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HomeMy WebLinkAboutRDA Packet 2003/09/30 CITY OF TUESDAY, SEPTEMBER 30, 2003 CHUL~ VISTA 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 CALL TO ORDER ROLL CALL Agency/Council Members Davis, McCann, Rindone, Salas; Chair/Mayor 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 un~ess 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. APPROVAL OF MINUTES - September 16, 2003 2. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING AN AMENDED AND RESTATED OWNER PARTICIPATION AGREEMENT WITH HERCAB LIMITED LIABILITY COMPANY FOR THE DEVELOPMENT OF A 11,702 SQUARE FOOT CONCRETE BUILDING FOR A WAREHOUSE, RESEARCH, OFFICE, AND DISTRIBUTION CENTER AT 725 MAIN STREET WITHIN THE OTAY VALLEY REDEVELOPMENT PROJECT AREA AND AUTHORIZING CHAIR TO EXECUTE SAID AGREEMENT - Hercab Limited Liability proposes an 11,702 square foot industrial concrete tilt up building (725 Main Street) that will be used as a warehouse, research, office, and distribution center in the Otay Valley Redevelopment Project Area. If approved, Industrial Automation and Control, which has signed a long-term lease with Hercab, will develop the property for their business in accordance the approved plans. Industrial Automation and Control specializes in the design of control panels for the food industry. [Community Development Director] STAFF RECOMMENDATION: Agency adopt the resolution. 3. JOINT RESOLUTION OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE 2003 HOLIDAY LIGHTING PROGRAM; AUTHORIZING WAIVING THE FORMAL BIDDING PROCESS AND AWARDING A SOLE SOURCE PURCHASE AGREEMENT TO DEKRA-LITE; APPROPRIATING FROM THE AVAILABLE BALANCE OF THE RCT FUND ($54,000) AND TCI FUND ($17,400); AND DIRECTING STAFF TO IMPLEMENT THE 2003 HOLIDAY LIGHTING PROGRAM - The Holiday Lighting Program is a continued effort undertaken by the City to celebrate the holiday season. Since the program's inception in 1999, Dekra-Lite has decorated the downtown area with a variety of colorful holiday lights, displays, and thematic banners, including the lighting of three freeway overpasses. The 2003 Holiday Lighting Program will officially commence following the conclusion of the Downtown Starlight Yule Parade, which usually takes place on the first Saturday of December. Part of the program involves installing tree lights in the downtown area in mid-October and keeping them up until April to correspond to daylight savings time. [Community Development Director] 4/Sths VOTE REQUIRED STAFF RECOMMENDATION: Council/Agency adopt the resolution. ORAL COMMUNICATIONS This is an opportunity for the general 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, generatJy prohibits the Redevelopment Agency/City Council from taking action on any issues not included on the posted agenda.) rf you wish to address the Agency/Council on such a subject, prease 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, prease give your name and address for record purposes and follow up action. 4. DIRECTOR/CITY MANAGER'S REPORT(S) 5. CHAIR/MAYOR REPORT(S) 6. AGENCY/COUNCIL COMMENTS ADJOURNMENT The meeting will adjourn to a closed session and thence to a regular meeting of the Redevelopment Agency on October 7, 2003, at 4:00 p.m., immediately following the City Council meeting in the City Council Chambers. CLOSED SESSION Unless Agency Counsel, the Executive Director, or the Redevelopment Agency/City Council states otherwise at this time, the Agency/Council 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/Council is advised should be discussed in closed session to best protect the interests of the City. The Agency/Council is required by law to return to open session, issue any reports of final action 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/Council's return from closed session, reports of final action taken, and adjournment wilt not be videotaped. Nevertheless, announcements of actions taken in Closed Session shall be made by Noon on Wednesday following the meeting at the City Clerk's office in accordance with the Ralph Brown Act (Govt. Code ~; 54957.7) 7. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Government Code Section 54956.8 a. Property: Assessor Parcel Nos. 619-121-01 and 619-121-02 (approx. 0.14 acres) located at Third and Naples Negotiating Parties: Laurie Madigan, Byron Estes, Elizabeth Wagner Hull, Linda Bartz, (Agency/City), and Mrs. Elisa Flores and Mrs. Raquel Ruelas Under Negotiations: Instructions to negotiators Redevelopment Agency, September 30, 2003 Page 2 8. CONFERENCE WITH LEGAL COUNSEL REGARDING INITIATION OF LITIGATION-- Pursuant to Government Code Section 54956.9(c) One Case 9. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION -- Pursuant to Government Code Section 54956.9(a) City/Agency vs. IT Group, Inc., et. al. [Case No. 02-10118 (MFW)] 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 hearing impaired. Redevelopment Agency, September 30, 2003 Page 3 M1NUTES OF AN ADJOURNED REGULAR MEETiNG OF THE CITY COUNCIL AND A REGULAR MEETiNG OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA September 16, 2003 6:00 p.m. An Adjourned Regular Meeting of the City Council and a Regular Meeting of the Redevelopment Agency of the City of Chula Vista were called to order at 7:16 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Agency/Councilmembers: Davis, McCann, Rindone, Salas, and Chair/Mayor Padilla ABSENT: Agency/Councilmembers: None ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/City Attorney Moore, and City Clerk Bigelow CONSENT CALENDAR 1. APPROVAL OF MINUTES - August 19, 2003, August 26, 2003 Staff recommendation: Council/Agency approve the minutes. 2. ORDiNANCE NO. 2934, ORDiNANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA GRANTING A PRECISE PLAN PCM-03-31 TO ESTABLISH DEVELOPMENT STANDARDS, AND APPROVING A 25 PERCENT DENSITY BONUS TO ALLOW FOR A 14-UNIT TOWN HOME PROJECT IN THE R2P ZONE FOR PROPERTY LOCATED AT 774 ADA STREET Ada Terrace, Inc. proposes to develop a market-rate, 14-unit town home project in two triplex and four duplex buildings at 774 Ada Street. The project is located in the Southwest Redevelopment Area. (Community Development Director) Staff recommendation: Council place the ordinance on second reading for adoption. ACTION: Chair/Mayor Padilla moved to approve staff's recommendations and offered the Consent Calendar, headings read, texts waived. Agency/Councilmember Rindone seconded the motion, and it carded 5-0, except for Item No. 1, which carded 4-0- 1 with Agency/Councilmember Salas abstaining due to her absence from the meeting. /-! ACTION ITEMS 3. REPORT REGARDING E STREET TRANSIT VILLAGE PROJECT UPDATE On September 7, 2002, the Agency granted an exclusive negotiating egreement (ENA) to Barone Galasso & Associates and the Olson Company for redevelopment of the City's old Corporation Yard and associated private parcels. The purpose of the informational report is to provide a summary of progress to-date and a revised schedule of performance for the existing ENA. (Community Development Director) Redevelopment Manager Estes introduced the projects' development team. Michael Galasso, representing Barone Galasso & Associates, presented the progress report, adding that they have entered into an exclusive negotiation agreement with the Metropolitan Transit Development Board on a parcel north of the City's property. He also reported on a community meeting conducted in August 2003 where residents provided valuable input to the preliminary plans. A more defined conceptual plan is scheduled to be brought before the Agency/Council before the end of the year. Agency/Councilmember Rindone asked whether the additional 125 parking spaces were included in the proposed plan. Redevelopment Manager Estes replied that there are currently 299 spaces for the park-and-ride, and staff is cognizant of the MTDB's condition for an additional 125 spaces, which will be phased into the plan. Agency/Councilmember Rindone stated if there is a grade separation and relocation of the station, the ease of public access to that station should be enhanced as it is moved further south towards F Street. ACTION: Chair/Mayor Padilla moved to accept the report. Agency/Councilmember Davis seconded the motion, and it carded 5-0. ORAL COMMUNICATIONS There were none. OTHER BUSINESS 4. DIRECTOR'S REPORTS There were none. 5. CHAIR/MAYOR REPORTS There were none. 6. AGENCY/COUNCIL COMMENTS There were none. Page 2 Council/RDA Minutes 09/16/03 CLOSED SESSION 7. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(A) City/Agency vs. IT Group, Inc., et. al. [Case No. 02-10118 (MFW)] This item was not discussed. ADJOURNMENT At 10:15 p.m., Chair/Mayor Padilla adjourned the meeting to an Adjourned Meeting of the Redevelopment Agency on September 30, 2003, at 6:00 p.m., immediately following the City Council Meeting. S san Bigelow, CMC, City Clerk Page 3 Council/RDA Minutes / - '~ 09/16/03 REDEVELOPMENT AGENCY AGENDA STATEMENT ITEM NO.: 4~ MEETING DATE: 09/30/03 ITEM TITLE: RESOLUTION APPROVING AN AMENDED AND RESTATED OWNER PARTICIPATION AGREEMENT WITH HERCAB LIMITED LIABILITY COMPANY FOR THE DEVELOPMENT OF A 11,702 SQUARE FOOT CONCRETE BUILDING FOR A WAREHOUSE, RESEARCH, OFFICE, AND DISTRIBUTION CENTER AT 725 MAIN STREET WITHIN THE OTAY VALLEY REDEVELOPMENT PROJECT AREA AND AUTHORIZING CHAIR TO EXECUTE SAID AGREEMENT SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECT4~ ~-,~6'~ L~ REVIEWED BY: EXECUTIVE DIRECTO~ ~ ~/~ ~5THS VOTE: YES ~ NO ~ BACKGROUND RECOMMENDATION PAGE 2. ITEM NO.: MEETING DATE: 09/30/03 BOARDS/COMMISSIONS RECOMMENDATION In May 2000, the Resource Conservation Commission was scheduled to review the Negative Declaration for the proposed proiect. Due to the lack of commiffee quorum, a determination by the Environmental Review Coordinator deemed the proposed Negative Declaration as complete for the proposed project. On August 7, 2000, the Zoning Administrator approved a variance to the proposed proiect that reduced the building setback requirement from 40 to 25 feet, and reduced the parking setback requirement from 20 feet to 10 feet. On August 21, 2000, the Design Review Committee (DP, C) recommended approval of the proposed project to the Redevelopment Agency provided that the applicant submit a revised landscape and irrigation plan for review and approval by DRC. On August 22, 2000, Agency passed a resolution adopting Negative Declaration IS-00-28 and approving an Owner Participation Agreement with Desert King International (former owner of subject properh/) for the development of an 11,702 square foot concrete building for a warehouse, office, and distribution center. On September 18, 2001, Agency approved a one-year extension of the Owner Participation Agreement to allow the new owner, Hercab Limited Liability Company, additional time to comply with the conditions set forth in the Owner Participation Agreement. The extended OPA has since expired. Site Characteristics The project site, which is located in the Otay Valley redevelopment area, consists of a vacant near-level .94-acre site located at 725 Main Street, east of 1-805 and west of Maxwell Road. The project site has been cleared of all vegetation and does not represent viable habitat for any sensitive animal species. Surrounding uses and zoning include the following: · North: Light Industrial (Otay Industrial Park}; Industrial Precise Plan (IP) · East: Vacant Industrial lot; Industrial Precise Plan (IP} · South: Main Street · West: Industrial building; Industrial Precise Plan (IP} Project Proposal Hercab proposes an 11,702 square foot industrial concrete tilt up building that will be used as a warehouse, research, office, and distribution center. Once complete, the CIPESA Corporation, a company that specializes in the design of control panels for the food industry, will occupy the building. An estimated five people will be employed at the business, and a maximum of 2-3 trucks PAGE 3, ITEM NO.: MEETING DATE: 09/30/03 per week will visit the project site for loading/unloading. The total building area consists of the following: · Office - 3,125 square feet · Warehouse - 7,176 square feet · Mezzanine - 1,401 square feet (second floor) Lafld Use Compatibility The applicant's proposed building will be compatible with the standards of quality of the surrounding developments. The proposed warehouse, research, and accessory office use is consistent with the project site's zoning and land use designation, which are Industrial Precise Plan (IP) and Limited Industrial, respectively. Parkinq & Accessibility: The proposed project will provide a total of 25 on-site parking spaces, which is consistent with City regulations. Additionally, the applicant proposes to install one ~wenty-foot driveway (ingress) on Main Street near the most westerly properly line and to reconfigure an existing 26-foot driveway (egress) near the most easterly property line. Landscapinq The proposed project will provide landscaping that totals approximately 9,042 square feet. Specifically, the project will incorporate grass turf and shrubs along Main Street and the perimeter of the proiect site. The city's Design Review Committee (DRC) determined that the landscape plan was inadequate, and recommended approval of the project subject to the condition that the applicant submit a revised landscape and irrigation plan for DRC review and approval. DRC wanted to ensure that the left over triangle at the west end of the site is properly landscaped, and that the parking area is adequately screened with a combination of Iow decorative walls, berms, or shrubs. Amended and Restated Owner Participation Agreement The Owner Participation Agreement that was approved for the project on August 22, 2000, and extended for one year on September 18, 2001, has expired. As a result, Hercab is now required to enter into an Amended and Restated Owner Participation Agreement with the Agency, which will allow them to proceed with the project as proposed under the original Owner Participation Agreement. The Agreement is presented on the Agency's standard form. Among other requirements, Hercab is required to: 1. Develop the property in accordance with the approved development proposal subject to the conditions of all City Departments and the Design Review Committee; 2. Secure all necessary permits; and 3. Maintain the properly in first class condition. PAGE 4, ITEM NO.: MEETING DATE: 09/30/03 Conclusion Staff recommends approving the Amended and Restated Owner Participation Agreement with Hercab for the development of an 11,702 square foot concrete block building that will be used for a warehouse, research, office, and distribution center at 725 Main Street. The proposed project will be beneficial for the City, because it will convert an odd shape vacant parcel into a higher and better use, bring new private sector investment into the area, and contribute to the elimination of blight in the Otay Valley Redevelopment Area. The project is consistent with the City's Municipal Code and General Plan, and the Otay Valley Redevelopment Plan and Implementation Plan/Design Manual Addendum. FISCAL IMPACT The proposed project has an estimated valuation of $750,000 over base year value. This will generate an annual tax increment revenue of approximately $7,500, which will be distributed as follows: 20% ($1,500) for the Housing Set-Aside fund; and the remaining 80% ($6,000) will accrue to the Merged Project Area fund. ATTACHMENTS Attachment A - Resolution Attachment B - Amended Owner Participation Agreement J :\COMMDEV\ST AFF. REP\09 -30-03\Hercab.DOC ~-1 . --- AGENCY RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING AN AMENDED AND RESTATED OWNER PARTICIPATION AGREEMENT WITH THE HERCAB LIMITED LIABILITY COMPANY FOR THE DEVELOPMENT OF AN 11,702 SQUARE FOOT CONCRETE BUILDING FOR A WAREHOUSE, RESEARCH, OFFICE, AND DISTRIBUTION CENTER AT 725 MAIN STREET WITHIN THE OTAY VALLEY REDEVELOPMENT PROJECT AREA AND AUTHORIZING THE CHAIR TO EXECUTE SAID AGREEMENT WHEREAS, the project site consists of a vacant .94-acre site located at 725 Main Street in the Otay Valley Redevelopment Project Area under the jurisdiction and control of the Redevelopment Agency of the City of Chula Vista; and WHEREAS, on August 22, 2000 the Redevelopment Agency passed a resolution adopting Negative Declaration IS-00-28 and approving an Owner Participation Agreement with Desert King International for the development of an 11,702 square foot concrete building for a warehouse, office, and distribution center at the subject property; and WHEREAS, due to economic reasons, Desert King was unable to develop the subject property; and WHEREAS, the Hercab Limited Liability Company purchased the subject property and approved plans from Desert King for their proposed warehouse, research, office, and distribution center; and WHEREAS, on September 18, 2001, Agency approved a one-year extension of the Owner Participation Agreement to allow Hercab additional time to comply with the conditions set forth in the Owner Participation Agreement; and WHEREAS, Hercab did not meet the deadline for securing the necessary building permits as required under the extended Owner Participation Agreement; and WHEREAS, the Owner Participation Agreement that was approved for the project on August 22, 2000, and extended for one year on September 18, 2001, has expired; and WHEREAS, Hercab has now regrouped and demonstrated to staff that they are ready to proceed with the proposed project; and WHEREAS, Hercab is entering into an Amended and Restated Owner Participation Agreement with the Agency in order to continue the project as proposed under the original Owner Participation; and WHEREAS, the Redevelopment Agency of the City of Chula Vista has presented an Amended and Restated Owner Participation Agreement, said agreement being on file in the Office of the Secretary to the Redevelopment Agency and known as document RACO 00- approving the development of an 11,702 square foot concrete building for a warehouse, offic~ use, and distribution center in the Otay Valley Redevelopment Project Area, as depicted in Exhibit B and subject to the conditions listed in Exhibit C of said agreement; 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 proposed project will not have a significant impact on the environment; accordingly Negative Declaration IS-00-28 was prepared and adopted in accordance with CEQA. 2. The proposed proiect is allowed under the City of Chula Vista Municipal Code and General Plan, and is consistent with the ©tay Valley Redevelopment Plan and the Implementation Plan/Design Manual Addendum. 3. The proposed project will be beneficial for the City of Chula Vista, because it will convert a vacant parcel into a higher and better use, bring new private sector investment into the project area, and contribute to the elimination of blight. 4. The Redevelopment Agency of the City of Chula Vista hereby approves an Amended and Restated Owner Participation Agreement with the Hercab Limited Liability Company for the construction of an 11,702 square foot concrete building for a warehouse, research, office, and distribution center at 725 Main Street in the Otay Valley Redevelopment Project Area, in the form presented in accordance with the plans that were approved under the Amended and Restated Owner Participation Agreement. 5. The Chairman of the Redevelopment Agency is hereby authorized to execute the Amended and Restated Owner Participation Agreement between the Redevelopment Agency and the Hercab Limited Liability Company. 6. The Secretary of the Redevelopment Agency is authorized to record said Amended and Restated Owner Participation Agreement in the Office of the County Recorder of San Diego, California. Presented by Approved as to form by Laurie Madigan A~n~~ Community Development Director C~ty ~and Agency Recording Requested By: CHULA VISTA REDEVELOPMENT AGENCY 276 Fourth Avenue Chula Vista, CA 919'10 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: 644.040.46 AMENDED AND RESTATED OWNER PARTICIPATION AGREEMENT Hemab Limited Liability Company 725 Main Street (formerly Otay Valley Road) THIS AGREEMENT ("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 HERCAB LIMITED LIABILITY COMPANY, a Califomia Corporation, ("DEVELOPER") effective as of September 30, 2003. WHEREAS, the DEVELOPER desires to develop real property within the OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA which is subject to the jurisdiction and contrel of the AGENCY; and, WHEREAS, on August 22, 2000, AGENCY passed a resolution adopting Negative Declaration IS-00-28 and approving an Owner Participation Agreement with Desert King International for the development of an 11,702 square foot concrete building for a warehouse, office, reseamh, and distribution center at 725 Main Street within the OTAY VALLEY REDEVELOPMENT PROJECT AREA; and WHEREAS, the DEVELOPER, pumhased the subject property and approved plans from Desert King for a proposed warehouse, research, office, and distribution center; and WHEREAS, on September 18, 2001, AGENCY approved a one-year extension of the Owner Participation Agreement to allow the DEVELOPER additional time to comply with the conditions set forth in the Owner Participation Agreement; and WHEREAS, the DEVELOPER did not meet the deadlines for securing the necessary building permits as required under the extended Owner Participation Agreement; and WHEREAS, the DEVELOPER is entedng into this AGREEMENT with the AGENCY in order to continue the Project as proposed under the original Owner Participation Agreement; 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 Number 644-040-46 located at 725 Main Street (formerly Otay Valley Road), Chula Vista, CA., shown on the Iocator map attached hereto as Exhibit "A" and by this reference incorporated herein ("Property"). 2. The DEVELOPER covenants and agrees by and for itself, it's 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 development proposal attached hereto as Exhibit "B". B. DEVELOPER shall obtain all necessary federal/state and local govemmental permits and approvals and abide by all applicable federal, state and local taws, regulations, policies and approvals in connection with the development of the Project. DEVELOPER further agrees that the effectiveness of 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 shall actually develop the Property 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 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, national origin 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 hireself, his heirs, executors, administrators and assigns, and all persons claiming under orthreugh 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 odgin, 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 Design Review Committee and the AGENCY as described in Exhibit "C" attached hereto and incorporated herein by this reference. DEVELOPER acknowledges the validity of and agrees to accept such conditions. 4. DEVELOPER agrees that, if the AGENCY proceeds to form a Special Assessment District for the construction or roaintenance of parking facilities, common areas or other public facilities that benefit the Project, subject to this AGREEMENT, DEVELOPER hereby waives any fight it may have to protest the formation of such Special Assessment District. Said waiver shall not preclude the DEVELOPER from protesting the amount of any assessment on the Property. 5. 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 ail applicable taws, permits, licenses and other governmental authorizations, rules, ordinances, orders, decrees and regulations now or hereafter enacted, issued or promulgated by federal, state, county, municipal, and other govemmental agencies, bodies and courts having or claiming jurisdiction and all their respective departments, bureaus, and officials. If the DEVELOPER fails to maintain the Property in a "first class condition", the AGENCY or its agents shall have the fight to go on the Property and perform the necessary maintenance and the cost of said maintenance shall become a lien against the Property. AGENCY shall have the right to enfome 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 ail 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 shall be completed by DEVELOPER whether or not funds are available from insurance proceeds or subtenant contributions. C. 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 promptty reimbursed by the DEVELOPER. D. 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. 6. AGENCY and DEVELOPER agree that the covenants of the DEVELOPER expressed herein shall run with the land. DEVELOPER shall have the right, without prior approval of AGENCY, to assign its fights and delegate its duties under this AGREEMENT. 7. 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 OTAY VALLEY ROAD REDEVELOPMENT 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 within the boundaries of the OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA. 8. AGENCY and DEVELOPER agree that this AGREEMENT may he recorded by the AGENCY in the Office of the County Recorder of San Diego County, California. 9. 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 adsing, directly or indirectly, from (a) AGENCY'S approval of this AGREEMENT, (b) AGENCY'S or City's approval or issuance of any other perm it or action, whether discretionary or non-discretionary, in connection with the Project contemplated herein, and (c) DEVELOPER'S construction and operation of the Project. 10. In the event of any dispute between the parties with respect to the obligations under this AGREEMENT that results in litigation, the prevailing pa~ shall be entitled to recover its reasonable attorney's fees and court costs from the non-prevailing party. 11. Time is of the essence for each and every obligation hereunder. 12. If BEVELOPER 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 all other rights and remedies AGENCY may have, at law or in equity, the AGENCY shall have the right to terminate its approval of the Project and this AGREEMENT. 13. DEVELOPER and AGENCY agree that notwithstanding Section 600.40, Conforming Owners and Participation by Property Owners and Business Tenants for the OTAY VALLEY REDEVELOPMENT PROJECT AREA, adopted by the AGENCY on December 1983, the AGENCY expressly retains its dght to exemise its eminent domain powers as it relates to the Property. Signature Page Follows Signature Page To Amended and Restated Owner Participation Agreement with Hercab Limited Liability Company IN WITNESS WHEREOF THE PARTIES HAVE ENTERED INTO THIS AGREEMENT EFFECTIVE AS OF THE DATE FIRST WRITTEN ABOVE. "AGENCY" REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA By: Stephen C. Padilla, Chairman "DEVELOPER" Hemab Limited Liability Company By: ~C:~ ~)_ ~ SUBSCRIBED AND SWORN TO BEFORE ME H,e Jose Hemandez, President (& Manager) NOTARY: Please attach acknowledgment card. APPROVED AS TO FORM BY: ~ My Comm~ F. x4=k~ Mot 6, 2007 Ann Moore, Agency Attomey ATTEST: Laurie Madigan, Community Development Director 02, Exhibit A - Locater Map Exhibit B - Reduced Copies of Project Design Plans Exhibit C - Conditions of Approval Follow Exhibit B For Recording Purposes Only AMENDED AND RESTATED OWNER PARTICIPATION AGREEMENT 725 Main Street (formerly Otay Valley Road} Redevelopment Agency of the City of Chula Vista And Hercab Limited Liability Company The drawings comprising Exhibit B of the above-described Amended and Restated Owner Participation Agreement are not suitable for recording; thus, reference is made to the original of this document or a copy thereof, which is in the possession of Hercab Limited Liability Company and the Redevelopment Agency of the City of Chula Vista. Exhibit B includes 9 pages, which were prepared by R.S. Herman Architects, Inc., 6009 Melrose Avenue, Los Angeles, CA 90038. The plans include: Page 1 Architectural Site Plan; Sheet Number A-101 Page 2 Presentation Site Plan; Sheet Number A-102 Page 3 Vicinity Site Plan; Sheet Number A-103 Page 4 Grading Plan; Sheet Number C-201 Page 5 Floor Plan; Sheet Number A-201 Page 6 Building Sections; Sheet Number A-301 Page 7 Exterior Elevations; Sheet Number A-302 Page 8 Site Plan; Sheet Number A-701 Page 9 Landscape Planting Plan; Sheet Number AD-801 / ~!! ~ I /Iii / / / / / /' / ,;,'/i/ /' EXHIBIT C Conditions of Approval Amended and Restated Owner Participation Agreement Hercab Limited Liability Company CONDITIONS OF APPROVAL 1. The site shall be developed and maintained in accordance with the approved plans, which include site plans, amhitectural elevations, exterior materials and colors, and landscaping on file in the Community Development Department, the conditions contained herein, and Title 19 of the City of Chula Vista Municipal Code. 2. Pdor to issuance of any sign permit, a sign program needs to be approved by the Design Review Committee. 3. Prior to any use of the project site all conditions of approval shall be completed to the satisfaction of the Community Development Director. 4. Approval of this request shall not waive compliance with all sections of the Municipal Code and all other applicable City Ordinances in effect at the time of building permit issuance. 5. All ground mounted utility appurtenances such as transformers, AC condensers, etc. shall be located out of public view and adequately screened through the use of a combination of wails, berms, and/or landscaping to the satisfaction of the Community Development Director. 6. All roof appurtenances, including air conditioners and other roof mounted equipment and/or projections shall be screened from view and the sound buffered from adjacent properties to the satisfaction of the Community Development Director. Such screening shall be amhitecturally integrated with the building design and constructed to the satisfaction of the Community Development Director. Details shall be included in building plans. 7. A graffiti resistant treatment shall be specified for all wall and building surfaces. This shall be noted on any building and wall plans and shall be reviewed and approved by the Community Development Department. Additionally, the project shall conform to Sections 9.20 of the Chula Vista Municipal Code regarding graffiti control. 8. Provide sufficient space for designated "recyclables" and ensure that provisions are made to meet the minimum 50% recycling requirement to the satisfaction of the Recycling Coordinator for the City of Chula Vista. 9. The following fees will be required, based on the final building plans submitted; sewer capacities and connection fees, development impact fees, and traffic signal fees. 10. Permits are required for all buildings, signege, and exterior lighting. 11. Plans and construction must comply with the 1998 Uniform Building Code, Uniform Plumbing Code, and Uniform Mechanical Code. Plans and construction must comply with the 1996 National Electrical Code. Plans shall also comply with Title 24 Energy and disabled access requirements. 12. School fees shall be paid to the appropriate school districts as part of the building permit process. 13. Prior to the issuance of building permits, the Developer shall submit a revised landscape plan and irrigation plan for review and approval by the Design Review Committee. Said plan shall include an adequate combination of Iow decorative walls, berms and/or shrubs to effectively screen the parking area from Main Street (formerly Otay Valley Road), as well as the left over triangle at the west end of the site, and the area between the street and the building. 14. Prior to the issuance of building permits, the triangular area to the west of the driveway shall be reviewed by the Design Review Committee to determine the appropriate landscape and i~gation for that portion of the property in relation to the ultimate plans for Main Street {formerly Otay Valley Road) and Developer shall install landscape and irrigation as called for by the Design Review Committee. 15. Prior to the issuance of a building permits, a water management plan shall be submitted to the City Landscape Planner for review and approval. 16. Any work in the public right of way shall require a construction permit issued by the Engineering Division. 17. Prior to the issuance of a building permit, the private ingress/egress easement shall be relocated since the proposed building will be developed within the existing easement. ~ _ ,,~.,.~,/~ 18. Developer shall obtain a grading permit if required. PAGE 1. ITEM NO.: ~ MEETING DATE: 09/30/03 JOINT REDEVELOPMENT AGENCY / CITY COUNCIL AGENDA STATEMENT ITEM TITLE: JOINT AGENCY/COUNCIL RESOLUTION APPROVING THE 2003 HOLIDAY LIGHTING PROGRAM; AUTHORIZING WAIVING THE FORMAL BIDDING PROCESS AND AWARDING A SOLE SOURCE PURCHASE AGREEMENT TO DEKRA-LITE; APPROPRIATING FROM THE AVAILABLE BALANCE OF THE RCT FUND ($54,000) AND TCI FUND ($17,400); AND DIRECTING STAFF TO IMPLEMENT THE 2003 HOLIDAY LIGHTING PROGRAM SUBMITTED BY: COMMUNITY DEVELOPMENT/.~CTOR REVIEWED BY: CITY MANAGER~~ ~,~ ~/5THSVOTE. YES ~NO [] BACKGROUND The city's Holiday Lighting Program was initiated in 1998 in response to the end of the holiday lighting and displays that took place for many years on Candy Cane Lane at Guava Avenue. Downtown business merchants originally proposed the idea of downtown holiday lighting, which led to a partnership between the. City and the Downtown Business Association to develop a festive holiday program for the downtown area. Soon after, a I~equest for Proposal (RFP) was prepared to solicit bids from specialty lighting and decoration companies. Dekra-Lite, a company based in Santa Ana, was eventually selected due to their ability to meet the RFP's program goals, the excitement and quality of their design, and proiect cost. Dekra-Lite has since worked diligently with the City in implementing this popular annual program. At this time, staff is requesting that Agency/Council waive the formal bidding process and award a sole source purchase agreement to Dekra-Lite to implement the 2003 Holiday Lighting Program, which includes the cost for labor services and new replacement parts. The recommendation to waive the formal bidding process is based on the limited market for this type of service, Dekra-Lite's past satisfactory performance, and because the company supplied the original holiday lights, displays, and banners. RECOMMENDATION 1. Approving the 2003 Holiday Lighting Program; 2. Authorizing waiving of the formal bidding process and awarding a sole source purchase agreement to Dekra-Lite; 3. Appropriating $54,000 from the Residential Construction Tax (I~CT) Fund, and $17,400 from the Town Centre I Fund (materials only); and 4. Directing staff to implement the 2003 Holiday Lighting Program. PAGE 2, ITEM NO.: MEETING DATE: 09/30/03 BOARDS/COMMISSiONS RECOMMENDATION The Town Centre Project Area Commiflee and the Downtown Business Association support the 2003 Holiday Lighting Program. The Holiday Lighting Program is a continued effort undertaken by the City to celebrate the holiday season. Since the program's inception, Dekra-Lite has decorated the downtown area with a variety of colorful holiday lights, displays, and thematic banners, including the lighting of three freeway overpasses (H Street at I-5, and H and J Streets at 1-805). Except for a single modification, the 2003 Holiday Lighting Program is identical to last year's program. The alteration to this year's program is related to the major reconstruction effort along Fourth Avenue that is underway and expected to last until the end of the year. In an effort to avoid any potential construdion interruptions, there will be no installation of lighting to the trees in the median located at Memorial Way next to City Hall. The lone exception is to the large tree in front of the Mayor's Office, which will be decorated for the holiday season. The Fiscal Impact section of this report provides a break down of the costs associated with implementing this year's program. The 2003 Holiday Lighting Program will officially commence following the conclusion of the Downtown Starlight Yule Parade, which usually takes place on the first Saturday of December. However, part of the program involves installing tree lights in the downtown area in mid-October and keeping them up until April to correspond to daylight savings time. Since Dekra-Lite's business centers on the holidays, their customers require the same installation dates, which requires Dekra- Lite to accommodate orders on a first come, first serve basis. As a result, it is important for the City to provide Dekra-Lite with a purchase order by early Odober in order to secure installation dates. For the past four years, the City has issued a purchase order to Dekra-Lite to continue the Holiday Lighting Program. Staff is recommending waiving the formal bidding process and awarding a sole source purchase agreement to Dekra-Lite to implement this year's program, which includes the cost for labor services and new replacement parts. As mentioned earlier in the report, the recommendation to waive the formal bidding process is based on the limited market for this type of service, Dekra-Lite's past satisfadory performance, and because the company supplied the original holiday lights, displays, and banners. FISCAL IMPACT The total cost to implement the 2003 Holiday Lighting Program is $73,562. Staff has identified $54,000 in RCT Funds, and $17,400 from the RDA Town Centre I Fund (materials only), to pay for the costs associated with implementing this year's program. Additionally, the Downtown Business Association (DBA) has agreed to provide $2,500 for program implementation. The DBA is also setting aside an additional $2,500 for program related costs. Please note that Town Centre redevelopment funds can only be used to pay for materials (not labor) in the Town Centre area. Therefore, a portion of designated RCT Funds will cover all the costs associated with lighting the freeway overpasses. The following provides a break down of the costs associated with implementing the 2003 Holiday Lighting Program. PAGE 3, ITEM NO.: MEETING DATE: 09/30/03 PRODUCT LABOR/ SERVICES DEKRA-LITE PROPOSAL: COSTS COSTS Freeway Overpass Lighting (3) 3,150 Tree Lighting (95) 7,128 22,500 Third Avenue Displays and Decorations 1,686 15,621 Memorial Park Displays and Decorations 1,200 10,495 Public Parking Lot Banners and Decorations 2,800 2,859 County Court House Displays and Decorations 2,125 Electrician for installation 1,600 Cleaning of parking lot, Third Avenue banners, bell pole 850 decorations, & tree pole decorations 2 new digital timers for displays 120 SUBTOTAL DEKRA-LITE PROPOSAL $12,934 $59,200 APPLICABLE SALES TAX AND SHIPPING $1,003 SHIPPING $425 SUBTOTAL $14,362 TOTAL $73,562 J:\COMMDEV~STAFF.REP\09-30-03\2003 Holiday Lighting Program.doc RESOLUTION NO. 2003- (AGENCY RESOLUTION NO. ) JOINT AGENCY/COUNCIL RESOLUTION APPROVING THE 2003 HOLIDAY LIGHTING PROGRAM; AUTHORIZING WAIVING THE FORMAL BIDDING PROCESS AND AWARDING A SOLE SOURCE PURCHASE AGREEMENT TO DEKRA-LITE; APPROPRIATING FROM THE AVAILABLE BALANCE OF THE RCT FUND ($54,000) AND TCI FUND ($17,400); AND DIRECTING STAFF TO IMPLEMENT THE 2003 HOLIDAY LIGHTING PROGRAM WHEREAS, the City of Chula Vista initiated the Holiday Lighting Program in 1998 in response to the end of the holiday lighting and displays on Candy Cane Lane; and WHEREAS, at that time, a request for proposal was prepared to solicit bids from specialty lighting and decoration companies; and WHEREAS, in October 1998, Dekra-Lite, a holiday lighting and decoration company based in Santa Aha, was selected due to their ability to meet the request for proposal's program goals, the excitement and quality of their design, and project cost; and WHEREAS, since then, Dekra-Lite has worked diligently with the City for the past four years in implementing the Holiday Lighting Program; and WHEREAS, staff is requesting that the City Council and Redevelopment Agency waive the formal bidding process and award a sole source purchase agreement to Dekra-Lite to implement the 2003 Holiday Lighting Program, which includes the cost for labor services and new replacement parts; and WHEREAS, the formal bidding process is being waived based on the limited market for this type of service, Dekra-Lite's past satisfactory performance, and because Dekra-Lite supplied the original holiday lights, displays, and banners; and WHEREAS, staff has identified $54,000 of Residential Construction Tax (RCT) funds and $17,400 from the RDA Town Centre I Fund (materials only) to pay for the costs associated with implementing the 2003 Holiday Lighting Program; and WHEREAS, the City Council and the Redevelopment Agency have reviewed the proposed 2003 Holiday Lighting Program as presented in the Joint Redevelopment Agency/City Council Agenda Statement dated September 30, 2003. NOW, THEREFORE, BE IT RESOLVED that the City Council and the Redevelopment Agency of the City of Chula Vista do hereby: 1. Approve the 2003 Holiday Lighting Program; 2. Authorize waiving the formal bidding process and awarding a sole source purchase agreement to Dekra-Lite; 3. Appropriate $54,000 from the Residential Construction Tax Fund and $17,400 from the Town Centre I Fund (materials only) to pay for the costs associated with implementing the 2003 Holiday Lighting Program; and 4. Direct staff to implement the 2003 Holiday Lighting Program. Presented by Approved as to form by Laurie Madigan Ann Moore Director of Community Development City Attorney and Agency Counsel J:\COMMDEV~RESOS\Holiday Lighting 2003 v2.doc 2003 Holiday Lighting Program Community Development Department 2003 Holiday Lighting Program Al~emorial Park Community Development Department