees that the Covenant Running with the Land, attached hereto
as Exhibit "B" (the "EastLake Deferral Agreement"), when executed, delivered,
recorded in the Official Records of San Diego County in a priority senior to all
monetary liens (other than the liens of real property taxes, assessments and
special districts), with such recordation and priority insured to the
satisfaction of the City Manager, will constitute an adequate Deferral Agreement
sufficient to provide Hospitals with a credit of 1,251 P.M. Peak Trips towards
its Phase I and I! Required Amount and its Phase II! Required Amount. The
EastLake Deferra 1 Agreement will satisfy Hospita 1s' entire Phase I and I!
Required Amount, and will satisfy all but 521 P.M. Peak Trips of Hospitals' Phase
III Required Amount.
6.5.2 Additional Capacity Based on Zion Study. The City shall
undertake a study of the actual traffic generated by the Zion Avenue medical
center operated by Hospitals in the City of San Diego for the purpose of
establ ishing whether the P.M. Peak Trips generation rates assumed by the
environmental impact report prepared in conjunction with the approval of
Hospitals' proposed development at the Property is too high. The cost of said
study shall be paid by Hospitals, unless they are in default or shall otherwise
refuse to do so, in which case, the cost of said study shall be paid by EastLake.
To the extent the City Manager of the City or his designee determines, based upon
such study, that the assumed rate of P.M. Peak Trips generat ion in said
environmental impact report is too high, the increment shall be allocated (a)
first, to Hospitals, until a total of an additional 521 P.M. Peak Trips have been
allocated to Hospitals pursuant to this Section 6.5, thereby fully mitigating the
traffic impacts of all three phases of Hospitals' development at the Property,
and (b) second, to EastLake, to the extent of the amount of P.M. Peak Trips then
reserved by Eastlake pursuant to the EastLake Deferral Agreement (after giving
effect to any P.M. Peak Trips previously allocated to EastLake pursuant to this
Section 6.5), thereby releasing a commensurate amount of development from the
'"
'"
3. This will be contingent on EastLake provided an enforceable covenant running
with the land that has an enforceable covenant of good faith and fair dealing.
,
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 9 .
d-1~..IS
c
~
.-
.~
-
restrictions of the EastLake Deferral Agreement.
6.5.3 Additional Capacity Based Actual Traffic Generation.
To the extent that Hospnals has not previously received sufficient credn toward
its Phase III Required Amount pursuant to this Section 6.5, or that all or some
portion of the Vicinity Property subject to the EastLake Deferral Agreement
(Exhibit B) remains subject to a covenant. to withhold development (after giving
effect to any P.M. Peak Trips previously allocated to EastLake pursuant to this
Section 6.5), and to the further extent that Hospitals or EastLake submits a
traffic study of the actual P.M. Peak Trips generated by the first two phases of
Hospitals' development at the Property, and the City Manager of the City or his
designee determines, based upon such study, that the actual P.M. Peak Trips
generated is less than that predicted by the traffic model utilized for the
environmental impact report prepared in conjunction with the approval of
Hospitals' proposed development at the Property, the increment, to the extent it
is not duplicative of P.M. Peak Trips already allocated to Hospitals or EastLake
by the provisions of this Section 6.5, shall be allocated (a) first, to
Hospitals, untn an additional 521 P.M. Peak Trips have been allocated to
Hospitals pursuant to this Section 6.5, thereby fully mitigating the traffic
impacts of all three phases of Hospitals' development at the Property, and (b)
second, to EastLake, to the extent of the amount of P.M. Peak Trips then reserved
by Eastlake pursuant to the EastLake Deferral Agreement (after giving effect to
any P.M. Peak Trips previously allocated to EastLake pursuant to this Section
6.5), thereby releasing a commensurate amount of development from the
restrictions of the EastLake Deferral Agreement.
6.5.4 Additional Capacity Based on HNTB Traffic Studies. To
the extent that Hospitals has not previously received sufficient credit toward
its Phase III Required Amount pursuant to this Section 6.5, or that all or some
portion of the Vidnity Property subject to the EastLake Deferral Agreement
(Exhibit B) remains subject to a covenant to withhold development (after giving
effect to any P.M. Peak Trips previously allocated to EastLake pursuant to this
Section 6.5), the City shall continue with and finish to the point of being able
to draw adequate conclusions from the HNTB traffk study designed to ident;ty the
amount of traffic capacity, if any, in the existing roadway system that has not
previously been allocated to "approved projects, and to the further extent that
the City Council determines, based upon such study, that such capacity exists,
the City shall allocate a fair percentage of such traffic capacity to the extent
it is not duplicative of credits already extended previously, after due
consideration of other proposed projects, (a) first, to Hospitals, untn an
additional 521 P.M. Peak Trips have been allocated to Hospitals pursuant to this
Section 6.5, thereby fully mitigating the traffic impacts of all three phases of
Hospitals' development at the Property, and (b) second, to EastLake, to the
extent of the amount of P.M. Peak Trips then reserved by Eastlake pursuant to the
EastLake Deferral Agreement (after giving effect to any P.M. Peak Trips
previously allocated to EastLake pursuant to this Section 6.5), thereby releasing
a commensurate amount of development from the restrictions of the EastLake
Deferral Agreement. No other person shall be deemed to be a beneficiary of this
Subsection other than as expressly provided herein.
6.5.5 Additional Capacity Obtained from SR 125, Interim SR 125
facility, or Changes in Operation. To the extent that Hospitals has not
previously received sufficient credit toward its Phase III Required Amount
kaiserI9.wp
June 19, 1992
Kaiser Development Agreement
Page 10
d.-l ~ -/(,
(
-
...
r
pursuant to this Section 6.5, or that all or some portion of the Vicinity
Property subject to the EastLake Deferral Agreement (Exhibit B) remains subject
to a covenant to withhold development (after giving effect to any P.M. Peak Trips
previously allocated to EastLake pursuant to this Section 6.5). and to the
further extent that the City Council determines that additional traffi~ capacity
is created as a result of system improvements, such as the construction of State
Route 125 or an interim facility, or as a result of changes in operations, such
as a finding that the implementation of it City-wide transportation demand
management program will reduce traffic generated from projects throughout the
City, the City shall allocate, to the extent it is not duplicative of credits
already extended previously, a fair percentage of such traffic capacity, after
due consideration of other proposed projects, (a) first, to Hospitals, until an
additional 521 P.M. Peak Trips have been allocated to Hospitals pursuant to this
Section 5.6, thereby fully mitigating the traffic impacts of all three phases of
Hospitals' development at the Property, and (b) second, to EastLake, to the
extent of the amount of P.M. Peak Trips then reserved by Eastlake pursuant to the
EastLake Deferral Agreement (after giving effect to any P.M. Peak Trips
previously allocated to EastLake pursuant to this Section 6.5). thereby releasing
a commensurate amount of development from the restrictions of the EastLake
Deferral Agreement.
6.5.6 Additional Capacity Generated by Changed Conditions.
To the extent that Hospitals has not previously received sufficient credit toward
its Phase III Required Amount pursuant to this Section 6.5, or that all or some
portion of the Vicinity Property subject to the EastLake Deferral Agreement
(Exhibit B) remains subject to a covenant to withhold development (after giving
effect to any P.M. Peak Trips previously allocated to EastLake pursuant to this
Section 6.5), and to the further extent that the City Council determines that
additional traffic capacity exists within the existing roadway system as a result
of changed conditions or assumptions relating to planned or assumed development
within the eastern regions of the City, the City Council shall, to the extent it
is not duplicative of credits already extended previously, allocate a fair
percentage of such traffic capacity, after due consideration of other proposed
projects, (a) first, to Hospitals, until an additional 521 P.M. Peak Trips have
been allocated to Hospitals pursuant to this Section 6.5, thereby fully
mitigating the traffic impacts of all three phases of Hospitals' development at
the Property, and (b) second, to EastLake, to the extent of the amount of P.M.
Peak Trips then reserved by Eastlake pursuant to the EastLake Deferral Agreement
(after giving effect to any P.M. Peak Trips previously allocated to EastLake
pursuant to this Section 6.5), thereby releasing a commensurate amount of
development from the restrictions of the EastLake Deferral Agreement.
6.5.7 Certificate of Reallocation. As additional P.M. Peak
Trips are allocated to Hospitals and EastLake pursuant to the provisions of this
Sect ion 6.5, the City wi 11 execute and de liver to EastLake and Hospita 15 a
recordable instrument in 'form satisfactory to them verifying the reallocation of
P.M. Peak Trip under the provisions of this Section, and releasing appropriate
portions of the Vicinity Property otherwise subject to deferral from the EastLake
Deferral Agreement. All P.M. Peak Trips, not to exceed 1,251, reallocated to
EastLake as provided above shall thereafter be available to EastLake or its
successors and assigns for the purpose of mitigating any traffic impacts created
by projects within the EastLake SPA Plan area.
kaiserI9.wp
June 19, 1992
Kaiser Development Agreement
Page 11
~18 ~ I{
(
....
~
....
,
6.5.8 EastLake's Right of Substitution of Vicinity Property.
EastLake shall have the right, at its sole election, to select from time to time,
other property within the EastLake SPA Plan Area which may be used in whole or
in part for the purpose of deferring building permits as required above, to the
extent such other Vicinity Property is determined by the City Manager or his
designee to be sufficient to satisfy EastLake's deferral obligations under this
Section 5.6 and under Exhibit "B." Within forty-five (45) days from EastLake's
request of the City to use other properties in this manner, the City, by the City
Manager, will make its determination as herein provided, and if City determines
that the substitute Vicinity Property is sufficient, City will execute and
deliver to EastLake a recordable instrument in a form satisfactory to EastLake,
releasing the appropriate portions of Village Center 1 from the deferral
agreement on the condition that the substitute Vicinity Property is encumbered
in the same manner and to the same extent of security herein required of the
Village Center I North Property described in Exhibit B.
6.6 Effect of Financing Plan and Quality of Life Thresholds. The
City has determined that it is critically important to adhere to the Quality of
Life Threshholds and the Financing Plan in order to assure the orderly and timely
construction of public facilities as the need for them arises as a consequence
of new development within the City. The City has determined that Phases I and
II of Hospitals' development at the Property can, at present, be accomodated
without violating any of the Quality of Life Thresholds, and that Phase III of
Hospitals' proposed development at the Property at present can be accomodated
without violating any of the Quality of Life Threshholds, with the exception of
the Quality of Life Threshhold pertaining to traffic and with the possible
exception of the Quality of Life Threshold pertaining to the delivery of fire and
po 1 ice services. The City agrees that any change made to the number of
Thresholds or the standard for measuring a violation of same shall not apply to
Phase III at the Property, but that Phase III will be governed according to the
current number and standards for measurement, and that the on ly thresholds
capable of limiting the development of Phase III are thresholds pertaining to
traffic and the delivery of fire and police services. The City further agrees
that six (6) months prior to the time when Hospitals anticipates pulling its
building permits for Phase III, the City will meet and advise Hospitals, at their
request, if the thresholds, as they are currently worded, pertaining to fire and
police are likley to be violated by Phase III development of the medical center.
If the City determines that a violation is likley to occur, the City will
dedicate available DIF resources to cure the violation. If the available DIF
resources are deficient to cure such violations, City will give Hospitals the
option to advance such capital expenditure costs as is needed to cure the likely
violations, and City will provide for reimbursement to Hospitals from subsequent
developers.
6.7 Effect of EastLake Development Agreement. From and after the
Effective Date, the Development Agreement between the City and EastLake
Development Company adopted by Ordinance No. 2102 and recorded in the Official
Records of San Diego County as Document No. 85-198858, shall not apply to the
Property. The balance of the EastLake I area shall continue to be subject to the
provisions of Ordinance No. 2102, according to its terms.
7. Ability of City to Modify Desi9n Elements. The City will accept for
expeditious processing and review and shall use its reasonable efforts to assist
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 12
~I 13../8'
(
\..
,... .
'"
,
Hospitals in obtaining any further permits or approvals required in connection
issuable from the City with Hospitals' proposed construction at the Property
including without limitation approvals with respect to design elements that hav~
not been specifically approved in the Precise Plan. The City shall limit its
review of any such design elements to a determination of whether. they are
consistent with the Precise Plan and the Activity Center Precise Plan Guidelines.
8. Development Impact Fees. The following development impact fee
program is hereby established for the Property.
8.1 Existing Transportation Facility Development Impact Fees. The
City has determined, pursuant to Section 5 of said Ordinance No. 2251, that
Hospitals should be granted a waiver or reduction of transportation facility
development impact fees payable by Hospitals with respect to the Property, as
follows:
8.1.1 The TransDIF fees payable with respect to Hospitals'
development shall be computed on the basis of a traffic generation rate of 650
trips per acre. Sixty percent (60%) of the total TransDIF fees payable with
respect to Hospitals' development shall be allocated to the first two phases of
the development. The TransDIF fees for the first two phases of the development
will be paid (subject to the use of credits as provided below) no sooner than the
Effective Date. The City shall estimate the increase in TransDIF fees that will
result from the addition of the improvements described in Section 8.1.2 to the
TransDIF program, and the amount of such estimate -shall be included in the
TransOIF fees payable with respect to the first two phases of Hospitals'
develjPment, regardless of whether the TransDIF Program is updated to include
same.
8.1.2 For the purpose of calculating the TransDIF fee payable
by Hospitals, the City shall estimate the cost of the widening of EastLake
Parkway between Otay Lakes Road and north of Fenton Street, and the widening of
Otay Lakes Road between EastLake Parkway and State Route 125.
8.1.3 The City shall use its best efforts. subiect to the
freedom to exercise its discretion. to include the cost of the widening of
EastLake Parkway between Otay Lakes Road and north of Fenton Street, and the
widening of Otay Lakes Road between EastLake Parkway and State Route 125. and the
sianalization of the intersection of Fenton Road and EastLake Parkwav in the
TransDIF in the next annual update thereof.
8.2 Existing Public Facilities Development Impact Fees. Hospitals
shall pay the full amount of public facility development impact fees payable with
respect to the Property pursuant to Ordinance No. , as the same may
be from time to time amended.
4. Open Point: We can't contract to include a facility in the TransDIF because
its inclusion is subject to the Council's discretion at a public hearing. Kaiser
feels that if the subject improvements are not. added to the TransDIF, it should
get a further credit against its TransDIF fees in an amount equal to the benefit
it would have received had the improvements been added to the DIF.
kaiser19.wp
June 19, 1992
Kaiser Development Agreement
Page 13
~\ ~ ../,
(
8.3 Use of Credits for the Payment of DIF Fees. The TransDIF fees
and the public faci lities development impact fees payable with respect to
Hospitals' development as provided herein may be paid using credits accumulated
by Hospitals and/or using credits accumulated by EastLake and transferred to
Hospitals.
,..
8.4 Prepayment of DIF Fees. The TransDIF fees and the public
facilities development impact fees for Phases I and II of Hospitals' development
at the Property may be prepaid by Hospitals at any time on or after the Effective
Date, and from time to time, in whole or in part.
8.5 Withhold of Permits. Hospitals agrees that the City shall have
the right to withhold issuance of any building permit for construction within the
area of the Property unless and until the appropriate TransDIF fees and public
facilities development impact fees are paid by Hospitals.
8.6 Other Development Fees and Exactions. No category of
development impact fees, assessments or other fees, charges or exactions shall
be charged or levied with respect to the Property, except for fees, assessments,
charges or exactions in effect on the date of this Agreement. and exceot that the
it ma im ose a char e ursuant to an lawful means and Hos ital sha 1 be
free to 0 0 e the im osi ion of such char e b an lawful means im osin on
Phase III of. Hosoitals' develooment its fair share of the cost of an interim
State Route 125 facilitv oursuant to a financina oroaram aenerallv aoolicable to
the eastern territories. Notwithstanding the foregoing, the amount of such fees,
charges or exactions is subject to increase on a non-discriminatory, community-
wide basis (recognizing for the purposes of the TransDIF, the public facilities
DIF and the Telegraph Canyon Drainage Basin sewer fee, the area east of 1-805 as
a community), and Hospitals shall pay such fees, charges or exactions at the rate
in effect on the date of payment. The foregoing limitation on new categories of
development fees is not intended to preclude the City from levying service fees
or use charges on a non-discriminatory, community-wide basis.
....
9. Binding Effect; Encumbrance of Property; Status.
9.1 Binding Effect. The provisions of this Agreement will be
bJnding upon and inure to the benefit of the parties successors-in-interest.
9.2 Discretion to Encumber. Nothing in this Agreement will prevent
or limit Hospitals, in any manner, at Hospitals' sole discretion, from
encumbering all or any portion of the Property or improvement thereon by any deed
of trust or other security device.
9.3 Status. Each party will, within fifteen (15) days after
written request, give written notice to the other party of whether the party
giving the notice knows of any breach of this Agreement and its current
understanding of status of performance under this Agreement. A copy of any such
notice which is sent to Hospitals shall also be sent to the holder of any
institutional first trust deed encumbering the Property if such holder has made
written request for notice and provided the City with the holder's address for
notice purposes.
10. Annual Review; Notice. The City will, once every twelve (12) months
1"
.t
kaiserlg.wp
June 19, 1992
Kaiser Development Agreement
Page 14
OLI8..~
.
(
r
...
'Y
t
-.t
during the term of this Agreement, pursuant to California Government Code Section
65865.1, undertake a periodic review of the parties' compliance with the terms
of this Agreement pursuant to the procedures set forth below. Hospitals shall
present information with respect to Hospitals' good-faith compliance with
Paragraph 9.1. In addition to the information provided by Hospitals in accord
with Paragraph 9.1, the City may request Hospitals to address additional issues
with respect to Hospitals' good-faith compliance with the terms' of this
Agreement. The City.shall deliver no less than thirty (30) days' written notice
to Hospitals prior to any hearing of any requirement the City desires to be
addressed, and applicable staff reports, in a manner sufficient for Hospitals to
respond. Either party may address any requirement of this Agreement during the
review period. If at any time of review, an issue not previously identified in
writing pursuant to this Paragraph 9 is required to be addressed, the review at
the request of either party may be continued to afford sufficient time for
analysis and preparation. Such review by the the City may be conducted by the
City Manager..
10.1 Information to be Provided By Hospitals. Pursuant to
Government Code Section 65865.1, Hospitals shall have the duty to demonstrate its
good-faith compliance with the terms of this Agreement at each periodic review.
Hospitals' duty may be satisfied by the presentation to the City of: (i) a
written report ident ifying Hospitals' performance or the reasons for its
nonperformance or excused performance of the requirements of this Agreement, or
(ii) oral or written evidence submitted at the time of review.
10.1.1 The parties recognize that this Agreement and the
documents incorporated herein could be deemed to contain thousands of
requirements (i.e., construction standards, landscaping standards, et al.), and
that evidence of each and every requirement would be a wasteful use of the
parties'resources. Accordingly, Hospitals shall be deemed to have satisfied its
duty to demonstrate compliance when it presents evidence of its good faith and
substantial compliance with any issues requested to be addressed by the City in
accordance with Paragraph 9, and substantial compliance with the major provisions
of the Existing Approvals. Generalized evidence or statements shall be accepted
in the absence of any evidence that such evidence is untrue.
. 10.2 Finding by the City During Annual Review Period that Hospitals
is in Default. If, during any annual review period, the City, on the basis of
substantial evidence, finds Hospitals has not in good faith with this Agreement,
it will give Hospitals thirty (30) days' notice of default pursuant to Paragraph
10.
10.3 Delay in Annual Review. The City's failure to review annually
the Hospitals' compliance with the terms and conditions of th~ Agreement shall
not constitute or be asserted by the City as a breach by Hospitals of any terms
of the Agreement.
11. Default. If either party defaults under this Agreement, the party
alleging such default will give the breaching party no less than thirty (30)
days' notice of default in writing. The notice of default will specify the
nature of the alleged default and, where appropriate, the manner and period of
time in which said default may be satisfactorily cured. During any period of
cure, the party charged will not be considered in default for the purposes of
kaiser19.wp
June 19, 1992
Kaiser Development Agreement
Page 15
~\ 8...,2.1
(
.,
....
.~
J..
termination or institution of legal proceedings. If the default is cured, then
no default will exist and the noticing party will take no further action.
11.1 Public Hearing Required Prior to the Institution of Legal
Proceedings. After proper notice and the expiration of the cure period, the
noticinQ party to this Agreement, shall request hearings before the Planning
CommissIon and the City Council for a determination as to whether this.Agreement
should be modified, suspended or terminated as a result of each default, prior
to the institution of litigation.
11.2 Waiver. Nothing in this Agreement shall be deemed to be a
waiver by either party of any right or privilege held by that party pursuant to
federal or state law, except as specifically provided herein. Any failure or.
delay by a party in asserting any of its rights or remedies as to any default by
the other party will not operate as a waiver of any default or of any such rights
or remedies or deprive such party of its right to institute and maintain any
actions or proceedings which it may deem necessary to protect, assert or enforce
any such rights or remedies.
11.3 Remedies Upon Default. In the event of a default by either
party to this Agreement, the parties shall have the remedies of declaratory
relief, specific performance, mandamus, injunction and other equitable remedies.
Neither party shall have the remedy of monetary damages against the other except
as to obligations requiring the payment of money; provided, however, that the
prevailing party shall be entitled to an award of its reasonable attorneys' fees
and costs if they have offered prior to the institution of litigaiton, and
continue, during the course of litigation, to meet and confer with the other
party to resolve in good faith th~ir differences.
11.4 Third Party Beneficiary Rights Upon Default. In the event that
Hospitals defaults in its performance under this agreement, its default shall not
be asserted by the City as a limitation on City's obligations to EastLake under
Paragraphs 6.5 and 13.8 herein; provided however, in the event of Hospitals'
default, City shall have a right to demand EastLake to fund the traffic analyses
and studies contemplated in Paragraphs 6.5.2 and. 6.5.4, to the extent not
performed or funded by Hospitals.
12. Modifications; Suspension; Termination.
12.1 Emergency Circumstances. If, as a result of specific facts,
events or circumstances, the City finds, following the procedures outlined in
this Section 11 and based upon the preponderance of all evidence presented by the
parties, that a severe and immediate emergency threat to the health and safety
of the citizens of the City requires the modification or suspension of this
Agreement, the City will:
12.1.1 Notify Hospitals of (i) the initiation of the
City's determination process, and (ii) the reasons for the City's determination
and all facts upon which reasons are based;
12.1.2 Notify Hospitals in writing at least fourteen (14)
days in advance of the date, time and place of the hearing and forward to
Hospitals, a minimum of ten (10) days prior to the hearing, all documents related
kaiserlg.wp
June 19, 1992
Kaiser Development Agreement
Page 16
~l~.. ;2.2..
\
-,
'-
,
,
to such determination and reasons therefor; and
12.1.3 Hold a hearing on the determination, at which
hearing Hospitals will have the right to address the City Council. At the
conclusion of said hearing, the City Council may take action to suspend this
Agreement if, based upon the evidence presented by the parties, the City Council
finds that the suspension of this Agreement is required to avoid an immediate and
severe emergency threat to the health, safety and general welfare of the City;
12.1.4 Where the citizens of the City face a severe and
immediate emergency threat to their health and safety, the City may unilaterally
suspend the effectiveness of the Agreement for a period not to exceed the time
reasonably required for notice and a public hearing.
12.2 Change in State or Federal Law or Regulations. If any state
or federal law or regulation enacted during the term of this Agreement or the
action or inaction of any other affected governmental jurisdiction precludes
compliance with one or more provisions of this Agreement, or requires changes in
plans, maps or permits approved by the City, the parties will act pursuant to
Paragraphs 11.2.1 and 11.2.2.
12.2.1 The party first becoming aware of such enactment
or action or inaction will provide the other party with written notice of such
state or federal law or regulation and provide a copy of such law or regulation
and a statement regarding its conflict with the provisions of this Agreement.
The parties will promptly meet and confer in a good-faith and reasonable attempt
to modify or suspend this Agreement to comply with such federal or state law or
regulation. A copy of any such notice which is sent to Hospitals shall also be
sent to the holder of any institutional first trust deed encumbering the Property
if such holder has the written request for notice and provided the City with the
holder's address for notice purposes.
12.2.2 Thereafter, regardless of whether the parties reach
agreement on the effect of such federal or state law or regulation, the matter
will be scheduled for hearing before the City Council no sooner than ten (10)
days following written notice of such hearing to Hospitals. The City Council,
at such hearings, will determine the exact modification, suspension or
termination which is required by the federal or state law or regulation, if any.
Hospitals, at the hearing, will have the right to offer oral and written
testimony regarding any proposed action by the City. Any modifications,
suspension or termination are subject to judicial review.
12.3 Modification by Mutual Consent. This Agreement may be modified
from time to time, by the mutual consent of the parties only in the same manner
as its adoption by an ordinance as set forth in California Government Code
Sections 65867, 65867.5 and 65868, and Resolution 11933 of the City of Chula
Vista. Any modification that affects the rights of EastLake as an express third
party beneficiary shall require the consent of EastLake. The term "this
Agreement" as used in this Agreement will include any such modification properly
approved and executed.
12.4 Invalidation. If this agreement is invalidated following th~
Effective Oate, and if Hospitals has applied for but is unable to obtain building \
kaiser19.wp
June 19, 1992
Kaiser Development Agreement
Page 17
~IB..)..3
\~
l
...
....:.
..
OJ
,
'"
~permits with respect to the third phase of its development at the Property within
twenty years following the Effective Date, then the City shall pay $480,000 to
Hospitals.
12.5 Notice of Termination. In the event that this Agreement is
terminated pursuant to any of the methods authorized in this Article 12, the City
shall prepare and record a Notice of Termination, containing a reference to this
Agreement and the effective date of any such termination in a form suitable for
recordation with the County of San Diego.
13 General Provisions.
13.1 Notices. All notices required by or provided for under this
Agreement shall be in writing and delivered in person or sent by certified mail,
postage prepaid, return receipt required, to the principal offices of the City
'I1fllI-Hospitals and, '.:~el'e aJlJll'9Jll'iate, EastLake. Notice shall be effective on the
date delivered in person or the date when the postal authorities indicate that
the mailing was delivered to the address of the receiving party indicated below: _
Kaiser Foundation Hospitals
393 East Walnut Street
Pasadena, CA 91188
Attn: Manager, Property Acquisition
The City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 92010
Attn: City Manager
EastLake Development Company
900 Lane Avenue, Suite 100
Chula Vista, CA 91914
Attn: Curt Stephenson
Such written notices may be sent in the same manner to such other persons and
addresses as either party may from time to time designate by mail.
13.2 Joint and Several Liability. If either party consists of more
than one legal person, the obligations are joint and several.
13.3 Severability. If any material provision of this Agreement is
held invalid, this Agreement will be automatically terminated unless within
fifteen (15) days after such provision is held invalid the party holding rights
under the invalidated provision affirms the balance of this Agreement in writing.
This provision will not affect the right of the parties to modify or suspend this
Agreement by mutual consent pursuant to Paragraph 11.3.
13.4 Recordation of Agreement: Amendments. All amendments hereto
must be in writing signed by the appropriate agents of the City and Hospitals,
in a form suitable for recording in the Office of the Recorder, County of San
Diego. Within ten (10) days of the date of this Agreement, a copy will be
recorded in the Official Records of San - Diego County, California. Upon
completion of performance of this Agreement or its earlier termination, a
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 18
~l ~..:2.l(
(
statement evidencing said completion or termination, signed by the appropriate
agents of Hospitals and the City will be recorded in the Official Records of San
Diego County, California.
13.5 Applicable Law. This Agreement will be construed and enforced
in accordance with the laws of the State of California.
r-.
13.6 Assignment. Hospitals may transfer its rights and obligations
under this Agreement if such transfer or assignment is made as part of a
transfer, assignment, sale or lease of all or a portion of the Property and the
purchaser intends to put the Property to a medical center use of the same or a
lesser extent and intensity as allowed in the Existing Approvals and the City
consents to said transfer. Said consent shall not be unreasonably withheld.
13.7 Term of Agreement. The term of this Agreement shall expire on
the first to occur of (a) Hospitals' completion of all three phases of its
development at the Property, or (b) twenty (20) years after the Effective Date.
13.8 Covenant of Good Faith and Fair Dealing. Neither party shall
do anything which shall have the effect of harming or injuring the right of the
other party to receive the benefits of this Agreement; each party shall refrain
from doing anything which would render its performance under this Agreement
impossible; and each party shall do everything which this Agreement contemplates
that such party shall do in order to accomplish the objectives and purposes of
this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement on the date
first above written.
'-
The City of Chula Vista, a municipal
corporation
By:
By:
KAISER FOUNDATION HOSPITALS, a California
non-profit public benefit corporation
By:
Hugh A. Jones,
Executive Vice-President
By:
Sandra H. Cox,
Assistant Secretary
,
~
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 19
').,\ t'b ... ~S'
Exhibit "A", Description of the Property
(
[Insert legal description]
kaiser19.wp
June 19, 1992
Kaiser Development Agreement
Page 20
;1l& ..'j..b
--_...~--~
!
,
.-
'-
Ac
~
kaiser19.wp
June 19, 1992
Exhibit "8", Form of Deferral Agreement
Kaiser Development Agreement
Page 21
).\ ~-;l.1
.
nns PAGBBLANK
.
.
.
.
.
~l~-U
Recording Requested By: )
)
)
)
When Recorded Return to: )
)
The City of Chula Vista )
276 Fourth Avenue )
Chula Vista, CA 91910 )
Attn: city Attorney )
GRANT OF EASEMENT AND
DECLARATION OF COVENANT RUNNING WITH THE LAND
THIS GRANT OF EASEMENT AND DECLARATION OF COVENANT RUNNING
WITH THE LAND (the "Agreement") is made and entered into this
day of , 1992, by and between EastLake Development Company,
a California general partnership consisting of corporations,
("EastLake"), the City of Chula Vista, a municipal corporation
having charter powers (the "city"), and Kaiser Foundation
Hospitals, a California non-profit public benefit corporation
("Hospitals"), with respect to the following facts:
RECITALS
A. EastLake is the owner of that certain real property,
commonly known as Village Center I-North consisting of
approximately 17.3 acres and located within the city of Chula
Vista, California, as more particularly described in Exhibit "1"
attached hereto and incorporated herein ("VC I-North Property").
B. The City is the owner of certain property consisting of
streets and other improvements located in the City of Chula Vista,
. California, and more particularly described in Exhibit "2" attached
hereto and incorporated herein: and is herewith the arantee of an
easement over the VC I-North Property from EastLake. for the
purposes of enforcina the covenants herein contained and provided
as runnina with the land ("City Property").
C. EastLake and Hospitals have entered into that certain
Purchase Agreement and Escrow Instructions dated April 26, 1991 and
the First Amendment thereto dated March 2, 1992 (the "Purchase
Agreement") with respect to that certain real property situated in
the city of Chula Vista, California, as more particularly described
in Exhibit "3" attached hereto and incorporated herein (the "Kaiser
Property") . Pursuant to the Purchase Agreement, EastLake has
conveyed fee title to the Kaiser Property to Hospitals concurrently
with the recordation of this Agreement.
" "
b5rH-18rr 75 r~/"1AT
J;;evBLO tJ /YJ tT;1Jr IJ-v J r I
6/26/92
21r3~21
D. In conjunction with the acquisition of the Kaiser Prop-
erty, Hospitals applied to the City for various land use entitle-
ments. includina. but not limited to. an amendment to the East-
Lake I Sectional Planning Area Plan ("SPA" and "SPA Amendment"),
approval of a Conditional Use Permit/Precise Plan and a11 related
discretionary approvals from the city afta e~her ,svernmeft~al
eft~i~ies all as more fully described in the Final SUtltllemental
Environmental Imtlact Retlort for the EastLake I Sectional Plannina
Area (SPA) Plan Amendmentl Kaiser Permanente Chula vista Medical
Center. EIR #92-01. SCH , 92031049 ("FSEIR"). at Section 1.1
thereof. . EIR aessribea bels\: for the proposed Kaiser Permanente
Chula Vista Medical Center ("Medical.Center") (collectively
referred to as the "SPA AmeftalllefttEntitlements"). In addition,
Hospitals is seeking the approval of the City to a development
agreement ("Development Agreement") allowing the development of the
Medical Center. If atltlroved and effective. t'Phe Development
Agreement will be recorded in the Official Records of San Diego
county. EastLake will be an express third party beneficiary of
certain rights under the Development Agreement as defined therein.
E. The SPA AIIleftallleft~ afta the Development Agreement ~rs~ide
eerta1ft eft~i~lellleftts (~the J1Entitlements") ',:hieh will~ in part~
~rsviae fsrpermit the construction of the Medical Center and affect
future development on the Kaiser Property and other property within
the SPA owned by EastLake, including the VC-I North Property
("EastLake's Property"). Hospitals' Medical Center project is
divided into three (3) phases ("Phase I," "Phase II," and "Phase
III") all as more fully described in the SPA Amendment.
F. The SPA Ameftallleftt>, Entitlements and ~ Development
Agreement are anticitlated to comeeallle 1/ before the city Council
for first reaaift' deliberation and tlossible atltlroval ("City
Approval") on June 30. 1992. The city will deliberate utlon
adotltinaaae~tea Ordinance No. ____ on , 1992, approving
the Development Agreement.
G. city Approval of the Entitlements and the Develotlment
Aareement was conditioned upon compliance with certain mitigation
measures, conditions, and exactions which must be implemented,
satisfied or paid prior to development of all or portions of the
Kaiser Property and EastLake's Property. one of which. Mitiaation
Measure No. 4.3.4.6. tlrovides that the Kaiser Permanente Medical
Center is conditioned to prohibit atltlroval of the buildina tlermit
for Phase III. unless the city is satisfied that adeauate catlacitv
exists to accommodate the additional traffic bv one or any
combination of means. one of which was that the atltllicant obtain a
"Deferral Aareement" sufficient in the opinion of the city to
obliaate the holder of riahtsto tlreviouslv atltlroved develotlment to
1/ I understand this agreement is to be executed and in place
prior to the first reading of the ordinance.
2
6/26/92
;2.1 t'; , '3 D
not aoolv for buildina oermits for develooment which has been
included in the traffic studY in the FSEIR for the Pre-SR 125
condition. oroYided that the city aarees that subtractina the
traffic imoacts from such deferred develooment eliminates the
~ianificant traffic imoacts of Phase III identified for the Pre-SR
125 Condition. .
H. Bv yirtue of the aforereferenceq Develooment Aareement.
city and HosDitals have aareed to recoanize this Grant of Easement
and Covenant Runnina With the Land. assumina it is executed.
delivered and recorded in the manner therein orovided. as an
adeauate and sufficient Deferral Aareement sufficient in the
ooiniop of the city to obliaate the holder of riahts to oreviouslv
aooroved develooment otherwise exoected to aenerate 1. 251 P.M. Peak
~rios to not aoolv forbuildina oermits for develooment which has
een included in the traffic studY ~n the FSEIR and therein
attributed with 1.251 P.M. Peak Trios.
I. 1ft eeRju71et.isR ult-h t.ae Git.~i 813preval, ~ke eit.y eert.ifieli
t.fi8 Eftvil"eJut\ellt.al Impaet. Reper~ ("EIR") 19repareEl 1:;,y l.et.t.ieri
lIeIJ\~:fre aREi }.eseeiat.es, IllS. (eaae Fla. 92 91, sell 1929319(9),
datea , 1992. The EIR sete fe~~ ee~taift afttieipated
t.raffie i1flpae~e asseeiat.eEl tlit.h t.R~ ~P^ 1daeRgen'E BREI relat.ed
It! tilJat.isR Ueas\ires eftS SellS! t.ieRs fteeeeaary t.e reell:1ee t.fieae
impaet.a 1:.8 a level aeeeptaele 1:.8 t.ae eit.y. TaB ErR aas aesamed
that. acvelepme:Flt. af all areas fer \:818h I\e.: Entitlements save ~eeR
re~l:1esteEl 1ft tRe ~p~ :aeRSme71t. t/ill iftereaSB taB ~Fip geftera~ieR
rate ee~reRa 'kae E'at.a 'that \189 aas\:lH\ea fer 1aJui 1:Iea aesi4j8.atisRS
8118\1as18 \iRaer t-he SPA. The aRt-ieipat.ed aft-arRaaR pealE heur 'Erips
("I'lI Peale IIear Trips") aRtieipataEi sy t.ae EIR t8 lae lJeJ\erated 1:IRaer
the El'h 1~~8.Eiment ha7e BeCR set fertk i8 tRe EIR at Taele . 7, a
eapy af \:h!ea is at.taeheEi hel'ete as Euhisi t II 1\ II aREi iJ\eerperat.ed
RcreiJ\.
3. The eity's hppre7al ~as eSREiiti8aea 1:Ip88 the
"ideRt.ifieat.ieR af.. aEiEiit.i8Ra1 t.reffis eapaei'EY te aeeemmeaat.e '6ft8
de-t~clepmeRt ef t.he IfcElieal GeRter aRa/ ~r . 'Ellis AIJreemaRt. \:11185 is
fer tRe plir19aae af deferriRg Ele-:e.1a13lBellt. ell ,art-lells af East.I.a]te. s
l'ra13ertr uhleh ha-:e desllJJ\atea "1J.ppra-.~eEl I'rejeet.s". fer pl:lrpeees af
the elty's aRalysis af e~lat.i~e t.reffis impaets aRa app1ieat.ieR
af dC-JelepmeRt threshelss \u\ser Re:aelutiafl lTe_ 13316, Geet.ieR 1999
af tae Sf ty. B UaRielpal Cede aRd \lRder t.ke EastI.a]te I Paella
Faeilities FIRaaalRg PlaR, dated Feerliary 18, 198!.
x. Under present assumptions, 1,772 PM Peak Hour Trips are
necessary for development of all three phases of the Medical
Center. EastLake is agreeing. bv virtue of this aareement. to
withhold develooment and a deferral on obtaining building permits
on VC-I North Property. The deferral of buildina on the VC-I North
Property will reduce PM Peak Hour Trips by 1,251.
3
6/26/92
:21 P., -a 1
NOW, THEREFORE, in consideration of the covenants. terms and
conditions. herein contained. and in reliance on same to the
acknowledaed detriment of the citv in nermittina vestina of all
three 9hases of the Kaiser Medical Center. EastLaJEe ~eift' a ~hi~d
par~y seR&fieiary sf ~eetiefts t.S, 19, 11.1, 12.3 8ft. 13.8 tB ~he
BevelepmeRt 1.greemeftt CIIEastl.a]te SeV8ftaft't.stl), the parties agree as
follows:
1. EastLake's Covenants and Grant of Easement. SUb1ect to
and conditional upon the execution, effeetiveftess~ and
recordation of the Development Agreement and EastLake' s rights
thereunder as an express third party beneficiary, EastLake aqrees
to withhold develonment unon. and to defer seeking building permits
with respect tOol. anv imnrovements. includina structuresJ. located on
the VC-I North Property which property has an attributed 1.1.251 PM
Peak Trips as determined by reference to the EIR ("Covenant to
Withhold Develonment"). In connection with. and for the nurnose of
enforcina this covenant. EastLake herebv a~ants to Citv an easement
for liaht. air and view over all of the VC 7 North Pronertv which
easement shall be coextensive with. and shall exist for so lona as
the Covenant to withhold Develonment shall remain in effect
accordina to the terms of this Aareement and ~astLake's Third Partv
Beneficiarv Riahts under the Develonment Aareement.
~ Covenant of Good Faith and Fair Dealina. Neither nartv
shall do anvthina which shall have the effect of harmina or
in1urina the riaht of the other carty to receive the benefits of
this Aareement: each nartv shall refrain from doina anvthina which
would render its-cerformance under this Aareement imnossible: and
eac9 nartv shall do evervthina which this Aareement contemnlates
that such nartv shall do in order to accomDlish the obiectives and
nurnoses of this Aareement ("Covenant of Good Faith").
3. Termination of Covenant. Except as otherwise set forth
in the Development Agreement for the termination of this Aareement
or as may be agreed to by a recorded amendment of this Agreement
"executed by EastLake,Hospitals and the City, this Agreement and
EastLake's deferral obligation hereunder shall cease and terminate
on the earlier of (i) twenty (20) years after the date upon which
the Development Agreement is recorded in the Official Records of
San Diego County, (ii) the date on which the Development Agreement
terminates due to failure to satisfy the conditions to the
effectiveness thereof pursuant to Section 1.9 of the Development
Agreement, (iii) the dat.e eft "hieh ~he gevelellllleftt 1.,reellleft~
isermiPlates prier t8 f\:111 perfermaRee af the EastI.alte ee-;eJ\aR"'s~1
2/ We can't guarantee effectiveness in this document.
2/ It was a major point with us inhouse that the term of this
agreement should be limited not by time, but by roadway capacity.
We begrudgingly conceded that we may take the risk on a 20 year
4
6/26/92
AI ~ ...3;..
" --_._~.,.._-........
eF (iv) the date on which 1.251 P.M. Peak Trios has been certified
bv the Citv as havina been reallocated to EastLake oursuant to the
nrovisions of ~ha eendi~iefts fer ~ermiRa~ieR ef~kis A,reemeft~ se~
~eJ!'t.h ift section 6.5....1. of the Development Agreement.a. have heel!.
ea~isfiea liftelysing, \[i~Reut limi~atieR, sass~i~a~ieH ef'vieiRi~
~re~erty). I Upon any such termination, the parties agree to
execute all documents and take all other actions reasonably
necessary to remove the affect of this Agreement on title to the
VC-I North Property.
4. Covenant Runnina with Land. It is ~he intentio~ of the
oarties that this aareement shall run with the land and be bindina
uoon the successors and assians to the oarcels. The Parties aaree
that the orovisions of this Aareement touch and concern the
Parcels. All of the provisions, agreements, rights, powers,
covenants, conditions, restrictions and obligations contained in
this Agreement shall be perpetual, shall be binding upon and shall
inure to the benefit of the parties hereto, their respective heirs,
executors, administrators, successors, grantees, assigns, devisees,
representatives, lessees and all other persons acquiring the VC-I
North Property, the city Property or the Kaiser Property
(collectively, the "Parcels") or any portion thereof, or any
interest therein, whether by operation of law or in any manner
whatsoever. All of the provisions of this Agreement shall be
covenants running with the land pursuant to applicable law,
inClUding, but not limited to section 1468 of the California civil
Code. It is expressly agreed that each covenant to do or refrain
from doing some act on the VC-I North Property hereunder (i) is for
the benefit of the City Property and the Kaiser Property and is a
burden upon the VC-I North Property, (ii) runs with the Parcels and
(iii) shall benefit or be binding upon each successive owner during
its ownership of each Parcel, or any portion thereof, and each
owner having an interest therein derived in any manner through any
owner of any Parcel or any portion thereof. The oarties further
aaree that in the event that a court ofcomoetent iursidiction
determines that this aareernent and the covenants herein contained.
do not. for anv reason. run with the land. it is an aoorooriate
term. This clause would provide, however, that if the
Development Agreement terminates in the 7th year say because
Kaiser was able to get some other developer to defer 521 more
trips, builds Phase III and vests, that this covenant to withhold
development would terminate, and even though sufficient capacity
may not be added to the roadway system, EastLake could "dump"
extra-capacity traffic from the VC I North Property.
~/ If there is to be a substitution of vicinity Property under
Section 6.5.8, there will be a separate agreement impressing it
with a similar covenant and easement, and releasing this one.
Furthermore, it is otherwise provided in the Development
Agreement, and is covered by the first sentence.
5
6/26/92
:2..\ A, .. 3.3
remedY for a court of eauitv to enforce the obliaation aaainst
successors and assians as an eauitable servitude. The Darties
aaree that this Aareement has a leaitimate and reasonable social
DurDose to wit: to Drevent the deterioriation of the aualitv of
life of the residents of Chula vista bv reducina the risk of
adverse traffic conaestion. The nartiesaaree that this'document
should not be strictlY construed aaainst the city and Kaiser as the
owners of the benefitted nrocertv.
5. Recordation. This Agreement shall become effective and
binding upon the parties and their respective successors-in-
interest in accordance with the provisions contained herein upon
recordation of this Agreement in the Office of the County Recorder
of the County of San Diego, California.
6. Miscellaneous. This Agreement may be executed in
counterparts, each of which, taken together, shall be deemed to be
one fully executed original. Tais Agreemeftt, tegetaer vita tae
Pllrelu~se ^greeRL&J\'E 8ful ~fte Bevelepmeft'E 1I.gE'eemeJ\~, eel\~ai1'\ 1:.fie
efttire agreemeft'E het....eeft 'Eke ,ar't.ies pertaiftiRg te '-he s\lhjesti
matter aereef. All prior and contemporaneous agreements, repre-
sentations, negotiations and understandings of the parties hereto,
whether oral or written, are hereby superseded.
IN WITNESS WHEREOF" the parties hereto have executed this
Agreement as of the date'first set forth above.
EastLake:
EastLake Development company, a
California partnership
consisting of corporations
By:
Its:
By:
Its:
city:
The ci ty
municipal
chartered
of Chula vista, a
corporation having
powers
By:
Its:
By:
Its:
6
6/26/92
;LIB.3~
Hospitals:
Kaiser Foundation Hospitals, a
California non-profit or public
benefit corporation
BY":
Its:
By:
Its:
C:\DHS\RJB.OJR\7053979.WP
7
6/26/92
~Il?>- :s
EXHIBIT 1
VC-l North Property
EXHIBIT 2
city Property
EXHIBIT 3
Kaiser Property
EXHIBIT 1
~/8-3f&,
Recording Requested By:
Latham & Watkins
701 "B" Street, Suite 2100
San Diego, CA 92101
ATTN: Jon D. Demorest, Esq.
)
)
l
DEVELOPMENT AGREEMENT
BY AND BETWEEN
KA1SER FOUNDATION HOSPITALS, a
".
'-
California non-profit public benefit corporation,
and
THE CITY OF CHULA VISTA, a charter city
Dated:
, 1992
..
.
dl~-"
Based on the foregoing, and the City's determination that its transportation
facilities could still be operated within the traffic threshho1d with the
development contemplated by EastLake's plan, the City determined that it would
not object to the issuance of building permits for the Village Center, under
EastLake's plan, on the basis of the development's impact on the "traffic
threshho1d" established by the "Quality of Life Threshho1ds," as defined herein.
Accordingly, the Vi llage Center was given "approved project" status by the City.
1.5 Hospitals' Projected Traffic Demand. The proposed "medical
center" use of the Property, under Hospitals' plan, including all three phases,
on the entire 30.6 acres, has been projected by the City to generate 2,630 P.M.
Peak Trips. The P.M. Peak Trips allocated by phase are as follows:
Phase I
Phase II
Phase I II
Total
560
1,010
1,060
2,630
1. 6 Projected Traff i c Demand of V ill age Center. The proposed uses
of the Village Center under the amended SPA Plan, including all three phases of
Hospitals' proposed medical center development, has been projected by the City
to generate 4,158 P.M. Peak Trips, based on the following anticipated development
of the Village Center:
...
Open Space (10.9 acres)
Library (1 acre)
Commercial (17.3 acres)
Office (6 acres)
Industrial (2 acres)
Church (4 acres)
Medical Center (30.6 acres)
Total P.M. Peak Trips
o
40
1,211
234
31
12
2.630
4,158
.
.;~ .
Accordingly, the City has projected that the proposed uses for the Vi llage Center
will create 1,772 (4,158 - 2,386) more P.M. Peak Trips than were projected for
the previously anticipated use.
1.7 Benefits to the City. This Agreement is entered into for the
purpose of facilitating the development of the Property in a manner that will
ensure certain anticipated benefits to the City (including, without limitation,
the existing and future residents and populations of the City) as follows:
1.7.1 To provide for a significant cash contribution to the
City that will enable the City to finance programs and improvements that
otherwise would have to be financed from the Clty'S general fund or from other
sources.
1.7.2 To provide and assure to the City the accelerated,
coordinated and more economic construction, funding and dedication to the public
of certain vitally needed public facilities and benefits, and to provide for
anticipated levels of service to residents and populations of the City and
adjacent areas, all as provided for in the Ci~y's General Development Plan.
,..
,
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 3
~\ 6 ... '1
DEVELOPMENT AGREEMENT
California Government Code
Sections 65864-65869.5
THIS DEVELOPMENT AGREEMENT ("this Agreement") is entered into on
, 1992, between KAISER FOUNDATION HOSPITALS, a California non-profit
public benefit corporation ("Hospitals") and the CITY OF CHULA VISTA, a municipal
corporation having charter powers (the "City"), with reference to the recitals
set forth below.
1. Recitals.
1.1 City's Authority to Enter Into Development A9reement. .The
City, as a charter city, is authorized under Resolution No. 11933, its Charter,
and its self-rule powers and Government Code Section 65864 to enter into binding
development agreements with persons having legal and equitable interests in real
property for the purposes of assuring, among other things (i) certainty as to
permitted land uses in the development of such real property, (ii) construction
of adequate public facilities to service such real property and (iii) equitable
reimbursement of the cost of construction of excessive size or capacity public
facilities.
1.2 The PropertYi Developer's Interest. Hospitals owns or holds
an enforceable right to acquire fee title to the real property described in
Exhibit "A" (the "Property"), consisting of approximately 30.6 acres at the
northwest corner of EastLake Parkway and the extension of Fenton Street.
Hospitals intends to construct and operate on the Property, in three phases,
medical office buildings, a hospital, a parking structure and related support
facilities, as is more particularly described in the "CUP," as defined herein,
with the following approximate amounts of building square footage for each phase:
Phase I 295,000 S.F.
Phase II 505,000 S.F.
Phase III 540.000 S.F.
Total 1,340,000 S.F.
1.3 Property Part of Village Center. Hospitals has purchased or
wi 11 purchase fee title to the Property from EastLake Development Company
("EastLake"). The Property was planned for development by EastLake as part of
a larger area, consisting, including the Property, of approximately 71.8 acres
and referred to as the Village Center 1 (59.8 acres) and Village Center 2 (12'
acres) portions of the EastLake SPA Plan Area (the "Village Center"). .
1.4 Approved Project Status of Village Center. The Village Center
was previously estimated to generate a number of average daily trips which the
City and Hospitals agrees is equivalent to 2,386 p.m. peak period traffic trips
("P.M. Peak Trips"), based on the following previously anticipated development
of the Village Center, expressed in P.M. Peak Trips:
Multi-Family Residential
Library (1 acre)
Commercial (22.2 acres)
Office (12 acres)
Total P.M. Peak Trips
(405 D.U.) 324
40
1,554
468
2.386
~\~..t
.,
1.7.3 To provide and assure that the City receive enhanced
sales tax revenues and an interim increase in property tax revenues.
1.7.4 To provide a major employment opportunity for residents
of the City. In this regard, Hospitals promises to use reasonable efforts to
develop an employment outreach program that encourages local employment of Chu1a
Vista residents.
1.7.5 To provide additional high quality medical services to
serve the residents of the City.
1.8 Intentions of Parties in Entering Into This Agreement.
Hospitals and the City intend to enter into this Agreement to:
1.8.1 Assure Hospitals' participation in the construction and
financing of public facilities;
1.8.2 Provide the City with public facilities and improvements
in excess of those public facilities and improvements to which it would otherwise
be entitled and/or provide the City with such public facilities and improvements
at an earlier time than the City would otherwise have been able to obtain them;
~d .
1.8.3 Provide Hospitals with certainty in the land use
regulations and policies applicable to the development of the Property to the
extent herein granted and with a vested right to proceed with the development of
the Property to the land uses, densities and intensity of uses to the extent and
~ in the manner as provided below.
.-
1.8.4 It is the intention of the parties to review the traffic
ana 1ys is undertaken with respect to Hospitals' proposed development for the
express purpose of attempting to reduce or avoid the deferral of development of
land owned by EastLake and otherwise authorized for development, as is
contemplated by Section 5.6 hereof.
1.9 Effective Date; Adoption of Ordinance Approving Agreement. The
ordinance approving this Agreement was first introduced at the City Council
meeting of ,1992. The Citti Council of the City adopted Ordinance No.
approving this Agreement.!! The "Effective Date" of this Agreement
shall be the date on which the thirty day period for challenging the City's
adoption of the environmental impact report prepared in conjunction with its
consideration and approval of the CUP and this Agreement under the California ~
Environmental Quality Act expires without any lawsuit having been filed, or the ~"
date on which the thirty day period for cha1lenginp this Agreement by referendum ~~ ~
expires without such a challenge having been initlated. whichever is later. In ~~p tt /;
the event any such lawsuit is filed or referendum is initiated, Hospitals and the \/~
City shall meet within thirty days and confer about the method for responding to/f' .~,
the lawsuit or challenge, and the Effective Date shall be extended for such'J1 :\1lill"
thirty days. If the City and Hospitals are unable to agree to the method for ~VIP :
1. The Development Agreement will be executed immediately following the second
reading of the ordinance.
'"
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement.
Page 4
~\ ~-/O
- -. ~ .. . - , -. <-
\.
responding within said thirty days, then this Agreement shall terminate and
Hospitals and the City shall be released from all liability hereunder.
1.10 Findings of the City Council. The City Council has found that this
Agreement is consistent with the City's General Plan, the EastLake II. (EastLake
I Expansion) General Development Plan, the EastLake I Planned Community District
Regulations, and the EastLake I Sectional Planning Area Plan, as well as all
other applicable policies and regulations of the City.
2. Definitions.
requires:
In this Agreement, unless the context otherwise
2.1 "Activity Center Precise Plan Guidelines" shall mean the design
guidelines for the EastLake I activity center, adopted concurrently with the
first reading of this Agreement as an Ordinance by the City.
2.2 "Air Quality Improvement Plan" shall mean the EastLake I
Activity Center Air Quality Improvement Plan, as adopted concurrently with the
first reading of this Agreement as an Ordinance by the City.
2.3 "City" means the City of Chula Vista, a charter city.
2.4 "CUP" shall mean the Conditional Use Permit granted by
Resolution No. , adopted concurrently with the first reading of the
Ordinance approving this Agreement.
2.5 "EastLake" means EastLake Development Company, a California
~. general partnership comprised of corporations.
'...
2.6 "Effective Date" is defined in paragraph 1.9 hereof.
2.7 "Existing Approvals" shall mean all discretionary approvals
and/or standards which have been approved, established or amended in conjunction
with or preceding approval of this Development Agreement, as it relates to the
Property, consisting of, but not limited to:
2.7.1 The General Plan;
2.7.2 The EastLake II (EastLake I Expansion) General
Development Plan;
2.7.3 The SPA Plan; and
2.7.4 The Financing Plan;
2.7.5 The Water Conservation Plan.
2.7.6 The Air Quality Improvement Plan;
2.7.7 The Activity Center Precise Plan Guidelines;
2.7.8 The Precise Plan;
".
I
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 5
d\ a -II
2.7.9 The CUP;
{
2.7.10
The Eastlake I Planned Conununity District
Regulations;
The lot line Adjustment;
2.7.11
2.8 "Financing Plan" means the Eastlake I Public Facil ities Finance
Plan, adopted concurrently with the first reading of this Agreement as an
Ordinance by the City, together with any exhibits and appendices thereto,
including without limitation any phasing plans attached thereto, and any further
modifications or amendments thereto which may be duly adopted by the City in the
manner provided by law.
2.9 "General Plan" shall mean the Chula Vista General Plan,
together with all its elements, currently in effect at the time of adoption of
the Ordinance approving this Agreement.
2.10 "General Development Plan" shall mean the Eastlake II (Eastlake
I Expansion) General Development Plan and all elements thereof, as amended
concurrently with the first reading of this Agreement as an Ordinance by the
City.
2.11 "Hospitals" means Kaiser Foundation Hospitals, a California
non-profit public benefit corporation, and any affiliate owned, controlled by,
owning, or under conunon control with the Kaiser Permanente medical 'care program
to which it may assign all or any portion of its rights under this Agreement.
!'<
....
2.12 "lot line Adjustment"
on as document no.
Property as a separate legal lot.
2.13 "Planned Community District Regulations" shall refer to the
Eastlake I Planned Community District Regulations as approved pursuant to
Ordinance No. on , as amended concurrently with the first
reading of the~nance approving this Agreement.
means the lot line adjustment recorded
for the purpose of creating the
.~
.~
.:..
2.14 "Planning Conunission" means the Planning Conunission of the City
of Chula Vista.
2.15 "P.M. Peak Trips" is defined in paragraph 1.4 hereof.
2.16 "Precise Plan" means the Precise Plan with respect to
Hospitals' proposed construction at the Property, adopted concurrently with or
prior to the first reading of the Ordinance by the City approving this Agreement.
2.17 "Property" is defined in paragraph 1.2 hereof.
2.18 "Quality of life Threshholds" means the levels of service
criteria and enforcement procedures established by Resolution No. 13346 and
Section 19.09 of the City's Municipal Code. If any disparity exists between the
Resolution and the Municipal Code as to the nature of the threshold, or the
method for measuring same, the Municipal Code shall govern.
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 6
dt~...I')..
. .",.
,.
'-
.~
2.19 "SPA Plan" means the EastLake I Sectional Planning Area Plan
'approved by the City pursuant to Resolution No. 11934 on February 19, 1985, as
amended concurrently with the first reading of Ordinance by the City approving
this Agreement.
2.20 "Substantial Compliance" means that the party charged with the
performance of a covenant herein has sufficiently followed the terms of this
Agreement so as to carry out the intent of the parties in entering into this
Agreement.
2.21 "Trans DIF" means the City's transportation facility
development impact fee program adopted pursuant to Ordinance No. 2251, as
amended. '
2.22 "Village Center" is defined in paragraph 1.3 hereof.
2.23 "Water Conservation Plan" shall mean the EastLake I Activity
Center Water Conservation Plan, as amended concurrently with the first reading
of this Agreement as an Ordinance by the City.
3. Description of Property. The Property consists of approximately 30.6
acres located at the northwest corner of the EastLake Parkway and Fenton Road in
the City of Chula Vista, County of San Diego, and is more particularly described
in Exhibit "A" attached hereto. .
4. Extraordinary Benefits to the City. In addition to the benefits t~ ,,~ ~
the City as described in paragraph 1.3 hereof, and as further consideration for \, ~
the vesting of Hospitals' right to develop the Property as provided herein,~ L.~'J
Hospitals shall pay to the City the sum of one million two hundred thousand ~ ~{
dollars ($1,200,000) within five (5) business days after the Effective Date. ~~
Said sum shall be used by the City to support programs or to build capital
facilities that serve health and human services needs. The City shall advisen~
Hospitals as to how the City proposes to use said sum, and Hospitals shall have" \)~
the right to approve the uses proposed by the City. Hospitals agrees not to
unreasonably withhold or delay its approval of any use proposed by the City, so t
long as the proposed use is consistent with the intent of the parties that said ~
sum be directed to health and human services. \. ~,
5. Conditions Precedent. The vesting of Hospitals' right to develop the ~\ ~~
Property as provided herein, and Hospita l' s ob 1 igat ions under paragraph 4 hereof, n ~ \ '\ ~ l}
are contingent upon EastLake's, execution and delivery of an instrument in the ~~'ll\'
form of Exhibit "B" attached hereto and incorporated herein by reference.l' In ~ V
addition, the vesting of Hospitals' right to develop the Property as provided v'-
herein. and all of the remainder of the riahts conferred in this Aareement are
4& contingent upon Hospitals' timely payment to the City of the sum referred to
in paragraph 4 hereof. All rights, duties, waivers, findings and determinations
subsequently provided in this Agreement apply only if the aforementioned
Conditions Precedent have occured.
2. Form of agreement may have to have a transfer of an interest in land to the
City to be a covenant running with the land and binding upon successors. Open
Point. .
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 7
~\6..13
"
-i.
,
6.
Vested Rights.
and other benefits to the ty as set forth herein, Hospitals is vest~d with the~~
right to develop and ma' tain the first two phases of the medical center project ~
at the Property to t land uses, densities and intensities and at such a rate~
of development and bject to such standards as are set forth herein and in the ~
Existing Approvals. Hospitals' right to develop the third phase of its mediCalts~~\
center project at the Property is vested presently, subject only to the condition ~
that an additional 521 P.M. Peak Trips be allocated to the Property in the manner .1
contemplated pursuant to Section 6.5 hereof and subject to the provisions of V \~
Section 6.6 hereof. 6~ ~
6.2 Benefit of Earlier Vesting. Nothing in this Agreement will be ~.~
construed as adversely affecting Hospitals' obtaining a vested right to develop
the Property, if any, pursuant to the provisions of California's constitutional,
statutory and decisional law.
6.3 Application of New Rules, Regulations and Policies. Subject
to the provisions of Section 7 hereof, the City may, during the term of this
Agreement, apply to the Propert only such new rules, regulations, policies,
ordinances and standards that a do not relate to land use and ~ are generally
applicable throughout the City or b Jlld ',:Ilisll will not prevent or delay the
development of the Property to the land uses, densities or intensities of
development permitted herein and in the Existing Approvals.
6.4 Phasing. The parties acknowledge that Hospitals cannot at this
time predict when or the rate at which the phases of its development at the
Property will be developed. Such decisions depend upon numerous factors which
are not within the control of Hospitals, such as membership growth and other
similar factors. Since the California Supreme Court held in Pardee Construction
Co. v. the Citv of Camarillo, 37 Cal. 3d 465 (1984), that the failure of the
parties therein to provide for the timing of development resulted in a later
adopted initiative restricting the timing of development to prevail over such
parties' agreement, it is the parties' intent to cure that deficiency by
acknowledging and providing that Hospitals shall have the right to develop the
Property to the density and intensity of use contemplated by the Existing
Approvals during the term of this Agreement in such order and at such rate and
at such times as Hospitals deems appropriate within the exercise of its
subjective business judgment within the limits and subject to the conditions
stated in this agreement.
6.5 Transfer of Approved Project Status. Hospitals shall not apply
for building permits, and City shall have the right to withhold building permits
as to all or any port ion of Hospitals' development at the Property, until
Hospitals secures, to the satisfaction of the City, an allocation from the City
of additional P.M. Peak Trips as provided for under the terms of this Section
6.5, inclusive of Subsections 6.5.1 through 6.5.8. An additional III P.M. Peak
Trips must be secured in order to allow Hospitals to procure building permits
with respect to the first two phases of its development at the Property (the
"Phase I and II Required Amount"), and a total of 1772 P.M. Peak Trips (i.e.
another ~ P.M. Peak Trips in excess of the Phase I and II Required Amount~
kaiserI9.wp
June 19, 1992
Kaiser Development Agreement
Page 8
a.\ to ../~
...
-
'"
~
-
must be secured in order to allow Hospitals to procure building permits with
respect to the third phase of its development at the Property (the "Phase III
Required Amount"). The City further agrees that the obligations of City
contained in Subsections 6.5.2 through 6.5.8, inclusive, Section 11 (excepting
the right ~p the payment of prevailing party attorney fees), Section 12.3, and
Section l~ are for the benefit of Hospitals and for the benefit of EastLake
as an express third party beneficiary. '
6.5.1. Capacity Obtained by Deferral Agreements from Other
Property Owners. Agreements to Withhold Development. To the extent that
Hospitals secures an agreement and covenant running with the land ("Deferral
Agreement") in a form satisfactory to the City and for the express benefit of the
City, from one or more property owners owning property ("Vicinity Property")
within the City of Chula Vista east of I-80S, which Vicinity Property is not
developed but which is determined by the City to generate a given number of P.M.
Peak Trips, that said property owner(s) will withhold such Vicinity Property from
development, then the number of P.M. Peak Trips determined by the City to be
allocable to such Vicinity Property shall be credited to Hospitals towards the
satisfaction of the Phase I and II Required Amount and the Phase III Required
Amount. The City agrees that the Covenant Running with the Land, attached hereto
as Exhibit "B" (the "EastLake Deferral Agreement"). when executed, delivered,
recorded in the Official Records of San Diego County in a priority senior to all
monetary liens (other than the liens of real property taxes, assessments and
special districts), with such recordation and priority insured to the
satisfaction of the City Manager, will constitute an adequate Deferral Agreement
sufficient to provide Hospitals with a credit of 1,251 P.M. Peak Trips towards
its Phase I and II Required Amount and its Phase III Required Amount. The
EastLake Deferral Agreement wi 11 sat i sfy Hospitals' entire Phase I and II
Required Amount, and will satisfy all but 521 P.M. Peak Trips of Hospitals' Phase
III Required Amount.
6.5.2 Additional Capacity Based on Zion Study. The City shall
undertake a study of the actual traffic generated by the Zion Avenue medical
center operated by Hospitals in the City of San Diego for the purpose of
establ ishing whether the P.M. Peak Trips generation rates assumed by the
environmental impact report prepared in conjunction with the approval of
Hospitals' proposed development at the Property is too high. The cost of said
study shall be paid by Hospitals, unless they are in default or shall otherwise
refuse to do so, in which case, the cost of said study shall be paid by EastLake.
To the extent the City Manager of the City or his designee determines, based upon
such study, that the assumed rate of P.M. Peak Trips generation in said
environmental impact report is too high, the increment shall be allocated (a)
first, to Hospitals, until a total of an additional 521 P.M. Peak Trips have been
allocated to Hospitals pursuant to this Section 6.5, thereby fully mitigating the
traffic impacts of all three phases of Hospitals' development at the Property,
and (b) second, to EastLake, to the extent of the amount of P.M. Peak Trips then
reserved by Eastlake pursuant to the EastLake Deferral Agreement (after giving
effect to any P.M. Peak Trips previously allocated to EastLake pursuant to this
Section 6.5), thereby releasing a commensurate amount of development from the
3. This will be contingent on EastLake provided an enforceable covenant running
with the land that has an enforceable covenant of good faith and fair dealing.
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 9 .
d-I~..IS
,-
c
"":
-
.~
restrictions of the EastLake Deferral Agreement.
6.5.3 Additional Capacity Based Actual Traffic Generation.
To the extent that Hospitals has not previously received sufficient credit toward
its Phase III Required Amount pursuant to this Section 6.5, or that all or some
portion of the Vicinity Property subject to the EastLake Deferral Agreement
(Exhibit B) remains subject to a covenant to withhold development (after giving
effect to any P.M. Peak Trips previously allocated to EastLake pursuant to this
Section 6.5), and to the further extent that Hospitals or EastLake submits a
traffic study of the actual P.M. Peak Trips generated by the first two phases of
Hospitals' development at the Property, and the City Manager of the City or his
designee determines, based upon such study, that the actual P.M. Peak Trips
generated is less than that predicted by the traffic model utilized for the
environmental impact report prepared in conjunction with the approval of
Hospitals' proposed development at the Property, the increment, to the extent it
is not duplicative of P.M. Peak Trips already allocated to Hospitals or EastLake
by the provisions of this Section 6.5, shall be allocated (a) first, to
Hospita ls, until an addit iona 1 521 P.M. Peak Trips have been allocated to
Hospitals pursuant to this Section 6.5, thereby fully mitigating the traffic
impacts of all three phases of Hospitals' development at the Property, and (b)
second, to EastLake, to the extent of the amount of P.M. Peak Trips then reserved
by Eastlake pursuant to the EastLake Deferral Agreement (after giving effect to
any P.M. Peak Trips previously allocated to EastLake pursuant to this Section
6.5), thereby releasing a commensurate amount of development from the
restrictions of the EastLake Deferral Agreement.
6.5.4 Additional Capacity Based on HNTB Traffic Studies. To
the extent that Hospitals has not previously received sufficient credit toward
its Phase III Required Amount pursuant to this Section 6.5, or that all or some
portion of the Vicinity Property subject to the EastLake Deferral Agreement
(Exhibit B) remains subject to a covenant to withhold development (after giving
effect to any P.M. Peak Trips previously allocated to EastLake pursuant to this
Section 6.5), the City shall continue wlth and finish to the point of being able
to draw adequate conclusions from the HNTB traffic study designed to identify the
amount of traffic capacity, if any, in the existing roadway system that has not
previously been allocated to "approved projects, and to the further extent that
the City Council determines, based upon such study, that such capacity exists,
the City shall allocate a fair percentage of such traffic capacity to the extent
it is not duplicative of credits already extended previously, after due
consideration of other proposed projects, (a) first, to Hospitals, until an
additional 521 P.M. Peak Trips have been allocated to Hospitals pursuant to this
Section 6.5, thereby fully mitigating the traffic impacts of all three phases of
Hospitals' development at the Property, and (b) second, to EastLake, to the
extent of the amount of P.M. Peak Trips then reserved by Eastlake pursuant to the
EastLake Deferral Agreement (after giving effect to any P.M. Peak Trips
previously allocated to EastLake pursuant to this Section 6.5), thereby releasing
a commensurate amount of development from the restrictions of the EastLake
Deferral Agreement. No other person shall be deemed to be a beneficiary of this
Subsection other than as expressly provided herein.
6.5.5 Additional Capacity Obtained from SR 125, Interim SR 125
Facility, or Changes in Operation. To the extent that Hospitals has not
previously received sufficient credit toward its Phase III Required Amount
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 10
~l ~ -Jf,
(
....
,
pursuant to this Section 6.5, or that all or some portion of the Vicinity
Property subject to the EastLake Deferral Agreement (Exhibit B) remains subject
to a covenant to withhold development (after giving effect to any P.M. Peak Trips
previously allocated to EastLake pursuant to this Section 6.5), and to the
further extent that the City Council determines that additional traffi~ capacity
is created as a result of system improvements, such as the construction of State
Route 125 or an interim facility, or as a result of changes in operations, such
as a finding that the implementation of a City-wide transportation demand
management program will reduce traffic generated from projects throughout the
City, the City shall allocate, to the extent it is not duplicative of credits
already extended previously, a fair percentage of such traffic capacity, after
due consideration of other proposed projects, (a) first, to Hospitals, until an
additional 521 P.M. Peak Trips have been allocated to Hospitals pursuant to this
Section 5.6, thereby fully mitigating the traffic impacts of all three phases of
Hospitals' development at the Property, and (b) second, to EastLake, to the
extent of the amount of P.M. Peak Trips then reserved by Eastlake pursuant to the
EastLake Deferral Agreement (after giving effect to any P.M. Peak Trips
previously allocated to EastLake pursuant to this Section 6.5), thereby releasing
a commensurate amount of development from the restrictions of the EastLake
Deferral Agreement.
6.5.6 Additional Capacity Generated by Changed Conditions.
To the extent that Hospitals has not previously received sufficient credit toward
its Phase III Required Amount pursuant to this Section 6.5, or that all or some
portion of the Vicinity Property subject to the EastLake Deferral Agreement
(Exhibit B) remains subject to a covenant to withhold development (after giving
effect to any P.M. Peak Trips previously allocated to EastLake pursuant to this
Section 6.5), and to the further extent that the City Council determines that
additional traffic capacity exists within the existing roadway system as a result
of changed conditions or assumptions relating to planned or assumed development
within the eastern regions of the City, the City Council shall, to the extent it
is not duplicative of credits already extended previously, allocate a fair
percentage of such traffic capacity, after due consideration of other proposed
projects, (a) first, to Hospitals, until an additional 521 P.M. Peak Trips have
been allocated to Hospitals pursuant to this Section 6.5, thereby fully
mitigating the traffic impacts of all three phases of Hospitals' development at
the Property, and (b) second, to EastLake, to the extent of the amount of P.M.
Peak Trips then reserved by Eastlake pursuant to the EastLake Deferral Agreement
(after giving effect to any P.M. Peak Trips previously allocated to EastLake
pursuant to this Section 6.5), thereby releasing a commensurate amount of
development from the restrictions of the EastLake Deferral Agreement.
6.5.7 Certificate of Reallocation. As additional P.M. Peak
Trips are allocated to Hospitals and EastLake pursuant to the provisions of this
Section 6.5, the City will execute and deliver to EastLake and Hospitals a
recordable instrument in.form satisfactory to them verifying the reallocation of
P.M. Peak Trip under the provisions of this Section, and releasing appropriate
portions of the Vicinity Property otherwise subject to deferral from the EastLake
Deferral Agreement. All P.M. Peak Trips, not to exceed 1,251, reallocated to
EastLake as provided above shall thereafter be available to EastLake or its
successors and assigns for the purpose of mitigating any traffic impacts created
by projects within the EastLake SPA Plan area.
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 11
,,),18 -11
(
"1
'-4
,.
".
6.5.8 Eastlake's Right of Substitution of Vicinity Property.
Eastlake shall have the right, at its sole election, to select from time to time,
other property within the Eastlake SPA Plan Area which may be used in whole or
in part for the purpose of deferring building permits as required above, to the
extent such other Vicinity Property is determined by the City Manager or his
designee to be sufficient to satisfy Eastlake's deferral obligations under this
Section 5.6 and under Exhibit "B." Within forty-five (45) days from Eastlake's
request of the City to use other properties in this manner, the City, by the City
Manager, will make its determination as herein provided, and if City determines
that the substitute Vicinity Property is sufficient, City will execute and
deliver to Eastlake a recordable instrument in a form satisfactory to Eastlake,
releasing the appropriate portions of Village Center 1 from the deferral
agreement on the condition that the substitute Vicinity Property is encumbered
in the same manner and to the same extent of security herein required of the
Village Center I North Property described in Exhibit B.
'.
6.6 Effect of Financing Plan and Quality of life Thresholds. The
City has determined that it is critically important to adhere to the Quality of
life Threshholds and the Financing Plan in order to assure the orderly and timely
construction of public facilities as the need for them arises as a consequence
of new development within the City. The City has determined that Phases I and
II of Hospitals' development at the Property can, at present, be accomodated
without violating any of the Quality of life Thresholds, and that Phase III of
Hospitals' proposed development at the Property at present can be accomodated
without violating any of the Quality of life Threshholds, with the exception of
the Quality of Life Threshhold pertaining to traffic and with the possible
exception of the Quality of life Threshold pertaining to the delivery of fire and
police services. The City agrees that any change made to the number of
Thresholds or the standard for measuring a violation of same shall not apply to
Phase III at the Property, but that Phase III will be governed according to the
current number and standards for measurement, and that the only thresholds
capable of limiting the development of Phase III are thresholds pertaining to
traffic and the delivery of fire and police services. The City further agrees
that six (6) months prior to the time when Hospitals anticipates pulling its
building permits for Phase III, the City will meet and advise Hospitals, at their
request, if the thresholds, as they are currently worded, pertaining to fire and
police are likley to be violated by Phase III development of the medical center.
If the City determines that a violation is likley to occur, the City will
dedicate available DIF resources to cure the violation. If the available DIF
resources are deficient to cure such violations, City will give Hospitals the
option to advance such capital expenditure costs as is needed to cure the likely
violations, and City will provide for reimbursement to Hospitals from subsequent
developers.
6.7 Effect of Eastlake Development Agreement. From and after the
Effective Date, the Development Agreement between the City and Eastlake
Development Company adopted by Ordinance No. 2102 and recorded in the Official
Records of San Diego County as Document No. 85-198858, shall not apply to the
Property. The balance of the Eastlake I area shall continue to be subject to the
provisions of Ordinance No. 2102, according to its terms.
7. Ability of City to Modify Design Elements. The City will accept for
expeditious processing and review and shall use its reasonable efforts to assist
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 12
~IB..I8'
!
\..
Hospitals in obtaining any further permits or approvals required in connection
issuable from the City with Hospitals' proposed construction at the Property
including without limitation approvals with respect to design elements that hav~
not been specifically approved in the Precise Plan. The City shall limit its
review of any such design elements to a determination of whether. they are
consistent with the Precise Plan and the Activity Center Precise Plan Guidelines.
8. Development Impact Fees. The following development impact fee
program is hereby established for the Property.
8.1 Existing Transportation Facility Development Impact Fees. The
City has determined, pursuant to Section 5 of said Ordinance No. 2251, that
Hospitals should be granted a waiver or reduction of transportation facility
development impact fees payable by Hospitals with respect to the Property, as
follows:
- .
8.1.1 The TransDIF fees payable with respect to Hospitals'
development shall be computed on the basis of a traffic generation rate of 650
trips per acre. Sixty percent (60%) of the total TransDIF fees payable with
respect to Hospitals' development shall be allocated to the first two phases of
the development. The TransDIF fees for the first two phases of the development
will be paid (subject to the use of credits as provided below) no sooner than the
Effective Date. The City shall estimate the increase in TransDIF fees that will
result from the addition of the improvements described in Section 8.1.2 to the
TransDIF program, and the amount of such estimate -shall be included in the
TransDIF fees payable with respect to the first two phases of Hospitals'
develgpment, regardless of whether the TransDIF Program is updated to include
same.
'"
8.1.2 For the purpose of calculating the TransDIF fee payable
by Hospitals, the City shall estimate the cost of the widening of EastLake
Parkway between Otay Lakes Road and north of Fenton Street, and the widening of
Otay Lakes Road between EastLake Parkway and State Route 125.
8.1.3 The City shall use its best efforts. subiect to the
freedom to exercise its discretion. to include the cost of the widening of
EastLake Parkway between Otay Lakes Road and north of Fenton Street, and the
widening of Otay Lakes Road between EastLake Parkway and State Route 125. and the
sianalization of the intersection of Fenton Road and EastLake Parkway in the
TransDIF in the next annual update thereof.
8.2 Existing Public Facilities Development Impact Fees. Hospitals
sha 11 pay the full amount of public facH ity deve lopment impact fees payable with
respect to the Property pursuant to Ordinance No. , as the same may
be from time to time amended.
4. Open Point: We can't contract to include a facility in the TransDIF because
its inclusion is subject to the Council's discretion at a public hearing. Kaiser
feels that if the subject improvements are not. added to the TransDIF, it should
get a further credit against its TransDIF fees in an amount equal to the benefit
it would have received had the improvements been added to the DIF.
,
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 13
~\ ~... J,
l
,-
"-
,,-
~
8.3 Use of Credits for the Payment of DIF Fees. The TransDIF fees
and the public facilities development impact fees payable with respect to
Hospitals' development as provided herein may be paid using credits accumulated
by Hospitals and/or using credits accumulated by EastLake and transferred to
Hospitals.
8.4 Prepayment of DIF Fees. The TransDIF fees and the public
facilities development impact fees for Phases I and II of Hospitals' development
at the Property may be prepaid by Hospitals at any time on or after the Effective
Date, and from time to time, in whole or in part.
8.5 Withhold of Permits. Hospitals agrees that the City shall have
the right to withhold issuance of any building permit for construction within the
area of the Property unless and until the appropriate TransDIF fees and public
facilities development impact fees are paid by Hospitals.
8.6 Other Development Fees and Exactions. No category of
development impact fees, assessments or other fees, charges or exactions shall
be charged or levied with respect to the Property, except for fees, assessments,
charges or exactions in effect on the date of this Agreement. and exceot that the
it ma im ose a char e ursuant 0 an lawful means and Hos itals shall be
free to 0 ose the im osi ion of such char e b an lawful means im osin on
Phase III of Hosoitals' develooment its fair share of the cost of an interim
State Route 125 facilitv pursuant to a financina oroaram aenerallv aoolicable to
the eastern territories. Notwithstanding the foregoing, the amount of such fees,
charges or exactions is subject to increase on a non-discriminatory, community-
wide basis (recognizing for the purposes of the TransDIF, the public facilities
DIF and the Telegraph Canyon Drainage Basin sewer fee, the area east of 1-805 as
a community), and Hospitals shall pay such fees, charges or exactions at the rate
in effect on the date of payment. The foregoing limitation on new categories of
development fees is not intended to preclude the City from levying service fees
or use charges on a non-discriminatory, community-wide basis.
9. Binding Effect; Encumbrance of Property; Status.
9.1 Binding Effect. The provisions of this Agreement will be
b~nding upon and inure to the benefit of the parties successors-in-interest.
9.2 Discretion to Encumber. Nothing in this Agreement will prevent
or limit Hospitals, in any manner, at Hospitals' sole discretion, from
encumbering all or any portion of the Property or improvement thereon by any deed
of trust or other security device.
9.3 Status. Each party will, within fifteen (15) days after
written request, give written notice to the other party of whether the party
giving the notice knows of any breach of this Agreement and its current
understanding of status of performance under this Agreement. A copy of any such
notice which is sent to Hospitals shall also be sent to the holder of any
institutional first trust deed encumbering the Property if such holder has made
written request for notice and provided the City with the holder's address for
notice purposes.
10. Annual Review; Notice. The City will, once every twelve (12) months
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 14
d-18..~
,
(
r.
....
,..
!
.....
during the term of this Agreement, pursuant to California Government Code Section
65865.1, undertake a periodic review of the parties' compliance with the terms
of this Agreement pursuant to the procedures set forth below. Hospitals shall
present information with respect to Hospitals' good-faith compliance with
Paragraph 9.1. In addition to the information provided by Hospitals in accord
with Paragraph 9.1, the City may request Hospitals to address additional issues
with respect to Hospitals' good-faith compliance with the terms of this
Agreement. The City.shall deliver no less than thirty (30) days' written notice
to Hospitals prior to any hearing of any requirement the City desires to be
addressed, and applicable staff reports, in a manner sufficient for Hospitals to
respond. Either party may address any requirement of this Agreement during the
review period. If at any time of review, an issue not previously identified in
writing pursuant to this Paragraph 9 is required to be addressed, the review at
the request of either party may be continued to afford sufficient time for
analysis and preparation. Such review by the the City may be conducted by the
City Manager..
10.1 Information to be Provided By Hospitals. Pursuant to
Government Code Sect ion 65865.1, Hospitals sha 11 have the duty to demonstrate its
good-faith compliance with the terms of this Agreement at each periodic review.
Hospitals' duty may be satisfied by the presentation to the City of: (i) a
written report identifying Hospitals' performance or the reasons for its
nonperformance or excused performance of the requirements of this Agreement, or
(ii) oral or written evidence submitted at the time of review.
10.1.1 The parties recognize that this Agreement and the
documents incorporated herein could be deemed to contain thousands of
requirements (i.e., construction standards, landscaping standards, et a1.), and
that evidence of each and every requirement would be a wasteful use of the
parties' resources. Accordingly, Hospitals shall be deemed to have satisfied its
duty to demonstrate compliance when it presents evidence of its good faith and
substantial compliance with any issues requested to be addressed by the City in
accordance with Paragraph 9, and substantia 1 compliance with the major provis ions
of the Existing Approvals. Generalized evidence or statements shall be accepted
in the absence of any evidence that such evidence is untrue.
. 10.2 Finding by the City During Annual Review Period that Hospitals
is in Default. If, during any annual review period, the City, on the basis of
substantial evidence, finds Hospitals has not in good faith with this Agreement,
it will give Hospitals thirty (30) days' notice of default pursuant to Paragraph
10.
10.3 Delay in Annual Review. The City's failure to review annually
the Hospitals' compliance with the terms and conditions of th~ Agreement shall
not constitute or be asserted by the City as a breach by Hospitals of any terms
of the Agreement.
11. Default. If either party defaults under this Agreement, the party
alleging such default will give the breaching party no less than thirty (30)
days' notice of default in writing. The notice of default will specify the
nature of the alleged default and, where appropriate, the manner and period of
time in which said default may be satisfactorily cured. During any period of
cure, the party charged will not be considered in default for the purposes of
kaiser19.wp
June 19, 1992
Kaiser Development Agreement
Page 15
d-\ ~...,2.1
(
..,.
....
.~
;
~
termination or institution of legal proceedings. If the default is cured, then
no default will exist and the noticing party will take no further action.
11.1 Public Hearing Required Prior to the Institution of Legal
Proceedings. After proper notice and the expiration of the cure period, the
noticing party to this Agreement, shall request hearings before the Planning
Commission and the City Council for a determination as to whether this 'Agreement
should be modified, suspended or terminated as a result of each default, prior
to the institution of litigation.
11.2 Waiver. Nothing in this Agreement shall be deemed to be a
waiver by either party of any right or privilege held by that party pursuant to
federal or state law, except as specifically provided herein. Any failure or
delay by a party in asserting any of its rights or remedies as to any default by
the other party will not operate as a waiver of any default or of any such rights
or remedies or deprive such party of its right to institute and maintain any
actions or proceedings which it may deem necessary to protect, assert or enforce
any such rights or remedies.
11.3 Remedies Upon Default. In the event of a default by either
party to this Agreement, the parties shall have the remedies of declaratory
relief, specific performance, mandamus, injunction and other equitable remedies.
Neither party shall have the remedy of monetary damages against the other except
as to obligations requiring the payment of money; provided, however, that the
prevailing party shall be entitled to an award of its reasonable attorneys' fees
and costs if they have offered prior to the inst itut ion of 1 it igaiton, and
continue, during the course of litigation, to meet and confer with the other
party to resolve in good faith th~ir differences.
11.4 Third Party Beneficiary Rights Upon Default. In the event that
Hospitals defaults in its performance under this agreement, its default shall not
be asserted by the City as a limitation on City's obligations to EastLake under
Paragraphs 6.5 and 13.8 herein; provided however, in the event of Hospitals'
default, City shall have a right to demand EastLake to fund the traffic analyses
and studies contemplated in Paragraphs 6.5.2 and. 6.5.4, to the extent not
performed or funded by Hospitals.
12. Modifications; Suspension; Termination.
12.1 Emergency Circumstances. If, as a result of specific facts,
events or circumstances, the City finds, following the procedures outlined in
this Section 11 and based upon the preponderance of a 11 evidence presented by the
parties, that a severe and immediate emergency threat to the health and safety
of the citizens of the City requires the modification or suspension of this
Agreement, the City will:
12.1.1 Notify Hospitals of (i) the initiation of the
City's determination process, and (ii) the reasons for the City's determination
and all facts upon which reasons are based;
12.1.2 Notify Hospitals in writing at least fourteen (14)
days in advance of the date, time and place of the hearing and forward to
Hospitals, a minimum of ten (10) days prior to the hearing, all documents related
kaiserl9.wp .
June 19, 1992
Kaiser Development Agreement
Page 16
~l p.>...l:t.
\
-,
--
,
,
.
to such determination and reasons therefor; and
12.1.3 Hold a hearing on the determination, at which
hearing Hospitals wi 11 have the right to address the City Counci 1. At the
conclusion of said hearing, the City Council may take action to suspend this
Agreement if, based upon the evidence presented by the parties, the City Council
finds that the suspension of this Agreement is required to avoid an immediate and
severe emergency threat to the health, safety and general welfare of the City;
12.1.4 Where the citizens of the City face a severe and
immediate emergency threat to their health and safety, the City may unilaterally
suspend the effectiveness of the Agreement for a period not to exceed the time
reasonably required for notice and a public hearing.
12.2 Change in State or Federal law or Regulations. If any state
or federal law or regulation enacted during the term of this Agreement or the
action or inaction of any other affected governmental jurisdiction precludes
compliance with one or more provisions of this Agreement, or requires changes in
plans, maps or permits approved by the City, the parties will act pursuant to
Paragraphs 11.2.1 and 11.2.2.
12.2.1 The party first becoming aware of such enactment
or action or inaction will provide the other party with written notice of such
state or federal law or regulation and provide a copy of such law or regulation
and a statement regarding its conflict with the provisions of this Agreement.
The parties will promptly meet and confer in a good-faith and reasonable attempt
to modify or suspend this Agreement to comply with such federal or state law or
regulation. A copy of any such notice which is sent to Hospitals shall also be
sent to the holder of any institutional first trust deed encumbering the Property
if such holder has the written request for notice and provided the City with the
holder's address for notice purposes.
12.2.2 Thereafter, regardless of whether the parties reach
agreement on the effect of such federal or state law or regulation, the matter
will be scheduled for hearing before the City Council no sooner than ten (10)
days following written notice of such hearing to Hospitals. The City Council,
~t such hearings, will determine the exact modification, suspension or
termination which is required by the federal or state law or regulation, if any.
Hospitals, at the hearing, will have the right to offer oral and written
testimony regarding any proposed action by the City. Any modifications,
suspension or termination are subject to judicial review.
12.3 Modification by Mutual Consent. This Agreement may be modified
from time to time, by the mutual consent of the parties only in the same manner
as its adoption by an ordinance as set forth in California Government Code
Sections 65867, 65867.5 and 65868, and Resolution 11933 of the City of Chula
Vista. Any modification that affects the rights of Eastlake as an express third
party beneficiary shall require the consent of Eastlake. The term "this
Agreement" as used in this Agreement will include any such modification properly
approved and executed.
12.4 Invalidation. If this agreement is invalidated following th~
Effective Date, and if Hospitals has applied for but is unable to obtain building \
kaiserl9.wp
June 19, 1992
Kaiser Development Agreement
Page 17
~18 ..;2..3
\f
l
",.
...:.
'"
'j
,
"
~permits with respect to the third phase of its development at the Property within
twenty years following the Effective Date, then the City shall pay $480,000 to
Hospitals.
12.5 Notice of Termination. In the event that this Agreement is
terminated pursuant to any of the methods authorized in this Article 1~, the City
shall prepare and record a Notice of Termination, containing a reference to this
Agreement and the effective date of any such termination in a form suitable for
recordation with the County of San Diego.
13 General Provisions.
13.1 Notices. All notices required by or provided for under this
Agreement shall be in writing and delivered in person or sent by certified mail,
postage prefaid, return receipt required, to the principal offices of the City
-ifI44lospita sand, ',ll:1el'e aJlJl1'9Jll'iate, EastLake. Not ice sha 11 be effective on the
date delivered in person or the date when the postal authorities indicate that
the mailing was delivered to the address of the receiving party indicated below: -
Kaiser Foundation Hospitals
393 East Walnut Street
Pasadena, CA 91188
Attn: Manager, Property Acquisition
The City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 92010
Attn: City Manager
EastLake Development Company
900 Lane Avenue, Suite 100
Chu1a Vista, CA 91914
Attn: Curt Stephenson
Such written notices may be sent in the same manner to such other persons and
addresses as either party may from time to time designate by mail.
13.2 Joint and Several Liability. If either party consists of more
than one legal person, the obligations are joint and several.
13.3 Severability. If any material provision of this Agreement is
held invalid, this Agreement will be automatically terminated unless within
fifteen (15) days after such provision is held invalid the party holding rights
under the invalidated provision affirms the balance of this Agreement in writing.
This provision will not affect the right of the parties to modify or suspend this
Agreement by mutual consent pursuant to Paragraph 11.3.
13.4 Recordation of Agreementj Amendments. All amendments hereto
must be in writing signed by the appropriate agents of the City and Hospitals,
in a form suitable for recording in the Office of the Recorder, County of San
Diego. Within ten (10) days of the date of this Agreement, a copy will be
recorded in the Official Records of San, Diego County, California. Upon
completion of performance of this Agreement or its earlier termination, a
kaiser19.wp
June 19, 1992
Kaiser Development Agreement
Page 18
~l ~..:2.t{
(.
statement evidencing said completion or termination, signed by the appropriate
agents of Hospitals and the City will be recorded in the Official Records of San
Oiego County, California.
13.5 Applicable Law. This Agreement will be construed and enforced
in accordance with the laws of the State of California.
~-.
13.6 Assignment. Hospitals may transfer its rights and obligations
under this Agreement if such transfer or assignment is made as part of a
transfer, assignment, sale or lease of all or a portion of the Property and the
purchaser intends to put the Property to a medical center use of the same or a
lesser extent and intensity as allowed in the Existing Approvals and the City
consents to said transfer. Said consent shall not be unreasonably withheld.
13.7 Term of Agreement. The term of this Agreement shall expire on
the first to occur of (a) Hospitals' completion of all three phases of its
development at the Property, or (b) twenty (20) years after the Effective Date.
13.8 Covenant of Good Faith and Fair Dealing. Neither party shall
do anything which shall have the effect of harming or injuring the right of the
other party to receive the benefits of this Agreement; each party shall refrain
from doing anything which would render its performance under this Agreement
impossible; and each party shall do everything which this Agreement contemplates
that such party shall do in order to accomplish the objectives and purposes of
this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement on the date
first above written.
"-
The City of Chula Vista, a municipal
corporation
By:
By:
KAISER FOUNDATION HOSPITALS, a California
non-profit public benefit corporation
By:
Hugh A. Jones,
Executive Vice-President
By:
Sandra H. Cox,
Assistant Secretary
,
~
kaiser19.wp
June 19, 1992
Kaiser Development Agreeme~t
Page 19
).,\ t:> .. 2..5'
Exhibit "A", Description of the Property
c
[Insert legal description]
kaiserl9.wp
June 19, 1992
.
\
Kaiser Development Agreement
Page 20
)lfO ...').b
--.....--..."
Recording Requested By: )
)
)
)
When Recorded Return to: )
)
The city of Chula Vista )
276 Fourth Avenue )
Chula Vista, CA 91910 )
Attn: city Attorney )
GRANT OF EASEMENT AND
DECLARATION OF COVENANT RUNNING WITH THE LAND
THIS GRANT OF EASEMENT AND DECLARATION OF COVENANT RUNNING
WITH THE LAND (the "Agreement") is made and entered into this
day of , 1992, by and between EastLake Development company;
a California general partnership consisting of corporations,
(IEastLake"), the City of Chula Vista, a municipal corporation
having charter powers (the "City"), and Kaiser Foundation
Hospitals, a California non-profit public benefit corporation
("Hospitals"), with respect to the following facts:
RECITALS
A. EastLake is the owner of that certain real property,
commonly known as Village Center I-North consisting of
approximately 17.3 acres and located within the City of Chula
Vista, California, as more particularly described in Exhibit "1"
attached hereto and incorporated herein ("VC I-North Property").
B. The city is the owner of certain property consisting of
streets and other improvements located in the city of Chula vista,
. California, and more particularly described in Exhibit "2" attached
hereto and incorporated herein: ~nd is herewith the arantee of an
easement over the VC I-North Prooertv from EastLake. for the
OUrDoses of enforcinq the covenants herein contained and orovided
as runninq with the land ("City Property").
C. EastLake and Hospitals have entered into that certain
Purchase Agreement and Escrow Instructions dated April 26, 1991 and
the First Amendment thereto dated March 2, 1992 (the "Purchase
Agreement") with respect to that certain real property situated in
the City of Chula vista, california, 'as more particularly described
in Exhibit "3" attached hereto and incorporated herein (the "Kaiser
Property") . Pursuant to the Purchase Agreement, EastLake has
conveyed fee title to the Kaiser Property to Hospitals concurrently
with the recordation of this Agreement.
" 'f
{;XH-18rr '5 . fP/I1AT
J;zvBUJ t1 /YJ YJt}f It/Nfl
6/26/92
;2..1 r3 ,,2.9
D. In conjunction with the acquisition of the Kaiser Prop-
erty, Hospitals applied to the City for various land use entitle-
ments. includina. but not limited to. an amendment to the East-
Lake I sectional Planning Area Plan ("SPA" and "SPA Amendment"),
approval of a Conditional Use Permit/Precise Plan and all related
discretionary approvals from the City afta e~ker ,e7e~nmeft~al
eft'6i~ies all as more fully described in the Final Suoolemental
Environmental ImoactRenort for the EastLake I Sectional Plannina
Area (SPA) Plan Amendmentl Kaiser Permanente Chula Vista Medical
Center. ErR #92-01. SCH # 92031049 ("FSErR"). at Section 1.1
thereof. ErR deseribea bele~ for the proposed Kaiser Permanente
Chula Vista Medical Center ("Medical .Center") (COllectively
referred to as the "E:PA MeftEilllefttEntitlements"). In addition,
Hospitals is seeking the approval of the City to a development
agreement ("Development Agreement") allowing the development of the
Medical Center. If aooroved and effective. t'l'he Development
Agreement will be recorded in the Official Records of .San Diego
County. EastLake will be an express third party beneficiary of
certain rights under the Development Agreement as defined therein.
E. The S~~ :~eftameft~ afta tke Development Agreement ~re7ide
eer~e.ift eft~i~lelfteftts (AnlLthe J1Entitlements") \.il.iek will,A. in part,A.
~re7iae feroermit the construction of the Medical Center and affect
future development on the Kaiser Property and other property within
the SPA owned by EastLake, including the VC-I North Property
("EastLake's Property"). Hospitals' Medical Center project is
divided into three (3) phases ("Phase I," "Phase II," and "Phase
III") all as more fully described in the SPA Amendment.
F. The E:l'A Ameftdll\eft'6, Enti tlements and ~ Development
Agreement are anticioated to comeeallle 1/ before the City Council
for firs~ reaaift' deliberation and oossible aooroval ("City
Approval") on June 30. 1992. The City will deliberate uoon
adootinaaae~tea Ordinance No. ____ on , 1992, approving
the Development Agreement.
G. City Approval of the Entitlements and the Develooment
Aareement was conditioned upon compliance with certain mitigation
measures, conditions, and exactions which must be implemented,
satisfied or paid prior to development of all or portions of the
Kaiser Property and EastLake's Property. one of which. Mitiaation
Measure No. 4.3.4.6. orovides that the Kaiser Permanente Medical
Center is conditioned to orohibit aooroval of the buildina oermit
for Phase III. unless the citv is satisfied that adeauate caoacitv
exists to accommodate the additional traffic bv one or any
combination of means. one of which was that the aoolicant obtain a
"Deferral Aareement" sufficient in the ooinion of the city to
obliaate the holder of riahts to nreviouslv aooroved develonment to
~
~/ I understand this agreement is to be executed and in place
prior to the first reading of the ordinance.
2
6/26/92
;2.1P.> ' '30
not aooly for buildina oermits for develooment which has been
included in the traffic studY in the FSEIR for the Pre-SR 125
coUdition. oroyidec;i that the city aarees that subtractina the
traffic imoacts from such deferred develooment eliminates the
sianificant traffic imoacts of Phase III identified for the Pre-SR
125 Condition. .
H. BY virtue of the aforereferenced Develooment Aareement.
citv and Hosoitals have aareed to recoanize this Grant of Easement
and Covenant Runnina with the Land. assumina it is executed.
delivered and recorded in the manner therein orovided. as an
adeauate and sufficient Deferral Aareement sufficient in the
ooinion of the City to obliaate the holder of riahts to oreviouslv
aooroved develooment otherwise exoected to aenerate 1. 251 P.M. Peak
Trios to not aoolv for buildina oermits for develooment which has
been included .in the traffic studY in the FSEIR and therein
attributed with 1.251 P.M. Peak Trios.
I. 11\ eePljaPle'kisn -.Ii'th 'the Sf 'ky appre-.~al, the eity eertified
the Ew."irSfllRent.al Impaat ReJ.3ert . ("EIR") ,repaE'ea lay l.ett.ie:ri
lfeIJ\~=fre aRa Asseeiates, Ins. (ease Be. 92 911 SOlI 1929319,(9),
da~ed , 1992. The EIR sets fer'th eertaiR 8Rtieipated
'treffis im19ae~saaseeia~ed \lit.h t.h~. SrA htleRgeJ\t aREI E'ela'tea
If! tigatiel\ Ueaaarea afts GeRa! tieJ\s fleeessary 1:.8 redl:1ee tllese
impaets te a level aeeept.aele te the eity. The ErR kas assamed
that de-;e.lefJm~Plt af all areas fer -n'hieh l\e-.l En'tit1emeBte aa-/e seeR
re;aestea iR the ~r~ Amenament \:ill ifterease ~he trip ,eftera~iaR
ra'te JaeysflB the rate that lias aas't:ll1led far laRd \:lee desigRatisRS
811a\181316 1:lRaer 'the ~Ph. The aRt.ieipat.ea afterRSSH psalt helir trips
C"PII Peale I1ear Trips") antlelpat.eEi 19:( the EIll. 'toe se gefterated lIftEler
the SPh l~eRament ha~e laeeR eet. ferth ift tfte EIR at. Table t 1, a
espy af -,Iaieh is at.taehea heret.e 8S Buhlsi tilt" aREI iReerperated
hereiR.
;r '" The cai t~_. s ^ppre~:al \:ae seREli tiefted lI,eR tke
idcntifieat.1eR af aaaitiaRal t~affis eapaeity 1:.e aseemmedate ~e
develepmsRt af the Jiee11eal SCAter aREI,'~r. this }"ljreem6ftt weles is
fer the pl:l%",ese af aefer%" ifUJ dc...:elepmeRt aR pertisRs af EaetL.alte' s
Preperty ,.ffileh ha'\-e dealt)RateEi lI~ppreVea p]:'ejeets". fer purpeees af
the eity's analysis af 8amulative traffle impaeta aREI applieatieR
af develepmcRt threshelEla \iRse]:' Rcse1'tltieR lIe" 133t€, E:eetieR 1999
af 1:.ke Sit}"'. e 11\:11\1811981 eese arut llRder tke EastL.alte I l?1:1Blie
Faeilitiee Fiftane1R! PlaR, dated FeJaryary 18, 1985",
K. Under present assumptions, 1,772 PM Peak Hour Trips are
necessary for development of all three phases of the Medical
center. EastLake is agreeing. bv virtue of this aareement. to
withhold develooment and a deferral on obtaining building permits
on VC-I North Property. The deferral of buildina on the VC-I North
Property will reduce PM Peak Hour Trips by 1,251.
3
6/26/92
;2..1 ~ - a I
NOW, THEREFORE, in consideration of the covenants. terms and
condi tions . herein contained. and in reliance on same to the
acknowledaed d~triment of the citv in Dermittina vestina of all
three Dhases of the Kaiser Medical Center. Eas~~aIEe ~eift' a ~ird
paF~Y heftefieiary af See~ieRg '.S, 19, 11.1, 12.3 8ft4 13.8 ~e ~ke
Ele\'elellllleft~ 1I.greellleft~ ("EastLaIEe Seveftaftts"), the parties agree as
follows:
1. EastLake's Covenants and Grant ~f Ease~en~. SUb1ect to
and condi tional upon the execution off ~ Jeftess2 and
recordation of the Development Agreement and EastLake' s rights
thereunder as an express third party beneficiary, EastLake agrees
to withhold develODment UDon. and to defer seeking building permits
with respect to... any imorovements. includina structures... located on
the VC-I North Property which property has an attributed 1...251 PM
Peak Trips as determined by reference to the EIR ("Covenant to
withhold Develooment"l. In connection with. and for the Duroose of
enforcina this covenant. EastLake herebY arants to city an easement
for liaht. air and view over all of the VC I North Pronertv which
easement shall be coextensive with. and shall exist for so lona as
the Covenant to Withhold Develooment shall remain in effect
accordina to the terms of this Aareement and EastLake's Third Partv
Beneficiary Riahts under the Develooment Aareement.
~ Covenant of Good Faith and Fair Dealina. Neither Dartv
shall do anvthina which shall have the effect of harmina or
injurina the riaht of the other Dartv to receive the benefits of
this Aareement: each oarty shall refrain from doina anvthina which
would render its oerformance under this Aareement imoossible: and
eac9 Dartv shall do everythina which this Aareement contemolates
that such oarty shall do in order to accomolish the obiectives and
ourooses of this Aareement ("Covenant of Good Faith"l.
3. Termination of Covenant. Except as otherwise set forth
in the Development Agreement for the termination of this Aareement
or as may be agreed to by a recorded amendment of this Agreement
-executed by EastLake, Hospitals and the City, this Agreement and
EastLake's deferral obligation hereunder shall cease and terminate
on the earlier of (i) twenty (20) years after the date upon which
the Development Agreement is recorded in the Official Records of
San Diego County, (ii) the date on which the Development Agreement
terminates due to failure to satisfy the conditions to the
effectiveness thereof pursuant to Section 1.9 of the Development
Agreement, (Hi) the Elate eft ,:fiieh the Ele...elelllReftt AlJreellleftt
'termiPlates. prier te fall perter_aRea af t.he EaetLalte Ge":eft8J\t;.s31
2/ We can't guarantee effectiveness in this document.
~/ It was a major point with us inhouse that the term of this
agreement should be limited not by time, but by roadway capacity.
We begrudgingly conceded that we may take the risk on a 20 year
4
6/26/92
;J...I f.b - 3..l.
t _._..~...._~
er (iv) the date on which 1.251 P.M. Peak Trios has been certified
bv the citv as havina been reallocated to EastLake oursuant to the
nrovisions of ~fte eeRai~ieftB fer ~ermiHa~ieft er ~kia ^gree.eR~ se~
fart-a ~1I section. 6.5....:z.. of the Development Agreement.&. have lBeell
Upon any such termination, the parties aqree to
execute all documents and take all other actions reasonably
necessary to remove the affect of this Agreement on title to the
VC-I North property.
4. Covenant Runnina with Land. It is ~he intention of the
oarties that this aareement shall run with the la~d and be bindina
uoon the successors and assians to the oarcels. The Parties aaree
that the orovisions of this Aareement touch and concern the
Parcels. All of the provisions, agreements, rights, powers,
covenants, conditions, restrictions and obligations contained in
this Agreement shall be perpetual, shall be binding upon and shall
inure to the benefit of the parties hereto, their respective heirs,
executors, administrators, successors, grantees, assigns, devisees,
representatives, lessees and all other persons acquiring the VC-I
North Property, the City Property or the Kaiser Property
(collectively, the "Parcels") or any portion thereof, or any
interest therein, whether by operation of law or in any manner
whatsoever. All of the provisions of this Agreement shall be
covenants running with the land pursuant to applicable law,
including, but not limited to Section 1468 of the California Civil
Code. It is expressly agreed that each covenant to do or refrain
from doing some act on the VC-I North Property hereunder (i) is for
the benefit of the city Property and the Kaiser Property and is a
burden upon the VC-I North Property, (ii) runs with the Parcels and
(iii) shall benefit or be binding upon each successive owner during
its ownership of each Parcel, or any portion thereof, and each
owner having an interest therein derived in any manner through any
owner of any Parcel or any portion thereof. The oarties further
aaree that in the event that a court ofcomoetent iursidiction
determines that this aareement and the covenants herein contained.
do not. for anv reason. run with the land. it is an aoorooriate
term. This clause would provide, however, that if the
Development Agreement terminates in the 7th year say because
Kaiser was able to get some other developer to defer 521 more
trips, builds Phase III and vests, that this covenant to withhold
development would terminate, and even though sufficient capacity
may not be added to the roadway system, EastLake could "dump"
extra-capacity traffic from the VC I North Property.
i/ If there is to be a substitution of Vicinity Property under.
Section 6.5.8, there will be a separate agreement impressing it
with a similar covenant and easement, and releasing this one.
Furthermore, it is otherwise provided in the Development
Agreement, and is covered by the first sentence.
5
6/26/92
7-\ ~ .. '3.3
remedv for a court of eauitv to enforce the obliaation aaainst
successors and assians as an eauitable servitude. The narties
aaree that this Aareement bas a leaitimate and reasonable social
DurDose to wit: to Drevent the deterioriation of the aualitv of
life of the residents of Chula vista bv reducina the risk of
adverse traffic conaestion. The Darties aaree that this document
should not be strictlv construed aaainst the citv and Kaiser as the
owners of the benefitted DrODertv.
5. Recordation. This Agreement shall become effective and
binding upon the parties and their respective successors-in-
interest in accordance with the provisions contained herein upon
recordation of this Agreement in the Office of the County Recorder
of the county of San Diego, California.
6. Miscellaneous. This Agreement may be executed in
counterparts, each of which, taken together, shall be deemed to be
one fully executed original. Taie hgreemeftt, tsgether vith the
P'tlE'eh~se hgreelftsnt:. BRa the Be~JeleI'Ble:Flt ~greeJ8el\'6, eSRtai1'\ ~e
&fttire agreeHlefl'6 eet:.'tleeR the parties pertaiRi", te the s\llajeet
matter heres!. All prior and contemporaneous agreements, repre-
sentations, negotiations and understandings of the parties hereto,
whether oral or written, are hereby superseded.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date first set forth above.
EastLake:
EastLake Development Company, a
California partnership
consisting of corporations
By:
Its:
By:
Its:
City:
The City
municipal
chartered
of Chula Vista, a
corporation having
powers
By:
Its:
By:
Its:
6
6/26/92
;2.tB.3~
Hospitals:
Kaiser Foundation Hospitals, a
california non-profit or public
benefit corporation
By.:
Its:
By:
Its:
C:\DMS\RJB.DIR\7053979.~
7
6/26/92
~Il?>- :s
EXHIBIT 1
North Property /
/
EXHIBIT 2
EXHIBIT 1
21B-3h