HomeMy WebLinkAboutRDA Packet 1998/09/22
Notice is hereby given that the Chairman of the Redevelopment Agency has called and will convene a special meeting
of the Redevelopment Agency on September 22, 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:
~
Tuesday, September 22, 1998 Council Chambers
6:00 p.m. Public Services Building
(immediately following the City Council meeting)
Snecial Meetin~ of the Redevelonmenl A~encv oftbe Citv ofChula Vista
CALL TO ORDER
1. ROLL CALL: Agency Members Moot -, Padilla -,
Rindone -, Salas -, and Chair Horton -
CONSENT ITEMS
(Wm be voted on immediately following the Council Co",ent Calendar during the City Council meeting)
(Items 2 and 3 )
The staff recommendations regarding the folÙJwing item listed under the Consent Calendar will be enacted by the
Agency by one motion withoui discussion unless an Agency member, a member of the public or City staff requests thui
the item be pu/Jedfordiscussion. Qyou wish to speak on one of these items, please fill oui a "Request to Speak Form"
avaiWble in the ÙJbby and submit it to the Secretary of the RedeveÙJpment Agency or the City Clerk prior to the meeting.
Items pu/Jedfrom the Consent Calendar wi" be discussed after Action Items. Items pulled by the public will be the first
items of business.
2. RESOLUfION 1599 APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH
KATZ HOLLIS IN THE AMOUNT OF $27,500 TO PROVIDE
FINANCIAL CONSULTANT SERVICES FOR DEVELOPING A WNG-
TERM AGENCY FINANCIAL STRATEGY AND AUTHORIZING THE
MAYOR TO EXECUI'E SAID AGREEMENT--During the FY 98/99 budget
adoption process, it was recommended that the Agency secure the services of a
financial consultant to assist stJIff in the development of a proactive. well-planned
financial strategy with related fiscal policies. Staff recommends approval of the
resolution. (Commmtity Development Director; Finance Director)
3. RESOUJTION 1600: APPROVING OWNER PARTICIPATION AGREEMENT WITH THE
GREENWALD COMPANY FOR THE DEVELOPMENT OF 76,885
SQUARE FOOT BUILDING AT 675 OXFORD STREET WITHIN THE
SOUTHWEST REDEVEWPMENT PROJECT AREA--The applicant is
proposing to develop an office building on the vacant property located at the west
end of Oxford Street. The proposed building will be occupied by the San Diego
County Fantily Resource Center. On 4/7/98, City Council approved rezoning
of the property from Limited Industrial to Commercial Office; and as part of the
rewDing, adopted a negative dec1arntion considering the development of 200,000
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Agenda -2- September 22, 1998
sq. ft. of office space. On 5/19/98, the Agency approved a Special Use Permit
for the establishment of the San Diego County South Bay Health & HUIllJUI
Services Agency Family Resource Center at the proposed building. Staff
recommends approval of the resolution. (Commmtity Development Director)
ITEMS PULLED FROM THE CONSENT CALENDAR
This is the time the Redevelopment Agency will discuss items which have been removed from the Consent Calendar.
Agenda items pulled uJ the request of the public will be considered prior to those pulled by Agency Members.
ORAl, COMMUNICATIONS
This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within the
Agency'sjurisdiction that is U!I/. an item on this agenda. (State law, however, generally prohibits the RedeveÙJpment
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 ÙJbby 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 andfollow up action.
OTHER BUSINESS
4. DmECTOR'S REPORTtS\
5. CHAm'S REPORTtS\
6. AGENCY MEMBER COMMENTS
ADJOURNMENT
The meeting will adjourn to the Regular Redevelopment Agency Meeting on October 6, 1998 at 4:00 p.m., inunediately
following the City Council meeting, in the City Council Chambers.
REDEVELOPMENT AGENCY AGENDA STATEMENT
Item~
Meeting Date 09/22/98
ITEM TITLE: RESOLUTION /5'11 APPROVING A PROFESSIONAL SERVICES
AGREEMENT WITH KATZ HOlLIS IN THE AMOUNT OF $27,500 TO PROVIOE
FINANCIAL CONSULTANT SERVICES FOR DEVElOPING A LONG. TERM AGENCY
FINANCIAL STRATEGY AND AUTHORIZING THE MAYOR TO EXECUTE SAID
AGREEMENT
SUBMITTED BY: O;'OC,", . C......., D"'~
Director of Finance
REVIEWED BY: Executive Direc~ ~ /JI (4/5ths Vote: Yes- NoX)
BACKGROUND:
The financial condition of the Redevelopment Agency has been the subject of concern for the past several years
given the general downturn in the economy which resulted in Agency revenues not keeping pace with project
implementation demands. In response, the Agency embarked upon a short-term remedy of selling non.essential
assets while also cutting back on operating expenditures and reducing unfunded CIP obligations.
Ouring the FY 98.99 budget adoption process, it was recommended that the Agency secure the services of a
financial consultant to assist staff in the development of a long range financial strategy. It appears that the
timing is right in that Chula Vista is well positioned to take advantage of the improving regional economy. There
are positive signs that long expected development in the Bayfront may finally emerge and the Otay Valley
development future looks bright.
The purpose of the strategy is to evaluate achievable tax increment revenue streams against existing short-term
and long-term debt obligations (including debt refinancing opportunities) and assist staff in developing a proactive,
well planned financial strategy with related fiscal policies. Staff has followed the consultant selection process
and is presenting the proposed contract with Katz Hollis in the amount of $27,500 for approval.
RECOMMENDATION: It is recommended that the Agency approve the contract with Katz Hollis in the
amount of $27,500 to provide financial consultant services and authorize the Mayor to execute same.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
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Page 2. Item c:2
Meeting Date 09/22/98
DISCUSSION:
To the extent possible, the financial strategy is to incorporate policies that: a) ensure an annual revenue benefit
to the General Fund; b) provide for regular repayments of Agency inter.fund loans and c) identify remaining
available revenue for completing redevelopment of the project areas. The scope of work also includes special
attention to the revenue implications of the SOG&E and Otay landfill sites.
Request for Proposals (RFP) were provided to a number of qualified firms having specific expertise in
redevelopment finance. Seven (7) proposals were received and evaluated by a selection committee comprised of
the Director of Community Development. Assistant Director of Community Development and the Director of
Finance. The seven (7) respondents are listed below alphabetically:
1) Evensen Dodge, Inc.
2) Katz Hollis
3) Kelling, Northcross & Nobriga
4) Kosmont & Associates
5) Public Financial Management
6) Rod Gunn Associates
7) Sutro & Company
The proposals were reviewed and evaluated by the Selection Committee based on the following criteria:
1. Firm's past record of performance and expertise in financing redevelopment projects.
2. Thoroughness of proposal and thoughtfulness in the approach to solve difficult and complex public fiscal
and financing issues.
3. Evaluation of personnel assigned to the project.
4. Capacity of commitment of staff resources to perform the work in an efficient and timely manner.
5. Cost Proposal.
Of the proposals received, three (3) were selected for interviews: Katz Hollis, Rod Gunn Associates, and Kelling,
Northcross & Nobriga. After completing the interview process, Katz Hollis was the unanimous choice of the
committee. Their written proposal is provided as an attachment for your information.
Katz Hollis has an excellent reputation in the redevelopment finance industry. Their proposal and interview clearly
demonstrated that they were the superior firm in understanding and resolving complex redevelopment financing
issues along with recent experience on similar projects. Additionally, as part of their presentation, Katz Hollis
advanced the idea of merging the project areas (for financial purposes only) in order to create additional financing
flexibility and eliminate the inter.fund loans between the project areas. This idea appears to have merit and will
be analyzed carefully and completely as part of the work program for this project. Katz Hollis has not provided
professional services to the City or Agency within the last twelve (12) months.
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Page 3. Item :L.
Meeting Date 09/22/98
The cost proposal from Katz Hollis was $25,000 exclusive of reimbursable out of pocket expenses. The
reimbursable expenses have been capped at 10% of the contract amount or $2,500. Although Katz Hollis was
higher than the other two, (KNN at $20,000 and RGA at $10,000) the selection committee was unanimous in
the opinion that Katz Hollis was the best qualified firm for this project and the additional cost will be reflected
in the sllperior quality of their work product when the project is complete. Katz Hollis has recent experience
working on similar redevelopment financial planningfstructuring projects and the key staff assigned to those
projects will also be working on this project. It is felt that this project has a high degree of complexity and
therefore requires the level of sophistication that Katz Hollis provides.
Work Plan and Time Line
As provided in their proposal, Katz Hollis will perform the following tasks:
1. Tax Increment Revenue Projections (including build out development scenarios)
2. Evaluate existing structured debt and potential restructuring opportunities
3. Evaluate the existing Agency financial condition, including Agency inter-fund loans
4. Develop a financing plan providing for repayment of Agency indebtedness and implementation of
redevelopment objectives
5. Provide a final report and make a presentation to the AgencyfCouncil
It is currently proposed that the project can be completed within 90 days and therefore, staff currently estimates
that a report to Council could be provided by the end of January or early February.
FISCAL IMPACT: Adoption of the resolution will authorize the encumbrance of $27,500 from the existing
Bayfront/Town Centre I, Town Center II, and Otay Valley Road budgeted professional services accounts.
Attachment 1 . Katz Hollis Proposal
Attachment 2 - Contract
IlHI H,\HOME\COMMOEVISTAFf.REP\O9.22-98\Katz,HoIlISeptember 16, 1998 14,16pmll
02-3
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RESOLUTION NO. Is9Q
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA APPROVING A PROFESSIONAL SERVICES
AGREEMENT WITH KATZ HOLLIS IN THE AMOUNT OF $27,500 TO
PROVIDE FINANCIAL CONSULTANT SERVICES FOR DEVELOPING
A LONG-TERM AGENCY FINANCIAL STRATEGY
WHEREAS, the Redevelopment Agency of the City of Chula Vista ("Agency") requires
the services of a professional financial consultant to assist in the development of a long-range financial
plan; and
WHEREAS, the Agency conducted a selection process as required by ordinance and
determined that Katz Hollis ("Consultant") is the best qualified firm proposing to serve the Agency in this
capacity as a result of said process; and
WHEREAS, Agency staff has negotiated a Professional Services Agreement
("Agreement") with Consultant and presented it to the Agency Board for consideration.
NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of Chula
Vista does hereby (1) approve the Agreement with Katz Hollis in substantially the form presented and
authorizes and directs the Chair to execute a final form thereof approved by the Agency Attorney; and
(2) approve the funding of the Agreement from the Bayfront, Town Centre II and Otay Valley Road
professional services accounts as staff deems appropriate.
Presented by Approved as to form by
~ ~
Chris Salomone
Director of Community Development
[(LH) M\HOMElCOMMOEVIRESOS\KATZHOLLIS (S",t"mb.. 17, 1998 ('S90m)]
d-4-
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ATTACHMENT 1
Katz Holl is
PROPOSAL TO PROVIDE
FINANCIAL CONSULTANT SERVICES
for the
CHULA VISTA
REDEVELOPMENT AGENCY
Submitted July 16, 1998
By
Katz Hollis
865 South Figueroa, Suite 1300
Los Angeles, Callfomia 90017
Phone: (213) 629-3065
Fax: (213) 623-9105
110 Sutter Street, Suite 502
San Francisco, Callfomla 94104
Phone: (415) 399-6889
Fax: (415) 399-9140
3300 Douglas Boulevard, Suite 265
Rosevllie, Callfomla 95661
Phone: (916) 774-6453
Fax: (916) 774-6473
8001<1.',.. .:2 - ::d
0716981jw
Katz Hollis
Financial Consu~ant Services Proposal
submitted to the
Chula Vista Redevelopment Agency
July 16, 1998
TABLE OF CONTENTS
Paae
A. EXECUTIVE SUMMARY.....,..,...............~.......................,................1
B. PROPOSER INFORMATION ................,.........................................1
. Proposer Contact ..............,............................................,..."...1
. Project Management I Key Personnel.................................... 2
. Qualifications........................................................................... 2
. References............................................................................... 7
C. TECHNICAL PROPOSAL............................................................... 8
D. COST PROPOSAL....................................................................... 11
E. PROJECT SCHEDULE ..........,.............................................,........11
F. CONTRACT EXCEPTIONS ............................................,....,........12
ATTACHMENTS: I. Public Agency Client List
II. Bond Services Client List
III, Resumes
"lOtcl."'" .;2-6
0716981jw
r ~r
Katz Hollis
Financial Consultant Services Proposal
submitted to the
Chula Vista Redevelopment Agency
July 16, 1998
A. EXECUTIVE SUMMARY
The Chula Vista Redevelopment Agency (Agency) is requesting qualifications and a
proposal from consultants to provide financial services for the development of a long-
term financial strategy. Specifically, the Agency is requesting a consultant to evaluate
the Agency's current financial condition; provide tax increment projections for the
BayfrontfIown Center, Town Center II, Otay Valley Road and Southwest Project Areas
(Project Areas); project future tax increments available from development of the Otay
landfill and the conversion of the SDG & E site to other uses; and develop a plan to
repay current inter-Agency and City loans. In addition, the Agency may require
transactional services related to the refmancing or issuance of bonds, notes or other
structured financial vehicles. Katz Hollis is pleased to provide this Statement of
Qualifications (SOQ) and proposal to the Agency to provide such services.
This Response to the Agency's Request for Qualifications sets forth Katz Hollis
experience with redevelopment and providing services similar to those requested by
Chula Vista. Katz Hollis is a full service fmancial advisory firm specializing in
redevelopment. The firm has all of capabilities and experience necessary to complete
the requested financing strategy and additional capabilities including the ability to act as
a financial advisor for specific transactions.
Based on the recent completion of a similar fmancial planning process for the
Community Development Commission of the City of Alameda, discussion's with
Agency staff and the Agency's Request for Qualifications, we would propose the
following tasks for this assignment:
I) Tax Increment Revenue Projections for all four Project Areas
2) Evaluation of existing structured debt and opportunities for restructuring
3) Evaluation of the existing Agency financial condition, including inter-Agency and
City-Agency loans
4) Development of financing plan providing for the repayment of Agency indebtedness
indebtedness and implementation of the redevelopment objectives for each Project
Area
Specific information on each task is included in Section C, technical proposal herein.
B. PROPOSER INFORMATION
. Proposer Contact
Donald J. Fraser, Vice President of Katz Hollis, will be the primary contact for questions
about the proposal. Mr. Fraser can be reached at (213) 629-3065.
~-7 Pagel
Katz Holl Is
Financial Consultant Services Proposal
submitted to the
Chula VIsta Redevelopment Agency
July 16, 1998
. Project Management I Key Personnel
Donald J. Fraser, Vice President of Katz Hollis, will act as team leader. Mr. Fraser will
work with the Agency staff to prepare a specific scope of services and supervise the team
members. Mr. Fraser will be assisted by Stephanie Smith Lovette, Senior Associate,
Lawrence J. Arceneaux, President of Katz Hollis, will also participate in scoping the
assignment and providing review and ideas based on his extensive experience in
redevelopment.
Stephanie Smith Lovette, Senior Associate, will assist Mr. Fraser in the area of
structured financing. Her responsibilities will include evaluating existing Agency
bonded indebtedness for restructuring opportunities and providing analysis on the
opportunities for new debt issuance.
Mr. Fraser and Mr. Lovette were the staff assigned to the redevelopment analyses in
Alameda, Reedley and Vallejo, which were all assignments similar to the suggested
scope of services for Chula Vista. Based on our experience in those communities, it is
anticipated that Mr. Fraser's portion of the assignment will be approximately 60 percent
and Ms. Lovette's portion will be approximately 40 percent. If the Agency chooses to
proceed with transactional services for the structured debt, Ms. Lovette's involvement
will be increased.
Complete resumes for each team member are included in Attachment III. Other Katz
Hollis staff, including associates and analysts will be utilized on this assignment.
We are not anticipating utilizing any subconsultants on this assignment.
. Qualifications
Founded in 1978, Katz Hollis has established itself as one of the leading redevelopment
consulting [innS in the state of California. Katz Hollis has successfully assisted over 180
client organizations throughout the United States. Clients are primarily redevelopment
agencies and include major metropolitan centers such as Los Angeles, San Francisco,
Sacramento, Anaheim and Long Beach, as well as less populous California communities
such as Soledad and Napa. Katz Hollis public agency client list, Attachment I to this
SOQ, includes cities, counties and school districts.
Katz Hollis is in a position to offer the Agency years of working experience and
technical expertise. Katz Hollis specializes in providing in-depth financial analysis and
planning services to redevelopment agencies. The firm is unique among financial
consulting firms serving public agencies because of our knowledge and experience in all
aspects of the redevelopment process.
Katz Hollis' services are structured to provide strategic and technical support over the
full span of a redevelopment effort, from plan adoption to site development. The
following general categories are a brief description of services available.
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Page 2
Katz Holl Is
Financial Consultant Services Proposal
submitted to the
Chula Vista Redevelopment Agency
July 16,1998
Fiscal Management and Administrative Services. Involvement in the planning and
execution of the financial and fiscal aspects of a revitalization effort, and assistance with
compliance with State law and local agreements.
Financial Advisory Services, Revenue estimates, including analysis of liabilities/
obligations and of fiscal/structural elements of bond issuance. Preparation of marketing
documents, rating agency/insurer presentations, ongoing disclosure services. Pricing
analysis/verification for negotiated sales and soliciting, analyzing and awarding bids for
competitive sales.
Property Tax Analysis Services, Monitoring, verification and projection of reported
taxable values and tax revenue, tax sharing agreements and developer payments, and
assessment appeals analysis.
Real Estate Development Services. Assistance with a full range of project
development services beginning with preliminary analysis of site feasibility and
culminating in land transfer and implementation of the construction of improvements.
Plan Adoption Services. Various levels of assistance in project fonnation or
modification, from preparation of specific documents to full coordination and staffing of
a redevelopment plan adoption! community participation process.
Environmental Services. Full environmental assessment services including preparation
of negative declarations, environmental impact reports and mitigation monitoring
programs.
Legislative Services. Analysis of the impact of proposed or newly enacted legislation
on specific projects and on the redevelopment field generally.
Specific Background and Experience
Katz Hollis is a full-service financial advisory finn with a different focus than other
financial advisory finns. Katz Hollis specializes in redevelopment and tax increment
financing. Katz Hollis is unique among financial advisory finns in that our services to a
public agency are not focused on (and limited to) specific bond transactions.
The assignments shown below provide an indication of the value that Katz Hollis can
provide for the implementation activities of redevelopment agencies.
Tax Increment Analysis and Financial Plannlng/Structurlng
Tax increment analysis and financial planning services include revenue verification and
analysis, financial planning and administrative tasks. The analysis provided by Katz
Hollis on Agency resources and obligations is often utilized for Agency financial
planning, including planning for debt issuance. The analysis can also show that a
traditional tax allocation financing is premature or will not be marketable without
additional resources. In these s,ituations, Katz Hollis works with staff and the fmance
team to develop financings that are salable to the credit markets.
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Page 3
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Katz Holl is
Financial Consu~ant Services Proposal
submitted to the
Chula Vista Redevelopment Agency
July 16, 1998
The objective of pre-bond services is to establish the Agency's capacity to undertake
structure financing, provide alternatives to bond issuance, and assure that all legal and
administrative actions and reporting requirements required by the California Community
Redevelopment Law (CRL) have been undertaken.
Several examples of Katz Hollis' financial planning/structuring services are described
below.
Community Improvement Commission of the City of Alameda: Business/
Waterfront and West End Project Areas. Katz Hollis was retained by the Agency to
develop a financial plan that would allow for the repayment of City loans with minimal
disruption of the Agency's implementation activities, The Commission's tax increment
was utilized to fund current programs, direct Commission administrative costs, indirect
City costs and repayment of current and prior City loans. As is common with
redevelopment agencies, the City annually advanced the Commission's annual budget
and was repaid by tax increment. The combination of the Commission's obligations
exceeded current revenues, necessitating additional borrowings from the City. The
additional interest costs further exacerbated the situation.
Katz Hollis' assignment was to develop a mutually acceptable financing plan to repay
the debt and allow the Agency to be self-sufficient. The eventual plan included an
analysis of the Agency's current and future obligations and projected revenues, the
development of loan repayment interest rate alternatives, an analysis of resource
capitalization in the form of bonds to partially repay the debt and the development of a
loan forgiveness program based on the City infrastructure projects the Agency had
undertaken. Katz Hollis also provided a survey of the loan and repayment practices of
other redevelopment agencies. We worked with the City's Auditor to assure that the
financial plan and the reorganization we were proposing was implementable and would
not result in a qualified auditor's opinion for either the City or the Agency. The plan
was presented in written and oral format to the City Council.
South Tahoe Redevelopment Agency: Project No. 1. Katz Hollis has been working
with the Agency on the overall financing and planning for implementation of several
specific development proposals. These development proposals included the acquisition
and consolidation of certain parcels in the Project Area and the development of a hotel
and parking structure. The Agency also assisted in the Project Area implementation with
public improvements. In order to allow those development proposals to move forward,
ultimately with parity debt financing, Katz Hollis assisted the underwriter in developing
a structure for refunding the outstanding Agency bonds. Katz Hollis provided a Fiscal
Consultant's Report which included tax increment and transient occupancy tax revenue
projections under alternative development scenarios in order to provide the rating
agencies and bond insurers with both best and worst case scenarios. The refunding bond
issue was completed in late 1995 and ultimately received an investment grade rating. As
a follow-up, Katz Hollis assisted in the issuance of bond anticipation notes in 1996 to
finance project activities needed to allow a specific development to move forward.
Foster City Community Development Agency: Foster City Project Area, Katz
Hollis assisted the Agency through the provision of financial planning and bond services.
The Redevelopment Plan's authority for the issuance of debt for the Project Area was
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Page 4
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Katz Hollis
Financial Consultant Services Proposal
submitted to the
Chula Vtsta Redevelopment Agency
July 16, 1998
nearing its expiration date. Katz Hollis provided detailed cash flow planning for both
the Agency's final bond issue and also for all Agency activities and obligations,
including an additional City loan to fully leverage the Agency's tax increment flow
under its cap.
Anaheim Redevelopment Agency: Alpha Project Area, Katz Hollis was involved in
providing comprehensive financial consultant services for the Alpha Project Area.
Through Katz Hollis' detailed analysis of the Project Area's tax increment revenue
stream, it was found that the base year value in the Project had increased from 1995-96
to 1996-97 by approximately $1.2 million. Upon further research it was found that it is
the current policy of Orange County to reduce the base year for a Malaki adjustment
immediately following the purchase of Project property by a public entity, regardless of
the "permanence" related to the acquisition. In turn, the County immediately restores
the base year value of this property when it is transferred into "taxable" ownership. Katz
Hollis was able to identify one major development site that was acquired by the Agency
and transferred to a private developer for the construction of a large residential
development. This public acquisition and following transfer had resulted in a base year
reduction and following increase. This explanation, as well as Katz Hollis' ability to
support assumptions of assessment appeal activity within the Project based on detailed
historical and current year research, assisted in mitigating concerns expressed by the
insurance companies related to a pending sale ofbonds.
Tax Increment Analysis
Culver City: All Project Areas, Katz Hollis has historically provided the Agency with
a five-year cash flow portrayal of Agency resources and obligations so as to reflect the
multi-year effects of decisions made by or pending before the Agency for each of their
redevelopment project areas. This analysis consists of a portrayal of existing obligations
and their relationships to each other and to anticipated Project resources. Due to the high
volume of assessment appeals recently impacting most agencies' revenues, the major
effort involved in anticipating tax increment revenue is estimating the impact of resolved
and pending assessment appeals within the Projects. More than just identifying the filed
appeals, Katz Hollis tracks the major appeals in each Project from their filing, through
their review, to their resolution and reflects their estimated impact in a tax increment
revenue projection for each Project. Katz Hollis updates the tax increment projections
for each Project quarterly, based on updated information on the status of appeals within
the Project, so that the Agency decisions are based on the most current "real world"
information available.
Bond Experience
Katz Hollis has participated in the issuance of over $6 Billion in taxable and tax-exempt
debt supported by tax increment. As discussed in the previous section, the focus of our
efforts in these assignments has been the analysis of Agency' revenues and obligations
and assisting in the structuring of the obligation to assure the implementation of the
Agency's programs is not negatively impacted by the bonds.
The work undertaken to identify current and future Agency revenues and obligations is
distilled into a Fiscal Consultant's Report. This Report provides information on the
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Page 5
Katz Hollis
Financial Consultant Services Proposal
submitted to the
Chula Vista Redevelopment Agency
July 16, 1998
Agency, the Agency's financial obligations and resources, and the composition of the tax
base of the Project Area. In addition, the Report provides information on the Agency's
compliance with certain requirements of the Community Redevelopment Law and the
impact of current or future legislation on redevelopment and the specific Agency. This
Report is often included as an appendix to the Official Statement for a bond issue.
Our expertise in the area of tax increment financing has been recognized by the industry.
Katz Hollis staff is often requested to provide information and training on tax increment
to public agency staff, elected officials and market participants. Our speaking
engagements have included sessions for the League of California Cities, a national
training for the Government Finance Officers Association, the California Redevelopment
Association and the bond rating agencies.
Examples of Katz Hollis' Financial Advisory services are presented below.
Reedley Redevelopment Agency: ReedIey Redevelopment Project. Katz Hollis
served as financial advisor to the Agency on their first rated bond issue. Katz Hollis was
retained to analyze the Agency's financial situation and recommend strategies to
eliminate short term, interest only tax-exempt and taxable notes that were issued by the
Agency. The Agency Board and the community were concerned that the Agency was
overextended and would not be able to implement the redevelopment plan. To address
this concern, the Agency also requested assistance in developing programs to implement
the redevelopment plan and reduce the taxable portion of the notes.
Katz Hollis prepared the required analysis and presented their findings to the Agency
Board and the community in a series of public meetings. We recommended that the
Agency refinance the note with a long term, fully amortized tax allocation bond issue.
Katz Hollis then prepared a recommendation on the type of sale and projected debt
service schedules and rating agency requirements. The Agency Board chose to pursue a
negotiated sale and Katz Hollis solicited and evaluated underwriter proposals. Katz
Hollis staff assisted the Agency staff in the rating agency presentation by preparing a
model presentation and providing practice sessions for the staff and Agency Board
members. The firm also qualified the issue for bond insurance and provided an analysis
of the insurer requirements on current and future agency programs. This analysis
included tax increment projections that showed that the higher than anticipated
additional bonds test would not impact the timing of the Agency's projected second bond
Issuance.
Redwood City Redevelopment Agency: Project Area No.2. Katz Hollis served as
both financial advisor and fiscal consultant on the Agency's refunding bonds. Katz
Hollis provided assistance to the financing team in structuring the issue. Services
included review of the marketing documents to assure that all of the information related
to the Community Redevelopment Law, the Tax and Taxation Code, and legislative
proposals and court decisions regarding redevelopment were correct and up to date. The
firm also provided analysis on the Agency's current financial condition, revenue
projections, revenue attributable to new development, and compliance with State law and
the Redevelopment Plan. The firm also analyzed the County's system for tax increment
allocation and quantified the impact of pending and recently resolved assessment
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Page 6
Katz Holl is
Financial Consultant Services Proposal
submitted to the
Chula Vasta Redevelopment Agency
July 16, 1998
appeals. The results of this analysis were contained in a Fiscal Consultant's Report,
which was printed as an Appendix to the Preliminary and Final Official Statements.
As financial advisor, Katz Hollis prepared the presentation for the rating agency and
bond insurers and provided analysis to the Agency on the impact of different bond
insurer requirements. We also prepared a report on the Agency's tax increment revenue
flow to assure that the bond payment schedule accurately reflected the Agency's receipt
of tax increment. As part of the sale, Katz Hollis prepared a pre-pricing report for the
Agency board.
. References
The following represents a short list of references for Katz Hollis' services.
Los Angeles Community Redevelopment Agency
Mr. Peirre Lorenger, Deputy Administrator
354 South Spring Street, Suite 800
Los Angeles, California 90013
(213) 977-1890
Financial analysis and bond services
Alameda Community Improvement Commission
Mr. Jeff Bond, Development Specialist
1701 Webster
Alameda, California 94501
(510) 747-4700
Financial analysis and development of scenarios to repay Agency debt to City.
National City Community Development Commission
Mr. Paul Desrochers, Executive Director
140 East 12th Street, Suite B
National City, California 91950
(619) 336-4250
Financial analysis and fiscal consulting in support of a bond issue.
Reedley Redevelopment Agency
Ms. Lori aken, Finance Director
1717 Ninth Street
Reedley, California 93654
(209) 637-4200
Financial advisory services and financial analysis.
~-(3
Page 7
Katz Hollis
Financial ConsuUanl Services Proposal
submitted 10 the
Chula Vista Redevelopment Agency
July 16, 1998
Vallejo Redevelopment Agency
Mr. Craig Whittom, Economic Development Program Manager
555 Santa Clara Street
Vallejo, California 94590
(707) 648-4444
Financial analysis in support of a development project, including bond
restructuring.
C, TECHNICAL PROPOSAL
In our experience there are two types of firms that can provide services like those
requested by the Agency. The first are planning, economic or real estate firms and the
second are traditional financial advisory firms. The planning, economic or real estate
firms generally provide financial planning for specific development projects. The
problem is that most of these firms are not involved in actual redevelopment plan
implementation and their studies often reflect a lack of understanding of the nuances of
redevelopment agency funding and the relationships between project areas, the agency
and the city.
Financial advisory work has generally come to mean representing a public agency during
a transaction, specifically a bond sale. This transactional oriented work is very useful to
assure the Agency is receiving a competitive price for their bonds but does not provide
analysis on whether a bond issue is required, other financing alternatives and how the
bond issue will impact current and future plans for the redevelopment plan
implementation.
Katz Hollis combines the strengths of both planning and economic firms as well as
financial advisory firms. In addition we provide technical expertise in redevelopment
not found in these ftrms. As a financial advisor, we can provide a financing plan
reflecting market conditions and that can be utilized for project implementation. Katz
Hollis also has the technical capabilities to provide services to the Agency over the full
plan implementation, not only bond sale. The firm has a unique understanding of the
variances and special nature of tax increment and the difficulties inherent in utilizing and
managing this funding source. This understanding has been developed over our twenty-
year history and our involvement in over 250 bonds secured by tax increment. Our
experience within and outside of California provides our staff with a broad exposure to
the different administrative and financial structures of redevelopment agencies.
Our approach to this assignment will be to complete the following tasks:
1. Tax Increment revenue projection
Katz Hollis will prepare tax increment revenue projections for each of the four Project
Areas and for the value added by the proposed new development. New development
will include the potential developments at the Otay landfill and the SDG & E site
disposal and development. These tax increment revenue projections will provide
independent analysis of the developer's estimates of taxable value of their development,
dJ-/<I
Page 8
_..
Katz Holl Is
Financial Consultant Services Proposal
submitted to the
Chula Vtsta Redevelopment Agency
July 16, 1998
including land acquisition and disposition schedules in connection with proposed
development. Existing liens on the Agency's tax increment revenue stream will also be
identified and estimated. The impact of recently stipulated and outstanding appeals on
the Agency's tax increment will also be detennined. The tax increment projection will
also include a review of each Project's Redevelopment Plan. This review is to assure the
Plans will not hinder the proposed project implementation. The revenue projections
would be provided in a tabular fonnat.
Prior to projecting revenues from the Otay landfill development, Katz Hollis will
research the impact of the de-annexation from the City to the county. This review is to
assure that the Agency will continue to receive tax increment from the landfill. We will
also research any hindrances on the conversion of the SDG & E site or any special
legislation or State Board of Equalization practice that would impact the Agency's
ability to receive revenue from that site.
Task one represents approximately 15 percent of the work effort.
2. Evaluation of existing structured debt and opportunities for
restructuring
This portion of the work will be undertaken simultaneously with task one. Katz Hollis
will evaluate the Agency's existing structured debt and make recommendations on the
opportunities and desirability of restructuring all or a portion of that debt. This analysis
will provide both the traditional full and/or partially refunding schedules to show net
present value savings to the Agency and an analysis of how the restructuring will fit into
the Agency's implementation program.
The debt restructuring components and the Agency's planned programs will be
compared to the tax increment revenues on a cash flow basis. This analysis often
provides additional infonnation that is not available when addressing each component
individually. This is an area in which Katz Hollis experience with redevelopment
implementation can be invaluable, Many traditional financial advisors only look at the
refunding analysis without taking into consideration the full scope of Agency activities.
This can result in restrictive bond covenants or added issuance expense when a refunding
is undertaken and a year later the Agency undertakes a bond issue to raise new money.
Task two represents approximately 15 percent of the work effort.
3, Evaluation of existing Agency financial condition, including Inter-
Agency and City-Agency loans
This portion of the work will be undertaken concurrently with tasks one and two. The
work will include an analysis of the Agency's current financial condition to ascertain
any obligations or unusual situations which could impact the analysis undertaken in tasks
one and two. Katz Hollis will review the Agency's outstanding loans with the City and
incorporate a repayment schedule within the Project cash flow identified in Task 2.
c:2-IS-
Page 9
Katz Holl Is
Financial Consultant Services Proposal
submitted to the
Chula Vista Redevelopment Agency
July 16, 1998
Katz Hollis staff will utilize their broad knowledge of redevelopment agency practices to
provide recommendations on practices of other agencies which Chula Vista may desire
to utilize.
At the conclusion oftask three, Katz Hollis will provide the relevant findings in a tabular
format (cash flow projection) with a brief oral explanation of the methodology utilized to
prepare the analysis. We will then work with staff to develop a recommended plan of
action based on the findings.
Task three represents approximately 30 percent of the work effort.
4. Development of a financing plan providing for the repayment of
Agency indebtedness and implementation of the redevelopment
objectives for each Project Area
Working with staff, Katz Hollis will develop a financing strategy based on the
information and findings developed in tasks one through three. The objective of the
financing strategy will be to provide an annual revenue stream to the City General Fund,
and to provide adequate resources and repayments to continue to implement
redevelopment and make the Project Areas whole at the end of the redevelopment plans.
Staff desires this financial strategy to provide a template for current and future Agency
activities and govern the relationship between the Project Areas. As discussed in task
two, Katz Hollis' experience in redevelopment will assist the staff in crafting a plan that
is advantageous for the long term and not just focused on short term benefits.
Katz Hollis will also work with staff to develop the policies to implement the financing
strategy.
Completion of the financing strategy, Task 4, represents approximately 30 percent of the
work effort.
5. Report and presentation to Agency/Council
Katz Hollis will prepare a Report for presentation to the Agency Board that will describe
the analyses conducted, the findings, and recommendations as detailed in above tasks
one through four.
Katz Hollis will attend a meeting of the Agency Board to make a formal presentation of
our work effort, the findings, recommendations and financing strategy. We will also
assist staff in presenting the recommended implementation policies to the Agency Board.
At the conclusion of our presentation to the Agency Board, 100 percent of the work will
be completed and delivered.
.;2. -( '"
Page 1 0
Katz Holl is
Financial Consultant Services Proposal
submitted to the
Chula VIsta Redevelopment Agency
July 16, 1998
D. COST PROPOSAL
Katz Hollis proposes to be compensated on the basis of a fixed-fee of Twenty Five
Thousand Dollars ($25,000), exclusive of reimbursable expenses. Said fee shall be
payable on a percentage completion basis.
The Agency will compensate Katz Hollis for out-of-pocket expenses incurred by Katz
Hollis in connection with services performed hereunder at an amount equal to 110
percent of the following schedule:
Incurred Expenses: by an amount equal to actual incurred expenses.
Automobile Mileage: at the current rate allowed by the Internal Revenue
Service
Photocopies: at the rate of $0.10 per page for each document copy in
excess of five document copies.
"Incurred expenses" include, but are not limited to, authorized travel by common carrier,
long distance telephone calls, commercial reproduction, assessment map and roll
acquisition or reproduction, shipping and messenger services and other similar expenses.
Incurred expenses do not include normal overhead expenses.
E. PROJECT SCHEDULE
Based on previous experience, we believe the 90-day project schedule is reasonable,
assuming all relevant information is provided in a timely manner by the Agency.
We suggest the following schedule for this assignment. The actual time schedule will be
negotiated with staff upon contract approval. Although the following tasks appear in
sequential order, tasks 1 and 2 will be conducted concurrently.
Task 1 Revenue projections to be provided within 30 days of receipt of necessary
information from the Agency and the County.
Task 2 Analysis of debt structuring opportunities and initial cash flow to be provided to
staff within 30 days of receiving the information from the Agency.
Task 3 Evaluation of existing Agency financial condition to be provided in a tabular
format (updated cash flow) within 2 weeks of delivery of the revenue projections and
debt analysis from tasks 1 and 2.
Task 4 Draft plan delivered to agency staff in tabular format with appropriate graphics
and summary findings and recommendations within 60 days of receipt of the necessary
information from the Agency. Final plan to be delivered within two weeks of receipt of
staff comments on draft plan.
Task 5 Presentation to the Agency Board is anticipated to occur within 15 days of the
delivery of the documents set forth in task 4.
ó2-/7
Page 11
-. .. --
Katz Holl Is
Financial Consultant Services Proposal
submitted to the
Chula Vista Redevelopment Agency
July 16, 1998
F. CONTRACT EXCEPTIONS
If selected for services, Katz Hollis will request a waiver of the following items:
Cross Liability Coverage
Security for Performance
Liquidated Damages
We will also request a change of language in the Hold Harmless provision as follows:
"... arising out of the negligence or willful misconduct of the Consultant, ... in
connection with the execution of the work covered by this Agreement..."
c2~/<¡j'
Page 12
-- -
Katz Holl is
Attachment I
Public Agency Client List
~-IC¡
-.. - --
Katz Hollis
Redevelopment Consultants
Public Agency Clients -- ì~ City of Downey
Duarte Redevelopment Agency
Agoura Hills Redevelopment Agency
Alameda Redevelopment Agency East Palo Alto Redevelopment Agency
865 South Figueroa #1300 Alhambra Redevelopment Agency EI Cerrito Redevelopment Agency
American Canyon Redevelopment Agency EI Dorado County Redevelopment Agency
Los Angeles, CA 90017 Anaheim Redevelopment Agency EI Monte Redevelopment Agency
Apple Valley Redevelopment Agency City of Emeryville
110SutierSt.,Ste502 Arcadia Redevelopment Agency Emeryville Redevelopment Agency
San Francisco, CA 94104 City of Arcata Escondido Redevelopment Agency
Avalon Comm. Improvement Agency Eureka Redevelopment Agency
3300 Douglas Blvd. #265 Azusa Redevelopment Agency
Fairfield Redevelopment Agency
Roseville, CA 95661 Bakersfield Redevelopment Agency City of Fillmore
Baldwin Park Redevelopment Agency Fillmore Redevelopment Agency
Bell Community Redevelopment Agency City of Folsom
Bell Gardens Redevelopment Agency Folsom Redevelopment Agency
Brea Redevelopment Agency Fontana Redevelopment Agency
Brentwood Redevelopment Agency Foster City Community Development
Brisbane Redevelopment Agency Agency
Burbank Redevelopment Agency Fresno Redevelopment Agency
Burlingame Unified School District Fullerton Redevelopment Agency
Califomia Industrial Development Garden Grove Redevelopment Agency
Advisory Commission Glendale Redevelopment Agency
California Passenger Rail Financing Glendora Redevelopment Agency
Commission Grand Terrace Redevelopment Agency
Office of Calrlomia Stale Treasurer Grass Valley Redevelopment Agency
City of Campbell
Campbell Redevelopment Agency Half Moon Bay Redevelopment Agency
Capistrano Unified School District Hawthorne Redevelopment Agency
Capitol Area Development Authority Hayward Redevelopment Agency
Carlsbad Redevelopment Agency Healdsburg Redevelopment Agency
Cathedral City Redevelopment Agency Hemet Unified School District
Centre City Development Corporation City of Hollister
(San Diego) Hollister Redevelopment Agency
Cerritos Redevelopment Agency Huntington Beach Redevelopment Agency
Chico Redevelopment Agency Huntington Park Redevelopment Agency
City of Chula Vista
Chula Vista Redevelopment Agency Imperial Beach Redevelopment Agency
Clovis Redevelopment Agency Indian Wells Redevelopment Agency
Coachella Valley Water District Indio Redevelopment Agency
Colton Redevelopment Agency City of Inglewood
Commerce Redevelopment Agency Inglewood Redevelopment Agency
Compton Redevelopment Agency
Conejo VaHey Unified School District City of Kerman
Contra Costa County Redevelopment Agency Kerman Redevelopment Agency
Corona Redevelopment Agency King City Redevelopment Agency
Costa Mesa Redevelopment Agency
Covina Redevelopment Agency La Habra Redevelopment Agency
City of Culver City La Mesa Redevelopment Agency
Culver City Redevelopment Agency La Mirada Redevelopment Agency
La Quinta Redevelopment Agency
Dana Point Redevelopment Agency Lakeport Redevelopment Agency
Danville Redevelopment Agency Lakeside Union School District
Delano Redevelopment Agency Lakewood Redevelopment Agency
Katz Hollis Katz Hollis Katz Hollis
SAN FRANCISCO BAY AREA SACRAMENTO AREA
LOS ANGELES AREA 415.3S0.s880 018.774.8453
213.82S.3085
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",......
League of California Cities Riverside Redevelopment Agency Visalia Community Redevelopmenl Agency
Livermore Redevelopment Agency Rocklin Redevelopment Agency Vista Redevelopment Agency
City of Long Beach Rosemead Redevelopment Agency
Long Beach Redevelopment Agency Roseville Redevelopment Agency Walnut Improvement Agency
City of Los Angeles City of Wasco
Community Redevelopmenl Agency of City of Sacramento Wasco Redevelopment Agency
the City of Los Angeles Sacramento Housing & Redevelopment West Covina Redevelopment Agency
Los Angeles County Community Agency Whittier Redevelopment Agency
Development Commission Salinas Redevelopment Agency Willits Redevelopment Agency
Los Angeles County Transportation San Bernardino Redevelopment Agency
Commission San Bernardino County Redev. Agency Yuba City Redevelopment Agency
Lynwood Redevelopment Agency San Buenaventura Redevelopment Agency Yuba County Redevelopment Agency
San Diego Redevelopment Agency .._.~ .. -,-- "-'IIIlU
Town of Mammoth Lakes San Dimas Redevelopment Agency
Marina Redevelopment Agency San Fernando Redevelopment Agency Hastings Economic Development Council
Mariposa County Redevelopment Agency San Francisco Redevelopment Agency IMIIIæIißlll . I
Marysville Redevelopment Agency San Jose Redevelopment Agency
Maywood Redevelopment Agency San Mateo Redevelopment Agency Detroit Downtown Development Authority
City of Merced San Pablo Redevelopment Agency Detroit Local Dev. Finance Authority
Merced Redevelopment Agency City of Sand City
Millbrae Redevelopment Agency Sand City Redevelopment Agency
Milpitas Redevelopment Agency Santa Ana Comm. Redevelopment Agency
Monrovia Redevelopment Agency Santa Clara Redevelopment Agency
Montclair Redevelopment Agency Santa Cruz Redevelopment Agency
Montebello Redevelopment Agency Santa Fe Springs Redevelopment Agency Missoula Redevelopment Agency
Monterey Redevelopment Agency Santa Maria Redevelopment Agency
Monterey Park Redevelopment Agency Santa Monica Mountains Conservancy ~ -~"-I.-
Moreno Valley Redevelopment Agency Santa Monica Redevelopment Agency
Mountain View Redevelopment Agency Santa Rosa Redevelopment Agency Las Vegas Redevelopment Agency
Santee Redevelopment Agency City of North Las Vegas
Napa Community Redevelopment Agency Scotts Valley Redevelopment Agency
National City Comm Devlpmt Commission City of Seaside - -- "
Norwalk Redevelopment Agency Seaside Redevelopment Agency
Seal Beach Redevelopment Agency Portland Development Commission
Oakland Redevelopment Agency Signal Hill Redevelopment Agency - . -Mmm
Oceanside Community Dev. Commission Soledad Redevelopment Agency
Ojai Redevelopment Agency City of Sonoma Bountiful Redevelopment Agency
Ontario Redevelopment Agency Sonoma Redevelopment Agency Lindon Redevelopment Agency
Orange Redevelopment Agency South Gate Redevelopment Agency Logan Redevelopment Agency
Orinda Redevelopment Agency South Lake Tahoe Redevelopment Agency Murray Redevelopment Agency
Oroville Redevelopment Agency South Pasadena Redevelopment Agency Ogden Neighborhood Development
Oxnard Redevelopment Agency South San Francisco Redev. Agency Agency
Southeast Economic Development Provo Redevelopment Agency
Pacifica Redevelopment Agency Corporation (San Diego) Sail Lake City Redevelopment Agency
Palmdale Redevelopment Agency Suisun City Redevelopment Agency Sandy Redevelopment Agency
Pasadena Community Dev. Commission Sunnyvale Redevelopment Agency City of Springville
Pittsburg Redevelopment Agency Sutter County State Department of Community and
City of Pleasanton Economic Development
Port Hueneme Redevelopment Agency Temple City Redevelopment Agency West Valley Redevelopment Agency
Thousand Oaks Redevelopment Agency --........
Redding Redevelopment Agency Torrance Redevelopment Agency
Redlands Redevelopment Agency Turtock Redevelopment Agency Charteston Redevelopment Agency
Redondo Beach Redevelopment Agency Tustin Community Redevelopment Agency
Redwood City Redevelopment Agency
Reedley Redevelopment Agency Vacaville Redevelopment Agency
Riailo Redevelopment Agency Vallejo Redevelopment Agency
Richmond Redevelopment Agency Vernon Redevelopment Agency
d-~I KatzHollis
-. --
Katz Hollis
Attachment II
Bond Services Client List
,;) - ,;).. J....
Katz Hollls Bond Issue Client List
CALIFORNIA
Oroville 1 2,250,000
Alhambra Redevelopment Agency I 20,000,000 Oxnard Redevelopment Agency I 8,400,000
Anaheim Redevelopment Agency 5 256,338,053
Association of Bay Area Govemments 2 13,775,000 Palmdale Civic Authority 1 17,600,000
Pasadena Conununity
Bakersfield Redevelopment Agency I 6,130,000 Development Commission t 1,735,000
Port Hueneme Redevelopment Agency I 15,285,000
City of Carls bad I 12,000,000
City of Cathedral City I 34,995,000 Redlands Redevelopment Agency I 9,385,000
Chico Public Financing Authority I 25,160,000 Redwood City Redevelopment Agency 1 16,000,000
Conuneree Redevelopment Agency 3 81,959,113 Redwood City Public Financing Auth t 16,950,000
Compton Public Finance Authority 4 142,547,530 Reedley Redevelopment Agency 2 3,860,000
Concord Redevelopment Agency I 11,850,000 City of Richmond 1 11,530,000
Contra Costa County Richmond Redevelopment Agency I 22,006,000
Public Financing Authority 1 29,315,000 Riverside Redevelopment Agency 10 109,270,000
Corona Redevelopment Agency I 7,750,000
Costa Mesa Redevelopment Agency I 4,715,000 Sacramento City Financing Authority I 31,323,423
Covina Redevelopment Agency I 4,900,000 Sacramento Housing and
Culver City Redevelopment Agency 8 386,834,000 Redevelopment Agency 16 219,460,000
Community Development Commission Salinas Redevelopment Agency 2 12,000,000
of the City of Escondido 3 77,600,000 San Bernardino Redevelopment Agency 3 26,800,000
San Diego Redevelopment Agency 10 138,795,000
City of Fairfield 1 41,500,000 San Dimas Redevelopment Agency t 2,800,000
Fairfield Redevelopment Agency 7 34,425,000 San Jose Redevelopment Agency 6 534,335,000
Fontana Redevelopment Agency 4 109,265,000 City of San Mateo 2 20,800,000
Foster City Public Financing Authority 3 37,050,000 Santa Ana Redevelopment Agency 8 281,665,000
Santa Barbara I 19,830,000
Garden Grove Community Santa Clara Redevelopment Agency I 35,800,000
Development Agency 2 92,000,000 Santa Fe Springs Redevelopment Agency 2 10,000,000
Glendale Redevelopment Agency 1 6,220,000 Santa Monica Redevelopment Agency 2 21,125,000
Hawthome Community Soledad Redevelopment Agency 2 6,450,000
Redevelopment Agency 5 111,525,000 South Gate Redevelopment Agency I 18,000,000
Hayward Redevelopment Agency I 4,000,000 South Gate Public Finance Authority 2 64,400,000
Hemet Unified School District 1 10,200,000 South San Francisco
Redevelopment Agency I 7,250,000
City of Indian Wells I 17,795,000 South Lake Tahoe Joint Powers Financing 3 84,305,000
Inglewood Redevelopment Agency 9 94,885,000
Thousand Oaks Redevelopment Agency 2 12,435,000
Lakewood Redevelopment Agency 2 14,650,000 Tommce Redevelopment Agency 4 57,840,000
La Quinta Redevelopment Agency I 20,000,000 Tustin Redevelopment Agency 3 29,660,000
Livennore Redevelopment Agency I 4,120,000
Long Beach Redevelopment Agency 2 11,700,000 Walnut Redevelopment Agency 2 41,900,000
Los Angeles Redevelopment Agency 41 1,851,712,000 Yuba City Redevelopment Agency 2 8,975,000
Lynwood Redevelopment Agency 2 14,485,000
MICffiGAN
Maywood Redevelopment Agency 2 2,535,000 Detroit Downtown Development Authority 2 252,406,000
Millbrae Redevelopment Agency t 6,500,000 Detroit Local Development Finance 3 57,320,000
Montclair Redevelopment Agency 1 10,310,000 Authority
Monterey Park Redevelopment Agency I 12,810,000
Monrovia Redevelopment Agency 2 10,645,000 MONTANA
Mountain View Revitalization Authority 1 9,875,000 City of Billings I 2,050,000
Mountain View Shoreline
Regional Park Authority 2 32,500,000 UTAH
Napa Community Redevelopment Agency I 10,805,000 Logan Redevelopment Agency 1 1,430,000
National City Community Ogden Neighborhood
Development Commission 4 66,860,000 Redevelopment Agency 2 11,045,000
Provo City Redevelopment Agency I 1,230,000
Oakland Redevelopment Agency 4 266,955,000 Salt Lake City 6 119,658,000
Oceanside Community Sandy City Redevelopment Agency I 3,420,000
Development Commission 3 26,970,000
Ontario Redevelopment Agency I 22,000,000
Orange Redevelopment Agency 2 20,500,000 TOTALS: 260 56,459,444,119
boodsum.xJsI""l ó2-023
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- -
Katz Hollis
Attachment III
Resumes
ç) -~ c./
Katz Hollis
DONALD J. FRASER
Vice President
Mr. Fraser is a client and project manager of Katz Hollis services in the areas of financial analyses and fiscal
management for redevelopment and other public entities in California. Responsibilities include revenue
analyses in support of tax allocation bond financing, cash flow analyses, financial feasibility/program
implementation analyses, and financial feasibility analyses of proposed redevelopment projects. His extensive
involvement in feasibility analyses focuses on the development of computer simulation models to demonstrate
the "real world" possibilities for the implementation of new redevelopment project areas. His expertise in this
area is particularly relevant to the recent redevelopment reform legislation that now requires such agency
planning and illustration of five year implementation plans.
Mr. Fraser's working experience with the "old" fiscal review process and negotiating acceptable tax sharing
agreements with taxing entities affected by proposed redevelopment plans and amendments also offers
expertise in the "new" fiscal consultations with affected taxing entities. He has demonstrated a clear
understanding of client objectives in the context of the law and the ability to translate those objectives in
acceptable terms to other affected taxing entities. Although the new reform law has pre-set tax sharing
agreements, acceptance by all parties involved is still an important component of the redevelopment plan
adoption process.
Mr. Fraser has been a guest lecturer on property taxes and redevelopment at the University of California at
Davis and the Municipal Management Assistants of Southern California. Mr. Fraser joined Katz Hollis in
1990.
Prior ProCessional Experience
Prior to joining Katz Hollis, Mr. Fraser worked with a number of public sector clients as a consultant with
Ralph Anderson & Associates. He also has extensive experience in the public sector, most recently as
Assistant City Manager for the City of Lynwood, California. In that capacity, he was responsible for all
financial functions in the City, including: budget planning, analysis and preparation; long range financial
planning; cash flow analyses; investments; accounting and auditing; and financial reporting.
In addition, Mr. Fraser served as chief financial advisor to the Lynwood Redevelopment Agency. In that role,
he served as member of the executive management team (along with the City Manager and Community
Development Director) that reviewed all development proposals for financial feasibility. Mr. Fraser was also
responsible for all of the Agency's financial functions.
Education
Bachelor of Arts, magna cum laude, University of California, Los Angeles, California (1980)
Master of Public Administration, California State University, Long Beach, California (1982)
Professional Affiliations
Member, International City Managers Association
......... r::::J-,;¿ S-
"",,-
r 1T
KatzHollis
STEPHANIE SMITH LOVETTE
Senior Associate
Ms. Lovette is a Senior Associate in the area of financial and development services. Her responsibilities
include the preparation of financial analysis for plan adoption/amendments, negotiations with taxing entities,
development of traditional and alternative financing structures and the provision of financial advisory services
and the sale/placement of bonds.
Prior Professional Experience
Prior to joining Katz Hollis, Ms. Lovette was an investment banker specializing in California public agency
debt. During her seven years at Sutro & Co., she participated in all types of public agency financing,
including Tax Allocation Bonds, General Obligation Bonds, Certificates of Participation, and bonds secured
by Assessment and Mello Roos liens. Ms. Lovette has conducted negotiated and competitive bond sales
acting as either an underwriter or financial advisor.
During her years in public finance, Ms. Lovette developed and delivered numerous presentations on specific
bond issues to rating agencies, bond insurers, institutional investors, and retail salespersons. These
presentations included pertinent information on the bonds, the issuer, and the legal status of the debt. She also
participated in the development of marketing materials for the bond sales including Preliminary and Final
Official Statements.
In addition to her debt issuance experience, Ms. Lovette also acted as financial consultant on the creation
and/or amendment of fifteen redevelopment projects. The financial consulting work encompassed tax
increment revenue projections, assistance in the development of the redevelopment plan and report, analysis of
taxing entity revenue sharing scenarios, and analysis of the cost and benefits of specific real estate
developments. As a financial consultant she explained the redevelopment plan and process to taxing entities,
city councils, planning commissions, citizens committees and the general public. She also participated in
taxing entity revenue sharing negotiations prior to the adoption of AB1290.
Ms. Lovette was previously employed in the planning departments of San Francisco and San Bruno.
Professional Affiliations
Ms. Lovette is an active member of the San Francisco Municipal Forum, Municipal Management Assistants of
Northern California, and the California Elected Women's Association for Education and Research.
Education
Bachelor of Arts, University of California, Irvine (1981)
CORO Foundation Fellowship, New York, New York (1987)
"offreuoq ~ -~ (ç
1105%/"
-. -
Katz Hollis
LAWRENCE J. ARCENEAUX, JR,
President
Mr. Arceneaux is in charge of fmancial, bond, and legislative analyses for redevelopment and other public
agencies throughout California and other states. His technical expertise is the result of years of experience and
involvement in all aspects of redevelopment activities - from legislative to implementation. Mr. Arceneaux has
provided technical assistance in developing and drafting several redevelopment and property tax related pieces
of California legislation, as well as provided legislative impact analyses for public entities in California,
Montana, Utah, Illinois, Oregon and Michigan. Additionally, Mr. Arceneaux served as Chairman of the
Technical Committee of the California Redevelopment Association's legislative activities on Assembly Bill
1290 - California Redevelopment Law Reform Act.
His activities include the management of analyses of overall financing schemes associated with the
implementation of redevelopment plans; fiscal planning for client agency activities; and revenue analyses in
support of bond issues based, in whole or in part, on property tax increment revenue. He is a recognized expert
in the field of tax increment finance and the revenue analysis in support of bond issued based, in whole or in
part, on property tax increment revenue. He has first hand experience with the tax increment statutes and
allocation procedures in California, Florida, Michigan, Montana and Utah. As the Principal in charge of
financial and bond services to public agencies, he has managed or been involved in the majority of the 250 plus
tax allocation bond issues (totaling over $6 billion) where Katz Hollis has served as Fiscal Consultant. Mr.
Arceneaux is also the client manager of services provided to several of the largest redevelopment agencies in
the state, including the City of Los Angeles Community Redevelopment Agency.
Mr. Arceneaux has spoken on numerous occasions on the subject of redevelopment to the American Institute of
Planners, California Redevelopment Agencies Association, National Forum for Black Public Administrators,
community groups, and at seminars hosted by local municipalities. He has also been deposed as an expert
witness in redevelopment litigation. Mr. Arceneaux joined Katz Hollis shortly after its founding in 1978,
became a Principal in 1981 and assumed his current position of President in 1989.
Prior Professional Experience
Before joining Katz Hollis, Mr. Arceneaux had worked for a variety of public sector clients as a financial
consultant with John Gray & Associates of Los Angeles. His responsibilities included redevelopment financial
analyses and projections of revenues, feasibility analyses of development proposals and preparation of
mandated reports. Prior to that tenure, he served as Chief of Operations in the Development Division of the
City ofInglewood, California, and was responsible for the supervision of the Redevelopment Agency staff.
Education
Bachelor of Architecture, Tulane University, New Orleans, Louisiana (1970)
Graduate Studies, University of California, Los Angeles, California (1970-72)
Professional Affiliations
Member, National Council on Urban Economic Development
Member, International Association of Assessing Officers
Member, California Redevelopment Association
Member, Building Industry Association
r-l-cJ-Î
_. -
ATTACHMENT 2
Agreement between
Redevelopment Agency of the City of Chula Vista
and
Katz Hollis
for Financial Consulting Services
This agreement ("Agreement"), is entered into effective as of September 22, 1998 by and
between the Redevelopment Agency of the City of Chula Vista ("Agency") and Katz Hollis, a
California Corporation ("Consultant"), and is made with reference to the following facts:
Recitals
Whereas, the Agency requires the services of a professional financial consultant to assist
in the development of a long-range financial plan; and,
Whereas, the Agency conducted a selection process as required by ordinance and
determined that Katz Hollis "Consultant" is the best qualified firm proposing to serve the Agency in
this capacity as a result of said process; and,
Whereas, Consultant warrants and represents that they are experienced and staffed in a
manner such that they are and can prepare and deliver the services required of Consultant to
Agency within the time frames herein provided all in accordance with the terms and conditions of this
Agreement;
NOW, THEREFORE, that the Agency and Consultant do hereby mutually agree as follows:
1. Consultant's Duties
A. General Duties
Consultant shall perform all of the services described on the attached Exhibit A, Paragraph
7, entitled "General Duties"; and,
B. 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 Agency 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 Agency, operate to terminate this Agreement.
C. Reductions in Scope of Work
Agency 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, Agency 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.
~-cJ.g
D. Additional Services
In addition to performing the Defined Services herein set forth, Agency 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 the
rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11, unless a separate fixed
fee is otherwise agreed upon. All compensation for Additional Services shall be paid
monthly as billed.
E. 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.
F. Insurance
Consultant represents that it and its agents, staff and subconsultants employed by it in
connection with the Services required to be rendered, are protected 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, and shall otherwise meet with the approval of the Agency:
Statutory Worker's Compensation 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 Agency
as an Additional Insured, and which is primary to any policy which the Agency may
otherwise carry ("Primary 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.
As required by the Agency, all insurers shall waive the right of subrogation against Agency
and its elected officials, officers, employees agency and representatives.
G. 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 required
under Consultant's Commercial General Liability Insurance Policy, Consultant shall
deliver a policy endorsement to the Agency demonstrating same, which shall be
reviewed and approved by the Risk Manager.
c:2-~C¡
H. Securitv 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 Agency 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 Agency an irrevocable letter of credit callable by the Agency 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 the
space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A.
(3) Other Security
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 Consultant shall provide to the Agency such other
security therein listed in a form and amount satisfactory to the Risk Manager or City
Attorney.
I. Business License
Consultant agrees to obtain a business license from the Agency and to otherwise comply with
Title 5 of the Chula Vista Municipal Code.
2. Duties of the Agency
A. Consultation and Cooperation
Agency 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 Agency shall permit access
to its office facilities, files and records by Consultant throughout the term of the
agreement. In addition thereto, Agency 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.
B. Compensation
Upon receipt of a properly prepared billing from Consultant submitted to the Agency
02- 3-0
periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than
monthly, on the day of the period indicated in Exhibit A, Paragraph 18, Agency 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 1 g of Exhibit
A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A,
Paragraph 12.
All billings submitted by Consultant shall contain sufficient information as to the propriety
of the billing to permit the Agency to evaluate that the amount due and payable thereunder
is proper, and shall specifically contain the Agency'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.
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 per-
formance. 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 Agency, 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
Agency, shall be requested in writing to the Agency'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
A. Consultant is Designated as an FPPC Filer.
If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is
deemed to be a "Consultant" for the purposes of the Political Reform Act conflict 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
d-3 (
specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the
City Attorney.
B. 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
influence 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.
C. Search to Determine 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 best of Consultant's knowledge, have an economic interest which would conflict with
Consultant's duties under this agreement.
D. 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.
E. Duty to Advise of Conflicting Interests.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant further
warrants and represents that Consultant will immediately advise the City Attorney of
Agency 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.
F. 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.
4. 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 Agency 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 Interest
within the Term of this Agreement, or for 12 months after the expiration of this Agreement,
except with the written permission of Agency.
Consultant may not conduct or solicit any business for any party to this Agreement, or for any
.;:2 - 3 d-..
-
third party which may be in conflict with Consultant's responsibilities under this Agreement,
except with the written permission of Agency.
7. Hold Harmless
Consultant shall defend, indemnify, protect and hold harmless the Agency, 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 alleged or actual
negligent conduct or willful misconduct of the Consultant, or any agent or employee, subcon-
tractors, 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 misconduct of the
Agency, its officers, or employees. Consultant's indemnification shall include any and all
costs, expenses, attorneys' fees and liability incurred by the Agency, 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 Agency, defend any
such suit or action brought against the Agency, its officers, agents, or employees. Consult-
ants' indemnification of Agency 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, Agency 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 Agency, become
the property of the Agency, 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 of Termination, not to exceed the amounts payable
hereunder, and less any damages caused Agency by Consultant's breach.
9. Errors and Omissions
In the event that the Agency Administrator determines that the Consultants' negligence,
errors, or omissions in the peñormance of work under this Agreement has resulted in expense
to Agency greater than would have resulted if there were no such negligence, errors,
omissions, Consultant shall reimburse Agency for any additional expenses incurred by the
Agency. Nothing herein is intended to limit Agency's rights under other provisions of this
agreement.
10. Termination of Agreement for Convenience of Agency
Agency 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 Agency, become Agency's sole and exclusive property. If the Agreement is terminated by
Agency as provided in this paragraph, Consultant shall be entitled to receive just and
equitable compensation for any satisfactory work completed 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.
d. - .33
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11. Assignability
The services of Consultant are personal to the Agency, 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 Agency. Agency hereby consents
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
exclusive property of Agency. 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 Agency.
Agency shall have unrestricted 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 reports, studies, data, statistics, forms or other materials or
properties produced under this Agreement.
13. Independent Contractor
Agency 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. Agency 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 Agency, and none of them shall be entitled to any
benefits to which Agency employees are entitled including but not limited to, overtime,
retirement benefits, worker's compensation benefits, injury leave or other leave benefits.
Therefore, Agency will not withhold state or federal income tax, social security tax or any other
payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold
the Agency harmless with regard thereto.
14. Administrative Claims Requirements and Procedures
No suit or arbitration shall be brought arising out of this agreement, against the Agency unless
a claim has first been presented in writing and filed with the Agency and acted upon by the
Agency 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 Agency in the implementation of same.
Upon request by Agency, Consultant shall meet and confer in good faith with Agency 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
~-3t/
of a report or document in perfonning the Defined Services, Consultant 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.
17. Miscellaneous
A. Consultant not authorized to Represent Agency
Unless specifically authorized in writing by Agency, Consultant shall have no authority to
act as Agency's agent to bind Agency to any contractual agreements whatsoever.
B. Consultant is Real Estate Broker and/or Salesman
If the box on Exhibit A, 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.
C. 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.
D. 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.
E. Capacity of Parties
Each signatory 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.
F. Governing LawlVenue
This Agreement shall be governed by and construed in accordance with the laws of the
State of Califomia. 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 perfonnance hereunder, shall be the Redevelopment Agency of the City
of Chula Vista.
[end of page. next page is signature page.]
¿;J -3 S-
Signature Page
to
Agreement between City of Chula Vista Redevelopment Agency and Katz Hollis
for Financial Consulting Services
IN WITNESS WHEREOF, as of the date first written above, Agency 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:
Redevelopment Agency of the City of Chula Vista
by:
Shirley Horton, Chair
Attest:
Beverly Authelet, City Clerk
Approved as to form:
John M. Kaheny, Agency Attorney
Katz Hollis, A California Corporation
By:
Lawrence J. Arceneaux, Jr.
President
Exhibit List to Agreement
(X) Exhibit A.
ó)-3fp
Exhibit A
to
Agreement between
Redevelopment Agency of the City of Chula Vista
and
Katz Hollis
1. Effective Date of Agreement: September 22, 1998
2. Agency:
(X) Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of
California
("Agency")
3. Place of Business for Agency:
City of Chula Vista,
Community Development Department
276 Fourth Avenue,
Chula Vista, CA 91910
4. Consultant: Katz Hollis
5. Business Form of Consultant:
( ) Sole Proprietorship
( ) Partnership
(X) Corporation
6. Place of Business, Telephone and Fax Number of Consultant:
Katz Hollis
865 S. Figueroa, Ste. 1300
Los Angeles, CA 90017-2543
(213) 629-3065
7. General Duties:
Provide financial consultant services to assist staff in the development of an Agency financial
strategy.
8. Scope of Work and Schedule:
A. Detailed Scope of Work:
1. Tax Increment Revenue Projection
Katz Hollis will prepare tax increment revenue projections for each of the four project
Areas and for the value added by the proposed new development. New development
will include the potential developments at the Otay Landfill and the SDG&E site
disposal and development. These tax increment revenue projections will provide
independent analysis of the developer's estimates of taxable value of their
eo:J- 3 7
development, including land acquisition and disposition schedules in connection with
proposed development. Existing liens on the Agency's tax increment revenue stream
will also be identified and estimated. The impact of recently stipulated and
outstanding appeals on the Agency's tax increment will also be determined. The tax
increment projection will also include a review of each Project's Redevelopment Plan.
This review is to assure the Plans will not hinder the proposed project
implementation. The revenue projections would be provided in a tabular format.
Prior to projecting revenues from the Otay Landfill development, Katz Hollis will
research the impact of the de-annexation from the City to the County. This review
is to assure that the Agency will continue to receive tax increment from the landfill.
We will also research any hindrances on the conversion of the SDG&E site or any
special legislation or State Board of Equalization practice that would impact the
Agency's ability to receive revenue from that site.
Task one represents approximately 15 percent of the work effort.
2. Evaluation of existing structured debt and opportunities for restructuring
This portion of the work will be undertaken simultaneously with task one. Katz Hollis
will evaluate the Agency' existing structured debt and make recommendations on the
opportunities and desirability of restructuring all or a portion of that debt. This
analysis will provide both the traditional full and/or partially refunding schedules to
show net present value savings to the Agency and an analysis of how the
restructuring will fit into the Agency's implementation program.
The debt restructuring components and the Agency's planned programs will be
compared to the tax increment revenues on a cash flow basis. This analysis often
provides additional information that is not available when addressing each
component individually, which can result in restrictive bond covenants or added
issuance expense when a refunding is undertaken.
Task two represents approximately 15 percent of the work effort.
3. Evaluation of existing Agency financial condition, including inter-Agency and
City-Agency loans
This portion of the work will be undertaken concurrently with tasks one and two. The
work will include an analysis of the Agency's current financial condition to ascertain
any obligations or unusual situations which could impact the analyses undertaken in
tasks one and two. Katz Hollis will review the Agency's outstanding loans with the
City and incorporate a repayment schedule within the Project cash flow identified in
Task 2.
Katz Hollis staff will provide recommendations on practices of other agencies which
Chula Vista may desire to utilize. At the conclusion of task three, Katz Hollis will
provide the relevant findings in a tabular format (cash flow projection) with a brief oral
explanation of the methodology utilized to prepare the analysis. We will then work
with staff to develop a recommended plan of action based on the findings.
Task three represents approximately 30 percent of the work effort.
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4. Development of a financing plan providing for the repayment of Agency
indebtedness and implementation of the redevelopment objectives for each
Project Area.
Working with staff, Katz Hollis will develop a financing strategy based on the
information and findings developed in tasks one through three. The objective of the
financing strategy will be to provide an annual revenue stream to the City General
Fund, and to provide adequate resources and repayments to continue to implement
redevelopment and make the project Areas whole at the end of the redevelopment
plans. Staff desires this financial strategy to provide a template for current and future
Agency activities and govern the relationship between the Project Areas that is
advantageous for the long term and not just focused on short term benefits.
Katz Hollis will also work with staff to develop the policies to implement the financing
strategy.
Completion of the financing strategy, Task 4, represents approximately 30 percent
of the work effort.
5. Report and presentation to Agency/Council
Katz Hollis will prepare a Report for presentation to the Agency Board that will
describe the analyses conducted, the findings, and recommendations as detailed in
above tasks one through four.
Katz Hollis will attend a meeting of the Agency Board to make a formal presentation
of our work effort, the findings, recommendations and financing strategy. Katz Hoillis
will also assist staff in presenting the recommended implementation policies to the
Agency Board.
At the conclusion of its presentation to the Agency Board, 100 percent of the work
will be completed and delivered.
B. Date for Commencement of Consultant Services:
(X) Same as Effective Date of Agreement
C. Dates or Time Limits for Delivery of Deliverables:
Task 1 Revenue projections to be provided within 30 days of receipt of necessary
information from the Agency and the County.
Task 2 Analysis of debt structuring opportunities and initial cash flow to be provided to
staff within 30 days of receiving the information from the Agency.
Task 3 Evaluation of existing Agency financial condition to be provided in a tabular format
(updated cash flow) within 2 weeks of delivery of the revenue projections and debt
analysis from tasks 1 and 2.
Task 4 Draft plan delivered to agency staff in tabular format with appropriate graphics
and summary findings and recommendations within 60 days of receipt of the necessary
information from the Agency. Final plan to be delivered within two weeks of receipt of
staff comments on draft plan.
c2-39
_. --
Task 5 Presentation to the Agency Board is anticipated to occur within 15 days of the
delivery of the documents set forth in task 4.
D. Date for completion of all Consultant services:
Ninety (90) days from effective date subject to timely receipt of relevant information from
the Agency.
9. Insurance Requirements:
(X) Statutory Worker's Compensation Insurance
(X) Commercial General Liability Insurance: $1,000,000.
(X) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability
coverage).
10. Materials Required to be Supplied by Agency to Consultant:
As described in Section 8 above.
11. Compensation:
(X) Phased Fixed Fee Arrangement.
For the performance of each phase or portion of the Defined Services by Consultant as are
separately identified below, Agency shall pay the fixed fee associated with each phase of
Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant
shall not commence Services under any Phase, and shall not be entitled to the compensation
for a Phase, unless Agency shall have issued a notice to proceed to Consultant as to said
Phase.
Phase//Task Fee for Said Phase
1. Task 1 (15%) $3,750
2. Task 2 (15%) $3,750
3. Task 3 (30%) $7,500
4. Task 4 (30%) $7,500
5. Task 5 (10%) $2,500
Payments shall be subject to the 10% retention provisions in Section 19 herewith below:
12. Materials Reimbursement Arrangement
For the cost of out of pocket expenses incurred by Consultant in the performance of services
herein required, City shall reimburse Consultant, subject to a $2,500 limit, for the following out-
of-pocket expenses.
Miscellaneous Incurred Expenses: by an amount equal to actual incurred expenses.
Automobile Mileage: at the current rate allowed by the Internal Revenue
Service
Photocopies: at the rate of $0.10 per page for each document copy
in excess of five document copies.
"Incurred expenses" include, but are not limited to, authorized travel by common carrier, long
é2 -40
_..
distance telephone calls, commercial reproduction, assessment map and roll acquisition or
reproduction, shipping and messenger services and other similar expenses. Incurred expenses
do not include normal overhead expenses.
13. Contract Administrators:
Agency: Lyle W. Haynes, Assistant Director of Community Development
Consultant: Lawrence J. Arceneaux, Jr., President
14. Liquidated Damages Rate: Not Applicable
15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest
Code:
(X) Not Applicable. Not an FPPC Filer.
16. Consultant is Real Estate Broker and/or Salesman
Not applicable.
17. Permitted Subconsultants:
Not applicable.
18. Bill Processing:
Submitted in accordance with payment milestones set forth in Section 11, above.
Agency's Account Number: 990-9907-5201
992-9920-5201
994-9940-5201
19. Security for Performance
Payments shall be subject to a 10% retention of the amount otherwise due and payable. The
compensation retained ($2,500) shall be paid within 15 days after acceptance and approval of
the final report by the Agency Board (Task 5).
cJ-4- (
-.. --
REDEVELOPMENT AGENCY AGENDA STATEMENT
Item ~
Meeting Date 09/22/98
ITEM TITLE: RESOLUTION ¡fc,oO APPROVING AN OWNER PARTICIPATION
AGREEMENT WITH THE GREENWALD COMPANY FOR THE DEVELOPMENT OF 76,885
SQUARE FOOT BUILDING AT 675 OXFORD STREET WITHIN THE SOUTHWEST
REDEVELOPMENT PROJECT AREA
SUBMITTED BY: C",,""";IV '"""pm" 'n... P ~
REVIEWED BY: Executive Directo~ ~./? (4/5ths Vote: Yes- No-.J
BACKGROUND:
The applicant is proposing to develop a 76,885 square foot office building on the vacant property located at the
west.end of Oxford Street. The proposed building will be occupied by the San Diego County Family Resource
Center. The scope of this project includes the development of the MTDB property located east of the San Diego
Trolley right.of.way between Oxford Street and Palomar Street into a pedestrian pathway to connect with the
nearby Palomar Trolley Station and an access road between Oxford and Palomar Streets. This work will also
include certain modifications and improvements on Palomar Street and the Trolley Station.
The project has been reviewed and recommended for approval by the Design Review Committee. Previous actions
by the City related to this project include the following: On April 7, 1998, the Chula Vista City Council approved
the re.zoning of the property from Limited Industrial to Commercial Office. As part of the re.zoning, the City
Council adopted Negative Declaration IS.97-24 which considered the development of 200,000 square feet of
office space. The proposed 76, 885 square foot building falls within the development parameters of that negative
declaration. The Negative Declaration concluded that the project would not create significant impacts. On May
19, 1998, the Redevelopment Agency approved a Special Use Permit for the establishment of the San Oiego
County South Bay Health & Human Services Agency Family Resource Center at the proposed building.
A Memorandum of Understanding between MTDB, the Developer of the project and the Redevelopment Agency
is currently being negotiated for access and development of the MTDB parcel. This MOU will soon be presented
to the Redevelopment Agency for consideration. The OPA is being presented to the Redevelopment Agency prior
to presentation of the MOU in order to expedite the processing of plans for the development of the building.
RECOMMENDATION: That the Redevelopment Agency adopt the resolution approving the Owner
Participation Agreement for the development of the proposed project subject to the conditions listed in Exhibit B
and contained therein.
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Page 2. Item 3
Meeting Date 09/22/98
BOARDS/COMMISSIONS RECOMMENDATION: At its meeting of August 17, 1998, the Design Review
Committee reviewed the project and recommended its approval subject to the conditions listed in Exhibit B of the
Owner Participation Agreement, which includes the condition that some components of the project go back to the
committee for approval.
DISCUSSION:
Buildino Site Characteristics
The seven acre project site is located on the north side of the westerly terminlls of Oxford Street (see attached
locator Map). The site is surrounded by the following uses: to the north of the Project site is Harborside
Elementary School; to the east is Costco and Home Base; to the south are industrial and commercial land uses;
and to the west across Palomar Street is the San Diego Trolley. Industrial Boulevard with residential uses and
a mobile home park is further to the west. There is no direct access to either the trolley tracks or to Industrial
Boulevard from the subject site.
General Plan and Zonino Desionations
GENERAL PLAN ZONI.N.!i CURRENT LAND USE
Site: Prof. & Admin. Office CO.p Vacant
North: ReslM/P.QP R.3P9/R1 Residential/School
South: OS/R&LM CC.P/ll.P Commercial & Industrial
East: Retail Commercial CC Commercial
West: ResM R.3/MHP Multi.family/Mobile Home Park
os: Open Space
ReslM: Residential low Madium (3.6 du/ac)
RasMF: Residential Medium 16.11 du/ac}
p.oP: Public/Ouasi.Public
cc: Cantral Commarcial
As shown in the above table, the subject property has General Plan and zoning designations for Professional and
Administrative Office uses, which allow the construction of commercial office buildings such as the one being
proposed. The proposed project is consistent with the City's General Plan, the Southwest Redevelopment Plan,
and the Zoning Ordinance.
~
The project involves the construction of a 76,885 square foot building, the construction of a parking lot and
associated landscaped areas, and the development of the MTBD property to the south of the Oxford site. There
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Page 3. Item .3
Meeting Date 09/22/98
will be a two.story structure which will house the offices for County employees and the area to service the public
and a one.story ancillary structure located to the north and attached to the main two-story structure. The one.
story building will contain classrooms and conference rooms that will be used for job training and career.
orientation sessions. The positioning of the two l.shaped structures will provide an enclosure in the center which
will create a patio containing a water feature surrounded by landscaping and will serve as interior open space.
The two wings of the two.story structure are joined by a glass structure which serves as the public entrance to
the building. The entrance and the patio floor areas will be covered with decorative paving.
Among the County Agencies to be located at this building are the Social Services agency, Health Center, GAIN
(Greater Avenues for Independence), IHSS (In-House Supportive Services), etc. Typical daily activity will involve
members of the public visiting the premises and meeting with County employees to receive a variety of services.
It is estimated that approximately 1,200 service recipients will visit the site on a daily basis. However this
number is expect to diminish over time due to changes in welfare laws. The approximate number of employees
at the site will be 350. It is estimated that approximately 60% of the service recipients and employees will get
to the facility using some form of public transportation, including the San Diego and Chula Vista Transit systems
and the San Diego Trolley. Most of them will arrive at the Palomar Station. From there, they will walk to the
County building on Oxford Street. This movement of pedestrians requires the improvement of the MTDB property
in order to provide a practical and safe access.
Develooment of MTDB Prooerty
The improvement of the MTDB property includes the construction of a pedestrian walkway, a lighting system,
and landscaping throughout the site that includes flowering trees, shrubs, and ground covers. A road is being
proposed over this property in order to provide automobile access from Palomar Street to the County facility and
thus facilitate access to the site from Palomar Street. It should be noted, however, this road was not a
requirement of the traffic study that was conducted for the Negative Oeclaration for development of the site. In
addition, the property will also serve as a retention basin to control the run-off created by the paving of the
parking lot on the building site.
Additional improvements along the pedestrian route between the Palomar Station and the proposed facility include
the installation of barriers and fences on the median island and on sidewalks on the north and south sides of
Palomar Street to discourage pedestrians from crossing Palomar Street mid.block. The sidewalks at the corner
of Palomar and Industrial will have to be modified to accommodate handicap ramps and the traffic signals at that
intersection will be modified in order to make it safe and convenient for pedestrians to cross the street. Another
handicap ramp will be constructed at the Palomar Station providing access from the station to the sidewalk on
Industrial Boulevard, where there is currently a set of stairs.
A Memorandum of Understanding (MOU) between the Metropolitan Transit Development Board (MTDB), the
Redevelopment Agency, and the Developer for the use and development of the MTDB parcel is currently being
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Page 4, Item .3
Meeting Date 09/22/98
prepared. The MOU will describe in detail the extent of the improvements and assign the responsibility for the
construction and maintenance of those improvements. The Developer is currently designing the improvements and
developing cost estimates. Staff considers that these costs will be significant and that the Oeveloper might not
be able to assume them all. MTDB and the Agency might be asked to assume some of the costs. Staff expects
to present the MDU to the Agency in the latter part of October of 1998.
Parking On The Building Site
The proposed site plan calls for the provision of 453 parking spaces on the site. Based on the uses proposed for
the building, the Zoning Ordinance requires a total of 450 parking spaces. Also, County staff expect that a
significant number of visitors as well as employees will be using public transportation to arrive at the County
facility which should reduce the need for parking spaces.
VEHICULAR ACCESS TO THE BUILOING SITE
All vehicular access to the site will be from two points on Oxford Street - one at the easterly property line and
the second near the cul.de.sac bulb. No access will be permitted from Naples Street next to Harborside
Elementary School.
On.Street Imorovements
As part of the development of the Oxford site, the developer will be required to provide street improvements along
Oxford Street for the entire frontage of the property. These improvements indude sidewalk, curbs, gutter, street
lights, and under grounding of utilities.
Vacation of Buildings Occuoied bv the County
The relocation of the County offices currently located in the vicinity of Third Avenue and Palomar Street and the
South Bay Regional Center at Third and H Street to the proposed building on Oxford Street will leave a significant
amount of commercial space vacant. Currently, the County occupies approximately 25,000 square feet at the
Urqhart Building at the northeast corner of Third Avenue and Palomar Street and 35,000 square feet at the
Jerome's Building located at mid.block on Third Avenue between Palomar Street and Third Avenue. The County
also has a 5,000 sq. ft. temporary public health facility at the parking lot behind the court complex. These
offices will be moved to the new building at Oxford Street. Staff has already contacted the property owners of
the Urqhart and Jerome's buildings and is working with them to bring new tenants to fill this space. Several
prospects have already looked at the building but no commitments to date.
Conclusion
It is staff's opinion that the construction of the proposed bllilding and the improvement of the MTDB property will
be a positive improvement to this area of the City. The development of the project will contribute to the
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Page 5. Item..3
Meeting Date 09/22/98
elimination of blighting influences by providing a new building and putting the vacant parcels to a higher and better
use, which furthers the goals and objectives of the Southwest Redevelopment Plan. The use of the building by
the County provides for the consolidation of presently scattered County agencies under one roof which will provide
greater accessibility and convenience for users. Its proximity to the Trolley Station will make it easier for users
to reach the facility via public transportation, thus reducing personal automobile trips.
FISCAL IMPACT:
The proposed project will generate an annual tax.increment revenue of approximately $60,650, of which $36,390
will be allocated to the Southwest Redevelopment Project Area fund. [The remaining $24,260 will be distributed
among the other taxing entities, (County of San Diego and various School Districts) pursuant to the tax sharing
arrangement agreed to as part of the establishment of the Southwest Redevelopment Project Area.]
IMZTI Ho\HDMBCDMMDEV\STAFF.REP\D9.21-98\675DXFDR.REP "opl..", 17, 1998 11 DoD5,mll
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RESOLUTION 16()O
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA APPROVING OWNER PARTICIPATION AGREEMENT WITH THE
GREENWALD COMPANY FOR THE DEVElOPMENT OF A 76,885 SQUARE
FOOT BUILDING AT 675 OXFORD STREET WITHIN THE SOUTHWEST
REDEVELOPMENT PROJECT AREA
WHEREAS, The Greenwald Company owns the property at 675 Oxford Street and which is diagrammatically
shown in the Locator Map attached to the Owner Participation Agreement and incorporated herein by reference; and,
WHEREAS, The Greenwald Company has presented development plans for the construction of a 76,885
square foot building and associated lot improvements ("Project"); and
WHEREAS, the site for the proposed Project is located within the Sollthwest Redevelopment Project Area
under the jllrisdiction and control of the Chllia Vista Redevelopment Agency; and,
WHEREAS, the Developer applied for and obtained a Special Use Permit (SUPS.98.04) from the Chula Vista
Redevelopment Agency on May 19, 1998 for the establishment of the San Oiego County South Bay Health & Human
Services Agency Family Resource Center at 675 Oxford Street; and
WHEREAS, the Environmental Review Coordinator issued a Negative Declaration in accordance with CEOA
(lS.97.24) which considered impacts from development of the site in a mallner consistent with the subject project; and,
WHEREAS, said Negative Declaration was adopted by the Chllia Vista City COllllCil as part of General Plan
amendment and the re.zoning of the property at 675 Oxford Street on April 7, 1998 per Resoilltion 18957; and
WHEREAS, the Design Review Committee reviewed and recommended that the Redevelopment Agency
approve the proposed Project subject to the conditiolls listed in Exhibit B of the Owner Participation Agreement; and,
WHEREAS, the Redevelopment Agency of the City of Chula Vista has been presented an Owner Participation
Agreement, said agreement being on file in the Office of the Secretary to the Redevelopment Agency and known as
docllment RACO 98-12, approving the construction of a 76,885.square foot office building located at 675 Oxford
Street, depicted in Exhibit A and subject to conditions listed in Exhibits B of said agreement.
NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA does hereby find,
order, determine and resolve as follows:
1. The Agency, as a Responsible Agency under CEOA, has considered Negative Oeclaration IS.97-24 previously
adopted by the City Council, and the environmental effects of the Project as described therein, in reaching its decision
hereunder.
2. The proposed Project is consistent with the Southwest Redevelopment Plan and shall implement the
purposes thereof by eliminating blighting infillences, providing a new building, and plltting vacant parcels to higher and
better llses.
3. The Redevelopment Agency of the City of Chula Vista hereby approves the Project and the Owner
Participation Agreement with The Greenwald Company for the construction of the Project, in the form presented in
accordance with plans attached thereto as Exhibit A and subject to conditions listed in Exhibit B of said agreement.
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Resolution
Page 2
4. The Chairman of the Redevelopment Agency is hereby authorized to execute the subject Owner
Participation Agreement between the Redevelopment Agency and The Greenwald Company.
5. The Secretary of the Redevelopment Agency is authorized and directed to record said Owner Participation
Agreement in the Office of the County Recorder of San Diego, California.
Presented by: Approved as to form by:
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Chris Salomone
Community Development Director
H \HOME\COMM DEIARESOS\6750XF OR RES
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Familv Resource Cenler CH~ ~~
ProJect Applicant: The Greenwald Co. CommunItY Dnelopment
Department
CilV 01 Chola ViSla
216 Fourth Allnua
Chula VIsta CA 91910
619.691.5019/619.416,5310 IIIX
cvcomdn@Cl.chllle"'sta.cus
HOME
BASE
LOCATOR:
@
lIarth
SCALE:
liD SCale
DATE:
August 98 -3-'6
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Recording Requested By:
CHULA VISTA REDEVELOPMENT AGENCY
276 Fourth Avenue
Chula Vista, CA 91910
When Recorded Mail To:
CHULA VISTA REOEVELOPMENT AGENCY
276 Fourth Avenue
ChulaVista,CA 91910
Attention: Yolanda Garcia (Space Above This line For Recorder)
APN: 618.200.53 and 618.280.31
OWNER PARTICIPATION AGREEMENT
(675 Oxford Street)
The Greenwald Comoanv
THIS AGREEMENT is entered into by the CHULA VISTA REDEVELOPMENT AGENCY, a body corporate and politic (hereinafter
referred to as "AGENCY"), and The Greenwald Company, a California Corporation (hereinafter referred to as "DEVELOPER") effective
as of September ll. 1998.
WHEREAS, the DEVELOPER owns and desires to develop a certain real property located at 675 Oxford Street within the
SOUTHWEST REDEVELOPMENT Project Area which is subject to the jurisdiction and control of the AGENCY: and,
WHEREAS, the DEVELOPER applied for and obtained a Special Use Permit (SUPS.98.04) from the Chula Vista Redevelopment
Agency on May 19, 1998 for the establishment of the San Diego County South Bay Health & Human Services Agency Family Resource
Center at 675 Oxford Street; and,
WHEREAS, the DEVELOPER has presented plans for development to the Oesign Review Committee for the Project; and,
WHEREAS, said plans for development have been recommended for approval by said committee; and,
WHEREAS, the AGENCY has approved the development proposal as submitted by the DEVELOPER subject to certain terms and
conditions, including that Oevelopers enter into and comply with the terms of this; and,
WHEREAS, the AGENCY desires that said development proposal be implemented and completed as soon as it is practicable.
NOW, THEREFORE, the AGENCY and the DEVELOPER agree as follows:
1. The foregoing recitals are incorporated into this Agreement.
2. The property to be developed is described as Assessor's Parcel Numbers 618.200.53 and 618.280.31 located at 675
Oxford Street and shown as Parcel 4 per Parcel Map No. 12083 recorded on April 29, 1982 at the San Diego County
Recorder's Office ("Property"l. The Project also includes the development of Assessor's Parcel Number 618.280.31,
generally bounded by Oxford Street, the San Diego Trolley Right.Of.Way, and Palomar Street, and referred to in the
attached Locator Map as the MTOB Property.
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3. The DEVELDPER covenants by and for himself, his heirs, executors, administrators and assigns and all persons claiming
under or through them the following:
A. DEVELDPER shall develop the Property in accordance with the AGENCY approved development proposal
attached hereto as Exhibit" A" and on file with the AGENCY Secretary, as Docllment No. RACO.9H.12.
B. DEVELOPER shall obtain and fully comply with all necessary State and local governmental permits required
for the development and operation of the Project.
C. DEVELOPER shall obtain building permits within three months from the date of this Agreement and shall
actually develop the Property with the Project to completion within one year from the date of issuance of the
building permits. In the event DEVELOPER fails to obtain such building permits within said one year, the
approval of OEVELOPER's development proposals shall be void and this Agreement shall have no further force
or effect.
O. All deeds granting or conveying an interest in the property, the following language shall appear:
"The grantee herein covenants by and for himselt his heirs, executors, administrators and
assigns, and all persons claiming under or through them, that there shall be no
discrimination against or segregation of, any person or group of persons on account of
race, color, creed. national origin or ancestry in the sale, lease, sublease, transfer, use,
occupancy, tenure, or enjoyment of the premises herein conveyed. nor shall the grantee
himself or any persons claiming under or through him establish or permit any such practice
of discrimination or segregation with reference to the selection, location, number, use or
occupancy of tenants, lessees, subtenant lessees, or vendees in the premises herein
conveyed. The foregoing covenants shall run with the land."
E. All leases demising an interest in all or any part of the property, the following language shall appear:
"The lessee herein covenants by and for himself, his heirs, executors, administrators and
assigns, and all persons claiming under or through him, and this lease is made and
accepted upon and subject to the following conditions:
That there shall be no discrimination against or segregation at any person or group of
persons, on account of race, color, creed. national origin, or ancestry, in the leasing,
subleasing, transferring use, occupancy, tenure, or enjoyment of the premises herein
leased. nor shall the lessee himself or any persons claiming under or through him, establish
or permit any such practices of discrimination or segregation with reference to the
selection, location, number or use, or occupancy of tenants, lessees, sublessees,
subtenants, or vendees in the premises herein leased."
4. OEVELOPER shall comply with the attached conditions imposed by the Design Review Committee and the
Redevelopment Agency as described in Exhibit "B." Such conditions must be satisfied prior to the City's issuance of
a Certificate of Occupancy for the Project. DEVELOPER shall exercise best efforts to enter into an agreement with
MTDB and the Redevelopment Agency for the completion of all required off.site improvements on the MTDB property,
designated on Exhibit B hereof (the NMTDB off. site Improvements" by no later than sixty (601 days following the
effective date hereof. Such agreement, if entered into, shall guarantee completion of the MTDB off. site Improvements
prior to issuance of a Certificate of Occupancy for the Project.
5. DEVELOPER agrees to maintain the premises in FIRST CLASS CONDITION.
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A. DUTY TD MAINTAIN FIRST CLASS CDNDlTIDN. Throughout the term of this Agreement, DEVELDPER shall,
at DEVELOPER's sole cost and expense, maintain the Premises alld all Improvements in first class condition
and repair, and in accordance with all applicable laws, permits, licenses and other governmental authorizations,
rules, ordinances, orders, decrees and regulations now or hereafter enacted, issued or promulgated by federal,
state, county, municipal, and other governmental agencies, bodies and collrts having or claiming jurisdiction
and all their respective departments, bureaus, and officials.
If the owners fail to maintain the property in a "first class condition", the Redevelopment Agency of the City
of Chula Vista or its agents shall have the right to go on the property and perform the necessary maintenance
and the cost of said maintenance shall become a lien against the property. The Agency shall have the right
to enforce this lien either by foreclosing on the property or by forwarding the amount to be collected to the
Tax Assessor who shall make it part of the tax bill.
B. DEVELOPER shall promptly and diligently repair, restore, alter, add to, remove, and replace, as required, the
Premises and all Improvements to maintain or comply as above, or to remedy all damage to or destruction of
all or any part of the Improvements. Any repair, restoration, alteration, addition, removal, maintenance,
replacement and other act of compliance under this Paragraph (hereafter collectively referred to as
"Restoration") shall be completed by DEVELOPER whether or not funds are available from insurance proceeds
or subtenant contributions. The Restoration shall satisfy the requirements of any sub. sublease then in effect
for the Premises or Improvements with respect thereto or, if no sub.sublease is then in effect, shall be repaired
or restored in the building standard shell condition existing immediately prior to the date of such damage or
destruction.
C. In order to enforce all above maintenance provisions, the parties agree that the Community Development
Director is empowered to make reasonable determinations as to whether the property is in a first class
condition. If he determines it is not, he (11 will notify the owners in writing and (21 extend a 30.day period to
cure. If a cure or substantial progress to cure has not been made within that time, the Director is authorized
to effectuate the cure by City forces or otherwise, the cost of which will be promptly reimbursed by the
owners.
In the event that there is a dispute over whether the property is in a first class condition or over the amount
of work and expense authorized by the Director to cure, the parties agree that the City Manager or his
designee, shall resolve that dispute and both parties shall be bound by his decision. In the event that the
Director decides without dispute, or the City Manager decides in dispute, that the City has to cure and the
amount of cure, then owners have to reimburse the City within thirty 130) days of demand. If not reimbursed,
it constitutes a lien and City is authorized to record said lien with the County Recorder, upon the premises.
D. FIRST CLASS CONDITION DEFINED. First class condition and repair, means Restoration which is necessary
to keep the Premises and Improvements in efficient and attractive condition, at least substantially equal in
quality to the condition which exists when the condition(s) in attached Exhibit B are completed."
6. AGENCY and DEVELOPER agree that the covenants of the DEVELOPER expressed herein shall run with the land.
DEVELOPER shall have the right, upon prior written approval of AGENCY, to assign its rights and delegate its duties
under this Agreement.
7. AGENCY and DEVELOPER agree that the covenants of the DEVELOPER expressed herein are for the express benefit
of the AGENCY and for all owners of real property within the boundaries of the SOUTHWEST REDEVELOPMENT project
area as the same now exists or may be hereafter amended. AGENCY and DEVELOPER agree that the provisions of
this Agreement may be specifically enforced in any court of competent jurisdiction by the AGENCY on its own behalf
or on behalf of any owner of real property within the boundaries of the SOUTHWEST REDEVELOPMENT Project Area.
3 3-d
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8. AGENCY and DEVELDPER agree that this Agreement may be recorded by the AGENCY in the Dffice of the County
Recorder of San Diego County, California.
9. Time is of the essence for each and every obligation hereunder.
10. If DEVELDPER fails to fulfill its obligations hereunder after due notice and reasonable opportunity to cure, DEVELOPER shall
be in default hereunder, and in addition to any and all other rights and remedies AGENCY may have, at law or in equity.
AGENCY shall have the right to terminate its approval of the Project and this Agreement.
11. DEVELOPER acknowledges and agrees that AGENCY'S approval of this Agreement and the Project in no way commits the
AGENCY to subsidize the Project or any off.site improvements required therefor.
SIGNATURE PAGE FOLLOWS
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Se~;.\';ii,-:i;1B..£4.:.~~P_.II-!~. ~REENWALD COMPANY 619-232-1997
P.O2
SIGNATURE PAGE
IN WIT.ill WHEREOF THE PARTIES HAVE ENTERED 'NTO THIS ABRUMM EffECTWE AS Of THE DAn fiRST WRITTiN "IIOVE.
"AGENCY.
REDEVELOPMENT AGENCY OF
THE CITY Of CIlULA VISTA
DATED: 8y;
Shirley Harton, ChllÌrman
"DEVELOPEr
DATED: By:
NOT MY' P1oII8 IttICIIlClmawledgmlllt ca'd.
APPROVED AS TO fORM BY:
Jahft M. KIhInJ. AI IIIC't Attorney
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EXHIBIT B
Conditions of Approval
Owner Participation Agreement
The Greenwald Company
675 Oxford Street
Chula Vista, CA
DESIGN REVIEW
CONDITIONS OF APPROVAL
1. Comply with all conditions of approval of Special use Permit SUPS.9B.04 as approved by the Chula Vista, Redevelopment Agency
pursuant to Resolutioll No. 1583.
2. To the satisfaction of the City Engineer, complete the following:
A. On the MTOB parcel, modify the sidewalk to curve further to the west where it meets the public right.of.way.
B. Place a pipe rail with a 'Cross at Corner" and arrow sign at end of the sidewalk behind the curb.
C. Construct a decorative fence in the Palomar Street median from the trolley crossing gate structure easterly, 200 feet beyond the
MTOB parcel's easterly property line.
O. Construct the missing sidewalk on the north side of Palomar Street to the west, including a handicap ramp to the northeast
corner of Industrial Boulevard and Palomar Street.
E. Reconstruct the curb return at the southeast corner 01 Palomar street and Industrial to a smaller curb return radius and relocate
the existing traffic signal.
F. Modify left turn phasing from Industrial Boulevard to Palomar Street.
3. Subject to the approval of MTOB and the City Engineer:
A. Remove a portion 01 sidewalk on the trolley parcel adjacent to Palomar street and plant shrubbery in its place and construct
decorative lending along the entire northern frontage of the trolley parcel.
B. Construct an access ramp to handicapped standards from Industrial Boulevard to the trolley station adjacent to the existing
stairs.
C. In the event MTOB does not approve 3.A or 3.B above, place a pipe rail with a 'Cross at Corner" and arrow sign at the end of the
trolley parcel sidewalk behind the curb.
4. Prior to submittal 01 any building permit application, submit a modified linallandscape plan!s) lor review and approval 01 the Landscape
Planner, modifying said landscape plan!s) as follows:
A. Add more detail on the pedestrian link through the MTOB parcel. Cross'sections showing how the walkway running through that
area are needed to understand how the design functions within a retention basin design. The exact "limits" 01 the retention basin
area should be identified on the plan. Currently this proposal is not supportable. An ~ on pedestrian accessibility is not
evident from the design.
More information is also needed to explain how the different plan groupings will be maintained distinct from other groupings. A
hard edge material is needed.
B. More information is also needed to explain how the different plant groupings will be maintained distinct from other groupings. A
hard edge material is needed.
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EXHIBIT B
Conditions of Approval
Owner Participation Agreemellt
The Greenwald Company
675 Oxford Street
Chula Vista, CA
C. Through a Memorandum of Understanding with MTDB, $454,000 has been set aside to beautify the trolley corridor that runs
through the City. A landscape architectural firm has been hired to work with the city and local residents to develop a conceptual
plan to provide landscaping. The project area includes the Palomar Street area. Prior to City approval of any landscape design for
the MTDB parcel, the project landscape architectural firm hired by the City to design the 4.mile corridor. Compatibility with the
trolley corridor project will then be determined.
D. A buffering treatment shall be provided in the planting area along the trolley line in front of the "day care" building. Tree forms
shall be provided.
5. Precise Plan requirements:
A. Prior to construction of the day care facility provide adequate phasing, site plan and architectural information for review of the
Design Review Committee such that an informed recommendation can be made to the Chula Vista Redevelopment Agency.
B. Provide adequate off.site parking by submitting a reciprocal parking agreement or covenant of easement, whichever is applicable,
for the parking area on the adjacent parcel to the east of the Project parcel.
6. Submit the following to the Design Review Committee for review and approval prior to issuance of any building permit:
A. Sign age for the Project.
B. A hardscape plan to show all areas where textured and/or colored hardscape will be installed.
C. A lighting plan for both the MTDB parcel and the parcel upon which the building is to be constructed. Said lighting plan shall also
indicate the locations of bollards, fencing and vehicular and pedestrian obstructions.
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