HomeMy WebLinkAboutRDA Packet 2003/11/18 CI~' OF
TUESDAY, NOVEMBER 18, 2003 CHU[~ VISTA COUNCIL CHAMBERS
6:00 P.M. PUBLIC SERVICES BUILDING
(immediately following the City Council meeting)
MEETING OF THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
CALL TO ORDER
ROLL CALL
Agency Members Davis, McCann, Rindone, Salas; Chair Padilla
CONSENT CALENDAR
The staff recommendations regarding the following item(s) listed under the Consent Calendar will be enacted by the
Agency/Council by one motion without discussion unless an Agency/Council member, a member of the public or City
staff requests that the item be pulled for discussion. If 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 Action items. Items pulled
by the public will be the first items of business.
1. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
ADOPTING FIFTH AMENDMENT TO THE GATEWAY CHULA VISTA PROJECT
DISPOSITION AND DEVELOPMENT AGREEMENT (DDA) AND AUTHORIZING THE
AGENCY TO ENTER INTO A THREE YEAR LEASE FOR 17,500 SQUARE FEET OF
OFFICE SPACE - The City and Redevelopment Agency approved the original
Disposition and Development Agreement (DDA) for the Gateway Chula Vista project
on June 6, 2000, and several subsequent amendments for the development of a
350,000 sq. ft. Class A office and retail project at the northwest corner of Third
Avenue and "H" Street in the Town Centre I Redevelopment Project Area. The
additional leased space secured by this Fifth Amendment will allow the construction
loan to close for Phase II of the project with existing favorable terms. [Community
Development Director]
STAFF RECOMMENDATION: Agency adopt the resolution.
ORAL COMMUNICATIONS
This is an opportunity for the generar public to address the Redevelopment Agency/City Council on any subject matter
within the Agency/Council's jurisdiction that is no~t an item on this agenda. (State law, however, generally prohibits the
Redevelopment Agency/City Council from taking action on any issues not included on the posted agenda.) If you wish
to address the Agency/Council on such a subject, please complete the "Request to Speak Under Oral Communications
Form" available in the lobby and submit it to the City Clerk prior to the meeting. Those who wish to speak, please give
your name and address for record purposes and follow up action.
PUBLIC HEARING
The following item(s) 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.
2. CONSIDERATION OF A SPECIAL USE PERMIT, SUP-04-01 FOR A RETAIL, OFFICE,
AND RESIDENTIAL MIXED USE PROJECT AT 224 THIRD AVENUE WITHIN THE
TOWN CENTRE I REDEVELOPMENT PROJECT AREA - Condominium Pushers
Incorporated proposal to develop a four-story mixed-use project, referred to as The
Courtyard, at 224 Third Avenue within the "heart" of the downtown core. The
proposed 20,000 sq. ft. building consists of two retail suites on the first floor, four
office suites on the second floor, four residential condominium units on the third and
fourth floors, and an underground parking garage. [Community Development Director]
STAFF RECOMMENDATION: Redevelopment Agency adopt resolutions a and b.
a. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA APPROVING A SPECIAL USE PERMIT, SUP-04-01 WITH CONDOMINIUM
PUSHERS INCORPORATED FOR THE DEVELOPMENT OF A RETAIL, OFFICE,
AND RESIDENTIAL MIXED USE PROJECT AT 224 THIRD AVENUE
b. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA APPROVING AN OWNER PARTICIPATION AGREEMENT WITH
CONDOMINIUM PUSHERS INCORPORATED FOR THE DEVELOPMENT OF A
RETAIL, OFFICE, AND RESIDENTIAL MIXED USE PROJECT AT 224 THIRD
AVENUE
3. DIRECTOR/CITY MANAGER'S REPORTlS)
4. CHAIR/MAYOR REPORTlS)
5. AGENCY/COUNCIL COMMENTS
ADJOURNMENT
The meeting will adjourn to an adjourned meeting of the Redevelopment Agency on
November 25, 2003, at 6:00 p.m., immediately following the City Council meeting in the
City Council Chambers.
AMERICANS WITH DISABILITIES ACT
The City of Chula Vista, in complying with the Americans with Disabilities Act (ADA), request individuals who require
special accommodates to access, attend, and/or participate in a City meeting, activity, or service request such
accommodation at least 48 hours in advance for meetings and five days for scheduled services and activities. Please
contact the Secretary to the Redevelopment Agency for specific information at (619) 691-5047 or Telecommunications
Devices for the Deaf (TOO) at (619) 585-5647. California Relay Service is also available for the hearin9 impaired.
Redevelopment Agency, November 18, 2003
Page 2
REDEVELOPMENT AGENCY AGENDA STATEMENT
ITEM NO.: /
MEETING DATE: 1 1/18/o3
ITEM TITLE: RESOLUTION ADOPTING FIFTH AMENDMENT TO THE GATEWAY
CHULA VISTA PROJECT DISPOSITION AND DEVELOPMENT
AGREEMENT (DDA) AND AUTHORIZING THE AGENCY TO ENTER
INTO A THREE YEAR LEASE FOR 17,500 SQUARE FEET OF OFFICE
SPACE
SUBMITTED BY: COMMUNITY DEVELOPMENT~ DIRECTOR ~//~
REVIEWED BY: EXECUTIVE DIRECTOR ~
4/STHS VOTE: YES
BACKGROUND
The City and Redevelopment Agency approved the original Disposition and Development
Agreement (DDA) for the Gateway Chula Vista project on June 6, 2000, and several subsequent
amendments for the development of a 350,000 square foot Class A office and retail project at the
northwest corner of Third Avenue and 'H' Street in the Town Centre I Redevelopment Project Area.
The additional leased space secured by this Fifth Amendment will allow the construction loan to
close for Phase II of the project with existing favorable terms.
With the construction loan financing fully funded before the end of calendar year 2003, the Agency
is recommending that the DDA be amended to provide for a three year lease of 17,500 square feet
of office space by the Agency that is expected to be at no new cost to the City or Agency. The
amendment will provide for 1) priority re-leasing of the City space to private par~ies as new leases
come on line and, 2) will amend the current Agency participation so that the Third Agency
Installment payment is reduced on a pro-rata basis by the lease payments, resulting in no net co~ to
the City or Agency.
RECOMMENDATION
Approve the I~esolution adopting the Fifth Amendment to the Gateway Chula Vista Project
Disposition and Development Agreement (DDA) and authorize the Agency to enter into a three
year lease for 17,500 square feet of office space.
BOARDS/COMMISSIONS RECOMMENDATION
Not applicable.
/-/
PAGE 2, ITEM NO.:
MEETING DATE: 11/18/03
DISCUSSION
The Developer has proposed that the Agency lease 17,500 square feet of office space in Phase II
of the Gateway Chula Vista Project to achieve the 50% lease-up requirement necessary to obtain
funding of the construction loan for this Phase. The developer is working with Corus Bank to fund
the $28,000,000 construction loan. The Agency team has insisted that the lease be structured so
that there will be no net cost to the Agency. In order to proceed, the existing DDA needs to be
amended to provide for a shift in remaining Agency participation as more fully described below.
This approach is similar to that undertaken with the Agency lease in Gateway Phase I, which also
resulted in no net cost to the Agency and helped accelerate the approval of construction financing
for that Phase of the project.
Basic Lease Premises:
The City team has required that the proposed lease be structured to provide for the lowest
possible lease rate that will still allow for full funding of the Corus Bank construction loan. The
lease will also provide an opportunity for the City to conduct due diligence on current project
ownership, final design and materials for Phase II, and the current status of pre-leasing.
Lease Terms:
1. The proposed lease is for 17,500 square feet at a monthly rental rate of $2.50 plus
utilities.
2. The term of the lease is for up to three years with maximum obligation of $1,553,500 (the
amount of the Agency's Third Installment obligation under the DDA).
3. The lease incept date would be tied to the completion of Phase II (estimated to be
November 1,2004).
4. Agency leased space will be re-leased on a first priority basis as new leases are signed.
Fifth Amendment to the DDA:
The following are the specific changes to the Disposition and Development Agreement necessary
to process the City lease pursuant to the terms and conditions specified by the Agency:
1. The lease only becomes effective upon the "closing" and full funding of the Corus Bank
construction loan for Phase II. Lease payments begin only upon construction completion
and occupancy of Phase II.
2. On a priority basis, pro-rata portions of the Phase II Agency lease will be re-leased to
private parties as building lease-up progresses.
3. Agency lease payments will reduce the pending Third Installment Payment.
With these provisions in effect, staff is confident that the proposed lease will result in the full
funding of the project construction loan, completion of construction on time and as scheduled,
retention of the project's high architectural quality without any cost to the City or Agency. This
PAGE 3, ITEM NO.: I
MEETING DATE: 11/18/03
action also sends a clear signal to the development community that the City is serious about
redevelopment of it's inner core and is prepared to take the steps necessary to provide the
flexibility developers need in the current economic atmosphere.
In addition to the lease, this amendment also authorizes and acknowledges the transfer of Phases
I, II and III, and all DDA obligations into three separate "single-purpose" development entities.
This was a requirement imposed by the project lenders. Each entity still reflects the 25%
minimum membership and management control by Coast Pacific Properties, LLC (which includes
James V. Pieri as managing member).
FISCAL IMPACT
There are no direct fiscal impacts from the approval of this action. An appropriation for the Third
Installment Payment will be included in the Agency FY 04-05 budget request
ATTAC HME NTS
A - Fifth Amendment to Disposition and Development Agreement (in DRAFT form)
B - Developer's Lease Proposal
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/-3
RESOLUTION NO.
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
ADOPTING FIFTH AMENDMENT TO THE GATEWAY CHULA VISTA PROJECT
DISPOSITION AND DEVELOPMENT AGREEMENT (DDA) AND AUTHORIZING THE
AGENCY TO ENTER INTO A THREE YEAR LEASE FOR 17,500 SQUARE FEET OF
OFFICE SPACE
WHEREAS, the Redevelopment Agency and the Developer (Gateway Chula Vista, LLC) are parties
to that certain Disposition and Development Agreement dated June 6, 2000 ("DDA"), as amended by that
certain First Amendment to Disposition and Development Agreement dated September 25, 2002 ("First
Amendment"), as further amended by that certain Second Amendment to Disposition and Development
Agreement dated December 17, 2001, ("Second Amendment"); and as administratively amended by that
certain Third Amendment to the Disposition and Development Agreement dated April 16, 2002 and by that
certain Fourth Amendment to the Disposition and Development Agreement dated April 1, 2003 (the First
Amendment, the Second Amendment, the Third Amendment and the Fourth Amendment are collectively
referred to herein as the "DDA'); and
WHEREAS, the DDA relates to redevelopment, development, and operation of a phased First Class,
First Quality 344,000 square foot mixed-use commercial/office project with restaurant and retail
components and common areas, including a five-tier 1300 space parking structure that spans all Phases of
the Project; specifically the retail component will include up to 81,000 square feet with a restaurant, deli,
coffee shop, financial institution, and other retail uses, Phase I will include 102,237 square feet in a five
story office tower at the easterly portion of the Site, Phase II will include 125,000 square feet in a six story
office tower, and Phase III will include 117,000 square feet in a six story office tower at the westerly
portion ("Project"); and
WHEREAS, timing of construction of the Project's Phase II improvements has been delayed based
upon overall market conditions and demand for office and retail space, the lingering effects of the recession
on financial lending institutions, and by the unavoidable impacts of the terrorist attacks in 2001. As a
result, the developer is requesting a lease with the City to assist with completion of construction financing
("Lease"); and
WHEREAS, Agency is willing to enter into Developer's proposed Lease because (1) the project will
benefit from improved access to financing, (2} the proposed lease does not alter the original DDA
framework and projected timing for Agency financial participation; and (3) the project's continued success
is considered an important keystone to the overall success of the City's downtown redevelopment effort.
NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of Chula Vista does
hereby approve the Fifth Amendment to the Gateway Chula Vista Project Disposition and Development
Agreement (DDA) in the form presented, with such minor modifications as may be approved or required by
the Agency Attorney.
BE IT FURTHER RESOLVED, the Agency approves the Lease with Developer on the terms
presented, in substantially the same form as the lease entered into as part of the Second Amendment, in a
final form to be approved by the Agency Attorney.
BE IT FURTHER RESOLVED, the Chairman is authorized and directed to execute final forms of the
Fifth Amendment and the Lease, and Agency staff is authorized and directed to take all reasonable actions
necessary to implement same.
PRESENTED BY APPROVED AS TO FORM BY
Director of Community Development rney
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ATTACHMENT A
FIFTH AMENDMENT TO
DISPOSITION AND DEVELOPMENT AGREEMENT
(Phase II of Gateway Project for Lease of Office Space)
This FIFTH AMENDMENT TO DISPOSITION AND DEVELOPMENT
AGREEMENT ("Fifth Amendment") is entered into as of November 18, 2003 ("Date of Fifth
Amendment") by and between the REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA, a public body corporate and politic ("Agency") and "GATEWAY CHULA
VISTA I, LLC, a California limited liability company ("Developer").
A. Agency and Developer are parties to that certain Disposition and Development
Agreement dated June 6, 2000 ("DDA"), as amended by that certain First Amendment to
Disposition and Development Agreement dated September 25, 2001 ("First Amendment"), that
certain Second Amendment to Disposition and Development Agreement dated December 17,
2001 ("Second Amendment"), that certain Third Amendment to Disposition and Development
Agreement dated April 1, 2002 ("Third Amendment"), and that certain Fourth Amendment to
Disposition and Development Agreement dated April 1, 2003 ("Fourth Amendment"),
(collectively, the DDA, the First Amendment the Second Amendment, the Third Amendment
and the Fourth Amendment are hereinafter referred to as the "DDA").
B. The DDA relates to the redevelopment, development and operation of a phased
First Class, First Quality 344,000 square feet mixed-use commercial/office project with
restaurant and retail components and common areas, including a five-tier 1,300 space parking
structure that spans all phases of the project. Specifically, the retail component will include up to
81,000 square feet with a restaurant, deli, coffee shop, financial institution and other retail uses.
Phase I included 100,259 square feet in a five story office tower at the easterly portion of the
site; Phase II will include 129,203 square feet in a six story office tower; and Phase III will
include 117,000 square feet in a six story office tower at the westerly portion ("Project").
C. Capitalized terms used in this Fifth Amendment are defined and set forth in the
DDA, unless separately defined in this Fifth Amendment, including attachments thereto and
hereto.
D. The financial assistance to be provided by Agency to Developer pursuant to the
DDA includes the Agency Participation to be paid in up to five (5) separate installment
payments, with the third installment divided into two (2) sub-installments, each with specific
Conditions Precedent thereto, as set forth therein.
E. Pursuant to the First Amendment and Second Amendment, Agency disbursed to
Developer the First Installment in the amount of One Million Nine Hundred Thousand Six
Hundred and Seven Dollars ($1,900,607). The Second Installment, an amount up to One Million
Seven Hundred Three Thousand Three Hundred Ninety Two Dollars ($1,703,392), has not yet
been disbursed and shall be disbursed by Agency to Developer upon issuance to Developer of
building approvals and permits for the Phase II Improvements and other terms and conditions
outlined in paragraph 3 of the Fourth Amendment. The Third Installment of up to One Million
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Five Hundred Fifty Three Thousand Five Hundred Dollars ($1,553,500) shall be disbursed by
Agency to Developer in two "sub-installments" pursuant to the terms and conditions set forth in
paragraph 4 of the Fourth Amendment and further described below in Recital F.
F. Pursuant to paragraph 4 of the Fourth Amendment, the Third Installment includes
(i) a First Sub-Installment not to exceed $776,750; and (ii) and a Second Sub-Installment not to
exceed $776,750 (totaling no more than $1,553,500) to be paid after the Conditions Precedent to
the Third Installment Payment outlined in paragraph 4 of the Fourth Amendment are satisfied.
G. Developer represents it is in the process of obtaining the CORUS Construction
Loan of approximately Twenty Eight Million Dollars ($28,000,000) for Phase II of the Project
and the proceeds thereof are sufficient to complete construction of the Phase II Improvements.
H. By this Fifth Amendment Developer desires to hold back the Third Installment
funding described above in Recitals E and F in consideration for the Phase II Agency Lease
(defined herein) and payment of rent thereunder, as hereinafter more fully described, in order for
the Developer to achieve Construction Loan Full Funding Status.
I. Agency desires to accommodate Developer's request by this Fifth Amendment
and to enter into a lease for 17,250 rentable square feet of office space in Phase II of the Project,
substantially in the form of the "Phase II Agency Lease" attached hereto as Attachment No.
and fully incorporated herein by this reference, subject to the terms and conditions herein set
forth and specifically to the Conditions Precedent to Agency Lease, as hereinafter defined and
set forth, thereby amending and modifying the timing of and Conditions Precedent to the Third
Installment Payment of Agency Participation under the DDA.
J. The Phase II Agency Lease will become effective and a performance obligation of
Agency only upon (and on the date of) satisfaction by Developer of certain Agency Lease
Conditions Precedent, as defined and described hereinafter, including Developer achieving
Construction Loan Full Funding Status ("Lease Effective Date").
K. As Developer continues its leasing activities for the Phase II Improvements, pro
rata portions of the Phase II Agency Lease will be released and terminated pursuant to a partial
lease termination document on a form approved by Agency ("Partial Lease Termination"). Upon
execution of each Partial Lease Termination, using the applicable form thereof, the Agency shall
have no continuing or further obligations under the Phase II Agency Lease with respect to the
terminated and released portion of the Premises upon the date of execution of the Partial Lease
Termination Agreement.
L. The Agency will be authorized by Developer pursuant to this Fifth Amendment to
hold back the Third Installment (i.e., the amounts described above in Recitals E and F) according
to the terms and conditions described herein. The Agency's hold-back of the Third Installment
shall be reduced dollar for dollar through the Agency's payment of Rent under the Phase II
Agency Lease and Developer draw downs triggered by additional leases of Phase II as provided
in Section 3, below.
/-6,
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NOW THEREFORE, in consideration of the foregoing recitals, which are a substantive
part of this Fifth Amendment, the covenants and consideration contained and exchanged herein,
Agency and Developer agree as follows:
Section 1. AGENCY LEASE OF PHASE II OFFICE SPACE. Subject to the
terms and conditions herein, Agency agrees to lease 17,250 square feet of office space in Phase
II of the Project ("Premises") pursuant to the terms and conditions of the Phase II Agency Lease
to be executed by Developer, as Landlord, and Agency, as Tenant, substantially in the form of
Attachment No.
1.1 Lease Terms. The Phase II Agency Lease terms include, without
limitation: (i) the specific location of the Office space ("Premises"); (ii) a tenant improvement
allowance of $603,750.00 ($35.00 x 17,250 square feet); (iii) rent, which shall not exceed $2.50
per square foot "gross" rent, plus utilities (Developer, as Landlord, pays all costs associated with
the lease, including without limitation, insurance, common area costs, maintenance, repairs, etc.),
which rent equates approximately to a monthly rental payment of Forty Three Thousand One
Hundred Twenty Five Dollars ($43,125) ($2.50 x 17,250 square feet) for a total obligation under
the Agency Lease not to exceed One Million Five Hundred Fifty Three Thousand Five Hundred
Dollars ($1,553,500) ("Rent"); (iv) a term not to exceed thirty-six (36) months with one (1) thirty
six (36) month option to renew ("Term") with such Term commencing on the date Developer
tenders the Premises to Tenant ("Lease Commencement Date").
1.2 Lease Effective Date. The Phase II Agency Lease shall become
effective and be a contractual obligation of the Agency only and upon the date on which
Developer achieves the following "Agency Lease Conditions Precedent" set forth in subsections
(a) through (f), inclusive:
(a) Agency staff has completed the due diligence review of the
status of construction of the Phase II Improvements, including Developer consent and access to
all relevant records, plans and specifications and other documents relating to construction and
development of the Phase II Improvements to be constructed and completed;
(b) Developer has obtained a written consent or
acknowledgment from CORUS Financial, in a form reasonably satisfactory to Agency legal
counsel, that the Agency Lease will cause Developer to close and immediately thereafter achieve
Construction Loan Full Funding Status;
(c) Contractor has provided to Developer a written agreement
or other binding commitment to continue and complete construction of the Phase II
Improvements for a guaranteed maximum price. Said maximum price, not to exceed
$ , shall be sufficient to fully complete construction of the Phase II
Improvements.
(d) Agency has reviewed and approved the CORUS
Construction Loan documents;
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(e) Developer has achieved Construction Loan Full Funding
Status; and
(f) Developer is not in default under the DDA, including
without limitation, compliance with applicable times for performance as set forth in the Schedule
of Performance, as amended, and all representations and warranties of Developer contained
herein are true and correct in all material respects, and all applicable Conditions Precedent as set
forth in the DDA are satisfied. Developer represents and warrants that it is not aware of any
default (by actual or constructive notice), nor is there any default pending, under (a) the DDA;
(b) the CORUS Loan documents; (c) Gateway I; or (d) any other agreement to which Developer
is a party and which relates to Phase II of the Project.
Section2. RE-LEASE AND RELEASE OF PREMISES. Concurrent with
Developer reaching agreement with a prospective tenant for Phase II space, Agency may elect to
allow such tenant to lease all or a portion of the Premises and as such occurs pro rata portions of
the Agency Lease shall be released and terminated between Agency and Developer.
Section 3. DEVELOPER HOLDBACK OF THIRD INSTALLMENT
PAYMENT OF AGENCY PARTICIPATION CREATES A "LEASE GUARANTEE"
FUND. In consideration of the Agency Lease, Developer authorizes the Agency to hold back
the Third Installment Payment of Agency Participation. The Agency hold-back shall be reduced
dollar for dollar through the Agency's payment of Rent under the Agency Lease. As and in the
event sufficient square footage of Phase II space is newly leased and released as provided in
Section 2 above, such that the Agency's remaining Rent obligation under the Agency Lease is
equal to or less than the original Agency hold-back amount (not reduced by payments of rent
under the Agency Lease) ("Break-Even Square Footage Release"), Developer shall be entitled to
additional draw-downs against the Agency Hold-Back equivalent to the proportionate reduction
in the Agency's remaining Lease obligation caused by the release of space in excess of the
Break-Even Square Footage Release.
[EXAMPLEI
To the extent the Agency is required to make Rent payment under the Phase II Agency
Lease in excess of the original Agency Hold-Back amounts, Developer knowingly and expressly
agrees such excess payments may be offset by Agency, as elected by Agency in its sole and
absolute discretion, against any other amount owed by Agency to Developer under the DDA,
including any amounts due from the Third Installment Payment of Agency Participation or any
subsequent installment payment of Agency Participation with respect to Phase III of the Project.
Section 4. TRANSFER OF DDA AND PARCELS TO DEVELOPER ENTITY
FORMED FOR EACH PHASE. For the purposes of satisfying lender requirements,
Developer has formed or will form three separate single purpose entities for development of each
of the three phases of the Project. Developer requests Agency approve transfer of the DDA and
Phase I, II, and III Parcels as appropriate to each of the three single purpose entities formed for
development of each phase of the Project.
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4.1 Gateway - Phase I Developer Entity. Developer formed Gateway
Chula Vista, LLC, a California limited liability company ("Gateway") for completion of the
Phase I Improvements. Pursuant to Section 7 of the Second Amendment, Agency approved
transfer of the DDA and Phase I Parcels to Gateway as the Phase I Developer Entity.
4.2 Gateway I - Phase II Developer Entity. Developer has formed
Gateway Chula Vista I, LLC, a California limited liability company for completion of the
construction, development, operation and ongoing ownership of the Phase II Improvements
("Gateway I'). Gateway I currently consists of the following members: Coast Pacific Properties,
LLC, a California limited liability company ("Coast"); Chula Vista Asset Management, LLC, a
California limited liability company CCVAM'); and the Vera Guerin Separate Property Trust
("Guerin Trust"). Coast and CVAM are managing members of Gateway I. Coast currently
holds a 39.335% membership interest, CVAM currently holds 19.665% interest and the Guerin
Trust currently holds a 41% interest in Gateway I. Agency hereby approves transfer of the DDA
and Phase II parcels to Gateway I as the Phase II Developer Entity. Subject to notification
requirements in the DDA, Agency hereby pre-approves transfers of membership interests in
Gateway I so long as the current co-managing members of Gateway I (Coast and CVAM) remain
co-managing members and so long as Coast (of which James V. Pieri shall be and remain the
managing member) retains (or shares) management control of Gateway I and owns a minimum
of twenty five percent (25%) of the ownership or beneficial interest in Gateway I.
Section 5. REDEFINITION OF FIFTY PERCENT LEASE-UP CONDITION.
For purposes of defining the conditions precedent to payment of the Second Sub-Installment of
the Third Installment of Agency Participation, the fifty percent (50%) executed leases
requirement shall not include the square footage under the Phase II Agency Lease.
Section 6. EXECUTION IN COUNTERPARTS. This Fifth Amendment and each
of the attachments may be executed in any number of counterparts, each of which, when
executed and delivered, will be deemed to be an original and all of which, taken together, will be
deemed to be one and the same instrument.
Section 7. NO OTHER CHANGES. Except as expressly provided to the contrary
in this Fifth Amendment and the Agency Lease, the terms of the DDA shall remain in full force
and effect as written. All terms used herein and not defined herein or in the Agency Lease, but
defined in the DDA shall have the meaning given to such terms in the DDA. To the extent there
is an inconsistency between the DDA and the Agency Lease, the terms of the DDA shall prevail.
[Signature Block for Fifth Amendment begins on Next Page]
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Signature Page to Fourth Amendment to
Disposition and Development Agreement
IN WITNESS WHEREOF, the Redevelopment Agency of the City of Chula Vista, as
Agency, and Gateway Chula Vista One LLC, as Developer, have signed this Fourth Amendment
to Disposition and Development Agreement as of the Date of Fourth Amendment.
REDEVELOPMENT AGENCY GATEWAY CHULA VISTA ONE
OF THE CITY OF CHULA VISTA, a California limited liability company
a public body corporate and politic By: Coast Pacific Properties, LLC
Its: Co-Managing Member
By:.
Stephen C. Padilla, Chairman. James V. Picri, Chairman Manager
By: Chula Vista Asset Management, LLC
Its: Co-Managing Member
Greg Scott, Manager
ATTEST Approved as to form
Agency Secretary
Approved as to form Counsel to the Developer
Agency Attorney
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G Chula Vis ta ATTACHMENT R
September 16, 2003
Ms. Laurie Madigan
Community Planning Director
276 Fourth Avenue
Chula Vista, CA 91910
Re: Gateway Chula Vista, Phase II
City of Chula Vista
Lease Proposal (LOI)
Dear Laurie:
On behalf of Gateway Chula Vista One, LLC ("Gateway"), I am pleased to present this letter of
intent proposal for the lease of 17,250 rentable square feet of office space in the referenced
building. This proposal is not intended to be contractual in nature but to express the basis upon
which Landlord may be willing to enter into a lease agreement with The City of Chula Vista. The
undersigned acknowledge that this letter is intended to Outline the initial terms for consideration
only and not to obligate nor bind the parties. No such obligation shall arise unless and until a
mutually satisfactory lease agreement is fully executed by and delivered to all parties. Should
you have further questions, please contact me at 619-422-1493.
1. Lessor: Gateway Chula Vista One LLC, a California Limited Liability Company.
2. Lessee: City of Chula Vista.
3. Building Address: 333 H Street, Chula Vista, CA 91910.
4. Premises: Approximately 17,250 Rentable Square Feet located on the fourth floor of
the Phase II building. Suite number to be determined.
5. Signage: Lessor will allow signage in accordance with Gateway Chula Vista Signage
Criteria.
6. Commencement Date: The Commencement Date shall be that date the Lessor
tenders the premises to Tenant. Approximate Commencement Date is projected to be
November 1,2004.
7. Rent Commencement Date: The same as the Commencement Date.
8. Lease Term/Option To Renew: Three (3) years with one (1) three (3) year option to
renew.
9. Base Rental Rate: Two Dollars and 50/100 Dollars ($2.50) per Rentable Square Foot
Per Month, net of utilities. This equates to a monthly rental payment of $43,125 and a
total maximum lease obligation not to exceed $1,552,500.
303 "H" Street *Suite 300 *Chula Vista, CA 91910 * (619)422-1493 * Fax (619)422-1798
10. Release/assiqnment. At Agency's discretion, pro rata portions of the Agency lease
shall be "released" (with no continuing Agency obligation with respect to any released
portion) upon the execution of any and each Phase II lease that is executed subsequent
to the closing of the Phase II construction loan and Phase II Agency Parcels
conveyance.
11. Occupation of Space/Allocation of Risk. Agency shall have no obligation to occupy
the lease space by a certain date or at all. However, Agency shall reserve the right to
occupy, assign, or sublease the space on specified terms.
12. Operating Expense (CAM): operating expenses (CAM) are included, net of utilities.
13. Lease Type (Gross): This lease shall be written up as a Gross Lease net of Premise
Utilities.
14. Utilities: Tenant shall pay utilities for Tenant's premises.
15. Security Deposit: An amount equivalent to one month's rent is due upon execution of
the Lease Document.
16. Use: General Office to include the operation of general office functions.
17. Parking: Landlord shall provide four (4) parking passes per 1000 Square Feet of
Useable space for the initial lease term.
18. Reserved and Designated Parking: Landlord shall have available a certain number of
reserved and designated parking spaces for Sixty and 00/100 Dollars ($60.00) per
month per vehicle on a limited basis and upon availability.
19. Lease Form: Lessor's standard gross lease form to be used.
20. Tenant Improvement Allowance: The Lessor will contribute Thirty-Five 00/100
($35.00) Dollars per useable square foot toward the construction of the Tenant
Improvements. ("Tenant Improvement Allowance").
21. Conditions Precedent: The above terms are conditioned as follows:
a. Staff approval of the construction loan documents.
b. Staff approval of the most recent Gateway LLC amendments, actual and
pending.
c. An updated confirmation of Developer compliance with all existing terms and
conditions of the DDA.
d. The negotiation and completion of a mutually acceptable DDA amendment
document #5.
22. Fifth Amendment to DDA / A.qency Holdback of Subsidy. In consideration of the
Agency Lease, Developer shall advance, and Agency shall "hold-back" its Third
Installment Payment obligation ($1,553,500). The Agency "hold-back" of otherwise
reimbursable Project costs (the "Agency Hold-Back") shall be reduced dollar for dollar
through the Agency's payment of rent under the Agency Lease. In addition, in the event
that sufficient square footage is "released" as provided in Section 10 of the Lease
Terms, above, such that the Agency's remaining rent obligation under the lease is equal
to or less than the original Agency Hold-Back amount (not reduced by payments of rent
under the Agency Lease) (the "Break-Even Square Footage Release"), Developer shall
be entitled to additional draw-downs against the Agency Hold-Back equivalent to the
proportionate reduction in the Agency's remaining Lease obligation caused by the
"release" of space in excess of the Break-Even Square Footage Release.
23. Commissions: Lessor agrees to pay leasing commissions in accordance with
previously established terms between the Lessor and Mountain West Real Estate.
24. Guarantors: Not applicable.
25. Confidentiality: Landlord and Tenant, and each of the parties involved in this
transaction shall keep all components of the negotiating and subsequent documents fully
confidential and shall not discuss or disclose any information to any outside party. The
lease incentives are exclusive to this transaction and not offered to any other
prospective tenant. Any breach of this confidentiality may have adverse effects to the
Landlord and the project as a whole.
I am available at your earliest convenience to answer any questions or address any comments
you may have. As time is of the essence, I look forward to working with you regarding this
transaction.
Sincerely,
lateway_~hula Vista, EEC
ountain West~eal Estate, exclusive agent
James V. Pieri ~
President & CEO
cc: Tom Axson, MWRE
Greg Scott, Gateway CV
John Moot, Esq.
3
PAGE 1, ITEM NO.: c~
MEETING DATE: 11/18/2003
REDEVELOPMENT AGENCY AGENDA STATEMENT
ITEM TITLE: PUBLIC HEARING TO CONSIDER A SPECIAL USE PERMIT, SUP-04-
01 FOR A RETAIL, OFFICE, AND RESIDENTIAL MIXED USE PROJECT
AT 224 THIRD AVENUE WITHIN THE TOWN CENTRE I
REDEVELOPMENT PROJECT AREA
a) AGENCY RESOLUTION APPROVING A SPECIAL USE PERMIT,
SUP-04-01 WITH CONDOMINIUM PUSHERS INCORPORATED
FOR THE DEVELOPMENT OF A RETAIL, OFFICE, AND
RESIDENTIAL MIXED USE PROJECT AT 224 THIRD AVENUE
b) AGENCY RESOLUTION APPROVING AN OWNER
PARTICIPATION AGREEMENT WITH CONDOMINIUM PUSHERS
INCORPORATED FOR THE DEVELOPMENT OF A RETAIL, OFFICE,
AND RESIDENTIAL MIXED USE PROJECT AT 224 THIRD
AVENUE
SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR ~ ~
REVIEWED BY: CITY MANAGER ~
4/5THSVOTE: YES,NO ~
BACKGROUND
Condominium Pushers Incorporated proposes to develop a four-story mixed-use project at 224
Third Avenue within the "heart" of the downtown core. The proposed 20,000 square foot
building consists of ~wo retail suites on the first floor, four office suites on the second floor, four
residential condominium units on the third and fourth floors, and an underground parking
garage. Referred to as The Courtyard, the development of the project would mark the first time
since the mid-1980's that an urban infill project is developed in the downtown core (Third Avenue
between E and G Streets}.
Under the Town Centre I Land Use Policy, commercial/residential mixed use projects require a
Special Use Permit, which staff is presenting to the Agency tonight for consideration and
approval. Since the project is located within the Town Centre I Redevelopment Proiect Area, the
applicant will be required to enter into an Owner Participation Agreement, which includes design
plans. The Owner Participation Agreement is also being presented to the Agency for
consideration and approval.
Although the proposed infill project marks the first of its kind in many years, representatives of
Crossroads II, and the Chula Vista Heritage Historical Society expressed their concern regarding
the project's architectural style with respect to the historical character of Third Avenue. In
response, staff met with representatives of Crossroads II, and the downtown community to
PAGE 2, ITEM NO.:
MEETING DATE: 11/18/2003
address their design concerns, and solicit comments on how to improve the architedural style of
the building. The meetings were produdive, and staff now believes that minor modifications will
improve the project and generate a unique archifedural building that will complement the City's
already eclectic downtown. The design modifications have been included in the Special Use
Permit, and are further discussed later in the repod.
The proposed project is consistent with the Town Centre Redevelopment Plan and
Implementation Plan, Land Use Policy, and applicable development standards for the Town
Centre area. The Environmental Review Coordinator has reviewed the proposed project for
compliance with the California Environmental Quality Act (CEQA), and has determined that the
project qualifies for a Categorical Exemption pursuant to Section 15332, Class 32 (exemption for
infill developments). Thus, no further environmental review is necessary at this time.
RECOMMENDATION
Agency approve a Special Use Permit (SUP-04-01), and Owner Participation Agreement with
Condominium Pushers Incorporated for the development of a retail, office, and residential mixed-
use building at 224 Third Avenue within the Town Centre I Redevelopment Project Area.
BOARDS/COMMISSIONS RECOMMENDATION
On September 17, 2003, the Town Centre Project Area Committee (PAC) voted unanimously in
favor of approving a Special Use Permit for the proposed projed.
Please note that the Town Centre PAC serves as the recommending body to the Agency in
regards to redevelopment and land use matters within the Town Centre area, therefore not
requiring a public hearing with the City's Planning Commission to consider this item.
On October 6, 2003, the City's Design Review Committee (DRC) recommended denial (2-1-0-1)
to the Agency due to insufficient care given to the design of the project with respect to the
historical character of Third Avenue. The lone dissenting vote was made as a result of the
project's compliance with the applicable development standards for the Town Centre area, and
due to the design not necessarily conflicting with the already diverse architectural styles that exist
in the downtown core.
On November 3, 2003, staff presented DRC with an update regarding recommended design
modifications that came as a result of meetings that took place between staff and representatives
of Crossroads II, and the downtown community. Although DRC took no further action on the
project, they expressed their concern regarding the exposed wall of the northern elevation. DRC
wanted to ensure that the exposed wall becomes an architectural element that was
complementary to the building, and adjacent uses. It is staff's belief that the issue can be
addressed through site plan and architectural review that will take place during the building
permit process.
PAGE 3, ITEM NO.: c~
MEETING DATE: 11/18/2003
On November 5, 2003, the Downtown Business Association Board voiced their support for the
proposed mixed-use projed at 224 Third Avenue.
DISCUSSION
Site Characteristics
The project site is located on a .14-acre (5,750 st) vacant lot at 224 Third Avenue, within the
boundaries of the Town Centre I Redevelopment Area. Considered the City's downtown core, the
area is characterized with a variety of neighborhood serving commercial uses along both sides of
Third Avenue. The 50-foot wide by 115-foot deep rectangular lot is the fifth parcel south of E
Street, and is just north of the Vogue movie theater on the west side of Third Avenue.
Project Description
The applicant proposes to construct an approximately 20,000 square foot, four-story building,
consisting of two retail suites on the first floor, four office suites on the second floor, four
residential condominium units on the third and fourth floors, and an underground parking
garage. The underground parking garage would provide eight parking spaces that would be
accessed from the alley to the rear of the building. In addition, three surface parking spaces
would be provided along the alley.
The two retail suites total approximately 2,851 square feet, and will have storefront window
frontage along Third Avenue. The four office suites total approximately 4,314 square feet, and
would be accessible from a stairway or by elevator. Each condominium unit is approximately
1,475 square feet, and will consist of a two-story floor plan with a living room, dining area,
kitchen, bath, and balcony on the first level, and two bedrooms and two baths on the second
level. The units would be accessible via a stairway or elevator that would take residents into an
interior courtyard on the third floor that would be landscaped and open to the sky.
Land Use Desiqnations
The project site and adjacent uses include the following:
Existing Land Use General Plan Zonin.q
Site: Vacant Lot CB CR
North: Commercial Office CB CR
South: Vogue Theatre CB CR
East: Commercial Retail CB CR
West: Commercial Office CO RH
The Town Centre Land Use Policy allows commercial/residential mixed uses in the downtown
core subject to a Special Use Permit. The proposed project does comply with the development
standards of the Central Business Zone (CB), and the design guidelines of the Town Centre
Design Manual.
PAGE 4, ITEM NO.: c~
MEETING DATE: 11/18/2003
Although there is no height limitation within the CB Zone, the Design Manual specifies that the
maximum height of new buildings should not exceed 100 feet. The project does not exceed 43
feet in height, and will be built to all four-properly lines, which is consistent with the character of
buildings in the downtown core. The residential component of the project, which is subject to R-3
Zoning standards (Apartment Residential), meets or exceeds the requirements as shown below.
Requirement Proposed
Land Area Per Unit 1,350 sq ft (min) 1,437 sq ft
Density 32.3 du/ac (max) 30.3 du/ac
Living Area Per Unit 650 sq fl' (min) 1,475 sq fl.
Open Space Per Unit 400 sq ft (min) 415 sq ft
Parkinq
The parking requirement for the proposed project is based on the combined parking demand for
each use in the building. The parking requirement is one space per 200 square feet of retail,
one space per 300 square feet of office, and two spaces for the two-bedroom units. The total
parking requirement for the project is 37 spaces. The project includes 11 spaces, however, one
tandem space cannot be counted towards meeting the requirement. As a result, the project has a
deficiency of 27 parking spaces.
Section 19.62.040 of the Municipal Code allows the payment of an in lieu fee for deficient non-
residential parking when a project is located in the downtown parking district. The parking
requirement for the four residential units is met by the eight underground parking spaces that are
proposed for the project. A condition of approval is included in the Special Use Permit that
reserves the eight underground parking spaces for the residents, and requires payment of the in
lieu fee for the commercial parking deficiency.
Please note that the downtown parking in lieu fee is a tool that promotes the type of development
that is envisioned for the downtown core. The fee seeks to increase the density of downtown
development, and implement shared public parking facilities so that parking lots do not
dominate the aesthetics of projects or occupy scarce developable areas on small urban lots. The
result is a district that promotes and preserves the storefront character of Third Avenue. It is also
important to note that employees in the proposed building will have easy access to several public
parking lots that are within walking distance. Customers and clients will also have easy access to
public parking spaces along Third Avenue, and to nearby public parking lots.
PAGE 5, ITEM NO.: ~k~
MEETING DATE: 11/18/2003
Landscapin.q
As an urban infill development, the project would be built to the properly line, which is consistent
with the character and pattern of development along Third Avenue. As a result, the project does
not allow for on-site landscaping that is visible from the public right-of-way. However, the project
does allow for landscape opportunities within balcony planters and within the central courlyard
for the residential units. Also, the downtown core already includes wider pedestrian sidewalks,
street furniture, and permanent and freestanding landscape planters, which are expected to be
upgraded after adoption of the Urban Core Specific Plan.
Architecture
The exterior of the proposed building will consist of smooth stucco, which will be painted in
several earth tones to delineate floors, building planes, and architectural features. Accent colors
will highlight suspended metal awnings, which will add pedestrian scale and serve as a practical
means of providing signage for the retail tenants. The maximum height of the building will be
set back from the properly line so that the building would only appear as a three-story structure
from Third Avenue. The building is approximately 10 feet higher than the adjacent Vogue
Theater, which is approximately 32-feet high. The building's roof consists of ~wo separate curved
metal structures that sweep upward from both the front and rear edges of the building at
approximately 34-feet high to a maximum height of 43-feet towards the center of the building
where they remain clear of the open central courtyard.
As mentioned earlier in the report, representatives of Crossroads II, and the Chula Vista Heritage
Historical Society expressed their concern regarding the project's architectural style with respect to
the historical character of Third Avenue. In response, staff met with their representatives to
address design concerns, and solicit comments on how to improve the architectural style of the
building. The task of addressing the design concerns was complicated due to the project's
compliance with the applicable development standards for the area, and the design not
necessarily conflicting with the already diverse architectural styles that exist in the downtown core.
Absent specific design guidelines, it was difficult to provide the applicant with any more direction
on how to proceed with the architectural design of the building. Nonetheless, the meetings that
took place with representatives of Crossroads II, and the downtown community were productive,
and staff now believes that minor modifications will improve the project and generate a unique
architectural building that will complement the City's already eclectic downtown. As a condition
of approval, staff recommends that Agency approve the project, subject to the following design
modifications, which have been incorporated into the Special Use Permit.
· Removing the smokestack style chimneys (rusty and reddish brown cylindrical metal chimneys
that were proposed for the front and rear of each roof structure) on the roof structure in order
to eliminate the industrial feel of the building;
· Ensuring that the colors on the submitted materials board are the colors used to accentuate
the building;
PAGE 6, ITEM NO.: c~
MEETING DATE: 11/18/2003
· Toning down the bright gold color of the architectural chimney element that is located
between the roof structure and building's second floor. The color shall be a neutral or earth
tone color that provides a transitional element that complements the color of the roof
structure, and the building's exterior facade;
· Enhancing the pedestrian orientation of the ground floor storefronts by requiring clear glass
instead of the proposed green tinted glass; and
(Solar green-tinted glass will be incorporated along the second floor office windows, and
the floor-to-ceiling windows for the upper residential units.)
· Providing fenestration (i.e., enlarging entryways, framing windows to individualize ground
floor storefronts) along the storefronts 1o enhance the pedestrian experience of the building
and the street.
I~epresentatives of Crossroads II, and the Chub Vista Heritage Historical Society informed staff
that the project would be acceptable if the recommended design modifications were approved.
Although the applicant has not authorized the project architect to proceed with any further work,
the applicant and the design team have informed staff that they are not in opposition to the
recommended design modifications. The project architect also affirmed that the recommended
revisions will not alter the general spirit of the design, and that they could be accomplished
without any problem.
Affordable Housinq Obliqation
Since the proposed project is located within the Town Centre I Redevelopment Project Area, the
project is subject to the provisions of Section 33413(b) of the Health and Safety Code, also
referred to as California Community Redevelopment Law. Per Section 33413(b), the Agency
must ensure that at least 15 percent of all new and substantially rehabilitated dwelling units
developed within a project area under the jurisdiction of the Agency by private or public entities
other than the Agency shall be available at an affordable housing cost to persons or families of
Iow or moderate-income, and that not less than 40 percent of the dwelling units required to be
available at an affordable housing cost shall be available at an affordable housing cost to very
Iow income households.
As part of the mixed-use project at 224 Third Avenue, the Applicant is proposing the development
of four residential condominium units. Based upon the number of residential units to be created
by the project, the Agency must ensure the provision of a total of .6-unit at an affordable housing
cost to Iow or moderate-income households. Due to the small size of the project, and the
infeasibility of providing the required affordable unit, staff is recommending that the obligation
be satisfied through the Redevelopment Bank of Surplus affordable units. Since there are
approximately 35.4 Iow income units left over in the Bank, the applicant's obligation will be
satisfied through the use of banked units, reducing the bank to 34.8 units.
PAGE 7, ITEM NO.:
MEETING DATE: 11/18/2003
Owner Participation A,qreement
The Owner Participation Agreement runs with the land and outlines the Applicant's responsibilities.
Among other requirements, the Applicant will be required to:
1. Develop the property in accordance with the approved development proposal subject to the
conditions of all Ci~7 Departments and the Redevelopment Agency.
2. Secure all necessary permits in a timely manner; and
3. Maintain the properly in first class condition.
CONCLUSION
The Town Centre I Redevelopment Area was adopted in 1976 as a unique area in Chub Vista
that requires special attention and consideration in order to eliminate and reverse physical and
economic deteriorating conditions, provide and maintain adequate infrastructure, and produce
housing of all income levels. The proposed project will be beneficial for the City, because it will
redevelop an underutilized vacant lot into a higher and better use by creating a unique mixed-use
prototype that will generate additional retail, office, and market rate housing in the downtown
core.
The proposed project is consistent with the Town Centre I Redevelopment Plan and
Implementation Plan, Land Use Policy, and applicable development standards for the Town
Centre area.
FISCAL IMPACT
The proposed project has an estimated valuation of $2,000,000, thereby generating an
estimated annual tax increment revenue of $20,000. The annual tax increment will be
distributed as follows: $4,000 (20%) for the Housing Set-Aside fund; $4,000 (25%} to affected
taxing entities as part of the tax sharing pass-thru agreements; and the remaining $12,000 will
accrue to the Town Centre I Redevelopment Project Area fund.
ATTACHMENTS
Attachment A - Special Use Permit (SUP-04-01)
Attachment B - Owner Participation Agreement & Design Plans
Attachment C - Agency Resolution
ATTACHMENT A
RESOLUTION NO.
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA GRANTING A SPECIAL USE PERMIT (SUPS-04-01) TO
CONDOMINIUM PUSHERS, INC. FOR THE DEVELOPMENT OF A
MIXED-USE, COMMERCIAL AND RESIDENTIAL BUILDING AT 224
THIRD AVENUE WITHIN THE TOWN CENTRE I REDEVELOPMENT
PROJECT AREA
A. RECITALS
1. Project Site
WHEREAS, the parcel which is the subject matter of this resolution is represented in
Exhibit A attached hereto and incorporated herein by this reference, and for the purpose
of general description is located at 224 Third Avenue ("Project Site"); and
2. Project Applicant
WHEREAS, on July 3, 2003, a duly verified application for Special Use Permit SUPS-
04-01 was filed with the City of Chula Vista Planning Department and the Community
Development Department by Condominium Pushers, Inc. ("Applicant"); and
3. Project Description; Application for Special Use Permit
WHEREAS, the Applicant requests permission to construct an approximately 20,000-
square foot, four-story, mixed-use building that would include two retail storefront units on
the first floor, four office units on the second floor, four residential units on the third and
fourth floors, and an underground parking garage ("Project"); and,
4. Project Area Committee Record of Application
WHEREAS, the Town Centre Project Area Committee has been designated as the
body to provide recommendations for development projects located in the Town Centre
Project Area, which are thereafter presented to the City Council and/or Agency for
consideration pursuant to the authority granted in the Zoning Ordinance and the Town
Centre Project Area Redevelopment Plan; and
WHEREAS, the Town Centre Project Area Committee advertised a public hearing for
the Project submittal for August 20, 2003, where the Town Centre Project Area
Committee took action by recommending approval to the Agency; and
5. Redevelopment Agency of the City of Chula Vista Record of Application
WHEREAS, a duly called and noticed public hearing for the Project submittal was held
before Agency on November 18, 2003, to hear public testimony with regard to the Project;
and
Resolution No. __ Page 2
NOW, THEREFORE, BE IT RESOLVED THAT THE REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA does hereby find, order, determine and resolve as follows:
B. TOWN CENTRE PROJECT AREA COMMITTEE RECORD
The proceedings and all evidence for the Project submittal introduced before the Town
Centre Project Area Committee at their public hearing held on August 20, 2003 and the
minutes resulting there from, are hereby incorporated into the record of this proceeding.
C. ENVIRONMENTAL DETERMINATION
The Environmental Review Coordinator has reviewed the proposed project for compliance
with the California Environmental Quality Act (CEQA), and has determined that the project
qualifies for a Categorical Exemption pursuant to Section 15332, Class 32 (exemption for
infill developments). Thus, no further environmental review is necessary at this time.
D. SPECIAL USE PERMIT FINDINGS
The Redevelopment Agency of the City of Chula Vista does hereby make the findings
required by the City's rules and regulations for the issuance of special use permits, as
herein below set forth, and sets forth, hereunder, the evidentiary basis that permits the
stated finding to be made.
1. That the proposed use at this location is necessary or desirable to provide a
service or facility which will contribute to the general well being of the
neighborhood or the community.
The proposed project will provide a unique architectural building that will complement
the City's already eclectic downtown, which is characterized with a variety of
architectural styles. The materials and construction techniques will be used in a
manner that is functional, decorative, and aesthetically interesting. The mixed-use
project will provide retail, office, and residential uses in the Town Centre downtown
district, which is consistent with the adopted vision, goals, and policies of the General
Plan and the Redevelopment Plan for the area. The retail and office components of
the project support the objectives for the downtown district. In turn, the residential
component supports these and other uses in the area, as well as providing additional
housing opportunities in the downtown core.
2. That such use will not under the circumstances of the particular case be
detrimental to the health, safety or general welfare of persons residing or
working in the vicinity or injurious to property or improvements in the vicinity.
The proposed project compiles with the development standards of the underlying zone
and the design guidelines of the project area. The design and small scale of the infill
project would be compatible with the character of the downtown district and would be
consistent with adopted policies in the General Plan and the Redevelopment Plan for
the area. The use of the building would be compatible with surrounding land uses.
The project would be subject to conditions of approval to insure that the use would not
be detrimental to persons and property in the area. The project is categorically
exempt from the California Environmental Quality Act and would not result in any
significant environmental impacts.
-fO
Resolution No.__ Page 3
3. That the proposed use will comply with the regulations and conditions specified
in the code for such use.
The proposed use is required to comply with the regulations of the Municipal Code,
and in any case where it does not comply, this special use permit is subject to
modification or revocation. The conditions herein imposed on the grant of this permit
or other entitlement herein contained is approximately proportional both in nature and
extent to the impact created by the proposed project.
4. That the granting of this Special Use Permit will not adversely affect the General
Plan of the City or the adopted plan of any government agency.
The project is consistent with the policies of the General Plan. The project is located
within the boundaries of the Central Chula Vista Area Plan (Chapter 10 of the General
Plan). Section 2.1, Land Use, identifies mixed uses as a primary element of Town
Centre I. Goal 1, Objective 1 of the Area Plan calls for maintaining and supporting the
vitality of commercial establishments along Third Avenue. Goal 3, Objective 10 of the
Area Plan encourages multi-family housing and mixed uses within the vicinity of Third
Avenue. The project would be consistent with these objectives by providing retail and
office uses directly on Third Avenue as well as supporting residential units above.
The proposed use is consistent with the goals of the Town Centre Redevelopment
Plan, the Downtown Vision Statement, and the Town Centre I Land Use Policy, which
call for the revitalization of the Town Centre and downtown as a commercial district.
Granting a special use permit for the proposed use will reaffirm the effectiveness of
the land use provisions of those documents.
E. TERMS OF GRANT OF PERMIT
The Redevelopment Agen~cy hereby grants Special Use Permit SUPS-04-01 subject to the
following conditions:
1. The applicant shall enter into an Owner Participation Agreement (OPA) with the
Redevelopment Agency that will outline the applicant's responsibilities including,
but not limited to:
a. The development of the property in accordance with the approved project
subject to the conditions of all City departments, the Design Review
Committee, the Town Centre Project Area Committee, and the
Redevelopment Agency.
b. The securing of all necessary permits in a timely manner.
c. The maintenance of the property in first class condition.
2. The subject property shall be developed and maintained in substantial
conformance with and as described in the application and plans, and subject to the
following design conditions.
a. Removing the smokestack style chimneys on the roof structure in order to
eliminate the industrial feel of the building;
Resolution No. __ Page 4
b. Ensuring that the colors on the submitted materials board are the colors used
to accentuate the building;
c. Toning down the bright gold color of the architectural chimney element that is
located between the roof structure and building's second floor. The color
shall be a neutral or earth tone color that provides a transitional element that
complements the color of the roof structure, and the building's extedor
facade;
d. Enhancing the pedestrian orientation of the ground floor storefronts by
requiring clear glass instead of the proposed green tinted glass; and
e. Providing fenestration (i.e., enlarging entryways, framing windows to
individualize ground floor storefronts) along the storefronts to enhance the
pedestrian experience of the building and the street.
3. The conditionally permitted use of the subject property shall be limited to
residential in conjunction with the permitted commercial uses as described in the
application and plans, except as modified herein.
4. The floor plans and the floor areas devoted to the conditionally permitted use of
the subject property shall not be substantially modified.
5. The following shall be submitted to the Community Development Department for
review and approval:
a. A planned sign program.
b. A lighting plan.
c. A security plan.
d. A landscape and irrigation plan.
6. The Applicant shall obtain design review approval pursuant to Section 19.14.582
et al of the Municipal Code prior to issuance of building permits.
7. The applicable fees shall be paid into the Town Centre parking district for the
number of deficient parking stalls pursuant to Section 19.62.040 of the Municipal
Code prior to issuance of building permit.
8. Eight of the on-site parking spaces (not including tandem spaces) shall be
reserved for residential tenant parking only.
9. The applicable fees shall be paid into the Town Centre fine arts fund pursuant to
Section XI, B, 2 of the Town Centre Design Manual prior to issuance of building
permit.
10. The applicable permits shall be obtained from the Planning and Building
Department, the Fire Department, and other responsible departments and
agencies.
11. The project shall comply with applicable codes and requirements, including but not
limited to CBC, CFC, CMC, CPC, CEC, ADA requirements, Title 24, and other
codes in effect at the time of issuance of any permit.
12. The Applicant/property owner shall comply with all applicable comments from City
departments as listed in staff's letter to the applicant, dated August 1, 2003.
Resolution No. __ Page 5
13. The Applicant/property owner shall comply with all applicable federal, state, and
local requirements, and in any case where it does not comply, this permit is
subject to modification or revocation.
14. This permit shall become void and ineffective if not used or extended within one
year from the effective date thereof, in accordance with Section 19.14.260 of the
Municipal Code.
15. This permit shall be subject to any and all new, modified, or deleted conditions
imposed after approval of this permit to protect the public from a specific condition
dangerous to its health or safety or both due to the project, which condition(s) the
City shall impose after advance written notice to the permittee and after the City
has given the permittee the right to be heard with regard thereto. However, the
City in exercising this reserved right/condition, may not impose a substantial
expense or deprive permittee of a substantial revenue source which the permittee
cannot, in the normal operation of the use permitted, be expected to economically
recover.
16. The Applicant shall and does hereby agree to indemnify, protect, defend, and hold
harmless the City, its Council members, officers, employees, agents, and
representatives from and against all liabilities, losses, damages, demands, claims,
and costs, including court costs and attorney's fees (collectively, liabilities) incurred
by the City arising directly or indirectly from a) City's approval and issuance of this
permit, b) City's approval or issuance of any other permit or action, whether
discretionary or non discretionary, in connection with the use contemplated herein,
and without limitation, any and all liabilities arising from the operation of the facility.
Applicant shall acknowledge their agreement to this provision by executing a copy
of this permit where indicated below. The applicant's compliance with this
provision is an express condition of this permit and this provision shall be binding
on any and all of the applicant's successors and assigns.
17. The Applicant/property owner shall also acknowledge by signing below that they
have no objection to the fact that the subject property is within the downtown
district, for which the Town Centre Land Use Policy applies, and that such policy
encourages uses such as restaurants, nightclubs, entertainment venues, and other
establishments that may serve alcoholic beverages. Furthermore, the
Applicant/property owner has been made aware of regular requests to the
Department of Alcoholic Beverage Control (ABC) for the licensing of premises in
the downtown district to allow the sales of alcoholic beverages, and that such uses
are allowed by right when in conjunction with a bona fide food service, and that
bars and nightclubs may be allowed with a special use permit.
F. EXECUTION AND RECORDATION OF RESOLUTION OF APPROVAL
The property owner and the Applicant shall execute this document by signing the lines
provided below, said execution indicating that the property owner and Applicant have
each read, understood, and agreed to the conditions contained herein. Upon execution,
this document shall be recorded with the County Clerk of the County of San Diego, at the
sole expense of the property owner and/or Applicant, and a signed, stamped copy of this
recorded document shall be returned within ten days of recordation to the Agency's
secretary. Failure to return said document to the Agency's secretary shall indicate the
property owners/Applicant's desire that the project, and the corresponding application for
Resolution No. __ Page 6
building permits and/or a business license, be held in abeyance without approval. Said
document will also be on file in the Agency's office and known as document No. __
Signature of Applicant Property Owner Date
G. ENVIRONMENTAL NOTICE
The Redevelopment Agency directs the Environmental Review Coordinator to post a
Notice of Exemption and file the same with the County Clerk.
H. INVALIDITY; AUTOMATIC REVOCATION
It is the intention of the Redevelopment Agency that its adoption of this Resolution is
dependent upon the enforceability of each and every term, provision, and condition herein
stated; and that in the event that any one or more terms, provisions, or conditions are
determined by a Court of competent jurisdiction to be invalid, illegal, or unenforceable, this
resolution and the permit shall be deemed to be automatically revoked and of no further
force and effect ab initio.
Presented by: Approved as to form by:
Laurie Madigan Ann Moore
Community Development Director City Attorney and Agency Counsel
PASSED, APPROVED and ADOPTED BY THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA, CALIFORNIA this 18th day of November, 2003 by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
Stephen C. Padilla
Chairman
Resolution No.__ Page 7
ATTEST:
Laude Madigan
Executive Secretary
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss:
CITY OF CHULA VISTA )
I, Laurie Madigan, Executive Secretary to the Redevelopment Agency of the City of Chula Vista,
California DO HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution
No. __ and that the same has not been amended or repealed.
Dated: November 18, 2003
Laude Madigan
Executive Secretary
ATTACHMENT B
Recording Requested By:
CHULA VISTA REDEVELOPMENT AGENCY
276 Fourth Avenue
Chula Vista, CA 91910
When Recorded Mail To:
CHULA VISTA REDEVELOPMENT AGENCY
276 Fourth Avenue
Chula Vista, CA 91910
Attn: Linda Welch
(Space Above This Line For Recorder)
APN: 568.044-19
OWNER PARTICIPATION AGREEMENT
Condominium Pushers, Inc.
224 Third Avenue
THIS AGREEMENT is entered into by the REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, a
public body corporate and politic (hereinafter referred to as "AGENCY"), and Condominium Pushers Inc., a California
Corporation (hereinafter referred to as "DEVELOPER") effective as of November 18, 2003.
WHEREAS, the DEVELOPER desires to develop real property within the TOWN CENTRE 1 REDEVELOPMENT
PROJECT AREA ("Project Area") which is subject to the jurisdiction and control of the AGENCY; and,
WHEREAS, the DEVELOPER proposes to develop a 20,000 square foot, four-story mixed-use project to
consist of two retail suites on the first floor, four office suites on the second floor, four residential units on the third
and foudh floors, and an underground parking garage; and,
WHEREAS, the AGENCY has approved the Project and design plans subject to certain terms and conditions;
and,
WHEREAS, the AGENCY desires that said Project be implemented and completed as soon as it is practicable in
accordance with the terms of this Agreement.
NOW, THEREFORE, the AGENCY and the DEVELOPER agree as follows:
1. The property to be developed is described as Assessor's Parcel Numbers 568-044-19 located at 224
Third Avenue, Chula Vista, CA., as shown on Iocator map attached hereto as Exhibit "A".
2. The DEVELOPER covenants and agrees by and for himself, his heirs, executors, administrators and
assigns and all persons claiming under or through them the following:
A. DEVELOPER shall develop the Property with the Project in accordance with the AGENCY
approved design plans attached hereto as Exhibit "B" and subject to the conditions set forth
in SPECIAL USE PERMIT, SUPS-04-01.
B. DEVELOPER shall obtain all necessary federal/state and local governmental permits and
approvals and abide by all applicable federal, state and local laws, regulations, policies and
approvals in connection with the development of the Project. DEVELOPER furl:her agrees
that this Agreement is contingent upon DEVELOPER securing said permits and approvals.
DEVELOPER shall pay all applicable development impact and processing fees.
C. DEVELOPER shall obtain building permits within one year from the date of this Agreement
and to actually develop the Properb/with the Project within one year from the date of
issuance of the building permits. In the event DEVELOPER fails to meet these deadlines,
the Agency's approval of DEVELOPER's development proposal shall be void and this
Agreement shall have no further force or effect.
D. In all deeds granting or conveying an interest in the Property, the following language shall
appear:
"The grantee herein covenants by and for himself, his heirs, executors,
administrators and assigns, and all persons claiming under or through
them, that there shall be no discrimination against or segregation of, any
person or group of persons on account of race, color, creed, na~onal edgin
or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure,
or enjoyment of the premises herein conveyed, nor shall the grantee
himself or any persons claiming under or through him establish or permit
any such practice of discrimination or segregation with reference to the
selection, location, number, use or occupancy of tenants, lessees,
subtenant lessees, or vendees in the premises herein conveyed. The
foregoing covenants shall run with the land."
E. In all leases demising an interest in all or any part of the Property, the following language
shall appear:
"The lessee herein covenants by and for himself, his heirs, executors,
administrators and assigns, and all persons claiming under orthrough him,
and this lease is made and accepted upon and subject to the following
conditions:
That there shall be no discrimination against or segregation of, any person
or group of persons, on account of race, color, creed, national origin, or
ancestry, in the leasing, subleasing, transferring use, occupancy, tenure,
or enjoyment of the premises herein leased, nor shall the lessee himself or
any persons claiming under or through him, establish or permit any such
practices of discrimination or segregation with reference to the selection,
location, number or use, or occupancy of tenants, lessees, sublessees,
subtenants, or vendees in the premises herein leased."
3. The Property shall be developed subject to the conditions imposed by the AGENCY as described in
SPECIAL USE PERMIT, SUPS.04-01 for the Prelect. DEVELOPER acknowledges the validity of and
agrees to accept such conditions.
4. DEVELOPER shall maintain the premises in FIRST CLASS CONDITION.
A. DUTY TO MAINTAIN FIRST CLASS CONDITION. Throughout the term of this Agreement,
DEVELOPER shall, at DEVELOPER's sole cost and expense, maintain the Property which
includes all improvements thereon in first class condition and repair, and in accordance with
all applicable laws, permits, licenses and other governmental authorizations, rules,
ordinances, orders, decrees and regulations nowor hereafter enacted, issued or promulgated
by federal, state, count,, municipal, and ether governmental agencies, bodies and courts
having or claiming jurisdiction and all their respective departments, bureaus, and officials.
Jf the DEVELOPER fails to maintain the Property in a "first class condition', the
Redevelopment Agency of the City of Chula Vista or its agents shall have the rig ht to go on
the Property and perform the necessary maintenance and the cost of said maintenance shall
become a lien against the Property. The Agency shall have the right to enforce this lien
either by foreclosing on the Property or by forwarding the amount to be collected to the Tax
Assessor who shall make it part of the tax bill.
B. DEVELOPER shall promptly and diligently repair, restore, alter, add to, remove, and replace,
as required, the Property and all improvements to maintain or comply as above, or to remedy
all damage to or destruction of all or any part of the improvements. Any repair, restoration,
alteration, addition, removal, maintenance, replacement and other act of compliance under
this Paragraph (hereafter collectively referred to as "Restoration") shall be completed by
DEVELOPER whether or not funds are available from insurance proceeds or subtenant
contributions.
In order to enforce all above maintenance provisions, the parties agree that the Community
Development Director is empowered to make reasonable determinations as to whether the
Property is in a first class condition. If the Director determines it is not, the Director (1) will
notify the DEVELOPER in writing and (2) extend a reasonable time to cure. If a cure or
substantial progress to cure has not been made within that time, the Director is authorized to
effectuate the cure by City forces or otherwise, the cost of which will be promptly reimbursed
by the DEVELOPER.
FIRST CLASS CONDITION DEFINED. First class condition and repair, means an efficient
and attractive condition, at least substantially equal in quality to the condition which exists
when the Project has been completed in accordance with all applicable laws and conditions.
5. AGENCY and DEVELOPER agree thatthe covenants of the DEVELOPER expressed herein shall run
with the land. DEVELOPER shall have the right, without prior approval of AGENCY, to assign its
rights and delegata its duties under this Agreement. Such assignment or delegation shall not be
effective until DEVELOPER has notified AGENCY in writing. Besides the assignee's or delegate's
name, the notice shall include the new contact information for the assignee or delegate.
6. AGENCY and DEVELOPER agree that the covenants of the DEVELOPER expressed herein are for
the express benefit of the AGENCY and for all owners of real property within the boundaries of the
PROJECT AREA as the same now exists or may be hereafter amended. AGENCY and DEVELOPER
agree that the provisions of this Agreement may be specifically enforced in any court of competent
jurisdiction by the AGENCY on its own behalf or on behalf of any owner of real property ~thin the
boundaries of the PROJECT AREA.
7. AGENCY and DEVELOPER agree that this Agreement may be recorded by the AGENCY in the Office
of the County Recorder of San Diego County, California.
8. DEVELOPER shall and does hereby agree to indemnify, protect, defend and hold harmless AGENCY
and the City of Chula Vista, and their respective Council members, officers, employees, agents and
representatives, from and against any and all liabilities, losses, damages, demands, claims and costs,
including court costs and reasonable attorneys' fees (collectively, "liabilities") incurred by the AGENCY
arising, directly or indirectly, from (a) AGENCY's approval of this Agreement, (b) AGENC~s or City's
approval or issuance of any other permit or action, whether discretionary or non-discretionary, in
connection with the Project contemplated herein, and (c) DEVELOPER's construction and operation of
the Project permitted hereby.
9. In the event of any dispute between the parties with respect to the obligations under this AGREEMENT
that results in litigation, the prevailing party shall be entitled to recover its reasonable attorney's fees
and court costs from the non-prevailing party.
10. Time is of the essence for each and every obligation hereunder.
11. If DEVELOPER fails to fulfill its obligations hereunder after due notice and reasonable opportunity to
cure, DEVELOPER shall be in default hereunder, and in addition to any and air other rights and
remedies AGENCY may have, at law or in equity, AGENCY shall have the right to terminate its
approval of the Project and this Agreement.
12. DEVELOPER and AGENCY agree that, notwithstanding Section 410, Owner and Tenant Participation
rules for the Town Centre I Redevelopment Project Area, adopted by the Agency in July 1976, the
AGENCY expressly retains its right to exercise its eminent domain powers as it relates to the Property.
13. All notices, demands or requests (hereinafter"notices") provided for or permitted to be given pursuant
to this Agreement must be in writing. All notices 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, certified or
registered, return receipt requested, addressed to such party at the addresses listed below. A party
may change the address where notices are to be delivered by giving notice pursuant to this Section,
but shall not require a party to serve or mail notices to multiple address.
AGENCY: CHULA VISTA REDEVELOPMENT AGENCY
276 Fourth Avenue
Chula Vista, CA 91910
DEVELOPER: Condominium Pushers, Inc.
3696 Alexia Place
San Diego, CA 92116
Signature Page Follows
Signature Page
IN WITNESS WHEREOF THE PARTIES HAVE ENTERED INTO THIS AGREEMENT EFFECTIVE AS OF THE DATE
FIRST WRITTEN ABOVE.
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
"AGENCY"
DATED: By:
Stephen C. Padilla, Chairman
"DEVELOPER"
DATED: I/-J~-O~ By: ~~
Paul M Genato, Corporate Secretary
Condominium Pushers, Inc.
NOTARY: Please attach acknowledgment card.
APPROVED AS TO FORM BY:
Ann Moore, Agency Attorney
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of Califomia
-~ ~ ~ ss.
County of
On/~j/~'''~ ~;¢'¢
personally appeared
Name(s) ~ ~gner(s)
~ personally known to me
~ proved to me on the basis of satisfacto~
evidence
to be the person~ whose name~ is/are
subscribed to the within instrument and
acknowledged to me that he/~ executed
the same in his/~r/~ authorized
capacity~, and that by his/~r
signature~ on the instrument the person~, or
the entity upon behalf of which the person~
acted, executed the instrument.
WITN~I.
OPTIONAL
Though the information below is not required by law, ~t may prove valuable to persons relying on the document and could prevent
fraudulent removal and rea~Iachment of this form to another document.
Description of Attached Document
Title orType of Document: ~'.)~9/ /~rT/~t~/£~ ~/~ff~J¢7~~-''~
Document Date: /~Ov"/ /.~ ,~(~(~-..~ Number of Pages: /'~-~
Signer(s) otherThanNamedAbove: ..~/~ ~//~c~/~/'~--/ ;~'! '~O~)f'~-.
Capacity(les) Claimed by Signer
Signer's Name: ~
[] individual Top of thumb here
[] Corporate Officer -- Title(s):,
[] Partner-- [] Limited [] General
[] Attorney-in-Fact
[] Trustee
[] Guardian or Conservator
[] Other:.
Signer Is Representing:
EXHIBIT A
Locator Map
Owner Participation Agreement
Condominium Pushers, Inc,
224 Third Avenue
Chula Vista, CA
Exhibit A
Locator Map
EXHIBIT B
Design Plans
Owner Participation Agreement
Condominium Pushers, Inc.
224 Third Avenue
Chula Vista, CA
Exhibit B
Design Plans
I I
ATTACHMENT C
AGENCY RESOLUTION NO.
AGENCY RESOLUTION ADOPTING AN OWNER PARTICIPATION AGREEMENT WITH
CONDOMINIUM PUSHERS INCORPORATED FOR THE DEVELOPMENT OF A RETAIL,
OFFICE, AND RESIDENTIAL MIXED USE PROJECT AT 224 THIRD AVENUE WITHIN THE
TOWN CENTRE I REDEVELOPMENT PROJECT AREA
WHEREAS, Condominium Pushers Incorporated has presented development plans for
the construction a four-story, 20,000 square foot mixed-use project to consist of two retail suites
on the first floor, four office suites on the second floor, four residential condominium units on
the third and fourth floors, and an underground parking garage; and
WHEREAS, the site is located on a 5,750 square foot vacant lot at 224 Third Avenue, in
the Town Centre I Redevelopment Area under the jurisdiction and control of the
Redevelopment Agency of the City of Chula Vista, which is shown in the Locator Map
attached to the Owner Participation Agreement and incorporated herein by reference; and
WHEREAS, the Environmental Review Coordinator has reviewed the proposed project
for compliance with the California Environmental Quality Act, and has determined that the
project qualifies for a Categorical Exemption pursuant to Section 15332, Class 32 exemption for
infill developments; thus, no further environmental review is necessary at this time; and
WHEREAS, the Redevelopment Agency of the City of Chula Vista has approved an
Owner Participation Agreement, said agreement being on file in the Office of the Secretary to
the Redevelopment Agency and known as document RACO- , approving the
construction of a four-story, 20,000 square foot mixed-use project in the Town Centre I
Redevelopment Project Area, as depicted in Exhibits A and B, and subject to the conditions
set forth in SUPS-04-01 that was granted for this project; and
NOW, THEREFORE, BE IT RESOLVED THAT THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA does hereby find, order, determine and resolve as follows:
1. The project is consistent with the Town Centre I Redevelopment Plan and
Implementation Plan, Land Use Policy, and applicable development standards for
the Town Centre area.
2. The project will be beneficial for the City of Chula Vista, because it will redevelop an
underutilized vacant lot into a higher and better use by creating a unique mixed-use
prototype that will generate additional retail, office, and market rate housing in the
downtown core.
3. The Redevelopment Agency of the City of Chula Vista hereby approves an Owner
Participation Agreement with Condominium Pushers Incorporated to construct a
four-story, 20,000 square foot mixed-use project to consist of two retail suites on the
first floor, four office suites on the second floor, four residential condominium units on
the third and fourth floors, and an underground parking garage in the Town Centre I
Redevelopment Area, as depicted in Exhibits A and B, and subject to the conditions
set forth in SUPS-04-01 that was granted for this project; and
4. The Chairman of the Redevelopment Agency is hereby authorized to execute the
subject Owner Pc]rticipation Agreement between the Redevelopment Agency and
Condominium Pushers incorporated.
5. The Secretary of the Redevelopment Agency is (~uthorized to record said Owner
Participation Agreement in the Office of the County Recorder of San Diego,
California.
Presented by Approved as to form by
Laurie Madigan Ann Moore
Director of Community Development City Attorney and Agency Counsel