HomeMy WebLinkAboutRDA Packet 1998/11/10
Notice is hereby given that the Chairman of the Redevelopment Agency has called and will convene a special joint
meeting of the Redevelopment Agency/City Council/Housing Authority on November 10, 1998, at 6:00 p.m.,
immediately following the regular City Council meeting, in Council Chambers, located in the Public Services
Building, 276 Fourth Avenue, Chula Vista, California to consider, deliberate and act upon the following:
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Tuesday, November 10, 1998 Council Chambers
6:00 p.m. Public Services Building
(immediately following the City Council meeting)
Soecial Joint Meetin. of the Redevelonment A.encv / Citv Council / Housin. Authoritv
of the Citv of Chula Vista
CALL TO ORDER
1. ROLL CALL: Agency/Council Members Moot -, Padilla -' Rindone -, Salas -,
and Chair/Mayor Horton -
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. (State 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 Oral Communications Form"
available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to the
meeting. Those who wish to speak, please give your name and address for record purposes and follow up action.
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
The following items have been advertised and/or posted as public hearings as required by ww. If you wish to speak
to any item, pleaseftll out the "Request to Speak Form" available in the lobby and submit it to the Redevelopment
Agency or the City Clerk prior to the meeting.
2.a) PUBLIC HEARING: CITY COUNCIL CONSIDERATION OF THE ISSUANCE OF TAX
EXEMYf OBLIGATIONS WITH RESPECT TO THE PROPOSED
VILLA SERENA SENIOR AFFORDABLE HOUSING PROJECTn
The City has received a request from sunbow Center LP. to issue $8
million in Tax Exempt Multi-Family Housing Revenue Bonds to finance
the proposed I 32-unit Villa Serena Apartments for low-income seniors
located on the northeast corner of Medical Center Drive and Medical
Center Court within the Sunbow II subdivision. As required by federal
tax law governing the issuance of tax exempt bonds, a public hearing
must be held by an elected representative of the governmental unit
having jurisdiction with regard to the intent to issue such bonds.
Therefore, Council is asked to hold a public hearing regarding the
Housing Authority's intent to issue tax exempt bonds for the financing
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Agenda -2- November 10, 1998
of the project. Additionally, it is requested that the Authority adopt a
resolution expressing its intent to issue tax exempt bonds for the project
and the Council adopt a resolution authorizing the issuance, sale and
delivery of the bonds by the Authority. Staff recommends approval of
the resolutions. (Community Development Director)
b) HOUSING AUTHORITY REGARDING ITS INTENTION TO ISSUE TAX EXEMYf
RESOLUTION HA-08 OBLIGATIONS FOR THE VILLA SERENA APARTMENTS
c) COUNCIL AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF
RESOLUTION 19256 MULTI-FAMILY HOUSING REVENUE BONDS BY THE
HOUSING AUTHORITY OF THE CITY OF CHULA VISTA FOR
THE VILLA SERENA APARTMENTS
ACTION ITEMS
The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the
Agency, staff, or members of the general public. The items will be considered individually by the Agency and staff
recommendations may in certain cases be presented in the alternative. Those who wish to speak, please fill out
a "Request to Speak" form available in the lobby and submit it to the Secretary to the Redevelopment Agency or
the City Clerk prior to the meeting.
3. COUNCIL APPROVING AN EXCLUSIVE NEGOTIATING AGREEMENT
RESOLUTION 19257 SUBJECT TO OWNER PARTICIPATION RIGHTS WITH
AGENCY TUCHSCHER DEVELOPMENT ENTERPRISES, INC.
RESOLUTION 1606 REGARDING DEVELOPMENT OF A MIXED USE PROJECT ON
THE MIDBAYFRONT PROPERTYn Tuchscher Development
Enterprises, Inc. has requested an Exclusive Negotiating Agreement for
one year, with an option for a six month extension, in order to develop
plans, pursue entitlements, secure financing and negotiate a Disposition
and Development Agreement to develop a 126.8 acre area located on
the Midbayfront. The 2.7 million sq. ft. mixed use proposal
incorporates resort, multi-family residential, R&D/office,
entertaimnent/retail, and active park and open space. Staff recommends
the Agency/Council approve the resolutions, and direct staff to extend
Owner Participation Rjghts within 30 days of the effective date of the
Agreement. (Community Development Director)
4. COUNCIL APPROVING A PROJECT STAFFING/CONSULTANT AND
RESOLUTION 19258 PROCESSING AGREEMENT WITH TUCHSCHER
AGENCY DEVELOPMENT ENfERPRISES, INC. FOR DEVELOPMENT OF
RESOLUTION 1607 A MIXED USE PROJECT ON THE MIDBAYFRONT
PROPERTY-Tuchscher Development Enterprises, Inc. is proposing to
develop a portion of the Midbayfront with a 2.7 million sq. ft. mixed
use project comprised of resort, multi-family residential, R&D/office,
entertainment/retail, and active park and open space. The proposed
project will require a number of entitlements. permits and approvals
including, but not limited to, General Plan, Specific Plan and Local
Coastal Program amendments, an Environmental Impact Report, and a
Tentative and Final Map. The proposed Agreement would provide the
Developer with assigned professional staff and consultants in order to
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Agenda -3- November 10, 1998
process the project in a timely manner and would ensure the
Agency/City is reimbursed for expenses incurred in processing the
Developer's applications. Staff recommends approval of the
resolutions. (Community Development Director)
5. COUNCIL APPROVING LOANS IN THE TOTAL AMOUNT OF $169,000 TO
RESOLUTION 19259 SOUTH BAY COMMUNITY SERVICES FOR THE ACQillSmON
AGENCY OF TWO PROPERTIES FOR THEIR OPERATION AS
RESOLUTION 1608 SUPPORTIVE HOUSING FOR THE HOMELESS OR VERY LOW
INCOME FAMILIES AND THE APPROPRIATION OF $117,900
FROM THE CITY OF CHULA VISTA'S HOME FUNDS AND
$51,100 FROM THE REDEVELOPMENT AGENCY'S LOW AND
MODERATE INCOME HOUSING SET-ASIDE FUND
THEREFOR--South Bay Community Services (SBCS) has leased two
condominiums through the U.S. Department of Housing and Urban
Development's Single Family Property Disposition Program for the
maximum time limit of four years. These condominiums are used as
housing for women and children left homeless as a result of domestic
violence. With the expiration of the lease SBCS must now purchase the
condominiums for the below market price offered by HUD in order to
continue and maintain these condominiums for their transitional living
programs or housing for very low income families. SBCS requests that
the Agency and City provide financial assistance to support the
acquisition of these condominiums for their continued use as
confidential domestic violence shelter sites, other transitional living
programs, or housing for very low income families. (Community
Development Director) 4/5ths Vote ReQuired
6.a) AGENCY APPROVING THE DOWNTOWN HOLIDAY LIGHTING
RESOLUTION 1609 PROGRAM--On 8/4/98, the Agency/Council approved a concepmal plan
COUNCIL for the Downtown Holiday Lighting Program and directed staff to
RESOLUTION 19260 provide a detailed program implementation plan and to amend the Town
Centre I Fine Arts Policy to include the Holiday Lighting Program. On
10/6/98, the Agency approved the proposed amendment to the Town
Centre I Fine Arts Policy. The proposed Downtown Holiday Lighting
Program as well as a contract with DEKRA-LITE for the
implementation of the Downtown Holiday Lighting Program is
presented this evening for consideration by the Agency/Council. Staff
recommends approval of the resolutions. (Community Development
Director)
b) AGENCY ENfERING INTO AN AGREEMENT WITH DEKRA-LITE FOR
RESOLUTION 1610 MANUFACTURE, INSTALLATION, REMOVAL AND STORAGE
OF DECORATIONS FOR THE DOWNTOWN HOLIDAY
LIGHTING PROGRAM AND APPROVING $91,907.31
THEREFOR
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Agenda -4- November 10, 1998
OTHER BUSINESS
7. DIRECTOR/CITY MANAGER'S REPORTlS)
8. CHAIR/MAYOR'S REPORTlS)
9. AGENCY/COUNCIL MEMBER COMMENTS
ADJOURNMENT
The meeting will adjourn to a closed session and then to the Regular Redevelopment Agency Meeting on November
17, 1998 at 6:00 p.m., immediately following the City Council meeting, in the City Council Chambers.
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CLOSED SESSION
Unless Agency Counsel, the Executive Director, or the Redevelopment Agency states otherwise at this time, the
Agency will discuss and deliberate on the following item(s) of business which are permitted by law to be the subject
of a closed session discussion, and which the Agency is advised should be discussed in closed session to best protect
the interests of the City. The Agency is required by law to return to open session, issue any reports of fingl 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's return from
closed session, reports of fingl actWn taken, and adjournment will not be videotaped. Nevertheless, the report of
final action taken will be recorded in the minutes which will be available in the Office of the Secretary to the
Redevelopment Agency and the City Clerk's Office.
10. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Government Code Section
54956.8
Property: I) 565-010-30 and 567-011-05 Midbayfront 96.57 acres
2) 567-010-28 Bayfront Park 4.94 acres
3) 567-011-01,565-010-12,
565-010-15, portion of 565-010-18 SDG&E ROW 9.8 acres (appx)
4) 567-021-11, portion of 565-290-39 SD&AE ROW 2.3 acres (appx)
5) 565-310-09 & 565-310-25 Street Merziotis 6.35 acres
6) 567-011-04 Marina Motor Hotel 1.0 acres
7) 567-010-18 Cappos 2.01 acres
8) 567-010-19 Shangri La 2.73 acres
9) 567-021-32 Lagoon Drive Park 1.14 acres
Negotiating Parties: Redevelopment Agency/City of Chula Vista (Chris Salomone); Chula Vista Capital,
B.F. Goodrich, SDG&E, SD&AE, Tuchscher Development Enterprises, Inc.
Under Negotiations: Price and terms for disposition/acquisition
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JOINT CITY COUNCIL/HOUSING AUTHORITY
AGENDA STATEMENT
Item d-
Meeting Date 11.10.98
ITEM TITLE: CAy PUBLIC HEARING: CITY COUNCIL CONSIDERATIDN OF THE ISSUANCE IF
TAX EXEMPT OBLIGATIONS WITH RESPECT TO THE PROPOSED VILLA SERENA
SENIOR AFFORDABLE HOUSING PROJECT
b) HOUSING AUTHORITY RESOLUTION ? REGARDING ITS
INTENTION TO ISSUE TAX EXEMPT OBLIGATIONS FOR THE VILLA SERENA
APARTMENTS
i.') COUNCIL RESOLUTION / c¡ .z.~'G", APPROVING THE ISSUANCE. SALE AND
DELIVERY OF MUL TI.FAMIL Y HOUSING REVENUE BONDS BY THE HOUSIIIG
AUTHORITY OF THE CITY OF CHULA VISTA FOR THE VILLA SERENA APARTMEN1ì
SUBMITTED BY: c.~oo", ",wl.pm""' m~ -c.,.
REVIEWED BY: City Manageíj)¡Z 1 ~ (4/5ths Vote: Yes- NolL )
BACKGROUND: The City has received a request from Sunbow Center L.P., a California Limited Partnership to
issue an $8,000,000 Tax Exempt Multi.Family Revenue Bond to finance a proposed 132 unit senior rental housing
project. The project is to be known as "Villa Serena" located on the north east corner of Medical Center Drive and
Medical Center Court within the Sunbow II subdivision of eastern Chula Vista Isee attached Exhibit 1). The project
is to be owned and operated by Sunbow Center L.P.
At this time, the City Council is asked to hold a public hearing on the question of whether the Housing Authority
should issue tax exempt bonds for the financing of the project. Additionally, it is requested that the Housing Authority
adopt a resolution expressing its preliminary intention to issue bonds and the Council to adopt a resolution authorizing
the issuance, sale, and delivery of the bonds by the Authority. The requested actions are preliminary and do not
commit the Authority to issue the bonds. Such preliminary actions are necessary in order to allow the project
developer to submit an application to the State bonding authority, and to allow the developer to receive
reimbursement out of bond proceeds for actual costs it incurs leading up to the actual sale of bonds.
The developer is in the process of preparing an application for an allocation of the 1999 state ceiling on private
activity bonds for multi-family rental housing projects from the California Debt Limit Allocation Committee ICDLAC).
The application process is a very competitive one, which needs to demonstrate readiness to complete the project and
strong support from the community. If successful in obtaining a bond commitment from CDLAC, the developer plans
to come back to the Authority to request final approval for the issuance of the bonds.
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Page 2. Item .db
Meeting Date 11.10.98
The issuance of the bonds is in the public interest due to the reservation all of the units within the project as
affordable housing for very low and low income senior households. The public hearing is required by federal tax law
governing the issuance of tax exempt bonds. This activity would provide funding for a project that has already been
subject to review under CEQA, and therefore does not require any additional environmental analysis.
RECOMMENDATION: That the City Council conduct the required public hearing regarding the Authority's intent
to issue tax exempt obligations for the Villa Serena Apartments.
That the Housing Authority adopt a resolution regarding its intention to issue tax-exempt obligations for the Villa
Serena Apartments.
That the City Council adopt a resolution approving the issuance, sale and delivery of multi-family revenue bonds of
the Housing Authority of the City of Chula Vista for the Villa Serena Apartments.
BOARDS/COMMISSIONS RECOMMENDATION: On October 28,1998, the Housing Advisory Commission
voted to conceptually recommend the proposed senior housing project and the use of tax exempt bonds and Low and
Moderate Income Housing Set-aside funds to finance the project.
DISCUSSION:
The City's State-mandated Housing Element requires the provision of housing for all economic groups and to distribute
affordable housing developments throughout the City's jurisdiction. The City's strategy to implement this mandate,
the "Affordable Housing Program", is to require 10 percent (1 O%) of any new subdivision in excess of fifty (50) units
to be made affordable for low and moderate income families (5% low and 5% moderate) and to balance affordable
housing development throughout the City.
Under the City's Affordable Housing Program, the master developer of Sunbow II has an obligation to provide a total
of ninety-seven (97) low income units and ninety-seven (97) moderate income units. Sunbow Center L.P., an entity
created by Chelsea Investment the for-profit affordable housing developer of the pending 440-unit Gateway
Apartments affordable housing project in McMillin's Otay Ranch SPA One community, has proposed the 132 unit Villa
Serena development which staff believes will satisfy Sunbow II's low income housing requirement. The Affordable
Housing Agreement with Sunbow II will need to be amended to declare Sunbow II's low income housing obligation
satisfied upon completion of construction of Villa Serena and occupancy of all units by low income tenants. This
amendment to the Agreement will be presented to City Council for consideration at such time final approval of the
issuance of the bonds is requested.
The use of the Authority's tax-exempt status to issue bonds for senior rental housing represents an attempt to
improve the affordability of rental housing in Chula Vista. Such bonds are a form of public-private partnership which
gains importance as federal housing programs diminish and development costs make low income housing development
problematic. In the City's Housing Element of the General Plan, the Affordable Housing Program declares that, "Where
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Page 3. Item ;)-
Meeting Date 11.10.98
practical, the City shall consider the use of tax exempt revenue bonds for the purpose of underwriting a portion of
the cost of low and moderate income housing." Used appropriately in pursuit of public good, tax exempt multi-family
bonds represent a tool to achieve such underwriting; made necessary by the gap between market rental rates and
development costs.
In order for a multi-family housing bond to attain and sustain federal tax exempt status, the projects in the issue must
meet certain federal requirements pertaining to the inclusion of low income tenancy and the preservation of the
project units as rentals. This tax exempt instrument represents a subsidy to the development community from the
federal treasury as a result of reduced tax revenues- Because that subsidy is a giving of public funds, the federal
regulations address the provision of public good.
The Proposed Project
The Villa Serena development is proposed to be built at the northeast corner of Medical Center Drive and Medical
Center Court in the Sunbow II subdivision east of Interstate 805 in the City of Chula Vista. The development
envisions 132 apartment units in a two story flat configuration. All units will be affordable to low income seniors
over 62 years of age Isee attached Exhibit 2). The low income units will satisfy the requirements of the City's
Program for the Provision of Affordable Housing within the Sunbow II community.
The residential units will be two story flats of Type V construction- The proposed unit mix and sizes are as follows:
112 lBR/1BA units approximately 660 SF
20 2BRI1 BA units approximately 825 SF
Of the 132 units, 20 percent 127 units) will be rented on a rent restricted basis to seniors whose income is at or below
50 percent of the Area Median Income IAMI) as determined by HUD and 80 percent (105 units) for seniors at 60
percent of the AMI. This project will provide a balance of housing opportunities to help fulfill a long overdue need in
Chula Vista for affordable senior housing in the neighborhoods east of Interstate 805.
Each unit will include one parking space, balcony or patio, washer/dryer hook-up, full sized energy-efficient appliances,
ceiling fans, outdoor storage, air conditioning, security features and dual glazed windows- Project amenities include
pool, spas, clubhouse, laundry facilities, security features, and population-appropriate recreational, social and
entertainment programs.
Villa Serena will be located adjacent to the Veterans Home and within walking distance to Sharp Memorial Hospital
and Medical Center. The site has more than adequate access to public transportation.
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Page 4, Item ,;J--
Meeting Date 11.10.98
Income and Rent Restrictions
Of the 132 units, 27 will be restricted to households at 50% of the median income, which is currently $20,300 for
a family of two. The remainder of the units will be restricted to households at 60% of the median income, which is
currently $24.400 for a family of two. It is proposed that the rents on the 1 BR units will range from approximately
$444 to $539/month. Rents on the restricted 2BR units will range from approximately $530 to $644/month. The
restricted rents are determined by HUO for the current fiscal year.
Income and rent restrictions for Villa Serena will be maintained for a period of no less than 52 years, exceeding the
33-year term of the bond. The low income housing commitment will bind all subsequent owners of Villa Serena, so
that the commitment remains in force regardless of ownership.
The income and rent restrictions outlined above are to be incorporated into the Regulatory Agreement which will be
recorded against the Property. Compliance with these restrictions will be subject annually to regulatory audit and
annual tax credit certification. The developer has successfully managed low income housing units for 12 years.
Compliance with strict property management policies and procedures will ensure that income and rent restrictions
will be maintained for the full 52-year compliance period.
Prooosed Financinu of Proiect
It is currently estimated that the proposed total project cost will be $9.9 million. Sources of funding for the project
will include approximately $6.4 million in bond proceeds, $2.4 million in low income housing tax credits, and $1.1
million from other sources which could include developer equity and a City contribution.
The $8,000,000 bond issue request exceeds the current estimated bond proceeds needed to finance the project.
However, as per the Authority's Bond Counsel, it is recommended to consider issuing a higher bond amount to allow
for flexibility in case the actual development costs are higher than currently estimated.
It is anticipated that the developer will request financial assistance of approximately $275,000 from the
Redevelopment Agency of the City to meet an expected financing gap. A recommendation for financial assistance
will be presented to the Agency for consideration before or at such time final approval of the issuance of the bonds
is requested. Any financial assistance provided will be based upon a full financial analysis of the project costs and
need for financial assistance and subject to the negotiation of satisfactory terms of the Regulatory Agreement and
Loan Agreement and the approval of such terms and the documents by the Authority and the Agency-
Assuming all financial commitments are secured, construction is expected to begin Fall 1999 with completion of the
project estimated by Spring 2001.
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Page 5. Item el-
Meeting Date 11-10.98
Bond Structure
The developer is proposing that the Authority issue tax exempt bonds to finance the construction. The bonds would
total approximately $8 million. Final approval for the issuance of the bonds and all related bond documents will be
presented to the Housing Authority for approval at a later date.
Summary
It is staff's recommendation that: 1) The City Council conduct the required public hearing regarding the intent of the
Authority to issue tax exempt bonds; 2) The Housing Authority adopt a resolution regarding its intention to issue tax
exempt bonds; and 31 The City Council approve the issuance, sale, and delivery of multi-family housing revenue bonds
of the Housing Authority to finance the proposed project for the following reasons:
. The proposal's effectiveness in serving the City's needs and priorities as expressed in the Housing Element
of the General Plan and the HUD Consolidated Plan.
. The proposal's consistency with the City's affordable housing policies as expressed in the Housing Element,
and the HUD Consolidated Plan.
. The proposal's development and operating feasibility, financing sources and the role of the City and the
Agency in providing financial assistance or incentives.
Villa Serena is proposed by a development team made up of Chelsea Investment Corp. and Pacific Southwest
Community Development Corporation, and is committed to affordable housing. The financing structure of the project
is sound. The proposed Agency assistance meets the Agency's underwriting goals of reasonable project costs and
leveraging of Agency resources. The project quality includes good design and location. The Agency housing goals
are supported by the project's unit mix and affordability.
Although the City's highest priority for the development of affordable housing remains family units whenever feasible,
staff recommends the development of housing for seniors at this site. This site location provides constraints to the
development of housing for families but offers close proximity to services and facilities needed by seniors. The
proposed senior housing will be affordable to seniors at 50 and 60 percent of the AMI. Additionally, the site offers
an opportunity to provide a mix of housing types and population groups within a master planned community
predominately comprised of single family homes.
FISCAL IMPACT: Conducting the public hearing and approving this resolution only indicates an intention by the
Authority to issue tax exempt obligations and does not commit the City to issue bonds at this time. All costs related
to the issuance of the bond will be paid for from bond proceeds or profits. The bonds will be secured by the project
and will not constitute a liability or obligation to the Authority. Some staff time costs will be associated with
monitoring compliance with the Regulatory Agreement. Those costs will be reimbursed from an annual administrative
and origination fee to be paid by the Developer to the Authority, which will be negotiated before the Authority
approves the actual issuance of the bond. It is anticipated that the developer will request financial assistance of
approximately $275,000 from the Redevelopment Agency of the City to meet an expected financing gap. A
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Page 6, Item .d:-
Meeting Date 11-10.98
recommendation for financial assistance will be presented to the Agency for consideration before or at such time final
approval of the issuance of the bonds is requested.
EXHIBITS:
1. Location Map
2. Project Site Plan and Elevations
IJ"'hl H,IHOMEICOMMOEVISTAFF.REPI11.10.98IVillaSerr.wpd [No"mb" 5. 1998112,41pmll
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RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA
REGARDING ITS INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS
FOR THE VILLA SERENA APARTMENTS
WHEREAS, the Housing Authority of the City of Chula Vista (the "Issuer") desires to
assist Chelsea Investment Corporation and Sunbow Center, LP. (Collectively, the "Applicant")
in financing the costs of acquiring certain facilities and improvements, as provided in Exhibit A
attached hereto and incorporated herein (the "Project"); and
WHEREAS, the Issuer intends to assist in the financing of the acquisition and construction
of the Project or portions of the Project with the proceeds of the sale of obligations the interest
upon which is excluded from gross income for federal income tax purposes (the "Obligations"),
which Obligations are expected to be issued pursuant to Chapter 1 of Part 2 of Division 24 of the
Health and Safety Code of the State of California; provided, however, that this Resolution shall
not authorize the issuance of the Obligations and provided further that neither the faith and credit
nor the taxing power of the Issuer shall be pledged to repay such Obligations if, and when,
authorized; and
WHEREAS, prior to the issuance of the Obligations the Applicant desires to incur certain
expenditures with respect to the Project from its own available monies which expenditures are
desired to be reimbursed from a portion of the proceeds of the sale of the Obligations if, and
when, issued.
NOW, THEREFORE, BE IT RESOLVED the Housing Authority of the City of Chula
Vista does hereby resolve, order and determine as follows:
Section 1. This Housing Authority has received an application for the financing of the
Project on behalf of the Applicant (the" Application "). The Applicant will incur costs with respect
to the Project prior to the issuance of the Obligations. The Issuer hereby states its intention and
reasonably expects to reimburse the Applicant for such costs with proceeds of the Obligations
provided, however, that nothing herein obligates the Issuer to issue the Obligations or provides
the Applicant with any legal right to compel the issuance of the Obligations, which decision
remains in the final discretion of the City. Exhibit A describes the general character, type,
purpose, and function of the Project.
Section 2. The reasonable expected maximum principal amount of the Obligations is
$8,000,000.
Section 3. This resolution is consistent with the budgetary and financial circumstances of
the Issuer, as of the date hereof. No monies from sources other than the Obligation issue are, or
are reasonably expected to be reserved, allocated on a long-term basis, or otherwise set aside by
the Issuer (or any related party) pursuant to their budget or financial policies with respect to the
Project costs. This Board of Commissioners is not aware of any previous adoption of official
intents by the Issuer that have been made as a matter of course for the purpose of reimbursing
expenditures relating to this Project and for which tax-exempt obligations have not been issued.
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Section 4. This resolution is adopted as official action of the Issuer in order to comply with
Treasury Regulation § 1.103-8(a)(5) and Treasury Regulation § 1.150-2 and any other regulations
of the Internal Revenue Service relating to the qualification for reimbursement of the Applicant's
expenditures incurred prior to the date of issue of the Obligations, is part of the Issuer's official
proceedings, and will be available for inspection by the general public at the main administrative
office of the Issuer.
Section 5. All the recitals in this Resolution are true and correct.
Presented By Approved as to form by
~A--.~~./ ~~~
Chris Salomone
Community Development Director ~hn ny ) \
ey j
[C, I WPWtNVU ANIOOCUM ENTIRESOSIH OU- A UTH. DOC]
02- f
EXHIBIT A
DESCRIPTION OF PROJECT
A proposed multi-family rental housing project of approximately 132 units to be know as "Villa
Serena" and to be located on the northeast corner of Medical Center Drive and Medical Center
Court in Chula Vista, California.
Exhibit A-I
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RESOLUTION NO. ~s,-rc,
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING THE ISSUANCE, SALE AND DELIVERY OF
MULTI-FAMILY HOUSING REVENUE BONDS BY THE HOUSING
AUTHORITY OF THE CITY OF CHULA VISTA FOR THE VILLA
SERENA APARTMENTS
WHEREAS, the Housing Authority of the City of Chula Vista (the "Authority") has
previously expressed its intent to issue multi-family housing revenue bonds (the Bonds") to finance
the construction of a 132-unit multi-family rental housing project (the "Project") to be located in
the City of Chula Vista to be owned by Sun bow Center, loP., a California Limited Partnership; and
WHEREAS, pursuant to Section 147(t) of the Internal Revenue Code of 1986, as
amended (the "Code"). the Bonds are required to be approved, following a public hearing, by an
elected representative of the governmental unit having jurisdiction over the area in which the
Project is located; and
WHEREAS, the City Council of the Authority is made up of members which have
been appointed but not elected to their positions, and the City is the next higher governmental unit
with an applicable elected representative from which the Authority derives its authority; and
WHEREAS, the Project is located wholly within the geographic jurisdiction of the
City; and
WHEREAS, the City Council is the elected legislative body of the City; and
WHEREAS, the City has caused a notice to appear in the Star News, which is a
newspaper of general circulation in the City, on October 24, 1998, to the effect that a public
hearing would be held by the City Council on November 10, 1998, regarding the issuance of the
Bonds by the Authority; and
WHEREAS, on November 10, 1998, the City Council held said public hearing, at
which time an opportunity was provided to present arguments both for and against the issuance
of the Bonds; and
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula Vista
as follows:
Section 1. The City Council does hereby find and declare that the above recitals
are true and correct.
Section 2. Pursuant to Section 147(t) of the Code, the City Council hereby
approves the issuance of the Bonds by the Authority in one or more series, in aggregate principal
amount not to exceed $8,000,000 and with a final maturity not later than 33 years from the date
of issuance to finance the construction of the Project. It is the purpose and intent of the City
Council that this Resolution constitute approval of the issuance of the Bonds by the applicable
elected representative of the governmental unit having jurisdiction over the area in which the
Project is located, in accordance with said Section 147(f).
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Section 3. The City Council hereby confirms that is appropriate for the Authority
to issue the Bonds to finance the construction of the Project.
Section 4. This Resolution shall take effect from and after its adoption.
Presented by Approved as to form by
~ ~~ ./
Chris Salomone
Director of Community Development
"'H"hl HIHOME\COMMOEVIRESOSISERENA {O,"b.. 28. 1998 {12,S2PM{]
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I 11
JOINT REDEVELOPMENT AGENCY/COUNCIL AGENDA STATEMENT
Item ...3
Meeting Date 11/10/98
ITEM TITLE: AGENCY RESOLUTION /rooe,
COUNCIL RESOLUTION /Q:z.:s-7 APPROVING AN EXCLUSIVE NEGOTIATING
AGREEMENT SUBJECT TO OWNER PARTICIPATION RIGHTS WITH TUCHSCHER
DEVElOPMENT ENTERPRISES, INC. REGARDING DEVELOPMENT OF A MIXED USE
PROJECT ON THE MIDBAYFRONT PROPERTY
SUBMITTED BY: Community Development Director L C)
REVIEWED BY: "OC"ti.. o;,octO'11<. ~ 8&J (4/5ths Vote: Yes- NoXI
BACKGROUND:
In past years there have been several development proposals for the property commonly referred to as the
"Midbayfront". Most recently, in 1992 a Local Coastal Program amendment was adopted which included a mixed
use development on the Midbayfront. The project included nearly 3.4 million square feet of development comprised
of residential. resort, retail, office and active recreation uses. Due to a number of factors, the project was not
realized. The Midbayfront property to date has remained vacant.
Representatives of Tuchscher Development Enterprises, Inc. ("Developer") are proposing to develop the
Midbayfront property with a 2.7 million square foot mixed use project comprised of resort, multi-family residential,
R&D/office, entertainment/retail, and active park and open space. While the current proposal is similar to the
previous proposal, there is a reduction in scale, intensity, and a number of the uses vary. The preliminary site plan
is attached (Exhibit A) and the proposed project is outlined in the discussion below. The 126.8 acre area under
consideration consists of 15 parcels, including 5 parcels owned by the Redevelopment Agency and 1 parcel owned
by the City of Chula Vista (Exhibit B). The Developer has requested an Exclusive Negotiating Agreement lENA)
with the Agency/City for one year, with an option for a six month extension, in order to develop plans, pursue
entitlements, secure financing and negotiate a Disposition and Development Agreement (DDA) for the project.
Staff is recommending that the Agency/City enter into the ENA due to the quality of the proposal and its potential
to eliminate blighting conditions in the Bayfront Redevelopment Project Area, in addition to serving as a catalyst
for development of the remainder of the Bayfront. The ENA (Exhibit C) is attached and outlined in the discussion
below.
RECOMMENDATION: That the Agency/City adopt the resolution approving the Exclusive Negotiating
Agreement subject to owner participation rights with Tuchscher Development Enterprises, Inc. for a period of one
:3 - I
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Page 2, Item ,,3
Meeting Date 11/10/98
year, with an option for a six month extension, and direct staff to extend Owner Participation Rights within thirty
(30) days of the effective date of this Agreement.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
1. Project Proposal:
The Developer's project is located west of Interstate 5 on what is commonly known as the "Midbayfront", and
is generally bounded by San Diego Bay on the west, Lagoon Drive on the south, Bay Boulevard on the east and
D Street on the north. The proposed mixed-use development consists of resort, multi-family, R&D/office,
retail/entertainment and park uses. As described above, the project site includes 15 parcels and covers an area
of approximately 126.8 acres. Five parcels comprising 12.1 acres are owned by the Redevelopment Agency and
a 1.14 acre parcel is owned by the City of Chula Vista. The remaining parcels are owned by Chula Vista Capital,
BF Goodrich, SDG&E, and SD&AE representing 96.57, 4.94, 9.8 and 2.3 acres respectively.
The Project is planned to have a strong architectural style fashioned after the Spanish architecture utilized by the
Pointe International. Attached in Exhibit D are photographs of properties built by the Pointe International that are
representative of how the Project is envisioned. The proposed master planned development includes the following
uses, although the project is subject to change either in the negotiation of the DDA and/or in the entitlement
process:
Retail/Entertainment: The entertainment retail center will set the thematic tone and architectural dialect for
the entire project. The architecture will be heavily themed and will be accented with colors, textures, design
elements and landscaping. The buildings are envisioned to surround a "village square" with a large fountain and
bandstand for music or other entertainment (envisioned during weekends and special events). The grand building
on the town square (usually a government building or church) is planned to be an entertainment venue with a
regional draw. The square will be surrounded by a variety of themed restaurants with open air dining. Retailers
that capitalize upon the cultural flavor of this Project and the San Diego region will be encouraged. The developer
will attempt to attract tenants from Tlaquepaque, Guadalajara, Mexico in an effort to establish a unique mix of
tenants that include Mexican artisans who add cultural flavor. Other entertainment retailers might include book
stores, record stores, and game centers. The retail/entertainment component will comprise a total of
approximately 163.456 square feet.
Resort Hotel: The hotel will be situated on the western edge of the Project area and will border along 1620 feet
of water frontage. This hospitality component of the Project will be comprised of 450 rooms, three restaurants,
and 50,000 square feet of banquet and meeting space (approximately 285,000 total square feet). Each restaurant
is planned to be heavily themed with one featuring an outdoor "on the water" dining experience. The buildings are
envisioned to be configured as four stories over parking similiar to the construction method utilized for the Loews
3-2-
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Page 3. Item 3
Meeting Date 11 /1 0/98
Coronado Bay Resort. The hotel will offer a "Resident and Executive Privilege Program" which will allow the
homeowners and corporate residents within the Project to access the resort amenities, additional services
contemplated include catering or room service, concierge, shuttle service to the airport and preferential room rates.
Residential: A total of 1,000 multi-family residential units are planned within the project. The product will be
segmented into seven distinctive product types, each offering a seperate type of product, floor plans and models,
and square footage. Current plans envision the following: 743 units of multi-family units with densities that range
from 20-50 units per acre, and 256 units of high-rise units.
The lower density units are planned to range between 2.4 stories. The two highrise towers are planned to be 16-
story buildings. These buildings will be designed to fit the character of the overall project and will be closely tied
to the Resort, it's amenities and facilities.
Research and Development: This component will consist of high-quality three story buildings which will be
designed to compliment the resort and retail/entertainment architecture (approximately 465,350 square feet).
Retail: This component will be a small retail center designed to serve the Project residents and businesses and
will be comprised of uses such as a convenience market, dry cleaners, deli, etc. (approximately 12,196 square
feet).
Park: This component will consist of approximately 8.5 acres of active park uses, plus a 100' linear open space
buffer between the residential component and the Sweetwater Marsh National Wildlife Refuge.
In addition, the project proposal includes support development on the Street Merziotis and Lagoon Drive Park
properties. As discussed below, the Agency/City is not obligated to sell, lease or exchange the Agency/City
property.
2. Project Benefits:
The Project's estimated build-out value is $500 million. The Project is projected to generate total annual revenues
of $7.85 million, comprised of $5 million in property tax, $850,000 in sales tax and $2 million transit occupancy
tax. The estimated job generation is 4900.
3. Status of Development:
a. Property Acquisition: The Developer and the primary property owner, Chula Vista Capital are
currently negotiating the sale of 96.57 acres.
b. Entitlement Processing: The Developer will be entering into a Project Staffing/Consultant and
Processing Agreement for this Project, which is before Council along with this item. The Agency/City will
make good faith efforts to process the entitlements within the time frame established in the Agreement.
The Developer will pay for the consultants and non-Community Development Department staff needed
3-3
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Page 4, Item 3
Meeting Date 11/10/98
to process the project within this time frame at full cost recovery. The entitlement process is estimated
to be 15 months.
c. Public Input/Hearing Process: There will be opportunity for public input throughout the
entitlement process at public hearings held for the Design Review Board, Planning Commission and City
Council. In addition, staff will be developing a public outreach program that is envisioned to include
focused public forums to allow for the community to review and comment on the project as it develops.
4. Development Time Frame:
The proposed project will require an Environmental Impact Report, General Plan and Specific Plan amendment,
Coastal Development Program amendment and permit, and a Tentative Map and Final Map. The estimated
entitlement time frame is 15 months. The project will be sensitively phased relative to market forces. It is
anticipated that the resort, entertainment/retail and multi-family residential will be developed in the early phases
with the potential for the R&D/office and high-rise residential to lag slightly behind. The build out of the first
phases is expected by 2002, with the project being completed by 2004.
5. Exclusive Negotiating Agreement lENA):
In order to continue negotiations with the Agency/City and other property owners, develop plans, entitle the
project. market the project, and secure financing, the Developer has requested an ENA for a period of one year,
with a provision for an additional extension of six months. This is a typical time frame for a project of this
magnitude to develop the plans and negotiate a DDA for actual site acquisition and development.
Staff recommends approval of the attached ENA which provides the framework by which the DDA is negotiated.
In addition to specifying what the project will include, the ENA delineates specific negotiating points for the DDA.
This ENA does not commit the City or Agency to any project approvals or property sales. Generally, the ENA
establishes a period for exclusive negotiations in order to:
a. further define and develop the Project;
b. determine project feasibility;
c. determine the public benefit derived from the Project;
d. determine the need for the various Agency/City owned parcels;
e. analyze the potential environmental impacts of the project; and
f. negotiate a mutually satisfactory DDA.
Staff will provide regular updates to Council throughout the negotiation process and when the DDA negotiations
are completed staff will return to Agency/Council for consideration of the DDA.
The ENA specifies obligations and rights for both the Developer and the Agency/City, some of which are listed
below:
3-4
T 11
Page 5. Item ..3.
Meeting Date 11/1 0/98
a. Developer Obligations/Rights
. Submittal of requested economic data, including project proforma and cash flow
analysis
. Submittal of a cash deposit for the Processing Agreement
. Right to negotiate a subsidy which may include conveyance of Agency/City parcels, if
they are deemed to be necessary for the Project
b. Agency/City Obligations/Rights
. Assist in determining all on-site and off-site public improvements
. Staff Project/coordinate EIR processing
. Convey parcels of property owned or acquired by Agency/City deemed to be necessary
for the Project
In addition, the ENA defines parameters for the development of the Project, some of which include:
1. Provision for diversity of product and signature elements within the Project.
2. Inclusion of pedestrian linkages and other circulation enhancements between key project
components;
3. Provision for the development of the resort hotel within the early phases of the overall
development; and
4. Provision for capital improvements to the Sweetwater Marsh National Wildlife Refuge and
enhancement of it's interpretive and public access features.
In compliance with State law, the ENA includes the provision to extend owner participation rights to all property
owners and tenants which are party to this ENA. The Resolution directs staff to offer these rights within 30 days
of the effective date of this ENA. Each affected party will be formally notified regarding the ENA and extended
an invitation to participate in the proposed development or to submit alternative development proposals.
FISCAL IMPACT:
During the negotiating period, the fiscal impact will include staff time to extend owner participation rights to the
affected property owners and to negotiate the Disposition and Development Agreement.
IDDAI H,\HDMEICDMMDEV\STAFF.REP\l 1.10.98\m;d.ena INo"mb" 5, 199818,56amlJ
3-5
r 11
AGENCY RESOLUTION NO. ~
and
COUNCIL RESOLUTION NO. ~ 7
JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
APPROVING AN EXCLUSIVE NEGOTIATING AGREEMENT SUBJECT
TO OWNER PARTICIPATION RIGHTS WITH TUCHSCHER
DEVELOPMENT ENTERPRISES, INC. REGARDING DEVELOPMENT
OF A MIXED USE DEVELOPMENT ON THE MIDBA YFRONT
PROPERTY
WHEREAS, representatives of Tuchscher Development Enterprises, Inc.
("Developer") are proposing to develop the Midbayfront property with a 2.7 million square foot
mixed use project comprised of resort, multi-family residential, R&D/office, entertainment/retail,
and active park and open space; and
WHEREAS, the proposed project area is 126.8 acres and is comprised of 15 parcels,
including 5 parcels owned by the Redevelopment Agency and 1 parcel owned by the City of Chula
Vista; and
WHEREAS, the Developer has requested an Exclusive Negotiating Agreement (ENA)
with the Agency/City for one year, with an option for a six month extension, in order to develop
plans, pursue entitlements, secure financing and negotiate a Disposition and Development
Agreement; and
WHEREAS, the Agency/City is willing to enter into an ENA due to the high quality
of the proposal and its potential to eliminate blighting conditions in the Bayfront Redevelopment
Project Area, in addition to serving as a catalyst for development of the remainder of the Bayfront;
and
WHEREAS, the ENA, in compliance with State Law, provides for the extension of
owner participation rights to all property owners and tenants which are party to the ENA.
NOW, THEREFORE, BE IT RESOLVED the City Council and Redevelopment Agency of the
City of Chula Vista do hereby (1) approve the Exclusive Negotiating Agreement subject to owner
participation rights with Tuchscher Development Enterprises, Inc. in the form presented and
authorize and direct the Mayor/Chair to execute same, and (2) direct staff to extend Owner
Participation Rights in accordance with State law and the requirements of the Bayfront
Redevelopment Plan.
Presented by Approved as to form by
rY~: ~
Chris Salomone
Director of Community Development
IIDDAI H.\HOME\COMMDEV\RESOS\midboy INo",mb" 5. 1998110143,mll
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MIDBA YFRONT OWNERSHIP MAP
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- Chula Vista Capital
- BF Goodrich
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EXHIBIT C
EXCLUSIVE NEGOTIATING AGREEMENT
SUBJECT TO OWNER PARTICIPATION RIGHTS
[MIDBA YFRONT PROPERTIES]
This EXCLUSIVE NEGOTIATING AGREEMENT subject to Owner Participation Rights
[MIDBA YFRONT PROPERTIES] ("Agreement") is entered into effective as of November -, 1998,
("Effective Date") by and between the REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA,
a political subdivision of the State of California, the CITY OF CHULA VISTA, a chartered municipal
corporation (collectively, "Agency/City"), and TUCHSCHER DEVELOPMENT ENTERPRISES,INC., a
California Corporation ("Developer"), with reference to the following facts:
A. Developer is proposing the development of a mixed use real estate project including resort, multi-
family residential, research & development/office, entertainment/retail and active park and open space
components, all as more particularly described in Section 2.2 hereof,-("Project"), upon certain real
property comprised of approximately 126.8 acres of unimproved and improved real property located
within the City of ChuJa Vista, California, within the Bayfront Redevelopment Project Area, as
outlined in Attachment A, and all as more particularly described in Section 2.1 hereof, below
("Property").
B. Agency/City owns certain parcels comprising the Property which Developer has indicated are
necessary for the Project.
C. In order to facilitate the development of the Project on the Property, Developer desires to enter into
an exclusive negotiating agreement with the Agency/City.
D. Due to the high quality nature of the Project, and its potential for eliminating blighting conditions
On and around the Property, Agency/City is willing to enter into such an arrangement on the terms and
conditions set forth in this Agreement.
E. The other parcels comprising the Property are owned by Chula Vista Capital, BF Goodrich, San
Diego Gas & Electric, San Diego & Arizona Eastern, and one parcel is in escrow for sale by the
Agency to the San Diego Unified Port District.
F. Developer is currently negotiating with the primary property owner for property acquisition.
G. Concurrently herewith, the Developer will be entering into a Project Staffing/Consultant and
Processing Agreement ("Processing Agreement") with the Agency/City to ensure that the project is
sufficiently staffed and processed in a timely manner, in addition to providing for reimbursement to
the Agency/City for non-Community Development Department staff time and consultant expenses
incurred due to the project processing.
NOW, THEREFORE, in consideration of the above recitals, the mutual covenants contained herein,
and other good and valuable consideration, the parties hereby acknowledge as satisfactory, THE
AGENCY/CITY AND DEVELOPER HEREBY AGREE AS FOLLOWS:
Page I
3-C¡
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1. NATURE OF AGREEMENT.
l.l ill General: The general purposes of this Agreement are to establish an exclusive negotiation
period during which the parties agree to attempt, in good faith: (a) to further define and develop the
Project; (b) to detennine project feasibility; (c) to detennine the extent to which implementation of
the Project will result in public benefit; (d) the extent to which the various parcels herein described
are necessary for the Project; (e) to analyze the potential environmental impacts of the project; and
(f) in the event the parties are rnutually satisfied with the outcomes of the matters described in (a)-
(e), above, to negotiate a Disposition and Development Agreement for presentation to the
Agency/City for its consideration. Agency/City retain the full discretion to review the Project for
public benefit and for environmental impacts and to make or impose any mitigation conditions or
adopt any overriding considerations which are at that time appropriate or to reject the Agreernent
as well as any sale, lease or exchange of the Agency/City Property.
1.2 Exclusivitv. During the tenn of the Agreement the Agency/City agrees not to negotiate with
any other person or entity regarding the acquisition and development of the Property except for those
owners or tenants of the Property to whom Agency/City is obligated to extend owner participation
rights. Notwithstanding the foregoing, the Agency/City reserves the right to negotiate with parties
with powers of condemnation with respect to all Agency/City properties. Agency/City will, at its
sole cost and expense, extend owner participation rights to all persons entitled thereto by law, and
in connection therewith, Agency/City will retain full and unfettered discretion to extend owner
participation rights to current property owners in the manner required by law, and to consider and
evaluate any owner participation proposals submitted.
1.3 Tenn. The initial tenn of this Agreement shall commence as ofthe Effective Date and, unless
earlier tenninated in accordance with the provisions hereof, shall tenninate one year after the
Effective Date On , 1999 (the "Initial Negotiation Period"). At the end of the Initial
Negotiation Period, the Executive Director, in his sole discretion on behalf of the Agency/City, is
authorized to extend the term of this Agreement for up to an additional 180 days (the "Extended
Negotiation Period") provided that at the end of the Initial Negotiation Period the parties have not
yet entered into a Disposition and Development Agreement, the Agency/City has not exercised its
right to tenninate as herein provided, the Developer not then in default of tenus and conditions
hereof, the Developer concurs with such extension of the negotiation period, and the Executive
Director has detennined that there is a reasonable likelihood that the Developer will agree to tenus
which the Agency/City staff will be able to recommend to the Agency/City prior to the expiration
of the Extended Negotiation Period.
2. DESCRIPTION OF PROPERTY AND PROJECT
2.1 Prooertv Description:
Unless additions or deletions are approved or required by the Agency/City, for purposes of this
Agreement, the 15 parcels comprising the Property shall be as follows:
Page 2
3-10
A. Third Party Parcels
1. Common Name: Midbayfront
San Diego County Tax APN: 565-010-30, and 567-011-05
Current Ownership: Chula Vista Capital
Acreage: 96.57
2. Common Name: Chula Vista Bayfront Park
San Diego County Tax APN: 567-010-28
Current Ownership: BF Goodrich
Acreage: 4.94
3. Common Name: SDG&E ROW
San Diego County Tax APN: 567-011-01, 565-010-12, 565-010 15 & portion of
565-010-18
Current Ownership: SDG&E
Acreage: 9.8 (approx.)
4. Common Name: SD&AE ROW Coronado Branch
San Diego County Tax APN: 567-021-11 and a portion of 565-290-39
Current Ownership: SD&AE
Acreage: 2.3 (approx.)
B. Agency/City Parcels:
1. Common Name: Street Merziotis
San Diego County Tax APN: 565-310-09 & 565-310-25
Current Ownership: Redevelopment Agency of the City of Chula Vista
Acreage: 6.35
2. Common Name: Marina Motor Hotel
San Diego County Tax APN: 567-011-04
Current Ownership: Redevelopment Agency of the City of Chula Vista
Acreage: 1.0
3. Common Name: Cappos
San Diego County Tax APN: 567-010-18
Current Ownership: Redeveloprnent Agency of the City of Chula Vista
Acreage: 2.01
4. Common Name: Shangri La
San Diego County Tax APN: 567-010-19
Current Ownership: Redevelopment Agency of the City of Chula Vista/San Diego
Unified Port District
Acreage: 2.73
Page 3
:)-11
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5. Common Narne: Lagoon Drive Park
San Diego County Tax APN: 567-021-32
Current Ownership: City of Chula Vista
Acreage: 1.14
2.2. Proiect Description:
Unless otherwise approved or required by Agency/City, the proposed Project shall consist of the
following components:
RetaillEntertainment: The entertainment retail center will set the thematic tone and architectural
dialect for the entire project. The architecture will be heavily themed and will be accented with
colors, textures, design elements and landscaping. The buildings are envisioned to surround a
"village square" with a large fountain and bandstand for music or other entertainment (envisioned
during weekends and special events). The grand building on the town square (usually a govemrnent
building or church) is planned to be an entertainment venue with a regional draw. The square will
be surrounded by a variety ofthemed restaurants with open air dining. Retailers that capitalize upon
the cultural flavor of this Project and the San Diego region will be encouraged. The developer will
attempt to attract tenants from Tlaquepaque, Guadalajara, Mexico in an effort to establish a unique
mix of tenants that include Mexican artisans who add cultural flavor. Other entertainment retailers
might include book stores, record stores, and game centers. The retaiUentertainment component will
comprise a total of approximately 163,456 square feet.
Resort Hotel: The hotel will be situated on the western edge of the Project area and will border
along 1620 feet of water frontage. This hospitality component of the Project will be comprised of
450 rooms, three restaurants, and 50,000 square feet of banquet and meeting space (approximately
285,000 total square feet). Each restaurant is planned to be heavily themed with one featuring an
outdoor "on the water" dining experience. The buildings are envisioned to be configured as four
stories over parking similar to the construction method utilized for the Loews Coronado Bay Resort.
The hotel will offer a "Resident and Executive Privilege Program" which will allow the homeowners
and corporate residents within the Project to access the resort amenities, additional services
contemplated include catering or room service, concierge, shuttle service to the airport and
preferential room rates.
Residential: A total of 1,000 multi-family residential units are planned within the project. The
product will be segmented into seven distinctive product types, each offering a separate type of
product, floor plans and models, and square footage. Current plans envision the following: 743
units ofrnulti-family units with densities that range from 20-50 units per acre, and 256 units of high-
nse umts.
The lower density units are planned to range between 2-4 stories. The two highrise towers are
planned to be 16-story buildings. These buildings will be designed to fit the character of the overall
project and will be closely tied to the Resort, it's amenities and facilities.
Page 4
3- /2
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Research and Development: This component will consist of high-quality three story buildings which
will be designed to compliment the resort and retaiVentertainment architecture (approximately
465,350 square feet). The envisioned tenants will include high-tech and research and development
companies which generate high-income employees.
Retail: This component will be a small retail center designed to serve the Project residents and
businesses and will be comprised of uses such as a convenience market, dry cleaners, deli, etc.
(approximately 12,196 square feet).
Park: This component will consist of approximately 8.5 acres dedicated to active park uses, plus a
100' linear open space buffer between the residential component and the Sweetwater Marsh National
Wildlife Refuge.
In addition, the Street Merziotis and Lagoon Drive Park properties will be comprised of compatible
development approved by the Agency/City.
A preliminary site plan and land use chart for the Project is attached hereto as Exhibit B.
Developer acknowledges and agrees that Agency/City may require or impose additional material
obligations on the Project either in the negotiation of a DDA, or in the entitlements process. If
Developer does not agree to any such condition, Developer reserves the right to tenninate this
Agreement and not to proceed with the Project.
3. DUTIES DURING NEGOTIATION PERIOD.
3.1 Developer's Obligations
a. Developer shall comply with all tenns and conditions of the Processing Agreement
between the parties dated concurrently herewith.
b. Within 90 days after the Effective Date, Developer shall provide the Agency/City with
a preliminary Master and Phasing Plan for the entire Project.
c. Within 90 days after the Effective Date, Developer shall provide the Agency/City with
evidence of feasibility for the Resort hotel component of the Project, and any additional
feasibility studies for other Project components determined to be necessary by the
Agency/City.
d. Within 90 days after the Effective Date, Developer shall submit a concept plan for
retaiVentertainment anchor and letters of interest from potential tenants.
e. Within 120 days after the Effective Date, Developer shall provide Agency/City with
requested economic data including, but not limited to, project profonna and cash flow
analysis for each phase,and proposed economic tenns for Agency/City participation, if any.
Upon Developer's request City/Agency will negotiate and enter into a Confidentiality
Agreement with the Developer with respect to financial data Developer identifies as
proprietary.
Page 5
~- /3
-. .-
f. Within 120 days after the Effective Date, Developer shall submit proposed sources of
acquisition financing for the Project.
g. Within 180 days after the Effective Date, the Developer shall submit a site plan for the
development of the Street Merziotis and Lagoon Drive Park sites which will be configured
and incorporate uses to support the overall Project and be subject to review and approval by
the Agency/City.
h. Within 180 days after the Effective Date, the Developer shall provide evidence of
financial sources for the Project's initial phase.
i. Within 180 days after the Effective Date, Developer shall provide the Agency/City with
a detailed Master and Phasing Plan for the entire Project.
j. Developer shall provide for the City's affordable housing requirement in the Project's
residential component.
k. Developer shall work with Agency/City staff to explore and identify methods for
relieving the Agency/City of ongoing operating costs related to the Nature Center.
I. Developer shall work with Agency/City staff to explore the feasibility and opportunities
for siting necessary public facilities within the Project.
m. Throughout the Negotiation Period, the Developer shall make periodic oral and written
progress reports to the Agency/City on all matters requested by the Agency/City.
3.2. Agencv/Citv Obligations.
a. The Agency/City shall provide staffing for the processing of Project entitlements subject
to the terms and conditions of the Processing Agreement.
b. The Agency/City shall coordinate the EIR process.
c. Agency/City shall determine the necessity for, as well as legal and financial feasibility
of and source of funding for the transfer of the Agency/City Property to the Developer.
d. The Agency/City shall work with the Developer to determine all on-site and off-site
public improvements (both traffic and non-traffic) as well as all fees and other exactions
required to implement the Project, and assess the need for a public facilities financing plan.
e. Agency/City staff shall meet with representatives of the Developer to provide
information on required traffic improvements and site design issues.
f. The Agency/City shall assist the Developer in establishing and periodically updating a
schedule of all discretionary and ministerial permits, reviews and approvals required to
implement the Project.
Page 6
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3.2.1 Q!!!y 2f Agencv/Citv Staff and Developer !.Q Negotiate DDA and Present Project !.Q
Agencv/Citv Board
During the term hereof, staff of the Agency/City ("Staff') and Developer shall negotiate diligently
and in good faith the terms and conditions of an agreement ("Disposition and Development
Agreement", or alternatively "DDA") to present to the Agency/City for Agency/City Board review
and consideration ,which DDA shall, among other things, contain and not be inconsistent with, the
terms and conditions set forth herein below.
a. Disposition of the Agencv/Citv Owned Parcels.
The Agency/City shall convey to Developer those parcels of the Property owned or
acquired by the Agency/City, determined to be necessary for the Project, and the
Developer shall acquire such Agency/City parcels on such terms as may be agreed
upon by the Developer and Agency/City. The purchase price, rental and/or other
consideration to be paid by the Agency/City and/or Developer, respectively, under
a negotiated DDA will be established by agreement between the Agency/City and
the Developer. The purchase price, rental and/or other consideration will be based
upon such factors as market conditions, scope of development, cost of development,
risks incurred, estimated or actual profit, estimated or actual rates and charges for
the facilities to be developed, public purpose, and other matters relevant to
establishing the fair market value for the uses permitted to be developed thereon.
b. Developer Acquisition ofPropertv.
The Developer shall own or acquire control of all parcels comprising the Property,
in such a way and at such times as to permit the development of the Project. In the
event after good faith best efforts, Developer has been unable to acquire one or
more parcels necessary for the development of the Project, the Agency/City, after
exercising its own best efforts to voluntarily acquire such parcels, rnay agree to
schedule and deliberate upon the acquisition of all or some of the non-Agency/City
owned parcels in the Property by the exercise of eminent domain. Nothing herein
shall obligate the Agency/City to exercise eminent domain except as it deerns
consistent with the public interest and the requirements of the law. Agency/City
shall retain full discretion to reject the use of eminent domain for any and all
reasons.
c. Development of the Project.
The Developer shall develop the Property with the Project in a form as approved by
the Agency/City Board, or a reasonably similar variant of the Project as approved
Page 7
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by the Agency/City Board in accordance with an agreed upon phasing plan and
schedule. The Project shall, without limitation:
(I) Comply with any and all applicable, federal, state and local laws,
regulations, standards and policies including the standards for
commercial developrnent in the Bayfront Redevelopment Project
Area.
(2) Incorporate a design that minimizes, to the extent possible, the
traffic circulation and parking problems that the Project can be
expected to produce.
(3) Create a Project design that preserves and enhances the view
corridors from and adjacent to the Project site.
(4) Provide a strong connection between the retail/entertainment and
high-rise residential components of the Project.
(5) Provide for diversity of product and signature elements within the
Project.
(6) Provide for retailers and restaurants in retail/entertainment
component which are unique within the region and seek to secure
an entertainment venue which draws from outside the area.
(7) Provide for exceptional architectural theme and design which
establishes a strong identity for the Project.
(8) Provide for a luxury destination resort hotel operator.
(9) Include pedestrian linkage and other circulation enhancements,
including the Bayshore Bikeway, between key project components,
between the Project and the MTDB Trolley Station, and between
the Project and other Bayfront properties; provided that Developer
may pursue a method for reimbursement such as an assessment
district, reimbursement district, or other arrangement to partially
reimburse Developer for the cost of improvements Developer
installs that substantially benefit future third party development.
(10) Provide for development of the Resort hotel component within the
early phases of the overall development. The remaining Project's
schedule shall be prepared jointly with the Agency/City Staff. It
shall include identifiable developmental milestones, including but
not limited to a timetable for property acquisition, for the
relocation of existing third party owners and tenants on the
Agency/City owned parcels, compliance with CEQA requirements,
Page 8
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r 11
site and building design, land use issues, pertUit processing, and
construction of Project.
(11) Provide for capital improvements to the Sweetwater Marsh
National Wildlife Refuge and enhancement of it' s interpretive and
public access features. Such enhancements shall be done in a
manner acceptable to the City and other governmental bodies with
jurisdiction. The Developer, however, may be entitled to cost
reimbursement, or funding assistance by appropriate government
agencies, conservation groups or charitable organizations which
shall be jointly pursued by Developer and Agency/City.
(12) Provide for research industrial, office, business headquarters, and
high-tech manufacturing users consistent with the City Economic
Development strategies. Agency/City shall consider
implementation of an incentive zone in order to attract quality high
tech and R&D businesses within the project area.
d. Securitv for Developer's Performance.
Developer shall provide security for its perfortnance under the DDA. Security measures
may include one or more of the following: (1) a conveyance of a conditionally defeasible
fee title with right of reverter; (2) a perfortnance trust deed; and/or (3) guarantees, bonds,
letters of credit, cash deposits or other similar instruments.
Any such measures shall take into consideration any Project Lender's need to be secured
and, prior to Agency/City's exercise of its enforcement rights, shall give such Lender
adequate notice and an opportunity to cure any Developer defaults.
e. Agencv/Citv shall have Approval Rights for certain Operators, Users. Tenants.
Agency/City shall have reasonable approval rights for operators, uses, and/or tenants in the
Project. Specific standards and the process for approval shall be negotiated by the parties.
f. Economic Risk.
Developer shall absorb all economic risks associated with the completion of the Project
except as herein set forth. It is the intention of the parties that Developer shall pay the full
cost of all improvements to be constructed On Property including the cost of all nortnal City
fees and permits applicable to completion of the proposed improvements. The parties agree
and acknowledge that it is the intent of the parties that all Project costs, including, but not
limited to, acquisition of the Property, relocation costs, design, construction and
development of all on-site and off-site public and private improvements, appraisal fees,
environmental and other consultant fees, whether incurred by the Developer, or the
Agency/City, shall be the responsibility of the Developer with the exception of any cost
subsidy negotiated by the parties pursuant to Section 3.2.3 hereof, and included as a term
of an approved DDA.
Page 9
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g. Approval Qf Lender.
Agency/City shall have reasonable approval rights over the construction and permanent
lender for the Project. Specific standards and the process for obtaining Agency/City
approval shall be negotiated by the parties.
h. Restrictions Against Discrimination.
The DDA shall contain the constraints against discrimination in the form and rnanner
required by state redevelopment law.
i. Assignment.
Developer's rights and obligations under the DDA shall not be assignable without
Agency/City approval. Specific standards and the process for obtaining Agency/City
approval shall be negotiated by the parties.
j. Indemnitv.
Developer shall indemnify, protect, defend, and hold harmless Agency/City against any and
all challengers to the DDA, the Project, the related entitlements, and any other related
actions or omissions by Developer, Developer's agents or third parties, related to or
occurring on the Property and the Project except to the extent caused by Agency/City's sole
negligence or sole willful misconduct.
k. Restrictions on Speculation and Excess Profit Taking.
In accordance with California Health and Safety Code Section 33437, the DDA shall include
appropriate covenants and restrictions that the Agency/City believes necessary to prevent
speculation or excess profit taking.
1. Operating Covenants and Restrictions.
The parties shall negotiate appropriate operating covenants and restrictions designed to
assure the long-term existence and success of the Project.
Page 10
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- . -.
3.2.2 No Pre-Commitment
The inclusion of the specific terms set forth above shall not be deemed to be acceptance of such
items by either party until such time as the Agency/City may approve, and the parties execute the
Disposition and Development Agreement.
3.2.3. Right!Q Negotiate for Cost Subsidv:
Upon the terms of this Section, Agency/City agrees to meet and confer, and to negotiate in good
faith with Developer, the provision, in One form or another, to Developer of a subsidy which may
be necessary or appropriate to the redevelopment of the Property into the Project in order for
Developer to achieve a reasonable rate of return on its investment from pursuing the Project. The
reasonableness ofthe rate of return shall be determined by giving consideration to industry-expected
rates of returns on projects of similiar scale and scope. The parties further agree that both parties
shall use the Initial Negotiation Period to estimate total project costs in order to determine the
economic feasibility of the proposed Project. Prior to requesting a cost subsidy from the
Agency/City, Developer shall demonstrate, in a commercially-acceptable manner approved by
Agency/City, the facts and circumstances that justify the duty to meet and confer for a cost subsidy.
As a condition to commencement of such negotiations, Developer shall deliver to Agency/City their
"pro-forma" determination of return on investment and any and all other Project information
reasonably requested by Agency/City.
4, RETENTION OF DISCRETION TO ApPROVE THE PROJECT AND DDA:
It is anticipated that the Project and the DDA providing for its implementation will be presented to
Agency/City Board for approval. The Parties understand that the Agency/City is reserving the right to
exercise its discretion as to all matters which it is, by law, entitled or required to exercise its discretion,
including, but not limited to the following:
A. Approval Qy the Agencv/Citv 2f the final Proiect 1!§. contained ill the DDA. The parties
understand that the Agency/City has the complete and unfettered discretion to reject the
DDA without explanation or cause. The risk of loss of all processing, design and
developmental costs incurred by the Developer prior to DDA approval shall be absorbed
entirely by Developer except unless expressly assumed, by the terms of this agreement, by
the Agency/City.
B. Review and approval Qy the Agencv/Citv of all discretionary findings and conclusions. The
duty of the Agency/City to dispose of the parcels comprising the Property shall be
conditioned upon the successful review and approval of all necessary findings and
conclusions which the Agency/City board is required to make, including all necessary
findings and determinations required under CEQA, state and local land use provisions and
the Redevelopment Act. As to any matter which the Agency/City may be required to
exercise its unfettered discretion in advancing the Project to completion, nothing herein, nor
to be contained in the DDA shall obligate the Agency/City to exercise its discretion in any
particular manner, and upon doing so, it shall not be deemed to constitute a breach of
Agency/City's duties under this agreement.
Page 11
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5. TERMINATION RIGHTS:
Notwithstanding the nominal Initial or Extended Negotiating Periods hereinabove set forth, either party may
terminate this Agreement if the other party has materially defaulted in its obligations herein set forth, and
the terminating party has provided defaulting party with written notification of such determination, and the
defaulting party has refused to cure same. The written notification shall set forth the nature of the actions
required to cure such default if curable. Defaulting party shall have 30 days from the date of the written
notification to cure such default. If such default is not cured within the 3D-day, the termination shall be
deemed effective. For purposes of this paragraph, the parties hereby acknowledge that time is of the essence.
Each party shall also have the right to terminate this Agreement in the event that the Project is determined
to be infeasible, or that the parties reach an impasse in their negotiation of the DDA which cannot be
resolved after good faith efforts. An uncured material default by either party under the Processing
Agreement shall also be grounds for termination of this Agreement.
6. ADDITIONAL TERMS AND OBLIGATIONS:
6.1 No Competing Development:
Developer shall not commence the construction of any parcels comprising the Property owned or
controlled by the Developer until this Agreement has been properly terminated either as a result of
a substantial breach by the Agency/City or expiration according to its terms despite the exercise of
good faith and best efforts to do so.
6.2. Other Enforcement Mechanism:
In addition to any and all other remedies the Agency/City may have to enforce the terms of this
Agreement, the Agency/City is hereby authorized to withhold building permits for construction if
Developer is in violation, breach or default of the terms of this agreement. The parties agree that
the Agency/City's decision, if exercised, to withhold building permits under the provisions of this
section, may be reviewed by the proper Superior Court expeditiously by application for writ of
mandate.
6.3. Consequences of Declaration of Impasse:
If Developer shall have acquired any of the parcels comprising the Property not owned by the
Developer as of the Effective Date hereof, either by voluntary acquisition from the property owner,
or from the Agency/City, and this agreement is properly terminated without agreement as to a
Disposition and Development Agreement, the Agency/City shall have the option, notice of exercise
of which is to be given within 120 days after receipt of written notice of termination, to acquire such
parcels for the cost incurred by Developer in its acquisition, plus interest at 9% per annum (or
Developer's actual cost offunds, whichever is less) prorated from the date of Developer" acquisition
to date of transfer of fee title to Agency/City.
6.4. Developer's Findings. Determinations. Studies, Reports. and Financing:
As requested by the Agency/City, from time to time, the Developer agrees to make periodic oral
progress reports and periodic written reports advising the Agency/City on all matters and all studies
Page 12
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being made to the extent that they do not include confidential matters. All such matters shall be
deemed to be the joint property of Agency/City and Developer, and may be used by either party
without reimbursement to the other.
6.5. Agencv/Citv Public Hearing:
If the negotiations culminate in a preliminary agreement between the Staff and Developer as to the
terms for a Disposition and Development Agreement ("Preliminary Agreement"), upon its execution
by Developer, such an agreement shall be deemed to be an irrevocable offer to the Agency/City to
contract on the terms of the Preliminary Agreement for a period therein provided for, but at least 30
days, but shall not become obligatory upon the Agency/City or become effective until after the
agreement has been considered and approved by the Agency/City after such public hearings and
such procedures as are prescribed by law.
6.6. Real Estate Commissions:
Neither the Agency/City or Developer shall be liable for any real estate commission or brokerage
fees which may arise herefrom. The Agency/City and Developer represent that they have engaged
no broker, agent or finder separately in connection with this transaction and each party agrees to
indeminify, hold harmless and defend the other against claims for commissions or fees made
through such party.
6.7. Each Partv !Q Bear ill. Own Cost
Each party shall bear its own costs incurred in connection with the negotiation of a DDA, and the
implernentation of this Agreement, except as otherwise expressly provided herein or expressly
agreed in writing.
7. No PRE-COMMITMENT
By its execution of this Agreement, the Agency/City is not committing itself or agreeing to undertake any
activity requiring the subsequent exercise of discretion by the Agency/City, or any department thereof
including, but not limited to, the approval and execution of a Disposition and Development Agreement; the
proposal, amendment, or approval of any land use regulation governing the Property; the provision of
financial assistance for the development of any public or private interest in real property; the authorization
or obligation to use the Agency/City's eminent domain authority; or, any other such activity.
This Agreement does not constitute a disposition of property or exercise of control over property by the
Agency/City and does not require a public hearing. Agency/City execution of this agreernent is merely an
agreement to enter into a period of exclusive negotiations according to the terms hereof, reserving final
discretion and approval by the Agency/City as to any proposed Disposition and Development Agreement
and all proceedings and decisions in connection therewith.
Page 13
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8. GENERAL PROVISIONS
8.1 Address for Notice
Developer's Address for Notice:
Tuchscher Development Enterprises,Inc.
3130 Bonita Road, Suite 200
Chula Vista, California 91910
Attn: William Tuchscher
Telephone: (619) 691-1800
Fax: (619) 691-9854
Agency's Address for Notice:
Redevelopment Agency of the City of ChuJa Vista
Community Development Department
276 Fourth Avenue
ChuJa Vista, CA 91910
Attn: Chris Salomone, Community Development Director
Debra D. Anderson, Principal Community Development Specialist
Telephone: (619) 691-5047
Fax: (619) 476-5310
Copy to: Glen Googins, Assistant City Attorney
9. AUTHORITY
Each party represents that it has full right, power and authority to execute this Agreement and to perform
its obligations hereunder, without the need for any further action under its governing instruments, and the
parties executing this Agreement on the behalf of such party are duly authorized agents with authority to do
so.
10. COUNTERPARTS
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.
11. ENTIRE AGREEMENT
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 subject matter contained herein. All
prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or
written, are superseded.
Page 14
3~1-2
12. 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.
13. No THIRD PARTY BENEFICIARIES.
There are no other parties to this Agreement, express or implied, direct or indirect. The Agency/City and
Developer acknowledge that it is not their intent to create any third party beneficiaries to this Agreement.
(Next Page is Signature Page)
Page 15
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_. --
Signature Page
to
Exclusive Negotiating Agreement
Subject to Owner Participation Rights
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth above,
thereby indicating the consent of their principals.
REDEVELOPMENT AGENCY OF THE TUCHSCHER DEVELOPMENT
CITY OF CHULA VISTA ENTERPRISES, INC.,
A California Corporation
By: By:
Shirley Horton William C. Tuchscher, II
Chair President
Date: Date:
CITY OF CHULA VISTA
By:
Shirley Horton
Mayor
Date:
Approved as to form:
By:
John Kaheny
Agency Attorney/City Attorney
Date:
Approved as to Content:
By:
Chris Salomone
Executive Secretary/Community Development Director
Date:
Page 16
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JOINT REDEVELOPMENT AGENCY/COUNCIL AGENDA STATEMENT
Item~
Meeting Date 11/10/98
ITEM TITLE: AGENCY RESOLUTION l~o7
COUNCIL RESOLUTION 11f~~ APPROVING A PROJECT STAFFING/
CONSULTANT AND PRDCESSING AGREEMENT WITH TUCHSCHER DEVELDPMENT
ENTERPRISES, INC. FOR DEVELOPMENT OF A MIXED USE PROJECT ON THE
MIDBAYFRONT PROPERTY
SUBMITTED BY: Cv) I
Community Development Director
REVIEWED BY: ',oc",;.. mre""])j2. " ~ (4/5ths Vote: Yes- NolO
BACKGROUND:
Representatives of Tuchscher Development Enterprises, Inc., ("Developer") are proposing to develop the
Midbayfront property with a 2.7 million sq. ft. mixed use project comprised of resort, multi-family residential,
R&O/office, entertainment/retail, and active park and open space. The proposed project will require a number of
entitlements, permits and approvals including, but not limited to, a General Plan, Specific Plan and Local Coastal
Program amendment, an Environmental Impact Report, and a Tentative and Final Map. The processing of these
entitlements will require significant staff resources and the hiring of outside consultants. The purpose of this
Project Staffing/Consultant and Processing Agreement ("Processing Agreement") is to provide the Developer with
assigned professional staff and consultants in order to process the project in a timely manner and to ensure that
the Agency/City is reimbursed for expenses incurred in processing the Developer's applications.
The Agency/City will use good faith efforts to provide processing services related to the Developer's application
in a timely manner, although the Agency/City is not obligated to complete the entitlements within the estimated
time frame in the Processing Agreement. In addition, the Agency/City is under no obligation to issue the
entitlements/permits that are subject to this Processing Agreement. Staff recommends approval of the attached
Processing Agreement (see Attachment 1).
RECOMMENDATION: That the Agency/City adopt the resolution approving the Project Staffing/Consultant
and Processing Agreement.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
4-(
_. ..
Page 2,Item 3
Meeting Date 11/10/98
DISCUSSION:
1. PROPOSEO PROJECT:
The Developer's proposed project is located west of Interstate 5 on what is commonly known as the
"Midbayfront" (see Exhibit A in Attachment 1 I. The proposed mixed-use development consists of resort, multi-
family, R&D/office, retail/entertainment and park uses. A preliminary site plan and land use breakdown are
attached (see Attachment 21.
2. PROCESSING AGREEMENT:
As stated above, the purpose of the Processing Agreement is to provide the Developer with assigned professional
staff and consultants to process the necessary entitlements and to ensure that the Agency/City is reimbursed for
the non-Community Development Department staff time and the consultant expenses incurred at full-cost
recovery. The Processing Agreement does not obligate the Agency/City Council to any discretionary decisions
related to this project. The Developer understands that the Project Entitlements are discretionary actions and that
this Agreement in no way is a basis for project approval.
A. Project Entitlements:
The Developer's project will require a number of entitlements, permits and approvals including, but not
limited to those listed below:
11 General Plan Amendment;
21 Specific Plan Amendment;
31 Local Coastal Program Amendment;
4) Environmental Impact Report;
51 Development Agreement;
61 Tentative Subdivision Map; and
7) Final Map.
B. Project Schedule:
The estimated project schedule is 15 months (see Exhibit B in Attachment 1). The Agency/City and
Developer acknowledge that this is only an estimate and is subject to change, although both parties agree
to use their reasonable best efforts to process the project in a timely manner.
4-d-....-
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Page 3, Item 3
Meeting Date 11/10/98
C. Anticipated Staffing/Consultant Needs:
The primary staff assigned to this project are from Community Development, although a number of
individuals representing other Departments will also be involved. It is anticipated that non.Community
Development Department staff time will be significantly reduced due to the hiring of consultants to
process the entitlements. The consultant needs include environmental, planning, engineering and legal
(see Exhibit C, in Attachment 1). The estimated cost for the consultants and non-Community
Development Department staff time is $450,000.
D. Developer Obligations:
The Developer is required to submit a deposit of $80,000 to the Agency/City from which non-Community
Development Department staff time and consultant charges will be drawn. The Developer will be required
to replenish the deposit account on a regular basis. The Developer agrees to use its best efforts to
process the project in a timely manner.
E. City/Agency Obligations:
The Agency/City will commit staff resources and hire consultants to process the necessary entitlements
for the Developer's project. The City/Agency will use best faith efforts to meet the time frames described
in the Project Schedule, although it will not be liable if the time frames are not met.
FISCAL IMPACT:
During the duration of the entitlement process the fiscal impact will include Community Development Department
staff time. All non-Community Development Department staff time and consultants necessary for processing the
project will be reimbursed by the Developer.
100M H,IHOMEICOMMOEVISTAFF.REPIO9.15.98Imld." [N",mb" 5, 199819,08,mll
4-.j
1 1i
AGENCY RESOLUTION NO. I b 0 7
and
COUNCIL RESOLUTION NO. ¡q .z..~ð"
JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
APPROVING A PROJECT STAFFING/CONSULTANT AND
PROCESSING AGREEMENT WITH TUCHSCHER DEVELOPMENT
ENTERPRISES, INC. FOR A MIXED USE DEVELOPMENT ON THE
MIDBAYFRONT PROPERTY
WHEREAS, representatives of Tuchscher Development Enterprises, Inc.
("Developer") are proposing to develop the Midbayfront property with a 2.7 million square foot
mixed use project comprised of resort, multi-family residential, R&D/office, entertainment/retail,
and active park and open space; and
WHEREAS, the proposed project will require a number of entitlements, permits and
approvals including, but not limited to, a General Plan, Specific Plan and Local Coastal Program
amendment, an Environmental Impact Report, and a Tentative Map and Final Map; and
WHEREAS, the processing of these entitlements will require significant staff
resources and hiring of outside consultants; and
WHEREAS, the purpose of the Project Staffing/Consultant and Processing
Agreement is to provide the Developer with assigned professional staff and consultants in order
to process the project in a timely manner and to ensure that the Agency/City is reimbursed for
expenses incurred in processing the Developer's applications.
NOW, THEREFORE, BE IT RESOLVED the City Council and Redevelopment Agency of the
City of Chula Vista do hereby approve the Project Staffing/Consultant and Processing Agreement
with Tuchscher Development Enterprises, Inc. in the form presented and authorize and direct the
Mayor/Chair to execute same.
Presented by Approved as to form by
C"~;';. ~~ ~
Director of Community Development
IIDDAI H,IHOMElCOMMDEVIRESOSlmidb'y2 (No,"mb" 5. 1998110A5,mll
<1 - <f
ATTACHMENT 1
TUCHSCHER DEVELOPMENT ENTERPRISES, INC.
PROJECT STAFFING/CONSULTANT AND PROCESSING AGREEMENT
The City of Chula Vista and Tuchscher Development Enterprises, Inc have entered into this
Agreement ("Agreement"), effective -' 1998 ("Effective Date"). This Agreement is made and entered
into in respect to the following recitals and in consideration of the following covenants and conditions:
1.0 THE AGREEMENT
1.1 The City as Party. The City of Chula Vista ("the City") is a chartered municipal
corporation of the State of California. The City's planning area consists of the incorporated area of the City,
the existing sphere of influence and unincorporated areas with a significant planning relationship to the City.
1.2 Developer as Party. Tuchscher Development Enterprises, Inc. ("Developer") is a California
Limited Liability Company. Developer represents that the signatory of this Agreement is authorized to
execute this Agreement on behalf of these entities.
1.3 No Third Party Beneficiaries. There are no other parties to this Agreement, express or
implied, direct or indirect. The City and Developer acknowledge that it is not their intent to create any third
party beneficiaries to this Agreement.
1.4 Purpose of Agreement. The purpose of this Agreement is to provide the Developer with
assigned professional staff and consultants to work on its project based upon Developer's representation that
such staff and consultants will be required for the tenn of this Agreement in order to process Developer's
project.
2.0 MIDBAYFRONTPROPERTY
2.1 Developer is currently negotiating to acquire the primary parcels within and is proposing a
master-planned development for certain real property located in the City of Chula Vista, California,
consisting of approximately 127 acres, graphically shown on Exhibit A, which is attached and incorporated
by this reference (the "Property").
2.2 The City has adopted in its General Plan land use designations and policies which address
the future development of the Property. In addition, the City has adopted a Local Coastal Prograrn and a
Specific Plan for the Property, which together comprise the development project commonly known as the
"Midbayfront Project".
3.0 PROJECT ENTITLEMENTS
3.1 Project Entitlements. The entitlements, permits and approvals for the Midbayfront Project
that Developer shall submit to the City for processing (hereinafter referred to collectively as "Project
Entitlements"), include, but are not limited, to the following:
1
4-~
(a) General Plan Amendment;
(b) Local Coastal Program Amendment;
(c) Specific Plan Amendment;
(d) Tentative Subdivision map for the Midbayfront; and
(e) Midbayfront Final Map processing.
3.2 Environmental Review. The Project Entitlements will require further environmental
documentation pursuant to the requirements of the California Environmental Quality Act ("CEQA") (PUB.
RES. CODE §§21000, et seq.); the CEQA Guidelines (14 CAL. CODE REGS. §§15000, et seq.); and the
City's Environmental Review Procedures. Subject to Developer's funding obligations hereunder, the City
will: (a) undertake the preparation, consideration and certification of all required environmental documents
in the manner required by law; (b) follow all legally prescribed proceedings for the processing of such
environmental documents, including public notices and hearings; and (c) exercise its independent judgment
relative to such documents. For purposes of this Agreement, environmental documents are included within
the definition of "Project Entitlements."
3.3 No Obligation to Approve. Developer understands and agrees that future decisions of the
City Council on the Project Entitlements described in this Agreement are discretionary actions, and that the
City may not enter into an agreement to obligate the City Council to exercise its discretion in a particular
manner or for a particular result. This Agreement does not, therefore, in any way create a contractual, legal
or equitable obligation or commitment by the City or the City Council to approve the Project Entitlements
described in this Agreement.
4.0 PROJECT SCHEDULE
4.1 Exhibit "B". The City will process the Project Entitlements as described in the "Project
Schedule", attached as Exhibit "B" and will act with reasonable diligence to meet all of the time frames
described on the Project Schedule. Notwithstanding the foregoing, the City and Developer acknowledge that
the time frames set forth in the Project Schedule are only estimates and may be subject to change from time
to time. City shall have no liability to Developer for the failure to process Developer's Project Entitlements,
or for failure to process the same within the tirne frames estimated in the Project Schedule. Both parties
agree to use their reasonable best efforts to process the Project Entitlements in a timely manner.
5.0 PROJECT STAFFING/CONSULTANTS
5.1 Retention and Assignment of Staff/Consultants
5.1.1 Developer's Representation. Developer represents and warrants that they will need
the services of City staff/consultants for the tertn of this Agreement. Developer acknowledges that the City,
based upon this representation, has budgeted and allocated for specific staff time and will be hiring
consultants to process the Project Entitlements for the tertn of this Agreement. An estimate of consultants
needed is reflected in Exhibit C.
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5.1.2 Project Staff/Consultants. The City intends to hire consultants and/or assign staff,
including, but not limited to, planner(s), engineer(s) attorney(s) and environmental planner(s)) for the
purpose of processing the Project Entitlements ("Project Staff'). Project Staff consists of existing and newly
hired Pennanent Staff, and Consultants. Permanent Staff are full time City employees, while Consultants
are independent contractors working for the City. Developer understands that it has no right to select any
of the staff and/or Consultants who will process the Project Entitlements. The Consultant Needs Estimate,
as shown on Exhibit "C," describes the Consultants anticipated to work On the Project Entitlements.
Developer agrees that Exhibit C accurately reflects the Developer's minimum staffing/consultant needs with
respect to the processing of the Project Entitlements.
5.1.3 Hiring Responsibility. Notwithstanding any provision of this Agreement, the City
is solely and exclusively responsible for the hiring and/or assigning of the Project Staff/Consultants. City
shall notify Developer in advance of Consultant hirings, however, Developer's involvement (if any) shall be
at the City's sole discretion. The City shall retain full rights to supervise the work of those staff/consultants
to ensure that they exercise full and complete independence from Developer in connection with work
perfonned on the Project Entitlements. The City shall retain full rights to discipline and tenninate Project
Staff/Consultants as the City deerns appropriate.
5.1.4 Access to Project Staff. The City shall endeavor to take all reasonable steps necessary
to ensure that Developer has regular and continuous access to the Project Staff/Consultants during the
processing of the Project Entitlements. To implernent this provision, the Project Staff may schedule regular
meetings with Developer and others to facilitate the processing of the Project Entitlements.
6.0 COSTS AND PAYMENT
6.1 Deposit. Developer shall place a deposit with the City in the amountof$80,000 ("Deposit"),
within 30 days after the Effective Date, from which the City may withdraw, pursuant to the tenus of this
Agreement, the amount owed to the City by the Developer for processing the Project Entitlements.
Developer shall maintain and continue to replenish said Deposit with the City during the tenn of this
Agreement in the manner specified in paragraph 6.6, herein. Upon the termination of this Agreement, if any
portion of the Deposit remains, the City shall return the Deposit balance to Developer without interest
thereon. In no event shall the account be allowed to have less than one half of the original deposit amount
as specified in paragraph 6.6. Developer agrees that the City may use the Deposit to pay the City any
arnounts due the City pursuant to the tenus of this Agreement.
6.2 Payment for Consultants/Staff. Developer shall be responsible for reimbursing the City for
the following Project Entitlernent costs: (a) amounts owed under contracts with Consultants; and (b) Project
Staff time billed at the City's then applicable full-cost recovery rate system. Notwithstanding the foregoing,
Developer shall not be responsible for any Project Staff time provided by Community Development
Department staff. An estimate of Developer's costs under this Section are attached hereto as Exhibit C. This
estimate is for informational purposes only and shall not limit Developer's liability for Project Entitlernent
processing costs hereunder.
6.3 Deposit Withdrawal. At the end of each month, the City shall detennine the amount owed
by the Developer for the Consultant's and Project Staffs work On the Project Entitlements for that rnonth.
Within fifteen (15) days thereafter the City shall withdraw from the Deposit said amount due the City and
shall send the Developer a billing statement that shows the expenses incurred by the City and the Consultants
and the amount withdrawn from the Deposit. In the event the deposit amount is insufficient to cover the fees
3
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payable for Project Staff time and/or Consultant expenses, Developer shall be responsible for the payment
of the balance.
6.4 Billing Statements. Each monthly billing statement shall be accompanied by the Consultants'
bills. Each monthly billing statement shall identify the services performed, the time spent on each item, the
specific costs incurred, the amount withdrawn from the Deposit, and the Deposit balance.
6.5 No Application Fees. Because of the reimbursement by the Developer for Project
Staff/Consultant costs required for Project Entitlernent processing pursuant to the terms and conditions of
this Agreement, the City will not require Developer to pay any of the City's application fees associated with
the processing of the Project Entitlements and environmental documents described in Section 3.0 herein.
The foregoing is related only to those application fees related to processing the Project's entitlements and
does not include fees related to the construction of the Project such as Building Permit fees, Sewer fees,
Development Impact fees, etc.
6.6 Replenish Deposit. Developer shall replenish the Deposit to the initial balance within 15
days of being notified by the City that the Deposit has decreased to half of the total amount of the initial
Deposit set forth in Section 6.1.
6.7 Disputes. In the event the Developer has a dispute with the City over the billing, Developer
shall notify the City in writing describing Developer's objections to such monthly billing statement(s). If the
amount withdrawn from the Deposit for any given month is determined to be incorrect, the City shall deposit
the amount owed the Developer into the Deposit within fifteen days of such determination.
6.8 Suspend Processing. The City shall have the right to suspend processing of the Project
Entitlements in the event that Developer fails to maintain the Deposit as specified in this Agreement.
7.0 TERM OF AGREEMENT, TERMINATION RIGHTS AND DEFAULT
7.1 Effective Date. This Agreement shall become effective on the Effective date identified
above and, unless earlier terminated pursuant to the terms of this Agreement, shall continue in effect until
15 months after the Effective Date or when the processing of the Project Entitlements have been completed.
In the event the parties determine that a longer period is necessary to complete processing of the Project
Entitlernents, the term of the Agreement may be extended by the further written agreement of the parties.
7.2 City's Right to Terminate. Notwithstanding the term of this Agreement as provided in
Section 7.1, the City shall have the unilateral right to terminate this Agreement at any time for any reason
upon thirty (30) days written notice to Developer provided however should the City terminate this Agreernent
pursuant to this paragraph, the Developer shall not be obligated to pay the amounts required by Section 7.3
below.
7.3 Cessation of Work. In the event that the processing of the Project Entitlements is suspended
or stopped for any reason, except as provided by paragraph 7.2, and when such suspension or cessation is
outside of the Developer's control, such that work is not required by the Project Staff ("Cessation of Work"),
Developer agrees that the City may terminate this Agreement and the Developer shall pay for all Consultant
expenses incurred to that date, as set forth in Section 7.3.1, from the Developer of such Cessation of Work,
or from the date the City has determined that a Cessation of Work has occurred as described in Section 7.3.2.
4
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7.3.1 Written Notification. Developer shall provide immediate written notification to the
City if Cessation of Work on the Project Entitlements is about to occur. Upon receipt of said notice, the City
will require payment of Consultant fees and Project Staff-time incurred to the date of Cessation of Work.
7.3.2 No Notice. In the instance said written notification is not provided, Developer shall
pay Consultant fees and Project Staff-time incurred to the date the City has detennined in good faith that
a Cessation of Work has occurred. The City shall notify the Developer in writing of the City's detennination
and the reasons for such detennination.
8.0 OTHER PROVISIONS
8.1 Integrated Agreement
This Agreement constitutes the final agreement between the parties and supersedes all prior
oral or written negotiations, discussions, communications, promises, covenants, understandings or
representations between the City and Developer regarding the subject of this Agreement. Notwithstanding
the foregoing, the parties acknowledge that the provisions of any other mutual written agreements shall
remain in full force and effect.
8.2 Written Modifications and Amendments
This Agreement may not be modified or amended except by a writing duly executed by both
parties to this Agreement.
8.3 Construction and Interpretation Of The Agreement
Both parties to this Agreement acknowledge that they have been represented by counsel in
respect to the negotiation and drafting of this Agreement, and that no provision of this Agreement shall be
construed or interpreted by reference to the extent to which either party participated in the drafting of this
Agreement, or any part thereof.
8.4 Notices
8.4.1 All notices, billing statements, letters or any other documents required or delivered
in accordance with, or with respect to this Agreement, shall be made or contemporaneously confirmed in
writing and shall be personally delivered or deposited in the United States mail, addressed as follows:
To the City of Chula Vista:
Director of Community Development
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
copv to:
Glen Googins
Assistant City Attorney
5
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City of Chula Vista
276 Fourth Avenue
ChuJa Vista, CA 91910
(619) 691-5037
Tuchscher Development Enterprises, Inc.:
William Tuchscher
Tuchscher Development Enterprises, Inc.
3130 Bonita Road, Suite 200
Chula Vista, California 91910
If written notices under this Agreement are delivered by depositing them in the United States mails,
they shall be deemed to have been received by the other party on the fifth (5th) working day following the
day on which they were mailed.
8.4.2 Either party may change the address to which notice is to be given under this
Agreement (Section 8.4.1) by delivery of a written notice to the other party specifying the new notice address
and referencing this Section.
8.5 No Waiver of Any Default
No waiver of any default by any party to this Agreement shall be implied from any omission
by any other party to take any action in respect of such default. No such waiver shall be effective unless
expressly evidenced by a writing duly executed by the party waiving the default. No waiver of any default
shall be deemed to be a waiver of any other or subsequent default.
8.6 Attorneys' Fees
In any action or proceeding arising under this Agreement between the parties, or to enforce
the provisions of this Agreement, each of the parties shall bear its own attorneys' fees and costs.
8.7 Interpretation and Governing Law
This Agreement and any dispute arising hereunder shall be governed and interpreted in
accordance with the laws of the State of California.
8.8 No Third Party Beneficiaries
The only parties to this Agreement are the City and Developer. There are no third party
beneficiaries, and this Agreement is not intended, and shall not be construed, to benefit or be enforceable
by any other person whatsoever.
8.9 Hold Harmless
Except as provided in 8.6, Developer shall defend, indemnify and hold harmless the City,
its elected and appointed officers and ernployees, from and against any claims, suits, actions or proceedings,
judicial or administrative, for writs, orders, injunction or other relief, damages, liability, cost and expense
6
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(including without limitation attorneys' fees) arising out of the provisions of this Agreement and the City's
actions in processing or issuing Developer's permits, or in exercising any discretion related thereto including,
but not limited to, the giving of proper environmental review, the holding of public hearings, the extension
of due process rights, except only for those claims, suits, actions or proceedings arising from the sole
negligence of the City, its officers or employees. Developer's indemnification shall include any and all costs,
expenses, attorneys' fees and liability incurred by the City, its officers, agents or employees in defending
against such claims, whether the same proceed to judgment or not. Further, Developer, at its own expense,
shall, upon written request by the City, defend any such suit or action brought against the City, its officers,
agents or employees. Developer's indemnification of City shall not be limited by any prior or subsequent
declaration by Developer. At its sole discretion, the City may participate, at its own expense, in the defense
of any such action, but such participation shall not relieve Developer of any obligation imposed by this
Agreement.
8.10 Agreement Executed In Counterparts
So that each of the parties may have an executed original of this Agreement, this Agreement
may be executed in counterparts, all of which shall constitute a single Agreement.
8.11 Agreement Binding Upon Successors
This Agreement shall be binding upon and inure to the benefit of the successors, assigns and
interests of the parties as to any or all of the Property until released by the mutual consent of the parties.
8.12 Exhibits
All exhibits attached hereto and referred to herein are incorporated as a part of this
Agreernent.
(Next Page is Signature Page)
4-(/
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PROJECT STAFFING/CONSULTANT AND PROCESSING AGREEMENT
SIGNATURE PAGE:
CITY OF CHULA VISTA
By:
Mayor
Date:
Tuchscher Development Enterprises, Inc.
A California Corporation
By:
William C. Tuchscher, II
President
Date:
APPROVED AS TO FORM:
By:
John M. Kaheny
City Attorney
Date:
H.\Hom,""'d'~o"\mdbf,p'
4-1:.2-
8
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EXHIBITS TO AGREEMENT
Exhibit A: Property Location Map
Exhibit B: Project Schedule
Exhibit C: Consultant Needs Estimate
Final Draft 10/20/98
4-(3
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- PROPOSED PROJECT BOUNDARY Sheet 1 of 2
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Redevelopment Areas . z
Area 12118190
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EXHIBIT C
Staffing/Consultant Needs Estimate
Environmental Impact Report
(including but not limited to
traffic, soils, noice etc.): $150,000
General Plan/Specific Plan/
Local Coastal Program Amendment: $125,000
Non-Community Development
Department Staff Reimbursement: $50,000
Engineering: $75,000
Legal: $50.000
Estimated Total Cost: $450,000
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CRYSTAL BAY
Project Elements
Land Use Site Site Units Bldg. Area Coverage/
Acres Sa. Ft. SQ. Ft. FAR
RetailÆntertainment 10.8 470,448 163,456 34.7%
Hospitality 10 435,600 450 297,500 68.3%
Residential
High Rise 3.2 139,392 256 480,000 3.44 FAR
Multi-Family (N-l) 3.8 165,528 190 287,200 50/AC
Multi-Family (N-2) 3.8 165,528 190 287,200 50/AC
Multi-Family (1) 8 348,480 160 272,000 20/AC
Multi-Family (D) 2.9 126,324 101 171,700 35/AC
Multi-Family (G) 2.9 126,324 102 188,700 35/AC
Convenience Retail 1.12 48,787 12,196 25.0%
R&D 27.61 1,202,692 474,933 39.5%
Park 8.47 368,953
Open Space
Total 82.6 3,598,056 2,656,360
Pointe Builders 4-(6
Revised: September 8, 1998
MD:MB:P:ProjectElements
- -.
JOINT REDEVELOPMENT AGENCY/COUNCIL AGENDA STATEMENT
Item 6""'
Meeting Date 11110/98
ITEM TITLE: COUNCIL RESOLUTION /9 J. :5'9
AGENCY RESOLUTION /bo~ APPROVING LOANS IN THE TOTAL AMOUNT
OF $169,000 TO SOUTH BAY COMMUNITY SERVICES FOR THE ACQUISITION OF TWO
PROPERTIES FOR THEIR OPERATION AS SUPPORTIVE HOUSING FOR THE HOMELESS
OR VERY LOW INCOME FAMILIES ANO THE APPROPRIATION OF $117,900 FROM THE
CITY OF CHULA VISTA'S HOME FUNOS ANO $51,100 FROM THE REOEVELOPMENT
AGENCY'S LOW ANO MOOERATE INCOME HOUSING SET.ASIOE FUNO THEREFOR
SUBMITTED BY: '.mm""" D~""p~"t Di"'~ '),
REVIEWED BY: Executive Oirect~ 'cJ .-/" (4/5ths Vote: Yes.Jl No-.-J
BACKGROUND:
South Bay Community Services (SBCS) has leased two condominiums for $1 per year per condominium through the
U.S. Department of Housing and Urban Development's Single Family Property Disposition Program for the maximum
time limit of four years. Since 1994, these condominiums have been used as housing for those women and children
left homeless as a result of domestic violence. With the expiration of the lease and HUD's discontinuance of the
Single Family Property Disposition Initiative Program, SBCS must now purchase the condominiums for the below
market price offered by HUD in order to continue and maintain these condominiums for their transitional living
programs or housing for very low income families.
SBCS has requested that the Redevelopment Agency and the City provide financial assistance from the Low and
Moderate Income Housing Set.aside Fund of $51,100 and from HOME Program funds of $117,900 to support the
acquisition of these condominiums for their continued use as confidential domestic violence shelter sites, other
transitional living programs, or housing for very low income families at a rental rate not.to.exceed 30 percent of the
families' actual gross income. This activity is exempt from CEnA under Section 15301(a) of the CEnA guidelines,
and is categorically exempt from NEPA under 24 CFR Part 58 Section 58.35 (a)(ii).
RECOMMENDATION:
Staff recommends that the Agency and Council adopt the resolutions approving a maximum allocation of $51, 100
from the Low and Moderate.lncome Housing Set.aside Fund and $117,900 from HOME funding to South Bay
Community Services for the acquisition of two condominiums for their continued use as confidential domestic violence
shelter sites, other transitional living programs, or housing for very low income families and authorizing the execution
of the required loan agreement and associated documents in substantial form and subject to the approval of the City
Attorney.
5'-1
Page 2,Item 5
Meeting Date 11110/98
BOARDS/COMMISSIONS RECOMMENDATION: The Housing Advisory Commission approved a
recommendation to the City Council to provide a maximum of $169,000 in financial assistance to South Bay
Community Services for the acquisition of two condominiums at their meeting of August 26,1998.
DISCUSSION:
sacs has requested financial assistance to acquire the condominiums for their continued use as confidential domestic
violence shelter sites, other transitional living programs, or housing for very low income families. The condominiums
are located at two separate confidential sites. Both units are three bedroom units, which are able to provide housing
for one household in each unit.
The condominiums are part of SBCS' overall continuum of care program for homeless families. Families left homeless
as a result of domestic violence begin their road to self sufficiency through their short term stay at Casa Nueva Vida
and participation in a counseling and case management program. Upon completion of their residency at Casa Nueva
Vida, families have the opportunity to participate in a six month transitional living program, where they can work with
sacs to determine and initiate more long term goals for self sufficiency. Participants of sacs' domestic violence
program are able to move into one of the two condominiums after completion of the six-month transitional living
program. The condominiums are more than just housing for these families. While living in the condominiums,
participants receive case management and other supportive services to reach long term self sufficiency. The
maximum length of stay is two years.
Funding programs available to assist with the provision of housing for homeless persons is limited. While families
living in the units do contribute 30 percent of their income toward rent, this rental income is insufficient to support
mortgage costs for the properties and the associated operating expenses. Therefore, staff is recommending that the
Redevelopment Agency and the City of Chula Vista act as the lenders and provide the funds necessary to acquire the
units. In turn, sacs will contribute $2,500 toward the purchase price of each unit and will be solely responsible for
the continued operation of the condominiums as shelter sites, other transitional living programs, or housing for very
low income families. sacs' contributions for operational expenses amount to as much as $13,800 per year for both
condominiums.
sacs must purchase the condominiums at the fair market value established by HUD, with aID percent discount given
to non.profit organizations. The cost to purchase the condominiums is approximately $174,000. The costs of
operating and maintaining both units is approximately $1,150 per month.
Description Condo 1 Condo 2 TOTAL
List Price 97,000 83,000 180,000
10% HUD Discount 9.700 8,300 18,000
Purchase Price 87,300 74.700 162,000
Closing Costs (Estimated! 6,000 6,000 12,000
TOTAL 93,300 80.700 174,000
sacs Contribution 2,500 2,500 5,000
City Loan 90,800 78,200 169,000
S'-d.-
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Page 3, Item .§
Meeting Date 11/10/98
Form of Assistance
A maximum of $169,000, together with simple interest at 6 percent per annum, in financial assistance is proposed
for the acquisition of the two condominiums. Financial assistance to acquire Condominium 1 will be provided from
those HOME funds set aside for Community Housing Development Drganizations (CHDOI in the amount of $39.700
and $51,100 from the Redevelopment Agency's Low and Moderate Income Housing Set-aside Fund. A maximum of
$78,20D from those HDME funds set aside for Community Housing Development Organizations (CHDDI will be
provided to SBCS for the purpose of acquiring Condominium 2.
City and Agency assistance will be in the form of a loan secured by a Deed of Trust and a Promissory Note for the
properties on behalf of the Redevelopment Agency and the City of Chula Vista- SBCS' obligation to repay the loan
is limited to an annual payment based on residual receipts (the net rental income remaining after operating expensesl;
based on the pro-forma presented by SBCS, the project is unlikely to generate any residual receipts. More likely,
repayment of the loan and accrued interest would be made at the time of the sale of the condominiums. However,
the Deed of Trust to be held by the City will be an effective mechanism to enforce the covenants and restrictions for
the duration of the project.
The term of the loan will be thirty (30) years. Should SBCS wish to continue the use of the properties as supportive
housing for families left homeless as a result of domestic violence, other transitional living programs, or housing for
very low income families beyond the term of the loan, the term of the loan may be extended by mutual agreement of
the Agency or the City and SBCS and as agreed upon by all parties.
Repayment of any or all of the loan will be become due and payable in full with the first to occur of the following:
al the expiration of the loan term, b) upon the first date of sale or transfer of the properties, or c) failure to operate
the facility as supportive housing or a transitional living program for the homeless or housing for very low income
families. in the event of the sale or transfer of the properties, the Agency and the City will then be repaid any and
all of the principal and accrued interest owed. Net proceeds, if any, from the sale of the properties will be distributed
as follows: a) 50 percent to the Agency and City in proportionate share to their respective financial contribution; and
b) 50 percent to SBCS. Net proceeds are funds remaining after the City and Agency loans have been repaid minus
SBCS' original cash contribution and any reasonable and customary costs of sale of the properties. Any net proceeds
received by SBCS will be used for the sole purpose of supporting programs and services to benefit Chula Vista
residents.
Upon approval of financial assistance by the City Council and the Redevelopment Agency, SBCS will enter into a loan
agreement and associated documents with the Agency and the City. The loan agreement will include all terms and
conditions of said project approval. The Council and the Agency is being asked to approve in substantial form and
subject to approval of the City Attorney all documents related to the loan. These documents are on file with the
Redevelopment Agency due to their substantial length.
Summarv
It is staff's recommendation that City Council and the Redevelopment Agency approve the allocation of $51,1 DO from
the City's Low and Moderate income Housing Set-aside Fund and $117,900 from HOME funds to acquire two
condominiums for the following reasons:
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Page 4, Item ~
Meeting Date 11/10/98
. The proposal's effectiveness in serving the City's needs and priorities as expressed in the Housing Element
of the General Plan and the HUD Consolidated Plan.
. The proposal's consistency with the City's affordable housing policies as expressed in the Housing Element,
and the HUD Consolidated Plan.
. The proposal's development and operating feasibility, financing sources and the role of the City and the
Agency in providing financial assistance or incentives.
The operation of the two condominiums as shelter sites or housing for very low income families will be administered
by a capable non profit organization committed to affordable housing and social services for lower income households
and the City of Chula Vista. sacs has provided a comprehensive continuum of prevention and intervention for victims
of domestic violence, as well as short term and transitional housing for such families. In addition to services and
shelter offered for victims of domestic violence, sacs offers services and shelter for runaway and homeless youths,
long term self sufficiency programs for young adults, youth and family support services, family transitional housing,
and other housing and economic development projects.
Additionally, the proposed City and Agency assistance meets the City's underwriting goals of reasonable project costs
and leveraging of City resources.
The purchase of the two condominiums for housing for victims of domestic violence is a need and priority as specified
within the HUD Consolidated Plan. The loss of these units would result in the loss of a vital component in the City's
continuum of care for homeless women and children afflicted with domestic violence.
FISCAL IMPACT: Approval of sacs' request for financial assistance to acquire two condominiums for their
continued use as confidential domestic violence shelter sites, other transitional living programs, or housing for very
low income families would require $169,000 in Agency and HOME funds as follows:
Low and Moderate Income Housing Set. aside $ 51,100
HOME funds for CHaOs $117,900
TDTAL $169,000
A fund balance of approximately $4,500,000 is available from the Low and Moderate.lncome Housing Set-aside fund
as of June 30, 1998. Approval of the Veteran's Home water annexation fee contribution ($420,000) will further
reduce the available fund balance to $4,080,000. The City expects to receive approximately $750,000 in FY
1999/2000 HOME funds, of which 15 percent ($112,500) must be allocated to a Community Housing Development
Organization (CHDOI.
For FY 1998/99, the City has allocated approximately $220,000 in CDBG and HOME funds to sacs in support of a
variety of social service and housing related programs. In addition, the City/Agency assisted sacs with
approximately $1.5 million in loans to develop the Cordova Village and Trolley Terrace affordable multi-family housing
projects.
IlHINESIH'IHOMEICOMMOEVISTAFF.REPI1l.03.98ICONOOS.RPT INo"mb" 5. 1998112,54pmll S -1
_. ..
AGENCY RESOLUTION NO. / ?;t~"7f
and
COUNCIL RESOLUTION NO. ...L6..Q2
JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA APPROVING LOANS IN THE
TOTAL AMOUNT OF $169,000 TO SOUTH BAY COMMUNITY SERVICES
FOR THE ACQUISITION OF TWO PROPERTIES FOR THEIR OPERATION AS
SUPPORTIVE HOUSING FOR THE HOMELESS OR VERY LOW INCOME
FAMILIES AND THE APPROPRIATION OF $117,900 FROM THE CITY OF
CHULA VISTA'S HOME FUNDS AND $51,100 FROM THE
REDEVELOPMENT AGENCY'S LOW AND MODERATE-INCOME HOUSING
SET-ASIDE FUND THEREFOR
WHEREAS, South Bay Community Services has expressed a need to receive financial
assistance in the amount of $90,800 for the purpose of acquirin9 the property located at 1536 Concord
Way for its continued use as a domestic violence shelter site, other transitional living programs, or housing
for very low income families; and
WHEREAS, South Bay Community Services has expressed a need to receive financial
assistance in the amount of $78,200 for the purpose of acquiring the property located at 1747 Regency
Way for its continued use as a domestic violence shelter site, other transitional living programs, or housing
for very low income families; and
WHEREAS, the total property acquisition cost for the property located at 1536 Concord
Way is expected to be approximately $93,300, with a purchase price of $87,300 and other costs
associated with the purchase of the Property and implementation of this Agreement of $6,000. South
Bay Community Services expects to finance the acquisition of the Property through a maximum loan of
$52,300 from the Redevelopment Agency's Low and Moderate Income Housing Set-Aside fund and a
maximum loan of $39,700 from the City of Chula Vista's HOME funds and its own resources of $2,500;
and
WHEREAS, the total property acquisition cost for the property located at 1747 Regency
Way is expected to be approximately $80,700, with a purchase price of $74,700 and other costs
associated with the purchase of the Property and implementation of this Agreement of $6,000. South
Bay Community Services expects to finance the acquisition of the Property through a maximum loan of
$78,200 from the City of Chula Vista's HOME funds and its own resources of $2,500; and
WHEREAS, said Housing Advisory Commission did, on the 26th day of August, 1998, hold
a public meeting to consider said request for financial assistance; and
WHEREAS, the Housing Advisory Commission, upon hearing and considering all testimony,
if any, of all persons desiring to be heard, and considering all factors relating to the request for financial
assistance, has recommended to the City Council and the Redevelopment Agency that the appropriation
be approved because the Commission believes that the City's and Agency's financial participation in the
acquisition of the Properties for confidential domestic violence shelter sites, other transitional living
programs, or housing for very low income families will be a sound investment based upon South Bay
Community Services's ability to effectively serve the City's housing needs and priorities as expressed in
the Housing Element and the Consolidated Plan and the cost effectiveness of acquiring said properties
based on the appraised value of the properties and the leveraging of the financial assistance
recommended; and
.:ç-:;-
i 11
WHEREAS, financial assistance for the acquisition of the properties for confidential
domestic violence shelter sites, other transitional living programs, or housing for very low income families
is consistent with the General Plan Housing Element and will allow for the continued provision of shelter
and supportive services for the homeless and housing for very low income households; and
WHEREAS, the Environmental Projects Manager has determined that financial assistance
for the acquisition of properties located at 1536 Concord Way and 1747 Regency Way represents a
continuation of an existing use involving no expansion of use and is, therefore exempt from environmental
review pursuant to Section 15301 (a) of the State CEQA Guidelines.
NOW, THEREFORE, BE IT RESOLVED the City Council and Redevelopment Agency of the
City of Chula Vista as follows:
1. That the City Council and the Redevelopment Agency of the City of Chula Vista do hereby
approve a loan in an amount not-to-exceed $39,700 from the City's HOME funds and
$51,100 from the Redevelopment Agency's Low and Moderate Income Housing Set-Aside
fund to South Bay Community Services for the acquisition of property located at 1536
Concord Way for a domestic violence shelter site, other transitional living programs, or
housing for very low income families.
2. That the City Council of the City of Chula Vista does hereby approve a loan in an amount
not-to-exceed $78,200 from the City's HOME funds to South Bay Community Services for
the acquisition of the property located at 1747 Regency Way for a domestic violence
shelter site, other transitional living programs, or housing for very low income families.
3. That the City Council and the Redevelopment Agency of the City of Chula Vista do hereby
authorize the Finance Director to appropriate a maximum of $117,900 from the City of
Chula Vista's HOME Funds and $51,100 from the Redevelopment Agency's Low and
Moderate Income Housing Set-Aside fund for the purpose of providing loans in an amount
not-to-exceed $90,800 and $78,200 to South Bay Community Services for the acquisition
of properties located within the City of Chula Vista for domestic violence shelter sites,
other transitional living programs, or housing for very low income families.
4. That the Mayor and the Chairman of the Redevelopment Agency are hereby authorized and
directed to execute loan agreements and other associated documents in order to implement
this action on the terms presented in final forms approved by the City/Agency Attorney.
5. Staff is directed to take such other actions as may be necessary or appropriate to assist
South Bay community Services with the acquisition of the subject properties.
Presented by Approved as to form by
~~~ ~
Chris Salomone
Director of Community Development
[IENTER YOUR INITIALS> M,\HOMElCOMMOEV\RESOSIENTER NAME OF DOCUMENT [N,,"mbo< 5. 1998 [1"pmll
s- G
JOINT REDEVELOPMENT AGENCY/COUNCIL AGENDA STATEMENT
Item~
Meeting Date 11/10/98
ITEM TITLE: AGENCY RESOLUTION /~o1
COUNCIL RESOLUTION ¡e/~O APPROVING THE DOWNTOWN HOLIDAY
LIGHTING PROGRAM
AGENCY RESOLUTION It:.(() ENTERING INTO AN AGREEMENT WITH
DEKRA-LiTE FDR MANUFACTURE, INSTALLATION, REMOVAL AND STORAGE OF
DECORATIONS FDR THE DOWNTOWN HOLIDAY LIGHTING PROGRAM AND APPROVING
$91,907.31 THEREFOR
SUBMITTED BY: Comm",', no..'opmo" o;rect"'~ '
REVIEWED BY: Executive Directo~, ~ (4/5ths Vote: Yes- NoX!
BACKGROUND:
On August 4,1998, the City Council and Redevelopment Agency approved a concept plan for the Downtown Holiday
Lighting Program and directed staff to return to Council/Agency with a detailed plan to implement the program and
an amendment to the Town Centre I Fine Arts Policy to include the Holiday Lighting Program. On October 6, the
Redevelopment Agency approved the proposed amendment to the Town Centre I Fine Arts Policy.
The proposed Downtown Holiday Lighting Program as well as a contract with DEKRA-LiTE for the installation of
the Downtown Holiday Lighting Program is presented this evening for consideration by the Council and Agency.
RECOMMENDATION:
That the City Council and Redevelopment Agency adopt a resolution approving the Downtown Holiday Lighting
Program as presented by staff.
That the Redevelopment Agency adopt a resolution entering into a two-party agreement with DEKRA-LiTE for the
manufacture, installation, removal, and storage of decorations for the Downtown Holiday Lighting Program and
approving $91,907.31 therefor.
BOARDS/COMMISSIONS RECOMMENDATION:
The Downtown Holiday Lighting Program implementation plan was presented to the Downtown Business Association
(DBA) on November 3. The Board voted unanimously to support the proposal. Also, the DBA approved a formal letter
of agreement committing to contribute $4,000 annually toward the installation, storage, and maintenance costs
related to the lighting program.
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Page 2, Item it.
Meeting Date 11/1 0/98
DISCUSSION:
A Request for Proposal for the Downtown Holiday Lighting Program Icopy attached as Attachment A) was mailed
to five known specialty lighting and decoration companies located in California. Two proposals were received and
both companies were interviewed by a four member interview panel which consisted of two City staff members (the
Public Information Officer and the Principal Community Development Specialist for the Town Centre II; Jim Fergus,
a Town Centre Project Area Committee member and Donna Vignapiano. a member of the Downtown Holiday lighting
Task Force. (Both Mr. Fergus and Ms. Vignapiano also are Downtown Merchants and Downtown Business
Association Board members.)
The following two bids were received:
DEKRA.LlTE $82.144.22 plus $12,335.40 optional displays for Memorial Park
$2,343.60 optional garland wrap for palm trees
TOTAL $96,823.22
Harrington Decorating Company $84.788.63 plus $15.144.59 optional display for Memorial Park
TOTAL $99,933.22
Selection
On October 26, the selection committee (interview panell reviewed the two proposals submitted and interviewed
representatives from both companies that submitted bids. The committee evaluated the proposals received based
upon their 1) ability to meet the goals of the program as defined in the Request for Proposal; 2) quality of design; 31
excitement of design; and 4) project cost (ability to meet budget and schedule). Subsequently, the committee voted
unanimously to recommend the DEKRA.LlTE proposal with some modification. DEKRA-LiTE agreed to the changes
and recalculated their bid to $85,495.17 as a result.
Downtown Holidav lightino Program
A detailed description of the lighting program is included as Attachment I of the attached agreement RACO No.-
-' The following is a general description of the displays that are proposed. IExhibit numbers refer to the Exhibits
included in Attachment 1.1
The general theme of the proposed holiday lighting program developed into displays related to the Santa's Workshop
that the Downtown Business Association will construct in Memorial Park. The Selection Committee members agreed
the theme fits well with marketing for the Downtown specialty commercial district during the holiday shopping
season.
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Page 3, Item jp
Meeting Date 11/10/98
E Street Entrv
Entryway arches will be created on the southwest and southeast corners of Third Avenue and E Street by installing
three, five foot lighted snow flakes on each of the two street lamps (Exhibit #2!. The snowflakes are made of white
and silver reflective material and will be lighted. They can be seen in daylight as well as during the evening when lit.
The snowflakes will be anchored by blue and white snowflake banners and the lamp posts will be wrapped in blue
and white reflective garland. The blue and white color scheme for the"entryway was developed to avoid interference
with the operation of the traffic signals located at the intersections.
Third Avenue
Thirty-one cobra head street lamps located along Third Avenue between E and G Streets and a portion of F Street will
be decorated with banners and lighted Christmas trees (Exhibit #4). The banners have a white background and are
printed with a series of gold, green, and red wrapped packages. Opposite the banners will be lighted Christmas trees,
alternating in gold and green colors. The cobra light standards with traffic signals (located at Davidson and F Street)
will duplicate the design for the E Street entryway with one 5 ft. Lighted garland snowflake and a blue snowflake
banner to replace the red and green decorations to eliminate confusion with the traffic signal lights.
Eighty-nine ornamental street lights will be decorated with holiday sprays (Exhibit #3). These decorations will not
be lighted but new light globes for the ornamenlallight standards are recommended to brighten the glow emitted by
the lamps. The cost for new globes is estimated at $7,000.
The focus point decorations along Third Avenue are the existing seven trellises. The trellises will be decorated with
mini lights (Exhibit #51 and each trellis will feature an individual lighted and animated display including:
8' H x 8' W Waving Snowman (Exhibit #61
8' H x 4' W Drumming Solder (Exhibit #7)
6' H x 4' W Waving Santa (Exhibit #8)
4' H x 4' W Waving Elf (Exhibit #9)
4-y,' H x 7' W Santa on a Harley (Exhibit #10)
3.y,'Hx6'W Drumming Elf (Exhibit #11)
11'Hx15'W Snoozino Santa (Exhibit #12)
Memorial Park Fountain Area
The Memorial Park fountain area directly adjacent to Third Avenue is a major focal point. The Downtown Business
Association will be establishing a Santa's Workshop in the vicinity of the fountain- Children will be able to have their
pictures taken with a live Santa and specialty vendors will be selling holiday snacks under the arbor.
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Page 4. Item ~
Meeting Date 11/10/98
Several lighted displays will be featured in this area. The main entry to Santa's workshop will be through a 15 ft.
high lighted archway guarded by two giant toy soldiers (animated to salute) (Exhibit #13). The fountain will be
programmed to phase from red to blue to gold and the surrounding trees will be decorated with alternating colored
mini lights. (Example of lights on Exhibit #14.) The museum building will be outlined in lights and the trellis above
the entry to the building will support a 6' H X 22' W lighted animated train (Exhibit #151.
The highlight will be a three.dimensional, 28 ft. tall lighted Christmas tree that will be topped with a large
multicolored star (Exhibit #16). The tree has been engineered to sit atóp the eight ft. high arbor to become a landmark
during the holiday season.
Public Parking Lots
The parking lots will be decorated with a combination of garland wrapped features and coordinating banners where
they can be accommodated on light standards. Each of the larger parking lots will have a theme related to the
Santa's workshop including: Christmas trees, reindeer, toy soldiers, candy canes, snow flakes, Santa Claus, candles,
and stockings (Exhibits 18, 19 and 201.
Median Strip
The Third Avenue median was not included in the 1998 lighting plan because it currently does not have electricity
available. DEKRA.LlTE has proposed that the palm trees within the median be decorated with reflective garland to
brighten the area. The selection committee members agreed that the garland wrap would add brightness to the
Avenue.
Schedule
The Downtown Holiday Lighting Program includes a large number of displays and exhibits and will involve substantial
electrical work. It is estimated installation of the full program will take about eight to nine days to complete given
good weather and no extensive vandalism occurs. The crews will work mostly at night during the low vehicle traffic
period to avoid conflicts with the daily business of the Downtown.
Installation is planned to start on December 2 and finish at noon on December 9. It is recommended that lights and
decorations be installed on the cobra light standards and the E Street entryway first which will be between December
2 and 4; then, following the Yule Parade on December 5, installation would be completed in Memorial Park, on the
trellis, and on the balance of the decorations. (per request of the DBA, the contractor also will try to install the multi.
colored mini. lights on the trellises and the garland wrap on the palm trees prior to the parade.)
Decorations located above the street level have been recommended to be install before the parade. The lights and
decorations will be highly visible and the potential for damage to the lower level exhibits due to the number of people
lining the avenue and using the Memorial Park area will be avoided. Following this year's experience with installation
of decorations and extension of electrical facilities, staff will have a better idea of what will be needed in the future
G-<f
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Page 5, Item k..
Meeting Date 11/10/98
to implement the program. In coming years, installation will be scheduled earlier to coincide with the Downtown's
holiday events.
A liquidated damage clause has been added to the contract to allow a $500 per day penalty alter December 9 barring
inclement weather, excessive damage, and acts of God.
Summarv
The holiday lighting program proposed by DEKRA-liTE for the Downtown meets the goals and objectives established
for the program las outlined on page 1 of the attached Request for Proposal. Attachment AI and is within the planned
budget.
FISCAL IMPACT: During the FY 98-99 budget session, $140,000 was approved for the Downtown Holiday
Lighting Program in CIP Project RD-228. Approximately $110,000 was designated for 1998 lighting displays.
Final costs for the proposed 1998 program include:
E Street Entry $3,874.96
Third Avenue Lighting Displays 47,781.60
Memorial Park Lighting Displays 20,033.85
Public Parking Lots 9,861.16
Median Enhancements/On.Site Electrician 3,943.60
Total Cost for 1998 DEKRA-liTE Contract $85.495.17
7.5% Contingency 6,412.14
Total for 1998 Lighting Program $91,907.31
Costs will include an electrician for final installation and maintenance; and costs will "clude installation, removal,
and storage of decorations for the 1998 program. Public Works has recommended th¡t installation, removal, and
storage of the lights, display and exhibits be contracted due to workload issues. In addilion, because there are
a large number of lights involved and there is a need for specialized storage and expert handling to sustain tm
quality of the exhibits, staff also recommends that installation, removal, and storage be contracted throughout
at least December 1999. By that time, Public Works will have moved to the new otay Valley facility and staff
will have the opportunity to evaluate storage space and accommodations.
It is estimated installation, removal and storage costs will be approximately $14,000 per year. That includes
labor, transportation, boxing/hanging, racks, and bulb replacement for the Memorial Park and Third Aveme
exhibits. (Mini lights around the trellises will be an extra $250 annually.)
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Page 6, Item i£.
Meeting Date 11/10/98
Installation, Removal, Storage $14,000
Mini light replacement 250
Downtown Business Association Contribution 4,000
Annual Cost to City $10,250
Savings due to negotiation of the contract will be about $10,000which can be allocated to the 19991ightirg
program. Funding for years following to install, remove, and store lights, displays and exhibits will need to IE
budgeted in the annual City budget; or alternatively, the Council could choose to utilize City staff and store the
decorations in a City facility.
Some general electrical work will be performed by the City in conjunction with the consultant's work, but, will be
the responsibility of the City. The Redevelopment Agency approved up to $30,000 of the $140,000 project fund
for this purpose in August. In addition, new globes for the ornamental light standards will cost approximate~
$7,000. Funds are available in the approved CIP to purchase and install 89 new globes.
IPBIH'IHOMEICOMMOEVISTAff.REPII 1.10.9BIHOllOAY.113
~-Lc,
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ATTACHMENT A
Request for Proposals
for
CITY OF CHULA VISTA
DOWNTOWN HOLIDAY LIGHTING PROGRAM
The City of Chula Vista and the City of Chula Vista Redevelopment Agency invite you to submit a
proposal to create a high quality holiday lighting program for a two block traditional Downtown area.
The Chula Vista Downtown is located within the Town Centre I Redevelopment Project Area and
primarily consists of a low profile commercial business district with a mixture of retail and service
oriented merchants and businesses.
The goal of the program is to provide the community of Chula Vista with a quality holiday
lighting experience which will:
. Enhance the image of the community and the Downtown area
. Provide exposure to the Downtown business area
. Increase the Downtown's business activity during the holiday season and evenings
The lighting program will be coordinated with Santa's Workshop in the Park, Holiday activities in
the Memorial Bowl, and special promotional opportunities provided by the Downtown Business
Association and business owners and merchants. The lighting program and displays should be
pedestrian oriented and vehicle friendly.
SECTION I PROJECT DESCRIPTION
Downtown Holidav LiQhtinQ ProQram
The Downtown Holiday Lighting Program should provide a festive environment and an exciting
holiday viewing experience within the Downtown area. The proposal should address several
elements of the lighting program which entails:
. E Street entry display
. Third Avenue on-street lighting displays
. Memorial Park display
. Public parking lots
Note: Expansion of the program in 1999 is anticipated. The expanded area is planned to include
lighting displays in the Third Avenue median (following installation of two new streellamp
standards) and banners and lighting displays on cobra-head street lamps along Parkway
(after new street lamp standards are installed).
A. E Street Entry
The E Street entry display entails a lighted entry to the Downtown via Third Avenue from E
Street. The entry display should be located on the south side of E Street and should make a
strong statement and clearly identify the entrance to the Downtown area.
Lighting displays and banners should be affixed to existing cobra-head street lamps on the
southeast and southwest corners of Third Avenue and E Street. The street lamps support
traffic signal arms and no display materials may interfere with the operation of the traffic signal;
therefore, it is suggested that any lighting proposed to be placed on these two street lamp poles
be white in color.
1 ro-7
The City is currently investigating temporary overhead electrical service for the display to
provide adequate electricity to accomplish an exciting and decorative entryway to Downtown's
Holiday Lighting Program.
B. Third Avenue On-Street Lighting Displays
There are approximately 120 street lamps on Third Avenue and a portion of F Street (location
map attached). There are 30 cobra-head type street lamps and 90 ornamental street lamps.
Because electrical service to the street lamps is limited for lighting displays, a creative method
of lighting-up Third Avenue and a portion of F Street is needed.
Approximately 100 amps of electricity are available to provided lighting displays on the street
lamps. One way to gain the most from available electrical service is to consolidate power and
to design lighted displays for only the cobra-head street lamps and supplement the lighting with
reflective banners and or decorations. (The Downtown currently has a banner program which
includes single and double banners. Approximately (53) 94" X 30" banners are included in the
current banner program.)
Existing light globes on the ornamental street lamps will be replaced to allow maximum
illumination since there may not be enough electrical power to install lighted displays on these
lamps. It is recommended that reflective materials be use to decorate the ornamental light
poles to capture as much light as possible.
An opportunity to develop significant lighting displays on Third Avenue is to decorate seven
trellises and several planter areas. (5 trellises and 3 planters are located between E and F
Streets and 2 trellises are located between F and G Streets.) Electric outlets and at least 5
amps of electricity are available at each trellis area. Also, the trellises are tall enough to reduce
vandalism if lighted displays are installed on the top of the trellis structure. Opportunities to
light the general trellis area also exist which may provide an amplification of the display.
C. Memorial Park Lighting Display
A major lighting display is proposed at the fountain area in Memorial Park to mark the entrance
to the park and holiday activity area at the northeast corner of the park. Approximately 50
amps, single phase electrical service is available at the fountain area for a lighting exhibit.
Lighting should be designed to coordinate with holiday activities planned to take place in the
Park and in Memorial Bowl during the month of December. The main lighling exhibit should
be located at the north west corner of the Park in the vicinity of the fountain and Heritage
Museum where Santa's Workshop and food vendors will be located. Also, three holiday events
(seasonal concerts or other cultural programs) will be planned at the Memorial Bowl located
toward the west end of the park. (No major exhibit or lighting,(jisplay is planned for the Bowl
area this year.)
The lighting display to be located at the fountain area may take advantage of the programable
lighting system currently available within the fountain structure. The system can be programed
to accommodate multi-colored phasing.
2 ~-~
D. Public Parking Lots
The main focus of the Downtown Holiday Lighting Program is along Third Avenue from E to G
Streets. Pedestrian traffic will be strongly encouraged which may enlail incentives for viewers
to park their vehicles in public parking lots located behind the businesses located along Third
Avenue (parking lot location map attached).
Parking lots no. 2, 3, 4, 5, 6, 8, 9, and 10 are lighted and are convenient to folks who would like
to park and walk. It is anticipated that interesting decoration of at least the lots along their
street frontage may provide an incentive to park in the lots. An example of interesting
decorations may be to use a theme for each parking lot. One lot may have Santa banners, and
a lighted santa on a light fixture. Perhaps another lot may use Santa's elf as a theme, or a
popular cartoon character in holiday attire.
Availability of electricity in individual parking lots is not known at this time. Minimal electrical
requirement is suggested.
SECTION II PROJECT BUDGET
The project budget is $100,000 for items described in Section 1.; A., S., C., and D.
The budget includes:
. All materials and labor for production, transport, and installation of all displays in satisfactory
working order including photo cell on/off devises or other acceptable on/off system
. Electrician to finalize electrical connections to the lighting displays
. Maintenance of the installation through December 31, 1998
. Dismantling of the installation and preparation for storage between January 2, 1999 and
January 8, 1999
. All required insurance and related documents, tools, equipment, vehicles etc. to satisfactorily
complete the project
SECTION III PROJECT SCHEDULE
October 22, 1998 Proposals submitted by 5:00 p.m.
October 26, 1998 Committee reviews finalist designs
November 10, 1998 Redevelopment Agency reviews finalist designs & approves contract
November 11, 1998 Contract begins
December 6, 1998 Installation begins no sooner than December 6
December 9, 1998 Installation complete and in working order bu 12:00 noon
January 2-8, 1999 Dismantle and prepare for storage
3 ~-9
T IT --
SECTION IV PROPOSAL SUBMITTAL
Please submit four complete copies of your company's sealed proposal to Pamela Buchan at
the Community Development Department, 276 Fourth Avenue, Chula Vista CA 91910 no later than
5:00 p.m. on October 22,1998.
Submittals shall include:
. Not to exceed lump sum bid for each of the four elements described in Section I and payment
schedule if materials deposit required
. Complete and signed disclosure statement
. Detailed narrative of proposal including type of displays, materials, and colors; display
locations; life expectancy of proposed light fixtures and bulbs; electrical requirements;
installation requirements; identify all animated displays if proposed
. Graphic of proposed program and displays (typical sections for repetitive displays are
acceptable). Colored graphics are preferred.
. Schedule of installation, dismantling, and any other pertinent aspect of project
. Description of system proposed to be used to turn the display son and off
. Additional information that could be heipful to evaluate your company's proposal
SECTION V SELECTION PROCESS
A selection committee will review all submittals and will evaluate proposals based on the following
criteria:
1. Ability to Meet Goal of the Program
2. Quality of Design
3. Excitement of Design
4. Ability to meet budget and schedule
SECTION VI FORM OF AGREEMENT
The selected company will be required to enter into the City of Chula Vista's standard two-party
agreement with the Redevelopment Agency at the time of award of contract. A draft copy of the
agreement is attached for your information. The project description will be modified to meet
specifications for the selected proposal. Also, the selected company will be required to provide
proof of liability insurance in the required amounts and workers compensation insurance prior to
execution of the contract.
Please contact Pamela Buchan at (619) 691-5248 if you have any questions regarding this
proposal.
This is not an offer of employment. This Request for Proposal is an opportunity to submit
a proposal for evaluation.
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AGENCY RESOLUTION NO. / c:, oq
and
COUNCIL RESOLUTION NO. I q .;t.(" 0
JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
APPROVING THE DOWNTOWN HOLIDAY LIGHTING PROGRAM
WHEREAS, On August 4, 1998, the City Council and the Redevelopment Agency
approved a concept plan for the Downtown Holiday Lighting Program; and
WHEREAS, On October 6, 1998, the Redevelopment Agency approved an
amendment to the Town Centre I Fine Arts Policy to allow the Redevelopment Agency the
flexibility to consider a variety of cultural forms and types of artistic expression relating to culture
and tradition such as the holiday lighting program proposed for Downtown Chula Vista.
WHEREAS, the City Council and Agency Board have reviewed the plan to install
holiday lighting, displays, and exhibits in Downtown Chula Vista as depicted on Exhibit A of
proposed document RACO NO. - ("Downtown Holiday Lighting Program").
NOW, THEREFORE, BE IT RESOLVED the City Council and Redevelopment Agency
of the City of Chula Vista do hereby approve the Downtown Holiday Lighting Program.
Presented by Approved as to form by
@LÇ~/
Chris Salomone
Director of Community Development
IIP61 H"HOMElCOMMOEV,RESOS,HOLlOAY. t {No",mbo, 5. 1998 {U lpmll
b - c;2.,J
J Ii
RESOLUTION NO. ..L.!e.l 0
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY
OF CHULA VISTA ENTERING INTO AN AGREEMENT WITH DEKRA-
LITE FOR MANUFACTURE, INSTAllATION, REMOVAL AND
STORAGE OF DECORATIONS FOR THE DOWNTOWN HOLIDAY
LIGHTING PROGRAM AND APPROVING $91,907.31 THEREFOR
WHEREAS, a Request for Proposal for the Chula Vista Downtown Holiday Lighting
Program was faxed and mailed to a list of five known specialty lighting and decoration companies located
in California; and
WHEREAS, two proposals were received and both companies were interviewed by a four
member Selection Committee which consisted of two City Staff members, a Town Centre Project Area
Committee member, and a member of the Downtown Holiday Lighting Task Force, (the later two also
being Downtown merchants and Board members of the Downtown Business Association) ; and
WHEREAS, on October 26, 1998, following interviews of representatives from both
companies that submitted bids, the Seleclion Committee evaluated the proposals received based on: 1)
ability to meet the goals of the program as defined in the Request for Proposals, 2) quality of design, 3)
excitement of design, and 4) project cost (ability to meet budget and schedule as defined in the Request
for Proposal) and voted unanimously 10 recommend that the Redevelopment Agency enter into a conlract
with DEKRA-LiTE to construct and install the Downtown Holiday Lighting Program; and,
WHEREAS, DEKRA-LiTE was the lowest bid received at $82,144.22 plus optional
displays and, in the opinion of the Selection Committee, was the most responsive bid, City staff requested
thai DEKRA-LiTE modify the original proposal submitted to '1ine tune" the proposed Downtown Holiday
Lighting Program
WHEREAS, DEKRA-LiTE modified Ihe Program in accordance with staff's request and
project costs were adjusted accordingly 10 result in a final negotiated cost of $85,495.17 plus 7.5%
contingency for the Downtown Holiday Lighting Program.
NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of Chula Visla
does hereby:
1. Approve a contract with DEKRA-LiTE in the form presented (known as Agency documenl
RACO No. -) for the manufacture, installation, removal, and storage of decorations
for the Downtown Holiday Lighting Program and authorize and direct the Chairman to
execute same, and
2. Approve $91,907.31 ($85,495.17 plus 7.5% contingency) for the implementation of the
Downtown Holiday Lighting Program and installalion, removal, and storage of lighting,
displays, and exhibits.
pres&: Approved as 10 form by
ç-- í "
M f', ^---S; ~
Chris Salomone
Director of Community Development
[(PB) HIHOMElCOMMDEV\RESOSIHOLlDAY.2 (N"omb" 5.1996 (1'13pm)]
C:, -.;;2. ~
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RACO No. -
Agreement between
City of Chula Vista
and
DEKRA-LiTE
for Downtown Holiday Lighting Program
This agreement ("Agreement"), dated November 10,1998 for the purposes of reference
only, and effective as of the date last executed unless another date is otherwise specified in Exhibit
A, Paragraph 1 is between the City-related entity as is indicated on Exhibit A, paragraph 2, as such
("City"), whose business form is set forth on Exhibit A, paragraph 3, and the entity indicated on the
attached Exhibit A, paragraph 4, as Consultanl, whose business form is set forth on Exhibit A,
paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A,
paragraph 6 ("Consultant"), and is made with reference to the following facts:
Recitals
Whereas; a Request Proposal for City of Chula Vista Downtown Lighting Program was
mailed to five known specialty holiday decorating companies located in the State of California; and
Whereas, two proposals were received by 5 p.m. on October 22, 1998 and both proposals
were reviewed and both companies were interviewed by a four member Selection Committee on
October 26,1998; and,
Whereas, the said Selection Committee voted unanimously to recommend that the
Redevelopment Agency accept the proposal submitted by DEKRA-LiTE as modified by
recommendation of the selection committee; and,
Whereas, Consultant warrants and represents they are experienced and staffed in a
manner such that they are and can prepare and deliver the services required of Consultant to City
within the time frames herein provided all in accordance with the terms and conditions of this
Agreement;
NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually
agree as follows:
1. Consultant's Duties
(I) General Duties
Consultant shall perform all of the services described on the attached Exhibit A, Paragraph
7, entitled "General Duties"; and,
Page 1 ~-J..3
-. --
(II) Scope of Work and Schedule
In the process of performing and delivering said "General Duties", Consultant shall also
perform all of the services described in Exhibit A, Paragraph 8, entitled" Scope of Work and
Schedule", not inconsistent with the General Duties, according to, and within the time frames set
forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A,
Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement.
The General Duties and the work and deliverables required in the Scope of Work and Schedule
shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by
the times indicated does not, except at the option of the City, operate to terminate this Agreement.
(III) Reductions in Scope of Work
City may independently, or upon request from Consultant, from time to time reduce the
Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City
and Consultant agree to meet in good faith and confer for the purpose of negotiating a
corresponding reduction in the compensation associated with said reduction.
(IV) Additional Services
In addition to performing the Defined Services herein set forth, City may require Consultant
to perform additional consulting services related to the Defined Services ("Additional Services"),
and upon doing so in writing, if they are within the scope of services offered by Consultant,
Consultant shall perform same on a time and materials basis at rates set forth in the Exhibit A,
Paragraph 11 (A).
(V) Standard of Care
Consultant, in performing any Services under this agreement, whether Defined Services
or Additional Services, shall perform in a manner consistent with that level of care and skill
ordinarily exercised by members of the profession currently practicing under similar conditions and
in similar locations.
(VI) Insurance
Consultant represents that it and its agents, staff and subconsultants employed by it in
connection with the Services required to be rendered, are prolected against the risk of loss by the
following insurance coverages, in the following categories, and to the limits specified, policies of
which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or
shall meet with the approval of the City:
Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage
in the amount set forth in the attached Exhibit A, Paragraph 9.
Commercial General Liability Insurance including Business Automobile Insurance coverage
in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each
project away from premises owned or rented by Consultant, which names City and Applicant as
an Additional Insured, and which is primary to any policy which the City may otherwise carry
Page 2 {,-:¿'¡
("Primary Coverage"), and which treats the employees of the City and Applicant in the same
manner as members of the general public ("Cross-liability Coverage").
Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless
Errors and Omissions coverage is included in the General Liability policy.
(VII) Proof of Insurance Coverage.
(1) Certificates of Insurance.
Consultant shall demonstrate proof of coverage herein required, prior to the
commencement of services required under this Agreement, by delivery of Certificates of Insurance
demonstrating same, and further indicating that the policies may not be canceled without at least
thirty (30) days written notice to the Additional Insured.
(2) Policy Endorsements Required.
In order to demonstrate the Additional Insured Coverage, Primary Coverage and
Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy,
Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be
reviewed and approved by the Risk Manager.
(VIII) Security for Performance.
(1) Performance Bond.
In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to
provide a Performance Bond (indicated by a check mark in the parenthetical space immediately
preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City
a performance bond by a surety and in a form and amount satisfactory to the Risk Manager or City
Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said
Paragraph 19, Exhibit A.
(2) Letter of Credit.
In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to
provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately
preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City
an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the
bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of
this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount
satisfactory to the Risk Manager or City Attorney which amount is indicated in Ihe space adjacent
to the term, "Letter of Credit", in said Paragraph 19, Exhibit A.
(3) Other Securily
In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to
provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark
in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then
Page 3 ~ - ;¿~
_. --
Consultant shall provide to the City such other security therein listed in a form and amount
satisfactory to the Risk Manager or City Atlorney.
I. Business License
Consultant agrees to obtain a business license from the City and to otherwise comply with
Title 5 of the Chula Vista Municipal Code.
2. Duties of the City
(I) Consultation and Cooperation
City shall regularly consult the Consultant for the purpose of reviewing the progress of the
Defined Services and Schedule therein contained, and to provide direction and guidance to achieve
the objectives of this agreement. The City shall permit access to its office facilities, files and
records by Consultant throughout the term of the agreement. In addition thereto, City agrees to
provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with
the further understanding that delay in the provision of these materials beyond 30 days after
authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's
performance of this agreement.
(II) Compensation
Upon receipt of a properly prepared billing from Consultant submitted to the City periodically
as indicated in Exhibit A, Paragraph 18, but in no event more frequenlly than monthly, on the day
of the period indicated in Exhibit A, Paragraph 18, Cily shall compensate Consultant for all services
rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 11,
adjacent to the governing compensation relationship indicated by a "checkmark" next to the
appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of
Exhibit A, and shall compensate Consullant for out of pocket expenses as provided in Exhibit A,
Paragraph 12.
All billings submitled by Consultant shall contain sufficient information as to the propriety
of the billing to permit the City to evaluate that the amount due and payable thereunder is proper,
and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 (C)
to be charged upon making such payment.
3. Administration of Contract
Each party designates the individuals ("Contract Administrators") indicated on Exhibit A,
Paragraph 13, as said party's contract administrator who is authorized by said party to represent
them in the routine administration of this agreement.
4. Term.
This Agreement shall terminate when the Parties have complied with all executory
provisions hereof.
Page 4 ~-~
- . --
5. Liquidated Damages
The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A,
Paragraph 14.
It is acknowledged by both parties that time is of the essence in the completion of this
Agreement. it is difficult to estimate the amount of damages resulting from delay in performance.
The parties have used their judgment to arrive at a reasonable amount to compensate for delay.
Failure to complete the Defined Services within the allotted time period specified in this
Agreement shall result in the following penalty: For each consecutive calendar day in excess of
the time specified for the completion of the respective work assignment or Deliverable, the
consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages
Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate").
Time extensions for delays beyond the consultant's control, other than delays caused by
the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the
expiration of the specified time. Extensions of time, when granted, will be based upon the effect
of delays to the work and will not be granted for delays to minor portions of work unless it can be
shown that such delays did or will delay the progress of the work.
6. Financial Interests of Consultant
(I) Consultant is Designated as an FPPC Filer.
If Consultant is designaled on Exhibit A, Paragraph 15, as an "FPPC fiier", Consultant is
deemed to be a "Consultant" for the purposes of the Politicai Reform Act confiict of interest and
disclosure provisions, and shall report economic interests to the City Clerk on the required
Statement of Economic interests in such reporting categories as are specified in Paragraph 15 of
Exhibit A, or if none are specified, then as determined by the City Attorney.
(II) Decline to Participate.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not
make, or participate in making or in any way attempt to use Consultant's position to infiuence a
governmental decision in which Consultant knows or has reason to know Consultant has a financial
interest other than the compensation promised by this Agreement.
(III) Search to Delermine Economic Interests.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and
represents that Consultant has diligently conducted a search and inventory of Consultant's
economic interests, as the term is used in the regulations promulgated by the Fair Political
Practices Commission, and has determined that Consultant does not, to the besl of Consultant's
knowledge, have an economic interest which would conflict with Consultant's duties under this
agreement.
Page 5 ~-2---;
- .
(IV) Promise Not to Acquire Conflicting Interests.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant further
warrants and represents that Consultant will not acquire, obtain, or assume an economic interest
during the term of this Agreement which would constitute a conflict of interest as prohibited by the
Fair Political Practices Act.
(V) Duty to Advise of Conflicting Interests.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant further
warrants and represents that Consultant will immedialely advise the City Attorney of City if
Consultant learns of an economic interest of Consultant's which may result in a conflict of interest
for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder.
(VI) Specific Warranties Against Economic Interests.
Consultant warrants and represents that neither Consultant, nor Consultant's immediate
family members, nor Consultant's employees or agents ("Consultant Associates") presently have
any interest, directly or indirectly, whatsoever in any property which may be the subject matter of
the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any
property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other
than as listed in Exhibit A, Paragraph 15.
Consultant further warrants and represents that no promise of future employment,
remuneration, consideration, gratuity or other reward or gain has been made to Consultant or
Consultant Associates in connection with Consultant's performance of this Agreement. Consultant
promises to advise City of any such promise that may be made during the Term of this Agreement,
or for 12 months thereafter.
Consultant agrees that Consultant Associates shall not acquire any such Prohibited Inlerest
within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except
with the written permission of City.
Consultant may not conduct or solicit any business for any party to this Agreement, or for
any third party which may be in conflict with Consultant's responsibilities under this Agreement,
except with the written permission of City.
7. Hold Harmless
Consultant shall defend, indemnify, protect and hold harmless the City, its elected and
appointed officers and employees, from and against all claims for damages, liability, cost and
expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant,
or any agent or employee, subcontractors, or others in connection with the execution of the work
covered by this Agreement, except only for those claims arising from the sole negligence or sole
willful misconducl of the City, its officers, or employees. Consultant's indemnification shall include
any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents,
or employees in defending against such claims, whether the same proceed to judgment or not.
Further, Consultant at its own expense shall, upon written request by the City, defend any such suit
Page 6 fo-2$
or action brought against the City, its officers, agents, or employees. Consultants' indemnification
of City shall not be limited by any prior or subsequent declaration by the Consultant.
8. Termination of Agreement for Cause
If, through any cause, Consultant shall fail to fulfill in a timely and proper manner
Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants,
agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement
by giving written notice to Consultant of such termination and specifying the effective date thereof
at least five (5) days before the effective date of such termination. In that event, all finished or
unfinished documents, data, studies, surveys, drawings, maps, reports and other materials
prepared by Consultant shall, at the option of the City, become the property of the City, and
Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily
completed on such documents and other materials up to the effective date of Notice ofTermination,
not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's
breach.
9. Errors and Omissions
In the event that the City Administrator delermines that the Consultants' negligence, errors,
or omissions in the performance of work under this Agreement has resulted in expense to City
greater than would have resulted if there were no such negligence, errors, omissions, Consultant
shall reimburse City for any additionai expenses incurred by the City. Nothing herein is intended
to limil City's rights under other provisions of this agreement.
10. Termination of Agreement for Convenience of City
City may terminate this Agreement at any time and for any reason, by giving specific written
notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30)
days before the effective date of such termination. In that event, all finished and unfinished
documents and other materials described hereinabove shall, at the option of the City, become
City's sole and exclusive property. If the Agreement is terminated by City as provided in this
paragraph, Consultant shall be entitled to receive just and equitable compensation for any
satisfaclory work compleled on such documents and other materials to the effective date of such
termination. Consultant hereby expressly waives any and all claims for damages or compensation
arising under this Agreement except as set forth herein.
11. Assignability
The services of Consultant are personai to the City, and Consultant shall not assign any
interest in this Agreement, and shall not transfer any interest in the same (whether by assignment
or novation), without prior written consent of City. City hereby consenls to the assignment of the
portions of the Defined Services identified in Exhibit A, Paragraph 17 to the subconsultants
identified thereat as "Permitted Subconsultants".
12. Ownership, Publication, Reproduction and Use of Material
All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems
and any other materials or properties produced under this Agreement shall be the sole and
Page 7 c,-:LC¡
exclusive property of City. No such materials or properties produced in whole or in part under this
Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United
States or in any other country without the express written consent of City. City shall have unre-
stricted authority to publish, disclose (except as may be limited by the provisions of the Public
Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such re-
ports, studies, data, statistics, forms or other materials or properties produced under this
Agreement.
13. Independent Contractor
City is interested only in the results obtained and Consultant shall perform as an
independent contractor with sole control of the manner and means of performing the services
required under this Agreement. City maintains the right only to reject or accept Consultant's work
products. Consultant and any of the Consultant's agents, employees or representatives are, for all
purposes under this Agreement, an independent contractor and shall not be deemed to be an
employee of City, and none of them shall be entitled to any benefits to which City employees are
entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits,
injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax,
social security tax or any other payroll tax, and Consultant shall be solely responsible for Ihe
payment of same and shall hold the City harmless with regard thereto.
14. Administrative Claims Requirements and Procedures
No suit or arbitration shall be brought arising out of Ihis agreement, against the City unless
a claim has first been presented in writing and filed with the City and acted upon by the City in
accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as
same may from time to time be amended, the provisions of which are incorporated by this
reference as if fully set forth herein, and such policies and procedures used by the City in the
implementation of same.
Upon request by City, Consultant shall meet and confer in good faith with City for the
purpose of resolving any dispute over the terms of this Agreement.
15. Attorney's Fees
Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing
party shall be entitled to recover all reasonable costs incurred in the defense of the claim, including
costs and attorney's fees.
16. Statement of Costs
In the event that Consultant prepares a report or document, or participates in the
preparation of a report or document in performing the Defined Services, Consultanl shall include,
or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar
amounts of all contracts and subcontracts relating to the preparation of the report or document.
Page 8 ¿;; - 3.-0
T 1T
17. Miscellaneous
(I) Consultant not authorized to Represent City
Unless specifically authorized in writing by City, Consultant shall have no authority to act
as City's agent to bind City to any contractual agreements whatsoever.
(II) Consultant is Real Estate Broker and/or Salesman
If the box on ExhibitA, Paragraph 16 is marked, the Consultant and/or their principals is/are
licensed with the State of California or some other state as a licensed real estate broker or
salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are
licensed real estate brokers or salespersons.
(III) Notices
All notices, demands or requests provided for or permitted to be given pursuant to this
Agreement must be in writing. All notices, demands and requests to be sent to any party shall be
deemed to have been properly given or served if personally served or deposited in the United
States mail, addressed to such party, postage prepaid, registered or certified, with return receipt
requested, at the addresses identified herein as the places of business for each of the designated
parties.
(IV) Entire Agreement
This Agreement, together with any other written document referred to or contemplated
herein, embody the entire Agreement and understanding between the parties relating to the subject
matter hereof. Neither this Agreement nor any provision hereof may be amended, modified,
waived or discharged except by an instrument in writing executed by the party against which
enforcement of such amendment, waiver or discharge is sought.
(V) Capacity of Parties
Each signalory and party hereto hereby warrants and represents to the other party that it
has legal authority and capacity and direction from its principal to enter into this Agreement, and
that all resolutions or other actions have been taken so as to enable it to enter into this Agreement.
(VI) Governing lawNenue
This Agreement shall be governed by and construed in accordance with the laws of the
State of California. Any action arising under or relating to this Agreement shall be brought only in
the federal or state courts located in San Diego County, State of California, and if applicable, the
City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance
hereunder, shall be the City of Chula Vista.
[end of page. next page is signature page.]
Page 9 b-3-I
- .
Signature Page
to
Agreement between City of Chula Vista and DEKRA-LiTE
for Downtown Holiday Lighting Program
IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby
indicating that they have read and understood same, and indicate their full and complete
consent to its terms:
Dated: ,19- City of Chula Vista
by:
Shirley Horton, Mayor
Attest:
Beverly Authelet, City Clerk
Approved as to form:
John M. Kaheny, City Attorney
Dated: DEKRA-LiTE
By:
Jeff Lopez, President
By:
Jeff Lopez, Vice President
Exhibit List to Agreement
(X) Exhibit A.
Attachment I to Exhibit A
Page 10 r::, -3d--
_. --
Exhibit A
to
Agreement between
City of Chura Vista
and
DEKRA-LiTE
1. Effective Date of Agreement: November 10, 1998
2. City-Relaled Entity:
() City of Chula Vista, a municipal chartered corporation of the State of California
(X) Redevelopment Agency of the City of Chula Vista, a political subdivision of Ihe
State of California
() Industrial Developmenl Authority of the City of Chula Vista, a
() Other: , a [insert business
form]
("City")
3. Place of Business for City:
City of Chula Vista,
276 Fourth Avenue,
Chura Vista, CA 91910
4. Consultant: DEKRA-LiTE
5. Business Form of Consultant:
( ) Sole Proprietorship
( ) Partnership
(X) Corporation
6. Place of Business, Telephone and Fax Number of Consultant:
3041 S. Orange Avenue
Santa Ana, CA 92707
Voice Phone (714) 436-0705
Fax Phone (714) 436-0612
Page 11 t-33
- . --
7. General Duties:
Consultant shall provide, transport, install, remove and store public holiday lights, displays,
banners and exhibits for the Downtown Holiday Lighting Program as described in the
Section 8-Scope of Work and Schedule.
8. Scope of Work and Schedule:
A. Detailed Scope of Work: Attached as Attachment I
B. Date for Commencement of Consultant Services:
( ) Same as Effective Date of Agreement
(X) Other: November 11, 1998
C. Dates or Time Limits for Delivery of Deliverables:
Deliverable No.1: Decorations and displays, cobra type street lamps and the E
Street Entryway as described in Section 8A will be installed
between December 2, 1998 and December 4, 1998.
Deliverable No.2: All remaining lighting displays and Exhibits as described in
Section 8A will be installed between 9 p.m. December 5, 1998
and 12 noon December 9, 1998.
Deliverable No.3: All lights, displays and exhibits will be removed between January
4 and 8,1999.
D. Dale for completion of all Consultant services:
All lights, displays and exhibits will be installed and in working order to the satisfaction of
the City by 12 noon December 9,1998. All lights, displays and exhibits will be removed
and placed in storage no later than January 8, 1999
9. Insurance Requiremenls:
(X) Statutory Worker's Compensation Insurance
(X) Commercial General Liability Insurance: $2,000,000.
() Errors and Omissions insurance: None Required (included in Commercial General
Liability coverage).
(X) Errors and Omissions Insurance: $250,000 (not included in Commercial General
Liability coverage).
Page 12 (,-3-<1
- . --
10. Materials Required to be Supplied by City to Consultant:
City shall provide electrical hook-up points for 8 amp services or each of (2) poles at E
Street entryway displays and electrical service to point of hook-up for all displays to be
placed in Memorial Park.
11. Compensation:
A. (X) Single Fixed Fee Arrangement.
For performance of all of the Defined Services by Consultant as herein required, City shall
pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables
set forth below:
Single Fixed Fee Amount: $85,495.17, payable as follows:
1. Commencement of contract no later than 11/11/98 50%
Payment no later than 11/17/98 for Procurement of Raw
Materials
2 Completion of installation and all displays in working order to 25%
the salisfaction of the City no later than 12 Noon on 12/9198.
Payment 14 days following receipt of invoice.
3. Completion of removal and storage no later than 118198 25%
Payment 14 days following receipt of invoice.
12. Materials Reimbursement Arrangement: NIA
13. Contract Administrators:
City:
Chris Salomone, Community Development director
Community Development Department
276 Fourth Avenue
Chula Vista, CA 91910
Consultant:
Jeff Rovinsky, SaleslDesign
DEKRA-LiTE
3041 S. Orange Avenue
Sanla Ana, CA 92707
Page 13 b - 3:;
14. Liquidated Damages Rate:
(X) $500 per day starting and including 12/10/98 with exception of delay due to
inclement weather, excessive vandalism, and acts of God.
( ) Other:
15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest
Code:
(X ) Not Applicable. Not an FPPC Filer.
( ) FPPC Filer
( ) Category No.1. Investments and sources of income.
( ) Category No.2. Interests in real property.
( ) Category No.3. Investments, interest in real property and sources of income
subject to the regulatory, permit or licensing authority of the department.
( ) Category No.4. Investments in business entities and sources of income which
engage in land development, construction or the acquisition or sale of real
property.
( ) Category No.5. Investments in business entities and sources of income of the
type which, within the past two years, have contracted with the City of Chula
Vista (Redevelopment Agency) to provide services, supplies, materials,
machinery or equipment.
( ) Category No.6. Investments in business entities and sources of income of the
type which, within the past two years, have contracted with the designated
employee's department to provide services, supplies, materials, machinery or
equipment.
( ) Category No.7. Business positions.
( ) List "Consultant Associates" interests in real property within 2 radial miles of Project
Property, if any:
16. (N/A) Consultant is Real Estate Broker and/or Salesman
Page 14 t-3&
17. Permitted Subconsultants:
General Plastics Corporation, Marion IN (Manufaclurer)
TRB and Sons Electric, Leucadia, CA (Electrician - State License C-10-451-742)
18. Bill Processing:
1. Consultant's Billing to be submitted for the following period of time:
( ) Monthly
( ) Quarterly
(X) Other: See Paragraph II
2. Day of the Period for submission of Consultant's Billing:
( ) First of the Month
( ) 15th Day of each Month
( ) End of the Month
(X) Other: No later than 30 days following completion of milestones listed in
Paragraph II.
3. City's Account Number: 991-9910-RD-228
19. Securily for Performance N/A
( ) Performance Bond, $
( ) Letter of Credit, $
( ) Other Security:
Type:
Amount: $
( ) Retention. If this space is checked, then notwithstanding other provisions to the
contrary requiring the payment of compensation 10 the Consultant sooner, the City
shall be entitled to retain, at their option, either the following "Retention Percentage" or
"Retention Amount" until the City determines that the Retention Release Event, listed
below, has occurred:
( ) Retention Percentage: _%
( ) Retention Amount: $
Retention Release Event:
( ) Completion of All Consultant Services
( ) Other:
H,Hom'\CommD'~B",h,"\D,k"UI,.Agm No",mboc 5,1998 (11 ADAM)
Page 15 ~ -37
*
Attachment I
3041 S. ORANGE AVE. (714) 436-0705
(714) 436-0612 FAX
SANTA ANA,.-CA 92707 www.dekra-lite.com
Monday, November 2, 1998
PAMELA BUCHAN
City of Chula Vista
Community Development Department
276 Fourth Avenue
Chula Vista, CA 91910
Re: Downtown Chula Vista Holiday Vision (revised)
Thank you for welcoming Dekra-Lite back into your Holiday Vision for
Downtown Chula Vista. We are excited in helping you achieve a spectacular and
memorable presentation under your guidelines, accompanied with design,
manufacturing, and installation expertise of Dekra-Lite Industries.
With Dekra-Lite's design experience, local custom decor manufacturing capability
and the backing of General Plastics Corporation, you will be able to attain the best
possible presentation, service, and product available today.
Enclosed is a complete design that harmonizes within the revised guidelines of day
and nighttime appeal, electrical constraints, excitement, budget, and scheduling.
There are five main areas with corresponding exhibits noted as follows:
Area Corresponding Exhibit (s)
A. Entry Way Arches Exhibit #2
B. Third Avenue On Site Lighting Displays Exhibits #3, #4, #5, #6, #7, #8,
#9,#10,#11,& #12
C. Memorial Park Lighting Display Exhibits #13, #14, #15, & #16
D. Public Parking Lots Exhibits #17, #18, #19, & #20
Exhibit #1 is a sit plan summarizing all decor placement.
rt-3.g
-. --
Page 2
A. Entry Way Arches
To mark a definitive starting point of the Third Avenue entrance to Downtown Chula Vista we have
selected a design that utilizes garland, banner fabric, and illumination. The final display draws a
total of 8 amps to receive the desired illumination.
This design maximizes upon the existing structure of your, light standards without interfering with
traffic signals. You will note the snowflakes are securely anchored in a manner that will not block
the view of the traffic light display. The banner uses the existing hardware. The garland wrap
incorporates metallic silver for added sparkle and a solid white to bring out the ink in the banner
design.
Total cost $3,874.96
B. Third A venue On Site Lighting Displays
With heavy sidewalk traffic during the busy holiday season, we recommend a simple elegant spray
of garland with bells and ornaments, safely located just out of the reach of those innocent little
hands. Our full garland spray with snowtipped garland for contrast off the green pole, and bright
ornamentation provides a neat and elegant look. We have plotted 89 of your most prominent mini
poles as noted on Exhibit #1.
The larger standards will harness alternating, illuminated 7 ft. green and gold zig zag trees with a
complimenting banner design from our Holiday Star Catalogue. Because shopping is on most
everyone's mind, a big gift design seems appropriate. A total of 31 standards are recommended due
to their proximate distribution around Third Avenue. The cobra light standards with traffic signals
(located at Davidson and F Street) will duplicate the design for the E Street entryway with one 5 ft.
Lighted garland snowflake and a blue snowflake banner to replace the red and green decorations to
eliminate confusion with the traffic signal lights.
Perhaps even more excitement will be situated atop the trellis areas. Each structure will have its own
unique animated duralite or minilight display overlooking Third Avenue. Each display is custom
illuminated to fall directly into the available power constraint. Our designs are directly.targeted at
the children with animation in a waving snowman, drumming toy soldier, waving Santa, waving elf,
Harley Santa, drumming elf, and a very appropriate sunning Southern California Santa. The
powdercoated steel frames use a contemporary mixture of duralite and the traditional commercial
graded minilight.
Total cost $47,781.60
JR
{, -3 9
_. --
Page 3
C. Memorial Park Lighting Display
As a landmark entry into a whimsical playland, two giant illuminated, animated saluting 15 ft. toroy
soldiers stand next to a guardhouse arch. As you peek inside, just around the colored fountain areæa,
there are 14 illuminated trees with multi-colored minilights to accent the programmable fountaiain
lighting system.
To highlight the historic museum, garland and lights have been added to clearly identify the 10catiOion
at day and night. Just to the front of the downtown office, sits a spectacular animated 6V2 ft. x 2::22
ft. Santa express. All train cars are covered in bright garlands for day appeal, and the display come1es
to life at night with moving wheels (animation).
The main element sits high atop the existing tunnel structure and towers an additional 28 ft. aboveve.
This three dimensional, illuminated, Rosen tree is engineered specifically to be mounted omn
structures, to withstand the elements, and provide for over 10 years of holiday enjoyment. For a~an
additional flair we have added a custom 4 ft. multi-colored star unit. The complete electrical dravaw
of all aforementioned elements is a full 113 amps.
Total cost $20,033.85
D. Public Parking Lots
To cany on the holiday flavor well outside Third A venue, we have added a mixture of giant garlanmd
pole decorations and banner treatments.
We have designated lot #2 as the TREE lot. At the entrance you are greeted with a 7 f' ft.
mesh/garland, non-illuminated tree decoration and find complementing 5 ft. rectangular bannero::rs
situated along the frontage area.
Lots #9, #10, and #8 follow suite with the same basic decor elements using reindeer, toy soldiers-.rs,
and candy canes as their own identity.
We have also set forth an option to diversify the style of decor elements and to accommodate thehe
existing parking lot structures. We propose giant non-illuminated double pole mounted decoror
elements with complementing 40 ft. of additional pole highlighting garland to identify Lots #(:#6
(double snowflakes), #3 (double parachuting Santa's), #4 (double candles, 1 red, 1 blue) and #,,#5
(stockings).
Complete renderings and photos of the above designs are designated in exhibits 17, 18, 19 and 2020.
Total cost $9,861.16 (revised)
/'-40 JR
-. --
Page 4
We also recommend a simple garland wrap treatment for the median palms (19) to help carry
through the holiday spirit between the sidewalks. We have altered our original sample of white/blue
garland, with a more reflective white silver.
Total cost $2,343.60
Per your request we have included costs for all materials for production, transport, and installation.
We can utilize either photo cells or timers to control the on/off times.
Also included is a provision for the utilization of electrician services over the period of the three day
installation.
Maintenance will be handled on a timely basis as necessary. Dekra-Lite maintenance does not cover
vandalism.
Take down for storage per the requested 1/4/99 and 1/8/99 dates is acceptable.
Machinery is included.
Insurance and related documents provided in your requested format as requested.
As we have discussed the original installation dates to start on December 6. We can begin
installation of the 28 ft. (actually 29 ft. with the revised custom star) sculptured metal tree of lights.
This decor element is installed out of reach's way and will certainly wet the whistles of potential
repeat visitors. The cobra pole decor may be another option to begin prior to the Yule Parade.
We will certainly be open to discussing any other possibilities on November 10 at the 6:00 p.m.
meeting.
Thank you for the opportunity. See enclosures.
JR
~-4(
_. .
CHULA VISTA 1998 HOLIDAY DECOR
CHULA VISTA DOWNTOWN DECOR
&. ENTRY WAY ARCHES PER UNIT EXTENSION
6 5' WHITE SNOWFLAKES W/ LIGHTS $302.50 $1,815.00
2 TAPA UNITS $105.00 $210.00
2 30" X 94" SNOWFLAKE BANNERS $90.00 $180.00
USES EXISTING BRACKETS
2 50' SECTIONS OF WHITE / SILVER REFLECTIVE GARLAND $69.00 $138.00
2 ANCHORING HARDWARE $650.00
SUB $2 993.00
TAX $231.96
LABOR SHIPPING $0.00
2 LABOR, MACHINERY, INSURANCE $325.00 $650.00
TOTAL $3,874.96
{,-1d-.
JREXCELC:CHULA982
_. --
CHULA VISTA 1998 HOLIDAY DECOR
.ê.., THIRD AVENUE ON-SITE LIGHTING DISPLAYS
PETITE STANDARDS: NON ILLUMINATED DECOR
89 SMALL 10' LIGHT STANDARDS W/ SPRAY $138.60 $12,335.40
LARGE LIGHT STANDARDS
31 LARGE 27' COBRA POLES WI LIGHTED DECOR
13 GOLD ZIG ZAG TREES INVENTORY $129.00 $1,677.00
12 GREEN ZIG ZAG TREES (NEW) $159.00 $1,908.00
6 WHITE 5' POLE MOUNTED SNOWFLAKES $159.00 $954.00
31 TAPA UNITS $105.00 $3,255.00
31 WHITE DESIGNER VINYL WRAPS $11.00 $341.00
31 NEW STOCK 30" X 94" BANNERS $90.00 $2,790.00
(USES EXISTING HARDWARE) 25 GIFTS
6 SNOWFLAKES
TRELLISES "PERKELAS"
7 TRELLACES DECORATED AND ILLUMINATED W/
42 STRANDS OF SOLID COLORED MINILIGHTS $5.35 $224.70
PG50M8
THEMED ANIMATED TRELLACE SCENES
1 WAVING DURALITE SNOWMAN 8' W X 8' H 3.25 AMPS $755.00
1 DRUMMING DURALITE TOY SOLDIER 8' H X 4' W 3.1 AMPS $955.00
1 DURALITE SANTA WAVING 6' H X 4' W 2.5 AMPS $755.00
1 WAVING MINILIGHT LIFESIZE ELF 4' W X 4' H 3.5 AMPS $1,200.00
1 MINILIGHT HARLEY SANTA 7' W X 41/2' H 4 AMPS $1,900.00
1 DRUMMING MINI LIGHT ELF 6' W X 3 1/2'H 3.5 AMPS $1,395.00
1 SNOOZINGMINILIGHTSANTA15'WX11'H 4AMPS $1,600.00
SUB $32045.10
TAX $2,483.50
LABOR SHIPPING $430.00
89 INSTALL, REMOVE, AND STORE SMALL POLES $59.00 $5,251.00
33 INSTALL, REMOVE, AND STORE LARGE POLES $99.00 $3,267.00
7 INSTALL AND DISPOSE TRELLACE LIGHTS $840.00
7 INSTALL, REMOVE, AND STORE TRELLACE SCENES $3 465.00
TOTAL $47,781.60
to -13
JREXCELC:CHULA982
T ìT
CHULA VISTA 1998 HOLIDAY DECOR
£, MEMORIAL PARK LIGHTING DISPLAY
OPTION 1
1 GIANT TOY SOLDIERS (ANIMATED) W/ GUARD HOUSE ARCH $5,830.00
FOR NE CORNER OF PARK, 25 AMPS
1 28' ROSEN SILLOUETTE TREE OF LIGHTS ATOP TUNNEL 30 AMPS $3,350.00
1 4' CUSTOM STAR WI COLORED LIGHTS 3 AMPS $395.00
14 TREES ILLUMINATED SURROUNDING FOUNTAIN AREA 23 AMPS
125 COLORED STRANDS OF PG50C6 $5.15 $643.75
180 BUILDING PEREMITER LIGHTING FOR MUSEUM 8 AMPS $890.00
WI GREEN GARLAND
1 SEA ANIMATED SANTA EXPRESS TRAIN 61/2' X 22' 24 AMPS $2,97000
FOR TRELLACE ON SIDE OF MUSEUM
SUB $14078.75
AFOREMENTIONED DRAWS A TOTAL OF 113 AMPS
TAX $1,091.10
SHIPPING $179.00
LABOR
INSTALL, REMOVE, AND STORE ARCHWAY $795.00
INSTALL, REMOVE, AND STORE 28' ROSEN TREE $995.00
INSTALL AND DISPOSE TREE LIGHTS $1,875.00
INSTALL, REMOVE, AND STORE BUILDING LIGHTS / GARLAND $225.00
INSTALL, REMOVE, AND STORE SNATA EXPRESS $795.00
TOTAL $20,033.85
b-..f-t.(
JREXCELC:CHULA982
CHULA VISTA 1998 HOLIDAY DECOR
Q., PUBLIC PARKING LOTS
LOT #2 "TREES" BANNERS
5 30" X 60" RECTANGULAR TREE BANNERS {SINGLES} $154.00 $770.00
5 RECTANGULAR BRACKETING SYSTEMS $85.00 $425.00
LOT#9 "REINDEER" BANNERS
5 30" X 60" TRIANGULAR REINDEER BANNERS {DOUBLES} $154.00 $770.00
5 TRIANGULAR BRACKETING SYSTEMS $90.00 $450.00
lOT #10 "TOY SOLDIERS" BANNERS
8 30" X 60" TRIANGULAR TOY SOLDIER BANNERS {DOUBLES} $154.00 $1,232.00
8 TRIANGULAR BRACKETING SYSTEMS $90.00 $720.00
lOT #8 "CANDY CANE" BANNERS
6 30" X 60" RECTANGULAR CANDY CANE BANNERS {DOUBLES} $75.00 $450.00
6 RECTANGULAR BRACKETING SYSTEMS $85.00 $510.00
I I
lOT #8 "SNOWFLAKES" DOUBLE POLE MOUNTS
2 5' WHITE NON IllUMINATED SNOWFLAKES $272.25 $54450
1 40' SECTION J25 WHITE GARLAND $46.40
lOT #3 "PARACHUTING SANTAS" DOUBLE POLE MOUNTS
2 6' NON IllUMINATED 6' PARACHUTING SANTAS $423.50 $847.00
1 40' SECTION J25 RED GARLAND $46.40
LOT #4 "CANDLES" DOUBLE POLE MOUNTS
2 T NON IllUMINATED CANDLES (1 BLUE /1 RED) $129.00 $258.00
1 40' SECTION J25 WHITE GARLAND $46.40
lOT #5 "STOCKINGS" DOUBLE POLE MOUNTS
2 T NON IllUMINATED STOCKINGS $129.00 $258.00
1 40' SECTION J25 WHITE GARLAND $46.40
SUB $7,420.10
TAX $575.06
SHIPPING $138.00
TOTAL $8133.16
LABOR
24 INSTAll, REMOVE, AND STORE BANNERS $49.00 $1,176.00
8 INSTAll, REMOVE, AND STORE GIANT POLE MOUNTS W/
GARLAND (lOTS 6,3,4,5) $69.00 $552.00
TOTAL $9,861.16
r;, -t/~
JREXCELC:CHULA982
CHULA VISTA 1998 HOLIDAY DECOR
£., ADDITIONAL MEDIAN ENHANCEMENT
19 PALMS W/ WHITE AND BLUE SG1 50' EA $69.00 $1,311.00
TAX $101.60
LABOR SHIPPING $0.00
19 INSTALLATION, REMOVAL, AND STORAGE $49.00 $931.00
TOTAL $2,343.60
~ - '-Iro
JREXCELC:CHULA982
_. --
CHULA VISTA 1998 HOLIDAY DECOR
CHULA VISTA DOWNTOWN DECOR SUMMARY
A. ENTRY WAY ARCHES TOTAL $3,874.96
B. THIRD AVENUE ON-SITE LIGHTING DISPLAYS TOTAL $47,781.60
C. MEMORIAL PARK LIGHTING DISPLAY USING TOTAL $20,033.85
D. PUBLIC PARKING LOTS TOTAL $9,861.16
E. ADDITIONAL MEDIAN ENHANCEMENT TOTAL $2,343.60
ELECTRICIAN FOR INSTALLATION $1 600.00
GRAND TOTAL $85,495.17
{,-cf7
JREXCELC:CHULA982
3041 S. ORANGE AVE. (714) 436-0705
(714) 436-0612 FAX
SANTA ANA, CA 92707 www.dekra-lite.cor
6-3-1 Season Warranty
All displays and accessories will be free from defects. Under normal conditions of use and
service, this protection is extended for six (6) seasons on all steel frames and mounting
hardware, three (3) seasons on all other components except where noted, and one (I)
season on all computerized lighting modules. This warranty does not apply to banners and
bulbs. This warranty is expressly in lieu of all other warranties expressed or implied
Under this warranty, the companies obligation to repair or replace is on a non prorated
basis.
Rough handling or undue vibration in transit may cause bulb damage Therefore, a reserve
quantity will be shipped with each display. Cost of shipping and labor to install are not
included in this warranty. Bulb burnout or electrical damage caused by the buyer or
weather elements are not covered by this warranty. All decorations are shipped in a
reusable corrugated carton.
Acceptance of merchandise by the carrier constitutes delivery by the manufacturer Claims
for goods lost or delayed in transit must be fil1ed by the purchaser within (10) tell days to
the company. Claims for damaged items or shortages due to carriers must be noted on the
freight receipt at time of delivery.
(,-1~
-.. ..
Exhibit 1
E StreetEnfTy
00
A. ENTRY WAY ARCHES .
EStreetEnrtyWa.¡w/5' - : . 2-
Snowflakes, Snowflake Banner (2), . - - - c - -
and Garland Wrap . . ~
. J: 5 30'X60"-
B. THIRD AVENUE ON-SITE LIGHTING DISPI AYS I 405' TRLo\NGUlAA-
. Small 10' poles (89) wi Spray x :;;~:~: - - --
27'coblallghrn(31)w/2cok)f - - . . ~~ ~ I --
X lighted ~G ZAG TREES I SNOW"-^KE - . .~; - - -
&. 8ANNERS wi pole wrap DOUBlE POLE . . -- - --
MOUNTS - :;:: -,-
WüOO trell¡jœ locatkJns w/ seven (71 "PARACHUTING to>
I dlffertent animated dlspays and SANTAS' W GARlAND - ;¡¡
cokJred perlrTjler mini IIghrn L---J
DAVIDSOf,
C, MEMOR~ PARK LIGHTING DISPLAV rD. f}I- ~ , : I
, Animated Toy Soldier Arch ~ --- I ' ~-
5 30"X6Q" ---L I
'- 28' 3D Tree wi RECTANGULAR 630- X 60- ,
'" Custom Colored 4' TREE 8ANNERS .!.. RECTANGUlAR
Star 0 . CANDV CANE
to> , to> - 8ANNERS
/'V Supporting Animated _n- , ,<~ ~
Santa ExpressDlspkJy ----- m ~- --' ---
[!jj¡! Trees Illuminated wi -- . 1- . : - - .
CokJred lIghrn (141 ~ :-=:- x . --~ ;g C
lIIumnatkJnofcomplete " . :c 0 -,-
museum building peremter I. _n-- I ~ ~
D, PUBUC PARKING LOTS I I 2 2
x x x x..xx..x x x G)-I--
. Parldnglotmini poles 15' 0
for5'themed banners(24) . Fix [D r- c:: ~
CLOCK wi x 300' 0 c::
E'.' ,.ADDITIONAL MmAN ENHANCEMENT GARlAND: ~" " - - ,', ~ 2'
~ Medlon Palms wrapped
\II w/gartand(19)v.!1rle/t>ue ',' i ----,
,~ . =-- ~
CENTER ST. . -- ,
CENTER 51,-- ,
,---- ~-- -
145' x ~ ' ~ I 8 30"X6ü" - - -
, ~ C' TRIANGUlAR
I . "'="- ;¡¡ SOLmR -
. ~ 8ANNERS --- '-,
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, Fudrucker's .
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ARCH
LIGHTED TREE
PARK
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t,-L/9
- CHULA VISTA EXHIBIT 2 -
AREA FOR PRESENTATION IS APPROXIMATELY 200 SQUARE
FEET. GIVEN THE 5' SNOWFLAKES, 7.35 AMPS ARE
REQUIRED.
DRAWING IS NOT TO SCALE. ICONS ARE FOR CONCEPT
REPRESENTATION ONLY. ACTUAL BANNER DESIGN AND
SNOWFLAKE IS PICTURED BELOw.
TAPA UNIT FOR 3 AMPS
SILVERI BLUE
GARLAND
WRAP ~~.. 5' SNOWFLAKES
X' DRAW 2.45 AMPS EACH
~~..
~$" ~
17[ ~~~.. 94"
~$" ~ (I
~$" I
I 30" '
PROPOSED BANNER
14' 6"
I
26'
PROPOSED SNOWFLAKE
Copyright 1998 Dekra-Lite
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