Loading...
HomeMy WebLinkAboutRDA Packet 1997/08/05 Notice is hereby given that the Mayor/Chair of the City Council, Redevelopment Agency, Chula Vista Housing Authority, Industrial Development Authority, and Public Financing Authority has called and will convene a special meeting of the City Council, Redevelopment Agency, Housing Authority, Industrial Development Authority, and Public Financing Authority Tuesday, August 5, 1997 at 4:00 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: ". d"ec!are, , ..n", ~r".,~ndhl"f "O"':,rv,'"t,h""3,,tt 8'" ,.~ em~lo o.! b ' " .1) the . Co,;'m'ln' 'G " " C', nd that !paste th'~A~~i1""'!"':;::: .: "".rJattlle ' ShiryHorton,Mayor/Chair Public"Serv.ccs "'u::.,1) , ..n.;;t Cit; ¡¡all on Tuesday, AuguSDA.TJ:2~SIGNED 71'.}n k 'íf Jl.v. A' j £'1 " Council Chambers 4:00 p.m. Public Services Building (immediately following the City Council meeting) SDecial Joint Meeting of the RedeveloDment Agencv/Council/Housing Authority/ Industrial DeveloDment AuthoritY/Public Financing Authority of the City of Chula Vista CALL TO ORDER I. ROLL CALL: Agency/Council/Authority Members Moot -' Padilla_, Rindone -' Salas -' and Chair/Mayor Horton- CONSENT CALENDAR ( Items 2 through 4 ) (Will be voted on immediately following the Council Conseot Calendar during the City Council meeting) The staff recommendations regarding the following item listed under the Consent Calendar will be enacted by the Agency/Council by one motion without discussion unless an Agency/Council member, a member of the public or City staff requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak Form" available in the lobby and submit it to the Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Action Items. Items pulled by the public will be the first items of business. 2. APPROVAL OF MINUTES: July 22, 1997 (Special Joint Meeting) 3. AGENCY TO APPROVE CHANGES IN THE CORDOVA VILLAGE RESOLUTION 1549 DISPOSITION AND DEVELOPMENT AGREEMENT WITH COUNCIL SOUTH BAY COMMUNITY SERVICES FOR THE RESOLUTION 18755 DEVELOPMENT OF A FORTY (40) UNIT AFFORDABLE HOUSING RENTAL PROJECT IN RANCHO DEL REY TO SATISFY RANCHO DEL REY'S SPA ill OBLIGATION TO BUILD HOUSING FOR LOW INCOME FAMlLIESuOn 1/7/97, the Agency/Council approved the Cordova Village Disposition and Development Agreement with South Bay Community Services. In May 1997, South Bay Community Services obtained the balance of funding needed to satisfy their financing needs. However, these funders have requested changes to the DDA in order to conform to their lending requirements. Staff recommends approval of the resolution. (Community Development Director) Agenda .2- August 5, 1997 4. JOINT APPROVING AN AGREEMENT WITH THE LAW FIRM OF COUNCIL STRADLING, YOCCA, CARLSON & RAUTH TO PROVIDE RESOLUTION 18734 BOND COUNSEL SERVICES AND AUTHORIZING THE MAYOR AGENCY TO EXECUTE SAID AGREEMENT--Since 1985, the City and Agency RESOLUTION 1548 have contracted with the law firm of Jones, Hall, Hill & White to HOUSING AUTHORITY provide bond counsel services on all debt issues with the exception of RESOLUTION HA-5 certain assessment district issues. In order to make a determination if INDUSTRIAL DEVELOPMENT a change was desirable, staff conducted a formal selection process for AUTHORITY these services. A Request for Proposals was sent to 15 municipal law RESOLUTION IDA-34 firms. Eleven (II) proposals were received and evaluated by a selection PUBLIC FINANCING committee appointed by the City Manager. The committee interviewed AUTHORITY three firms deemed the best and unanimously selected the firm of RESOLUTION PFA-2 Stradling, Yocca, Carlson & Rauth. Staff recommends approval of the resolution. (Director of Finance) Continued from the meeting of 7/221')'7. . . . END OF CONSENT CALENDAR' . . ..... ADJOURNMENT TO CITY COUNCIL MEETING ..... ORAL COMMUNICATIONS This is an opportunity for the general public to address the various agencies on any subject matter within the Agency/Authorities' jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the Agency/Authority from taking action on any issues not included on the posted agenda.) If you wish to address the Agency/Authorities on such a subject, please complete the "Request to Speak Under Oral Communications Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record purposes and follow up action. PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES The following items have been advertised and/or posted as public hearings as required by law. If you wish to speak to any item, please fill out the "Request to Speak Form" available in the lobby and submit it to the Redevelopment Agency or the City Clerk prior to the meeting. 5. PUBLIC HEARING: SPECIAL USE PERMIT SUPS-96-06(M) REQUEST FOR ADDITIONAL DAY OF OPERATIONS (WEDNESDAY) FOR EXISTING SWAP MEET OPERATING FRIDAY THROUGH SUNDAY AT 690 'L' STREET, WITHIN THE I-L AND I-L.P ZONES--The swap meet has been conducting business for approximately 5 months on a Friday through Sunday basis. The applicant is proposing to expand operations to include Wednesdays. Staff recommends approval of the resolution based on the fmdings and subject to the conditions contained in the resolution. (Director of Planning and Director of Community Development) AGENCY APPROVING A MODIFICATION TO SPECIAL USE PERMIT SUPS-96- RESOLUTION 1550 08 TO ALLOW AN ADDITIONAL DAY OF OPERATIONS (WEDNESDAYS) FOR A SWAP MEET LOCATED AT 690 'L' STREET - . Agenda -3- August 5, 1997 ITEMS PULLED FROM THE CONSENT CALENDAR This is the time the various agencies will discuss items which have been removed from the Consent Calendar. Agenda items pulled at the request of the public will be considered prior to those pulled by various agency members. OTHER BUSINESS 6. DIRECTOR'S REPORTIS) 7. CHAIR'S REPORT(S) 8. AGENCY MEMBER COMMENTS ADJOURNMENT The meeting will adjourn to the Regular Redevelopment Agency Meeting on August 19, 1997 at 6:00 p.m. immediately following the City Council meeting, in the City Council Chambers, and to a Special Meeting when called by the Housing Authority, Industrial Development Authority and/or Public Financing Authority. 1M: IH 0 MEICOMMD EVIA GEND ASIO8.o5 -97 . RD A I - . MINUfES OF A SPECIAL JOINT MEETING OF THE REDEVELOPMENT AGENCY/ CITY COUNCIL/HOUSING AUTHORITY/INDUSTRIAL DEVELOPMENf/PUBUC FINANCING AUTHORITY OF THE OTY OF ŒIULA VISTA Tuesday, July 22, 1997 Council Chambers 7:35 p.m. Public Services Building CAlL TO ORDER 1. ROIL CAlL: PRESENT: Members: Moot, Rindone, Salas, and Chair/Mayor Horton ABSENT: Member: Padilla ALSO PRESENT: Assistant Executive Director/City Manager, Sid W. Morris; Legal Counsel/City Attorney, John M. Kaheny; City Clerk, Beverly A. Authelet CONSENT CALENDAR (Item pulled: 4) BALANCE OF THE CONSENT CALENDAR OFFERED BY MEMBER RJNDONE, headings read, texts waived, passed and approved 4-0-1 (Padilla absent). 2. APPROVAL OF MlNUfES: 5/23/95 (joint Public Financing Authority/Council); 09/17/96 (Housing Authority); 7/9/96 and 01/28/97 (Industrial Development Authority); 06/03/97,06/10/97, and 06/17/97 (joint Agency/Council); 06/24/97 (special Agency) (Member Salas abstained from voting on 5/23/95, 7/9/96, and 9/17/96 minutes since she was not on the City Council at that time). 3. AGENCY RESOLUfiON 1546 APPROVING COST SHARING AGREEMENT BY AND BETWEEN WAIVING THE CONSULTANT SELECfIONPROCESS; APPROVING A COST SHARING AGREEMENf BY AND BE1WEEN THE REDEVELOPMENT AGENCY, ROHR, INc. AND THE SAN DIEGO UNIFIED PORT DISTRJCf, AND BFGW GROUP, ILC FOR SERVICES RElATED TO GROUNDWATER BASIN REDESIGNATION; AND AUTHORJZING THE EXECUTIVE DIRECfOR TO EXECUTE SAME - On 2/11/97, the Agency conceptually approved participation in a petition to the Regional Water Quality Control Board to remove the beneficial use designation from the groundwater basin in the area of the Chula Vista Bayfront, contingent upon a cost sharing agreement among the participating parties and an appropriation of funds for the intended purpose. Staff recommends approval of the resolution. (Community Development Director) 4. AGENCY RESOLUTION 1547 APPROVING THE FORBEARANCE AGREEMENf BETWEEN ONE PARK LIMITED AND THE mUlA VISTA REDEVELOPMENT AGENCY RESTRUCfIJRJNG THE 1985 ORJGINAL AGENCY LOAN IN THE AMOUNT OF $850,000 FOR THE ONE PARK APARTMENTS AT 350 THIRD AVENUE On 10/17/85, the Agency approved an $850,000 ten year deferred loan for the development of a 94-unit residential rental project and parking stmcture located at 350 Third Avenue to benefit moderate income households. The borrower requested Agency financial assistance to offset the costs of a grade level parking stmcture. As the 5/96 due date approached, the borrower requested the Agency to renegotiate the loan. On 9/24/96, the Agency instructed staff to implement the recommended agreement terms as outlined in the Forbearance Agreement. Staff recommends approval of the resolution. (Community Development Director) ó)-I Minutes July 22, 1997 Page 2 Member Moot stated that it was some time ago that staff walked the Agency through this complex financial transaction. He asked if we were able to stay within the guidelines that the Agency had given. He did not remembet discussing the formula and asked fot it to be explained. Was the formula for the kicker? Mr. Salomone stated that this was negotiated with our consultant, Steve Delaney, and was an acknowledgement that a deal made in the mid-80s anticipated a market that was not there in the mid-90s. The kicker was the main forgiveness that we negotiated in an acknowledgement that the market has gone away. The developer has honored every commitment of this agreement including the lump sum payments, the payments for legal costs. This project is in escrow, and we fully expect the escrow to be successful and this forbearance agreement will become unnecessary. We anticipate the sale will go through. We will get a lump sum payoff, and we will be in a lot better shape than this forbearance agreement would have ultimately led us to. Glen Googins, Deputy City Attorney, stated that basically what the transaction did was take the approximately $2.2 million that was due and payable in May 1996 under the original loan agreement and break it into components. First component was the $850,000 original principal balance of the loan and the restructured deal basically said that the developer was obligated to pay $250,000 immediately towards that principal balance and the remaining $600,000 would be repaid over the following three years at 6% interest with quarterly payments payable of $15,000 a piece. The remaining amounts of the loan, approximately $1.35 million in accrued interest and a potential kicker were broken down still further. $500,000 of that amount was also structured as a quarterly payment amortized over the same three-year period as the $600,000 amount described above. And $670,000 of the non-kicker interest was to be repaid based upon the formula which essentially pays the City a portion of that interest depending upon what the appraised value of the property is or what the sale price of the property is by no later than October 1999. In other words, there is a potential payment under this component of $670,000. Basically, it has the City sharing in the upside of the increased value of the property up to a maximum amount of $670,000. Assuming that the developer honors all these various obligations, the $250,000 payment upfront, the structured payments on the $600,000 remaining principal balance, the structured payment on the $500,000 component of the remaining interest, and maybe the formulaic payment up to $670,000, the kicker amount under the original agreement which was estimated at approximately $290,000 would be forgiven. This is consistent with the parameters given which was approved in concept in October. Member Moot asked that if the current escrow goes through, when will the Agency receive the $1.1 million less what has been paid? Juan Arroyo, Housing Coordinator, replied that there would be $1.1 million less any amount paid todate plus interest owed. Mr. Salomone stated that this amount was not included in the budget, but staff told the Agency that we thought that this would happen because at that point it was just going into escrow. These were housing set-aside monies that were loaned, and they are restrictive funds. RESOLUTION 1547 OFFERED BY MEMBER MOOT, heading read, text waived, passed and approved 4-0-1 (Padilla absent). 5. JOINT COUNCIL RESOLUTION 18734, AGENCY RESOLUTION 1548, HOUSING AUfHORIlY RESOLUTION HA-5, INDUSTRIAL DEVELOPMENT AUfHORIlY RESOLUTION IDA-34, AND PUBUC FINANCING AUfHORIlY RESOLUTION PFA-2 APPROVING AN AGREEMENT WITH THE LAW FIRM OF STRADUNG, YOCCA, CARLSON & RAUfH TO PROVIDE BOND COUNSEL SERVICES AND AUfHORIZING THE MAYOR TO EXECUfE SAID AGREEMENT - Since 1985, the City and Agency have contracted with the law firm of Jones, Hall, Hill & White to provide bond counsel services on all debt issues with the exception of certain assessment district issues. In order to make a determination if a change was desirable, staff conducted a formal selection process for these services. A Request for Proposals was sent to 15 municipal ,;)-1- -. Minutes July 22,1997 Page 3 law firms. Eleven proposals were received and evaluated by a selection committee appointed by the City Manager. The committee interviewed three firms deemed the best and unanimously selected the firm of Stradling, Yocca, Carlson & Rauth. Staff recommends approval of the resolution. (Director of Finance) 6. HOUSING AUTHORITY RESOLUTION HA-6 APPROVING FISCAL YEAR 1997-98 BUDGET AND APPROPRIATING ANfIClPATED REVENUES OF $1,500 - The City Council adopted bylaws for the Chula Vista Housing Authority on June 27, 1995. Being a separate entity from the City of Chula Vista, the Chula Vista Housing Authority must approve and adopt a budget in order to appropriate funds. Staff recommends approval of the resolution. (Director of Community Development) . . . END OF CONSENT CAI.F.NDAR . . . ORAL COMMUNICATIONS (There were none) ITEMS PUlLED FROM THE CONSENT CALENDAR (Item No.4 was pulled from the Consent Calendar, but the minutes will reflect the published agenda order). OTHER BUSINESS 7. DIRECfOR'S REPORT(S) - none. 8. CHAIR'S REPORT(S) - none. 9. AGENCY MEMBER COMMENTS - none. ADJOURNMENT The meeting adjourned at 7:44 p.m. Respectfully submitted, Beverly A. Authelet, CMC/AAE City Clerk ~-.3 - . JOINT REDEVELOPMENT AGENCY/COUNCIL AGENDA STATEMENT Item .J Meeting Date 08/05/97 ITEM TITLE: COUNCIL RESOLUTION I Y? ~-r AGENCY RESOLUTION ¡.rtf, TO APPROVE CHANGES IN THE CORDOVA VILLAGE DISPOSITION AND DEVELOPMENT AGREEMENT WITH SOUTH BAY COMMUNITY SERVICES FOR THE DEVELOPMENT OF A FORTY (40) UNIT AFFORDABLE HOUSING RENTAL PROJECT IN RANCHO DEl REY TO SATISFY RANCHO DEL REY'S SPA III OBLIGATION TO BUILD HOUSING FOR LOW INCOME FAMILIES SUBMITTED BY: c~"";, ',wl.pm,"' 0;""" ~L, , REVIEWED BY: Executive Directo¡J110 2i (4/5ths Vote: Yes- No_X..! --ø BACKGROUND: The Cordova Village Disposition and Development Agreement/HOME Program Participation Agreement was approved by Council/Agency on January 7, 1997 by Council Resolution #18548 and Agency Resolution #1527. At that same meeting, the Council approved a HOME loan for this project of $51o,Doo and the Agency approved a Redevelopment Low and Moderate Income Housing Fund loan of $478,280. The Council also approved the Conveyance Agreement and Escrow Instructions with Rancho del Rey Investors, the Assignment of Conveyance Agreement and Escrow Instructions with South Bay Community Services, the Low Income Housing Agreement between Rancho del Rey Investors and South Bay Community Services, and the Rancho del Rey SPA III Affordable Housing Agreement. At the end of May 1997 the proposed Cordova Village was approved for funding by the California Housing Finance Authority (CHFA) and Tax Credit Allocation Committee (TCAC). These approvals completed the funding package needed to satisfy its short and long term financing needs. SBCS's equity investor, California Equity Fund (CEF), as well as CHFA, subsequently requested changes to the Council/Agency's DDA in order to be consistent with their lending requirements. The purpose of this report is to notify the Council/Agency of these requested changes and to solicit Council/Agency's approval. The development process has begun toward building Cordova Village. Escrow closing on construction funds is expected to be on August 11, 1997 with construction starting shortly thereafter. RECOMMENDATION: That Council approve the changes to the Cordova Village Disposition and Development agreement with South Bay Community Services in order to conform with CEF's & CHFA's lending requirements. BOARDS/COMMISSIONS RECOMMENDATION: None. .,3-1 Page 2, Item ..3 Meeting Date 08/05/97 DISCUSSION: The reasons for the requested changes are as follows with a redline and strikeout version of the affected paragraph. Attached is the redline and strikeout copy of the affected Sections in their entirety. Staff feels these changes have no significant impact and will not adversely affect the success of the project. The requested changes have been reviewed and approved by the City Attorney's office. 1) Section 2.14b "Residual Receipts" is specifically defined as the rental income from the Project minus the reasonable "asset oriented" operating expenses for the same period. For purposes of this calculation, reasonable "asset oriented" operating expenses shall inel~de any and all eosts associated .....ith operating the Property inel~ding, '.\'itho~t lilllitation, debt ser',iee on the CHFA Perlflonent Loan, a property lfIanagelllent fee not to exeeed eight (8%) percent of all other such operating expenses, a par-tnership lIIanagement fee, alterations, trash collection, reasonable legal fees, lIIaintenanee s~pplies, adlllinistrative o',erhead directly attrib~table to the Propert'¡, replenishment of capital resmes aeeo~nts inel~ded in l;)eo'eloper's approved b~dgets, sueh amo~nt 10 be held in tr~st exel~si'¡ely for ~se for eapital illlpro'¡elflents 10 the Propert'(, and reasonable "asset orienled" operalional reser-,es not to exceed at any time an amo~nt eq~al to eo/. 01 the ~pcollling 'lear's Effeeti'¡e Gross Incollle, s~ch amo~nts to be held in trust exel~si,'el'{ for ~se for the lIIaintenanee and preservation ot the Property. For purposes of the foregoing definition of "Residual Receipts," any property management fee or partnership management fee which is paid to Developer shall at no time exceed an amount as is customary and standard for affordable housing projects similar in size and scope to the Project. Notwithstanding the foregoing, for purposes of this calculation, reasonable operating expenses shall not include: (i) programmatic or other similar service oriented operating expenses, or (ii) principal and interest payments on any debt subordinate to the City Note or the Agency Note. ~.~ - . Page 3, Item .3 Meeting Date 08105/97 Reason: CHFA needs this language to conform to their terms. The implication is that operating expenses are defined in a slightly more general manner and the cap on the management fee is set to industry standards. The industry standard is currently at 5% of the Effective Gross Income. SBCS's property management costs are projected at 4.3%. There are neither program nor fiscal impacts to changing the method to regulate the management fee. 2) Section 2.16e Reason: CHFA wants this language specified to show the relationship to their documents. The implication is that it repeats what has already been clarified in the preceding paragraphs. 3) Section 2.20 Developer shall be entitled to a developer fee, which includes general overhead and profit, in the amount of $300,000 (the "Developer Fee"). It is anticipated that a total of $168,394 of the Developer Fee shall be paid to Developer as follows: $30,000 shall be paid to Developer upon closing of the BACDB Construction Loan; $30,000 shall be paid to Developer 270 calendar days after closing of the BACDB Construction Loan; and $108,394 shall be paid to Developer upon the issuance by the City of the certificate of occupancy. It is expressly understood that the foregoing payment amounts are subject to adjustments based upon availability of funds. Any unpaid balance of the Developer Fee (the "Deferred Development Fee") remaining after the issuance of the certificate of occupancy shall be evidenced by a promissory note executed in favor of Developer (the "Deferred Developer Fee Note"). ge'¡elaper 5~all net ~e entitle~ ta an,! interest an t~e Deferre~ De','elaper Fee. In the event there are any cost savings realized in the construction of the Project. all available funds attributable to such cost savings shall be applied to the Deferred Developer Fee-ll l6lt elasin~ af t~e CHFA Permanent Loan. ill Q~ t9 ~~! ìI;¡¡¡9P¡¡r~~~jÎ~¡çQíñ~lij~~~ ..ß-,3 - - Page 4, Item ..J.- Meeting Date OB/05/97 ~~í~tr~~~~v~!~p~rf~~;m~V~g~~~ç~~~~~~~¡Ø~~¡ Regular payments on the Deferred Developer Fee Note shall be made on an annual basis, out of one hundred (100%) percent of the Residual Receipts as defined and calculated in Section 2.14. Such amounts shall be paid to Developer on a priority basis to all other debt service on the Property except for the BACOB Construction loan, the CHFA Permanent loan and the LlSC loan. Oeveloper shall specifically be entitled to payment of the Deferred Developer Fee from one hundred (100%) percent of Residual Receipts, if any, before payment of the installment amounts due to City and Agency pursuant to the City Note and Agency Note. The Residual Receipts payments, if any, shall be paid to Developer on or before 30 days after the first year anniversary of the date on which the City issues the certificate of occupancy, and on or before 30 days after each subsequent yearly anniversary of said date thereafter until the Deferred Developer Fee has been paid in full. Developer may record a deed of trust securing the Developer Fee Note, but such deed of trust shall be subordinate to the City Trust Deed, the Agency Trust Oeed, the Covenants Agreement, the TCAC Regulatory Agreement, any deed of trust securing the repayment of the LlSC loan, and any deeds of trust securing the construction and permanent financing. Reasons: CEF requires the deferred developer fee to earn at least a small interest rate (3-6% simple interest) to substantiate it as a loan to the Internal Revenue Service. In the event there is a deferred developer fee, it does not appear at this point that it would exceed $30,000 which at most would be paid off in six years. This interest is so insignificant that it will not adversely affect payment to the City and Agency. The line inserted is to clarify to CEF that the developer fee will not exceed $300,000. This matches the budget as submitted in January when approved. As was then explained, TCAC allows the developer to collect up to 15% of the total development costs for its developer fee. SBCS is only collecting 5.5% of the total developement costs, $300,000, as an effort to keep the costs at a minimum. Additionally, CHFA prefers reference to closing of the CHFA Permanent loan deleted to remove any misconstrued connection between the deferred developer fee and the closing of the CHFA permanent loan. The cost savings will be applied to the deferred developer fee at the time of the permanent loan closing, but CHFA did not like the way the sentence read. These present neither program nor fiscal impacts to the City/Agency. 5) Section 4.14 .3-c! - . Page 5. Item ..J.... Meeting Date 08105/97 Reason: CEF needs this language to assure them that if sacs fails to perform as the general partner, CEF has joint approval rights along with the City/Agency for a new general partner and that by appointing a new general partner it will not constitute a default under the City/Agency's DDA. This has neither program nor fiscal impact to the City/Agency. FISCAL IMPACT: There are no significant fiscal impacts from these language changes. They uphold the previously adopted mitigation factors incorporated into the DDA to ensure repayment of the City's loan for $510,000 from HOME funds and repayment of the Agency's loan for $478,280 from Redevelopment low and Moderate Housing Funds. In the event South Bay Community Services (SBCS) has a deferred developer fee, as per changes in Section 2.20, it does not appear at this point that it would exceed $30,000, which at most would be paid off in 6 years. The City/Agency is not expected to begin receiving repayment from sacs until year six, thus an interest rate on the deferred developer fee will not have a significant impact on the City/Agency. Issl H:\HOM~COMMOEVISTAFF.REPI06.05.97Irdrdda2 IJu'v 30. 1997 11O.24amll ~-S . - AGENCY RESOLUTION NO. /:rt/9 and ...l.8:1J -~ COUNCIL RESOLUTION NO. :i JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA TO APPROVE CHANGES IN THE CORDOVA VILLAGE DISPOSITION AND DEVELOPMENT AGREEMENT WITH SOUTH BAY COMMUNITY SERVICES FOR THE DEVELOPMENT OF A FORTY (40) UNIT AFFORDABLE HOUSING RENTAL PROJECT IN RANCHO DEL REY TO SATISFY RANCHO DEL REY'S SPA III OBLIGATION TO BUILD HOUSING FOR LOW INCOME FAMILIES WHEREAS, the original Cordova Village Disposition and Development Agreement ("DDA") was approved by the Council on January 7, 1997 by Council Resolution #18548; and WHEREAS, the necessary funding for the development of Cordova Village has been committed and the non City/Agency funding parties are now requesting minor amendments to the DDA to be consistent with their lending requirements; and WHEREAS, the requested changes to the Cordova Village Disposition and Development Agreement have no significant fiscal impact nor significant regulatory implications to the City/Agency; and NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of Chula Vista does hereby authorize staff to take all necessary measures to amend the Cordova Village Disposition and Development Agreement as indicated on Attachment A attached hereto and incorporated herein by this reference. Presented by Approved as to form by @L S'~ \ Chris Salomone Director of Community Development IISS} H.\HOMEICOMMOEV\RESOS\ROROOA2J (J"'V 29, 1991 (5.01pm)] ..3-" - . ATTACHMENT A - Page 1 of 8 2.14 Citv/Aqencv Loan Repavrnent Obliqations a. Payment of principal and interest on the City Note and the Agency Note (hereinafter sometimes collectively referred to as the "City/Agency Notes") shall be made, on an annual basis, out of a fund equal to seventy-five (75%) percent of the "Residual Receipts" (defined below) derived from the Property and/or the operation of the Project. Payments on the City/Agency Notes from said fund shall be made on a pro rata basis in accordance with the proportion the City Loan and the Agency Loan bear to the total amount loaned to Developer by the City and the Agency. Such amounts shall be paid on a priority basis to all other debt service on the property except for the CHFA Permanent Loan, the LISC Loan and the Deferred Developer Fee (as defined below). Residual Receipts shall be calculated by Developer each and every year commencing with the first year anniversary of the issuance of the certificate of occupancy by the City. The seventy-five (75%) percent Residual Receipts payments, if any, shall be made on or before thirty (30) days after the first year anniversary of the date on which the Deferred Development Fee (as defined below), has been paid in full, and on or before 30 days after each subsequent yearly anniversary of said date thereafter. b. "Residual Receipts" is specifically defined as the rental income from the Project minus the reasona~le "assot orieRted" operating expenses for the same period. For purposes of this calculation, reasona~le "ClOset oricRted" o~cratiRg cJEpenscG sHall iRcluàc CHI) aRd all COGtG aoGociatcd ..itR o 3cratiRg thc Propcrty incluàing, ..itRout limitatioR, dc~t scr.ice OR thc CIIFA PCImaReRt LoaR, a property maRa'3omeRt fee not te CJweed eight (811) perccRt of all other OUCH operatiRg cJ[~cRBes, a 3artRership ~-7 ..- ATTACHMENT A - Page 2 of 8 the I'ro~ert), aRà r caGoRable "asset orÜmted" o~cratioflal reser:CG Rot to cJwceEÌ at any tiffiC ùR amount cq:ual to 0;"6 of the upcoffiiR§J year's Effecti...e CrOGO IRcome, such C\ffiOURto to be hclà iR trust eJcclusi.el) for usc for the ffiaintenance and ~reoer.ation 6£ the I'ropcrt). For purposes of the foregoing definition of "Residual Receipts, " any property management fee or partnership management fee which is paid to Developer shall at no time exceed an amount as is customary and standard for affordable housing projects similar in size and scope to the Project. Notwithstanding the foregoing, for purposes of this calculation, reasonable operating expenses shall not include: (i) programmatic or other similar service oriented operating expenses, or (ii) principal and interest payments on any debt subordinate to the City Note or the Agency Note. c. The twenty-five (25%) percent of Residual Receipts remaining after the annual payments on the City/Agency Notes shall be used by Developer only for costs and improvements related to the Property or services provided directly to the occupants of the Restricted Units by Developer. d. Except as otherwise expressly provided hereunder, Developer's obligation to repay the City/Agency Loan shall be limited to Developer's annual payment of seventy-five (75%) percent of the Residual Receipts as described above for a period of fifty- five (55) years following execution of the City/Agency Note (the "Conditional Maturity Date"). Upon the Conditional Maturity Date, City/Agency shall have the option, at any time, in its sole discretion, but after good faith discussions with Developer as to available options, upon ninety (90) days' written notice to Developer, to (a) declare all amounts owed under the City/Agency Notes immediately due and payable, or (b) to require installment payments under the City/Agency Notes based upon (i) a restated principal balance comprised, in the aggregate, of any and all outstanding principal and interest under the City/Agency Notes existing as of the date of City/Agency election, (ii) a prospective interest rate per annum equal to the Prime Rate then in effect for Bank of America, San Diego office, or such other rate mutually agreed to by the City/Agency and Developer, and (iii) monthly installments of principal and interest paid over the course of an amortization schedule to be determined by the City/Agency in their sole discretion, not to be less than ten (10) years. In the event that City/Agency elects repayment approach (b), Developer agrees to execute an endorsement to the Note in favor of City/Agency, and/or other appropriate loan document amendments, reflecting the amended repayment terms described above. e. Notwithstanding the foregoing, in the event that Developer, or any successors thereto, materially breaches the terms of this Agreement, the City/Agency Notes, or the City/Agency Trust ,3..i ATTACHMENT A - Page 3 of 8 Deeds, or triggers a due on sale, transfer or encumbrance provision set forth in the City/Agency Note or City/Agency Trust Deeds, the City/Agency shall have the right in its sole discretion, to declare immediately due and payable all outstanding principal and interest due under the Note, or to pursue any and all other remedies provided, herein, under the Note or Trust Deed, or as otherwise provided at law or in equity. 2.16 Subordination; Refinancinq. City/Agency agrees to subordinate the City Trust Deed, the Agency Trust Deed and the Covenants Agreement to any construction and permanent financing obtained by Developer to develop the Project thereon in an amount not to exceed the amounts listed in the Project Budget attached hereto as Attachment No. 6, as well as any refinancing of said amount; provided, however, that a. any such subordination shall be evidenced by a recorded subordination agreement containing such notice, cure, loan purchase or assumption and Project purchase rights as may be reasonably required by the City/Agency in a form to be approved by the City Attorney, which approval shall not be unreasonably withheld; and b. during the period commencing on the Effective Date of this Agreement and ending on the earlier of (a) the date after which Developer or its successor has repurchased the tax credit limited partners' interests in the partnership created for tax credit purposes, or (b) eighteen (18) years after the date the City issues the certificate of occupancy for the Project, if any such refinance during such period results in an increase in the amount owing over the principal balance due at the time of refinancing, or otherwise a distribution of refinance proceeds, then an amount equal to the greater of the difference between the amount of the principal balance due at the time of the refinancing and the new principal balance upon the refinancing or such refinance proceeds ("Refinance Proceeds") shall, within six (6) months after such refinance, be used only to benefit the Project and prior to using the Refinance Proceeds for such permitted purpose Developer shall notify Agency's Executive Director of such refinance, the amount of the Refinance Proceeds, and the proposed use of the Refinance Proceeds to benefit the Project; and .;.., - - ATTACHMENT A - Page 4 of 8 c. Upon the repurchase of the tax credit partners' interests in the partnership Developer agrees to exercise good faith efforts to explore the feasibility of refinancing the project in order to provide proceeds to pay down any outstanding amounts owed under the City loan and the Agency loan. If such a refinance proves to be feasible on terms favorable to the project, Developer shall exercise good faith efforts to proceed to close on such a refinance. If not feasible, developer shall prepare a written report explaining such infeasibility to the City/Agency and Developer shall have no further obligations under this Section 2.16.c. d. During the period following the conclusion of the period described in subparagraph (i) immediately above, any such refinance that results in an increase in the amount owing over the principal balance due at the time of refinancing, or otherwise a distribution of refinance proceeds, shall be approved in advance by the Agency's Executive Director and an amount equal to the greater of the difference between the amount of the principal balance due at the time of the refinancing and the new principal balance upon the refinancing or such refinance proceeds shall be paid to City/Agency to reduce the outstanding principal and accrued interest due on the City/Agency Notes. ..3 -10 - - ATTACHMENT A - Page 5 of 8 2.20 Developer Fee. Developer shall be entitled to a developer fee, which includes general overhead and profit, in the amount of $300,000 (the "Developer Fee"). It is anticipated that a total of $168,394 of the Developer Fee shall be paid to Developer as follows: $30,000 shall be paid to Developer upon closing of the BACDB Construction Loan; $30,000 shall be paid to Developer 270 calendar days after closing of the BACDB Construction Loan; and $108,394 shall be paid to Developer upon the issuance by the City of the certificate of occupancy. It is expressly understood that the foregoing payment amounts are subject to adjustments based upon availability of funds. Any unpaid balance of the Developer Fee (the "Deferred Development Fee") remaining after the issuance of the certificate of occupancy shall be evidenced by a promissory note executed in favor of Developer (the "Deferred Developer Fee Note"). Dc.rclo!3cr shall not se cntitlcà to aR:,' intcrcot OR the Dcfcrrcà Dc.clo!3er ¥ee-. In the event there are any cost savings realized in the construction of the Project, all available funds attributable to such cost savings shall be applied to the Deferred Develo er Fee egu ar paymen s on t e e erre eve oper ee 0 e s a e ma ë on an annual basis, out of one hundred (100%) percent of the Residual Receipts as defined and calculated in Section 2.14. Such amounts shall be paid to Developer on a priority basis to all other debt service on the Property except for the BACDB Construction Loan, the CHFA Permanent Loan and the LISC Loan. Developer shall specifically be entitled to payment of the Deferred Developer Fee from one hundred (100%) percent of Residual Receipts, if any, before payment of the installment amounts due to City and Agency pursuant to the City Note and Agency Note. The Residual Receipts payments, if any, shall be paid to Developer on or before 30 days after the first year anniversary of the date on which the City issues the certificate of occupancy, and on or before 30 days after each subsequent yearly anniversary of said date thereafter until the Deferred Developer Fee has been paid in full. Developer may record a deed of trust securing the Developer Fee Note, but such deed of trust shall be subordinate to the City Trust Deed, the Agency Trust Deed, the Covenants Agreement, the TCAC Regulatory Agreement, any deed of trust securing the repayment of the LISC Loan, and any deeds of trust securing the construction and permanent financing. 4.14 Prohibition Aqainst Assiqnment and Transfer. The qualifications and identity of Developer are of particular concern to City and Agency. It is because of those qualifications and identity that City and Agency have entered into this Agreement wi th Developer. Accordingly, for a period of fifty-five (55) years ..3..1/ - - ATTACHMENT A - Page 6 of 8 from the Effective Date, (1) Developer, without City's or Agency's prior written approval, shall not, whether voluntarily, involuntarily, or by operation of law, and except as permitted in this Section 4.14, undergo any significant change in ownership or assign all or any part of this Agreement or any rights hereunder, and (2) Developer without City's or Agency's prior written approval, shall not, whether voluntarily, involuntarily, or by operation of law, and except as permitted in this Section 4.14, assign all or any part of the Property or Project. Notwithstanding the foregoing, the following shall not be considered a significant change in ownership or an assignment or transfer and shall not require City or Agency approval for purposes of this Section 4.14: (i) Transfers to any entity or entities owned or controlled by Developer. (ii) Transfers to a non-profit public benefit corporation sponsored by Developer whose board of directors shall be comprised of five members, three (3) of which shall be designated by Developer and two (2) of which shall be designated by a tenant association to be organized by the occupants of the Project. Pending formation of the tenant association, Developer shall designate all directors, two (2) of which shall, if possible, be tenants of the Project. (iii) Transfers to any partnership formed by Developer pursuant to which Developer retains operational and managerial control (Agency acknowledges that Developer intends to assign this Agreement to a limited partnership, the managing general partner of which shall be Developer) and sale of such partnership interests to the general partners at the conclusion of the 15-year tax credit period. (iv) The conveyance or dedication of portions of the Property to the City or other appropriate governmental agency for the formation of an assessment district, or the granting of easement or permits to facilitate the development of the Property. (v) A sale or transfer of some or all of Developer's interest in the Property to investors or syndicators or a sale or transfer ..3 -/~ ATTACHMENT A - Page 7 of 8 of some or all of the investor's interest in the limited partnership by the investors or syndicators, or to a limited partnership of which Developer is a partner. (vi) The leasing of all or any part or parts of a building or structure. (vii) Transfer of property management responsibilities, provided, however, that Developer shall provide City/Agency thirty (30) days prior written notice of any such management change, and that this exception shall be limited to transfers to property managers with significant experience in managing projects similar to the Project. Any such assignee shall be subject to all terms and conditions of this Agreement, including, without limitation, all affordability restrictions concerning the occupancy of the Property. Developer shall deliver written notice to City or Agency requesting approval of any assignment or transfer requiring City or Agency approval hereunder. Such notice shall be given prior to Developer entering into a formal written agreement with the proposed assignee. In considering whether it will grant approval to any assignment by Developer of its interest in the Property or any portion thereof, which assignment requires City or Agency approval, City or Agency, as applicable, shall consider factors such as (i) the financial strength and capability of the proposed assignee to perform Developer's obligations hereunder and (Ü) the proposed assignee's experience and expertise in the planning, financing, development, and operation of similar projects. No assignment, including assignments which do not require City or Agency approval hereunder, but excluding assignments for financing purposes, shall be effective unless and until the proposed assignee executes and delivers to Agency and City an agreement, in form satisfactory to City's or Agency's attorney, assuming the obligations of the assignor which have been assigned. Thereafter, the assignor shall be relieved of all responsibility to Cit~ and Agency for performance of the obligations assumed by the ass~gnee. No lender approved by Agency or City pursuant to Section 4.16 shall be required to execute an assumption agreement and such lender's rights and obligations hereunder shall be as set forth in Section 4.16. j -1.3 - - ATTACHMENT A - Page 8 of 8 ~ ..,'1 AGENDA STATEMENT FOR THE CITY COUNCIL AND BOARDS OF DIRECTORS OF THE REDEVELOPMENT AGENCY. THE INDUSTRIAL DEVELOPMENT AUTHORITY. THE HOUSING AUTHORITY. AND THE PUBLIC FINANCING AUTHORITY Item 4 Meeting Date 8/05/97 ITEM TITLE: Resolution Approving an agreement with the law firm of Stradling. Yocca, Carlson & Rauth to provide Bond Counsel services and authorizing the Mayor to execute said agreement SUBMITTED BY: "..oM'o"., COAAOÜ'Jij ""00' ",", AA ;, WA H. '" " Director of FinanCe{~ ~ REVIEWED BY: City Manage~ ~ ~ (4/5ths Vote: Yes _No---2LI The City and the Agency have contracted with the same law firm to provide bond counsel services on all debt issues except certain assessment district issues since 1985. Staff felt that it would be beneficial to conduct a formal selection process for these services in order to make a determination whether or not a change was desirable. A Request for Proposals to provide bond counsel services for the City, Redevelopment Agency, Industrial Development Authority, Housing Authority, and Public Financing Authority was sent to fifteen municipal law firms. Eleven proposals were received and evaluated by a selection committee appointed by the City Manager comprised of the City Attorney, the Director of Community Development, and the Director of Finance. After interviewing the three firms deemed the best, the committee unanimously selected the firm of Stradling, Vocca, Carlson & Rauth (Stradling). RECOMMENDATION: That Council and the Boards of the Agency and various authorities adopt the resolution approving the agreement with the law firm of Stradling, Vocca, Carlson & Rauth, and authorizing the Mayor to execute the agreement. DISCUSSION: The City and the Agency have contracted with the law firm of Jones, Hall, Hill & White to provide bond counsel services on all debt issues except certain assessment district issues since 1985. Staff felt that it would be beneficial to conduct a formal selection process in order to determine if a change would be desirable. Fifteen municipal law firms were mailed a Request for Proposals to provide bond counsel services for the City, Redevelopment Agency, Industrial Development Authority, Housing Authority, and Public Financing Authority. 4-1 Page 2. Item 4 Meeting Date 8/05/97 Eleven proposals were received and evaluated by the Selection Committee based on the following criteria: A. The firm's experience and performance on comparable engagements with an emphasis on California. This criteria was applied by reviewing the number and type of issues in California during the last three years for which the firm acted as bond counsel. B. The quality of the firm's personnel to be assigned to the engagement and the quality of the personnel available for consultation. This criteria was applied by reviewing the resumes of the specific personnel proposed to work with the City and various authorities. C. The firm's demonstrated understanding of the work to be performed and comprehensiveness of the work plan proposed. This criteria was applied by reviewing that part of each proposal which described the philosophy of the firm as far as client service, the firm's perception of their role in the debt issuance process vis-a-vis the roles of the issuer and other financing team members, and the firm's commitment to ongoing consultation regarding financing issues whether or not a specific transaction is in process. D. Price. This criteria was evaluated by asking for a dollar cost as a proportion of issue size for three different debt types, General Fund Revenue Bonds or Certificates of Participation, Redevelopment Agency Tax Allocation Bonds, and Housing Bonds. The top three rated proposers, Stradling, Jones, Hall, Hill & White/Luce, Forward, Hamilton & Scripps, and Orrick, Herrington & Sutcliffe were then interviewed by the Selection Committee. Following this process, the Committee unanimously agreed to recommend the selection of Stradling. Although all three finalists are very capable of handling the technical issues involved in any contemplated debt transaction, the committee felt that Stradling was more focused on the type of debt that the City and related entities would be concerned with based on their involvement with other California governmental entities similar in size and complexity to Chula Vista. In addition, Stradling offered the lowest price of the three finalists, with an average cost of $31,833 as compared to $35,000 for Jones, Hall, Hill & White/Luce, Forward, Hamilton & Scripps, and $42,500 for Orrick, Herrington & Sutcliffe. 4-~ - - Page 3, Item 4 Meeting Date 8/05/97 Stradling, Yocca, Carlson & Rauth is made up of eighty-five attorneys, handling matters in substantially all aspects of the law except divorce and criminal work. Their primary focus is on public finance, public law, tax, general corporate law, corporate securities, real estate, litigation, labor, estate planning, pension and profit sharing. Twenty-two members of the firm are engaged in public finance and public law. During each of the last six years, Stradling, Yocca, Carlson & Rauth has ranked among the top five public finance law firms in the State based on both the number of issues and dollar volume of issues. Their experience in the areas of Redevelopment, Housing, and Industrial Development are especially impressive. The firm's main office is located in Newport Beach, with an additional office in San Francisco. Stradling has some familiarity with the City, having acted as underwriter's counsel on the issues for Assessment District 90-2 (Otay Valley Road) and Assessment District 92-2 (Autopark). The contract is presented as a long-term arrangement with no termination date, but terminating upon 30 days notice by either the City or the contractor. This is preferable since the City may go for periods of up to two or three years without the need for bond counsel services. The cost of the services will vary with the size and type of debt issue, but just for information purposes, bond counsel services for a $10 million General Fund, Housing, or Industrial Development issue would be $35,000 plus expenses, while a similar size Tax Allocation Bond issue would cost $30,500 plus expenses. The contract presented is substantially in the form of the City's standard two-party Agreement. Two changes of note proposed by the Consultant were the addition of an arbitration provision (Section 18 of the Agreement), and some modifications to the Hold Harmless provision (Section 7 of the Agreement). The Hold Harmless changes were requested by Consultant on the advice of their insurance carrier. Their proposal, in effect, is to exclude from their contractual indemnity obligation the upfront legal defense of the City against claims arising from allegations that the Consultant caused damages due to a professional "error or omission" (i.e., legal malpractice). The City could still pursue a claim against Consultant for its errors and omissions. However, the City would be responsible for its own legal costs until ultimate liability was determined. If the City prevailed, its legal costs would be recoverable. Consultant also proposes that the City's right to recover damages in the event of Consultant malpractice be limited to the greater of $25 million or Consultant's then in effect malpractice insurance coverage. The contract requires that $25 million in malpractice insurance coverage be maintained, but Consultant currently has $35 million in such coverage. Under the circumstances, the City Attorney believes that these provisions will adequately cover the City's risks in the event of Consultant error in a bond transaction. 4-E - - Page 4, Item 4 Meeting Date 8/05/97 FISCAL IMPACT: There is no direct fiscal impact as a result of the recommended action. The fiscal impact upon future debt issues will vary depending on the size and type of the issue. All costs to be incurred under the subject contract will be paid solely from the proceeds of each particular transaction and therefore become part of the long-term debt cost of issuance. 4-4 - - AGENCY RESOLUTION NO. LS!IE COUNCIL RESOLUTION NO. /(/ 7.3c/ HOUSING AUTHORITY RESOLUTION NO. ~ INDUSTRIAL DEVELOPMENT AUTHORITY RESOLUTION NO. ..J.1 PUBLIC FINANCING AUTHORITY RESOLUTION NO. ~ APPROVING AN AGREEMENT WITH THE LAW FIRM OF STRADLING, YOCCA, CARLSON & RAUTH TO PROVIDE BOND COUNSEL SERVICES AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the City and Agency have contracted with the same law firm to provide bond counsel services on all debt issues except certain assessment district issues since 1985; and WHEREAS, staff felt that it would be beneficial to conduct a formal selection process for these services in order to make a determination whether or not a change was desirable; and WHEREAS, a Request for Proposals to provide bond counsel services for the City, Redevelopment Agency,lndustrial Development Authority, Housing Authority, and Public Financing Authority was sent to fifteen municipal law firms; and WHEREAS, eleven proposals were received and evaluated by a selection committee appointed by the City Manager comprised of the City Attorney. the Director of Community Development. and the Director of Finance; and WHEREAS, after interviewing the three firms deemed best, the committee unanimously selected the firm of Stradling. Yocca. Carlson & Rauth. NOW, THEREFORE, BE IT RESOLVED the City Council, Redevelopment Agency of the City of Chula Vista. Housing Authority, Industrial Development Authority and Public Financing Authority do hereby approve an agreement with the law firm of Stradling, Yocca. Carlson & Rauth to provide Bond Counsel services, a copy of which is on file in the office of the City Clerk as Document No._, BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized and directed to execute said agreement. Presented by Approved as to form by , Robert W, Powell I~ Director of Finance IIBPI H.'SHARED'ATTORNEY'JRESO IJ"'V 11, 1997 (4.30pmll I q-~ ~ Schedule I PROPOSALS RECEIVED FOR BOND COUNSEL SERVICES 1) BEST, BEST & KRIEGER LLP 2) BROWN, DIVEN & HENTSCHKE 3) BROWN & WOOD LLP 4) FULBRIGHT & JAWORSKI LLP 5) HAWKINS, DELAFIELD & WOOD 6) JONES HALL HILL &: WHITE AND LUCE, FORWARD, HAMILTON &: SCRIPPS LLP * 7) MUSICK, PEELER & GARRETT LLP 8) O'MELVENY & MYERS LLP 9) ORRICK, HERRINGTON &: SUTCLIFFE LLP * 10) PRESTON GATES & ELLIS LLP 11) STRADLING, YOCCA, CARLSON &: RAUTH * * Indicates Finalist 4-~ - . Agreement between city of Chula Vista, Redevelopment Agency of the City of Chula Vista, Housing Authority of the City of Chula Vista, Industrial Development Authority of the City of Chula Vista, the Public Financing Authority of the City of Chula vista and Stradling, Yocca, Carlson & Rauth for Bond Counsel Services related to various financings and refinancings to take place over the term of the agreement. This agreement ("Agreement"), dated July 15, 1997 for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1 is between the city-related entity as is indicated on Exhibit A, paragraph 2, as such ("city"), whose business form is set forth on Exhibit A, paragraph 3, and the entity indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, paragraph 6 ("Consultant"), and is made with reference to the following facts: Recitals Whereas, Stradling, Yocca, Carlson & Rauth possesses the requisite expertise and knowledge to assist the city/Agency in providing requisite bond counsel services; and, Whereas, City of Chula Vista, the Redevelopment Agency of the City of Chula Vista, the Housing Authority of the City of Chula Vista, the Industrial Development Authority of the City of Chula Vista, and the Public Financing Authority of the City of Chula Vista, all hereafter referred to as "City" are desirous of taking advantage of said knowledge and expertise; 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 City/Agency within the time frames herein provided all in accordance with the terms and conditions of this Agreement; 4-7 Obligatory Provisions Pages NOW, THEREFORE, BE IT RESOLVED that the CitY/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". The General Duties shall be herein referred to as the "Defined Services". Failure to complete the Defined Services does not, except at the option of the City, operate to terminate this Agreement. B. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. C. Additional Services In addition to performing the Defined Services herein set forth, city may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding increase in the compensation associated with said additional services. D. 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. E. 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 categor- ies, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: 2 4-';' statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 8. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 8, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names city as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 8, unless Errors and Omissions coverage is included in the General Liability policy. F. Proof of Insurance Coverage. (1) Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. G. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation city shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit 3 -(-9 - - access to its office facilities, files and records by Consultant throughout the term of the agreement. B. Compensation Consultant shall be compensated in accordance with Exhibit A, Paragraph 9. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 10, 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 upon 30 days written notice by either party. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 11. 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 City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate"). Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the city's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer. 4 4-10 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 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 City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. 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 5 4-11 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 12. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall indemnify, protect, defend and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims based on errors or omissions of Consultant relating to the professional services rendered or failed to be rendered hereunder and those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Further, except with respect to claims based upon Consultant's professional errors or omissions, Consultant, at its own expense, shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents or employees. with respect to claims based upon Consultant's professional errors or omissions, Consultant shall pay to the City Consultant's proportionate share of such damages as are causally related to the negligent acts, errors or omissions of Consultant in the rendering of or failure to render professional services to the City, but only to the extent that the City becomes legally obligated to pay such damages and in no event to exceed the 6 4-1.;L - - greater of $25,000,000 or the then in effect errors and omissions insurance coverage amount. 8. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, city shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the city, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused city by Consultant's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City that are causally related to the negligent acts, errors or omissions of Consultant. Nothing herein is intended to limit City's rights under other provisions of this agreement. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any 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. 7 4-13 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of city. City hereby 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 city. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have 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 City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of city, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, city will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 8 4 -lei - - 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the city and acted upon by the city in accordance with the procedures set forth in Chapter 1.34 of the Chula vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to recover all reasonable costs incurred in the defense of the claim, including costs and attorney's fees. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, 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 City Unless specifically authorized in writing by City, Consult- ant shall have no authority to act as city's agent to bind city 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. 9 4-/~ - - 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 Law/Venue This Agreement shall be governed by and construed in accordance with the laws of the state of California. Any action arising under or relating to this Agreement shall be brought only in San Diego County, state of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula vista. 18. Arbitration In the event of a dispute regarding fees, costs or any other matter arising out of or related in any way whatsoever to this Agreement, including the quality of the services rendered by Consultant, excluding, however, disputes arising from claims initiated by third parties, the dispute shall be determined, settled and resolved by confidential arbitration in San Diego, California. Any award shall be final, binding and conclusive upon the parties, and a judgment rendered thereon may be entered in any court having jurisdiction thereof. 10 4-1(. - - Arbitration may be demanded by the sending of written notice to the other party. If arbitration is demanded, within 20 days of the demand you shall present a list of five qualified individuals who would be willing to serve that you would find acceptable to act as arbitrator. To serve as arbitrator, the individual must be a retired judge having served on any federal court or the California Superior Court or higher court in the state of California. within 20 days of receiving your list, we may at our sole discretion (i) select any individual from that list and that individual shall serve as the arbitrator, or (ii) propose our own list of five individuals for arbitrator. If we choose to present a separate list you may within 20 days select any individual from that list and that person shall serve as arbitrator. If no arbitrator can be agreed upon at the end of this process, each of us shall select one individual from our own respective list and those two persons shall jointly select the arbitrator. The arbitration shall be conducted pursuant to the procedures set forth in the California Code of civil Procedure Sections 1280 et seq., and in that connection you and we agree that section 1283.05 thereof is applicable to any such arbitration. Nothing herein shall limit the right of the parties to stipulate and agree to conduct the arbitration pursuant to the then-current rules of the American Arbitration Association, the Judicial Arbitration & Mediate Services, or any other agreed upon arbitration services provider. 11 4-/7 - - Signature Page to stradling, Yocca, Carlson & Rauth Agreement for Bond Counsel Services IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: , 19 - City of Chula Vista Redevelopment Agency of the City of Chula Vista Housing Authority of the City of Chula Vista Industrial Development Authority of the City of Chula Vista Public Finance Authority of the City of Chula vista by: Shirley Horton, Mayor/Chair Attest: Beverly Authelet, City Clerk Approved as to form: \. Dated: Stradling, Yocca, Carlson & Rauth, a Professional Cor- poration Exhibit List to Agreement ( X) Exhibit A. ( ) Exhibit B: 12 4-IV - - Exhibit A to Agreement between City of Chula Vista, Redevelopment Agency of the City of Chula Vista, Housing Authority of the City of Chula Vista, Industrial Development Authority of the City of Chula Vista, and the Public Financing Authority of the City of Chula Vista, and Stradlinq. Yocca. Carlson & Rauth 1. Effective Date of Agreement: July 15, 1997 2. City-Related Entity: City of Chula Vista and Redevelopment Agency of the City of Chula Vista, Housing Authority of the City of Chula Vista, Industrial Development Authority of the City of Chula Vista, and the Public Financing Authority of the City of Chula Vista, political subdivisions of the state of California 3. Place of Business for city: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: Stradling, Yocca, Carlson & Rauth 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership ( X ) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: Stradling, Yocca, Carlson & Rauth 660 Newport Center Drive, suite 1600 Newport Beach, CA 92660 (714) 725-4000 Fax (714) 725-4100 7. General Duties: A. Consultant shall perform all of the following services as are necessary for the issuance of bonds or ongoing debt management: 1. Provide ongoing legal advice concerning the financing issues which arise during the term of the agreement. 4-1' -. - . 2. Consult with staff, underwriters, and financial advisors in providing legal advice ~oncerning the structure of contemplated debt ~ssues. 3. Preparation of all legal proceedings deemed necessary or advisable for the authorization, issuance, and delivery of Bonds; including preparation of (i) any documentation required for the loan of Bond proceeds, any Indenture of Trust, Trust Agreements, resolutions, or other documents authorizing the issuance of the Bonds, all agreements providing collateral security for the Bonds except as may be within the scope of responsibility of any attorneys representing other parties to the transaction, (H) all necessary resolutions, notices of hearings, California Debt Advisory commission filings and other reports and documents, (Hi) all certificates, deeds, requisitions, receipts and other documents required in connection with the delivery of the Bonds to the original purchaser thereof, and (iv) all other proceedings of the City/Agency incidental to or in connection with the issuance, sale and delivery of the Bonds. 4. Application for any Internal Revenue Service or other rulings deemed necessary by Contractor and staff to insure the exemption of interest on the Bonds from federal or, if applicable, State personal income taxation. 5. Provide a legal opinion (i) unqualifiedly approving in all respects the legality of all proceedings of the transaction for the authorization, issuance and delivery of the Bonds and related agreements to which the City/Agency is a party, and (H) stating that interest on the Bonds is exempt from federal and State personal income taxation, subject only to any qualifications as may be customary under and as required by applicable federal tax law. Such opinion, shall be addressed to the City/Agency, provided, however, that such opinion shall inure to the benefit of the owners of the Bonds and Consultant shall be entitled to execute letters to other interested parties entitling such parties to rely upon such opinion. In addition, subject to the completion of proceedings to the satisfaction of Consultant, Consultant shall 2 4-.;J...o - . provide such additional legal opinions to the city/Agency, the original purchaser of the Bonds, and other interested parties as shall be requested of and deemed appropriate by Consultant. 6. Participation in the preparation of those portions of the Official statement, relating to the accuracy, completeness and legality of the description of the Bonds, the legal documents prepared by Consultant, and all other matters relating to the validity of the Bonds. 7. Such other services as are customarily performed by bond counsel on similar financing transactions. B. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Date for completion of all Consultant services: Termination of Agreement by written notice from either party. 8. Scope of Work and Schedule: See section 7 above. 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance ( ) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). (X) Errors and Omissions Insurance: $25,000,000 (not included in Commercial General Liability coverage). 10. Materials Required from City: None 3 4 -';"'1 - - 11. Compensation: A. (X) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, city shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount Payable at Closing of Bond Sale: Public Aqencv Revenue Bonds and Certificates of Participation Total Principal Amount of Bonds Sold Fee $5,000,000 or less $15,000 plus .25 of I % of the excess over $1,000,000 $5,000,001 to $10,000,000 $25,000 plus .20 of 1 % of the excess over $5,000,000 $10,000,001 or more $35,000 plus .10 of I % of the excess over $10,000,000 Tax Allocation Bonds Total Principal Amount of Bonds Sold Fee $5,000,000 or less $15,000 plus .20 of 1 % of the excess over $1,000,000 $5,000,001 or more $23,000 plus .15 of 1 % of the excess over $5,000,000 Housinl! Bonds. IDB's (Private Oblil!ors) Total Principal Amount of Bonds Sold Fee $5,000,000 or less $30,000 $5,000,001 and above $30,000 plus .10 of I % of the excess over $5,000,000 4 4-~~ - . ~2. Materials Reimbursement Arrangement: In addition to the foregoing fees, Consultant will be reimbursed for out-of-pocket expenses incurred, including document production and reproduction, travel, telecommunications, messenger services, and other document delivery services. 13. Contract Administrators: city: Robert W. Powell, Finance Director Consultant: Robert J. Whalen, Esq. 14. Liquidated Damages Rate: ( ) other: None 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 17. Permitted Subconsultants: None 18. Bill Processing: A. Compensation is payable upon submission of invoice at bond closing out of bond proceeds. B. City's Account Number: Bond Proceeds 19. Security for Performance: N/A 5 4--~ REDEVELOPMENT AGENCY AGENDA STATEMENT Item S- Meeting Date 08105197 ITEM TITLE: PUBLIC HEARING: TO CONSIDER MODIFYING SPECIAL USE PERMIT SUPS.96.0B(M} TO ALLOW AN ADDITIDNAL DAY OF OPERATION FOR THE EXISTING SWAP MEET LOCATED AT 690 L STREET RESOLUTION /~~f) APPROVING A MoDIFICATIDN TO SPECIAL USE PERMIT SUPS.96. T LLoW AN ADDITIONAL DAY OF OPERATION FOR THE SWAP MEET 0 D AT 690 L STREET SUBMITTED BY: Planning Department <; , Community Developme i ctor C~ REVIEWED BY: ",'"'" m.."-J'Î 'õ ~ (4/5ths Vote: Yes- No.ÀJ BACKGROUND: On December 10, 1996, the Redevelopment Agency approved a Special Use Permit (SUP) for the operation of a Swap Meet at 690 l Street on Fridays, Saturdays, and Sundays. The applicant is requesting the permit be modified to allow the Swap Meet to operate on Wednesdays. The SUP approved by the Agency contains a condition that requires any modification to the Swap Meet operation to be approved by the Agency. It is important to note, as explained in this report, that there are several violations to the conditions imposed by the Agency on the SUP that must be considered as well. The proposed modification to add Wednesdays to the original operation is being presented to the Agency for consideration. The Environmental Review Coordinator has previously conducted an Initial Study (lS-97.03) of possible environmental impacts and issued a Mitigated Negative Declaration (lS.97-07). This project falls within the scope of that Mitigated Negative Declaration. RECOMMENDATION: That the Redevelopment Agency: 1. Open the Public Hearing and consider public testimony; and 2. Adopt the resolution approving the proposed modification to the Special Use Permit to allow an additional day of operation for the Swap Meet located at 690 l Street, subject to the following conditions: a) that the applicant comply with all conditions listed on Attachment 3, except condition 5, within a period of 30 days, subject to revocation of permit upon non-compliance; $-1 - . Page 2. Item S' Meeting Date 08105/97 b) paving of the parking area (condition # 51 shall be done in phases as follows: one.third of the parking area to be paved within 60 days from Agency approval of modification; the second and third phases to be done at city staff's determination that demand for parking requires an additional portion to be paved. Actual paving shall be completed 60 days from written notification to the applicant. BOARDS/COMMISSIONS RECOMMENDA liON: At its July 23, 1997 meeting, the Planning Commission voted 5.0-1-1 to recommend that the Redevelopment Agency approve the modification to add Wednesdays to the Swap Meet operation, subject to the condition that the applicant make every effort to comply with the outstanding conditions listed in Redevelopment Agency Resolution 1523; except for condition # 5, paving of the parking area to a Temporary Use standard, which shall be done as follows: one-third of the parking area shall be paved within 60 days from the date of Agency approval of modification to the operation; the rest of the parking area will be paved at such time as city staff determines that demand for parking requires additional parking to be paved (Minutes attached). At its July 21. 1997 meeting, the Resource Conservation Commission voted 4.0 (three members absent) to recommend that the Redevelopment Agency not approve any modification to the Swap Meet operations. DISCUSSION: Site Characteristics The subject Swap Meet is located on several vacant parcels on l Street east of the intersection with Industrial Boulevard and adjacent to the MTDB right.of-way (see locator map), The site consists of relatively level parcels containing concrete, asphalt. and gravel-covered areas. The site totals 144,000 square feet In area. Zonina and land Use Zone land Use Site I.UI-l-P (limited Industrial) Vacant North R-3 (Multi-Family Residential) Apartments South l-l.P (limited Industrial) Pallet Company East I-l (limited Industrial) Medical/Manufacturing West I-loP & loP (Industrial) Trolley/Industrial Blvd. Proposal The proposal requests permission to open for an additional day of operations. The swap meet is currently open to the public Fridays through Sundays from 7:00 a.m. to 3:00 p.m., with additional hours for setup -S-J. - - Page 3, Item S Meeting Date oB/05/97 and closing. The applicant now proposes to operate the Swap Meet on Wednesdays also, with the same hours of operation. Analysis The Swap Meet commenced operations in February 1997. The City's Finance Department has issued business licenses to approximately 57 vendors at this location. However, no business license has been issued to the applicant for the operation of the Swap Meet because of the existence of outstanding conditions. As soon as the applicant fulfill all conditions and obtains building permits, a business license for the operation for the Swap Meet will be issued. Staff anticipates that building permits and a business license will be issued by August 4, 1997. While five months of operation may not be sufficient time to fully evaluate the Swap Meet operation, the City has received no complaints from neighbors, and it is staff's opinion that one additional day of operation would have no significant additional impact on the surrounding area. Non-Comøliance with Required Conditions Notwithstanding the finding that an additional day of operations would have no significant additional impact, there are a number of conditions that have not been fully met and a number of violations on the site which need to be abated. These conditions and violations are listed in Attachment 3. Staff has had several meetings within the past month with the applicant to discuss full compliance with the conditions of the Special Use Permit and to request abatement of the violations to the Zoning Ordinance. The applicant has indicated that he would begin immediately to address the conditions regarding landscaping, signage, and Building and Housing Department's requirements for issuance of permits. He has also acted to clear up other violations. He stated, however, that he would be unable to accomplish the paving of the parking area immediately and proposed that the paving be completed in phases. Based on staff's observations, the present operation appears to be using less than one-half of the designated parking area. At the same time, the applicant has indicated that paving the entire parking area at one time represents a big expense which will have a detrimental effect on the financial viability of Swap Meet operation. A phased paving approach was discussed and recommended at the Planning Commission meeting of July 23, 1997, and the applicant has indicated that he is agreeable to improving one.third of the lot within a period of BD.days. City Fees There are several city fees associated with the project that the applicant needs to pay in order to obtain his building permit. One of these fees is the Sewer Capacity fee in the amount of $3,072. which will be paid by the applicant prior to and as a condition to obtaining the building permit. Other fees from the Planning and Building and Housing Departments will also be paid prior to obtaining the building permit. ,5-,3 - . Page 4, Item ~ Meeting Date 8/5/97 The Development Impact Fee, which applies to all new development projects is not applicable to the Swap Meet because the Swap Meet is classified as a temporary use and there are not permanent structures to be located on the site. If in the future the Swap Meet becomes a long.term or permanent operation, or if permanent structures are located at the site, the Development Impact Fee will apply. Conclusion Staff considers that allowing the applicant to operate the Swap Meet on Wednesdays, in addition to Fridays, Saturdays, and Sundays, will not have an additional significant impact. However, since there are conditions imposed by the Agency on the original permit that have not been met as well as violations to the Zoning Ordinance, it is imperative that the applicant fulfill all outstanding conditions and abate all violations. The applicant is working to address the conditions and violations as indicated in Attachment 3. He has, for example, removed the illegal signs posted at the site and is working with staff on the submittal of necessary plans to obtain building permits. Addressing all the conditions and violations, especially obtaining building permits, will take additional time. Therefore, staff is recommending that the applicant be given a 30-day period to comply with this requirement. If the applicant does not comply with the conditions within the 30- day period, staff recommends that the City commence proceedings to revoke the permit for the entire operation. Staff considers that paving the parking area in phases is appropriate because it will allow the applicant to do it on an as-needed basis, without economically impacting the Swap Meet operation and responding to the demand for parking. This recommendation is consistent with the Planning Commission recommendation and is agreeable to the applicant. FISCAL IMPACT: Some revenues should be generated by the extra day of operations. However, sales tax revenue figures from the state have not yet been received with respect to the existing operations, and staff is therefore unable to project likely amounts to be generated from an additional day of operations. However, in the original report to the Agency, it was indicated that with 80 vendors, approximately $100,000 in sales tax revenue would be generated to the City annually based upon being open 3 days per week. ATTACHMENTS 1 - Locator 2 - Planning Commission Minutes 3 . Outstanding Conditions IMZD H,IHOMEICOMMOEVISTAFF.REPIOS.O5.97ISWAPMEET.RPT IJu'v 31. 1997 IS'2Samll 5-4 - . RESOLUTION NO. / ~:>-o RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISfA APPROVING A MODIFICATION TO A SPECIAL USE PERMIT TO ALLOW ANADDmONAL DAY OF OPERATIONS FOR A SWAP MEET WCATED AT 690 "L" STREET I. RECITALS A. Project Site WHEREAS, the property which is the subject matter of this resolution is diagrammaticaUy represented in Exhibit A attached hereto and incorporated herein by this reference, and commouly known as 690 "L" Street; and B. Project Applicant WHEREAS, a duly verified application for a modification to Special Use Permit SUPS- 96-08 was flIed with the City of Chula Vista Planning Department on July 3, 1997 by Mr. Victor Joseph (Applicant); and C. Project Descriptiou; Application for Special Use Permit WHEREAS, said application requests approval for an additional day of operations, specificaUy Wednesday, for the previously approved swap meet located at 690 "L" Street in the IL (Limited Industrial) and IL-P (Limited Industrial - Precise Plan) Zones; and D. Planning Commission Record on Application WHEREAS, the Planning Commission held an advertised public hearing on the Project ou July 23, 1997 and voted 5-0-1-1 to recommend that the Redevelopmeut Agency approve the Project iu accordance with Planning Commission Resolution No. SUPS-96- 08(M); and, E. Notice of Public Hearing WHEREAS, the Redevelopment Ageucy set the time and place for a hearing on said Special Use Permit application and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation iu the city and its mailing to property owners within 500 feet of the exterior boundaries of the property at least 10 days prior to the hearing; and G. Place of Public Hearing WHEREAS, the hearing was held at the time and place as advertised, namely August 5, 1997 at 4:00 p.m. in the Council Chambers, 276 Fourth Avenue, before the Redevelopment Agency and said hearing was thereafter closed. ll. PLANNING COMMISSION RECORD The proceedings and aU evidence on the Project introduced before the Planning Commission at their public hearing on this project held on July 23, 1997 and the minutes and resolution resulting therefrom, are hereby incorporated into the record of this proceeding. -S'-S' - . Resolution Page 2 NOW, THEREFORE, BE IT RESOLVED THAT THE REDEVELOPMENT AGENCY hereby approves the modification to the special use permit based on the following fmdings and all other reports, evidence and testimony presented with respect to the proposed use, and subject to the following terms and conditions. . ill. SPECIAL USE PERMIT FINDINGS The following fmdings are required by the Southwest Redevelopment Plan which governs the issuance of special use permits. The Redevelopment Agency of the City of Chula Vista hereby sets forth the following evidentiary basis for approval of the proposed Project: A. That the proposed use at the location is necessary or desirable to provide a service or facility wbich will contn"bute to the general well being of the neighborhood or the community. The proposed additioual day of operations for the swap meet is desirable in that it will allow the applicant to improve the feasibility of the project, which is currently approved for a limited time frame. The existing use is not otherwise easily accessible to residents of western Chuia Vista, and makes available a place where they can purchase needed personal, household and business items. . B. That sueh use will not under the cin:mnstances of the particular case, be detrimental to the health, safety or genend welfare of persons œsiding or working in the vicinity or ùQurious to property or improvements in the vicinity. The current operations have uot generated complaints, and the additional day of operations will create no significant additional impacts beyond the existing operations. The existing time limitatiou on operations ensures that any impacts created by the operations will be evaluated in a timely mauner prior to any extension beyond the original 18 month period of approval. This Project is conditioued such that all conditions of approval for the original operations shall be met prior to commencement of the additional day of operations. C. That the proposed use will comply with the regulations and conditions specified in the code for such use. Special Use Permit SUPS-96-08(M) is conditioned to require the Applicants owner to fulfill couditions and to comply with all the applicable regulatious and standards specified in the Municipal Code for such use. The conditioning of SUPS-96-08(M) is approximately proportional both in uature and extent to the impact created by the proposed development in that the conditions imposed are directly related to aud are of a nature and scope related to the size and impact of the project. D, That the granting of this conditional use pennit will not adversely affect the genend plan of the City or the adopted plan of any government agency. The grauting of SUPS-96-08(M) for the specified limited period will not adversely affect the Chuia Vista General Plan in that said Project is proposed to be operated on a site already partially developed, coutaining public facilities (water, sewer, etc.), said .:r -t- - . Resolution Page 3 proposed open air market conforming with the General Plan in that this Special Use Permit has been properly executed and duly adopted. IV. GRANT OF PERMIT The Redevelopment Agency hereby conditionaDy grants the Special Use Permit modification, subject to the foDowing conditions, whereby the Applicant shaD: 1. Operate the Project as submitted to and approved by the Agency, except as modified hereiu and/or as required by the Municipal Code, and as detailed in the project description. 2. Comply with all conditions of the original project approval and abate all violations to the Municipal Code within 30 days from Agency approval of this resolutions. 3. Pave the parking area to a Temporary Use Standard in phases as foDows: One- third of the prking area shall be paved within a 60-day period from the approval of this resolution; the second and third phases will be done at city staff's determination that demand for parking has increased and that an additional portion needs to be paved, actual paving shall be completed 60 days from written notification to the applicaut. 4. The open air market is authorized, under the original resolution of approval, to occupy the site from the hours between 5:00 a.m. aud 5:00 p.m. Fridays, Saturdays and Sundays. This approval is expanded to include Wednesdays, under the same hours of operation. Iu every instance all structures, equipment and activities associated with the open air market other thau approved permanent storage facilities or fencing shaD be cleared from the site by 5:00 p.m. 5. Comply with all City ordinances, standards, and policies except as otherwise provided in this Resolution. Any violation of City ordinances, standards, and policies, or of any condition of approval of this Special Use Permit, or of any provision of the Municipal Code, as determined hy the Director of Planning, shall be grounds for revocation or modification ofthis Special Use Permit by the City of Chula Vista. 6. Execute the attached Agreement indicating that you have read, understood and agreed to the conditions of approval contained herein, and will implement same. 7. This permit shall be subject to any and aD new, modified or deleted conditions imposed after approval of this permit to advance a legitimate governmental interest related to health, safety or welfare which the City shall impose after advance written uotice to the Permittee aud after the City has given to the Permittee the right to be heard with regard thereto. However, the City, in exercising this reserved right/coudition, may not impose a substantial expeuse or deprive Permittee of a substantial revenue source which the Permittee can not, in the normal operation of the use permitted, be expected to economically recoyer. 5'-7 - . Resolution Page 4 8. Pay all costs associated with implementing any of the above conditions of approval. 9. Operate this Special Use Permit modification for the remaining time authorized for the original swap meet operations under Resolution 1523., after which time the approval for both the original Special Use Permit and this modification expIres. 10. Any change to the operational profile or any request for the extension or expansion of the use shall require approval of a separate modification by the Redevelopment Agency of this Special Use Permit and/or the Mitigated Negative Declaration issued for IS-97-03, and may result in additional conditions of approval and/or mitigation measures. 11. Applicaut/operator shall and does hereby agree to indemnify, protect, defeud and hold harmless City, the Redevelopment Agency members, the City Council members, officers, employees, agents and representatives, from and against any and all liabilities, losses, damages, demands, claims and costs, including court costs and attorneys' fees (collectiyely, "liabilities") incurred by the City arising, directly or indirectly, from (a) Ageucy's approval aud issuauce of this Special Use Permit, (b) Agency's or City's approval or issuance of any other permit or action, whether discretiouary or non-discretionary, in connection with the use coutemplated herein, and (c) Applicant's installation and operation ofthe facility permitted hereby. Applicant's/operator's compliance with this provision is an express coudition of this Couditional Use Permit and this provision shall be biuding on any and all of Applicant's/operator's successors and assigns. V. INVALIDITY; AUTOMATIC REVOCATION It is the intention of the City Council that its adoption of this Resolution is dependent upon the enforceability of each and every term, provision and condition herein stated; and that in the event that anyone or more terms, provisions or couditions are detenuined by a Conrt of competeut jnrisdiction to be invalid, illegal or unenforceable, this resolution and the permit shall be deemed to be automatically revoked and of no further force and effect ab initio. THIS RESOLUTION OF APPROVAL IS HEREBY PASSED AND APPROVED BY THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA, THIS 5fH DAY OF AUGUST 1997. Presented by Approved as to form by Ú/'- ~- ~ John M. Kaheny Agency Attorney S-f - . AGREEMENT BY AND BETWEEN THE REDEVEWPMENT AGENCY OF THE CITY OF CHULA VISTA AND THE OPERATORS OF THE CHULA VISTA MARKETPLACE AND THE PROPERTY OWNER OF 690 "L" STREET RELATED TO THE CONDmONAL APPROVAL OF SUPS-96-418(M) The property owner and the Applicant shall execute this document by signing the lines provided below, said execution indicating that the property owner and Applicants have each read, understood and agreed to the conditions contained in Resolution No. , and will implement same to the satisfaction of the City. Upon execution, this document and a copy of Resolution No. shall be recorded with the County Clerk of the County of San Diego, at the sole expense of the property owner and/or applicant, and a signed, stamped copy returned to the City Clerk. Failure to return a signed and stamped copy of this recorded document within thirty days of recordation to the Planning Department shall indicate the property owner/applicant's desire that the project, and the corresponding application for building pennits and/or a business license, be held in abeyance without approval. Signature of Property Owner Date 690 "L" Street Signature of Representative of Date Chuia Vista Marketplace $,,1 - - .,--- --- - I \ CHULA VISTA PLANNING DEPARTMENT LOCATOR PROJEcr South Ba~ PROJEcr DESCRlf'T10N, C) APFUCANf, Markel Pace INITIAL STUDY PROJEcr 690 'L' Street Request: Proposal for an fP.en air market place J.j)DRESs, , .!r-IO (swap me..!) for the sale 0 new and used Items. SCAlf, I ALE NUMBER, NORTH No Scale IS-97-03 Related case: SUPS-96-0B /1 - (- I - - ATTACHMENT 2 Planning Commission Minutes - 6 - July 23, 1997 Public Hearing Opened. Matt Peterson, 530 B Street, #2300, San Diego, CA, Law Firm of Peterson Price, representing CMI stated they were retained a few day earlier to review the Mitigated Negative Declaration, and they are in concurrence with staff's recommendation to open the public hearing, take testimony, and continue this item to the next Planning Commission meeting. As previously mentioned by staff, there are a few items of concern they would like to address; they are: . to avoid an added expense to the operation, applicant is proposing to implement the weekly on-site monitoring for a period not to exceed two (2) months, rather than for the full two years as staff is recommending. If after two months, all is well and there are no complaints, applicant is proposing to discontinue the monitoring until such time that it is needed or directed by staff; and . applicant is proposing to change the wording in a statement that reads, "applicant shall obtain and provide a stormwater pollution run-off control plan and NPDES permit." Mr. Peterson indicated that since applicant is not aware, at this time, of what would trigger those requirements, applicant is proposing to modify the statement to read, "... if required, the applicant shall obtain the necessary permits." Lynne Heidel, 401 B Street, San Diego, CA, representing H.G. Fenton Material Company stated that they have been working with staff, and anticipate resolving all of the issues and "mitigation measures. Dante Vizcaya, 150 Jaguar St and Faivre, Chula Vista, CA, representing Pacific Bay Auto Center and T & T Auto Repair stated that he was seeking information on the type of use the operation will be conducting and the length of time the permit will be in effect. Public Hearing continued to August 13, 1997 4. PUBLIC HEARING: Special Use Permit SUPS-96-08(M); Request for additional day of operations (Wednesday) for existing swap meet operating Friday - Sunday at 690 L Street, within the I-L and I-L-P zones - Victor Joseph, Background: Acting Associate Planner Nevins reported that the proposal under SUPS-96-08(M) is for the addition of a day of operation to be added to the existing swap meet operating schedule. The swap meet has been conducting business now for approximately 5 months, and is currently opened to the public Friday thru Sunday from 7:00 a.m. to 3:00 p.m. with additional hours allowed for set-up and closing. The applicant is now proposing to conduct business on Wednesdays, with the same hours of operation. Ms. Nevins further stated that although the existing operation has not been in operation for a significant length of time to be able to conduct a comprehensive impact analysis on the surrounding area, the City has received no complaints from neighbors. Therefore, it is staff's observation that the one additional day would have no significant impacts. Notwithstanding that opinion, Ms. Nevins pointed out that there were a number of items that were in violation 5-11 - Planning Commission Minutes - 7 - July 23,1997 with the conditions of approval of the Redevelopment Agency Resolution No. 1523, which was approved on December 10, 1996. These violations were outl ined in a letter from Ken Lee, Assistant Director of Planning, to the applicant dated July 9, 1997. Subsequent to sending the letter, staff met with the applicant to discuss the list. The applicant has indicated that most of the sign violations are abated, that the landscaping and building permit issues can be brought into compliance expediently, and that the only item of concern is that of meeting the paving requirements prior to opening on Wednesdays. Ken Lee, Assistant Director of Planning, clarified that the paving requirement of the parking lot is what is called a OnE~"year temporary hard surface, consisting of decomposed granite and an oil base, not the normal asphalt paving that occurs on a permanent facility. Mr. Lee further stated that there have been discussions with the applicant about potentially phasing the paving of the parking lot because at this time, the swap meet is not generating the traffic and parking demands that would warrant paving the entire parking lot. Staff recommendation: That the Planning Commission adopt Resolution SUPS-96-08(M) recommending that the Redevelopment Agency approve the project subject to compliance with the original conditions of approval. Commission discussion: . Commissioner Aguilar inquired how staff would verify that the applicant has complied with all of the conditions of approval. Mr. Lee responded that the applicant or his representative would notify staff when they were in full compliance and then staff would conduct a site visit to confirm it. . Commissioner Willett stated he supports staff's proposal to phase the paving of the parking lot and commented on some of the non-compliance issues addressed in the letter to Mr. Joseph; specifically, the landscape requirements; securing a business license; refuse disposal; and security issues. . Commissioner Ray expressed concern on the applicant not having a business license. Mr. Lee stated that Mr. Joseph's representative was given back the plans that were previously submitted, which contained comments made by staff. The applicant was suppose to respond to those comments and go back to the Building and Housing Department and secure the permit, but he never did. The business license will be issued as soon as the documents are completed. Some of staff's comments included clarifying landscaping that was required in front of the vendor area, and not in front of the parking area as is required in other types of permanent businesses. In addition, supplementing some of the landscaping materials, to staff's satisfaction, could also be allowed. Mr. Lee further stated that it was the Police Department that raised the issue of security requirements. Originally, the applicant had indicated that there would be ten security personnel on site. $"- I 2- - - - .. Planning Commission Minutes - 8 - July 23,1997 . Chair Davis inquired if the same sign requirements are being applied to the downtown farmers market. Mr. Lee indicated that the farmers market is a unique one-day-a-week project that was authorized in an effort to entice people to come to the downtown area to boost businesses in that area. He also pointed out that the Agency authorized signs within the public right-of-way. . Commissioner Thomas inquired how is it possible for a business that does not have a business license, issue business licenses to its vendors. Ms. Nevins indicated that it is her understanding that the Finance Department issued business licenses directly to the vendors, however, for clarifications, suggested simply asking the applicant during the Public Hearing how that is being handled. Public Hearing opened at 8:00 p.m. . Victor Joseph, 166 K Street, Chula Vista, CA, applicant addressed the Commission and stated that he has a viable business with adequate landscaping, flushable toilets, gravel surface, and plenty of security. Mr. Joseph further stated that with the exception of the paving of the parking lot requirement, he did not understand why he is in violation. Mr. Joseph indicated that when a vendor pays the fee to operate in the swap meet, he then brings it to the Finance Department and they issue a business license. Applicant further stated that he is requesting 90 days to comply with the parking lot requirement. . Rod Davis, 233 4th Avenue, Chula Vista, CA representing Chamber of Commerce stated his frustrations in what he perceives as being excessive requirements placed upon applicants attempting to establish business in the City of Chula Vista, and what appears to be selective enforcement and/or citing on businesses that are in some kind of violation. Mr. Davis recommended that some type of procedure be implemented whereby when a complaints is logged, that there be some type of public notice made available. He further recommended giving our City inspectors citation authority to write tickets. . Alma Romero, 881 Oaklawn Avenue, Chula Vista, CA 91911, stated that she sells oranges at this swap meet and her signs a set up on Friday, Saturday and Sunday at approximately 7:00 a.m., and they come down everyday after the swap meet closes. Ms. Romero informed that Commission that she has received nothing but positive feedback from the area residents, which is why there are no people at this meeting opposing this project. .:r -/3 - . Planning Commission Minutes - 9 - July 23, 1997 Ms. Romero further stated that she has personally witnessed the different types of uses this property has had because she has lived across the street from the swap meet for the last twenty years. She indicated that this is the first time that something positive and beneficial to the city has been placed at this location and wholeheartedly supports the swap meet. Public Hearing Closed at 8:15 Vice Chair Willett will abstain from voting due to a conflict of interest because the applicant's consultant is related to him. MSC (Aguilar/Thomas) (Tarantino excused; Willett abstaining) that applicant's request for an additional day of operation be granted upon verification by the City that the applicant is in compliance with all of the conditions, with the exception of the paving of the parking lot. In addition, applicant shall then be granted 90 days to pave 50% of the parking lot. Commissioner Ray recommended changing the motion to granting a temporary approval contingent upon full compliance within 60 days with the original conditions of approval, and granting the applicant 60 days to pave 1/3 of the parking area. Commissioner Thomas stated he was willing to grant the applicant the extra day of operation to allow him to become solvent, granting him 60 days to be in full compliance and 60 days to 'pave 1/3 of the parking lot. Commissioner Aguilar stated that she would be willing to amend her motion to granting the applicant 60 days to pave 1/3 of the parking lot. Commissioner O'Neill stated that he was willing to grant the applicant 30 days to be in full compliance, have permits in hand, and 60 days to pave 1/3 of parking lot. Applicant could then be granted the extra day of operation on the first Wednesday after he has secured building permits. Amendment to motion: (Aguilar/Thomas) that applicant's request for an additional day of operation be granted upon verification by the City that the applicant is in compliance with all of the conditions, with the exception of the paving of the parking lot. In addition, the applicant shall then be granted 60 days to Dave 1/3 of the parking lot Amendment to motion: (Aguilar/Thomas) that verification of compliance with all of the conditions shall occur prior to this item going before the Redevelopment Agency meeting on August 5,1997 and that 1/3 of the parking lot shall be paved within 60 days. Amendment to motion: (Aguilar/Thomas) that City shall verify that applicant has submitted the necessary paperwork to put into motion compliance with all of the conditions prior to this item going before the Redevelopment Agency on August 5, that 1/3 of the parking lot shall be paved within 60 days, and that City shall verify at the end of 60 days that he is in compliance. VOTE ON MOTION: Motion carried 5-0-1-1 (Tarantino excused; Willett abstained). ~-IV - . Planning Commission Minutes -10 - July 23,1997 Amendment to motion: (Aguilar/Thomas) that City shall verify that applicant has submitted the necessary paperwork to put into motion compliance with all of the conditions prior to this item going before the Redevelopment Agency on August 5, that 1/3 of the parking lot shall be paved within 60 days, and that City shall verify at the end of 60 days that he is in compliance. VOTE ON MOTION: Motion carried 5-0-1-1 (Tarantino excused; Willett abstained). MSC (O'NeililThomas) 5-0-1-1 (Tarantino excused; Willett abstaining) that staff monitor the increase in business, and that at staff's discretion, upon written notification, the applicant be required to, within 60 days, pave the parking lot by increments of 1/3 when the parking needs exceed the 1/3 area. 5. UPDATE ON COUNCil ITEMS Assistant Planning Director Lee reported that the City Council: concurred with the Planning Commission's recommendation to rename East Orange Avenue to Olympic Parkway between 1-805 and Wueste Road. passed the amendment to the Municipal Code to change the definitions of small and large family day care homes and family day care, and accepted report on Otay Ranch Spa One Planned Community District regulations on "Hollywood" driveways. This was a response to the request that was made by McMillin. There is a new request from Village Development asking for a similar consideration, and report is forthcoming. DIRECTOR'S COMMENTS Mr. Lee reported that Bob Leiter, Planning Director, announced his resignation from employment with the City of Chula Vista, and has accepted a position with the City of San Rafael, and will be leaving the August 8. In the meantime, Mr. Lee has accepted to fill in as Acting Planning Director until such time that the position is filled on a permanent basis. Duane Banel, Principal Planner, will be Acting Assistant Director. In addition, Mr. Lee stated that on August 7, between 3:00 and 5:00 in Conference Room 2&3 there will be a reception for Bob, with cake and refreshments. Flyers will be mailed out to the Commission, City Council, and others who have worked with Bob, inviting them to say farewell to him COMMISSIONER COMMENTS Vice Chair Willett commended staff for their work on the swap meet, and CMI project. In addition, Vice Chair Willett congratulated Mr. Lee for his appointment as Acting Planning Director. S" -/~- - . Planning Commission Minutes -11- July 23,1997 ADJOURNMENT at 9:20 to the next regular Planning Commission meeting of August 13, 1997 at 7:00 p.m. in the Council Chambers. Diana Vargas, Secretary Planning Commission H .IH OM ElPLA N N r NGIOIA NA 107.23.97 ,M I N :$ -Ifø - . A TT ACHMENT 3 'L' STREET SWAP MEET OUTSTANDING CONDITIONS CONDITION OF APPROVAL EXPLANATION OF ACTION VIOLATION REQUIRED/STATUS AS OF 7/25/97 1. Operate the Project as submitted to and The Planning Department approved two banner Applicant has complied with this condition by approved by the Agency, except as modified signs (4' X 8'1 announcing the swap meet. removing all illegal signs and clothing hanging herein and/or as required by the Municipal Numerous, miscellaneous signs appear on and on the chain link fence. Code. and as detailed in the project adjacent to the swap meet. for example, hot description. dog sales, a sign for a restaurant unrelated to the swap meet. signs attached to telephone poles on "L" Street for various items for sale. In addition. clothing has been hung on the western fence and used cars sold from the swap meet. All unauthorized signs and items should be removed immediately. 2. Install a ten (10) foot landscaped buffer Landscaping buffer plan for "L" Street frontage Applicant will provide the necessary material along "L" Street the entire length of the did not receive final approval from Planning. for approval of the City's Landscape Planner vendor's lot. to the satisfaction of the Comments were returned to the Applicant via and will install landscaping as approved. Director of Planning. Building & Housing in January of 1997 but no response from the Applicant has been forth. coming. This issue can be resolved to the City's satisfaction with the addition of plants. subject to the Landscape Planner's approval. 3. Submit a iandscape plan to the Director of As part of Applicant's submittal for building Same as item 2. Planning prior to occupancy of the site and permits, a landscape plan was routed to staff install approved landscaping prior to opening who reviewed it & made comments. Plan was for business. In the event the Project's returned to Applicant but never finialed. See landscaping is not installed within thirty (3D) above for resolution. days after opening for operations, this Special Use Permit is subject to revocation. 5. Pave all parking areas to a "Temporary Use" The customer parking areas should already have Paving of the parking area shall be done in standard (maximum of one year) consisting been improved to comply with the City's phases as follows: one.third of the parking of two (2) inches of compacted decomposed "Temporary Use" parking standard. To date. area to be paved within 60 days from Agency granite. the top one inch of which has been the required improvements have not been made approval of modification; the second and third treated with SC.250 asphalt road oil to form to the customer parking area. phases will be done at city staff's a water.resistant and dust free wearing determination that demand for parking has surface. Penetrants shall be applied at such increased and that an additional portion needs rates or a sufficient number of times to to be paved. actual paving shall be completed produce the specified wearing surface. A 60 days from written notification to the weed killer shall be applied tin accord with applicant. the manufacturers instructions to the entire area to be paved. 5-1? - . ATTACHMENT 3 'L' STREET SWAP MEET OUTSTANDING CONDITIONS CONDITION OF APPROVAL EXPLANATION OF ACTION VIOLATION REQUIRED/STATUS AS OF 7/25/97 7. Prior to obtaining a business license from Business licenses are being issued to individual As soon as applicant complies with the rest of the City of Chula Vista for operating an tenants, but because Applicant has not complied conditions listed here, the City will issue a open air market. cooperate with the with conditions of approval, a business license business license. Business license Officer in order to develop has not been issued for the swap meet. and implement a tax collection/business license issuance plan for all vendors. to the satisfaction of the Director of Finance. 9. To the satisfaction of the Conservation Coordinator: a. Ensure a litter abatement, recycling and Applicant has not contacted the Conservation Applicant has contacted the Conservation trash disposal program that will eliminate Coordinator to set up the required program. Coordinator and will submit the required any litter from leaving the facility and program for approval. meet or exceed the 50% source reduction, reuse and recycling diversion goals mandated by the State of California. b. Provide an annual report of the solid Applicant has not contacted the Conservation Same as above. waste management plan each January Coordinator to prepare for the annual report. for the previous calendar year. 11. Prior to opening for operations, schedule a The Police Department has stated that the Applicant has contacted the Crime Prevention security survey with the Chula Vista Police Applicant has not scheduled a security survey Unit for a security survey at the site and has Department. Crime Prevention Unit. and with the Crime Prevention Section of the Police indicated he will implement the recommended implement the suggestions of said survey Department and therefore has not implemented actions. in order to enhance security. any possible recommendations. Notwithstanding the implementation of the security survey, in the event crime and/or security becomes a problem. as indicated by increased crime reports filed with the Chula Vista Police Department related to the open air market, Applicant shall retain, at Applicant's expense, a company who shall prepare a crime reduction/security provision report for the operation of the open air market, to the satisfaction of the Chief of Police. Said report shall address issues specified by the Chief of Police, and shall include recommendations to enhance security and reduce crime. Said recommendations shall be implemented to the satisfaction of the Zoning Administrator and the Chief of Police. S-/f - . A TT ACHMENT 3 'L' STREET SWAP MEET OUTSTANDING CONDITIONS CONDITION OF APPROVAL EXPLANATION OF ACTION VIOLATION REQUIRED/STATUS AS OF 7/25/97 14. Comply with and implement all Applicant has submitted for but not obtained a Applicant met with the B & H Plan Examiner requirements of the Director of the building permit for buildings on swap meet site. to determine what he needs to do to obtain Building and Housing Department as landscape plan was part of this application. building permits on the two buildings at the related to conforming with the Uniform Comments were made but no response to date. site. He will submit revised plans for approval. Building Code. See attached "Plan Check Correction list" from the Building & Housing Department. To date, no response has been submitted. 15. Comply with and implement all provisions No clearance as of 5129197. See attached Same as above. related to Title 24 (Part III, Disabled "Plan Check Correction list" from the Access, to the satisfaction of the Director Building & Housing Department. To date, no of Building and Housing. response has been submitted. 17. Comply with all City ordinances, .Various illegal signs posted on days of operation Compliance with the above items will fulfill standards. and policies except as and on days of no operation. this condition. otherwise provided in this Resolution. Any .Clothing hung on westerly property linellence. violation of City ordinances. standards. and .Applicant has been selling used autos as part of policies, or of any condition of approval of swap meet operations without benefit of a use this Special Use Permit. or of any permit. provision of the Municipal Code, as ,Parking lot has not been improved as required. determined by the Director of Planning, ,landscape plan has not been finalized. shall be grounds for revocation or .Building Permit has not been finalized. modification of this Special Use Permit by the City of Chula Vista. H.IHOMEI"MMO""AP""OSE'H',lTR ~- -/1 - .