HomeMy WebLinkAboutRDA Packet 1999/06/22 TUESDAY, JUNE 22, 1999 COUNCIL CHAMBERS
6:00 P.M. PUBLIC SERVICES BUILDING
(iMMEDIATELY FOLLOWING THE CITY COUNCIL MEETING)
ADJOURNED JOINT MEETING OF THE REDEVELOPMENT AGENCY/CITY COUNCIL
OF THE CITY OF CHULA VISTA
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1. ROLL CALL Agency/Council Members Davis Q, Moot El, Padilla El, Salas Q, and ChaiflMayor Horton El
(Items 2-5)
(WU[ be voted on immediately following the Council Consent Calendar during the City Council meeting)
The staff recommendations regarding the following item listed under the Consent Calendar will be enacted by the Agency
by one motion without discussion unless an Agency member, a member of the public or City staff requests that the item be
pulled for discussion, lf you wish to speak on one of these items, please fill out a "Request to Speak Form" available in
the lobby and submit it to the Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. Items pulled
from the Consent Calendar will be discussed after Acilon Items. Items pulled by the public will be the first items of
business.
2. APPROVAL OF MINUTES: May 25, 1999 (City Council/Redevelopment Agency)
3. AGENCY APPROVING THE AMENDED AND RESTATED AGREEMENT BETWEEN
~ CITY OF CHULA VISTA, REDEVELOPMENT AGENCY OF THE CITY OF
COUNCIL CHULA VISTA, AND CHULA VISTA BAYFRONT CONSERVANCY TRUST
RESOLUTION 19~}94 FOR A LEASE, LOAN, AHD OPERATING AGREEMENT FOR THE CHULA
VISTA NATURE CENTER; AND AUTHORIZING THE MAYOR TO
EXECUTE SAID AGREEMENT-The Lease, Loan and Operating Agreement for the
Chula Vista Nature Center expired on July 25, 1997. Although a committee of the
Bayfront Conservancy Trust is continuing to work with the City Attorney to make various
substantive changes to the agreement requiring additional research and discussion,
some changes have been incorporated at this time which serve to re-establish the terms
and conditions for the relationship between the parties in regards to the lease, loan and
operation of the Chula Vista Nature Center. (Nature Center Director)
Staff Recommendation: Agency/Council adopt the resolution.
4. AGENCY APPROVING A 180-DAY EXTENSION TO THE CHRISMATr SEMI.
~,[L~s~L~L]~ EXCLUSIVE NEGOTIATING AGREEMENT FOR THE DEVELOPMENT OF
PROPERTY LOCATED AT THE NORTHWEST CORNER OF THIRD
AVENUE AND H STREET-On 6/16/98, the Agency approved a Semi-Exclusive
Negotiation Agreement (SENA) with the Chrismatt Corporation for the development of
property located at the northwest corner of Third Avenue and H Street. Additional time
will be necessary for staff to evaluate a financial analysis of the project and negotiate
terms and conditions for a Disposition and Development Agreement for presentation to
the Agency; therefore, an extension to the SENA is requested through December 17,
1999. (Community Development Director)
Staff Recommendation: Agency adopt the resolution.
"1 declare under penelty of perjury that I em
ell~Plo',ed by the City ot q.h:l'~ ~lla,~a in the
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this Ageflda/~c,'ice On
AGENDA -2- JUNE 22, 1999
5. AGENCY APPROVING A DEFERRAL AGREEMENT BETWEEN THE CITY OF CHULA
fu~t~&Y. TJ~L~b~l VISTA AND THE OTAY WATER DISTRICT FOR PAYMENT OF
DEVELOPER IMPACT FEES FOR THE VETERANS HOME PROJECT AND
AUTHORIZING PAYMENT OF THE FIRST INSTALLMENT OF $26,400--
On 4/27/99, the Agency approved a resolution to reimburse the State Department of
Veterans Affairs for development impact fees imposed by the Otay Water District for the
Veterans Home Project. At that time, the staff report outlined the need to reimburse the
State and discussed the terms and conditions of a deferral agreement to pay the balance
over a 10-year period.
Staff Recommendation: Agency adopt the resolution.
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This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within the
Agency's jurisdiction that is no~t an item on this agenda. (State law, however, generally prohibits the Redevelopment
Agency from tala'ng action on any issues not included on the posted agenda.) lf you wish to address the Agency on such a
subject, please complete the "Request to Speak Under Oral Communications Form" available in the lobby and submit it to
the Secretary to the Redevelopment Agency or City Clerk prior to the meeting. Those who wish to speak, please give your
name and address for record purposes and follow up action.
The fallowing items have been advertised and/or posted as public hearings as required by law. If you wish to speak to any
item, please fill out the "Request to Speak Form" available in the lobby and submit it to the Redevelopment Agency or the
City Clerk prior to the meeting.
6. ~ TO CONSIDER THE SALE OF SPACE 35 AT ORANGE TREE
MOBILEHOME PARK
AGENCY AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO
FF~K~LQ~I~ EXECUTE A PURCHASE CONTRACT AND RELATED DOCUMENTS FOR
SPACE 35 AT ORANGE TREE MOBILEHOME PARK-- In NoYember 1987,
Orange Tree Mobilehome Park converted to resident ownership. The Agency assisted
the residents in pumhasing their park. At that time, 29 residents did not wish to purchase
their space, and the Agency agreed to purchase these spaces. The residents who did
not purchase their space remained as renters. The Agency's desire is to sell these
spaces as new homebuyers move into the park. The Agency currenUy owns 12 spaces,
having sold 17 spaces. The Agency has received an offer to purchase Space 35 from
the currentoccupant. (Director of Community Development)
Staff Recommendation: Agency adoptthe resolution.
7. ~ PURSUANT TO HEALTH AND SAFETY CODE SECTIONS 33431, 33433,
33444.6 AND 33000 ET. SEC~ TO CONSIDER THE MERITS OF THE
SALE OF REDEVELOPMENT AGENCY PROPERTY AT 350-360 BAY
BOULEVARD, INDUSTRIAL FINANCING ASSISTANCE, AND
ACQUISITION BY EMINENT DOMAIN Of THE RADOS COMPANIES'
PROPERTY AT 780 F STREET FOR THE BFG RELOCATION PROJECT
Staff Recommendation: That the Agency/Council continue the public hearing to the
meeting of June 29, 1999.
AGENDA -3- JUNE 22, 1999
8. ~ TO CONSIDER A DISPOSITION, DEVELOPMENT, AND HOUSING
COOPERATION AGREEMENT FOR AN ELEVEN (11) UNIT
TRANSITIONAL HOUSING PROJECT, KNOWN AS TROLLEY TRESTLE--
South Bay Community Services has submitted an Affordable Housing Review Application
to the Community Development Department for the development of an 11-unit
transitional housing project for young adults who have completed the County of San
Diego Foster Care Program. The project is to be known as Trolley Trestle and is located
at 746 Ada Street within the Southwest Redevelopment Area of Chula Vista.
Staff Recommendation: Agency/Council adopt the resolution. 4/Sths Vote Reouired
AGENCY APPROVING A DISPOSITION, DEVELOPMENT AND HOUSING
~ COOPERATION AGREEMENT AND RELATED DOCUMENTS WITH
COUNCIL SOUTH BAY COMMUNITY SERVICES FOR THE DEVELOPMENT OF AN
~ ELEVEN (11) UNIT TRANSITIONAL HOUSING DEVELOPMENT FOR
FOSTER CARE GRADUATES, KNOWN AS TROLLEY TRESTLE, LOCATED
AT 746 ADA STREET INCLUDING: (A) A $300,000 RESIDUAL
RECEIPTS LOAN FROM THE REDEVELOPMENT AGENCY'S LOW AND
MODERATE INCOME HOUSING FUNDS; (B) A $167,600 RESIDUAL
RECEIPTS LAND LOAN FROM THE CITY'S HOME FUNDS; (C) PROJECT
DESIGN PLANS; AND (D) A 38 PERCENT DENSITY BONUS AND A
REDUCTION IN REQUIRED PARKING; ADOPTING AN ADDENDUM 1'O
NEGATIVE DECLARATION IS-93-07B; AND APPROPRIATING
$300,000 FROM THE REDEVELOPMENT AGENCY'S LOW AND
MODERATE INCOME HOUSING SET-ASIDE FUND THEREFOR
9. DIRECTOR'S REPORT(S)
10. CHAIR(S)
11. AGENCY MEMBER COMMENTS
The meeting will adjourn to a closed session and thence to an Adjourned Joint Redevelopment Agency/City Council/Housing
Authority Meeting on June 29, 1999 at 6:00 p.m. in the City Council Chambers.
AGENDA -4- JUNE 22, 1999
Unless Agency Counsel, the Executive Director, or the Redevelopment Agency states otherwise at this time, the Agency will
discuss and deliberate on the following item(s) of business which are permitted by law to be the subject of a closed session
discussion, and which the Agency is advised should be discussed in closed session to best protect the interests of the City.
The Agency is required by law to return to open session, issue any reports of final ac~on taken in closed session, and the
votes taken. However, due to the typical length of time taken up by closed sessions, the videotaping will be terminated at
this point in order to save costs so that the Agency's return from closed session, reports of final action taken, and
adjournment will not be videotaped. Nevertheless, the report of final action taken will be recorded in the minutes which
will be available in the Office of the Secretary to the Redevelopment Agency and the City Clerk's Office.
12. CONFERENCE WITH REAL PROPERTY NEGOTIATOR --Pursuant to Government Code Section 54956.8
Property: 340-368 Bay Boulevard (5 pamels totaling 3.65 acres):
567-022-35 340 Bay Boulevard 1,02 acres
567-022-17 350 Bay Boulevard 0,65 acres
567-022-31 360 Bay Boulevard 0.73 acres
567-022-33 364 Bay Boulevard 0.63 acres
567-022-28 368 Bay Boulevard 0.62 acres
Negotiating Parties: City/Redevelopment Agency (Chris Salomone); San Diego Unified Port District; B.F. Goodrich
Under Negotiations: Purchase/lease terms and conditions
MINUTES OF AN ADJOURNED MEETING OF THE REDEVELOPMENT AGENCY
AND THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA
May 25, 1999 6:00 P.M.
An Adjourned Meeting of the Redevelopment Agency and the City Council of the City of Chula Vista
was called to order at 6:30 p.m., immediately following the City Council meeting, in the Council
Chambers located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California.
CALL TO ORDER
1. ROLL CALL:
PRESENT: Agency/Council Members Davis, Moot, Padilla and Deputy Mayor Salas
ABSENT: Chair/Mayor Horton, who was out of town on City business
ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/City Attorney
Kaheny, City Clerk Bigelow
2. APPROVAL OF MINUTES of May I I and May 18, 1999 (City Council/Redevelopment
Agency meetings)
ACTION: Agency/Councihnember Davis moved to approve the minntes of the joint City Council
and Redevelopment Agency meetings of May I1 and May 18, 1999
Agency/Councilmember Padilla seconded tile motion, and it carried 4-0.
ORAL COMMUNICATIONS
Ms. Carolyn Butler, 97 Bishop Street, accused the Agency ofwrongfifl practices and stated that the
developer of east Chula Vista is trying to take over tile entire county.
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
3. PUBLIC HEARING TO CONSIDER THE SALE OF SPACE 129 AT ORANGE TREE
MOBILEHOME PARK
In November 1987, Orange Tree Mobilehome Park converted to resident ownership. The
Agency assisted the residents in purchasing their park. At that time, 29 residents did not wish
to purchase their space, and the Agency agreed to purchase these spaces. The residents who
did not purchase their space remained as renters. Tile Agency's desire is to sell these spaces
as new homebuyers move into tile park. The Agency currently owns 13 spaces, having sold
16 spaces. The Agency has received an off'er to purchase Space 129 from the current
occupant. Staffrecommends that the Agency adopt a resolution authorizing execution ora
purchase contract. (Director of Community Development)
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES (Continued)
Notice of the hearing was given in accordance with legal requirements, and the hearing was held on
the date and at the time specified in the notice.
Deputy Mayor Salas opened the public hearing and asked if anyone from the audience wished to
speak. There was no response, and Deputy Mayor Salas closed the hearing.
ACTION: Deputy Mayor Salas offered Agency Resolution No. 1623, authorizing the
Community Development Director to execute a purchase contract and reIated
documents for space 129 at Orangetree Mobilehome Park. The motion carried 4-0.
ACTION ITEMS
4, STAFF RECOMMENDATIONS FOR THE ELIMINATION OF CERTAIN BOARDS,
COMMISSIONS AND COMMITTEES
In October 1998, the Council asked staffto look at current functions of the City's Boards and
Commissions to determine if any should be consolidated or eliminated as part of an ongoing
effort to streamline City operations and increase staff efficiency. Staff presented
recommendations that would reduce staff workload, City expenses, space demands on City
~neeting facilities, and certain redundancies, stating that the proposed actions would not result
in the curtailment of essential activities. (City Manager)
Stephen R. Mends, Veterans Advisory Commissioner, stated that the Commission provides a
valuable, low cost service to the community. He indicated that the Commission would be willing to
dialog with staffregarding the future of the Commission.
Donna Daum, member of the Commission on Aging~ mentioned that the report given to Council did
not reflect Commissioners' comments or concerns. She also stated that the Commission would dialog
with staff regarding the future of the Commission.
Agency/Councilmember Moot felt that the burden should be placed on the City to demonstrate the
need to eliminate the Commission on Aging and the Veterans, Child Care and Human Relations
Commissions.
Agency/Councilmember Davis expressed concern about the proposed elimination of the Youth
Commission. Assistant Police ChiefZoll explained that it has been difficult to locate members
willing to serve, the meetings are poorly attended, and other avenues are available for youth to
participate in and provide input to the community.
ACTION: Agency/Councilmember Padilla moved to approve staff recommendations to: (1)
direct staff to bring back specific resolutions and/or ordinances for the discontinuance
of the Otay Valley Road Project Area Committee, Youth Commission and Crime
Prevention Commission; (2) establish a dialog to determine whether the Veterans
Commission, Child Care Commission, Human Relations Commission and Commission
on Aging will continue under the aegis of the City, with a report and discussion to
occur in January 2000; and (3) periodically review the roles and functions of the
remaining boards and commissions to insure their relevancy.
Page 2 - Council/RDA ~ ...~ 05/25/99
OTHER BUSINESS
5. DIRECTOR'S REPORTS
There were none.
6. CHAIR'S REPORTS
There were none.
7. AGENCY/COUNCIL/AUTHORITY MEMBER COMMENTS
There were none.
CLOSED SESSION
8. CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO
GOVERNMENT CODE SECTION 54956.8
Property: 340-368 Bay Boulevard (5 parcels totaling 3.65 acres):
567-022-35 340 Bay Boulevard 1.02 acres
567-022-17 350 Bay Boulevard 0.65 acres
567-022-31 360 Bay Boulevard 0.73 acres
567~022-33 364 Bay Boulevard 0.63 acres
567-022-28 368 Bay Boulevard 0.62 acres
Negotiating Parties: City/Redevelopment Agency (Chris Salomone); San Diego Unified
Port District, BF Goodrich
Under Negotiation: Purchase/lease terms and conditions
Closed Session was canceled.
ADJOURNMENT
At 6:58 p.m., Vice Chair/Deputy Mayor Salas adjourned the meeting to an Adjourned
Redevelopment Agency Meeting on June 8, 1999 at 6:00 pm. (immediately l-bllowing the City
CounciI meeting), noting that the Regular Meeting of the Redevelopment Agency on June 1~' has
been canceled.
Respectfully submitted,
Susan Bigelow, CMC/AAE, City Clerk
Page 3 - Council/RDA t~, ""J 05/25/99
JOINT
REDEVELOPMENT AGENCY/CITY COUNCIL
AGENDA STATEMENT
Item _,.,~__
Meeting Date: 06122199
ITEM TITLE: Agency Resolution /6 ~0 Council Resolution J~''~''O~'~ Approving the
Amended and Restated Agreement between City of Chula Vista,
Redevelopment Agency of the City of Chula Vista, and Chula Vista Bayfront
Conservancy Trust for a Lease, Loan, and Operating Agreement for the Chula
Vista Nature Center; and Authorizing the Mayor to Execute Said Agreement.
SUBMITTED BY: Nature Center Directo~/ .,~ll
REVIEWED BY: Executive Director'~~
(415thc Vote: YesmNo X)
The Lease, Loan and Operating Agreement for the Chula Vista Nature Center expired on July 25,
1997. Although a committee of the Bayfront Conservancy Trust is continuing to work with the City
Attorney to make various substantive changes to the agreement requiring additional research and
discussion, some changes have been incorporated at this time which serve to re-establish the
terms and conditions for the relationship between the parties in regards to the lease, loan and
operation of the Chula Vista Nature Center.
RECOMMENDATION: That the Agency/Council approve the resolution amending and restating
the Lease Loan and Operating Agreement for the Chula Vista Nature Center.
BOARDSICOMMISSlONS RECOMMENDATION: The Bayfront Conservancy Trust approved the
proposed agreement in substantially the form presented to allow for such minor modifications or
corrections as may be approved by the City Attorney in the course of its presentation to and
approval by the Redevelopment Agency/City Council.
DISCUSSION:
The Lease, Loan and Operating Agreement for the Chula Vista Nature Center expired on July 25,
1997. After the BCT Board had been made aware that the agreement had expired and that the
Agreement would have to be restated and reenacted, a committee was appointed by the Board to
work with the City Attorney to identify areas in the agreement where other changes should be made
as well.
The City Attorney's initial review of the agreement's provisions discovered several problem areas
where changes should be addressed. While several long-term outstanding issues were pointed-
out which eventually will need to be resolved, it was suggested in the short term, that the
agreement be brought up to date and that changes be immediately included which clarify the legal
status of the Nature Center volunteers (discussed below).
Currently, Nature Center volunteers are not designated as Ci_ty volunteers and insurance coverage
is provided by a policy separate from the City. Because they work under the direction and control
of City Staff, it is the City Attorney's recommendation that the Nature Center volunteers be
Meeting Date: 6/22199
Page: 2
designated as City of Chula Vista volunteers. This would make the volunteers eligible for Workers'
Compensation and would afford the volunteers the same legal protections as City of Chula Vista
employees. This would also remove the necessity for separate insurance coverage and would limit
claims by Nature Center volunteers to remedies available under the Workers' Compensation
system.
The agreement proposed at this time also includes the following changes:
· Incorporation of the amended elements from the July 25, 1995 First Amendment which
involved minor language changes and dollar amount updates;
· Name change form "Nature Interpretive Center" to ~Chula Vista Nature Center";
· Term to expire 2 years from the effective date of the agreement;
· Updated loan information as of June 30, 1998;
· Provision to allow the previous agreement's terms and conditions to govern the parties'
respective rights for the period not covered by formal agreement during the period since
July of 1997.
The BCT committee will continue to work with the City Attorney to resolve outstanding issues and
will return for Agency/Council approval at a later date.
FISCAL IMPACT: The direct fiscal impact associated with the approval of this agreement will be
minimal resulting from an annual savings of approximately $600 from cancellation of the Nature
Center volunteer insurance policy, offset by the Nature Center's participation in the City's Workers'
Comp pool expenses. Because, however, injury claims will now be limited to the Workers' Comp
system, the City's potential exposure is dramatically reduced.
AGENCY RESOLUTION NO.
and
COUNCIL RESOLUTION NO.
JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
APPROVING THE AMENDED AND RESTATED AGREEMENT BETWEEN
CITY OF CHULA VISTA, REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA, AND CHULA VISTA BAYFRONT
CONSERVANCY TRUST FOR A LEASE, LOAN, AND OPERATING
AGREEMENT FOR THE CHULA VISTA NATURE CENTER; AND
AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT
WHEREAS, the Lease, Loan and Operating Agreement for the Chula Vista Nature
Center expired on July 25, 1997; and
WHEREAS, although a committee of the Bayfront Conservancy Trust is continuing
to work with the City Attorney to make various substantive changes to the agreement requiring
additional research and discussion, some changes have been incorporated at this time which serve
to re-establish the terms and conditions for the relationship between the parties in regards to the
lease, loan and operation of the Chula Vista Nature Center.
NOW, THEREFORE, BE IT RESOLVED the City Council and Redevelopment Agency
of the City of Chula Vista do hereby approve the Amended and Restated Agreement between the
City of Chula Vista, Redevelopment Agency of the City of Chula Vista, and Chula Vista Bayfront
Conservancy Trust for a Lease, Loan, and Operating Agreement for the Chula Vista Nature Center,
in substantially the form presented to allow for such minor modifications or corrections are may
be approved by the City Attorney in the course of its presentation to and approval by the
Redevelopment Agency/City Council, a copy of which shall be kept on file in the office of the City
Clerk.
BE IT FURTHER RESOLVED that the Mayor/Chair is hereby authorized and directed
to execute said agreement on behalf of the City/Redevelopment Agency of the City of Chula Vista.
Presented by Approved as to form by
Chris Salomone Jo~.,.~. Kaheny ~/
Director of Community Development /~Attorney and Agenc,~ounsel
[Hgshared/COMMOEV/nic agr I June 7, 1999 (4:41pm)]
RESOLUTION NO. 80
RESOLUTION OF THE BAYFRONT CONSERVANCY TRUST
APPROVING THE AMENDED AND RESTATED LEASE, LOAN
AND OPERATING AGREEMENT BETWEEN THE CITY OF
CHULA VISTA, THE REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA, AND THE BAYFRONT CONSERVANCY
TRUST FOR A LEASE, LOAN AND OPERATING AGREEMENT
FOR THE CHULA VISTA NATURE CENTER.
The Bayfront Conservancy Trust does hereby resolve as follows:
WHEREAS, the City of Chula Vista, the Redevelopment Agency of the
City of Chula Vista and the Bayfront Conservancy Trust ("Parties") entered into an
agreement ("Original Agreement") for a lease, loan and the operation of the Chula
Vista Nature Center on May 4, 1993; and
WHEREAS, the original agreement expired on July 25, 1997; and
WHEREAS, the proposed Lease, Loan and Operating Agreement
("Proposed Agreement") re-establishes the terms and conditions for the relationship
between the Parties in regards to the lease, loan and operation of the Chula Vista
Nature Center.
NOW, THEREFORE, BE IT RESOLVED that the Bayfront Conservancy
Trust hereby approves the Proposed Agreement in substantially the form presented
with such minor modifications or corrections as may be approved by the City
Attorney in the course of its presentation to and approval by the City of Chula Vista
and the Redevelopment Agency of the City of Chula Vista.
Presented by:
Da~ydel D. Beintema
Executive Director
SIGNATURE PAGE TO RESOLUTION #80
PASSED AND ADOPTED by the Bayfront Conservancy Trust on the 26th day of
May, 1999, by the following vote, to-wit:
AYES: 8
NOES: 0
ABSENT: 0
APPROVED:
Shirley Horton
Chair
Mayor, City of Chula Vista
ATTEST:
Daniel D. Beintema
Executive Director
Amended and Restated
Tkrcc Part~' Agreement
Between
City of Chula Vista,
Redevelopment Agency of the City of Chula Vista, and
Chula Vista Bayfront Conservancy Trust
for a Lease, Loan, and Operating Agreement
for the Chula Vista Nature T~ ..... ~..
...... ~ ..... o Center
This Agreement, is entered into
.......... on ~, and e ec ve as o
~ ............. , 1999 "Effec ve Date" is
executed between the City of Chula Vista ("City"), a municipal
corporation of the State of California, the Redevelopment Agency
of the City of Chula Vista ("Agency"), a political subdivision of
the State of California, and the Chula Vista Bayfront Conservancy
Trust ("BCT"), a California non-profit corporation, for a lease,
loan, and operating agreement for the Chula Vista Nature
...... ~l~e Center ("~IC") ("Nature Center"); and is made with
reference to the following facts:
Whereas, Agency warrants that Agency is the owner of the
Nature T~ ..... ~ ~ ,
...... ~ .... re Center ~ ..... ~") building generally located as
described in Exhibit A hereto; and
Whereas, Agency owns a grant of easement to the property on
which the NIC Nature Center is sited and a License for Access and
Utility Line Purposes for the NIC Nature Center, as described in
Exhibit B hereto; and
Whereas, the BCT was incorporated as a non-profit public
corporation to oversee the NIC Nature Center and to implement the
City's Local Coastal Plan's environmental management provisions,
including, but not limited to: preserving land for scientific,
ecological, recreational, scenic and open space opportunities;
engaging in the restoration, enhancement and preservation of the
Sweetwater Marsh; receiving and holding dedications of land, and
increasing public knowledge of and support for natural resource
conservation; and
Whereas, Agency and BCT entered into a five year lease
("Lease") agreement on February 24, 1987 for the lease of said
NIC Nature Center property for the operation of the NIC Nature
Center. Said lease expired on February 24, 1992; and
Whereas, City and BCT entered into a cooperation agreement
("Cooperation Aqreement") on January 6, 1987 for the hiring of
City employees for the NIC Nature Center and for the provision of
other employee services by the City to the BCT; and
Whereas, the Lease and Cooperation Aqreement wer~
subsequently combined and extended pursuant to that certain Thre~
Party Aqreement dated May 4, 1993 ("Orlqinal Three Party
Agreement"); such agreement expired on July 25, 1997; and
~'~' ..... City ~ ~ .... ~ t~ ~ $! ~ ~ tc ~
Whereas ~ .... ~ ..... *- ^~: .~ ~, ....... ~ ...~.4~ the Oriqinal
Three Party Aqreement covers-ed all operating items, recognizesd
thcsc outstanding loans from the City and Aqenc¥ to the BCT and
allowsd for the parties to meet and confer on a loan repayment
schedule and future rental payments is desirable; and
Whereas, the parties desire to amend and restate the
Oriqinal Three Party Aqreement on the terms and conditions set
forth herein in order to continue the BCT's operation of the
Nature Center and to ~.~ .~=~...~..~ ~ ....... ~ provides a mechanism for the
City and Agency tc ccntinuc to make loans to the BCT to cover its
operating budget and other expenses until BCT secures independent
financing and to negotiate loan repayment terms and schedule.
NOW, THEREFORE, in consideration of their mutual promises,
2
the Parties agree as follows:
1. Lease Provisions.
1.1 Grant of Lease.
The Agency hereby leases the NIC Nature Center to BCT on the
terms and conditions herein set forth.
1.2. Purpose.
BCT shall use the premises solely for the following pur-
poses: maintaining and operating thereon a building and other
facilities for use as a Nature T~ ...... ~.
...... ~ ..... e Center for the
general public and for all reasonable and lawful purposes
incidental thereto. BCT agrees to use said premises solely for
the purposes herein stated.
1.3. Lease Term.
The lease shall be in effect for a period cf t'~:c ycarc
commencing with the Effective Date and expirinq on the date
fallinq two years thereafter ( , 2001) ("Expiration
It is the intent of the parties to negotiate a new lease prior to
~ °~ '~= pi
..~ .......... the Ex ration Date for an extended period of
time, when the long-term financing mechanisms for the NIC Nature
Center are clarified. At that time, a longer lease term may then
be established. In the event that a new lease or extension has
not been negotiated prior to the Expiration Date, unless
city/AGency elects to terminate this AGreement with thirtV (30)
written notice to the BCT, this Aqreement shall continue in
effect on a month-to-month basis.
1.4. Rental Payment.
BCT agrees to pay Agency as rental payment for the use of
the NIC Nature Center facilities the sum of $1 (one dollar) per
year for the initial two-year Lease Term. The negotiations
referenced in Section 1.3 will determine the rental payments for
any lease terms subsequent to April 30, 1995, and whether they
should be increased to fair market rental value.
1.5. Rights Granted.
In exchange for said rental payment, BCT is granted the
right to have exclusive use of the 12,000 square foot NIC Nature
Center building and 3.4 acres of grounds, operate the NIC Nature
Center, and determine the programming and scheduling of the NIC's
Nature Center's activities, consistent with any restrictions and
purposes provided herein, and subject to the provisions of
Section 1.6.
3
1.6. Subrental of NIC Nature Center Facility.
1.6.1. Subleases.
With the exception of Sections 1.6.2 and 1.6.3 listed
below, BCT shall not sublease any portion of the building or
premises without prior written approval of the City Council and
the Redevelopment Agency.
1.6.2. Conditions under which rentals will be allowed.
The BCT may rent out on a temporary basis all or
portions of the NIC Nature Center to various individuals or
groups, subject to the approval of the Executive Director of the
BCT, and policies established by the BCT Board of Directors for
such use, such that said rentals shall not impede or interfere
with the stated purposes or operations of the NIC Nature Center.
1.6.2.1. The entire NIC Nature Center, or a
portion thereof, may be rented on a day-to-day basis according to
the rates, policies and procedures established by the BCT.
1.6.2.2. The City and Agency shall have the right
to monitor said rentals and terminate any temporary rentals
should they interfere with the operations of the NIC Naturq
Center.
1.6.3. City and Agency Usage.
The City or Agency departments may use the NIC Nature
Center for official functions free of charge on a first-come,
first-served basis.
1.7. Liens.
BCT shall keep the premises, building and the property upon
which the building is situated, free from any liens arising out
of the work performed, materials furnished, or obligations
incurred by BCT. Failure to keep said premises free of liens
shall constitute a major breach of the covenants of this
Agreement and grounds for termination by City or Agency, at
City's or Agency's sole option.
1.8. Utilities.
BCT hereby covenants and agrees that all utilities and
services necessary for the use and occupation of said premises
shall be provided and paid for by BCT, including but not limited
to, water, sewer, electricity, gas, telephone and trash disposal.
1.9. Major Improvements.
4
BCT shall not make any major improvements or additions to
the NIC Nature Center and premises without prior written approval
of the City Manager or his/her representative. Said improvements
and additions shall include, but not be limited to, changes to
the exterior or interior, room additions, signs, new plantings
and new indoor or outdoor exhibits. Major is defined as
structural alteration or repair; or an expense of $5,000 or more
on a single interior or exterior project, such as a new exhibit.
1.10. Payment of Taxes.
BCT shall be liable for and shall pay, at least ten days
before delinquency, taxes levied against any personal property or
fixtures placed by BCT in or about the premises. Furthest, BCT
shall be obligated to pay any and all other taxes, including but
not limited to possessory interest tax, which may be from time to
time assessed upon the facility. The failure of BCT to pay such
levied tax, resulting in the establishment of a tax lien by any
taxing agency, shall constitute a major breach of this lease and
constitute grounds for recovery of possession by Agency, in
addition to immediate payment of such taxes, including any
interest or penalties incurred as a result of such failure.
1.11. Maintenance and Repair of NIC Nature Center.
1.11.1. BCT agrees to accept full responsibility for
the maintenance and repair of the ~IIC Nature Center, including
but not limited to, the interior and exterior of the building,
roof, exhibits, fixtures, furnishings, plumbing, utility systems,
landscaping, walkways, entryways and patios, temporary paved
parking lot at Bay Boulevard, water line to ~IC Nature Center,
septic tank, and sewer line to NIC Nature Center. BCT shall pay
all costs associated with future connection to said sewer line,
including capacity charges, connection fees and sewer permit fees
and ongoing sewer service charges. BCT shall also reimburse City
for its costs for installation of said sewer line.
1.11.2. BCT shall, at BCT's sole cost and expense,
keep the premises and every part thereof in good condition and
repair, comparable to other property held by the City and Agency,
such as the civic Center.
1.11.3. BCT shall, upon the expiration or sooner
termination of the Lease Term hereof surrender the premises to
the City and Agency in the same condition as when received. The
City and Agency shall have no obligations to alter, remodel,
repair, decorate, or paint the NIC Nature Center structures.
Agency and City reserve the right to enter and inspect the
premises, at reasonable times.
1.12. Destruction of NIC Nature Center.
In the event that the NIC Nature Center is destroyed in
whole or in part during the Lease Term, the BCT's interest shall
forthwith cease, and they shall not be entitled to either
occupancy or the proceeds of City or Agency insurance. The
Agency shall have the sole discretion to rebuild.
1.13. Eminent Domain.
In the event that the NIC Nature Center is condemned in
whole or in part, the lease shall terminate as to that part. BCT
shall be entitled to no portion of any proceeds of a condemnation
award.
1.14. Termination of the Lease Provisions.
1.14.1. Failure to Maintain Premises.
In the event that BCT fails to maintain and operate
said premises for the principal purpose for which the same are
hereby demised or fails to maintain reasonable and adequate
supervision and maintenance of said premises or further fails to
remedy any such faults or defects within 30 days after written
notice to do so from the City or Agency, then City or Agency may
elect to terminate and cancel the lease provisions of this
Agreement.
1.14.2. Default in Conditions.
All of the conditions and covenants contained herein to
be performed by BCT shall be deemed to be conditions of BCT's
right to possession of the premises, and if after 30 days written
notice to BCT, any default in said conditions is not remedied or
corrected or performed to City or Agency satisfaction, City or
Agency shall have the right to terminate and cancel this lease,
re-enter the premises, remove BCT and retake possession thereof.
1.14.3. Abandonment.
In the event that BCT abandons said premises, the City
or Agency may elect to terminate the lease provisions of this
Agreement. Abandonment is herein defined to include, but is not
limited to, any absence of BCT from the premises for fifteen (15)
days or longer while in default of any provision of this lease
except where excused by law or circumstances beyond BCT's
control.
1.14.4. Failure to Pay Rent, Pay for City Services or
Make Loan Repayments.
The City or Agency may terminate the lease provisions of
this Agreement should BCT fail to make any rental payment as set
forth in this Agreement, either in full or in part, or should BCT
6
fail to reimburse City for City employee services provided per
this Agreement, or should BCT fail to reimburse City or Agency
for loans made to the BCT pursuant to the provisions of this
Agreement. City and Agency in their sole discretion may agree to
permit payment of delinquent payments at the prevailing interest
rate, without prejudice to any other rights of the City or
Agency, including the right to institute termination proceedings.
1.15. Condition of Premises upon Termination.
In the event of termination of the lease provisions of this
Agreement, BCT shall leave said premises intact, with all
fixtures, exhibits, improvements, plantings, appurtenances,
documents, files and plans to remain, as they will be considered
property of the City and Agency until such time as the
outstanding loans referred to in Section 2 are repaid by the BCT
to the City and Agency.
1.16. Waiver of Claims or Compensation.
The BCT hereby expressly waives any and all claims for
damage or compensation arising under this Agreement, except as
set forth herein, in the event of such termination.
2. Loan Provisions.
2.1. New Loans to the BCT.
The BCT may need to seek loans from the City and Agency to
cover all or a portion of the cost of the NIC Nature Center
operating budget, and minor and major capital improvements. Said
loans, if granted, shall be approved upon the adoption of the
annual City and Agency budgets and shall carry interest rates as
set by the City Council for each fiscal year. A schedule for
repayment of said loans shall be established by mutual agreement
of all parties, and shall be incorporated as part of this
Agreement.
2.2. Recognition of Existing City and Agency Loans to the
BCT.
7
2.2.1. Updated Existing Loan Amounts.
As of June 30, 1995 1998, the outstanding loans to the
BCT, including interest accrued through June 30, ~ 1998, are
w~,~.~,~-.~- 2,688,218.00 from (~, ......... 3
$2,746,990.00 from the Agency, for a total of ~,~,~.~.~
$5,435,168.00. Attached as Exhibit ~ ~ is a table which lists
the annual loan amounts and interest accrued through June 30,
1995 1998. These loans shal continue to accrue interest during
the Loan Term at the interest rates as shown in Exhibit ~ C
subject to the provisions of Section 2.3. These amounts i~c{ude
the amounts shown in Sections 2.2.1 and 2.2.2 of the Original
Agreement.
2.3. Loan Repayment Schedule and Terms.
2.3.1. The parties agree to meet and confer in good
faith to develop a loan repayment schedule and terms prior to the
Expiration Date of the term of the Aqreement
~ ........ ~ ~ ~ ~ ....... ~ ("Loan Term") It is the intent
of the parties that this loan repa~ent schedule and terms be
determined when the long-term financing mechanisms for the ~;IC
Nature Center are clarified.
2.3.2. Should the parties fail to reach agreement
during said time, then the outstanding loans plus interest shall
be due and payable in full at the end o~ the twc year Loan Term.
2.3.3. Should good faith negotiations be completed
and agreement be reached on a repayment schedule and terms during
this two year Loan Term, then a new loan agreement will be
established prior to or at the end of the Loan Term.
2.3.4. The City and Agency stipulate that they will
accept a loan repa~ent schedule and terms as follows: a fully
amortized 30 year loan at an annual interest rate of 8%,
beginning in FYiDD5 96 as of the date of such aqreement. If the
8
BCT chooses, the City and Agency will allow the annual payments
to start at a lower amount and gradually increase by 5% per year,
with the present value of the graduated payments equal to the
fully amortized loan repayments with flat annual payments.
However, the parties by mutual agreement may formulate an
alternate repayment schedule and terms.
2.3.5 Loan Repayments Due and Payable upon Termination
or Breach
Should any portion of this Agreement be terminated
prior to expiration of the Loan Term, or if BCT is otherwise in
breach of its obligations hereunder, all outstanding loans and
interest as stated in this Section 2 shall become due and payable
immediately upon termination or breach.
3. Operatinq Provisions.
3.1. Operating Term.
Until the loans referenced in Section 2 are fully repaid, or
until termination of the Lease Term, whichever is later, the
provisions of this Section shall apply ("Operating Term").
3.2. City Manager.
The City Manager shall oversee the staff and operations of
the BCT, with input from the BCT Board of Directors.
3.3. City Finance Director.
The City Finance Director shall serve as Treasurer of the
BCT and oversee its expenditures, purchasing procedures, and
revenue accounting as detailed in Section 3.7 below. The City
Finance Director shall verify and report in writing as soon as
possible after the first day of January and July of each fiscal
year, to the BCT the amount of BCT funds the City holds, the
amount of receipts since the Director's last report, and the
amount paid out since the Director's last report. The City
Finance Director shall either make or shall contract with a
certified public accountant to make an annual audit of those
accounts and records of the BCT within 180 days after the end of
each fiscal year. All costs of the audit shall be borne by the
BCT and shall be charged against any unencumbered funds of the
BCT available for that purpose.
3.4. Annual Budget.
The City shall determine the annual operating budget and
capital improvement budget of the NIC Nature Center, with input
from the BCT Executive Director and BCT Board of Directors.
9
3.5. City Council.
The City Council of the City shall have the authority to
ratify or disapprove any future changes or amendments to the BCT
Articles and By-Laws, especially as these may affect this
Agreement.
3.6. Employees of BCT and other Employee Services.
3.6.1. Executive Director.
The Executive Director of the BCT shall be a non-civil
service, unclassified employee of the City. Said director shall
be supervised, hired and terminated by the City Manager i__n
accordance with the Charter of the city of Chula Vista, with
input when leqall¥ appropriate, from BCT Board of Directors. The
City shall determine the salary and benefits of said director.
The BCT Board of Directors shall conduct an annual performance
and salary review of the Executive Director every July and
forward the results to the City Manager. The City Manager shall
consider those findings in an annual performance and salary
review of the Executive Director. Said director shall be granted
City employee benefits as provided by the City for other similar
positions.
3.6.2. Other }]IC Nature Center Employees.
All other employees specifically assigned to the BCT
shall also be City employees in appropriate classifications. The
City Manager shall be the appointing authority for all BCT
employees and volunteers, and shall oversee the BCT staff. The
City shall determine the salaries and benefits of the BCT staff.
Said employees may be granted City employee benefits as provided
by the City for other similar classifications.
3.6.3. City Staff Services.
On request from the Executive Director of the BCT, the
City may provide services of such City officers and employees as
are necessary for the BCT to carry out its activities. Such use
by the BCT of City services shall be subject to the approval of
the City Manager and shall be payable by the BCT, through the
Staff Services account of the Operating Budget of the NIC Nature
Center.
3.6.4. Other City Employee Services..
The BCT may from time to time subject to the approval
of the City Manager, utilize other City employee services which
were not planned nor budgeted in the Operating Budget of the MIC
Nature Center. However, the BCT will be responsible for
payment, due and payable upon receipt of a City invoice.
10
3.7. Budgetary Approval, Accounting and Purchasing Approval.
3.7.1. Budgetary Approval.
3.7.1.1. The City Council, with input from the
BCT Executive Director and the BCT Board of Directors, shall
approve the annual BCT operating budget, and any capital
improvement projects (CIP) for the NIC Nature Center.
3.7.1.2. The BCT operating budget, which includes
the salaries and benefits of the ECT employees assiqned to the
BCT, and any CIPs for the BCT are the financial responsibility of
the BCT.
3.7.1.3. Any transfers of funds between accounts
in the BCT operating budget, regardless of the dollar amount,
must follow the City's standard budget transfer procedures.
3.7.1.4. The BCT may receive funds from new
grants, private or corporate donations which have not been
planned or previously accounted for by the City. The City
Finance Director shall appropriate said funds in special donation
accounts, outside of the BCT operating budget.
3.7.1.5. All expenditures from the special
donation accounts shall be subject to the following:
- The Executive Director of the BCT shall
obtain prior approval of the BCT Board of Directors for those
expenditures exceeding the Director's approval limits as
established by said Board.
- The Executive Director of the BCT shall
obtain prior approval of the City Manager to spend in excess of a
cumulative total of $2,500 for any project.
- For any specified or unspecified grants and
donations under $2,500, the Executive Director of the BCT shall
have discretion to spend those funds subject to the City's
purchasing procedures.
3.7.2. Accounting.
All revenues and expenditures of the BCT shall be
accounted for through the City's established accounting system.
3.7.3. Purchasing Approval.
The BCT shall use the City's purchasing system and
procedures, as outlined in Section 2.56, Purchasing of Supplies,
Services and Equipment, of the City Code, when spending funds in
all cases, including expenditures from its operating budget,
11
capital improvement project budget, and special donation
accounts. The single exception to said procedures is that the
City Manager, rather than the City Council, shall approve any
purchases for the BCT that would normally be approved by the City
Council as set forth in said City Code Section.
4. General Provisions.
4.1. General Provisions Term.
The General Provisions shall remain in effect until the
Lease Term, Loan Term or Operating Term has expired, whichever
comes later ("General Provisions Term").
4.2. Representatives of Parties to Agreement.
Each party designates the individuals ("Representatives")
indicated below as said party's administrative representative who
is authorized by said party to represent it in the routine
administration of this Agreement.
4.2.1. City designates the City Manager as its
representative in all matters under this Agreement (except
execution thereof) and all notices given to City shall be so
addressed to the above designated representative at 276 Fourth
Avenue, Chula Vista, CA 91910.
4.2.2. Agency designates the Director of Community
Development as its representative in all matters under this
Agreement (except execution thereof) and all notices given to
Agency shall be so addressed to the above designated
representative at 276 Fourth Avenue, Chula Vista, CA 91910.
4.2.3. The BCT designates Executive Director as its
representative in all matters under this Agreement (except
execution thereof) and all notices given to BCT shall be so
addressed to the above designated representative at 1000
Gunpowder Point Drive, Chula Vista, CA 91910.
4.3. Keeping of Records.
BCT agrees that it will keep and maintain detailed records
of all receipts and expenditures by the BCT as well as detailed
records of all time spent and services performed by City and
Agency officers and employees on behalf of the BCT pursuant to
this Agreement.
4.4. Annual Report.
BCT agrees to submit an annual report to the City and Agency
describing the BCT operations, including, but not limited to, the
12
,,,,,9../'/
records described herein. This annual report shall also include
amounts and sources of revenue; private and corporate donations
and grants; strategies to improve revenues, increase attendance
and provide additional services and exhibits.
4.5. Insurance Requirements.
4.5.1. Insurance Coverages.
BCT agrees to obtain and maintain throughout the General
Provisions Term of this Agreement the following insurance
coverages, in the following categories, and to the limits
specified, policies of which are issued by Insurance Companies
that have a Best's Rating of "A, Class V" or better, or meets
with the approval of the City:
4.5.1.1. Package insurance policy that provides
Property Insurance for the building contents and General
Commercial Liability Insurance in the amount of $ 3,000,000,
which names City and Agency as an Additional Insured, and which
is primary to any policy which the City may otherwise carry
("Primary Coverage"), and which treats the employees of the NIC
Nature Center in the same manner as members of the general public
( Cross-liability Coverage").
..... ~ ~ .... ¢ ........................... ~ ........... carry.
~.E.l.~. 4.5.1.2 A Certificate of Insurance in
sufficient amount to protect the City and Agency, and which names
the City and Agency as Additional Insured must be provided by any
non-City or -Agency group that rents the NIC Nature Center
facilities.
i.E.l.~. 4.5.1.3 The amount of insurance
coverage required of the BCT pursuant to this Agreement may be
amended by the City upon 90 days notice to BCT.
4.5.2. Proof of Insurance Coverage.
4.5.2.1. Certificates of Insurance. The BCT
shall demonstrate proof of coverage herein required, upon
commencement of this Agreement, by delivery of Certificates of
Insurance demonstrating same, and further indicating that the
policies may not be canceled without at least thirty (30) days
13
written notice to the City.
4.5.2.2. Policy Endorsements Required. In order
to demonstrate the Additional Insured Coverage, Primary Coverage
and Cross-liability Coverage required under BCT's Commercial
General Liability Insurance Policy, BCT shall deliver a policy
endorsement to the City demonstrating same.
4.5.2.3 Failure of the BCT to maintain said
policies may be grounds for termination of the lease provisions
of this Agreement.
4.5.2.4. BCT shall be solely liable for any
damages, injuries, or causes of action which occur during any
period in which BCT fails to maintain insurance, in addition to
its obligation under this Agreement to indemnify City and Agency.
4.6. Compliance with Laws and Regulations.
BCT agrees to maintain and operate said premises in
compliance with all laws, rules and regulations applicable
thereto.
4.7. Administrative Claims Requirement and Procedures.
No suit shall be brought arising out of this Agreement,
against the City or Agency, unless a claim has first been
presented in writing and filed with the City of Chula Vista or
Redevelopment Agency of same City and acted upon by the City of
Chula Vista or Redevelopment Agency of same in accordance with
the procedures set forth in Chapter 1.34 of the Chula Vista
Municipal Code, the provisions of which are incorporated by this
reference as if set fully set forth herein.
4.8. Hold Harmless and Indemnification.
BCT agrees to indemnify and hold the City and Agency
harmless against and from any and all damages to property or
injuries to or death of any person or persons, including
officers, employees, agents, or representatives of the City or
Agency, and shall defend, indemnify and hold harmless the City
and Agency, their elected officials, officers, agents and
employees and representatives, from any and all claims, demands,
suits, actions or proceedings of any kind or nature, of or by
anyone whomsoever, in any way resulting from or arising out of
the negligent or intentional acts, errors or omissions of the BCT
or any of its officers, agents, employees, or representatives,
committed in or which should have been committed in the
performance of this Agreement.
4.9. Assignment.
14
Neither this Agreement nor any duties or obligations
hereunder shall be assignable by BCT without prior written
consent of the City or Agency. In the event of an assignment by
BCT to which the City or Agency has consented, the assignee or
its legal representative shall agree in writing with the City or
Agency to assume, perform, and be bound by the covenants,
obligations, and agreement contained herein.
4.10. Successors and Assigns.
Subject to the provision regarding assignment, this
Agreement shall be binding on the heirs, executors,
administrators, successors, and assigns of the respective
parties.
4.11. BCT not authorized to Represent City nor Agency.
Unless specifically authorized in writing by City or Agency,
BCT shall have no authority to act as City's or Agency's agent to
bind City or Agency to any contractual agreements whatsoever.
4.12. Notices.
All notices, demands or requests provided for or permitted
to be given pursuant to this Agreement must be in writing, unless
stated otherwise in this Agreement. All notices, demands and
requests to be sent to any party shall be deemed to have been
properly given or served if personally served or deposited in the
United States mail, addressed to such party, postage prepaid,
registered or certified, with return receipt requested, at
addresses identified for the parties in Section 4.2.
4.13. Entitlement to Subsequent Notices.
No notice to or demand on the parties for notice of an event
not herein legally required to be given shall in itself create
the right in the parties to any other or further notice or demand
in the same, similar or other circumstances.
4.14. Entire Agreement.
This Agreement, together with any other written document
referred to or contemplated herein, embody the entire Agreement
and understanding between the parties relating to the subject
matter hereof. Neither this Agreement nor any provision hereof
may be amended, modified, waived or discharged except by an
instrument in writing executed by the party against which
enforcement of such amendment, waiver or discharge is sought.
This Agreement specifically supersedes the prior Cooperation
Agreement between the City and BCT of January 6, 1987, such that
the prior agreement is no longer of any force and effect.
15
4.15. Capacity of Parties.
Each signatory and party hereto warrants and represents to
the other party that it has legal authority and capacity and
direction from its principal to enter into this Agreement; that
all resolutions or other actions have been taken so as to enable
it to enter into this Agreement.
4.16. Governing Law/Venue.
This Agreement shall be governed by and construed in
accordance with the laws of the State of California. Any action
arising under or relating to this Agreement shall be brought only
in the federal or state courts located in San Diego County, State
of California, and if applicable, the City of Chula Vista, or as
close thereto as possible. Venue for this Agreement, and
performance hereunder, shall be the City of Chula Vista.
4.17. Modification of Agreement.
No modification or waiver of any provision of this
Agreement shall be effective unless the same shall be in writing
and signed by the parties hereto, and then shall be valid only in
the specific instance and for the purpose for which given.
4.18. Counterparts.
This Agreement may be executed in more than one counterpart,
each of which shall be deemed to be an original but all of which,
when taken together shall constitute but one instrument.
4.19. Severability.
In the event that any provision of this Agreement shall for
any reason, be determined to be invalid, illegal, or
unenforceable in any respect, the parties hereto shall negotiate
in good faith and agree to such amendments, modifications, or
supplements to this Agreement or such other appropriate action as
shall, to the maximum extent practicable in light of such
determination, implement and give effect to the intentions of the
parties as reflected herein.
4.20. Headings.
The captions and headings in this Agreement are for
convenience only and shall not define or limit the provisions
hereof.
4.21. No Strict Construction.
This Agreement shall not be strictly construed against any
party hereto.
16
4.22. Time.
Time is of the essence in the performance of the Parties'
respective obligations herein contained.
4.23. Exhibits.
Ail exhibits to which reference is made are deemed
incorporated in this Agreement, whether or not actually attached.
4.24. Waiver.
No course of dealing or failure or delay, nor the single
failure or delay, or the partial exercise of any right, power or
privilege, on the part of the parties shall operate as a waiver
of any rights herein contained. The making or the acceptance of
a payment by either party with knowledge of the existence of a
breach shall not operate or be construed to operate as a waiver
of any such breach.
4.25. Remedies.
The rights of the parties under this Agreement are
cumulative and not exclusive of any rights or remedies which the
parties might otherwise have unless this Agreement provides to
the contrary.
4.26. No Additional Beneficiaries.
Despite the fact that the required performance under this
Agreement may have an affect upon persons not parties hereto, the
parties specifically intend no benefit therefrom, and agree that
no performance hereunder may be enforced by any person not a
party to this Agreement. Notwithstanding the foregoing, this is
a three party Agreement and the City and the Agency are express
third party beneficiaries of the promises of BCT to provide
services.
4.27. Nondiscrimination.
BCT agrees not to discriminate in any manner against any
person or persons on account of race, marital status, sex,
religion, color, ancestry, national origin, age, sexual
preference or disability in BCT's use of premises, including, but
not limited to, the providing of goods, services, facilities,
privileges, advantages, and accommodations, and the obtaining and
holding of employment.
4.28. Incorporation of Prior Agreements.
This Agreement contains all agreements of the BCT, city and
Agency with respect to any matter mentioned herein. No prior
17
agreement or understanding pertaining to any such matter shall be
in effect.
4.29. Best Efforts and Cooperation.
The Parties promise to use their best efforts to satisfy all
conditions of this Agreement and to take all further steps and
execute all further documents reasonably necessary to put this
Agreement into effect.
4.30 Time Periods Not Covered by Formal Aqreement.
The Darties aqree that for the time period commencinq with
the date of expiration of the Oriqinal Three Party Aqreement
until the Effective Date of this Aqreement, the terms and
conditions of the Oriqinal Three Party Aqreement shall qovern the
parties respective riqhts and obliqations with respect to the
subject matter hereof.
(End of Page. Next Page is Signature Page.)
18
Signature Page
Now therefore, the parties hereto, having read and
understood the terms and conditions of this Agreement, do hereby
express their consent to the terms hereof by setting their hand
hereto on the date set forth adjacent thereto.
Dated: City of Chula Vista
by:
Attest:
Susan Bigelow
City Clerk
Approved as to Form:
John M. Kaheny
City Attorney
Dated: Redevelopment Agency of the City of
Chula Vista
by:
Attest:
Secretary to the Redevelopment Agency
Approved as to Form:
John M. Kaheny
Agency Attorney
Dated: Chula Vista Bayfront Conservancy
Trust:
by:
Attest:
Executive Director-Chula Vista Bayfront Conservancy Trust
H ~ ~home ~at t orney\nicagmt 3 . wp
19
LIST OF EXHIBITS
Exhibit A: Property Description of the Chula Vista Nature
...... ~lve Center (NIC)
Exhibit B: Grant of Easement to the Agency for NIC Nature Center
site
Exhibit C: city of Chula Vista Loans to BCT as of June 30, 1998.
20
REDEVELOPMENT AGENCY AGENDA STATEMENT
ITEM NO. ~
MEETING DATE 06/2"'/99
ITEM TITLE: RESOLUTION /~ I APPROVING A 180-DAY EXTENSION TO THE
CHRISMATT SEMI-EXCLUSIVE NEGOTIATING AGREEMENT FOR THE
DEVELOPMENT OF PROPERTY LOCATED AT THE NORTHWEST CORNER
OF THIRD AVENUE AND H STREET AND APPROVING TRANSFER OF
FUNDS FOR LEGAL SERVICES
SUBMI~rED BY-' COMMUNITY DEVELOPMENT ~...~"~"[ ~
REVIEWED BY: VOTE: YES__ NO X 'J
On June 16, 1998, the Redevelopment Agency approved a Semi-Exclusive Negotiation Agreement (SENA) with the
Chrismatt Corporation for the development of approximately 4.5 acres of property located at the northwest corner of Third
Avenue and H Street. The agreement was extended in December 1998 for 180 days by the Agency's Executive Director
as authorized by the agreement and will expire on June 16, 1999.
Currently, Agency staff is evaluating a financial analysis of the project and negotiating terms and conditions for a
Disposition and Development Agreement (DDA). The Chrismatt Corporation and staff agree that additional time will be
necessary to complete negotiations and prepare final documents for presentation to the Agency. Therefore, on behalf of
the Chrismatt Corporati¢n, Mr. Chris Lewis has requested an extension of the negotiating period through December 17,
1999.
In addition, specialized legal services will be needed to assist staff with the development of the DDA. Funds are available
in this year's budgets, but, they will need to be transferred from the Bayfront Redevelopment Project to the Town Centre I
Redevelopment Project. The selected firm currently has an approved contract on file with the Agency.
That the Redevelopment Agency adopt a resolution approving a 180-day extension to the Chrismatt SENA for the
development of property located at the northwest comer of Third Avenue and H Street and approving transfer of
Professional Services funds from the Bayfront Redevelopment Project to the Town Centre I Project,
Not applicable.
Since the SENA was first approved, a number of actions have taken place. A traffic study was completed, a financial
analysis was conducted, and title reports and appraisals of Agency property were completed. In addition, a contract for an
environmental analysis was executed. The Chrismatt Corporation initiated pdvate property acquisition and contracted with
Brian Paul and Associates, a nationally known architectural firm, to design the project.
The original proposal included two office/retail buildings, a freestanding restaurant, and a two level parking structure. A
total of 304,000 sq. ft. of commercial space was planned to be constructed in two phases. In March, the Chrismatt
PAGE 2~, ITEM "7
MEETING DATE ~
Corporation presented Brian Paul and Associates' revised plan that entails three office-retail buildings and a four level
parking structure to be built in three phases. The freestanding restaurant was incorporated into the ground level of the
Phase II building and will include an outdoor cafb. The original project concept is intact; the design of the project has been
refined.
Agency staff is evaluating the revised proposal and negotiating a DDA. Staff solicited proposals for financial analysis
services and outside legal counsel to assist with the project; and, due to the complexity of the project, staff and Chrismatt
Corporation agree that additional time is necessary to complete the process.
The current SENA authorized the Executive Director to extend the agreement for one 180-day period. Since that
extension has taken place, the Agency must authorize any additional extension to the agreement. The Chrismatt
Corporation has requested an extension through December 17, 1999 (copy of letter attached as Exhibit A). Staff concurs
with the request since substantial progress has been made, and it appears likely that the item will be presented for Agency
consideration within the next few months. It is the intention of Agency staff and the Chrismatt Corporation to complete
negotiations and present the item to !he Agency at the earliest possible date.
Extension of the current agreement will not create a financial impact to the Agency.
Additional consultant services for financial and legal consultants will cost the Agency approximately $30,000 through the
end of July. The Agency currently retains Straddling Yocca Carlson & Rauth and Keyser Marston and Associates to
provide legal and financial services on a project-by-project basis. The following costs were received for services:
Keyser Marston and Associates: Financial Services $10,000
Straddling Yocca Carlson & Rauth: Legal Services 18,720
Copying 300
Courier Services 300
19,320 19,320
TOTAL FINANCIAL & LEGAL SERVICES $29,320
Funds are available in the current year budget; however, budget adjustments are required to transfer funds from the
Bayfront Professional Services account to the Town Centre Professional Services account. This transfer can be
accomplished since Bayfront and Town Centre I are merged for financial purposes. The City Manager is authorized to
transfer up to $10,000 and will do so for the Keyser Marston and Associates contract. Agency authorization is required for
the $19,320 transfer for the Straddling Yocca Carlson & Rauth contract.
H:\HOME~COMMDE~STAFF.REP\06-22-99~Chrbmatt S-ENA.doc
RESOLUTION /~ ~ I
RESOLUTION Of the REdEVELOPMEnt AGENCY Of the CitY
OF CHULA VISTA APPROVING A 180-DAY EXTENSION TO THE
CHRISMATT SEMI-EXCLUSIVE NEGOTIATING AGREEMENT FOR
THE DEVELOPMENT OF PROPERTY LOCATED AT THE
NORTHWEST CORNER OF .THIRD AVENUE AND H STREET AND
APPROVING TRANSFER OF FUNDS FOR LEGAL SERVICES
WHEREAS, the current semi-exclusive negotiating agreement (SENA) with the Chrismatt
Corporation for development of approximately 4.5 acres of property located at the northwest corner
of Third Avenue and H Street will expire on June 16, 1999; and,
WHEREAS, Agency staff is currently evaluating a financial analysis prepared for the project
and is in the process of negotiating with the Chrismatt Corporation terms for a disposition and
development agreement; and,
WHEREAS, due to the anticipated complexity of the terms of said agreement, Agency staff
and the Chrismatt Corporation agree that additional time is necessary to complete evaluations and
document preparation; and,
WHEREAS, the Chrismatt Corporation has requested an extension of the subject SENA for
180-days through December 17, 1999 and Agency staff concurs with the request.
WHEREAS, the Agency has an approved list of professionals to provide financial and legal
services on a project-by-project basis, and Straddling Yocca Carlson and Rauth are included on said
list.
NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of
Chula Vista does hereby grant a 180-day extension of the subject semi-exclusive negotiating
agreement between the Redevelopment Agency and the Chrismatt Corporation for the development
of approximately 4.5 acres of property located a Third Avenue and H Street.
BE IT FURTHER RESOLVED that the Redevelopment Agency of the City of Chula Vista
does hereby authorize transfer of $19,320 from Bayfront Professional Services account to Town
Centre I Professional Services account to finance legal services to be provided by Straddling Yocca
Carlson and Rauth for the Chrismatt project.
Presented by: Approved as to form by:
~ ~r r~ (~t oSralc(~mc°onrnem u n ity Development ~~,
H:\HOME\COMMDEV~RESOS\Chrismatt SENA.doc
June 8, 1999
Ms. Pamela R. Buchan
City of Chula Vista Redevelopment Dept.
276 Fourth Ave.
Chula Vista, CA 91910
RE: Semi Exclusive Negotiating Agreement between the CHRISMATT Corporation dba
PIERI COMPANY and the Redevelopment Agency of the City of Chula Vista, effective
June 16,1998.
Dear Ms. Buchan
Pursuant to paragraph 5.1 of the referenced agreement and upon receipt of verbal
authorization from Mr. Jim Pieri, President of the CHRISMATT Corporation dba PIERI
COMPANY on June 8, 1999, the CHRISMATT Corporation requests an extension of
the negotiating pedod through December 17, 1999.
Sincerely,
.."% ," ~] ? ' f " I
Lewis Group representing .
CHRISMATT Corporation
£:OMMIRC]AL AND RESI[)ENFIA~ PROI'ER[YSAIESAND lEASING
REDEVELOPMENT AGENCY AGENDA STATEMENT
ITEM
MEETING DATE OG/~/BB
ITEM TITLE: RESOLUTION f ~' ~ ~ APPROVING A DEFERRAL AGREEMENT
BETWEEN THE CITY OF CHULA VISTA AND THE OTAY WATER DISTRICT FOR
PAYMENT OF DEVELOPER IMPACT FEES FOR THE VETERANS HOME
PROJECT AND AUTHORIZING PAYMENT OF THE FIRST INSTALLMENT OF
$26,400
SU'"MITTEG ~'Y: COMMUNITY DEVELOPMENT....,. ~TDI~C~(DI C OR L.¥~"~
REVIEWE", BY: EXECUTIVE DIRECTO ~'~) ~/STHS VOTE.~ YES No_X_.)
While negotiating for the Veterans Home to be located in Chula Vista, the Redevelopment Agency agreed to pay, waive,
or otherwise arrange for the payment of City development impact fees, permit processing fees, and any other
development impact or processing fees imposed on the project by the Gray Water District ("District") and San Diego
County Water Authority.
On Apd127, 1999 the Redevelopment Agency approved resolution 1625 apprepdating $156,674 to reimburse the State
Department of Veterans Affairs for development impact fees imposed by the Distdct for the Veterans Home project. The
$156,674 represents a portion of the $420,000 due to the District. The report outlined the need to reimburse the State
and discussed the terms and conditions of a deferral agraement to pay the balance over a 10 year period. The raport
indicated that staff would bdng the deferral agreement to the Redevelopment Agency for consideration,
That the Redevelopment Agency approve the resolution approving a deferral agreement between the City of Chula Vista
and the Otay Water Distdct for developer impact fees for the Veterans Home Project and authorizing payment of the first
installment of $26,400.
Not Applicable.
PAGE 2, ITEMS--
MEETING DATE 06/22/99
The deferral agreement states that the remaining fees of approximately $264,000 will be paid on an annual basis in the
amount of $26,400 for a period of ten years. In addition, the City has the option of paying any balance due at any time
dudng the ten year pedod. Upon approval of the deferral agreement, the first installment of $26,400 is due to the District.
The terms and conditions of the deferral agreement are as follows:
1) The District agrees to defer payment from the City of $264,000 currently owed to the District.
2) City agrees to pay the $264,000 water capacity fee over a pedod of ten years with the first installment of $26,400
due upon execution of the deferral agreement. Payments for years 2 through 10 will be based upon the first
installment payment of $26,400 times one (1) plus the percentage of increase in the Engineering News Record
(ENR) Construction Costs Index.
3) City shall have the right to pay off the balance owed pursuant to the agreement at any time.
The City reserves the right to seek reductions in the fees from the District if permitted under applicable law.
The deferral agreement has been reviewed and approved as to form by the City Attorney's Office. Staff will retum to the
Redevelopment Agency dudng FY 1999-00 to appropriate funds for the second installment of approximately $27,000
which will be due on or before June 30, 2000.
The total fees to be paid for the development impact fees imposed by Distdct are estimated to be $420,000. Funds to
pay the first installment of $26,400 are available in the Housing Division FY 1998-99 Professional Services account 993-
9930-5201. Future installment payments will be budgeted in the Housing Division budget through the regular budget
process. The total City centdbution to the Veterans Home Project is approximately $4 million which is comprised of a land
contribution and the payment and waiver of development impact fees.
(JA) H:/HOME/COMMDEV~STAFF REP\/vetpmnt. 113 [June 17, 1999 (9:05AM)]
RESOLUTION NO. /~
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA APPROVING A DEFERRAL AGREEMENT BETVVEEN THE
CITY OF CHULA VISTA AND THE OTAY WATER DISTRICT FOR
DEVELOPER IMPACT FEES FOR THE VETERANS HOME PROJECT
WHEREAS, on October 8, 1996 Council resolution 18448 and Agency resolution 1520 was
approved adopting the Disposition and Development Agreement between the Redevelopment Agency, the
City of Chula Vista and the State Department of Veterans Affairs for the development of the Veterans Home;
and
WHEREAS, section 1.2 of the Disposition and Development Agreement ("DDA") states that
"at no cost to the State, the City/Agency agrees to pay, waive, or otherwise arrange for the payment or waiver
of [al any and all City development impact fees and permit processing fees imposed against the Veterans
Home Project, lb] any and all Otay Water District and San Diego County Water Authority development impact
and permit processing fees lawfully imposed against the Veterans Home Project, and [c] any and all school
fees lawfully imposed against the Veterans Home Project"; and
WHEREAS, the State Depadment of Veterans Affairs has requested the City/Agency to pay
$420,000 for annexation fees imposed by the Otay Water District to the Veterans Home Project for twelve
water meters to be installed on the site. The development impact fees include the following: 1) installation
fees; 2) water meter fees; 3)capacity fees; 4) San Diego County Water Authority fees; and 5) annexation fees;
and
WHEREAS, the City has already reimbursed the State $156,674 for fees paid to the Otay
Water District; and
WHEREAS, the Otay Water District has agreed to defer the outstanding $264,000 in fees
over 10 years plus interest pursuant to the terms of a deferral agreement.
NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of Chula
Vista does hereby approve the deferral agreement between the City of Chula Vista and the Otay Water District
for Developer Impact Fees for the Veterans Home Project in the form attached hereto as Exhibit A and
authorizes and directs the Chairman to execute same.
Ch ris"'S~lomone v
Director of Community Development ~ 'ne~'~ -
EXHIBIT A
AGREEMENT BETWEEN THE OTAY WATER
DISTRICT A_ND THE CITY OF CHULA VISTA TO
DEFER THE PAYMENT OF WATER CAPACITY
FEES FOR THE VETERANS HOME
This Agreement is entered into this day of June, 1999, by
and between the Otay Water District (hereinafter "Otay") and the
Redevelopment Agency of the City of Chula Vista (hereinafter
"City") for the purpose of deferring the payment of water capacity
fees for the Veterans Home in the City of Chula Vista.
WHEREAS, the City has undertaken pursuant to an agreement with
the California Department of Veterans Affairs (hereinafter "DVA")
to pay the water capacity fees for the Veterans Home in the City of
Chula Vista; and
WHEREAS, the outstanding amount of fees being charged by Otay
for the Veterans Home for water capacity amount to $264,000; and
WHEREAS, the City has requested a deferral agreement to allow
payment of the $264,000 through installments.
NOW, THEREFORE, in consideration of the mutual promise herein
contained, Otay and City agree as follows:
1. The parties to this agreement agree that the above
recitals are true and correct.
2. Otay agrees to defer payment from City of $264,000, which
is currently owed to Otay.
3. City agrees to pay the $264,000 water capacity fees over
a period of ten (10) years with payment calculated as follows:
First year $26,400
Years 2-10 $26,400 x one plus the percentage of increase
in the Engineering News Record ( ~ENR" )
Construction Costs Index for the Los Angeles
Region (using a base of 6831.90 as of April 1,
1999)
4. City agrees to make the payment for year one upon
execution of this agreement and each subsequent payment shall be
made upon the anniversary date of this agreement.
5. City shall have the right to pay off the balance
(adjusted for any increase in the ENR at the time of payment as
described above) owed pursuant to this agreement at any time.
6. Notwithstanding the forgoing, City reserves the right to
propose and attempt to obtain further adjustments to the fee based
upon any legal restrictions there may be on the amount of water
capacity fees that Otay may be entitled to charge the DVA for the
Veterans Home Project.
IN WITNESS WHEREOF the parties hereto have entered into this
agreement as of the date first above written.
REDEVELOPMENT AGENCY AGENDA STATEMENT
ITEM NO.
MEETING DATE 06/P.~/99
ITEM TITLE: PUBLIC HEARING: TO CONSIDER THE SALE OF SPACE 35 AT ORANGE
TREE MOBILEHOME PARK
RESOLUTION /~ ~ AUTHORIZING THE COMMUNITY
DEVELOPMENT DIRECTOR TO EXECUTE A PURCHASE CONTRACT AND
RELATED DOCUMENTS FOR SPACE 35 AT ORANGE TREE MOBILEHOME
PARK
SUBMFI-rED BY: COMMUNITY DEVELOPMENT L,~-"~ (~___~
REVIEWED BY: EXECUTIVE DIRECTOR VOTE: YES__ NO X )
In November 1987, Orange Tree Mobilehome Park converted to resident ownership. The Agency assisted the
residents in purchasing their park with a $600,000 acquisition loan which was converted to loans for lower income
residents to help them purchase their spaces. At that time, 29 residents did not wish to purchase their space, and
the Agency agreed to purchase these spaces after the newly-formed homeowner's association was unable to secure
financing to purchase them. The residents who did not purchase their space remained as renters. The Agency's
desire is to sell these spaces as new home buyers move into the park or to sell the space to the current resident.
The Agency currently owns 12 spaces, having sold 17.
That the Redevelopment Agency conduct a public headng, consider testimony, and adopt a resolution authorizing the
Community Devdopment Director to execute a purchase contract and related documents for Space 35 at Orange
Tree Mobilehome Park.
Not applicable.
On Apdl 2, 1999, the current resident of Space 35 at Orange Tree Mobilehome Park submitted an offer to the
Community Development Department to purchase this space. The value of the property has been appraised at
$32,000 and the buyer has offered to purchase the lot for $30,000. Although the buyer's offer is $2,000 less than the
appraised value, staff recommends accepting the offer since the Agency desires to sell the spaces, the buyer is the
current occupant of the space, and the offer is not significantly less than the appraised value.
This is a request to authorize the Community Development Director to execute a purchase contract and related
documents as approved by the City Attorney's office for the sale of space 35 at Orange Tree Mobilehome Park.
Attached as Exhibit 2 is the signed Purchase Contract.
PAGE 2~, ITEM .__~
MEETING DATE 0~/~,2/99
Health and Safety Code 33431 requires a public hearing to consider a sale of agency owned property without public
bids. Staff believes that the proposed sale is appropriate even without public bids because the sale is to the current
resident for a pdce slightly less than the fair market value of the property.
Proceeds of the sale, less the estimated closing costs of $825, will be deposited into the Agency's Low and Moderate
Income Housing Set-aside Fund for further use in providing affordable housing programs.
1. Location Map
2. Reap Estate Pumhase Contract and Receipt for Deposit
H:~H OME\COMMDEV~STAFF.REP\06-22-99\Omngetree 35.doc
RESOLUTION NO. /6 ,,,~,~
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA AUTHORIZING THE COMMUNITY DEVELOPMENT
DIRECTOR TO EXECUTE A PURCHASE CONTRACT AND RELATED
DOCUMENTS FOR SPACE 35 AT ORANGE TREE MOBILEHOME PARK
WHEREAS, the Redevelopment Agency currently owns mobilehome spaces at Orange Tree
Mobilehome Park located at 521 Orange Avenue, Chula Vista; and
WHEREAS, an offer to purchase space 35 at Orange Tree Mobilehome Park has been
received by the Community Development Department from the existing resident for $30,000, $2,000 less than
the appraised value of $32,000 for such property; and
WHEREAS, Article 11, Section 33431 of the California Community Redevelopment Law
requires a public hearing be held for any sale of lease of Agency-owned property without public bids; and
WHEREAS, said public hearing has been conducted pursuantto Section 33431 for the sale
of space 35 at Orange Tree Mobilehome Park; and
WHEREAS, the Redevelopment Agency has found and determined that the sale of space
35 at Orange Tree Mobilehome Park to the existing resident is in the best interest of the Redevelopment
Agency and is consistent with its housing goals.
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of Chula
Vista as follows:
1. That based on the facts and findings set forth above, the Redevelopment Agency of
the City of Chula Vista does hereby approve the sale of space 35 at Orange Tree Mobilehome Park to Eugene
Turchetta for the purchase price of $30,000; and
2. That the Redevelopment Agency of the City of Chula Vista does hereby authorize
the Community Development Director to execute a purchase contract, in substantially the same form and filed
in the Office of the Secretary to the Redevelopment Agency, and escrow instructions each in a final form
approved by the Agency Attorney, and with such additional provisions as may be deemed necessary or
appropriate thereby; and
3. That the Redevelopment Agency of the City of Chula Vista does hereby authorize
the Community Development Director to take such other action as deemed necessary to consummate said
sale of space 35 at Orange Tree Mobilehome Park.
Pre~ ~ Approved(~~ ~----~--/~'~as to form by
Chris Salomone J/o/hn M~t"a~eny
Director of Community Development
ney
LOCATION MAP ADDENDUM FileNo 990115
Property Address 521 ORANGE AVENUE #35
cit~ CHULA VISTA Count' SAN D EGO_ State CA ZipOode 91911
Lender/Client CHULA VISTA REDEVELOPMENT AGENCY Address 276 FOURTH AVENUE. CHULA VISTA. GA 91910
SEE MAP
1330
REAL ESTATE PURCHASE CONTRACT AND RECEIPT FOR DEPOSIT
This is more than a receipt for money. It is intended to be a legally binding contract.
Read it carefully.
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
COMMUNITY DEVELOPMENT DEPARTMENT
***Standard Form***
Chula Vista, California ., 1999
Eugene Turchetta, herein called Buyer, desires to purchase Space 35 at Orange Tree Mobilehome Park,
521 Orange Avenue, Chula Vista. Received from Buyer, the sum of five hundred dollars ($500.00)
evidenced by: [circle one]
[a] Cash [bi Cashier's Check Ici Personal Check [dj Other
payable to the Redevelopment Agency of the City of Chula Vista as deposit on account of purchase of
property. Upon acceptance of this offer, Eugene Turchetta will deposit into escrow the remaining balance
of the purchase price of thirty thousand dollars ($30,000), for the purchase of property situated in Chula
Vista, County of San Diego, California, described as follows:
SEE ATTACHED LEGAL DESCRIPTION
(More commonly known as Space 35 at
the Orange Tree Mobilehome Park, 521 Orange Avenue, Chula Vista)
1. Buyer will deposit in escrow with Spring Mountain Escrow the balance of $29,500 towards the
purchase price of $30,000.
2. Redevelopment Agency of the City of Chula Vista, herein called Agency, will credit the $500
received as a deposit towards the purchase price of $30,000.
3. Buyer does intend to occupy subject property as his/her/their residence.
4. Buyer and the City of Chula Vista Redevelopment Agency, herein called Agency, shall deliver
signed instructions to the escrow holder within seven (7) days from Seller's acceptance, which
shall provide for closing within 30 days from Seller's acceptance. Escrow and other fees to be
paid as follows:
Bv Aeency:
1. Owner's Title Insurance Policy
2. One-half of Escrow Fee
3. Document Transfer Tax
4. Document Preparation Fee
5. IRS Tax Report
6. One-half of Transfer Fee of Homeowners Association
7. Proration of Property Taxes and Homeowners Association Fee
By Buyer:
1. One-half of Escrow and Homeowners Association Fee
2. If the sale is not completed due to fault of the Buyer, Buyer shall be responsible for any
escrow and related fees.
Real Estate Purchase Contract
Page 2 of 3
3. Approval of this sale shall be contingent upon final approval of the Redevelopment
Agency of the City of Chula Vista.
4. Buyer acknowledges having received copy of the Declarations, Covenants, Conditions
and Restrictions and all amendments hereto, if any, governing the described property,
together with a copy of the By-laws of the Orange Tree Homeowners Association.
5. Buyer and Seller acknowledge receipt of copy of this entire document, which is
comprised of three pages.
6. This agreement constitutes the entire agreement. Any amendments to this agreement
shall be in writing and shall be signed by both parties.
7. If a lawsuit is filed in connection with this agreement, the prevailing party shall be
entitled to be compensated for legal expenses including reasonable attorney's fee.
8. Buyer agrees and acknowledges that they may have made an independent investigation to
the extent Buyer deems appropriate, concerning the physical condition (including the
existence of hazardous materials), value, development, use, marketability, feasibility and
suitability of the subject property, including, but not limited to, land use, zoning and other
governmental restrictions and requirements. Buyer is acquiring the subject property "as
is", in its present state and condition solely in reliance upon Buyer's own investigation,
and no representations or warranties of any kind, express or implied, have been made by
the Agency or its representatives, except as expressly set forth in this Agreement. Buyer
unconditionally releases Agency from and against any and all liability, both known and
unknown, present and future, for any and all damages, losses, claims and costs (including
without limitation, the existence of hazardous materials), or the subject property's non-
suitability for intended use. With respect to this Section, Buyer waives the provisions of
California Civil Code Section 352 which provides: "A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at the time of
executing the release, which if known by him must have materially affected his
settlement with the debtor."
8.1.Buyer will accept the subject property, and the matters relating to the subject
property listed below, in the present "as is" condition. The matters are:
a. Soils. Tooo~raphv, Etc. Soils and geological condition; topography, area
and configuration; archeological, prehistoric and historic artifacts, remains
and relics; endangered species.
b. Utilities. Schools, Etc. Availability of utilities, schools, public access,
and fire and police protection.
c. Assessment Districts. The status and assessments of any and all
assessment districts.
d. Plannine and Zoning. Applicable planning, zoning, and subdivision
statutes, ordinances, and regulations.
e. Easements and Encroachments. Any easement, license, or encroachment
which is not a matter of public record, whether or not visible upon inspection
of the subject property; Seller warrants to Buyer that Seller knows of no such
easement license or encroachment.
Real Estate Purchase Contract
Page 3 of 3
· f. Other Matters. Any other matter relating to the subject property or to
the development of the subject property, including, but not limited to, value,
feasibility, cost, governmental permissions, marketing and investment return,
except as otherwise expressly provided in this Agreement.
8.2. Real Estate Commissions. Each party warrants to the other that no brokers
or finders have been employed or are entitled to a commission or compensation in connection
with this transaction. Each party agrees to indemnify, protect, hold harmless and defend the other
party from and against any obligation or liability to pay any such commission or compensation
arising from the act or agreement of the indemnifying party.
Dated: Dated:
REDEVELOPMENT AGENCY OF THE CITY
OF CHULA VISTA
Eugene Turchetta (Buyer)
Chris Salomone
Community Development Director
(LH) H:\Home\Commdev\Stored\Offer~oPurchase.doc[06/09/99 (9:59 AM)]
JOINT REDEVELOPMENT AGENCY/CI'I'Y COUNCIL
AGENDA STATEMENT
ITEM NO.
MEETING DATE O6/~.,~/99
ITEM TITLE: PUBLIC HEARING: PURSUANT TO HEALTH AND SAFETY CODE SECTIONS
33431, 33433, 33~.~.~..6 AND 33000 ET. SEQ. TO CONSIDER THE MERITS OF
THE SALE OF REDEVELOPMENT AGENCY PROPERTY AT 350-360 BAY
BOULEVARD, INDUSTRIAL FINANCING ASSISTANCE, AND ACQUSITION BY
EMINENT DOMAIN OF THE RADOS COMPANIES PROPERTY AT 780 "F"
STREET FOR THE BFG RELOCATION PROJECT
SUBM' I I~-D BY: COMMUNITY DEVELOPMEN IRECTOR
R~ ~: CITY MANAG (4/5TM VOTe: Y~__ NO X )
Staff recommends that the public hearing be continued to the meeting of June 29, 1999.
JOINT REDEVELOPMENT AGEN(2Y/CITY COUN(21L AGENDA
STATEMENT
ITEM No,
MEETING DATE OG/~'2/g9
ITEM TITLE: PUBLIC HEARING: TO CONSIDER APPROVAL OF AN ELEVEN (11) UNIT
TRANSITIONAL HOUSING PROJECT, KNOWN AS TROLLEY TRESTLE
INCLUDING A REDUCTION IN REQUIRED PARKING
COUNCIL RESOLUTION
AGENCY RESOLUTION /~ ~ ~ APPROVING A DISPOSITION,
DEVELOPMENT AND HOUSING COOPERATION AGREEMENT WITH SOUTH
BAY COMMUNITY SERVICES FOR THE DEVELOPMENT OF AN ELEVEN (11)
UNIT TRANSITIONAL HOUSING DEVELOPMENT FOR FOSTER CARE
GRADUATES, KNOWN AS TROLLEY TRESTLE, LOCATED AT 746 ADA
STREET INCLUDING: (A) A $300,000 RESIDUAL RECEIPTS LOAN FROM
THE REDEVELOPMENT AGENCY'S LOW AND MODERATE INCOME
HOUSING FUND; (Bi A $167,600 RESIDUAL RECEIPTS LAND LOAN FROM
THE CITY'S HOME FUNDS; (C) PROJECT DESIGN PLANS; AND (D) A 38
PERCENT DENSITY BONUS AND A REDUCTION IN REQUIRED PARKING;
ADOPTING AN ADDENDUM TO NEGATIVE DECLARATION IS.93-07B; AND
APPROPRIATING $300,000 FROM THE REDEVELOPMENT AGENCY'S LOW
AND MODERATE INCOME HOUSING SET-ASIDE FUND THEREFOR
SU.Mn-rEo ~ COMMUNITY DEVELOPMENT DIRECTOR~~_~5, ./~.~
REWEWEO BY: CITY MANAGER/EXECUTIVE DIRECTOR ~,~[~d'v~n.~..~,y~,.,!~_
No
South Bay Community Services (SBCS) has submitted an Affordable Housing Review Application to the Community
Deveropment Department for the development of an 11 unit transitional housing project (the "Project") for young
adults who have completed the County of San Diego Foster Care Program. The project is to be known as "Trolley
Trestle" and is located at 746 Ada Street within the Southwest Redevelopment Area of Chula Vista (see attached
Exhibit 1).
To facilitate the construction of the project, SBCS has requested a thirty-eight pement {38%) density bonus and a
reduction in parking (19 spaces to 12 spaces), financial assistance from the Redevelopment Agency in the amount of
$300,000, and the conveyance of the property in the form of a land loan for $167,600.
The Disposition, Development and Housing Cooperation Agreement (Agreement), specifying the terms of the
Agency's financial assistance, the transfer of the property from the City to SBCS, the density bonus and reduction in
parking standards, and the terms for reimbursement and disbursal of grant funds from the State of California, is also
being presented for the City/Agency's consideration. A summary of the Agreement is attached as Exhibit 3.
PAGE 2v ITEM f
MEETING DATE 06/22/99
The project includes the construction of one and two bedroom fiats, a common room, and a twelve-space parking lot
(see Exhibit 2), Since the proposed project is within the Southwest Redevelopment Project Area, this item also
includes Redevelopment Agency consideration and final approval of the design plans,
In accordance with the requirements of CEOA, the Environmental Review Coordinator has concluded that there
would be no new significant environmental effects resulting from the implementation of the project other than those
already analyzed under Negative Declaration IS-93-07 previously adopted by the City Council/Agency. The revisions
to the proposed project will result in only minor technical changes or additions. The Environmental Review
Coordinator therefore, recommends an addendum to Negative Declaration IS-93-07B be adopted.
Staff recommends that the Agency adopt a resolution approving a Disposition, Development and Housing
Cooperation Agreement and related documents with South Bay Community Services for the development of an
eleven (11) unit transitional housing development for foster care graduates, known as Trolley Trestle, located at 746
Ada Street including: (a) a $300,000 residual receipts loan from the Redevelopment Agency's Low and Moderate
Income Housing Fund; (b) a $167,600 residual receipts land loan from the City's HOME Funds; (c) project design
plans; and (d) a 38 pement density bonus and a reduction in required parking; adopting an addendum to Negative
Declaration IS-93-07B; and appropriating $300,0000 from the Redevelopment Agency's Low and Moderate Income
Housing Fund therefor.
On December 9, 1998, the Housing Advisory Commission voted to recommend the development by South Bay
Community Services of an 11 unit transitional housing project for young adults who have completed the County of
San Diego Foster Care Program to be located at 746 Ada Street. Minutes of this meeting are attached as Exhibit 5.
The Design Review Committee reviewed the proposed concept plans on May 17, 1999 and recommended approval
of the project subject to the conditions listed in the attached Agency resolution.
On May 26, 1999, the Planning Commission adopted a resolution recommending that the City Council and
Redevelopment Agency grant a thirty-eight pement (38%) density bonus and a reduction in required parking for the
project. The recommendation was made subject to conditions that staff has incorporated into its recommendation.
These recommendations are discussed in more detail below.
Minutes of the Design Review Committee and the Planning Commission meetings are unavailable at this time.
The Proposed Project
The applicant is proposing a transitional housing project with a total of 11 apartment units (6 one-bedroom and 5 two-
bedroom units), a common area meeting room, computer room, and parking for 12 vehicles, including one
handicapped space.
The residents will have completed the County Foster Care Program and the transitional living program will be their
first step towards self-sufficiency and independent living. As a condition of the Planning Commission's
recommendation of approval of the requested 38 percent density bonus, residents will stay for a maximum of two
years, consistent with the definition of transitional housing. During their residency, they will be required to continue
their education or obtain employment with a career path. No social services will be provided at the site.
PAGE 3, ITEM f
MEBTING DATE 06/22/99
Trolley Trestle is a long-term transitional housing project targeted to extremely Iow-income young adults, many of
who will be employed part time while a~tending school or just starting employment. Extremely Iow income is defined
as a maximum of 30 percent of the Area Median Income (AMI) as determined by HUD, currently $11,050 for a single
person household. Residents will contribute a percentage of their income towards rent. Based upon SBCS' past
experience with other transitional housing programs and this population's income and ability to pay, rents are
expected to be no more than $100 a month for a one bedroom unit and $140 for a two bedroom unit.
The proposal involves a request for a 38 pement density bonus, a reduction in the required parking, and a request for
financial assistance.
Site Characteristics and Land Use Compatibility
The site for the proposed project is a 0.6 vacant acre lot located within the boundaries of the Southwest
Redevelopment Project Area. The site is surrounded by other residential uses including the 18 unit Trolley Terrace
Townhomes also developed by SBCS. The site is served by public transportation. The Palomar Trolley Stop on
Industhal Boulevard is directly across from the project site. The project is within walking distance to a commercial
center on the east side of the Palomar Trolley Stop. An elementary school, the County of San Diego Family
Resource Center, and a proposed 145 child capacity day care facility are approximately 2,000 feet to the north of the
site. Therefore, it is staffs opinion that the site is appropriate for transitional housing and is highly compatible with
the surrounding land uses.
General Plan, Zoning, and Land Use
General Plan Zoning Land Use
Site Residential Low/Med (3-6 du/ac) R-2P Vacant
North Residential Low/Med (3-6 du/ac) R-2P Vacant
South Residential Low/Med (3-6 du/ec) R-2P Vacant
East Open Space & Public/Q-Public S-94 (County) Trolley Stop/SDG& E Row
West Residential Low/Med (3-6 du/ec) R-2P Trolley Terrace Townhomes
Density Bonus
As specified in Section 65195 (b), the City shall grant a minimum 25 percent increase over the otherwise maximum
residential density and at least one additional concession or incentive to a developer of housing agreeing or
proposing to construct at least: 1) 20 percent of the total units for Iow income households; 2) 10 percent of the total
units for very Iow income households; or 3) 50 percent of the total units for seniors. In addition, the City must grant at
least one additional incentive or concession as defined in Section 65195(h) or make a wdtten finding that the
additional incentive or concession is not required to provide the affordable housing. Such incentives include one of
the following: 1) Reduction or modification of development standards, zoning codes or architectural design
requirements, 2) Permit mixed use zoning within the housing development; or 3) Allow other regulatory incentives or
concessions. As an alternative, the City could provide financial incentives of an equivalent value.
SBCS is requesting a 38 percent density bonus (3 additional units) to increase the project density from 8 to 11
housing units. In turn, SBCS will restrict occupancy of ten units to youths completing the San Diego County Foster
Care program and whose income is expected to be at or below 30 percent of the Area Median Income (AMI) as
determined by HUD. One unit is to be occupied by an on-site property manager.
Rent and occupancy restrictions will be maintained for a pedod of no less than 55 years, which exceeds the 30-year
term required by State law, and will bind ail subsequent owners, so that the commitment remains in force regardless
of ownership. Compliance with these resthctions will be subject annually to a regulatory audit. Compliance with sthct
property management policies and procedures will ensure that income and rent restrictions will be maintained for the
full 55-year compliance period.
PAGE ~4~ ITEM ~
MEETING DATE 06/~22/99
The request also includes a modification to the City's parking standards.
ParkincI
Section 19.62.050 of the Municipal Code requires 1.5 parking spaces for each one-bedroom unit and 2 parking
spaces for each two-bedroom unit. Therefore, the project would normally require a total of 19 spaces. The property's
size cannot accommodate the proposed 11 units and the required 19 parking spaces and, therefore, SBCS is
requesting a reduction in parking requirements. SBCS proposes one parking space for each one or two-bedroom
unit with an additional parking space for persons with disabilities, for a total of 12 parking spaces.
While the parking requirements could be met off-site, there is no parking available within close proximity of this
project. Should the City require compliance with the City's parking standards, the project would need to be scaled
down to 9 units with 15 parking spaces. The reduction in parking is required to develop the 11 units and to reach the
affordability levels required for this special needs population.
Staff supports the proposed reduction in the number of parking spaces to one space per unit plus an additional space
for handicap parking based upon the site's immediate access to public transportation and the close proximity of
commemial centers and social services to serve the project residents.
The Disposition, Development and Housing Cooperation Agreement to be executed between the City, Agency and
SBCS will place restrictive covenants on the property limiting its use for transitional housing for former foster care
youths. However, if there is no longer a need for transitional housing for youths completing the Foster Care Program
or should funding become unavailable for the intended use, SBCS may convert the use for other transitional living
programs or very Iow-income housing. As recommended by the Planning Commission, any conversion of the use
will necessitate approval of such conversion during a public hearing before the Planning Commission and the
City/Agency. Additionally, it is recommended that at such time a conversion of use is requested or upon expiration of
the Agreement and its covenants in 55 years, the project will be required to come into compliance with the applicable
development standards at such time or receive approval of a variance from such standards.
Proposed Financin.q of Project
The developer will be using a State grant and County of San Diego HOME funds to support the estimated $1,204,784
cost of constructing the project. However, there remains a financing gap of approximately $467,600.
Financing options to close this gap is extremely limited due to the near homeless population served and the required
affordability level. With the anticipated income derived from rents anticipated to be $14,400 annually, with an annual
increase of 4 pement, a conventional lender cannot underwrite this type of development.
Other possible soumes of funding include local subsidy, other govemment programs, and foundations and corporate
grants. The developer has already been successful in obtaining State funding and HOME funds from the County of
San Diego. While solicitation of private foundations and corporate grants is a possible source, the developer has and
is soliciting these resources for the ongoing operating and maintenance expenses for the project. Therefore, the
developer has requested direct financial assistance from the City and the Agency.
A. Cost Reasonableness
Development costs are one of the key variables determining the need for subsidies, it is important that those
costs be reasonable. At an approximate project cost of $1,204,784, including land, the average unit cost of
$109,526 is consistent with typical affordable multi-family development within the City. Cordova Village,
another new construction project by the developer, had a per unit cost of $108,850.
PAGE 5. ITEM
ME~ =.l~lG DATE 06/22/9~)
B. Undue Gain
It is important that any financial assistance provided has the effect of making the units more affordable and
not creating undue gain for any party. The developer will receive a "Developer Fee" of $45,000 or
approximately 4 pement of total project costs. The Developer Fee is within acceptable standards for a
project of this size and affordability.
C, Subsidy Analysis
The City, as the owner of the property, conditionally approved the conveyance of the property for the fair
market value ($I67,600) on December 8, 1998. The conveyance will be "seller (City) financed" as a
residual receipts loan. Since the property was acquired with federal HOME funds, the net effect of this
transfer is a $167,600 loan of HOME funds. Staff recommends a loan to the developer in the amount of
$300,000 from Redevelopment Agency Low and Moderate-Income Housing fund to meet the remaining
financing gap. The City and the Agency's financial assistance equate to $27,273 per affordable unit.
Proforma ~ubsid~ Analysis
Project Cost ~1,20~.,7~L
County of San Diego ROME FunBs ', 4901g~
State1 { 2~.61250 II
Agency Subsidy (Redev l_o~VMod Fund)
City and Redevelopment Agency Loan
The City Land Loan of $167,600 and the Agency Loan of $300,000 will be made on the following loan terms:
1. The loan repayment will be secured by a Deed of Trust recorded against the project property.
2. The term of the loan shall be fifty-five (55) yearn.
3. The outstanding balance shall accrue with simple interest at 3 percent per annum.
4. Payment of principal and interest on the Agency loan shall be made, on an annual basis, out of a fund equal to
fifty percent (50%) of the "Residual Receipts", rental income from the project minus reasonable operating
expenses.
5. Developer will be required to operate the project consistent with the Disposition, Development and Housing
Cooperation Agreement.
The terms of the City Loan for the property and Agency Loan shall be subject to review and amendment, if
appropriate, at such time a conversion of use is requested by SBCS and considered by the City Planning
Commission and the City/Agency.
Little, if any, income is expected to be generated from this project due to the nature of this project. Therefore, there
is no expectation of repayment of the loans from residual receipts. Staff recommends the loan structure for the
financial assistance because the City and Agency would be able to receive repayment at the end of the 55-year term
of the loans if it elects to take back the property.
PAGE 6, I~M I~
MEE'rlNG DATE O6/~-~./99
Assuming all financial commitments ara securad, construction is expected to begin Summer 1999 with completion of
the project estimated by December 1999.
Annual Operating and Services Costs of the Protect
In addition to the costs of developing the Project, the Project will incur operating and services costs on an annual
basis. It is estimated that the total annual costs for operations and services are approximately $211,400, with a 4
pement annual increase (see Exhibit 4).
As recommended by the Planning Commission and has been the past practice of the Agency, the Agreement will
require SBCS to submit for the Community Development Department's review and approval a property management
plan to protect the City/Agency's investment in the Project. Furthermore, the Planning Commission recommended
that SBCS must also submit a copy of the program guidelines and requirements for padicipation in this transitional
living program for former foster care youths. Such guidelines shall include, but are not limited to, selection cdteda,
occupancy rules, and program expectations.
Plannin,q Commission Conditions
In its review of the project, the Planning Commission proposed the following conditions, Staffs recommendation
would incorporate these conditions into the project documents.
1. Limit property's use for transitional housing for youths completing the San Diego County Foster Care Program.
Any conversion of the use will necessitate approval of such conversion dudng a public hearing before the
Planning Commission and the City/Agency.
2. At such time conversion of use is requested or upon expiration of the affordability covenants of the Agreement in
55 years, the project will be required to come into compliance with the applicable development standards at such
time or receive approval of a vadance from such standards.
3. Residents will stay for a maximum of two years, except in limited circumstances as deemed appropriate by
SBCS, consistent with the definition of transitional housing.
4. Submit for the Community Development Department's review and approval a properly management plan, the
name of the property management company/agent to be engaged for the management of the property, and a
copy of the program guidelines.
5. Submit on an annual basis or when published a report from the County of San Diego Children Services Bureau
regarding an evaluation of programs and services provided by the Project and any follow up of former foster care
youths residing or having resided at Project.
Housin,q Need
Transitional housing for very Iow income or "at dsk" households is a pdodty need identified in the City's Housing
Element of the General Plan.
The City of Chula Vista has a goal to meet an affordable housing need for the upcoming 1999-2003 Housing Element
period of 278 units of housing for households at the extremely Iow income level (30 percent or less of AMI). This
project will be the City's first project towards this extremely Iow income housing goal.
In 1978, pursuant to Article XXXIV of the State Constitution, Chula Vista voters passed a 400-unit referandum for the
development of Iow-income housing. This project will be developed and counted towards the City's Article XXXIV
authority of 400 units. The current remaining authority is approximately 120 units, not including Trolley Trestle.
PAGE 7, ITEM
MEB'rlNG DATE
Lastly, this project far exceeds the requirements of State law to provide 10 percent of the total units in a project for
very Iow-income households. The proposed project also exceeds the required 30 years of affordability by providing
55 years of continued affordability. In order for SBCS to provide greater affordability and a longer term of affordability,
the requested density bonus, reductions to the parking standards, and financial assistance are required.
City/A,qency Risks and Miti,qation Measures
There are two areas of risk to the City and Agency. Listed below are these dsks and measures staff has
incorporated into the transaction to reduce these risks:
Risk 0ne- Land Conveyance with No Development of the Project: It is possible that the property will be
conveyed to SBCS and no project is built on the property.
M/t/gat/on: Council's approval of the conveyance of the property was conditioned upon obtaining all
required land use and environmental reviews and approvals and a firm commitment of all required funding
sources for the development of the project. SBCS has received a firm financial commitment from the State
and the County of San Diego. Favorable action by the Agency tonight regarding the $300,000 Agency loan
represents the final funding source required. Additionally, the Developer has significant experience and an
excellent track record with this type of development project. SBCS recently completed Trolley Terrace
Townhomes adjacent to this property, and in 1998 completed a 40 unit affordable rental development,
Cordova Village, in the Rancho del Rey community of Chula Vista. SBCS has successfully operated Casa
Nueva V/da, a transitional living program for homeless families, and Casa Nuestra, a transitional living
program for youths, for the last several years. Lastly, SBCS's performance under the Agreement will be
secured by a first and second priority deed of trust on the property.
Risk Two - No Repayment of Aqency Loan: The Agency will be providing $300,000 in the form of a 3 percent simple
interest loan to the developer to assist with the development costs of the project. Repayment of the loan will be
made from fifty percent (50%) of the residual receipts, which is the amount left over after all expenses are deducted
from the income received. Although there is a demand for these units and the vacancy rate is expected to be Iow,
the income to be generated from this project is expected to be Iow due to the nature of this project. Therefore, it is
not expected that repayment of the loan will be made from residual receipts.
Mitigation: Although, staff does not expect repayment of the City and Agency loans based upon
residual receipts, repayment can occur upon expiration of the project affordability covenants contained in
the Disposition, Development and Housing Cooperation Agreement if the City elects to take back the
property. Both loans will be secured by the property and the City/Agency will be in first and second pdodty
position.
The project approval documents contain other standard protections (insurance requirements, indemnities, etc.) which
will mitigate dsks to the City/Agency adsing form its involvement with this project. These documents have been
pattemed after other documents used for previously approved City/Agency financial assistance to SBCS for other
affordable housing projects. Substantially final drafts of these documents are on file with the Community
Development Department and are available for review.
Financial assistance will be provided from the Redevelopment Agency's Low and Moderate Income Housing Fund.
The Finance Department will be authorized to appropriate $300,000 in the form of a residual receipts loan secured by
a note and deed of trust. Proceeds of this loan shall only be disbursed upon execution of the Disposition,
Development and Housing Cooperation Agreement and all associated documents.
PAGE 8, ITEM ~
MEETING DATE 06/~-,~/99
As previously approved, the City will convey to SBCS property located at 744 Ada Street for the development of the
Project. rn consideration for the property, SBCS shall execute a promissory note to the City in the amount of
$167,600 (fair market value of the property) to be paid from residual receipts of the Project. Since the prope~ was
originally purchased with the City's HOME funds, the practical effect of this is a loan of HOME funds.
Once the City has issued a certificate of occupancy for all tbe units, the outstanding principal and interest on the City
and Agency Loans will be amortized over flay-five years, with simple interest of 3 percent per annum. Any
repayment of the Loans will be deposited propor~onately into the City's HOME Program and the Agency's Low and
Moderate-Income Housing Fund for further use in providing affordable housing programs.
Trolley Trestle is located within the Southwest Redevelopment Project Area and is being developed by SBCS, a non-
profit organization. Therefore, no tax increment revenue will be generated by this project for the Redevelopment
Agency.
The following exhibits are attached:
1. Location Map
2. Project Site Plan and Elevations
3. Summary of Disposition, Development and Housing Cooperation Agreement
4. Operation and Services Budget
5. Minutes of the Housing Advisory Commission (12/09/98)
6. Minutes of the Planning Commission (05/26/99)
H:\HOME\COMMDEV~STAFF.REP\06-22-99\Trolley Trestle-A113
and
COUNCIL RESOLUTION NO..~"~
JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
APPROVING A DISPOSITION, DEVELOPMENT AND HOUSING
COOPERATION AGREEMENT WITH SOUTH BAY COMMUNITY
SERVICES FOR THE DEVELOPMENT OF AN ELEVEN (11) UNIT
TRANSITIONAL HOUSING DEVELOPMENT FOR FOSTER CARE
GRADUATES, KNOWN AS TROLLEY TRESTLE, LOCATED AT 746
ADA STREET INCLUDING: (A) A $300,000 RESIDUAL RECEIPTS
LOAN FROM THE REDEVELOPMENT AGENCY'S LOW AND
MODERATE INCOME HOUSING FUND; (B) A $167,600 RESIDUAL
RECEIPTS LAND LOAN FROM THE CITY'S HOME FUNDS; (C)
PROJECT DESIGN PLANS; AND (D) A 38 PERCENT DENSITY
BONUS AND A REDUCTION IN REQUIRED PARKING;
APPROPRIATING $300,000 FROM THE REDEVELOPMENT
AGENCY'S LOW AND MODERATE INCOME HOUSING SET-ASIDE
FUND THEREFOR; AND ADOPTING AN ADDENDUM TO NEGATIVE
DECLARATION IS-93-07B
WHEREAS, South Bay Community Services (SBCS) has submitted an Affordable
Housing Review Application to the Community Development Department for the development of
an 11 unit transitional housing project (the "Project") for young adults who have completed the
County of San Diego Foster Care Program, known as "Trolley Trestle", located at 746 ADA Street
within the Southwest Redevelopment Area of Chula Vista as diagrammatically represented on
Exhibit A attached hereto ("Project Site"); and
WHEREAS, to facilitate construction of the Project, SBCS has requested a 38%
density bonus and a reduction in parking (19 spaces to 12 spaces), financial assistance from the
Redevelopment Agency in the amount of $300,000 and the conveyance of the property in the
form of a land loan of City HOME funds for $167,600; and
WHEREAS, the provision of affordable housing units like the Project is consistent
with and called for by the City's General Plan Housing Element, Consolidated Plan, and California
Health and Safety Code and because it will increase the City's supply of transitional housing for
the near homeless or potentially homeless population; and
WHEREAS, the City's Housing Advisory Commission did, on the 8th day of
December, 1998, hold a public meeting to consider the development of the project by SBCS; and
WHEREAS, the Housing Advisory Commission, upon hearing and considering all
testimony, if any, of all persons desiring to be heard, and considering all factors relating t the
development of the project, has recommended to the Redevelopment Agency that the project be
approved because the Commission believes that the Agency's financial participation in the
development of the Project will be a sound investment based upon Developer's ability to effectively
serve the City's housing needs and priorities as expressed in the Housing Element and the
Consolidated Plan and the cost effectiveness of the Agency's financial assistance based upon the
leveraging of such resources; and
WHEREAS, on December 8, 1998, the City Council conditionally approved the
conveyance of the Project site to SBCS for the development of the Project; and
WHEREAS, the Project includes the construction of one and two bedroom flats, a
common room, and a twelve-space parking lot, and since the Project is within the Southwest
Redevelopment Project Area, Redevelopment Agency final approval of the design plans is needed;
and
WHEREAS, on May 17, 1999 the Design Review Committee recommended that the
Redevelopment Agency approve the proposed Project and design plans subject to the conditions
listed below; and
WHEREAS, the Redevelopment Agency has been presented the Project and design
plans for the development of the Trolley Trestle Project depicted in Exhibit B, subject to conditions
listed below; and
WHEREAS, the Planning Commission held a public hearing on the Project on May
26, 1999 at which time the Planning Commission voted 5-0-2 to recommend that the City Council
and Redevelopment Agency grant the requested increase in density of thirty-eight (38%) and a
reduction in the parking requirement pursuant to California Government Code Section 65915,
Chapter 4.3, Density Bonuses and Other Incentives, to facilitate the construction of a maximum
of eleven (11 ) dwelling units for the residential project located at the northeast corner of Industrial
Boulevard and Ada Street in the City of Chula Vista; and
WHEREAS, from the facts presented to the Planning Commission, the Commission
recommended that the City/Agency determine that the Project is consistent with the City of Chula
Vista General Plan and that the public necessity, convenience and general welfare and good zoning
practice support the Project, and implements portions of State related density bonus and that the
granting of said density bonus and the reduction in the parking requirement does not adversely
affect the order, amenity, or stability of adjacent land uses; and
WHEREAS, the Disposition, Development and Housing Cooperation Agreement
(Development Agreement), specifying the terms of the Agency's financial assistance, the transfer
of the property from the City to SBCS, the density bonus and reduction in parking standards in
accordance with California Government Code Section 65915, SBCS's obligations to develop and
operate the Project, the affordability covenants to be imposed, and the terms for reimbursement
and disbursal of grant funds from the State of California has been negotiated with SBCS and is
being presented for the City/Agency's consideration; and
WHEREAS, in accordance with the requirements of CEQA, the Environmental
Review Coordinator has concluded that there would be no new significant environmental effects
resulting from the implementation of the Project other than those already analyzed under Negative
Declaration IS-93-07 previously adopted bythe City Council/Agency, therefore, the Environmental
Review Coordinator recommends an addendum to Negative Declaration IS-93-07 be adopted; and
2
NOW,THEREFORE, BE IT RESOLVED that the City Council and Redevelopment
Agency hereby adopts an addendum to Negative Declaration IS-93-O7B in the form presented.
BE IT FURTHER RESOLVED that the City Council and Redevelopment Agency of the
City of Chula Vista do hereby approve a Disposition, Development and Housing Cooperation
Agreement and related documents with South Bay Community Services for the development of an
eleven (11) unit Transitional Housing Development for Foster Care Graduates, known as Trolley
Trestle, located at 746 Ada Street, a copy of which shall be kept on file in the office of the City
Clerk, including (a) a $300,000 residual receipts loan from the Redevelopment Agency's Low and
Moderate Income Housing Fund; (b) a $167,600 residual receipts land loan from the City's HOME
funds.
BE IT FURTHER RESOLVED that the Mayor/Chair of the City of Chula Vista and the
Redevelopment Agency is hereby authorized and directed to execute said Agreement on behalf of
the City of Chula Vista.
BE IT FURTHER RESOLVED that the City Council and Redevelopment Agency do
hereby approve, in accordance with California Government Code Section 65915, the requested
increase in density of thirty-eight percent (38%) to allow the construction of a maximum of eleven
(11) dwelling units for the Project, and a reduction in the required parking spaces from nineteen
(19) spaces to twelve (12) spaces, to balance the financial feasibility of the affordable housing
project with the usual amenities found in a development of this type, subject to the following terms
and conditions:
1. SBCS shall construct and operate the Project as submitted to and approved
by the City Council and Redevelopment Agency, except as modified herein
and/or required by the Municipal Code, and as detailed in the Project
description.
2. The Project shall be maintained for a period of fifty-five years as transitional
housing for youths completing the San Diego County Foster Care program.
Any proposed conversion of the use to other transitional housing programs
or affordable very Iow-income family housing must be submitted to the
Community Development Department. Such request will require review and
approval by the Planning Commission, City Council and the Redevelopment
Agency during a public hearing of such bodies.
3. Upon expiration of the fifty-five year term of the required Disposition and
Development Agreement, or at such time of the conversion of the use is
requested, the Project is required to conform to all current zoning and
development standards at such time or receive approval of a variance from
such standards.
4. Residents shall reside at the Project for a maximum of two years, except in
limited circumstances as deemed appropriate by SBCS consistent with the
definition of transitional housing.
5. SBCS shall submit to the Community Development Department a Property
Management and Program Guidelines and Plan, to include but not be limited
to selection criteria, occupancy requirements, and program expectations for
the Project.
6. SBCS shall submit on an annual basis or when published a report from the
County of San Diego Children Services Bureau regarding an evaluation of
programs and services provided by the Project and any follow up of former
foster care youths residing or having resided at Project.
All such conditions shall be more particularly set forth in the Development
Agreement.
BE IT FURTHER RESOLVED the City Council and Redevelopment Agency hereby find
that the Project is consistent with the City of Chula Vista General Plan and that the public
necessity, convenience and general welfare and good zoning practice support the Project, and
implements portions of State related density bonus and that the granting of said density bonus and
a reduction in the parking requirement does not adversely affect the order, amenity, or stability of
adjacent land uses.
BE IT FURTHER RESOLVED in connection with the Design Plans for the Project, the
Redevelopment Agency does hereby find, order, determine and resolve as follows:
1. The proposed Project is consistent with the Southwest Redevelopment Plan
and Implementation Plan and shall assist in the elimination of blighting
influences by putting a vacant parcel to a higher and better use and will
provide quality housing for Iow income residents and thus contribute to
satisfy the needs and desires of the community and meet the requirements
of State law.
2. The Redevelopment Agency hereby approves the Project for development
of the 11-unit Trolley Trestle Project at 746 Ada Street in accordance with
design plans shown in Exhibit B and subject to the following conditions:
(a) Revised site plan and landscape plan shall be prepared separately
and submitted to staff for review and approval prior to submittal for
building permits.
(b) The trash enclosure shall be compatible with the building and the
applicant shall work with staff to determine how this shall be
accomplished.
(c) Details of the "Barbecue Area" including information about the
paving and any associated landscaping, shall be submitted to staff
for review and approval.
(d) A planting edge shall be provided alongside the trash enclosure to
provide screening from the street.
(e) The architect shall work with staff with regard to pedestrian
connections taking the following things into consideration:
4
(i} Access to the trolley.
(ii) Access to Ada Street.
(iii) Access along the driveway to the project.
(f) All Police Department requirements should be adhered to.
(g) All requirements of the Public Works Department shall be met at the
building permit stage.
(h) All requirements of the Fire Department shall be met at the building
permit stage.
BE IT FURTHER RESOLVED the Agency does hereby authorize the Finance
Director to appropriate $300,000 from the Agency's Low and Moderate Income Housing Set-Aside
Fund for the purpose of providing a loan in the amount of $300,000 to Developer for the
construction of the Project in accordance with the terms and conditions of the Development
Agreement,
Presented by Approved as to form by
Chris Salomone J it~Mttor~ e e~Yn cy Co~~
Director of Community Development d Ag
[H:/HOME/Attorney/RESQ/trolley,trs I June 17, 1999 (2;13pm)]
EXHIBIT A
County of ~
Palomar Trolley
Shopping Center
CHULA VISTA COMMUNITY DEVELOPMENT HOUSING DIVISION
PROJECT APPLICANT: PROJECT DESCRIPTION:
LOCATOR SBCS TRANSITIONAL HOUSING FORAFTER
FOSTER CARE YOUTH
PROJECT ADDRESSES:
North west corner of Ada St Request: Density bonus and additional
and Industrial Blvd incentive for the development of an 1 1 unit
SCALE: FILE NUMBER: transitional housing project for youths
NORTH No Scale None completing the foster care program
EXHIBIT B
00
IROLLEY BRIDGE
SOUTH BAY COMMUNI~ SERVIC~
TROLLEY BRIDGE
SOUTH BAY CONIMUNITY SI~R¥1CFr~S
TROLLEY BRIDGE ~ -~
SOUTH BAY COIM]'dUNITY SERVICES ~
EXHIBIT 1
Day Care
Palomar TroLley
Shopping Center
CHULA VISTA COMMUNITY DEVELOPMENT HOUSING DIVISION
PROJECT APPLICANT: PROJECT DESCRIPTION:
LOCATOR SBCS TRANSITIONAL HOUSING FOR AFTER
FOSTER CARE YOUTH
O PROJECT ADDRESSES:
North west comer of Ada St Request: Density bonus and additional
and Industrial Blvd incentive for the development of an 11 unit
SCALE: FILE NUMBER: transitional housing project for youths
NORTH No Scale None completing the foster care program
SOUTH BAY COIVlI~IUNITY SERVICES
EXHIBIT 2
TROLLEY BRIDGE
SOUTH BAY COMMUNI~ SERVIC~
EXHIBIT 2
TROLLEY BRIDGE
SOUTH BAY COI""I~IUNITY SERVICES
EXHIBIT 3
Summary of Disposition, Development and Housing Cooperation Agreement
The proposed Disposition and Deveropment Loan Agreement (Agreement) between the City, Agency, and $BC$
outlines the terms for disposition of the property, the Agency Loan, development of the project, and uses of the
project. The Agreement would obligate the City of Chula Vista to convey the property for the fair market value
($167,600) to $BC$, as evidenced by the execution of e promissory note in such amount with simpre interest of 3
percent and secured by the property. It also obligates the Redevelopment Agency of Chula Vista to lend three
hundred thousand dollars ($300,000) to SBCS for a period of fifty-five years at three percent (3%) simple interest.
The loans will be non-recourse and will be secured by the property.
Additionally, the Agreement has been prepared to outline the number of affordable units, the rental rates of these
affordable units, and the length of such affordability restrictions to satisfy the requirements of Califomia Government
Code Section 65915 (State Density Bonus Law) related to the requested 38 percent density bonus and reduction in
parking standards. The Agreement will incorporate the Design Resolution to be approved by the Agency. Lastly,
the Agreement will serve as the Agreement between SBCS for reimbursement and disbursal of the $246,250 in State
of California grant funds.
The Agreement will be recorded against the property and its resthctive covenants will run with the land. The
Agreement articulates the following resthctions and mechanisms for monitoring compliance:
1. Five (5) 1 Bedroom/1 Bath units shall be resthcted and affordable to extremely Iow or very Iow-income
former foster care youths.
2. Five (5) 2 Bedroom/1 Bath units shall be resthcted and affordable to extremely Iow or very Iow-income
former foster care youths.
3. One 2 Bedroom/1 Bath unit shall be reserved as a manager's unit and shall be exempt from income and
rent restrictions.
4. Rental rates shall be established at 30 percent of the households actual income and shall not exceed more
than 30 percent of 50 percent of the AMI for very Iow-income households.
5. Tenant income is certified at initial occupancy and each year thereafter.
6. Certified reports demonstrating compliance with the terms of affordability, occupancy and program
performance must be submitted to the City on a semi-annual basis.
7. The above conditions apply for a pedod of 55 years.
Approval of the Agreement and its recordation will assure that the developer and all successors will be aware of and
bound by this Agreement.
SBCS will, in turn, be obligated to improve the property with eleven (11) affordable rental units to be occupied by
those youths completing the County of San Diego's Foster Care Program.
EXHIBIT 4
Operation and Services Budget
Description I Total I Per Unit
Income
Rental Income 14,400 1,309
Foundations & Other Sources 197,000 17,909
Effective Gross Income 211,400 19,218
Expenses
Administrative 3,900 355
Utilities 14,140 1,285
Insurance and Taxes 6,200 564
Maintenance 10,500 955
Replacement Reserves 2,200 200
Payroll 48,800 4,436
Program 125,660 11,424
Total Operating Expenses 211,400 19,218
Net Operatin~l Income
EXHIBIT 5
CITY OF CHULA VISTA
MINUTES
HOUSING ADVISORY COMMISSION
Wednesday December 9, 1998 Housing Conference Room
3:30 p.m. Legislative Building
CALL TO ORDER/ROLL CALL - 3:45 P.M.
PRESENT: Chair Madrid, Members Lopez-Gonzalez, Clayton, Dufresne, Ahamed
ABSENT: Worth, Helton
STAFF: Community Development Specialist Ii Atwood, Community Development
Specialist I Hines, Administrative Secretary Hernandez
GUEST: Kathy Lembo, South Bay Community Services
1. MSC (Clayton/Madrid) to approve October 28, 1998 minutes {5-0-2 Worth, Helton absent).
MSC {Madrid/Ahamed) to excuse Helton and Worth from December 9, 1998 meeting due to illness and
other commitments (5-0-2 Worth, Helton absent).
Chairman Madrid stated that the Commission will move to item number three first.
3. AFTER FOSTER CARE TRANSITIONAL HOUSING -
Ms. Kathy Lembo gave a brief summary of the proposed project. Ms. Lembo stated that it was
originally envisioned that a 0.81 acre parcel located at the northwest corner of Ada Street and
industrial Boulevard, adjacent to the Trolley Terrace Townhomes be developed as a day care facility.
South Bay Community Services (SBCS) is now proposing the development of 11 unit transitional
housing project on the subject property for those young adults who have aged out of the County of
San Diego Foster Care Program. Approximately 300 young adults find themselves emancipated from
the system at age 18 or 19 and are expected to fend for themselves. Ms. Lembo indicated that SBCS
is seeing a number of these young adults who come into their homeless shelters who have children
themselves. Ms. Lembo mentioned that she went up to Los Angeles to view a project called "Bridges".
The project has 10 apartment buildings throughout Los Angeles County. This project specifically does
transitional housing for kids who turn 18 and have no support system to help them transition to
adulthood.
SBCS would like to do the first project in the County here in Chula Vista and sources of funding for the
project will include approximately $270,000 in a land purchase loan from the City, a request for a City
contribution of $300,000 and other sources which include the State of California, County of San
Diego, and private foundations. Ms. Lembo mentioned that these kids are not Chula Vista residents
because they are in the foster care system. SBCS hopes that once this project is completed and works
successfully, SBCS can go to other communities, find a non profit housing developer and a social
service agency, and open this type of transitional housing in other communities. The goal is to keep
these young adults out of the homeless population and the justice system and become self sufficient
and not dependent of the government.
Member Dufresne asked what would be the responsibility of these young adults as far as ~iving there.
Ms. Lembo responded that SBCS has a transitional living program lease which the same type of lease
will be used. The most important part of this ~ease is not only the rules and regulations of the program,
but developing an individualize plan that helps to transition them into independent living. The individual
has to keep on track with that plan as a condition of the lease. With their case manager they set their
goals, and the individual would be responsible for certain benchmarks along the way. Ms. Lembo
indicated that these young adults have to be working and or attending school. In addition, they will
pay approximately 10% of their income towards rent. That 10% will be saved until they leave the
program and it will be given back to them for moving expenses for an apartment.
MSC (Madrid/Lopez-Gonzalez) to accept staff's recommendation to approve the proposed 11 unit
transitional housing project for young adults (4-0-2 Worth, Helton absent).
Ms. Hines stated that this proposal will be brought back before this Commission again when staff
considers the financial component and assistance.
Member Clayton asked when does SBCS anticipate the completion of the project.
Ms. Lembo responded September or October of 1999.
2. MORTGAGE CREDIT CERTIFICATE PROGRAM -
Ms. Atwood gave an update on partnering with the County of San Diego and joining the San Diego
Regional Mortgage Credit Certificate Program (MCC). Over the years the City has had a successful
MCC program, however due to program changes that have been made by the California Debt Limit
Allocation Committee (CDLAC) for MCC allocations, the City of Chula Vista has experienced a decline
in the amount of MCC allocation awarded. Staff felt that if the City of Chula Vista partners with the
County of San Diego Regional Program, the City will have access to more MCCs through the pooling
process. The participating cities agree that the allocation received by the County of San Diego for the
San Diego Regional MCC program, will be distributed based on the "fair share" calculation. The major
benefits of participating in the San Diego Regional MCC program would be the availability of additional
MCCs in excess of our allotted "fair share" amounts, and savings in staff costs in administering our
current MCC program.
MSC (Madrid/Clayton) to accept the partnering with the County of San Diego and joining the San Diego
Regional MCC Program (5~0-2 Worth, Helton absent).
4. STAFF REPORTS -
Ms. Hines announced that Gateway Town Center will start their waiting list, and has set up a 1800
number for any resident who is interested in applying for residency there. The number is 1 800 290-
0277.
5. MEMBERS COMMENTS - None
6. ADJOURNMENT - 4:40 p.m. to the next schedule meeting of January 27, 1999.
R~corder, Alicia Hernandez
2
DRAFT
MINUTES OF THE
CITY PLANNING COMMISSION OF
CHULA VISTA, CALIFORNIA
Council Chambers
6:00 p.m. Public Services Building
Wednesday, May 26, 1999 276 Fourth Avenue, Chula Vista
ROLL CALL/MOTIONS TO EXCUSE:
Present: Chair Willett, Commissioners Casta~eda, Ray, Thomas, and O'Neill
Absent: Commissioners Hall and Tarantino
Staff Present: Jim Sandoval, Assistant Director of Planning and Building
Leilani Hines, Community Development Specialist
Glenn Goggins, Assistant City Attorney
PLEDGE OF ALLEGIANCE/SILENT PRAYER
INTRODUCTORY REMARKS: Read into the record by Chair Willett
APPROVAL OF MINUTES:
MSC (O'Neill/Thomas) (4-0-3-0) to approve minutes of April 14, 1999 as submitted. Motion
carried.
MSC (Castaneda/Ray) (4-0-2-1) to approve minutes of April 28, 1999 as submitted. Motion
carried with Commissioner O'Neill abstaining.
ORAL COMMUNICATIONS: No public input.
1. PUBLIC HEARING: Consideration of a 38 percent density bonus increase and a reduction
in the required parking for an 11 unit transitional housing
development, known as Trolley Trestle, located at 746 Ada Street to
be developed by South Bay Community Services.
Background: Leilani Hines, Community Development Specialist reported that the applicant,
South Bay Community Services, is requesting approval of a 38% density bonus and a reduction
in the parking requirements to facilitate the construction of an 11 unit affordable housing
development for young adults completing the County of San Diego Foster Care program. The
project is located in the Southwest Redevelopment Area.
The site is strategically situated in an area that is served by public transportation, the Palomar
trolley stop, commercial centers, an elementary school, the County of San Diego Family
Resource Center and a proposed day care facility. Therefore, it is staff's opinion that the site is
appropriate for transitional housing and is compatible with surrounding land uses.
Planning Commission Minutes - 2 - May 26, 1999
On December 8, 1998, the City Council conditionally approved conveyance of this property for
the fair market value of the property ($167,600) to South Bay Community Services for this
project, but was conditioned based on their ability to obtain land use and environmental reviews
and approval, as well as a firm commitment from all of their funding resources. The project will
be owned and operated by SBCS, a non-profit organization.
The project contains 11 units, a common room, and 12 parking spaces, and the purpose of the
public hearing is to consider a 38% density bonus, going from 8 to 11 units, ten units which will
be occupied by very Iow income emancipated foster youth, and one unit will be occupied by
an on-site property manager. Additionally, the applicant is requesting a reduction in the parking
requirements from 19 to 12 spaces (one parking space per unit plus one handicapped parking
space).
Tentatively scheduled for June 8t", the Redevelopment Agency and City Council will be
considering a request for financial assistance approving a loan to the applicant for $300,000 to
meet the remaining financing of the project.
State density bonus law states that if a developer decides to designate a portion of their units as
affordable to Iow or very Iow income households, that Cities have the responsibility of either
providing a minimum 25% density bonus and at least one additional incentive, or make a finding
that it is not required, or as an alternative provide financial incentives to the developer.
Staff feels that the applicant's requests are justified in that the proposed land use is compatible
with surrounding land uses, all of the units will be restricted to extremely Iow income, and it
meets the housing needs priority for the City.
The restrictive 55-year term of affordability exceeds the minimum 30 years under State law. The
reasoning for this is that typically many of the funding sources require a 52 to 55 year term of
affordability. The City's standard practice when financially participating in a project is to require
a 55-year term of affordability.
The security of the City and Agency investment is to execute a housing cooperation agreement
for the density bonus and incentives which acts as a regulatory instrument to ensure that these
units remain affordable for the specific period of time. A Disposition and Development
Agreement (DDA) will be executed for the City and Agency loans, which governs the
development and use of this project. The DDS would also incorporate the density bonus and
design plans and would address the conversion of these units to market rate family housing.
Because of the City's financial participation, it would always be required that this remains a Iow-
income project. It may be able to go to family housing rather than transitional housing, but it
would require approval by the City and the Agency and there would need to be a public hearing.
Commissioner Castaneda asked if any tax credit sales were involved with the project.
Ms. Hines stated that this project would be completely financed through the City Agency
participation, County of San Diego, HOME funds and State funds and there would be no tax
credits.
Planning Commission Minutes - 3 - May 26, 1999
Chair Willett asked if the City is imposing a performance bond in case the developer defaulted.
Glen Goggins stated that in past dealings with for-profit developers, the City has required a
performance bond for the larger multi-family projects to secure performance and typically tax
credits are sold.
Ms. Hines stated that a performance bond has not been required for this project because the
funding sources are firm commitments; they are loans and there will be no debt service on these
loans, if in the future it were to convert to a Iow-income family housing project, the City might
be able to receive residual receipts from the project. However, as a facility for a near homeless
youth population, the likelihood of receiving residual receipts is very unlikely.
At the end of the term of affordability, the loan will become due and payable. At that time, it
would be expected that it would convert to market-rate housing.
Commission Discussion:
Commissioner O'Neill expressed concern and stated his reluctance in supporting a density bonus
and parking reduction, thereby creating a legal non-conforming use at the end of the 55-year term
of the loan.
Glen Goggins stated that the DDA and the Housing Cooperation Agreement would include a
provisions that would require appropriate permitting, approval and public hearing before any
conversion can be approved.
Commissioner O'Neill stated he would like to see language that would require it meet the current
standards for multi-family occupancy in terms of all life amenities.
Commissioner O'Neill asked for a breakdown on the occupancy.
Ms. Hines responded that the developer will address those requirements. However, the City's
standard agreement provides for a maximum allowance of two people per bedroom.
Commissioner Thomas stated that in his opinion the City's financial participation, in essence, ~s
a gift and questioned the appropriateness of the use of these funds for this particular project.
Public Hearing Opened 7:15
Chris Moxem, South Bay Community Services, responded to questions and addressed
Commissioner O'Neill's question by stating that the I bedroom unit will be for one adult with
the capability of having 1 small child. The 2 bedroom unit will be occupied by two same-sex
individuals (one person per bedroom).
Commissioner O'Neill expressed concern with the transitioning period extending beyond a two-
year limit, and asked what, if any, disincentives there are for not allowing a single parent with
one child from having another child thereby requiring that she be moved into a two-bedroom
unit.
Planning Commission Minutes - 4 - May 26, 1999
Mr. Moxem responded that each resident will have a case manager who will be working with
them to develop short and long-term goals. If a single parent were to have more than one child,
they would be moved to a two bedroom unit if one were available, otherwise SBCS would assist
them in finding living arrangements elsewhere.
Mr. Moxem further stated that SBCS's mission is to work with individuals towards self-sufficiency
and it would be defeating their mission to see people, such as those who will be residents of this
project, remain stagnant in their self-development and become permanent residents of this
facility.
Commissioner O'Neill stated that his experience and observation has been that these types of
projects require high-maintenance and asked who is going to maintain the property to ensure
its safety and up-keep.
Mr. Moxen responded that they have solicited and are securing funding through private grants
and foundations for this very purpose.
Commissioner Castaneda stated that although he agrees with a number of Commissioner
O'Neill's comments. He reminded the Commission that the financial aspects of this project are
not within the Commission's purview and lies solely within the Redevelopment Agency and City
Council. The money that the City is intending to use for the project is Low and Moderate
Housing funds, which can only be used for this type of purpose.
Commissioner Castaneda asked how long ago did the City acquire this property.
Mr. Goggins responded that the property was purchased from a private property owner
approximately four years ago with the expectation that it would be developed into a community
serving purpose such as housing and/or child care facility.
Commissioner Castaneda stated that in his opinion the proposed land use is aligned with the
City's intent for this property. However, he expressed concern with not having a clear
requirement establishing a finite time period that residents are allowed to stay. It needs to be clear
that this is strictly transitional housing for a period not to exceed two years.
Commissioner Castaneda asked what, if any, requirements or restrictions would be imposed
under the development agreement with respect to changing the nature of occupancy, for
example, from transitional housing for post foster care children, to drug rehabilitation or other
"near homeless" population.
Ms. Hines responded that the language in the DDA states that they will be allowed to use this
property for transitional housing post foster care children or other needed transitional housing
programs, which could include other near-homeless population. A conversion to another use
would only be allowed if it could be demonstrated that the need no longer exists, or there are
no funding sources for this type of use. A conversion to family housing would require approval
from the City and would go through the public hearing process.
Commissioner Castaneda stated since bringing this project into fruition is a joint effort by various
Planning Commission Minutes - 5 - May 26, 1999
jurisdictions because of the funding and land gift; who would be the owner of this project should
SBCS cease to exist.
Ms. Hines stated that the City would have a lien on the property for $167,000 and would be in
a first priority position.
Chair Willett stated that it was his understanding that the County conducts annual or bi-annual
reviews of transitional facilities similar to this, and recommended that the City request to receive
a copy of the report, if it does not already receive it.
Glenn Goggins stated that the typical Agency loans are structured with some prospect for
repayment out of project residual receipts. Whether or not there will be residual receipts
depends on whether the project has any income generating capacity and what the other funding
sources are. There is always a prospect of repayment on loans, which are secured by a Deed of
Trust, but there is no guarantee that the City will be repaid. The specifics of this project are
presently being worked out and finalized.
Although the financing of the project is not under the Planning Commission's jurisdiction, it will
be part of the overall packet that will be considered by the Redevelopment Agency when they
are asked to render the final commitment to the project.
Commissioner Ray asked if any of the developers in the eastern territory were approached to ask
them to fund this program and receive credits for their units of affordable housing.
Ms. Hines responded that they did not approach any developer to receive credits for their
inclusionary housing. She further stated that the City's obligation is not only to provide for
affordable housing through the inclusionary housing requirement, but to go beyond the
inclusionary housing requirement to meet the City's larger affordable housing goals. The City
actively looks for other projects that may not necessarily fit the inclusionary housing program,
but do meet our other affordable housing goals.
Mr. Goggins also commented that the intent of the inclusionary housing requirements is to
develop affordable housing within the development and not to look to other areas of the City to
provide for such housing so that a balance of housing for all economic groups is provided
throughout the City.
Public Hearing Closed 8:30.
MSC (O'Neill/Castaneda) (5-0-2-0) that the Planning Commission adopt the Second Addendum
to Negative Declaration IS-93-07B and adopt resolution recommending that the City Council
and Redevelopment Agency approve the requested 38 percent increase in density and
deviations from the parking requirements based on the findings and subject to the conditions
contained in the draft City Council and Agency resolution, and include the following
recommendations:
1. That at such time a change in use is approved or at the end of the 55-year term, the project
would have to meet the then current zoning standards or receive approval of a variance
from such standards.
Planning Commission Minutes - 6 - May 26, 1999
2. That there be a time-certain, not to exceed two years, that a resident may live on premises,
except in limited circumstances as deemed appropriate by SBCS.
3. That staff be able to review and approve an operating plan and regulations for residents;
and
4. That any variation in use during the 55 year period from that of transitional post foster care
program children would require approval by the Planning Commission and a public
hearing.
5. That the City receive on an annual basis or when published a report from the County of San
Diego Children Services Bureau regarding an evaluation of programs and services provided
by the Project and any follow up of former foster care youths residing or having resided
at Proiect.
Motion carried.
DIRECTOR'S REPORT:
COMMISSIONERS COMMENTS:
The Commission expressed a desire to have a workshop on affordable housing.
ADJOURNMENT at 8:45 p.m. to the Planning Commission meeting of June 9, 1999.
Diana Vargas, Secretary to Planning Commission