HomeMy WebLinkAboutRDA Packet 2002/12/10
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CllY OF
TUESDAY, DECEMBER 10, 2002 (HUlA VISfA COUNCIL CHAMBERS
6:00 P.M. PUBLIC SERVICES BUILDING
(immediately following the City Council meeting)
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 foliowing item Is) listed under the Consent Calendar wili 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 pulied for discussion. If you wish to speak on one of these items,
please fili 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 pulied from the Consent Calendar will be
discussed after Action items. Items pulied by the public wili be the first items of business.
1. APPROVAL OF MINUTES - November 12, 2002; November 26, 2002
2. AGENCY RESOLUTION APPROVING A PURCHASE AGREEMENT FOR
PROPERTY LOCATED AT 201 THIRD AVENUE FOR REDEVELOPMENT
PURPOSES AND APPROPRIATING $350,000 FROM THE AVAILABLE FUND
BALANCE IN THE MERGED PROJECT AREA FUND FOR REPAYMENT OF
OUTSTANDING ADVANCES FROM THE BA YFRONT ITOWN CENTRE I
PROJECT AREA FUND AND APPROPRIATING $350.000 FROM
UNANTICIPATED REVENUES IN THE BAYFRONT/TOWN CENTRE I PROJECT
AREA FUND FOR PROPERTY ACQUISITION COSTS - The subject parcel
located at 201 Third Avenue has been vacant for a number of years and
became available for purchase this year. This key parcel is located at the
northern gateway into the Town Centre I Redevelopment Project Area and
the Third Avenue shopping district. In order to help ensure that a significant
anchor project be developed at this critical intersection, the parcel is
recommended for purchase by the Agency to be included in a larger scale
project envisioned for the site. The ultimate development of the project is
yet to be determined. but could include an urban mixed-use project of at
least two to three stories, a continuation of the "main street" ground floor
retail look and feel of Third Avenue, and architectural design inviting visitors
into the Third Avenue district. This action will approve the acquisition and
provide funding for this purpose. [Community Development Director]
ORAL COMMUNICATIONS
This is an opportunity for the general public to address the Redevelopment Agency on any subject matter
within the Agency's jurisdiction that is not an item on this agenda. IState law, however, generally prohibits
the Redevelopment Agency from taking action on any issues not included on the posted agenda.) if you wish
to address the Agency on such a subject, please complete the "Request to Speak Under Orai Communications
Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to
the meeting. Those who wish to speak, please give your name and address for record purposes and foliow up
action.
PUBLIC HEARING
The foliowing item Is) have been advertised and/or posted as public hearings as required by law. If you wish to
speak to any item, please fili 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.
3. CONSIDERATION OF COASTAL DEVELOPMENT PERMIT NUMBER 74 FOR
HIGHWAY WORK TO BE DONE BY CALTRANS ALONG INTERSTATE 5 &
STATE ROUTE 54 INVOLVING INSTALLATION OF PLANTING MATERIALS
AND IRRIGATION SYSTEMS, DECORATIVE CONCRETE AND ROCK
TREATMENTS. AND MAINTENANCE VEHICLE PULLOUTS WITH GORE
PAVING - The California State Department of Transportation (CaITrans) is
proposing to renovate existing plant materials and irrigation systems and to
provide maintenance vehicle pullouts and gore pavings along Interstate 5
between E Street in Chula Vista and 24th Street in National City and along
State Route 54 between 1-5 and Interstate 805. Portions of the project are
located within the City of Chula Vista Coastal Zone within the City's coastal
permit jurisdiction. [Community Development Director]
AGENCY/COUNCIL RESOLUTION AUTHORIZING THE ISSUANCE OF
COASTAL DEVELOPMENT PERMIT NO. 74 FOR HIGHWAY WORK TO BE
DONE BY CAL TRANS ALONG INTERSTATE 5 (I-51 & SR-54 INVOLVING
INSTALLATION OF MAINTENANCE VEHICLE PULLOUTS WITH GORE PAVING
STAFF RECOMMENDATION: Agency/Council adopt the resolution.
4. DIRECTOR'S REPORT(SI
5. CHAIR/MAYOR REPORTISI
6. AGENCY/COUNCIL COMMENTS
ADJOURNMENT
The meeting will adjourn to a closed session and thence to the regular meeting of
the Redevelopment Agency on December 17, 2002, at 6:00 p.m., immediately
following the City Council meeting in the City Council Chambers.
Redevelopment Agency, December 1O, 2002 Page 2
CLOSED SESSION
Unless Agency Counsel. the Executive Director, or the Redevelopment Agency/City Council states otherwise at
this time, the Agency/Council wili discuss and deliberate on the foliowing item Is) 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 wili 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 will 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 IGovt. Code § 54957.7)
7. CONFERENCE WITH LEGAL COUNSEL REGARDING INITIATION OF
LlTIGATlON--Pursuant to Government Code Section 54956.9(cl
One Case
8. CONFERENCE WITH REAL PROPERTY NEGOTIATOR --Pursuant to
Government Code Section 54956.8
a. Property: Assessor Parcel Nos. 568-044-09 (approx. 0.12
acres); 568-044-10 (approx. 0.30 acres); 568-
044-11 (approx. 0.26 acres); 568-152-01 (approx.
0.13 acres); 568-152-23 (approx. 0.14 acres);
568-132-24 (approx. 0.13 acres); 568-132-25
(approx. 0.13 acres); 568-132-26 (approx. 0.08
acres); 568-132-27 (approx. 0.07 acres) all
located on Landis Avenue Public Parking Lots
between 299 Landis and 281 Landis Avenue
Negotiating Parties: Chris Salomone (Redevelopment Agency) and
Pacific Scene (2505 Congress Street, Suite 220,
San Diego)
Under Negotiations: Instructions to negotiators
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 16191
691-5047 or Telecommunications Devices for the Deaf (TDD) at 16191 585-5647. California Relay Service is
also available for the hearing impaired.
Redevelopment Agency, December 10, 2002 Page 3
MINUTES OF ADJOURNED REGULAR MEETINGS OF
THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
November 12, 2002 6:00 p.m.
Adjourned Regular Meetings of the City Council and the Redevelopment Agency of the City of
Chula Vista were called to order at 9:45 p.m. in the Council Chambers, located in the Public
Services Building, 276 Fourth Avenue, Chula Vista, California.
ROLL CALL:
PRESENT: Agency/Councilmembers: Davis, Padilla, Rindone, Salas, and
Chair/Mayor Horton
ABSENT: Agency/Councilmembers: None
ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/City
Attorney Kaheny, and City Clerk Bigelow
CONSENT CALENDAR
1. APPROVAL OF MINUTES - November 5, 2002
Staffrecommendation: Agency/Council approve the minutes.
2. AGENCY RESOLUTION NO. 180l, RESOLUTION OF THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2003
BUDGET TO APPROPRIATE $63,332 FROM THE AVAILABLE FUND BALANCE
IN THE MERGED PROJECT AREA FUND FOR REPAYMENT OF ADVANCES TO
THE BAYFRONT/TOWN CENTRE I PROJECT AREA FUND AND
APPROPRIATING $63,332 FROM UNANTICIPATED REVENUES IN THE
BAYFRONT/TOWN CENTRE 1 PROJECT AREA FUND FOR GATEWAY CHULA
VISTA PHASE 1 PERMIT FEE REIMBURSEMENTS PURSUANT TO THE
ADOPTED DISPOSITION AND DEVELOPMENT AGREEMENT
Under the provisions of the adopted disposition and development agreement for the
Gateway Chula Vista project, the developer is entitled to reimbursement of up to fifty
percent of City permit fees (not to exceed $91,000) for the first phase of the project. The
developer has submitted evidence of permit fees paid for Phase 1 permits totaling
$126,663. These permit fee payments have been verified, and a reimbursement of
$63,332 will be made with this appropriation action. (Community Development
Director)
Staffrecommendation: Agency adopt the resolution.
3. COUNCIL RESOLUTION NO. 2002-461 AND AGENCY RESOLUTION NO. 1802,
RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA, 1) APPROVING PARTICIPATION IN THE SAN
DIEGO REGIONAL REVOLVING LOAN FUND PROGRAM; 2) APPROVING A
MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY OF SAN
1- I
CONSENT CALENDAR (Continued)
DIEGO AND THE CITY OF CHULA VISTA AND AUTHORIZING THE CITY
MANAGER TO SIGN; AND 3) AMENDING THE FISCAL YEAR 2003 BUDGET BY
APPROPRIATING $124,897 FROM THE AVAILABLE FUND BALANCE IN THE
MERGED PROJECT AREA FUND FOR REPAYMENT OF ADVANCES TO THE
BAYFRONT/TOWN CENTRE PROJECT AREA FUND AND APPROPRIATING
$124,897 FROM UNANTICIPATED REVENUES IN THE BAYFRONT/TOWN
CENTRE 1 PROJECT AREA FUND FOR THE SAN DIEGO REGIONAL
REVOLVING LOAN FUND
Adoption of the resolution approves participation in a $3 million revolving loan fund
program that is funded by a $1.5 million grant from the federal Economic Development
Administration and matching funds ftom the cities of National City ($250,000), Imperial
Beach ($150,000), San Diego ($1,000,000), and Chula Vista ($100,000). The purpose of
the loan program is to stimulate economic activity by providing loans to small and
medium-sized businesses located specifically in low to moderate income census tract
areas. (Community Development Director)
Staff recommendation: Agency/Council adopt the resolution.
ACTION: Agency/Councilmember Rindone moved to approve staffs recommendations and
offered the Consent Calendar, headings read, texts waived. The motion carried
5-0.
ORAL COMMUNICATIONS
There were none.
OTHER BUSINESS
4. DIRECTOR'S REPORTS
There were none.
5. CHAIR/MA YOR REPORTS
There were none.
6. AGENCY/COUNCIL COMMENTS
There were none.
CLOSED SESSION
7. CONFERENCE WITH LEGAL COUNSEL REGARDING ANTICIPATED
LITIGATION - Pursuant to Government Code Section 54956.9(b)
One Case
This item was not discussed, and no action was taken.
Page 2 CouncilJRDA Minutes 1- ~ 11112/2002
CLOSED SESSION (Continued)
8. CONFERENCE WITH LEGAL COUNSEL REGARDING INITIATION OF
LITIGATION - Pursuant to Government Code Section 54956.9(c)
One Case
This item was not discussed, and no action was taken.
9. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Government
Code Section 54956.8
a. Property: Assessor Parcel Nos. 568-071-0100 (approximately
.23 acres located at 201 Third Avenue)
Negotiating Parties: Chris Salomone (Redevelopment Agency) and Dan
Floit, owner
Under Negotiation: Price and terms for acquisition
ACTION: Direction was given to Counsel.
ADJOURNMENT
At 10:10 p.m., Chair/Mayor Horton adjourned the meeting to the Regular Meeting of the
Redevelopment Agency on November 19, 2002, at 6:00 p.m., immediately following the City
Council meeting.
~á..u~~ ~J/;;) )
Susan Bigelow, CMC, City Clerk
Page 3 Council/RDA Minutes /-3 11/12/2002
MINUTES OF ADJOURNED REGULAR MEETINGS OF
THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
November 26, 2002 6:00 p.m.
Adjourned Regular Meetings of the City Council and the Redevelopment Agency ofthe City of
Chula Vista were called to order at 7:05 p.m. in the Council Chambers, located in the Public
Services Building, 276 Fourth Avenue, Chula Vista, California.
ROLL CALL:
PRESENT: Agency /Councilmembers: Davis, Padilla, Rindone, Salas, and
Chair/Mayor Horton
ABSENT: Agency/Councilmembers: None
ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/City
Attorney Kaheny, and City Clerk Bigelow
CONSENT CALENDAR
1. COUNCIL RESOLUTION NO. 2002-487 AND AGENCY RESOLUTION NO. 1803,
RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA EXERCISING THE CITY'S OPTION TO
EXTEND THE CONTRACT WITH ADVOCATION, INC. FOR LEGISLATIVE
REPRESENTATION FOR THE 2003-2004 LEGISLATIVE SESSION, AND
AUTHORIZING THE MAYOR/CHAIR TO EXECUTE AN AGREEMENT ON
BEHALF OF THE CITY OF CHULA VISTA
On 12/31/02, the current agreement with Advocation, Inc. expires. This agreement was
for the provision of legislative representation in Sacramento throughout the 2001-2002
legislative session. Based on the firm's success in promoting Chula Vista's legislative
agenda, staff recommends exercising the City's option to extend this contract. (City
Attorney, Intergovernmental Affairs Coordinator, Community Development Director)
Staff recommendation: Agency/Council adopt the resolution.
ACTION: Agency/Councilmember Davis offered City Council Resolution No. 2002-487
and Redevelopment Agency Resolution No. 1803, headings read, texts waived.
The motion carried 5-0.
ORAL COMMUNICATIONS
There were none.
ACTION ITEMS
2. AGENCY RESOLUTION NO. 1804, RESOLUTION OF THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA APPROVING THE PRELIMINARY
PLAN FOR THE REDEVELOPMENT PROJECTS AMENDMENT AND MERGER
AND AUTHORIZING SUBMITTAL OF THE PRELIMINARY PLAN
/-4
ACTION ITEMS (Continued)
The proposed redevelopment plan amendment would 1) merge the redevelopment plans
for the Bayfront, Town Centre 1, Town Centre II, Otay Valley, and Southwest
Redevelopment Projects to create a "Merged Project Area;" 2) add 528 acres of non-
contiguous commercially and industrially zoned property in western Chula Vista; and 3)
aggregate tax increment revenues among the constituent redevelopment project areas,
establish uniform redevelopment plan policies, and potentially designate distinct planning
areas tailored to serve the needs of the various components of the "Merged Project Area."
State redevelopment law would preserve each constituent redevelopment project's
accounting, tax sharing formulas, and limitations. (Community Development Director)
Senior Community Development Specialist Tapia presented the preliminary plan.
ACTION: Agency/Councilmember Padilla offered Agency Resolution No. 1804, heading
read, text waived:
AGENCY RESOLUTION NO. 1804, RESOLUTION OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
APPROVING THE PRELIMINARY PLAN FOR THE REDEVELOPMENT
PROJECTS AMENDMENT AND MERGER AND AUTHORIZING
SUBMITTAL OF THE PRELIMINARY PLAN
The motion carried 5-0.
PUBLIC HEARINGS
3. CONSIDERATION OF ADOPTION OF PROCEDURES FOR THE FORMATION OF
A PROJECT AREA COMMITTEE FOR THE REDEVELOPMENT PROJECTS
AMENDMENT AND MERGER
The proposed expansion and merger of the redevelopment project areas located in the
western part of the City include properties with commercial and industrial zoning
designations that are not currently in any of the five redevelopment areas. Although the
expansion area is zoned commercial or industrial, it contains some properties that have
residential uses occupied by low and moderate-income persons. Therefore, a Project
Area Committee must be formed, and procedures for the formation and election of this
committee are required pursuant to State redevelopment law. (Community Development
Director)
Notice of the hearing was given in accordance with legal requirements, and the hearing was held
on the date and at the time specified in the notice.
Chair/Mayor Horton opened the public hearing. There being no members of the public wishing
to speak, she then closed the hearing.
Page 2 Council/RDA Minutes I-C 11/26/2002
PUBLIC HEARINGS (Continued)
ACTION: Agency/Councilmember Davis offered Council Resolution No. 2002-488,
heading read, text waived:
RESOLUTION NO. 2002-488, RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF CHULA VISTA ADOPTING THE PROCEDURES FOR THE
FORMATION OF A PROJECT AREA COMMITTEE FOR THE
REDEVELOPMENT PROJECTS AMENDMENT AND MERGER
The motion carried 5-0.
4. CONSIDERATION OF PRECISE PLAN PCM-03-04 FOR THE DEVELOPMENT OF
AN INDUSTRIAL PROJECT THAT INCLUDES APPROXIMATELY 153,000
SQUARE FEET OF OFFICE, MANUFACTURING AND WAREHOUSE SPACE AT
3441 MAIN STREET WITHIN THE SOUTHWEST REDEVELOPMENT PROJECT
AREA
The McMahon Development Group is proposing to acquire the lOA5-acre site at 3441
Main Street to construct an industrial complex consisting of three office, manufacturing,
and warehousing buildings of approximately 153,000 square feet of space. (Community
Development Director)
Notice of the hearing was given in accordance with legal requirements, and the hearing was held
on the date and at the time specified in the notice.
Senior Community Development Specialist Tapia presented the proposed project.
Chair/Mayor Horton opened the public hearing. With no members of the public wishing to
speak, she then closed the hearing.
ACTION: Agency/Councilmember Davis offered Agency Resolution No. 1805, heading
read, text waived:
AGENCY RESOLUTION NO. 1805, RESOLUTION OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA (A)
ADOPTING NEGATIVE DECLARATION IS-03-003; (B) GRANTING A
PRECISE PLAN (PCM-03-04); AND (e) APPROVING AN OWNER
PARTICIPATION AGREEMENT WITH MCMAHON DEVELOMENT FOR
THE DEVELOPMENT OF AN INDUSTRIAL PROJECT THAT INCLUDES
APPROXIMATELY 153,000 SQUARE FEET OF OFFICE,
MANUFACTURING, AND WAREHOUSE SPACE AT 3441 MAIN STREET
WITHIN THE SOUTHWEST REDEVELOPMENT PROJECT AREA
The motion carried 5-0.
Page 3 Council/RDA Minutes (-G. 11/26/2002
5. DIRECTOR'S REPORTS
There were none.
6. CHAIR/MA YOR REPORTS
There were none.
7. AGENCY/COUNCIL COMMENTS
There were none.
CLOSED SESSION
Closed Session was cancelled, and the following item was not discussed:
8. CONFERENCE WITH LEGAL COUNSEL REGARDING INITIATION OF
LITIGATION - Pursuant to Government Code Section 54956.9 (c)
One Case
ADJOURNMENT
At 7:30 p.m., Chair/Mayor Horton adjourned the meeting to an Adjourned Meeting of the
Redevelopment Agency on December 7, 2002, at the Chula Vista High School cafeteria, 820
Fourth Avenue, Chula Vista, and thence to an Adjourned Meeting of the Redevelopment Agency
on December 10, 2002, at 6:00p.m., immediately following the City Council meeting.
~~«~
Susan Bigelow, CMc. City Clerk
Page 4 Council/RDA Minutes ;-7 11/26/2002
PAGE 1, ITEM NO.: .;2..
MEETING DATE: 12/10/02
REDEVELOPMENT AGENCY AGENDA STATEMENT
ITEM TITLE: RESOLUTION APPROVING A PURCHASE AGREEMENT FOR
PROPERTY LOCATED AT 201 THIRD AVENUE FOR REDEVELOPMENT
PURPOSES AND APPROPRIATING $350,000 FROM THE AVAILABLE
FUND BALANCE IN THE MERGED PROJECT AREA FUND FOR
REPAYMENT OF OUTSTANDING ADVANCES FROM THE
BAYFRONT/TOWN CENTRE I PROJECT AREA FUND AND
APPROPRIATING $350,000 FROM UNANTICIPATED REVENUES IN
THE BAYFRONT/TOWN CENTRE I PROJECT AREA FUND FOR
PROPERTY ACQUISITION COSTS
SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR C_tt?
REVIEWED BY: EXECUTIVE DIRECTOR rot .)\"
I'
4/5THS VOTE: YES [DNO CJ
BACKGROUND
The subject parcel located at 201 Third Avenue has been vacant for a number of years and became
available for purchase this year. This key parcel is located at the northern gateway into the Town
Centre I Redevelopment Project Area and the Third Avenue shopping district. In order to help ensure
that a significant anchor proiect be developed at this critical intersection, the parcel is recommended
for purchase by the Agency to be included in a larger scale project envisioned for the site. The
ultimate development of the project is yet to be determined, but could include an urban mixed-use
project of at least two to three stories, a continuation of the "main street" ground floor retail look and
feel of Third Avenue, and architectural design inviting visitors into the Third Avenue district. This
action will approve the acquisition and provide funding for this purpose.
The Planning and Environmental Services Manager has determined that the proposed project
qualifies for a Class 32 infill development projects categorical exemption from the provisions of
CEQA as it has been determined not to have a significant effect on the environment.
RECOMMENDATION
Adopt the resolution approving a purchase agreement for property located at 201 Third Avenue
for redevelopment purposes and appropriating $350,000 from the available fund balance in the
Merged Project Area for the repayment of outstanding odvances from the BayfrontfT own Centre I
Proiect Area Fund and appropriating $350,000 from unanticipated revenues In the
BayfrontfT own Centre I Redevelopment Project Area Fund for property acquisition costs.
d-I
PAGE 2, ITEM NO.:
MEETING DATE: 12/10102
BOARDS/COMMISSIONS RECOMMENDATION
The Town Centre Project Areo Committee unanimously recommended approval of this oction at
their meeting of November 13, 2002.
DISCUSSION
Redevelopment Agency staff is recommending Agency acquisition of a vacant parcel located at
201 Third Avenue, formerly a Unocal gas station, and have obtained an offer from the owner,
Dan Floit, to sell the property for $350,000. The porcel is located at the northern gatewoy into
downtown's Third Avenue District at the southeast corner of "E" Street and Third Avenue. The
parcel has been appraised for the Agency at the offer price of $350,000. The site is comprised
of .23 acres and is located in the CB (Centro I Business) zone, within the Town Centre I
Redevelopment Project Area. Staff considers this porcel a key component of 0 planned "north
downtown anchor" project, which could potentially include retail, restaurants, infill market-rate
and affordable housing, public parking and office development. Other adjoining parcels will
need to be assembled, preferably by a development team well-versed in urban infill mixed-use
projects.
A pro-active acquisition of the parcel is recommended due to: 1) the potential for additional land
assemblage to accommodate the "north downtown anchor" project; and 2) to hold the parcel off
the market in order to avoid the potential of piecemeal development at this key intersection.
Under the current development regulations, it would be difficult for the Agency to deny a
development proposal for the site if it was consistent with the Town Centre Land Use Policy. As a
result, this prominent corner could be developed at a lower density and preclude a larger scale
integrated development that incorporates additional properties. A properly planned
redevelopment of the corner would require a minimum of two to three stories of building mass,
the retention of a "Main Street" look and feel to the ground-floor retail along Third Avenue, and
the greater mass of a larger scale project including additional parcels. For these reasons, stoff
strongly recommends approval of this acquisition. Additionally, Community Development staff is
beginning the process of drafting a new Specific Plan for downtown which will address building
form and function, as well as minimum floor plates and design requirements. With the adoption
of the Specific Plan, scheduled for late 2003, the Agency will have better control over these
critical urban development issues.
Due diligence includes complete assessment of any environmental issues associated with the
property. Upon approval of the purchase agreement by the Agency Board, the acquisition will be
placed in escrow in early December and due diligence should be completed by the end of
January 2003. Assuming stoff approves the condition of the property, the Agency would take
possession approximately February 1, 2003.
The Purchase Agreement presented is on the City usual form and has been approved by the City
Attorney. Terms and conditions include: 1) provisions for a $20,000 Good Faith Deposit and
liquidated damages; 2) purchase price and adjustments; 3) escrow provisions and conditions to
close; 4) title report provisions; and 5) a 45-day due diligence period.
c:J-d-.
PAGE 3, ITEM NO.:
MEETING DATE: 12110/02
FISCAL IMPACT
There is no fiscal impact on the General Fund. Agency tax increment from repayments to the
Bayfront/Town Centre I Project Area fund will be reduced by the purchase price of $350,000,
and will not be avoiloble for other redevelopment purposes in this project area.
AnACHMENTS
Site Location Map
j,\COMMDEV\STAFF.REP\ 11-26-02\201thirdpurchoseogendastatement.doc
02-3
RESOLUTION NO.
RESOLUTION APPROVING A PURCHASE AGREEMENT FOR PROPERTY LOCATED AT
201 THIRD AVENUE FOR REDEVELOPMENT PURPOSES AND APPROPRIATING
$350,000 FROM THE AVAILABLE FUND BALANCE IN THE MERGED PROJECT AREA
FUND FOR REPAYMENT CF OUTSTANDING ADVANCES FROM THE
BAYFRONTITOWN CENTRE I PROJECT AREA FUND AND APPROPRIATING $350,000
FROM UNANTICIPATED REVENUES IN THE BAYFRONTITOWN CENTRE I PROJECT
AREA FUND FOR PROPERTY ACQUISITION COSTS
WHEREAS, the redevelopment of the Town Centre I Redevelopment Project Area is well underway
with current projects in construction, including the Gateway Chula Vista project and the Police Headquarters
project, as well as an active Storefront Renovation Program and a new Property and Business Improvement
District; and
WHEREAS, the Agency desires to improve the north gateway into Downtown Chula Vista located at
Third Avenue and E Street by developing one or more anchor projects that could include mixed-use retail,
residential and office components with an urban shape and form and architectural excellence; and
WHEREAS, certain property with the north gateway located at 201 Third Avenue ("Property") is
available for purchase and could be an integral part of a major north Downtown anchor redevelopment
project that would provide a significant entry statement to the Third Avenue shopping corridor while
providing much needed revitalization to a section of downtown that has not experienced significant
investment during past decades; and
WHEREAS, the Planning and Environmental Services Manager has determined that the proposed
project qualifies for a Class 32 infill development projects categorical exemption from the provisions of
CEQA as it has been determined not to have a significant effect on the environment.
NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of Chula Vista does
hereby:
1. Find and determine that the Agency's acquisition of the Property is consistent with and
implements the Town Centre I Redevelopment Plan and will assist in the elimination of blight.
2. Approve a Purchase Agreement for the Property in the form presented with such minor
modifications as may be approved or required by the Agency Attorney.
3. Appropriate $350,000 from the available fund balance in the Merged Project Area Fund for
repayment of advances from the BayfrontITown Centre I Redevelopment Project Area Fund, and
appropriate $350,000 from unanticipated revenues in the BayfrontITown Centre I Project Area Fund for
property acquisition costs.
4. Authorize and direct the Chair to execute the Agreement and staff to take all reasonable and
necessary measures to implement same.
PRESENTED BY APPROVED AS TO FORM BY
Chris~ SJ~ - -
Director of Community Development
J:\COMMDEVIRESOS\20 1 thirdpurchasereso.doc
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DRAFT
PURCHASE AND SALE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS
SELLER: DAN FLOIT, FLOIT PROPERTIES, INC., a California
Corporation
BUYER: REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, a
municipal corporation
ESCROW NO:
December 2, 2002
J,ICOMMDEVIE,te,ITCllunocal 'itelpu,cha,e ag'eement.doc
1 ~-G.
DRAFT
PURCHASE AND SALE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS
This PURCHASE AND SALE AGREEMENT AND JOINT ESCROW
INSTRUCTIONS ("Agreement"), is entered into effective as of
December 10, 2003 by and between DAN FLOIT, FLOIT PROPERTIES,
INC., a California corporation ("Seller"), and the REDEVELOMENT
AGENCY OF THE CITY OF CHULA VISTA, a municipal corporation,
("Buyer").
NOW, THEREFORE, in consideration of the mutual covenants
set forth herein, and for other valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Seller
and Buyer agree as follows:
ARTICLE 1
AGREEMENT OF PURCHASE AND SALE
1.1 Description of Property. Seller owns certain real
property ("Property") located 201 Third Avenue in the City of
Chula Vista, County of San Diego, California, comprised of one
legal parcel as follows: Assessor's Parcel No. 568-071-0100. The
Property is improved and is comprised of approximately .23 gross
acres. The Property is more particularly described on Exhibit "A"
attached hereto. The Property shall not include any equipment, or
other personal property located thereon, unless the parties
otherwise mutually agree. Seller shall remove from the Property
any personal property not to be acquired by Buyer at its sole cost
prior to Close of Escrow.
1. 2 Offer to Purchase. Seller's execution of this Agreement
constitutes an irrevocable offer to sell the Property on the terms
and conditions stated herein. Such offer may be revoked by Seller
by written notice to Buyer in the event that Buyer fails to accept
Seller's offer by delivering an executed copy of this Agreement to
Escrow (as provided herein) by December 16, 2002.
1.3 Purchase and Sale. Buyer's execution of this Agreement
within the time period specified in Section 1.2 shall create a
binding agreement between the parties hereto, effective as of the
date first written above whereby Seller agrees to sell the
Property to Buyer and Buyer agrees to purchase the Property from
Seller, on the terms and conditions stated herein.
1.4 Purchase in Lieu of Condemnation. Buyer requires the
Property for the purpose of redevelopment, a purpose for which
Buyer may exercise the power of eminent domain. Seller is
compelled to sell and Buyer is compelled to acquire the Property
subject to the terms of this Agreement. Both Seller and Buyer
recognize the expense, time, effort and risk to both parties in
2 .;1-'7
DRAFT
resolving a dispute over compensation for the Property by eminent
domain litigation; and the compensation set forth herein for the
Property is in compromise and settlement in lieu of such
litigation.
1. 5 Depos i t.
(a) Good Faith Deposit. Upon Buyer's approval and
execution of this Agreement, Buyer shall deposit Twenty Thousand
Dollars ($20,000) into Escrow (defined below) as a good faith
deposit ("Deposit"). Such deposit shall be made pursuant to the
terms of Section 3.3 hereof, below. If Buyer proceeds to acquire
the Property, Buyer's Deposit, plus any interest earned thereon,
shall be applied towards the Purchase Price at Close of Escrow.
Buyer's Deposit payment shall be in the form of either a direct
wire transfer to Escrow, or a cashier's or certified check drawn
on a California bank account, payable to Escrow Agent. Buyer's
failure to make the Deposit when required shall be a material
default hereunder, and Seller shall have the right to terminate
this Agreement. Escrow Agent shall invest the Deposit amounts in
a federally-insured, interest-bearing account approved by Buyer,
and all interest earned thereon shall be credited to Buyer. The
Deposit shall be returned to Buyer if Buyer elects to terminate
this Agreement and the Escrow for nonsatisfaction of any condition
pursuant to Section 5.2 or as a result of Seller's default
hereunder.
(b) LIQUIDATED DAMAGES. IF BUYER FAILS TO COMPLETE THE
PURCHASE OF THE PROPERTY AND SUCH FAILURE CONSTITUTES A DEFAULT
HEREUNDER, AND IS NOT THE RESULT OF NONSATISFACTION OF CONDITIONS
OR A DEFAULT BY SELLER, THE PARTIES ACKNOWLEDGE AND AGREE THAT (1)
SELLER'S DAMAGES WILL BE EXTREMELY DIFFICULT AND IMPRACTICAL TO
ASCERTAIN, AND (2) THE AMOUNT OF TEN THOUSAND DOLLARS ($10,000)
REPRESENTS A REASONABLE ESTIMATE OF SUCH DAMAGES, CONSIDERING ALL
THE CIRCUMSTANCES EXISTING ON THE DATE OF EXECUTION OF THIS
AGREEMENT. THEREFORE, THE PARTIES ACKNOWLEDGE AND AGREE THAT IN
THE EVENT OF SUCH FAILURE TO PERFORM BY BUYER, SELLER SHALL HAVE
THE RIGHT TO RETAIN $10,000 OF THE DEPOSIT AS LIQUIDATED DAMAGES
PURSUANT TO CALIFORNIA CIVIL CODE SECTION 1671. SUCH LIQUIDATED
DAMAGES SHALL CONSTITUTE SELLER'S SOLE AND EXCLUSIVE REMEDY
AGAINST BUYER, ALL OTHER REMEDIES BEING HEREBY EXPRESSLY WAIVED BY
SELLER. ANY REMAINING AMOUNTS OF THE DEPOSIT SHALL BE RETURNED TO
BUYER. SELLER WAIVES ALL RIGHTS SELLER MAY OTHERWISE HAVE
PURSUANT TO CALIFORNIA CIVIL CODE SECTION 3389 OR OTHERWISE TO
SPECIFICALLY ENFORCE THIS AGREEMENT. BY SIGNING THEIR Initials
BELOW, EACH PARTY CONFIRMS ITS CONSENT TO AND AGREEMENT WITH THE
PROVISIONS OF THIS PARAGRAPH:
Seller's Buyer's
Initials Initials
3 .;2-¥'
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ARTICLE 2
PURCHASE PRICE
2.1 Purchase Price. The total purchase price ("Purchase
Price") which Buyer agrees to pay and Seller agrees to accept for
the Property is the sum of THREE HUNDRED FIFTY THOUSAND DOLLARS
($350,000) .
(a) The Deposit of $20,000 shall be delivered to Escrow
Agent (defined below) as provided in Section 3.3;
(b) The balance of the Purchase Price shall be delivered
to Escrow Agent in cash, in the form of a cashier's or certified
check or wired funds prior to the Close of Escrow.
ARTICLE 3
ESCROW
3.1 Escrow Aqent. First American Title Insurance Company,
located at 411 Ivy Street, San Diego, Ca. 92101, ("Escrow
Agent") is designated, authorized and instructed to act as Escrow
Agent pursuant to the terms of this Agreement unless otherwise
mutually agreed by the parties. Escrow Agent shall acknowledge
the Opening of Escrow and its agreement to act as the Escrow Agent
hereunder by: (a) executing the Consent of Escrow Agent attached
hereto; and (b) promptly delivering a copy of the executed Consent
to Seller and Buyer.
3.2 Escrow Instructions. This Agreement shall constitute
initial escrow instructions to Escrow Agent. Escrow. Agent's
general conditions shall be attached hereto as Exhibit "B" and
made a part hereof, to the extent they are consistent with the
provisions of this Agreement. The parties shall execute any
additional escrow instructions reasonably required by Escrow Agent
to consummate the transaction provided for herein; provided,
however, such additional escrow instructions shall not modify the
provisions of this Agreement, unless such instructions (a) state
the modification in full, and (b) are signed by both parties.
3 . 3 OpeninG of Escrow. Upon Buyer's approval and execution
of this Agreement, and by no later than 5:00 p.m. on December 16,
2002, Buyer shall deliver a fully executed copy of this Agreement
and the Deposit to Escrow Agent. Opening of Escrow shall be the
date Escrow Agent executes the Consent described in Section 3.1.
3.4 Close of Escrow. "Close of Escrow" or "Closing" means
the date Escrow Agent records the Grant Deed in favor of Buyer and
delivers the Purchase Price to Seller. If all conditions to
Closing are satisfied pursuant to the terms of this Agreement,
Escrow shall close on the day falling fifteen (15) days after the
4,;2-9
DRAFT
expiration of the Contingency Period defined in section 5.1
hereof, below; provided, however, if all conditions are satisfied
and all funds and documents required hereunder are deposited in
Escrow at an earlier date, Escrow Agent shall close the Escrow on
such earlier date. The Closing Date may not be extended except by
a written escrow instruction signed by Buyer and Seller. If the
Escrow does not close on or before the Closing Date for any reason
other than non-satisfaction of Buyer's conditions to Close set
forth in Section 5.2., or a default by Seller, and if the Closing
Date has not been validly extended as provided hereunder, then
Buyer shall be in material default hereunder and Seller shall have
the unilateral right to terminate this Agreement and the Escrow by
delivering written notice to Escrow Agent with a copy to the other
party), in which event Seller shall have no further obligation
hereunder.
3.5 Deliveries to Escrow. Prior to the Closing Date
specified in Section 3.4, each party shall timely deliver to
Escrow all funds and documents required of such party in order to
complete the Closing under the terms of this Agreement, including,
but not limited to, prorated amounts and other payments required
under Section 3.7.
3.6 Completion of Documents. Escrow Agent is authorized: to
insert the Closing Date and otherwise complete the documents
deposited in Escrow, where appropriate and consistent with this
Agreement.
3.7 Prorations, Escrow Fees and Costs.
(a) Prorations. The following items shall be prorated in
Escrow, as of the date of Close of Escrow: real estate taxes,
based on the most recent information available in the office of
the taxing entity. All prorations shall be made on the basis of a
3D-day month and a 360-day year, unless the parties otherwise
agree in writing. If Buyer receives, after the Closing, any
supplemental bill for real estate taxes or assessments which
relates, in whole or in part, to the period prior to the Closing,
such supplemental bill shall be allocated between Seller and Buyer
as of the Closing Date, and Seller shall pay the amount due to
Buyer within thirty (30) days after Seller's receipt of a
statement and request for payment.
(b) Seller's Payments. Seller will pay: (1) the County
Documentary Transfer Tax, in the amount Escrow Agent determines to
be required by law; (2) one-half of the Escrow Agent's fees; (3)
the cost of the Title Policy described in Section 4.2; and (4) all
other customary "Seller" costs, excluding Buyer's payments
provided below.
(c) Buyer's Payments. Buyer will pay: (1) any and all
non-customary Escrow charges; (2) one-half of the Escrow Agency's
fees; (3) the cost of any ALTA Title Policy or title endorsements;
(4) all financing costs, if any; and (5) all other customary
5 c2-( c)
DRAFT
"Buyer" costs, except for Seller's payments provided above.
(d) Default. Notwithstanding the foregoing, in the event
of a default by Buyer or Seller hereunder, all cancellation and
other escrow charges shall be paid by the defaulting party.
3.8 Existinq Encumbrances. Escrow Agent is authorized to
secure beneficiary demands and requests for reconveyance for those
monetary liens which are not Permitted Exceptions pursuant to
Section 4.2 and the Property shall be reconveyed from each of the
foregoing at Close of Escrow.
3.9 Distribution of Funds and Documents. At the Close of
Escrow, Escrow Agent shall do each of the following:
(a) Payment of Encumbrances. Pay the amount of those
monetary liens which are not Permitted Exceptions to the obligees
thereof, in accordance with the demands approved by Seller,
utilizing funds to which Seller shall be entitled upon Close of
Escrow and funds (if any) deposited in Escrow by Seller.
(b) Recordation of Documents. Submit to the County
Recorder of San Diego County the Grant Deed for the Property and
each other document to be recorded under the terms of this
Agreement or by general usage, and, after recordation, cause the
County Recorder to mail the Grant Deed to Buyer and each other
such document to the grantee, beneficiary or person acquiring
rights thereunder or for whose benefit said document was recorded.
(c) Non-Recorded Documents. Deliver by United States
mail (or hold for personal pickup, if requested): (1) the Title
Policy to Buyer; each other non-recorded document received
hereunder to the payee or person acquiring rights thereunder or
for whose benefit said document was acquired.
(d) Distribution of Funds. Deliver by United States mail
(or comply with other unilateral instructions given by the
applicable party):
(1) To Seller, the Purchase Price, adjusted for
prorations, charges and other credits and debits provided for
herein.
(2) To Buyer, any excess funds delivered to Escrow
Agent by Buyer.
6 ó2 -( (
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ARTICLE 4
TITLE MATTERS
4.1 Preliminary Title Report.
(a) Deliverv to Buyer. As soon as possible, but by no
later than fifteen (15) days, after Opening of Escrow, Escrow
Agent shall provide to Buyer, at Seller's expense, a preliminary
ti tle report ("PR") issued by First American Title Company, or
such other company designated by Buyer and reasonably approved by
Seller ("Title Insurer") reflecting the status of title to the
Property. The PR shall include a plat map showing the location of
all easements, and legible copies of all items shown as exceptions
thereon. The PR will be deemed received by Buyer on the date of
personal delivery or three (3) days after mailing by Escrow Agent.
(b) Time to Ob-ject. Buyer shall have fifteen (15) days
after the date of receipt of the PR to notify Escrow Agent (with a
copy to Seller), in writing, of its approval or disapproval of the
legal description for the Property or any matters indicated as
exceptions in the PRo Buyer shall not object unreasonably.
(c) No Ob-jection. If Buyer's written disapproval is not
received by Escrow Agent within said time period, Buyer shall be
deemed to have approved the PR; provided, however, Buyer shall not
be obligated to affirmatively object to monetary exceptions to
title, all of which must be removed as a condition to Close of
Escrow unless Buyer otherwise expressly agrees.
(d) Time to Eliminate Exceptions. If Buyer objects to
one or more exceptions indicated in the PR, Seller may cure such
objection by delivering to Escrow Agent (with a copy to Buyer),
within ten (10) days after Seller's receipt of Buyer's objection,
Seller's written agreement to eliminate such exception(s) by the
Closing Date.
(e) Riqht to Cancel or Perform. If Seller does not agree
to cure each exception to which Buyer has objected, Buyer shall
elect one of the following, by delivering written notice to Escrow
Agent (with a copy to Seller) within five (5) days after receipt
of notice of Seller's election or expiration of the 10-day period
described in (d) above (whichever occurs first): (1) to waive its
objections, take title subject to such exceptions, and proceed
with Close of Escrow; or (2) to terminate this Agreement and the
Escrow, in which event neither party shall have any further
obligation hereunder and Buyer shall be entitled to recover its
Deposit.
4.2 Title Insurance. As of Close of Escrow, Title Insurer
shall issue, or be conunitted to issue, at Seller's sole cost, a
standard form CLTA Owner's Form B Policy of Title Insurance
("Title Policy") insuring Buyer's title to the Property in the
amount of the Purchase Price, subject only to the following
7 .;2-/2-
DRAFT
permitted exceptions ("Permitted Exceptions"): (a) current,
non-delinquent real estate taxes and assessments; (b) the lien of
supplemental taxes, if any, assessed pursuant to Chapter 3.5 of
the California Revenue and Taxation Code; (c) the matters set
forth in the PR and approved by Buyer pursuant to Section 4.1 (c)
or (e); (d) any other matters approved in writing by Buyer; and
(e) matters excepted or excluded from coverage by the printed
terms of the Title Policy's standard form. City may, at City's
sole option and expense, obtain an ALTA extended coverage form of
title insurance and/or title policy endorsements.
4.3 Grant Deed. Prior to Close of Escrow, Seller shall
deposit in Escrow a Grant Deed, duly executed and acknowledged in
recordable form, conveying all Seller's right title and interest
in and to the Property to Buyer subject only to all matters of
record and the Permitted Exceptions.
ARTICLE 5
CONDITIONS TO CLOSE OF ESCROW
5.1 ContinGency Period. As used herein, the "Contingency
Period" means a period commencing with the Opening of Escrow and
ending on the day falling forty-five (45) days thereafter;
provided, however, if Seller fails to deliver the items described
in Section 5.2(b) within the IS-day period described therein, the
Contingency Period shall be extended on a per diem basis, for each
day of delay until all of the items are delivered to Buyer. Buyer
shall have the unilateral right to extend the Contingency Period
for an additional fifteen (15) days by written notice to Escrow
Agent (with a copy to Seller) delivered prior to 5:00 p.m. on the
date for the initial expiration of the Contingency Period. During
the Contingency Period, Buyer shall be permitted to conduct its
due diligence with respect to the Property pursuant to the terms
set forth in Section 7.1 hereof, below.
5.2 Buyer's Conditions to Close of Escrow. Close of Escrow
shall be subject to satisfaction of each of the following
conditions precedent, which are for the benefit of Buyer, prior to
expiration of the Contingency Period:
(a) Title Matters. Buyer's approval of the PR, or
Seller's election to cure each exception disapproved by Buyer, or
Buyer's waiver of any remaining disapproved exception(s) , pursuant
to Section 4.1, and Title Insurer's commitment, upon Close of
Escrow, to issue the Title Policy in favor of Buyer provided in
Section 4.2 hereof.
(b) Seller's Deliveries. Seller's delivery to Buyer,
within fifteen (15) business days after Opening of Escrow, of
complete, legible copies of the following items relating to the
Property: any and all reports, studies, investigations, surveys,
agreements, permits or other Property related documents within
8 .;¿ -13
DRAFT
Seller's possession or reasonably available thereto including, but
not limited to, any reports, documents, or records pertaining to
the existence and/or removal of any underground storage tanks, and
if applicable, remediation of any related soil and/or groundwater
contamination. Seller makes no representation or warranties as to
the accuracy of any information contained in reports prepared by
third parties.
(c) Buyer's Approval. Buyer's determination, in Buyer's
sole discretion, of its satisfaction with (a) the physical
condition of the Property; (b) the suitability of the Property for
redevelopment; (c) the status of approval of any and all required
development entitlements, including obtaining the necessary
environmental clearances pursuant to the California Environmental
Quality Act (CEQA); and (d) the items delivered by Seller pursuant
to Section 5.2 (b). In order to conduct its analysis of the
Property, Buyer shall have the right, after Opening of Escrow, to
enter the Property, pursuant to Section 7.1.
(d) Required Tax Documents. Seller's delivery to Escrow
of completed state and federal non-foreign affidavit and/or
disclosure documents including, without limitation, those
affidavi ts and/or certificates required pursuant to Internal
Revenue Code Section 1445 and California Form 590 (Withholding
Exemption Certificate).
5.3 Satisfaction. Waiver of Conditions. Buyer's approval,
wherever required to satisfy a condition, shall be evidenced by
written notice delivered to Escrow Agent (with a copy to Seller).
If Buyer's written approval is not received by Escrow Agent prior
to the expiration of the Contingency Period, the matter shall be
deemed approved.
5.4 Seller's Conditions to Close of Escrow.
(a) Buyer's deposit of the Purchase Price for the
Property plus any of Buyer's closing costs required hereunder.
5.5 Failure of Conditions. If any of the foregoing
conditions is neither satisfied nor waived by the benefited party
within the specified time limit, such party may unilaterally
terminate this Agreement and the Escrow by giving written notice
of termination to Escrow Agent (with a copy to the other party).
In the event of such termination, Buyer's Deposit shall be
immediately returned, and neither party shall have any further
obligation hereunder.
5.6 Diliqence; Cooperation. Each party agrees to exercise
due diligence in satisfying each and every condition to Close of
Escrow for which such party is responsible. Each party agrees to
cooperate with the other party in satisfying those conditions to
Close of Escrow for which such other party is primarily
responsible.
9 r::2 - ('-f
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ARTICLE 6
REPRESENTATIONS AND WARRANTIES
6.1 Buyer's Representations and Warranties. Buyer agrees,
represents and warrants, as of the date of its execution of this
Agreement and as of Close of Escrow, as follows:
(a) Authority. Buyer has full legal right, power and
authority to execute and fully perform its obligations under this
Agreement, without the need for any further action; and the
persons executing this Agreement and other documents required
hereunder on behalf of Buyer are the duly designated agents of
Buyer and are authorized to do so.
(b) Investiqation of Property. Buyer will make an
independent investigation, to the extent Buyer deems necessary or
appropriate, concerning the physical condition (including the
existence of hazardous materials), value, development, use,
marketability, feasibility and sui tabili ty of the Property,
including (but not limited to) land use, zoning and other
governmental restrictions and requirements. Except for Seller's
express representations and warranties set forth below, Buyer is
acquiring the Property "AS IS", in its present state and condition
solely in reliance upon Buyer's own investigation.
6.2 Seller's Representations and Warranties. Each party
comprising Seller, on his or her own behalf, agrees, represents
and warrants, as of the date of execution of this Agreement and as
of Close of Escrow, as follows:
(a) Authority; No Violations. Seller is the owner of the
Property and has full legal right, power and authority to execute
and fully perform its obligations under this Agreement and to
convey the Property to Buyer, and the persons executing this
Agreement and other documents required hereunder on behalf of
Seller are the duly designated agents of Seller and are authorized
to do so without the need for any further action on the part of
Seller's Board of Directors or any other authority. Seller's
performance of its obligations hereunder will not violate any
existing laws, regulations or agreements to which Seller or the
Property is subject.
(b) Non-Foreiqn Affidavit. Seller represents and
warrants to Buyer that it is not a foreign person and is a United
States person as defined in Section 7701 (1) (30) of the Internal
Revenue Code, as amended ("Code").
10 .;2 -IÇ
DRAFT
(c) Condition of Property. To the best of Seller's
knowledge (1) there are no hazardous materials on the Property
which violate any existing federal, state or local hazardous
materials laws; (2) there is no physical condition of the Property
which would prevent the reasonable development and Buyer's use of
the Property for redevelopment; (3) there are no existing or
pending or threatened lawsuits against Seller involving the
Property; (4) there are no existing leases or other agreements
with respect to the Property that run with the land.
6.3 Real Estate Commissions. Each party represents and
warrants to the other party that except for Seller's
representative, to which the payment of any commission or finders
fee shall be Seller's sole responsibility, no brokers or finders
have been employed or are entitled to a commission or compensation
in connection with this transaction. Each party agrees to
indemnify, protect, hold harmless and defend the other party from
and against any obligation or liability to pay any such commission
or compensation related to this transaction arising from the act
or agreement of the indemnifying party.
6.4 Survival of Warranties. The representations and
warranties given by Buyer and Seller in this Article 6, and all
obligations to be performed under the terms of this Agreement
after Close of Escrow, shall survive the Close of Escrow and
delivery of the Grant Deed to Buyer.
ARTICLE 7
ADDITIONAL OBLIGATIONS
7.1 Access to Property. Between the date of Opening of
Escrow and the Close or earlier termination of Escrow, Seller
shall allow Buyer and its agents free, reasonable access to the
Property, upon reasonable notice to Seller, for the purpose of
inspecting, surveying and testing the same. Seller acknowledges
and agrees that Buyer's due diligence may include the conduct of
soils tests and soils borings as part of a Phase I or Phase II
environmental analysis. Buyer shall indemnify, hold harmless and
defend Seller and the Property from and against any and all liens,
claims, liability, loss, damages, costs, expenses, suits or
judgments for labor performed or materials furnished to or for
Buyer, or for injuries to person or property damage, arising out
of any accident or occurrence in any way connected with entry
upon, testing or inspection of the Property by Buyer or its agents
pursuant to this section. Buyer's due diligence during the
Contingency Period shall be at Buyer's sole cost and expense.
7.2 Governmental Permits and Processinq. During the Escrow
period, Buyer shall have the right to file applications for and to
process, at Buyer's expense, applications for governmental permits
and approvals for zoning, land use, subdivision, improvement,
11
~-/G.
DRAFT
development and construction relating to the Property and Buyer's
intended use. Buyer agrees to diligently pursue any and all such
necessary approvals in order to permit the Close to occur prior to
the Closing Date. Seller shall execute any applications or other
documents referenced by applicable governmental authorities to
authorize Buyer to process such permits and approvals, and shall
cooperate reasonably with Buyer in connection therewith.
7.3 Condemnation or Damaqe. If, prior to Close of Escrow, an
action is commenced for the condemnation of the Property or any
material portion thereof or interest therein, or the Property is
materially damaged by fire, earthquake or other cause, so as, in
either event, to render the Property unsuitable for Buyer's use,
then Buyer shall have the right to terminate this Agreement by
delivering written notice to Seller (with a copy to Escrow Agent)
within ten (10) days after Buyer receives notice of the
condemnation or damage. If Buyer terminates this Agreement within
such 10-day period, then the Escrow shall be cancelled, neither
Buyer nor Seller shall have any further obligation under this
Agreement, and Buyer's Deposit shall be returned. If Buyer fails
to deliver written notice of termination within said 10-day
period, Buyer shall be deemed to have waived and Buyer shall
proceed to consummate the purchase pursuant to this Agreement.
Buyer shall have no other remedies against Seller as a result of
such condemnation or destruction of the Property except as set
forth in this Section.
7.4 Possession. Possession of the Property shall be
delivered by Seller to Buyer on the Closing Date after recordation
of the Grant Deed. Except as expressly provided herein, all risk
of loss and damage to the Property from whatever source shall be
the sole responsibility of Buyer after Close of Escrow.
7.5 Indemnities. Buyer shall indemnify, protect, defend and
hold Seller, its officers, employees, representatives and agents,
harmless from and against any and all claims, losses, damages,
costs and expenses (including attorneys fees and court costs)
arising out of any accident or occurrence after Close of Escrow
(collectively, "Losses") excluding those Losses resulting from
Seller's negligence or willful misconduct or the invalidity of
Seller's express representations and warranties hereunder. Seller
shall indemnify, protect, defend and hold Buyer, its officers,
employees, representatives and agents, harmless from and against
any and all claims, losses, damages, costs and expenses (including
attorneys fees and court costs) arising out of the existence or
release of hazardous materials on the Property as of Close of
Escrow and any accident or occurrence prior to Close of Escrow
(collectively, "Losses") excluding those Losses resulting from
Buyer's negligence or willful misconduct.
12 ~- 17
DRAFT
ARTICLE 8
GENERAL PROVISIONS
8.1 Assiqnment. Buyer may not assign this Agreement or any
of its rights hereunder without the prior written consent of the
Seller, which consent shall not be unreasonably withheld;
provided, however, Buyer may freely assign its rights hereunder to
the Redevelopment Agency of the City of Chula Vista.
8.2 Attorneys' Fees. If either party commences legal
proceedings for any relief against the other party arising out of
this Agreement, the losing party shall pay the prevailing party's
legal costs and expenses, including, but not limited to,
reasonable attorneys' fees and costs as determined by the court.
The prevailing party shall be that party receiving substantially
the relief sought in the proceeding, whether brought to final
judgment or not.
8.3 Computation of Time Periods. All periods of time
referred to in this Agreement shall include all Saturdays, Sundays
and state or national holidays, unless the period of time
specifies business days, provided that if the date or last date to
perform any act or give any notice or approval shall fall on a
Saturday, Sunday or state or national holiday, such act or notice
may be timely performed or given on the next succeeding day which
is not a Saturday, Sunday or state or national holiday.
8.4 Counterparts. This Agreement or any escrow instructions
pursuant to this Agreement may be executed in multiple copies,
each of which shall be deemed an original, but all of which shall
constitute one Agreement after each party has signed such a
counterpart.
8.5 Entire Aqreement. This Agreement, together with all
exhibits attached hereto and other agreements expressly referred
to herein, constitutes the entire agreement between the parties
with respect to the purchase and sale of the Property. All prior
or contemporaneous agreements, understandings, representations,
warranties and statements, oral or written, are superseded.
8. 6 Exhibits. All exhibits referred to herein are attached
hereto and incorporated herein by reference.
8.7 Further Assurances. The parties agree to perform such
further acts and to execute and deliver such additional documents
and instruments as may be reasonably required in order to carry
out the provisions of this Agreement and the intentions of the
parties.
8.8 Gender, Number. As used herein, the singular shall
include the plural and the masculine shall include the feminine,
wherever the context so requires.
13 .;L--r~
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8. 9 Governinq Law. This Agreement shall be governed,
interpreted, construed and enforced in accordance with the laws of
the State of California.
8.10 Headinqs. The captions and paragraph headings used in
this Agreement are inserted for convenience of reference only and
are not intended to define, limit or affect the construction or
interpretation of any term or provision hereof.
8.11 Modification, Waiver. No modification, waiver,
amendment or discharge of this Agreement shall be valid unless the
same is in writing and signed by both Buyer and Seller. The
escrow instructions shall be considered a part of this Agreement,
and no provision in said escrow instructions shall supersede or
contradict the provisions of this Agreement, unless the parties
agree in writing to such change.
8.12 Notice. Notice to either party shall be in writing and
either personally delivered or sent by certified mail, postage
prepaid, return receipt requested, addressed to the party to be
notified at the address specified herein. Any such notice shall
be deemed received on the date of personal delivery to the party
(or such party's authorized representative) or three (3) business
days after deposit in the U.S. Mail, as the case may be.
Seller's Address for Notice: Buyer's Address for Notice:
Mr. Dan Floit City of Chula Vista
Suite 145 276 Fourth Avenue
1545 Hotel Circle South Chula Vista, CA. 91910
San Diego, CA 92108 Attn: Community Development
Director
Copy to: City Attorney
Either party may change its address for notice by delivering
written notice to the other party as provided herein.
8.13 Severability. If any term, provision, covenant or
condition of this Agreement is held to be invalid, void or
otherwise unenforceable, to any extent, by any court of competent
jurisdiction, the remainder of this Agreement shall not be
affected thereby, and each term, provision, covenant or condition
of this Agreement shall be valid and enforceable to the fullest
extent permitted by law.
8.14 Successors. All terms of this Agreement shall be
binding upon, inure to the benefit of, and be enforceable by the
parties hereto and their respective heirs, legal representatives,
successors, and assigns.
8.15 Time. Time is of the essence of each provision of this
Agreement, including without limitation all time deadlines for
satisfying conditions and Close of Escrow.
14 .;2.-'9
DRAFT
SIGNATURE PAGE TO PURCHASE AND SALE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS
IN WITNESS WHEREOF, the parties have entered into this
Agreement as of the date first written above.
BUYER: REDEVELOPMENT AGENCY SELLER: DAN FLOIT, FLOIT
OF THE CITY OF CHULA PROPERTIES, INC., a
VISTA, a municipal California
corporation corporation
STEVE PADILLA, MAYOR
ATTEST: [PRINT NAME AND TITLE]
SUSAN BIGELOW, CITY CLERK
APPROVED AS TO FORM BY:
JOHN M. KAHENY
CITY ATTORNEY
15 .;2_.2..0
DRAFT
CONSENT OF ESCROW AGENT
SELLER: DAN FLOIT
BUYER: CITY OF CHULA VISTA
ESCROW NO.:
The undersigned ("Escrow Agent") hereby: (1) acknowledges
delivery of a Purchase and Sale Agreement and Joint Escrow
Instructions ("Agreement") dated , 2002 between
the Seller and Buyer identified above, and delivery of the initial
$20,000 Deposit described in Section 1.5 of the Agreement; and (2)
agrees to act as the Escrow Agent in accordance with the
provisions of the Agreement.
This Consent is executed on , 2002
which shall constitute the "Opening of Escrow" pursuant to Section
3.3 of the Agreement.
ESCROW AGENT:
First American Title Insurance
Company
By:
Escrow Officer
16
c:2 - ó2.. I
DRAFT
LIST OF EXHIBITS
A Legal Description of Property
B General Escrow Conditions
17 ¿;) - :2...;7-
EXHIBIT "A"
LEGAL DESCRIPTION OF PROPERTY
[To be provided by
First American Title Company]
ó2-.;¿3
A-I
EXHIBIT "B"
GENERAL ESCROW INSTRUCTIONS
[To be provided by
First American Title Company]
ó2.-dJ..<{
B-1
PAGE 1, ITEM NO.: .3
MEETING DATE: 12/10/02
JOINT REDEVELOPMENT AGENCY /CITYCOUNCIL AGENDA
STATEMENT
ITEM TITLE: PUBLIC HEARING: CONSIDERATION OF COASTAL DEVELOPMENT
PERMIT NUMBER 74 FOR HIGHWAY WORK TO BE DONE BY
CALTRANS ALONG INTERSTATE 5 & STATE ROUTE 54 INVOLVING
INSTALLATION OF PLANTING MATERIALS AND IRRIGATION
SYSTEMS, DECORATIVE CONCRETE AND ROCK TREATMENTS, AND
MAINTENANCE VEHICLE PULLOUTS WITH GORE PAVING
JOINT RESOLUTION OF THE CITY COUNCIL AND REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING THE
ISSUANCE OF COASTAL DEVELOPMENT PERMIT NO. 74 FOR
HIGHWAY WORK TO BE DONE BY CALTRANS ALONG INTERSTATE
5 (1-5) & SR-54 INVOLVING INSTALLATION OF MAINTENANCE
VEHICLE PULLOUTS WITH GORE PAVING
SUBMlnED BY: COMMUNITY DEVELOPMENT DIRECTOR L.~~ ~/:>
REVIEWED BY: CITY MANAGERG,~ ,,\"
,..
4/5THS VOTE: YESD NO0
BACKGROUND
The California State Deportment of Transportation (CALTRANS) is proposing to renovate existing
plant materials and irrigation systems and to provide maintenance vehicle pullouts and gore
povings along Interstate 5 (1-5) between E Street in Chula Vista and 24th Street in Notional City
and along State Route 54 (SR-54) between 1-5 and Interstate 805 (Attachment 1). Portions of the
project are located within the City of Chula Vista Coastal Zone within the City's coastal permit
jurisdiction.
The California Coastal Commission has determined that instollation of the vehicle pullouts and
gore pavings requires a coastal development permit. Landscaping improvements within an
existing developed right-of-way area do not require 0 coastal development permit unless the
work results in an environmental impact. Caltrans determined the project to be categorically
exempt from CEQA citing Class 1 (Existing Facilities) and also determined the project be
categorically excluded under NEPA (Attachment 2). City staff then reviewed the project as
required for opproval of 0 coastal development permit per the adopted Local Coastal Plan for the
vehicle pullouts and gore pavings. The project is expected to begin construction in Januory 2004.
..3 -I
PAGE 2, ITEM NO.:
MEETING DATE: 12/10/02
RECOMMENDATION
That the Agency/Council: (1) hold the public heoring and consider public testimony, and (2)
adopt the resolution issuing Coastal Development Permit No.7 4 to construct maintenance
vehicle pullouts with gore paving along 1-5 and SR-54.
BOARDS/COMMISSIONS RECOMMENDATION
Not Applicable
DISCUSSION
The project area consists of highly visible londscape areos along the Sweetwater River corridor where
plant materiols have not grown well in the post due to poor soil conditions (Attochment 3). The
landscape plan proposes to improve the soil condition and replace the plants with similar plant
species. Areas designated as "Highway Artscape" will use inert decorative rock, pavers, sculpture
and other decorative treatments to aesthetically improve the site. Random groups of palm trees will
also be located within the "Artscape" areas. Typical wall icons as proposed by Caltrans is shown in
Attachment 4. Caltrans may incorporate decorotive modifications prior to construction, which is
anticipated to begin in January 2004. The project also includes the installation of maintenance
vehicle pullouts (MVP's) and gore paving. Gores are narrow, tapered areas between main lanes of
traffic and the on and off-ramps. This is done to improve the safety condition of maintenance
personnel exposed to traffic (Attachment 5).
Based on environmental examination of the proposal, Caltrans proceeded with a determination to
categorically exempt this project from CEQA citing Class I (Exisfing Facilities) and also determined
the project to be a programmatic categorical exclusion under NEPA. Therefore, the environmental
determination indicates that the project will have no substantially adverse effects to lond, air, water,
minerals, flora, fauna, noise, or objects of historic or aesthetic significance, nor will the project
otherwise have a potentially significant adverse impact on the environment.
City staff has reviewed the project as required for opproval of a coastal development permit per the
adopted Local Coastal Plan for the vehicle pullouts and gore pavings. Staff had determined the
project as proposed is consistent with the Local Coastal Plan per the findings and conditions as
noted in the attached resolution.
FISCAL IMPACT
The proposed project will not generate revenue to the City of Chula Vista and will not require any
investment by the City.
..3-~
PAGE 3, ITEM NO.:
MEETING DATE: 12/10/02
ATTACHMENTS
1. Proiect Site
2. Environmental Categorical Exemption
3. Existing Conditions (typical)
3. Proposed Artscape/Landscape
4. Maintenance Vehicle Pullouts and Gore Paving
nCOMMDEV\STAFF.REP\ 12.10.02\Coll,"n, .RDA.doc
..3 -3
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ATTACHMENT 2
CATEGORICAL EXEMPTION
CATEGORICAL EXCLUSION/PROGRAMMATIC CATEGORICAL EXCLUSION
DETERMINATION FORM
1'.SD-5I54 1.5: 13.8-6.3 (8.6-10.0) 249100
SR-54: 0.0-3.05 (0.0-19) 076800
Dist.Co-Rte (or Local Agency) K.P JK.P.(P.MlP.M.) EA (State project) Proj. No. (Local project)
(Fed.Prog. Prefix
Proj. No., Agr. No.)
PROJECT DESCRIPTION: (Briefly describe projecL purpose, loca~on, limits, right-of-way requirements. and activities involved.)
On Intarstate 5, between 24th Street and E Street, in the City of Chula Vista and National City, in San Diego County; rehabilitate existing
planting areas with inert materials, artscape and new planting material; and upgrade exisitng irriga~ons systems to aesthetically improve the site
and mitigate for erosion and visual impacts. In and near the Interstate 5/State Roule 54 interchange and along the Sweetwater River Flood
Channel Levee, in the City of Chula Vista and Na~onal City. in San Diego County; create a linear greenbelt and recreation corridor linking
Tidelands Part to the Bonita Plaza Commercial area as part of a TEA project Install gore paving and eight new MVP pullouts. No new right of
way required.
CEO A COMPLIANCE (tor State Projects only)
Based on an examination of this proposal, supporting infonnation, and the following statements (See 14 CCR 15300 et seq.):
. If this project falls within exempt class 3, 4, 5, 6 or 11, ij does not impact an environmental resource of hazardous or critical concern
where designated, precisely mapped and officially adopted pursuant to taw.
. There will not be a signifICant cumulative effect by this project and successive projects of the same type in the same place. over ~me.
. There Is not a reasonable possibility that the project will have a significant effect on the environment due to unusual circumstances.
. This project does not damage a scenic resource within an offICially designated state scenic highway.
. This project is not located on a SITe included on any list compiled pursuant to GoVl Code § 68962.5 ("Cortese Us!").
. This project does not cause a substantial adverse change in the significat1Ce of a historical resource.
CAL TRANS CECA DETERMINATION
10 -2'1-">2. ~oz..
Si na Date Date
Based on an examination of this proposal. supporting infonna~on, and the following statements.
. This project does not have a signiflCaItt impact on the environment as defined by the NEPA.
. This project does not involve substantial controversy on environmental grounds.
. This project does not Involve signifICant Impacts on properties protected by Section 4(n of the DOT Act or Section 106 of the National
Historic Preservation Act
. In non-attainment or maintenance areas for Federal air quality standards: this project comes from a currently conforming plan and
Transportation Improvement Program or is exempt from regional ccnfonnity.
. This project is consistent with all Federal, State. & local lam, requirements or administrative detenninations rela~ng to the
environmental aspects of this action.
CALTRANS NEPA DETERMINATION
Based on an examination of this proposal, supporting infonnation, and the statements above under "NEPA Compliance", ij is determined that
the project is a:
[8J PROGRAMMATIC CATEGORICAL EXCLUSION (peE): Based on the evaluation of this project and supporting documentation in the
project files, all the condi~ons 01 the September 7, 1990 Programmatic Categorical Exclusion have been met.
0 CATEGORICAL EXCLUSION (CE): For ectlons that do not individually or cumulatively have?lSi nifieant environmental
effect and are excluded from the requirement to prepare an Environm~ntal k;s ssment (~ vironmentallmpact
Statement IS). R~;¡ire. FI)"fI' detennination.
~ IO-U-O2,), /o'Zr,¡'/)z.
Sign e: Environmental Office Chief Date Signature: Project Manager/DLA Engineer Date
FHWA DETERMINATION
Based on the evaluation of this project and the statements above, ij is detennined that the project meets the criteria of and is properiy classified
as a CategoricaJ Exclusion (CE).
Signature: FHWA Transportation Engineer Date
.3-~
ATTACHMENT 3
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