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HomeMy WebLinkAboutRDA Packet 1996/10/01 "I declare under penalty of perjury that I am employed by tl,e City of Chuia Vista in the Community Development DeJar~mont and that I postf this Agenda/Notice on the !J:l:I:~;~ Board at the Public ~8U; d¡nE ~J at City Hall on Tuesday, October I, 1996 DATE: SIGNED ~ ~ " Council Chambers 4:00 p.m. tl Public Services Building (immediately following the City Council meeting) REVISED Regular Meeting of the Redevelopment Agencv of the Citv of Chula Vista CALL TO ORDER 1. ROLL CALL: Agency Members Alevy -' Moot -' Padilla -' Rindone -' and Chair Honon - 2. APPROVAL OF MINUTES: None submitted CONSENT CALENDAR (NONE ) PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES The following items have been advertised and/or posted as public hearings as required by law. ¡fyou wish to speak to any item, please fill out the "Request to Speak Form" available in the lobby and submit it to the Secretary of the Redevelopment Agency orthe City Clerk prior to the meeting. (Complete the green form to speak infavorofthe staffrecommendation; complete the pinkform to speak in opposition to the staffrecommendation.) Comments are limited to five minutes per individual. 3. PUBLIC HEARING: AMENDING THE SPECIAL LAND USE PERMIT FOR THE EST ABLISHMENT OF THE MATERIALS RECOVERY FACILITY/TRASH TRANSFER STATION AT 1855 MAXWELL ROAD DATED MARCH 19,1996, TO EXTEND THE PERMIT--ln order to meet current market conditions, John Sexton Sand & Gravel has proposed to phase construction of their proposed trash transfer facility now, and expand in the future as the volume of trash processed at the facility increases. Sexton has submitted phasing plans to City staff and the Design Review Committee. Sexton has also requested extension of their Special Land Use Permit for development of the project to be coterminous with the Owner Participation Agreement. Staff recommends approving an extension of the Special Land Use Permit to March 17, 1998. (Community Development Director) Item continued from the meetim! of 9/17/96. AGENCY RESOLUTION 1515 AMENDING THE SPECIAL LAND USE PERMIT FOR THE ESTABLISHMENT OF A MATERIALS RECOVERY FACILITY/TRASH TRANSFER STATION AT 1855 MAXWELL ROAD, DATED MARCH 19,1996, TO EXTEND THE PERMIT TO MARCH 17, 1998 - . Agenda -2- October I, 1996 4. PUBLIC HEARING TO CONSIDER ADOPTION OF THE 1996-97 REDEVELOPMENT AGENCY BUDGET AND APPROPRIATING FUNDS THEREFOR--The Redevelopment Agency budget was approved by the City Council as part of the City budget process, but still requires the formal adoption by the Agency Board. Staff recommends approval of the resolution adopting the FY 1996-97 Redevelopment Agency budget. f4/5ths Vote Requiredl (Community Development Director) Item continued from the meetina of 9/17/96. AGENCY RESOLUTION 1519 ADOPTING THE REDEVELOPMENT AGENCY BUDGET FOR FISCAL YEAR 1996-97 AND APPROPRIATING FUNDS THEREFOR ORAL COMMUNICATIONS This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the Redevelopment Agency from taking action on any issues not included on the posted agenda.) If you wish to address the Council on such a subject, please complete the yellow "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. Your time is limited to three minutes per speaker. ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the Agency, staff, or members of the general public. The items will be considered individually by the Agency and staff recommendations may in certain cases be presented in the alternative. Those who wish to speak, please fill out a "Request to Speak" form available in the lobby and submit it to the Secretary to the Redevelopment Agency or the City Clerk prior to the meeting. Public comments are limited to five minutes. 5. REPORT REVIEW OF SEMI EXCLUSIVE NEGOTIATING AGREEMENT WITH E STREET TROLLEY SQUARE, LLC FOR THE DEVELOPMENT OF A SHOPPINGIENTERTAINMENT CENTER BETWEEN E AND F STREETS WEST OF WOODLAWN AVENUE, AND ISSUING INSTRUCTIONS TO NEGOTIA TORSb The proposed shopping and entenainment center site incorporates the City's Public Services Yard and reconfigures the E Street Trolley Station. Staff recommends the Redevelopment Agency defer funher negotiations on this project until more information is available concerning the status of the Public Works Yard and development of the Bayfront. (Community Development Director) Item continued from meetina of 9/17/96. .- - Agenda -3- October I, 1996 OTHER BUSINESS 6. DIRECTOR'S/CITY MANAGER'S REPORT(S) 7. CHAIR'SIMAYOR'S REPORTCS) 8. AGENCY/COUNCIL MEMBER COMMENTS ADJOURNMENT The meeting will adjourn to the Regular Redevelopment Agency Meeting on October 15, 1996 at 6:00 p.m., immediately following the City Council meeting, in the City Council Chambers. [M: \HOMEICOMMDEVIAGENDASII O-Q1-96.AGD] - . REDEVELOPMENT AGENCY AGENDA STATEMENT Item 3 Meeting Date 10/01/96 ITEM TiTlE: PUBLIC HEARING: Amending the Special land Use Permit for the Establishment of the Materials Recovery Facility/Trash Transfer Station at 1855 Maxwell Road Dated March 19, 1996, to Extend the Permit Resolution 1515 Amending the Special land Use Permit for the Establishment of a Materials Recovery Facility/Trash Transfer Station at 1855 Maxwell Road, Dated March 19, 1996, to Extend the Permit to March 17, 1998 SUBMITTED BY: Community Development D~ t.t+~ t.S REVIEWED BY: Executive DirectoJ,Ct ~ /'2 (4/5ths Vote: Yes- No_X..! BACKGROUND: The Agency approved a Special Land Use Permit (SUP) and Owner Participation Agreement (OPA) for the development of a materials recovery/trash transfer facility on a ten acre site located at 1855 Maxwell Road on March 19, 1996. The Developer, John Sexton Sand and Gravel Corporation (Sexton) has rethought the economics of the project and determined that the project should be phased in order to meet current market conditions. Sexton proposes to build approximately half of the project now, and expand it in the future as the volume of trash processed at the facility increases. Sexton has submitted phasing plans to City staff and the Design Review Committee. At their meeting of September 17, the Agency approved an amendment to the OPA with Sexton to incorporate the phasing plans and additional conditions as recommended by the Design Review Committee. The Agency also approved an extension of the OPA to March 17, 1998 due to the additional time needed to redesign and obtain permits for the project. The Agency is now requested to hold a public hearing to consider extension of the Special land Use Permit to coincide with the OPA. RECOMMENDATION: That the Agency adopt the resolution approving an extension of the Special Land Use Permit to March 17, 1998. BOARDS/COMMISSIONS RECOMMENDATION: The Design Review Committee (DRC) reviewed the original project in January, February and March of this year and recommended approval at their meeting of March 11, 1996. The DRC reviewed the phasing plans for the project at their meeting of August 26, 1996 and recommended that the Agency approve the plans subject to the following conditions: 1. This proposal, as submitted, shall be subject to all of the conditions imposed upon the project as part of Special Use Permit SUPO-96-01. 2. This proposal, as submitted, shall be subject to all conditions imposed upon the project submitted as DRC-96-20 and conditionally approved on March 11, 1996. 3. All areas for future expansion which are shown in the Phase 1 proposal as "hydroseeded turf" shall be irrigated with a sprinkler system acceptable to the City Landscape Planner. ~ - ( - . Page 2. Item ~ Meeting Date 10/01/96 4. A landscape maintenance letter, as called for in the City of Chula Vista landscape Manual, covering all areas shown as "hydroseeded turf", shall be submitted to the City landscape Planner at the building permit submittal stage. 5. The north elevation shall be articulated similar to the north elevation originally submitted. The proposal will be approved at staff level. The Otay Valley Road Project Area Committee considered the SUP but did not take action due to potential conflicts of interest with several members. The Project Area Committee was advised that the project amendment was going to be presented to the DRC and Agency. DISCUSSION: Plans for the trash transfer facility were first submitted to the City for review in November, 1995. The project entailed a large, utilitarian building within which trash would be separated and processed. Following substantial revision of the plans at the urging of City staff, the plans were submitted to the DRC in January and resubmitted in February and March 1996. During that time, the DRC, staff and the applicant worked intensively to arrive at a satisfactory design solution for the project. The project was originally designed to process up to 1,850 tons of trash per day. However, an analysis of potential supply in the area has forced the developer to rethink the project. Sexton is now proposing to build out just over half of the original project which will be able to process up to 1,000 tons of trash per day. Final buildout is not anticipated until market conditions warrant expansion. Since the phasing plan modified the plans approved as part of the OPA and added conditions, the Agency amended the OPA to include the phasing plans and conditions on September 17, 1996. The Agency extended the CPA to March 17, 1998 (it would have expired in May 1997), because of the delay caused by redesigning the project and the additional time needed to obtain local and State permits. This provides the developer 18 months from the date of approval of the amendment to obtain permits and begin construction. In addition, the developer has requested that the SUP for the trash transfer facility, approved on March 19, 1996 for an effective period of one year, be extended to coincide with the effective date of the CPA, as amended. FISCAL IMPACT: The originally facility, including machinery, was estimated to have a value of $10 million which would have generated $100,000 in tax increments to the Agency in the first year following completion. In addition, the facility was to provide 59 jobs with possible expansion to 100. The proposed scaled down project will be valued at $7 million and provide the Agency with $70,000 in tax increment revenues. Number of jobs at the reduced facility are estimated at 30-40. (FK) M,IHOMElCOMMDEVISTAFFlD9-01-96ISEXTLUP.113 [S"tomb" 19.1996 (mD2om)1 ..3-,;}.... NOTICE OF PUBLIC HEARING AMENDING A SPECIAL lAND USE PERMIT FOR THE ESTABLISHMENT OF A MATERIALS RECOVERY FACILITYITRASH TRANSFER SITE NOTICE IS HEREBY GIVEN that the City of Chula Vista Redevelopment Agency will hold a public hearing to consider amending a Special land Use Permit for the establishment of a materials recovery facility/trash transfer station at 1855 Maxwell Road within the Otay Valley Redevelopment Project Area dated March 19, 1996, to extend the permit. Anyone desiring to review the amended OPA may review a copy at the Chula Vista Community Development Department, 263 Fig Avenue, Chula Vista. All written comments should be forwarded to the Redevelopment Coordinator, Community Development Department, City of Chula'Vista, 276 Fourth Avenue, Chula Vista, CA 91910 ([619] 691-5047). If you wish to challenge the City's action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Community Development Department at, or prior to, the public hearing. SAID PUBLIC HEARING Will BE HELD on October 1, 1996, at 4:00 p.m. (immediately following the City Council meeting) in the Council Chambers, 276 Fourth Avenue, Chula Vista, CA 91910. At this time, any person may appear to be heard. Date: September 23, 1996 M : Ihome leommdevlkassma n Imisel tr ashph. not .3-3 . f~ nn,~..~~~"", , .,' '. ~ ~. (t / .~..~" , ¡¡.; '~~;", . '. 619-323-7867 (SUNS) /-". "oF 1901 E. Barlsto Rd.. FAX 619-323-86.49 MINUR J!EAlm~: ØAS~øAU, r' "'"' '- Palm Springs. CA 92262 Members of the Western Baseball League \--U""""'frffi": ""., I . P""'" September 12, 1996 IJtP~ " ,,' ~ Mr. Kevin Towers, General Manager SEP 1 6 1996 \ San Diego Padres I P. O. Box 2000 ! San Diego, California 92112 --------.. -" Dear Kevin: The Suns are seriously considering a move to Chula Vista after weeks of very positive discussions with ci1;y officials. We will have a stadium built for us on one of two sites in Chula Vista, with a temporary location on the same site. Jimmy Lee Soloman from the Commissioner's office reiterated that we do not need approval to move since our league is not a member of the National Association, and that we should deal directly with the Padres on public relations pertaining to the two teams coexistence. It is our intention to be proactive with the Commissioner's office and the Padres to promote baseball in San Deigo. Our decision is primarily based on the wide range of opportunities close to the border for the franchise to offer baseball to lower to middle income families, many of whom are not in a position to consider Major league baseball an option for their entire family. We have been assured by the Western league office that, upon receipt of the Padres 1997 schedule, our home games will be carefully planned around the Padres home schedule. Our intent is not to threaten, but to enhance, awareness and love for the sport. We believe that there is something almost magical about the way baseball can take us out of ourselves for a time and separate us from our worries and cares. This philosophy can only benefit all of baseball. We provide the introduction to the sport and build fans through our "family entertainment" approach both on and off the field. Independent minor league baseball appeals to a different market, a market that must be groomed to take the ne>ct: step up. We share the philosophy with many young, successful athletes who are motivated by a desire to be the best they can be rather than simply better than anyone else. We view the competitor not as an adversary or an enemy to be defeated at all costs, but as a partner sharing a goal, a catalyst that prompts both of them to do their very best. The Suns will bring many positives to the South Bay area that will enhance the growth of professional baseball in the area. Freedom of movement between Mexico and the u.s. presents a wonderful opportuni1;y for many to enjoy baseball who may otherwise be eJ(Cluded. We believe that the opportuni1;y to enjoy professional sports should be shared by everyone. Our intent is to form a cooperative relationship that would be based on the following: I. Cultivate fans A. Many fans have turned to independent baseball to keep their best memories alive. The Suns can help cultivate these fans, many of whom were affected by the Major league Baseball strike, to become open to Major league Baseball again through a cooperative marketing and public relations project. B. People who are not baseball fans many times will go to independent minor league games for the fun and entertainment. Many, especially the younger ones, become baseball fans. C. A non-competitive schedule would help satisfY baseball appetites while Padres are on - . - the road. The Suns will work with the WBl to develop their schedule around the Padres schedule. D. Mexican fans who can now ride the trolley to Chula Vista to enjoy baseball in 1997 will be able to ride the trolley extension in 1998 to Jack Murphy Stadium. The Suns are now forming an alliance with Cloud 9 Shuttle and San Diego Transit to shuttle fans from the Trolley stations to the games with the theme "Take the Trolley to the Ballgame". II. Cultivate players A. Several alumni of DiCarlo teams who have played in the major leagues include Ariel Prieto, Darnell Coles, Jeff Conine, Greg Colbrun, Troy Percival, Todd Burns, Mike Warren, John DeSilva, and Chuck Carr. Other notables include Euclides Rojas, Tom Benedickt, Rod Poissant, and Denny Schaeffer. B. Independent minor league baseball, from its rebirth in 1993 has, according to Howe Sports Data, placed well over 100 players in major league organizations. It can also serve as an opportunit;)' for recently released major leaguers to extend their careers and be resigned. A case in point is Darryl Strawberry who the Suns worked very hard to sign in 1996, and who eventually signed with the St Paul Saints, and then at mid-season with the Yankees. C. Suns have signed players with the A's, the Angels, Boston, Florida, and the Dodgers since their inception in 1994. D. With the talent available in the San Diego area the Suns could be very helpful in developing local talent that could eventually be signed by the Padres. E. The Suns have been involved for over a year in negotiations with the Pacific Coast Mexican Winter league to finally bring a team to the United States. This would allow the Padres to view the entire Mexican talent pool as its visiting teams come to Chula Vista. It would also allow a Winter location close to home to develop talent in the Winter league. We are interested in cooperating with the Padres in this area as well. III. Successful history of minor league teams close to major league teams: A. The Seattle Mariners have both Tacoma (AAA) and Everett (Short A). B. The Phillies have Scranton (AAA) and Redding (M) C. Boston has Pawtuckett (AAA) and lowell, Massachusetts (Short A). D. Many major league teams have one or more teams not affiliated with their organizations close to them, including the long Beach Riptide of the Western league and the St Paul Saints of the Northern League. Prejudice and discrimination are reversible because both come from fear. Our intent is to sidestep negatives and get down to being good neighbors and working together toward the betterment of the game and the organizations. It is our feeling that we know our craft, we communicate clearly, and we have open minds. I look forward to meeting with you soon to discuss our move to Chula Vista and other issues of interest. We intend to be proactive with the Commissioners office and the Padres. Sincerely, ~!tL-~ Don DiCarlo President cc: John Moores, Padres principal owner Larry lucchino, Padres President Priscilla Oppenheimer, Padres Director of Minor leagues John Goss, Chula Vista Cit;)' Manager Chris Salamone, Chula Vista Economic Development ~i nnn~ /::;"":FP. Scott Alevy, Chula Vista Cit;)' Council ~ìiGUià~Etit~(t~ David Baron, Attorney at Law Members ollhe Western Baseball League . - SEP-19-1996 13:22 PR..M SPR I I'œ Sl-"IS B- BALL 619 323 8649 P.02 ~N A"U....rs A T LA. ouw.- 1'100 T"GUm........ Wo<."'" A.I. P... s......" ","H.." "'" - 1019\ JU.¡n1 -, 111./101 111<""1,.-.01 1.)0M8("~ September 19, 1996 / I.8ftD 01' DIft!RIl' John D. Goss, C1CY Manager City of ChIlls Vista,.. . -""--0. -'"'..".,.'-- .-. 276 FourtÀ Avenue 'n '. 'F"""~ ",," .., r;,~, :' ë"", f'!; " Chllla Vista, California '91910 Pear Hr. GOBS: This letter Of intent sets forth the basic terms and conditions under which the 'Palm springs Suns wrl~ move 1ts Western Baseball League franchise to the City of Chula Vista. This letter confirœs some basic understandings between the parties and contemplates more formal negotiations, which will ultimately culminate in a forøal written agreement and, most l1kely, a DCA. . This letter will confirm that the Palm Springs Suns are willing to move their team from the Palm Springs area to Chula Vista provided 8 4,000-se.t stadium is built and ready for occupancy by the beginning of the 1998-99 season- It: ia under5tood that the cost of the facility will be approximately $3.~ Million and will have a capacity of 4,000 seate with sufficient parking to accommodate the tea~'a pat~o~s. The facility shall include certain specified impro~ent. and adhere to provided Specifications for a public address system, scoreboard, concession facilities and adherence to all ADA handicap ~9ulat10ns. The parties have tentatively aqreed on the possibility of two sites, one near Dtai Ranch, which facility is near the United States Olympic Training Facility and will be built in conjunction with. proposed 20,OOO-seat KCA amphitheater and aa~in~ Waters ooøplex. . The other aite.is identified .. the Port ~uthority 19CAtion. -,..-->.... " '..1 " - . SEP-19--1996 13:22 PFLM 5PRli'I>S 5lJE B-Bft.L 619 323 8649 P.B3 John D. Goss. City Manager City of Chula Vista September 19. 199ö Paq9 2 The P.l~ Springe Sun. haYe 'agreed and ~Lll ~.e Chute Vista in the name of ~e team. Tbe team will aiqn a long-te:m 1ea89 in the new facility provided it ie built to our speçificationa as generally referenced above. The team will use ita beat efforts to becoIIIe 1nvQlved in bringirig'tlieo'first Amedcan fnnchhe of the Mexican Leaque to the United States in the City Qf Chula Vi8C4 for winter league play. The team would also b. prepared to give the City. for at leaat the first year of operation. 50 tickets per q~ for marketing and promotional purposes fQr the City. ..--"....,:.~...."..,--.,,_. ..-.. ,... The tltUl will "l6bt~ïir~¡pp~'ialfÓi: the lI\QVe froIlFth~:.g~fern Baseball L.ai~. and will commit to play. minimwa of 4~ re9~lar aeaaon games, plus winter leaque and other special events aa ean be scheduled. The team would alao like to have the right to use the parking lot and field adjacent to the stadium for other community events auçh as community baseball ç~a. 3-on-J basketball, volleyball. roller hockey. ,oftball. soccer and championship reg~onal high school football tournaments. 4S a community lervice. This lette~ of intent is not intended to bind either aide. but lets forth th. cOllUllitment' of the Palm springs'Suns With respect to the eatAblish8ent of a W..tern Baaeball League franchise in Chula Vista. California. ~ery truly yours; ~ M . DLB:wda c: Mr. Donald A. Dicarlo --.Ot.'" I - . . ~ ", ClI'zti gJ a;} £ !Blank RESOLUTION NO. 1515 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AMENDING A SPECIAL LAND USE PERMIT FOR THE ESTABLISHMENT OF A MATERIALS RECOVERY FACILITY/TRASH TRANSFER STATION AT 1855 MAXWEll ROAD WITHIN THE OTAY VAllEY REDEVElOPMENT PROJECT AREA DATED MARCH 19, 1996 TO EXTEND THE PERMIT WHEREAS, the Redevelopment Agency of the City of Chula Vista (the "Agency") approved a Special Land Use Permit (the "Permit") for the establishment of a materials recovery facility/trash transfer station (the "Facility") at 1855 Maxwell Road within the Otay Valley Road Redevelopment Project Area on March 19, 1996, and WHEREAS, said Permit has an effective period of one year from the date of approval within which building permits must be obtained and development begun; and WHEREAS, the developer of the Facility, John Sexton Sand & Gravel Corp. (the "Developer"). has had to redesign the Facility in order to incorporate a phased development plan which necessitates the submission of new applications for permits from the City of Chula Vista and the State of California which will require additional processing time; and WHEREAS, the Developer has requested that the effective period of the Permit be extended until March 17, 1998 in order to accommodate the time necessary to obtain permits for development of the Facility and to coincide with the effective period of the Owner Participation Agreement for development of the Facility which was amended on September 17, 1996 to incorporate phasing plans, certain conditions and extend the effect period until March 17, 1998; and WHEREAS, Initial Environmental Study IS-95-28, of possible adverse environmental impacts has been conducted by the Environmental Review Coordinator who concluded that there would be no significant environmental effects from development of the Facility and Negative Declaration IS-95-28 was adopted by the Agency on March 19, 1996. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of Chula Vista hereby amends the Special Land Use Permit (copy attached) for the development of a materials recovery facility/trash transfer station at 1855 Maxwell Road, within the Otay Valley Road Redevelopment Project Area approved on March 19, 1996 as follows: 1. The first sentence of the second paragraph of Section 4 of the Special Land Use Permit is eliminated in its entirety and replaced with the following sentence; "This Special land Use Permit shall become void and ineffective if not utilized by March 17, 1998 in accordance with Section 19.14.260 of the Municipal Code." 2. Condition (2) under Plannina Department in Section 4 is amended by adding the following words: "...and DRC 96-20M." 3. Except as expressly amended herein, all other terms and conditions of the Special Use Permit shall remain in full force and effect. SIGNATURE PAGE FOLLOWS ..ß -c.¡ - . JOHN SEXTON SAND & GRAVEL CORP. Arthur Daniels. CEO President Presented by Approved as to form by ~, ~ (.~Jt2:Jì?1 (~J ßJ;~# Chris Salomone Ann oore Director of Community Development Acting Agency Attorney [lfk[ M,IHOMElCOMMDEVIRESOSl",opÛ.", "'ptomb" 17.1996 [lA9pm)] ~- s- .- . .- r";-, '" 199~-a")nn45C: '. ~~ * ~ .L70 ~J 1687 14--nlN-1996 08=56 AM Recording Requested By ;;~::!::4~ ~£~~91;, and When Recorded Return to: Sr;g :':::~f ~rrs:r R£CDRDER'S ~FFIC: \ ; :;"!~F:' :~l~h ~~~;i"TV ~DF1'F The Redevelopment Agency of the. ;ŒS~ ~. Do} City of Chura Vista 276 Fourth Avenue :' .' Chura Vista, CA 91910 :;.j ,. Attention: Sylvia C. Simmons {Space above for Recorder's use only] SPECIAL LAND USE PERMIT For the Establishment of A I Mateñals Recove~ FacilitylTrash Transfer Station At-1855 Maxwell Road C~ula Vista, CA On March 19, 1996, the 9.ty of Chura Vista Redevelopment Agency adopted Resolution 1486, attached hereto as Exhibit A, as to the property known as. 1855 Maxwell Road and more particularly set forth on locator Map attached hereto as Exhibit B. ., """" ,d-(p kJ- ifrOI ..-.... ' 1688 EXHIBIT A RESOLUTION 1486 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING INITIAL ENVIRONMENTAL STUDY INEGA TIVE DECLARATION 15-95-06, ADOPTING THE MITIGATION MONITORING AND REPORTING PROGRAM, MAKING ANDINGS UNDER THE OT A Y VAllEY ROAD REDEVElOPMENT PROJECT AREA IMPlEMENTATION PlANIDESIGN MANUAL ADDENDUM, AND APPROVING A SPECIAL LAND USE PERMIT FOR THE ESTABUSHMENT OF A MATERIALS RECOVERY FAC/UTY/TRASH TRANSFER STATION AT 1855 MAXWell AVENUE WITHIN THE OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA Whereas, the John Sexton Sand and Gravel Corporation CoDeveloper") desires to develop a trash transfer facility Cthe"Project") at 1855 Maxwell Road,Cthe "Site") within the Otay Valley Road Redevelopment Project Area; and, Whereas, the site is located within an loP Clndustri~IfPrecise Plan) zone and the project requires a Special land Use Permit in order to be developed within that zone; and Whereas, the Otay Valley Road Project Area Committee noticed and held a public meeting'on March 18, 1996 to consider the project, made. the requisite findings and recommended that the Agency approve a Special Land Use Permit for the project including certain conditions; and, Whereas, the Agency duly noticed and held a public hearing on the requested Special Land Use Permit on March 19, 1996, and all protests, if any, to the approval of a Special Land Use Permit in the manner herein contèmplated, were made and received at said public hearing, and no convincing objections to the proposed transaction were found to exist; and, Whereas, Initial Environmental Study IS-95-28, of possible adverse environmental impacts of the project has been conducted by the Environmental Review Coordinator who concluded that there would be no significant environmental effects ,,!nd recommends Negative Declaration IS-95-28 be adopted; Whereas, the Redevelopment Agency is requested to review and adopt the Mitigation Monitoring and Reporting Program; and Whereas, the Redevelopment Agency is also requested to make Rndings under the Otay Valley Road Redevelopment Project Area Implementation Plan/Design Manual Addendum. NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA does'hereby find, order, determine and resolve as follows: Section 1. to adopt Negative Declaration issued under IS-95-28. ..3-7 - . ----- Resolution 1486 1689 Page 2 '.r Section 2. to adopt the Mitigation Monitoring and Reporting Program. Section 3. to make the ;following Findings under the Otay Valley Road Redevelopment Project Area Implementation Plan/Design Manual Addendum: a. The Proposed Special land Use Permit does not constitute a substantial detriment to the Project Area or adjacent areas in that it is compatible with surrounding uses. b. The proposed Special land Use Permit generally promotes the orderly physical and economic development of the Project Area in that its continuance contributes to the local economy by providing a needed service. c. The proposed Special land ~se Permit is generally consistent with the townscapelplanning and urban design objectives of the Implementation Plan/Design Manual Addendum, and contributes to the amenity of the Project Area in that the project must implement any requirements related to landscaping, exterior structural alterations, etc. Section 4. to approve a Special land Use Permit for'the establishment of a Materials Recovery FacilitYfTrash Transfer Station on the property location at 1855 Maxwell Road, Chula Vista, Cålifornia ón the following conditions: This special land use permit shall become void and ineffective if not utilized within one year from the effective date thereof, in accordance with Section 19.14.260 of the Municipal Code. Failure to comply with any condition of approval shall cause this permit to be reviewed by the CitylAgency for additional conditions or revocation. The ApplicantlDeveloper shall: PlanninG DeDartment 1. Construct and operate the Project as described in the application and adjoining plans, or as amended in this conditional approval. 2. Comply with and implement all plans and conditions of the Design Review Committee as approved pursuant to DRC-96-20. 3. Comply with and implement all Mitigation and Monitoring Measures as listed in IS-95-28. 4. A minimum of two months prior to the opening of operations, develop and submit to the Zoning Administrator for review and approval an 0.0- and off- site clean-up program. 5. limit the hours of operation to: A. 5:00 a.m. to 10:00 p.m. (with no deliveries before 6:30 a.m.), Mondays through Fridays; and 3-? --. ---_. T - -- ,.... Resolution 1486 169Q Page 3 , B. 6:00 a.m. to 10:00 p.m. (with no deliveries before 7:30 a.m.), Saturdays and Sundays. Police DeDartment 6. At least one month prior to the opening of the Project, schedule a security evaluation of the Project with the Crime Prevention Unit of the Police Department and ~mplement any suggestions resulting from said survey, to the satisfaction of the Chief of Police. Submit written proof of compliance to the Director of Planning prior to opening of the project. 7. To the satisfaction of the Chief of Police, provide additional lighting to that shown on the site plan at the following locations: Gate C, truck parking area, drop~ff area, northwest parking, overflow parking, gate house, self-haul staging area, west párking, truck staging ,area, scales, grinder/shredder or on the perimeter of the property. EnQineerinq Division. Public Works DeDartment 8. Pay, comply with or otherwise implement the following to the satisfaction of the City Engineer: A. Pay the following fees: i. Sewer connection ii. Traffic signal iii. Public f.acilities Devßlopment Impact Fees .' B. Dedicate a half width of 36 feet along the Maxwell Road frontage. C. Install two (2) 250 watt HPSV street lights 'on Maxwell Road. D. Install curb, gutter and sidewalk on Maxwell Road. E. Provide sufficient asphalt paving to provide a half-width of 36 feet on the east side of Maxwell Road. F. Obtain all necessary grading permits G. Obtain an encroachment permit for the monument sign in the public right~f-way. School Districts 9. Prior to issuance of building permits,. pay ali school fees to the satisfaction of the Sweetwater Union High School District and the Chura Vista Elementary School District. cß - 9 .. . -.-- .-.----- Resolution 1486 1691 Page 4 Fire Deoartment 10. Prior to the submittal of building permit applications, review the project with the Chufa Vista Fire Department and implement their suggestions, to the satisfaction of the Fire Marshal. 11. Install fire hydrants at locations and of a type satisfactory to the Are Marshal. 12. Install fire hose stations at locations and of a type satisfactory to the Fire Marshal. 13. Install fire extinguishers at locations and of a type satisfactory to the Fire Marshal. 14. Install a Knox Box or key gate switch to the satisfaction of the Fire Marshal. Miscellaneous 15. Applicant/qperator shall and does hereby agree to indemnify, protect, defend and hold hannless City, its 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 (collectively, "liabilities") incurred by the City arising, directly or indirectly, from: A. City's approval and issuance of this Special Use Permit, B. City's approval or issuance of any other permit or action, whether discretionary or non-discretionary, in connection with the use contemplated herein, and C. Applicant's installation and operation of the facility permitted hereby. Applicant/operator shall acknowledge their agreement to this provision by executing a copy of this Special Use Permit where indicated, below. Applicant'sl operator's compliance with this provision is an express condition of this Special Use Permit and this provision shall be binding on any and all of Applicant'Sloperator's successors and assigns. Execution and Recordation of Resolution of ADDrovai 16. The property owner and the applicant shall execute this document by signing the lines provided below before a notary public, said execution indicating that the property owner and applicant have each read, understood and agreed to the conditions contained herein. Upon execution, this notarized document shall be 'recorded with the County Clerk of the County of San Diego, at the sole ~ -(0 .-....-.- ..-..- . . ;t692 , , . ResolUtion 1486 Page 5 Department shall indicate the property owner'slapplicant's desire that the project, and the corresponding application for building pemIits and/or a business license, be held in abeyance without approval. ' In accordance with the provisions of Resolution 1486 of the Redevelopment Agency of the City of ChuIa Vista granting a Special Use Pennit for the development of a Trash Transfer Facility at 1855 Maxwell Road the signator below declares that they shaIl abide by the provisions of the resolution. JOHN SEXTON SAND & GRAVEL CORPORATION .. I SUBSCRIBED and SWORN to ~-~ before me this 16th day of lfaÛ 199~. -r: - !:,~ . / Arthur Daniels .,C:I3.0. .OfF I fA l SEAL" President Date: .ð;!;b h<b ZENA RAYFORD NOTARY PUBLIC, STATE OF ltUNOIS /- / MY COMMISSION EXPIRES 3/22/9B .....,,~~ " Submitted by Approved as to Form &-5~ ~~o~ Chris Salomone Community Development Director y Counse .ß -If -. .... -.1693 Resolution 1486 PASSED, APPROVED and ADOPTED BY THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA this 19th day of March 199~ by the following vote: AYES: Members Padilla, Moot, Rindone, Alevy NOES: Member Horton ABSENT: None ABSTENTIONS: None -' ~'*,(U;-', Shirley Ho . Chairman ATTEsT: L-¡;~ Chris Salomone Executive Secretary " STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO) ss: CITY OF CHULA VISTA) I, Chris Salomone, Executive Secretary to the Redevelopment Agency of the City of Chula Vista, California DO HEREBY CERTIFY that the foregoing is a full, true and correct .copy of Resolution No. 1486 and that the same has not been amended or repealed. Dated: March 20. 1996 . (Á<Ç¡~ Chris Salomone ~ -Id.- ..§/ ~',£XHrBITB e~t') .. ~~ zc¡ 0 ü:. ~ (.) 0 -I f- (.) UJ .., 0 a: a. 1 :.,-, . '".. " " . "..' . ,:: ~ >~~J!! "000 J:I: . ," :'p.. .' , ,'. ""',., m ë; . ~ ~ I ","",<:2: X ~ - /3 ---'-"'" " (" .\.i lr!'!/,_iy)nl<'CC ~~~ H 77~ VL70~JJ 1687 14-IUN-1996 08=56 AM Recording Requested By ~::'rT~; ,';-"n~r,: and When Recorded Return to: t;^< -,"::':- -~;'"~~:\;-,¿:~ñ5~i~.t; ~.q". .~.. ...u- --'-'.., .,--",,"-.. - ..: .c. \::~é~Q:: :~Fh ~;~;:\' ~D¡.DE¡' - ., The Redevelopment Agency of the \ .'cc~- ,-~, City of Chura Vista . 276 Fourth Avenue ' : Chula Vista, CA 91910 .' "'.I ! . Attention: Svlvia C. Simmons [Space above for Recorder's use only] SPECIAL LAND USE PERMIT For the Establishment of A I Materials Recovery facilitylTrash Transfer Station At 1855 Maxwell Road Chula Vista, CA On March 19, 1996, the Ci,ty of Chula Vista Redevelopment Agency adopted Resolution 1486, attached hereto as Exhibit A, as to the property known as 1855 Maxwell Road and more particularly set forth on locator Map attached hereto as Exhibit B. 4 - b -3 1(-11f¡¡~- " 1688 EXHIBIT A RESOLUTION 1486 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING INITIAL ENVIRONMENTAL STUDY/NEGATIVE DECLARATION IS-95-o6, ADOPTING THE MITIGATION MONITORING AND REPORTING PROGRAM, MAKING ANDINGS UNDER THE OT A Y VAllEY ROAD REDEVElOPMENT PROJECT AREA IMPLEMENTATION PlANJDESIGN MANUAL ADDENDUM, AND APPROVING A SPECIAL LAND USE PERMIT FOR THE ESTABLISHMENT OF A MATERIALS RECOVERY FACILITY /TRASH TRANSFER STATION AT 1855 MAXWELL AVENUE WITHIN THE OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA Whereas, the John Sexton Sand and Gravel Corporation ("Developer") desires to develop a trash transfer facility (the"Project"' at 1855 Maxwell Road/the "Site") within the Otay Valley Road Redevelopment Project Area; and, Whereas, the site is located within an loP (lndustri"I1/Precise Plan) zone and the project requires a Special Land Use Permit in order to be developed within that zone; and Whereas, the Otay Valley Road Project Area Committee noticed and held a public meeting' on March 18, 1996 to consider the project, made,the requisite findings and recommended that the Agency approve a Special Land Use Permit for the project including certain conditions; and, Whereas, the Agency duly noticed and held a public hearing on the requested Special Land Use Permit on March 19, 1996, and all protests, if any, to the approval of a Special Land Use Permit in the manner tierein contemplated, were made and received at said public hearing, and no convincing objections to the proposed transactio'n were found to exist; and, Whereas, Initial Environmental Study 15-95-28, of possible adverse environmental impacts of the project has been conducted by the Environmental Review Coordinator who concluded that there would be no significant environmental effects é!nd recommends Negative Declaration 15-95-28 be adopted; Whereas, the Redevelopment Agency is requested to review and adopt the Mitigation Monitoring and Reporting Program; and Whereas, the Redevelopment Agency is also requested to make Findings under the Otay Valley Road Redevelopment Project Area Implementation Plan/Design Manual Addendum. NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA does'hereby find, order, determine and resolve as follows: Section 1. to adopt Negative Declaration issued under 18-95-28. 4- h -4 - - Resolution 1486 1689 Page 2 'or Section 2. to adopt the Mitigation Monitoring and Reporting Program. Section 3. to make the ;following Findings under the Otay Valley Road Redevelopment Project Area Implementation Plan/Design Mànual Addendum: a. The Proposed Special land Use Permit does not constitute a substantial detriment to the Project Area or adjacent areas in that it is compatible with surrounding uses. b. The proposed Special land Use Permit generally promotes the orderly physical and economic development of the Project Area in that its continuance contributes to the local economy by providing a needed service. c. The proposed Special land ':Jse Permit is generally consistent with the townscapelplanning and urban design objectives of the Implementation Plan/Design Manual Addendum, and contributes to the amenity of the Project Area in that the project must implement any requirements related to landscaping, exterior structural alterations, etc. Section 4. to approve a Special land Use Permit for' the establishment of a Materials Recovery FacilitYfTra,sh Transfer Station on the property location at 1855 Maxwell Road, Chula Vista, California on the following conditions: This special land use permit shall become void and ineffective if not utilized within one year from the effective date thereof, in accordance with Section 19.14.260 of the Municipal Code. Failure to comply with any condition of approval shall cause this permit to be reviewed by the CitylAgency for additional conditions or revocation. The ApplicantlDeveloper shall: Plannino DeDartment 1. Construct and operate the Project as described in the application and adjoining plans, or as amended in this conditional approval. 2. Comply with and implement all plans and conditions of the Design Review Committee as approved pursuant to DRC-96-20. 3. Comply with and implement all Mitigation and Monitoring Measures as listed in IS-95-28. 4. A minimum of two months prior to the opening of operations, develop and submit to the Zoning Administrator for review and approval an on- and off- site clean-up program. 5. Limit the hours of operation to: A. 5:00 a.m. to 10:00 p.m. (with no deliveries before 6:30 a.m.), Mondays through Fridays; and 4 - ¡; - ~ ,.- ,.~ Resolution 1486 169Q Page 3 . B. 6:00 a.m. to 10:00 p.m. (with no deliveries before 7:30 a.m. I, Saturdays and Sundays. Police DeDartment 6. At least one month prior to the opening of the Project, schedule a security evaluation of the Project with the Crime Prevention Unit of the Police Department and implement any suggestions resulting from said survey, to the satisfaction of the Chief of Police. Submit written proof of compliance to the Director of Planning prior to opening of the project. 7. To the satisfaction of the Chief of Police, provide additional lighting to that shown on the site plan at the following locations: Gate C, truck parking area, drop-off area, northwest parking, overflow parking, gate house, self-haul staging area, west pãrking, truck staging ,area, scales, grinder/shredder or on the perimeter of the property. Enaineerina Division. Public Works DeDartment 8. Pay, comply with or otherwise implement the following to the satisfaction of the City Engineer: A. Pay the following fees: i. Sewer connection ii. Traffic signal iii. Public f.acilities Development Impact Fees .' B. Dedicate a half width of 36 feet along the Maxwell Road frontage. C. Install two (2) 250 watt HPSV street lights .on Maxwell Road. D. Install curb, gutter and sidewalk on Maxwell Road. E. Provide sufficient asphalt paving to provide a half-width of 36 feet on the east side of Maxwell Road. F. Obtain all necessary grading permits G. Obtain an encroachment permit for the monument sign in the public right-of-way. School Districts 9. Prior to issuance of building. permits, pay ali school fees to the satisfaction of the Sweetwater Union High School District and the Chula Vista Elementary School District. 4 -6 -ro - . Resolution 1486 1691 Page 4 Fire DeDartment 10. Prior to the submittal of building permit applications, review the project with the Chula Vista Fire Department and implement their suggestions, to the satisfaction of the Fire Marshal. 11. Install fire hydrants at locations and of a type satisfactory to the Fire Marshal. 12. Install fire hose stations at locations and of a type satisfactory to the Fire Marshal. 13. Install fire extinguishers at locations and of a type satisfactory to the Fire Marshal. 14. Install a Knox Box or key gate switch to the satisfaction of the Fire Marshal. Miscellaneous 15. Applicant/operator shall and does hereby agree to indemnify, protect, defend and hold hannless City, its 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 (collectively, "liabilities") incurred by the City arising, directly or indirectly, from: A. City's approval and issuance of this Special Use Pennit, B. City's approval or issuance of any other pennit or action, whether discretionary or non-discretionary, in connection with the use contemplated herein, and C. Applicant's installation and operation of the facility pennitted hereby. Applicant/operator shall acknowledge their agreement to this provision by executing a copy of this Special Use Permit where indicated, below. Applicant's/ operator's compliance with this provision is an express condition of this Special Use Permit and this provision shall be binding on any and all of Applicant's/operator's successors and assigns. Execution and Recordation of Resolution of Aooroval 16. The property owner and the applicant shall execute this document by signing the lines provided below before a notary public, said execution indicating that the property owner and applicant have each read, understood and agreed to the conditions contained herein. Upon execution, this notarized document shall be 'recorded with the County Clerk of the County of San Diego, at the sole q - 6 -7 1692 ' , Resolution 1486 Page 5 Department shall indicate the property owner's!applicant's desire that the project, and the corresponding application for building permits and/or a business license, be held in abeyance without approval. In accordance with the provisions of Resolution 1486 of the Redevelopment Agency of the City of Chula Vista granting a Special Use Permit for the development of a Trash Transfer Facility at 1855 Maxwell Road the signator below declares that they sbalI abide by the provisions of the resolution. JOHN SEXTON SAND & GRAVEL CORPORATION ' SUBSCRIBED and SWORN to ~-~ before me this 16th day of M~ 199~, L -'t:: -~-~ . / Arthur Daniels - c':13.0. .0 F F I I A l SEA l" President Date: ..:5~b h6 ZENA RAYFORD NOTARY PUBLIC. STATE Of ILLINOIS / / MY COMMISSION EXPIRES 3/22/98 ^"'~~~ Submitted by Approved as to Form &-5~ ~o~ Chris Salomone Community Development Director y Counse 1-b - <g -.1693 Resolution 1486 PASSED, APPROVED and ADOPTED BY THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA this 19th day of March 199~ by the following vote: AYES: Members Padilla, Moot, Rindone, Alevy NOES: Member Horton ABSENT: None ABSTENTIONS: None .~~ Shirley Ho . Chairman ArrEST: -&--):' ~ Chris Salomone Executive Secretary STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO) ss: CITY OF CHULA VISTA) I, Chris Salomone, Executive Secretary to the Redevelopment Agency of the City of Chula Vista, California DO HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution No. 1486 and that the same has not been amended or repealed. Dated: March 20, 1996 fÁ< Ç¡~ .Chris Salomone 4 - 6 - 9 - . . :/ - ~',EXHIBIT B e ~ : '~ ~~ za 0 ü:. !i (,) 0 ..J I- (,) W "':I 0 a: c.. ~ ::: >- (!) a: w z w ',"'.. .;,:~'.-;~:~ "'Oëi; ..a: -' , :'po :'" "" 0 ~ . ¡¡; w 0 .. Ïi en . £ ~ I ......c:z X / 4~ IJ - (0 ~"f.? ~ -::.::: :. 01Y OF CHULA VISTA COMMUNITY DEVELOPMENT DEPARTMENT . FAX # (619) 476-5310 TElEFAX COVER lETTER ß/7~ ~ t COMPANY: ATTENTION: Q,§ FROM: '1-77-'1 -- DATE: > PAGES: .3 (Includes thIS Cover page.) FAX#: ¿¡¿& -- G3 44:, - Message: If ai/pages are not received; please call (619) 691-5047. . 276 FOURTH AVENUEICHULA VISTA. CALIFORNIA 92010/(6t9) 691-504, - - ******************************************************************************************************** * P.Ol * * TRANSACTION REPORT * * SEP-17-96 TUE 10:49 * * * * DATE START RECEIVER TK TIME PAGES TYPE NOTE * * * * SEP-17 10:47 94266346 l' 50' 3 SEND OK * * * ******************************************************************************************************** -" ... -.-. ..".."-",, .-. ... ,""':'" ~:("':IW"~ 1':":':~t""I":":"'~':"" . ""'"",,," "",'Y"""':Y:'(I""""r"("'\1"""':¡!":'~:<:,:,¡:~f:I'1' - " ~~ft-. ~..L--= ""'- - """" ='" CllY OF CHUlA VISTA COMMUNITY DEVELOPMENT DEPARTMENT September 16, 1996 VIA FAX - 426-6346 Star News Legal Department 835 Third Avenue Chura Vista, CA 91910 RE: NOTICE OF PUBLIC HEARING AMENDING A SPECIAL LAND USE PERMIT FOR THE ESTABLISHMENT OF A MATERIALS RECOVERY FACILITY/TRASH TRANSFER SITE Enclosed is a copy of the notice of public hearing amending a special land use permit. Please publish this document on Saturday, SeDtember 21, 1996 and forward a proof of publication notice, as well as the invoice, to the Community Development Department, City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910. Sincerely, ~~ Fred Kassman Redevelopment Coordinator FK/ak Attachment M : homelcommdevlkassmanlmiscltrashph .Iet 276 FOURTH AVE/CHULA VISTA, CALIFORNIA 91910/(619) 691-5047 NOTICE OF PUBLIC HEARING AMENDING A SPECIAL lAND USE PERMIT FOR THE ESTABLISHMENT OF A MATERIALS RECOVERY FACllITYfTRASH TRANSFER SITE NOTICE IS HEREBY GIVEN that the City of Chula Vista Redevelopment Agency will hold a public hearing to consider amending a Special land Use Permit for the establishment of a materials recovery facility/trash transfer station at 1855 Maxwell Road within the Otay Valley Redevelopment Project Area dated March 19, 1996, to extend the permit, Anyone desiring to review the amended OPA may obtain a copy at the Chula Vista Community Development Department, 263 Fig Avenue, Chula Vista. All written comments should be forwarded to the Redevelopment Coordinator, Community Development Department, City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 ([619] 691-5047). If you wish to challenge the City's action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Community Development Department at, or prior to, the public hearing. SAID PUBLIC HEARING Will BE HELD on October 1, 1996, at 4:00 p.m. (immediately following the City Council meeting) in the Council Chambers, 276 Fourth Avenue, Chula Vista, CA 91910. At this time, any person may appear to be heard. Date: September 16, 1996 M : Iho me Icommdevlkassman Imis cl tr ashph. not NOTICE OF PUBLIC HEARING AMENDING A SPECIAL LAND USE PERMIT FOR THE ESTABLISHMENT OF A MATERIALS RECOVERY FACILITYITRASH TRANSFER SITE NOTICE IS HEREBY GIVEN that the City of Chula Vista Redevelopment Agency will hold a public hearing to consider amending a Special Land Use Permit for the establishment of a materials recovery facility/trash transfer station at 1855 Maxwell Road within the Otay Valley Redevelopment Project Area dated March 19, 1996, to extend the permit. Anyone desiring to review the amended OPA may review a copy at the Chula Vista Community Development Department, 263 Fig Avenue, Chula Vista. All written comments should be forwarded to the Redevelopment Coordinator, Community Development Department, City of Chula'Vista, 276 Fourth Avenue. Chula Vista, CA 91910 ([619] 691-5047). If you wish to challenge the City's action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Community Development Department at, or prior to, the public hearing. SAID PUBLlë HEARING WilL BE HELD on October 1, 1996, at 4:00 p.m. {immediately following the City Council meeting} in the Council Chambers, 276 Fourth Avenue, Chula Vista, CA 91910. At this time, any person may appear to be heard. Date: September 23, 1996 M : \home \co m md evl kessm 0 n \ m i s c \ tro s hph. not II .. III 8. H.G'. FENTON MATERIAL CO. OTAY INDUSTRIAL PARK ALA VIAN ABDOLLA H & GITY P.O. BOX 64 1311 LA PALMA STREET #3 825 ENERGY WAY SAN DIEGO CA 92112 SAN DIEGO CA 92109 CHULA VISTA CA 91911 PICK YOUR PART AUTO TAKASHIMA KATSUMI J. TR MCCORMACK JAMES H & JUNE WRECKING 366 SURREY DRIVE 1981 TRUST 1301 E ORANGEWOOD AVE. #130 BONITA CA 91902 p,O, BOX 598 ANAHEIM CA 92805 SPRING VALLEY CA 91976 CHULA VISTA SANITARY ATTN: MICHAEL SCHROCK SNMB LTD, PARTNERSHIP SERVICE SITE SCAPES C/O PATRICK PATEK P.O. BOX 26105 130 NEWPORT CENTER DR# 210 32 LOOKERMAN SQ #LlOO FORT WORTH TX 76116 NEWPORT BEACH CA 92660 DOVER DE 19901 JUSTUS JAY E & BETH J CONSOLIDATED FREIGHTW A YS 13276 NORCROFT ROAD CORP, SAN DIEGO CA 92130 P,O. BOX 3301 PORTLAND OR 97308 6440100600 6440100600 6440100700 COUNTY OF SAN OIEGO\ COUNTY OF SAN DIEGO\ COUNTY OF SAN DIEGO\ C/O PROPERTY DEPARTMENT C/O PROPERTY DEPARTMENT 202 C ST 202 C ST 5201 RUFFIN ROAD SAN DIEGO CA 92101 SAN DIEGO CA 92101 SAN DIEGO CA 92123 6440200300 6440401600 6440404000 COUNTY OF SAN DIEGO\ HAZARD RECONTRACTING CO\ FASK LAND INC*NSNS20%#BQRST REVOCAB C/O PROPERTY DEPARTMENT C/O R D RANDAL 202 C ST POBOX 229000 1265 PEARLBUSH CT SAN DIEGO CA 92101 SAN DIEGO CA 92192 EL CAJON CA 92019 6440404600 6440404700 6440404800 ADAMS DEVCO INC\ ADAMS DEVCO INC\ SANCHEZ OCTAVIO&LETICIA\ POBOX 1982 POBOX 1982 745 OTAY VALLEY RD No,A LA JOLLA CA 92038 LA JOLLA CA 92038 CHULA VISTA CA 91911 6440404900 6440500600 6440500700 SUTl-IERLAND / PALUMBO \ FENTON H G MATERIAL CO\ FENTON H G MATERIAL CO\ 1890 NIRVANA AVE POBOX64 POBOX64 CHULA VISTA CA 91911 SAN DIEGO CA 92112 SAN DIEGO CA 92112 6441810100 6441810200 6441810300 8ALLARD JAMES S&GLORIA L \ MERZAN INC\ BARBER WALTER H JR\ 2543 SAN ANSELMO ST 1869 NIRVANA AVE 8163 COMMERCIAL ST SAN DIEGO CA 92109 CHULA VISTA CA 91911 LA MESA CA 91942 6441810400 6441810800 6441810900 SCOTT JOHN E&ElVIA M\ SOCQ-LYNCH CORP\ MCMAHON JOHN J&VERONICA W TRS\ 5705 SUNNY VIEW DR 1888 NIRVANA AVE 3403 WINNETKA DR BONITA CA 91902 CHULA VISTA CA 91911 BONITA CA 91902 6441811000 6441811100 6441811500 PENINSULA VEGETABLE EXCHANGE INC\ ARNCE JOHN W&ELAINE\ KAUL OOUGLAS&KATl-IRYN\ POBOX 1628 796 ENERGY WAY 811 ENERGY WAY CHULA VISTA CA 91912 CHULA VISTA CA 91911 CHULA VISTA CA 91911 6441811600 6441811800 6441811900 TOWNE EARl&DONNA \ GAMBOA MANUEL&SONIA\ VASQUEZ JESSE M&DORA\ 1841 COLTRIDGE PL 1444 PEQUENA ST 190 EAST I ST ESCONDIDO CA 92029 SAN DIEGO CA 92154 CHULA VISTA CA 91910 6441812000 6441812100 6441812200 STANLEY JACKIE L&JUDY E*HWJT#STANLE VAKILI MARK\ MARTIN NICHOLAS&OANH*HWJT1/2#HARTSU 795 ENERGY WAY 3151 AIRWAY AVE No.E2 783 ENERGY WAY CHULA VISTA CA 91911 COSTA MESA CA 92626 CHULA VISTA CA 91911 6441812300 6441812400 6441812500 HYNUM FAMILY TRUST 01-29-95\ SEDIVEC JOSEF&BONNIE\ SEDIVEC JOSEF&BONNIE\ 1039 E 24TH ST 3652 80NITA VERDE DR 3652 BONITA VERDE DR NATIONAL CITY CA 91950 BONITA CA 91902 BONITA CA 91902 6441812600 6441812700 6441812800 SUTHERLAND/PALUMBO\ VILLAGOMEZ SALVADORE&BEATRIZ 0\ GUNTHORP ROBERT L&MARY E\ C/O GOLD COAST ENGINEERING POBOX 1109 5117 RENAISSANCE AVE No.D 7B9 ENERGY WAY BONITA CA 91908 SAN DIEGO CA 92122 CHULA VISTA CA 91911 6441B12900 6441B13000 6441B13300 ORTIZ MARCELINO&TERESA TRUST 12-30- TEMPLE CHARLES R JR\ SUTHERLAND/PALUMBO\ C/O GOLD COAST ENGINEERING 600 POINT DEFIANCE CT 790 ENERGY WAY POBOX 1109 CHULA VISTA CA 91911 CHULA VISTA CA 91911 BONITA CA 9190B 6441821200 6442301100 6442301200 OTAY INDUSTRIAL PARK*CONS5%#OTAY IN SAN DIEGO GAS&ELECTRIC CO\ SAN DIEGO GAS&ELECTRIC CO\ LAND MANAGEMENT EB - 7 LAND MANAGEMENT EB- 7 13780 E IMPERIAL HWY P,O. BOX IB31 P,O. BOX 1831 SANTA FE SPRINGS CA 90670 SAN DIEGO CA 92112 SAN DIEGO CA 92112 6442301300 6442301400 6442301500 SAN DIEGO GAS&ELECTRIC CO\ SAN DIEGO GAS&ELECTRIC CO\ SAN DIEGO GAS&ELECTRIC CO\ LAND MANAGEMENT EB- 7 LAND MANAGEMENT EB - 7 LAND MANAGEMENT EB- 7 P.O, BOX IB31 P,O, BOX IB31 P,O. BOX 1831 SAN DIEGO CA 92112 SAN DIEGO CA 92112 SAN DIEGO CA 92112 6442301600 6442301700 6442301800 SAN DIEGO GAS&ELECTRIC CO\ SAN DIEGO GAS&ELECTRIC CO\ SAN DIEGO GAS&ElECTRIC CO\ LAND MANAGEMENT EB - 7 LAND MANAGEMENT EB. 7 LAND MANAGEMENT EB- 7 P.O, BOX 1831 P.O. BOX 1831 P.O, BOX 1831 SAN DIEGO CA 92112 SAN DIEGO CA 92112 SAN DIEGO CA 92112 6442301900 6442302000 6442302100 SAN DIEGO GAS&ELECTRIC CO\ DARLING PROPERTIES INC\ DARLING PROPERTIES INC\ LAND MANAGEMENT EB - 7 P,O. BOX 1831 251 0 CONNOR RIDGE BLVD No.300 251 0 CONNOR RIDGE BLVD No.300 SAN DIEGO CA 92112 IRVING TJ( 75038 IRVING TX 75038 6442302200 6442302300 6442302400 DARLING PROPERTIES INC\ DARLING PROPERTIES INC\ DARLING PROPERTIES INC\ 251 0 CONNOR RIDGE BLVD No,300 251 0 CONNOR RIDGE BLVO No,300 251 0 CONNOR RIDGE BLVD No.300 IRVING TX 75038 IRVING TX 75038 IRVING TX 75038 6442302500 6442302600 DARLING PROPERTIES INC\ REAL FRANK&IMELDA\ 251 0 CONNOR RIDGE BLVD No,300 9950 MARCONI DR IRVING TX 75038 SAN DIEGO CA 92173 -..- --.- Lab~ 300' . H. G. Fenton Material Co. Takashima Katsumi J. TR SNMB lTD. Partnership P.O. Box 64 366 Surrey Sri ve c/o Patrick Patek San Diego, CA .92112 Bol)ita, CA 91902 32 lookerman SQ #l100 Dover, DE 19901 Otay Industrial Park McCormack James H & June Justus Jay E & Beth J 1311~La Palma Street #3 1981 Trust 13276 Norcroft Road San Diego, CA 92109 P.O. Box 598 San Diego, CA 92130 Spring Valley, CA 91976 Alavian Abdolla H & Gity Chula Vista Sanitary Service Consolidated Freightways Corp. 895 Energy Way P.O. Box 26105 P.O. Box 3301 Chula Vista, CA 91911 Fort Worth, Texas 76116 Portland, OR 97308 Pick Your Part Auto Wrecking Site Scapes 1301 E. Orangewood Avenue 130 Newport Center Drive #130 Suite 210 Anaheim, CA 92805 Newport Beach, CA 92660 ATTN: Michael Schrock ! . QzM; ß~ +0 fiJ~ ~ rr~ ÂoJ ~ - . REDEVElOPMENT AGENCY AGENDA STATEMENT ;- ~ Item --¡--o-- Meeting Date -09 11-M (0 (II crCc, ITEM TiTlE: Report Review of Semi Exclusive Negotiating Agreement with E Street Trolley Square, lLC for the Development of a Shopping/Entertainment Center Between E and F Streets West of Woodlawn Avenue, and Issuing Instructions to Negotiators SUBMITTED BY: Commoo", """,mOM D're~ <;, , REVIEWED BY: Executive Director J~ ~ (4/5ths Vote: Yes - No_) /7 BACKGROUND: E Street Trolley Square, lLC, a limited partnership which includes William Tuchscher, Matt Peterson, and James Clark (Sunburst Homes, Corp,) have proposed to develop a shopping and entertainment center west of Woodlawn Avenue between E and F Streets. The site incorporates the City's Public Services Yard and reconfigures the E Street Trolley Station. The developers have proposed a Semi Exclusive Negotiating Agreement (SENA) with the Redevelopment Agency which has been reviewed by staff. Major negotiations issues in the Agreement are presented to the Agency for consideration and direction. RECOMMENDATION: That the Agency defer further negotiations on this project until more information is available concerning the status of the Public Works Yard and development of the Bayfront, BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: E Street Trolley Square, LlC, (the "Developers") have proposed to develop a commercial/entertainment center anchored by a ten + screen movie theater, restaurants and an upscale motel consisting of approximately 125 rooms on a ten acre site west of Woodlawn Avenue between E and F Streets. The site includes the City's public works yard (which will be relocated), the E Street Trolley Station site (the station is reconfigured as part of the proposal). Both the Trolley Station and public works yard fall within the Town Centre II Redevelopment Project Area, The site could potentially be expanded to include several privately-owned parcels along Woodlawn Avenue which are not in the redevelopment area. Maior Neqotiatinq Issues The Developers have requested that the Agency enter into a SENA which would allow them to move forward with planning and property acquisition efforts. The SENA proposed by the developers is provided as "Attachment A" for review by the Agency. Staff has met with the Developers to discuss the project and major terms and conditions for the SENA. The agreement submitted by the Developers raises issues and concerns which require further consideration and direction from the Agency. The major issues are discussed below. S' ~-( - . Page 2, Item % 5" Meeting Date ()9f1-7t9õ I 0 (, i q l,; Relocation of the Citv's Public Services Yard The Developers have requested the City commit to relocate the public works yard within one to two years to expedite redevelopment of the site, Although there may be some flexibility in this schedule, the only hope of relocating the yard in an acceptable time frame is to purchase an existing facility. The City is currently in the preliminary stages of negotiating for such a facility with SDG&E. However, it is not possible at this time to predict when these negotiations will be completed or how soon the existing yard can be relocated. The "best" case scenario, assuming no environmental work, no conditional escrows, no tenant improvements to retrofit for City purposes, is two years, A more likely scenario is in the three year range which may not coincide with the developers' schedule. The developers indicate that the project will probably require a subsidy from the City/Agency based upon total project development costs including the cost of acquisition of privately owned parcels. Any subsidy will most likely require a reduction in the sales price for the public works yard, This may be problematic since the City was anticipating the availability of disposition proceeds to be used towards purchase and/or development of a new corporation yard. Aoencv/Citv to Deliver Trollev Station Site The Developers have requested that the City obtain (through purchase or other means) and deliver the Trolley Station site. Although the City and County jointly developed the Trolley Station, the property was actually acquired by the County and the title remains in the County's name. If the City were to offer to purchase the County's interest in the site, the County would be eligible to receive, minimally, the $3 million they have invested in the station. This would add substantial City/Agency cost to the project or increase the subsidy needed by the Development. It should also be noted that, in the Developer's current proposal, Trolley Station parking is substantially reduced (the Developer is relying on offsetting uses to reduce the number of required parking spaces), However, this has not been presented to MTDB. In addition, State Department of Transportation grant funds totalling $961,000 were used in the project to provide parking and any reduction in spaces may require their sanction or partial repayment of the grant. Economic Benefits/Cost of the Proiect The Developers have estimated annual revenues to the City and Agency from project at $882,000 (see Attachment "B" for a breakdown of revenues). Revenues include property taxes, transit occupancy tax and sales taxes. However, it should be noted that: The proposed multi-plex theater will compete with the two CinemaStar theaters (16 screens) located in downtown Chula Vista; The proposed restaurants will also compete with downtown and Bayfront restaurants, although more customers may be drawn to the area in general; The proposed hotel will be on the site of an existing hotel which will have to be acquired and demolished. The "net" gain in revenues may well be less than projected in Attachment" B". ~ o/~ -~ ~ Page 3, Item -re-- . Meeting Date ~ /0(1 ¡qL, The land assembly required by the project will result in City costs including acquisition of the Trolley Station site from the County; possible reduced sales price for the corporation yard site or other form of subsidy; soils groundwater testing and potential cleanup costs; any relocation costs; possible reimbursement of State grant mOnIes. The Developers have requested that the Agency provide up to $150,000 for "front end" planning and property acquisition costs. This includes contract planning expenses, property purchase options, MTDA and County processing costs, These funds will be repaid by the Developers if they breach contract, If the project moves forward, these funds will be repaid at the date of issuance of the first Certificate of Occupancy and delivery (by the Agencv) of the properties needed for the project which lie outside of the redevelopment area. This presents some risk of recovery of these funds to the Agency. Site Planninq Issues Site planning and design issues include the long, narrow shape of the site which is not ideal for commercial development; problems with integrating parking for commercial uses with Trolley Station park and ride activity; anticipated traffic problems getting traffic into and out of the site without disrupting flow on E Street; and signage/identification which will require freeway visible slgnage. RECOMMENDATION: In consideration of the city's current fiscal needs and the potential for redevelopment of the public works yard/trolley station site, the city's goals would appear to include the following: maximize revenues from sale of the public works yard site; minimize City/Agency risk and expenses maximize development density by taking advantage of the unique proximity of this site to mass transit and highways, as well as the Mid-Bayfront redevelopment area; maximize property, sales and use taxes to the City/Agency; avoid duplication/competition with existing businesses and facilities near the site. While the proposal addresses revenue goals, it is not clear that the project, as proposed, is the highest and best use of this site for the long-term benefit of the City. The project appears to be costly to the City/Agency in terms of discounting the corporation yard land sale, acquiring and delivering the trolley station site, testing soils and groundwater, and providing up front planning, acquisition and processing funds to the developers. Finally, staff is currently exploring the development of a similar project in the Bayfront (vicinity of J Street) which promises to provide greater benefits with considerably less risk to the City. The Agency has several options to consider. First, the Agency can accept the business terms submitted by the Developers, authorize staff to complete and bring back the SENA. This option will make the project a high City priority including fast tracking relocation of the public works yard. ¿) ~-3 5' Page 4, Item ...¡..e- ( Meeting Date 99/1'1/96 10 I! q& Second, the Agency can direct staff to continue to negotiate more favorable business terms which will maximize proceeds for the public works yard, minimize Agency up front expenses and allow greater flexibility in scheduling relocation of the corporation yard site. Finally, the Agency can defer further negotiations on the project until more information is available concerning the status of the public services yard and future development on the ßayfront. This option will also allow the opportunity to determine what land uses would be most complementary and beneficial to the City on this site. In light of the information presented above, staff recommends that future negotiations proceed only if the developers accept business terms more beneficial to the City, including the following: 1. Any future negotiations on this project will be with the clear understanding that the City will receive fair market value for its public works yard. 2. Acquisition expense for the Trolley Station site will be borne by the Developers. 3. The City/Agency will not provide advance planning and property acquisition funds. 4. The City/Agency will keep the Developers apprised of the status of current negotiations on acquisition of a new public works yard site, but cannot guarantee a schedule at this time. FISCAL IMPACT: The Developers have projected annual revenues from redevelopment of the site totalling $882,000, Attachment "ß" provides a breakdown of these revenues, Staff considers the Developers' estimate to be overstated based on the following: Although the Developers' estimate nets out property taxes currently received from the project area, estimates of taxes after redevelopment include development outside of the redevelopment area which would provide less than 1 % to the City. The Developers' estimate does not account for current transient occupancy taxes accruing from the existing hotel. The estimate does not consider impacts to existing businesses in the area. The estimate does not consider the amount of subsidy which will be provided by the City/Agency. Finally, City and Agency costs have been implied, but not identified, These costs cannot be specified until land acquisition costs and remediation costs are known. However, subsidy required by the project will likely require dedication {rather than sale} of the public works yard site and risk of $200,000 in up front planning/testing expenses for the Agency with no guarantee of reimbursement. Ifk! M,\HOMEICOMMDEV\STAFF.REP\O9-17-96\""",,11.113 ""10mb,, 12. 1996 ",""m}] S- <¡.fJ-1- - . ATTACHMENT A PETERSON & . PRICE EDWARD F. WHITTLER A PR.OFESSIONAL COR.PORATION TELEPHONE MARSHAL A, SCARR LAWYERS 619-234-0361 MATTHEW A. PETERSON - LARRY N. MURNANE 530 B STR.EET. SUITE 2300 ~ SAN DIEGO, CALIFORNIA 92101-4454 FAX °' COUNSEL (619) 234'4786 PAUL A. PETERSON FILE No. August 8, 1996 3025.036 "r.., " i r-_ê------, i Mr. Chris Salomone i AIJG 8 1996 i Director of Community Development CITY OF CHULA VISTA L__---_~ 276 Fourth Ave. ---- .. -'" ----- Chula Vista, California 91910 Re: E Street Trolley square Dear Chris: Attached please find the revised strikeout/underline version of the Exclusive Negotiating Agreement ("Agreement") for the above-referenced project. It is our understanding that the City Council will set priorities on various projects at the Tuesday, August 20, 1996 meeting. We would request that this Agreement be presented to them at that time for their approval. You have also asked us to provide you with a list of items which must be resolved within the very near future for the project to proceed. The following is a summary of that list: 1. The City must be in a position to deliver for redevelopment purposes the County of San Diego Parcel. 2. The City must be comfortable with its ability to condemn properties outside of redevelopment boundaries in the event that condemnation becomes necessary. ?j:--£) :';- 6-:) - . Mr. Chris Salomone Director of Community Development August 8, 1996 Page 2 3. The City must immediately prioritize and work out a timing schedule for the relocation of the Corporation Yard. 4. The environmental testing must be completed to assure that the site is clean and developable. We look forward to discussing these items with you shortly. Sincerely, PETERSON & PRICE A Professional Corporation ~t~~ cc: Glen Googins, Esq., Deputy City Attorney Fred Kassman, Redevelopment Coordinator William C. Tuchscher James A. Clarke g' \WP\JO25\O36\sa1omone ,1 t2 ~- ~ !d- ~ (p - . DRAi-¡ SEMI-EXCLUSIVE NEGOTIATING AGREEMENT WITH "E" ST. TROLLEY SQUARE, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY FOR A SHOPPING CENTER WEST OF WOODLAWN BETWEEN "E" ST. AND "F",ST. This AGREEMENT is entered into this ---- day of , 1996 for the purposes of reference only, and effective as of the date last executed by the parties, by and between the Redevelopment Agency of the City of Chula Vista, California, a political subdivision of the State of California, ("Agency") duly created, established and authorized to transact business and exercise its powers under and pursuant to the Community Redevelopment Law (Part I of Division 24 of the Health and Safety Code of the State of California), and "E" St. Trolley Square, LLC, a California Limited Liability Company ("Developer"), and is made with reference to the following facts: THE AGENCY AND DEVELOPER HEREBY AGREE AS FOLLOWS: I. Parties A. Nature and Offices of the Developer. The principal office of the Developer for purposes of this Agreement is: 5925 Kearny Villa Rd., Ste. 100 San Diego, California 92123 1. Developer's Representatives Developer has designated the following person or persons who will negotiate the Disposition and Development Agreement (DDA) with the Agency and who will engage in the activities necessary to determine the feasibilities of the development of the Site: - 1 - Au9ust 8, 199. -ló r, 6-7 - , (a) James A. Clarke SUNBURST HOMES CORPORATION 5925 Kearny Villa Rd., Ste. 100 San Diego, California 92123 (619) 565-4400 (b) Matthew A. Peterson, Esq. PETERSON & PRICE, APC 530 "B" St., Ste. 2300 San Diego, California 92101 (619) 234-0361 B. Agency's Offices and Representatives. The principal office of Agency for purposes of this Agreement is: Redevelopment Agency of the City of Chula Vista Community Development Department 276 Fourth Avenue Chula Vista, California 92010 (619) 691--5047 1. Agency's Representatives Agency has designated the following person or persons who will negotiate the Disposition and Development Agreement with the Developer and who will engage in the activities necessary to determine the feasibilities of the development of the Site: Chris Salomone, Director of Community Development Da.id. Gugtatl!on, .1\.,!'H!igtantCO( lthUl.itl'J)ê.êlopl\,,~nt Director Glen Googins. Deoutv Citv Attornev II. Definition and References A. Site: The property which is the subject matter of this Agreement is approximately 10.13 acres of land consisting of two (2) separate parcels of land identified by the following San Diego County Tax Assessor Parcel Numbers and, owner, aÙd~t:~IiÞM ìht~ pl.ð.I!(\1'! ofimpleniêhtatiÓIi, as follows: - 2 - August 8, 1996 ~ s-~ - . PI,lI.!fê I. ~ Citv Parcel - Approximately 5.98 Acres 567-031-27 (City Corporation) Yard contiguous Parcels Tipton Morgan Petel Sachs SDA&E PI,lI.!iê II. Non-Agencv Parcel 567-031-26 (County) - Approximately 4.15 Acres ContiGuous Parcels Tipton Morgan Pete I Sachs SDA&E Streets. allevs. rights of way. other Dublic Darcels in the City of Chu1a Vista, County of San Diego, St;ate of California and legally described as set forth in Exhibit "A" ("Site"). The Site is within the boundaries of the Town Centre t+t LIYl Redevelopment Project Area. The Site is generally shown on the Conceptual Site Plan attached hereto as Exhibit "B." B. Project: The Project ("Project") as used herein shall be the development of the Site with a. transit oriented retail~ restaurant, and entertainment oriented shopping center consisting of approximately 165,000 square feet of community serving retail, restaurant and entertainment and visitor serving uses, with &65--- on-site parking spaces, including 25 non-exclusive park - 3 - August 8, 1996 ~{~fI -tif ~-q and ride spaces, a community visitor center and other amenities as hereinbelow required. III. Recit!\.l15 Purpose of Agreement ~ The purposes of this agreement ~~ .tone90tio.te are to (1) establish a framework for the negotiation of a Disposition and Development Agreement for the project that will define and develop a "project" for the purposes of fTf environmental evaluation and certification, ~ which shall be subjected to CEQA review and evaluation at a later time; and (2) dete:c."ihihlj determine the extent to which this Project is ..eCe15~o.~y fo.ctl,e publi~ ljo8d, feasible in the public interest consistent with the applicable redevelopment laws and desirable for the implementation of the Town Centre II Redevelopment Proiect. and the extent to which the various parcels herein described are necessary for the project. City and Agency each retain~ full discretion to review the staff-developed plan for public necessity and for environmental impacts, and to make or impose any mitigation conditions or adopt any overriding considerations which are at that time appropriate. IV. Duty of Staff and Developer to Negotiate DDA and Present Project to Agency Board During the "Negotiation Period" as herein defined, Staff of the Ci tv and Agency (" Staff") and Developer shall negotiate diligently and in good faith to prepare and agreement ("Disposition and Development Agreement", or alternatively "DDA") to present to the Citv Council and Agency for ^gehc:y Doa~d review and approval ("DDA Approval") which DDA shall, among other things, contain and not be inconsistent with, the following terms and conditions contained in this Subsection A hereof below. The inclusion of the specific terms set forth below shall not be deemed to be acceptance of such items by either party prior to the execution of a Disposition and Development Agreement. Instead, these are listed as standards to measure compliance with the duty to negotiate in good faith as between Staff of the ~ Agency and Developer. The acts of the Agency, City, or any of the boards, commission or committees of either the Agency or the City are obligated to act in accordance with - 4 - August B, 1996 /- ,'Ò .5 _(0 +- - . these standards, but are entirely free to exercise a~y and all discretion with which they are vested by law or charter. A. Basic 'Obligations of DDA 1. Disposition of the Site; Price Commits the Citv and/or Agency to sell or otherwise transfer to Developer that portion of the Site, if any, owned or acquired by, the ~ and/or Agency, and commits the Developer to acquire or accept such Citv and/or Agency parcels at such prices as may be agreed upon by the Developer and Agency. 2. Approval of Site Configuration Gives the Agency the right to approve the further continuation of the rights and duties of the parties under the DDA if the entire Site cannot be finally acquired. References herein to the Site made in a temporal context after Agency approval shall be to the site as approved by the Agency, even if fewer parcels than contained in the entire Site as herein provided. 3. Development of the Site The Developer shall use its best efforts to improve the Site, in a single construction effort, or, " at, Dêv.elopêr '!!option,iuL, opl.ases.Þhll.ðêI of whi<::hllhallöc:c.4J:,iuu..ediatel.yupØntha.l );>ö.d:.ioh of ,the3ite conSi!!tingofFl.asê I parcels, . and lillY phasing of the proiect shall be negotiated bv Agencv and Developer and be incorporated into the DDA. Phase II.. of' "bleb~!!hall . occurwl.eh . title therêtO,i!!. acquiredupoJl tl¡atpðrt,iol.of tl.,e,$itê çoMI!! LIng ofPhas/i!upaJ:c:el!'!i. wU;heitMr t,he The Project shall be developed in a form as approved by the Agency Board, or a reasonably similar variant of the Project as approved by the Agency Board either of which ("Approved Project") shall incorporate the following: - 5 - August 8, 1996 -7(;) --rr 5""-(( - . a. Complies as much as economically, aesthetically, and architecturally possible with the design standards for commercial development in the Town Centre Redevelopment Project Area; and, b. incorporate.!! A design that minimizes to the extent possible, the traffic circulation and parking problems that the Approved Development can be expected to produce in accordance with applicable Citv standards unless otherwise aareed in Citv's sole discretion; and, c. Subject to further Design Review and Agency requirements, £equirel!Pêveloperto COhl!tru<:;t the approved project shall include the following: the Project as used herein shall be the development of the Site with a transit oriented retail. restaurant. and entertainment oriented shopping center consisting of approximatelv 165.000 SQuare feet of communitv serving retail. restaurant and entertainment and visitor servina uses. with on-site parking spaces. including 25 non-exclusive park and ride spaces. a communitv visitor center and other amenities as hereinbelow reQuired. including (l) Restaurants. At least two restaurants shall be located within the Project Site (2) Pedestrian Link. A strong and direct pedestrian link between the MTDB "E" St. Trolley Station and the Site (3) Traffic Circulation Loop which provides for an integration between the bus transit and the MTDB "E" St. Trolley Station and pedestrian connection. (4) Circulation and Pedestrian Improvements 1"a ¡"a¡d,ê:r acceptable to Ci tYT and - 6 - August B, '996 =-,/8 1::f)-.. $'-/;).. - . Agency, subject, however, to a cost reimbursement from subsequent developers benefiting, in the judgment of the City, reasonably ~X~1:ct$ed, under Map Act. This is a sole discretion tvpe of decision from such Improvements. Developer shall use good faith business efforts to provide the following: (i) Limited Service Hotel consisting of approximately 80 - 100 rooms. 4. Developer's Obligations Regarding Single Construction Effort or Phased Construction Effort. Regardless of whether the Developer improves the site in a single construction effort or in two phases, the Developer shall pursue a full~ e>.pahdecl. Ct'mler Ela!, approvals for the Project as a whole through the City/Agency's environmental and developmental processing, by preparing architectural drawings and submitting the entire Development Plan to design review. Anv phasing of the project shall be negotiated by Aaency and Developer and be incorporated into the DDA. H thðbê.~loper choo.!!!e.!!!tl.epl.a.!!!edproj o!ctoptj,()n ai.dhøl:lnot COhu"êloced con.!!!Lx;uction of..]"loli.!!!ê XI withih 16 mo..t!,s of con¡plêtiOh ofco..structiohof P¡,a1!leJ,or , . wkiche.~j:;pct;:l:lr.!!!~oO¡'er, -:"¡,ì!'opt!ì'Vêlope.t will, aLthe £J.lldiscretio....OLt!,e Agenc,}',do the fo110,,1.,9. d. R~leð.!!l~ tl,e AgenCy iron, 11101' obligatioi,.!!! to fu.LLI,e.L loeg-otil1tePl.ðse II develop",e!.t wit!. t.h~ De~eloper. b. Pr6videto the Age..c1' tit hocogL all the þlarti'J and entitl !!trlêj,t sêcurêd on Pha.!!! !! IT; c. prþ.ide tot¡,eAgêt.c:¡¡ at I'IOcöst all t;:On,pleted .!!!tudJ,.e.!!!, . report.!!!, $<1;( ~e1' 1:1 d¡¡d otheJ: informatiol, Pêi:tihêl,ttO. thê.l1cquisiti6n and - 7 - August 8, 1996 ~ S- -13 - , dav~loprr.alitofFhð.!!e . I I. 3u,cih..¡uðtäl.~lð Wo"ldincl\:id,e,butl,otbe Hn,i:tedJ;,('J,tJ.lle reÞo.d..!!, .:.þ.I:oþe.rL, apþ:ca';'/!.alð,1.ð<.ðrdÞ4/!.Waste $tud,:i.e.s, ..9IÌ:CJlecl,¡,icð.1 : /!tudiel$,.J\I/f^~l$u~~eY$, ðJ.d.£'aaÚb:i.lHl and. lua~ketih9~!!t~dAe$. In tl..<!'e,.~"t that the AgêhC,.. $êl!i\cj;.$4no,"h¥!: ¡fevêlope:r:.to:..l$ücc.eed.:. DêvêloMk....(PßIJ. ....~I.PhM/! :U.!>fthé.fto}êct, Devêlope.t";¡l,þ~ tðlJ\iþl:lX'ð!!dbytl,ð AgeM.I'forit!!(:k,¿tI~'aÏ'\t~.d, c::o"t.$ fo:rl;ny of Ll,e :abov.e n,/!n.:tiQt\ed!!t.nd,.4~I$, re.pörll$, .!'!ürve,1$ ð.hd otl,er infoÚ"l.\.tiol, pro. idea tóthe. Mb/!equêhl de~eloperb1'. the Agêl.c:y. d. Frov':'de to. thê.. Agehc:\, coplel$ ..ofall. pl1rcI,asa o!fe;re¡cteuged.b:\, the De~elope...~lQ:!'J.aseII prOpUll' OWherl$ dud copie.5 Qf.ðll Codl,tero!!..,;;:/! .received !.ton,. n,M!eII prQpe;;:t:\' Öiô¡.e:r!!. e. Fro.:- ide to tl.e Ager.c}l tl,e right to ðucce.ed the Develope;r iu ouy pu;rcho.se opLioh!! QX' e!!CrOWð the Developer I,a!! obtai1.ed on.. Fhaðe IL.p;r-op~;rtiel3.ð.nd /!ell to the Agehc:\, al<l' Pl¡I:\!!!!Ilp:ropertiel$ . acqttÜed1:'>ytl.e P/!velQper. 3uch 3uccel5.!!ion. or .!!alel5hall be atthê ðan,ep:rice LI.e. Developer þaid ..f<::>r...!!tt(:h opL":'ou.5, : ~s<:row.s, OL purcJ,a3~/!:. 1;. provide Agency w":'ll. ð.u}l ~XëCQtëd Lettex!!of ¡n.t-ant witJ.:rët-ailer!! íOL te¡~lu.cy.::..<::>f:.l?hð.ðe ~ 9- ^g~êê to !!~bl$êqueht, reaMu~l;>lê,ÇrOI$.$ easên,,"!l'\t/5WiLl. . tin'! Agency OJ...A,gêl.CY!!êl~çt:éd Pe~êloper.4,!1nece!!/!or,to the developmel,t6f pha!!/'!. 11 . .iJ.an,al,n.er wl.":'c1, il5phY8fe:a1.1y integ;r-ated.wi.th PI.Me I. In the event that Agency either cannot or does not deliver to Developer the Fha8e:LL non-Aaencv and contiguous Parcels, the time limits as contained within this Section shall be tolled, O;r- at Develope;r-'s option, this Ag:teeluêl.t the DDA can be terminated. - 8 - August 8, 1996 =l -ty s-,( 5. Schedule of Performance Sets forth a schedule or time table prepared jointly with the Agency Staff for the accomplishment of identifiable developmental milestones, including a time-table for the relocation of existing third party.owners and tenants on the non-Developer owned parcels. Agency Obligation to Test the Site Within 60 days of the execution of this Agreement, Agency at its sole cost and expense shall conduct an environmental Phase I study on the Agency Parcel, and include soils testing to the north westerlv extent of the Woodlawn Ave. rightbof-wav. Staff shall utilize good faith efforts to contact the County of San Dieao to obtain consent to do testing the Non-Agency Parcel. Such Phase I study shall include a soils test in the City right-of- way along the entire length of Woodlawn and the southwest corner of Woodlawn and "En St. At Citv's optionL the results of this analysis shall be provided to Developer for its review and approval. In the event that Citv does not share the results of the testing or if Developer does not approve of the findings in the Phase I report, Developer at its option may terminate this Agreement. Anv negotiation and liability concerning cleanup will be negotiated as part of the DDA. The Citv hereby agrees to share all environmental documents in its possession as of this date. 7. Security for Developer's Performance Secures Agency of the Developer's performance under the DDA while taking into consideration Lender's need to be secured to the extent of their financial commitment, by means, at the Agency's discretion, of a conveyance of a conditionally defeasible fee with right of reverter upon non- performance of the conditions of construction - 9 - August B, 1996 ~ S-./~ after extending a right to cure to Developer's lender, or by a performance trust deed securing the performance of the DDA after extending a right to cure to Developer's lender. 8. Tenant Approval Right Restricts the Developer from leasing or selling to tenants or purchasers proposing to occupy greater than 15,000 square feet of net useable floor area until the Executive Director of the Agency has approved the tenant, which approval shall only be withheld upon a finding, reasonably determinedT mo.debytl,e Agê1"l.C!¡>/1to. public heo..ring ,notice of wl,icl,. il5þroiridedto< tl,ê Developer, that the proposed tenant or purchaser is incompatible with the commercial mixture of tenants present in the market area of the project. Failure of the Executive Director to have approved or disapproved a prospective tenant after 30 days written notice I.I.l,d tl.e.. pro vi!! ion .ofSi:1£ [';'c;;.euL ihforn,o.tion /1.3 n,/1l' be re~~e!!ted shall be deemed to be an approval of the prospective'tenant. 9. Initial Use of the Site Restricts, for a period of minimum of 10 years after the completion of Phase I improvements ~ a time as determined bv DDA, the use of the Site to only those uses initially approved or modified by the Agency Board and Developer as the Project those uses being retail commercial businesses acceptable to the Agency within its approval rights in Paragraph V.A.? 10. Economic Risk Provides that the Developer absorbs all economic risks associated with the completion of the Project except herein set forth. It is the intention of the Parties that Developer shall pay the full cost of all improvements to be constructed on the Site including the cost of all - 10 - August B, 1996 ~-Jc' ...,.<~ ,r(ç - . normal City fees and permits applicable to completion of the proposed improvements, unless such fees are waived in the DDA. The parties agree and acknowledge that it is the intent of the parties that all reasonable Project costs, including but not limited to design, construction and development of all on-Site and off-Site public and private improvements, appraisal fees, environmental and other consultant fees, whether incurred by the Developer, the City or the Agency, shall be the responsibility of the Developer with the exception of any cost subsidy as provided for hereinafter. 11. Right to Negotiate for Cost Subsidy Provide that Agency and Developer agree to meet and confer, and to negotiate in good faith with each other, and from time to time throughout the ( terms of this agreement, the provision, in one form or another, to Developer of a subsidy which \ may be necessary or appropriate in order for Developer to achieve a reasonable rate of return l, on its investment and in light of the significant public benefits which will come to fruition as a result of the proposed development ("Cost Subsidy"). a. Condition Precedent to Negotiating. Prior to requesting a Cost Subsidy from the Agency, Developer shall demonstrate in a commercially-acceptable standard, the facts and circumstances that justify the duty to meet and confer for a Cost Subsidy. b. Form of Subsidy. The form of the subsidy shall be completely open to discussion, and may include, without limitation, consideration of the Agency transferring to Developer the Agency controlled parcels, and selling the NonbAgency owned parcels to Developer at a significantly reduced cost - 11 - August 8, 1996 s- .~.. ('7 . / ~ . - consistent with § 33433 of Health & Safety Code. 12. . Restrictions Against Discrimination Contains the constraints against discrimination in the form and manner required by state redevelopment law. B. Retention of Discretion to Approve the Project and DDA It is anticipated that the Project and the DDA providing for its implementation will be presented to the City Council and Agency Board for approval. The Parties understand that the Çity Council and the Agency ~ are each reserving the right to exercise its discretion as to all matters which it is, by law, entitled or required to exercise its discretion, including, but not limited to the following, which shall occur prior to DDA approval: 1. Approval by the Agency of the final Project as contained in the DDA. The parties understand that the Agency has the complete and unfettered discretion to reject the DDA without explanation or cause. The risk of loss of all processing, design and developmental costs incurred by the Developer prior to DDA approval shall be absorbed entirely by Developer except unless expressly. assumed, by the terms of this agreement, by the Agency. Developer is not required to provide Project construction design and plans prior to final DDA approval. 2. Review and approval by the Agency of all discretionary findings and conclusions. The duty of the Agency to dispose of its parcels located within the Site shall be conditioned upon the successful review and approval of all necessary findings and conclusions which the Agency board is required to make, including all environmental findings, plan consistency findings, zoning approvals, variances, conditional use permits, street vacations, etc. As to any matter which the - 12 - August 8, 1996 5- 1<:[ -¡.( {) (~ Agency may be required to exercise its unfettered discretion in advancing the Project to completion, nothing herein, nor to be contained in the DDA shall obligate the Agency to exercise its discretion in any particular manner, and upon doing so, it shall not be deemed to constitute a breach of Agency's d~ies under this agreement. C. Exclusive Nature~~reement The Agency agrees, for the duration of this Agreement, not to negotiate with any other person or entity regarding the acquisition and development of the Site except for those owners or tenants of the Site to whom Agency is obligated to extend owner participation rights. D. Negotiation Period The term of this Agreement shall be 360 calendar days from the date it is approved and executed by both parties (the "Initial Negotiation Period"). At the end of the Initial Negotiation Period, the Executive Director, on behalf of the Agency, is authorized to extend the term of this Agreement for up to an additional 180 days (the "Extended Negotiation. Period") if at the end for the Initial Negotiation Period the parties have not yet entered into a Disposition and Development Agreement, the Agency has not exercised its right to terminate as herein provided, the Developer concurs with such extension of the negotiation period, and the Executive Director has determined that there is a reasonably likelihood that the Developer will agree to terms which the Agency staff will be able to recommend to the Agency. 1. Termination Due to Impasse Notwithstanding the nominal Initial or Extend Negotiating Periods hereinabove set forth, either Party may terminate this Agreement without breach if it has, despite the exercise of good faith, not been able to reach agreement on the terms and conditions for a Disposition and Development Agreement. - 13 - August Bo 1996 S- /9 ~;Gf? - . 2. Termination Due to Breach Notwithstanding the nominal Initial or Extended Negotiating Periods hereinabove set forth, either Party may terminate this Agreement if the other Party has materially defaulted in its obligations herein set forth, and the terminating Party has provided defaulting party with written notification of such determination, and the defaulting party has refused to cure same. The written notification shall set forth the nature of the actions required to cure such default if curable. Defaulting party shall have 30 days from the date of the written notification to cure such default. If such default is not cured within the 30-day, the termination shall be deemed effective. For purposes of this paragraph, the parties hereby acknowledge that time is of the essence. v. Duties Pending Agency Approval of DDA Prior to the presentation of the Project and DDA in a condition that meets with the Staff's approval ("Staff Sponsored Plan"), the Parties shall accomplish the following: A. Environmental Review Developer will use good faith and best efforts to ?btain the following result: cause such environmental documentation and review of the Project as may be required by state law ("CEQA Result") to be prepared and presented to the City Council and Agency Board for review and approval at the time the Citv and Agency approves the Project. B. Funds Provided to Developer to Assist with Development of Expanded Center Plan To assist the Developer with the development of the Project, the Agency will participate in costs incurred by the Developer for processing of Project Plan in an amount not to exceed $150,000. Payment will be made to the Developer within 30 days of invoice submission upon approval by the designated Agency representatives of documentation submitted by the Developer - 14 - August So t996 S ~. ¿<:.Ó .1i....,..,ß;éÌ - . verifying expenditures for such incurred costs. Participation by the Agency may include, but not be limited to: Environmental processing; Costs of the planning firm contracted to the City of Chula Vista and paid for by the Developer to process the Project; Monies paid to owners of properties within the project Site to secure purchase options or escrows; and Any applicable MTDB and County of San Diego processing The Development will have the following obligations to repay the Agency for the funds so provided: ~~ If negotiations produce an approved Disposition '--- ~ and Development Agreement, the Developer will make full repayment to the Agency at: 1) the issuance of the first Certificate of Occupancy; and 2) the Agency delivery of the non~Agency Parcel. ~ --------- ----- 2. If negotiations fail to produce a Disposition and Development Agreement due to breach of this Agreement by the Developer, Developer will make full repayment to the Agency at the point of the breach. 3. If negotiations fail to produce a Disposition and Development Agreement due to breach of this Agreement by the Agency, the Developer will have no repayment obligation. ~~) If negotiations fail to produce a Disposition and ( ..- / Development Agreement, even if both parties act in '_/ good faith in pursuit of this Agreement, the Developer shall not be obligated to repay the Agency any of the funds extended upon termination of the Agreement. - 15 - August 8, 1996 s-~ / (¡"tt ';;t / C. Determination of Economic Viability of Project Developer shall submit a preliminary financial Project proforma to J\g~"cÎlgênê"a¡cOQ'.'!!êJ. Staff for Agency review and' evaluation, which shall, to the maximum extent permitted by law, remain confidential. Said information shall not be copied, and shall be returned to Developer after Agency has completed its use thereof. D. Voluntary Acquisition of Site Developer will use good faith and best efforts, at its sole cost and expense, to obtain the following result: voluntarily acquire fee title to all parcels of the Site that are not currently owned/controlled by Agency and/or County ("Developer Acquisition Result"). E. Extension of Good Faith Offers In the event that Developer is unable, after the use of good faith and best efforts, to achieve the Developer Acquisition Result, Agency will attempt, at the cost and expense of Developer subject to the participation agreement reached with the Redevelopment Agency, and with funding to be provided in advance by Developer, to obtain the following result: voluntarily acquire fee title to all parcels of the Site that are not owned/controlled by Developer ("Voluntary Acquisition Result"). F. Duty to Conduct Hearing on Necessity In the event that the Developer Acquisition Result is not obtained and the Voluntary Acquisition Result is not obtained, despite the exercise of good faith and best efforts, the Agency will schedule and deliberate upon the acquisition of all of the non-Developer owned parcels adjacent to the Site by the exercise of eminent domain. Nothing herein shall obligate the Agency to exercise eminent domain except as it deems consistent with the requirements of law. Agency shall retain full discretion to reject the use of eminent domain for any and all reasons. However, in the event that the Agency shall, after hearing and deliberation, determine to exercise the powers of eminent domain, and in pursuit thereof, acquires fee title to all or some of the non-Developer owned parcels in the Site, that result as to such - 16 - August 8, t996 5" ~d-d--.. ßE---::~ parcels shall be referred to herein as the "Eminent Domain Result". In the event that none of the Developer acquisition results, the Voluntary acquisition results, and the eminent domain results are accomplished, City/ Agencv or Developer may at its option terminate this Agreement. 8. Itu'::lI1SIÓI. O!EI.tliê5itê, in 'fOWl. Cêhtrê Redec"êlopn,¡!Jlt Project. Area Age,¡.q"t,lJ., ,!ilt.tt!l8~JeçQ"tal.d~expeb!lê,l:;\!lê99~d;~,j,þb. atld bêS.t,èff"i'.;~,' 'oii thotltboll<þron,!sil.9tl.eirdtlty totl!le i ndependel..t....dJ.!lç'tetiGl...a.!l.,..".ð...~...inal...be...requi r edb.l... 1 aw.,'...tÿ...ob.1:-.ái!. tI.e fGl1owiI'9rê!!lllt.1:hCl\1d~tI~êêhtIrê SJite ';"JLo,q.êLê.i.,ê"lLc,r}l of L],e'Fown Ce1.treRêdê¥el6p",~..L:F...ojecL A...eð.. ("I..cJu..!!';'Ò.. Rê!lt:1l t"). ~ Owner Participation Rights Agency will, at its sole cost and expense, extend owner participation rights to all persons entitled thereto by law, and in connection therewith, Agency will retain full and unfettered discretion to extend owner participation rights to current property owners in ,the manner required by law, and to consider and evaluate any owner participation proposals submitted. ~~ Sections 33431 and 33433 Public Hearings Agency and City shall hold and conduct such Health,and Safety Code Section 33431 and 33433 public hearings as may be required by law to be held and conducted, and to thereat exercise such discretion as they may be required or entitled to exercise by law. VI. Forbear Development under Current Entitlement Developer shall not commence the construction of any parcels within the Site owned or controlled by the Developer until this Agreement has been properly terminated either as a result of a substantial breach by the Agency, expiration according to its terms, or due to impasse despite the exercise of good faith and best efforts to do. -- 17 - August 8, t996 S- - .).3 ðL--ç) .3 A. Other Enforcement Mechanism In addition to any and all other remedies the City may have to enforce the terms of this agreement, the City is hereby authorized to withhold building permits for construction if Developer is in violation, breach or default of the terms of this agreement. The parties agree that the City's decision, if exercised, to withhold building permits under the provisions of this section, may be reviewed by the proper Superior Court expeditiously by application for writ of mandate. B. consequences of Declaration of Impasse If Developer shall have acquired any of the Non-Developer Parcels either by voluntary acquisition from the property owner, or from the Agency, and this agreement is properly terminated without agreement as to a Disposition and Development Agreement, the Agency shall have the option, notice of exercise of which is to be given within 120 days after receipt of written notice of termination, to acquire the Non-Developer parcels for the cost incurred by Developer in its acquisition, plus interest at 10% per annum prorated from the date of Developer's acquisition to ~ate of transfer of fee title to Agency. C. Developer's Findings, Determinations, Studies, Reports and Financing As requested by the Agency, from time to time, the Developer agrees to make periodic oral progress reports and periodic written reports advising the Agency on all matters and all studies being made to the extent that they do not include confidential matters. All such matters shall be deemed to be the joint property of Agency and Developer, and may be used by either Party without reimbursement to the other. D. Agency Public Hearing If the negotiations culminate in agreement ("Memorandum of Understanding", or "MOU") between the Staff and Developer as to the terms for a Disposition and Development Agreement, and is signed by Developer, such an agreement shall deemed to be an irrevocable offer to the Agency to contract on the terms of the MOU for a period therein provided for, but at least 30 days, but - 18 - August 8, 1996 S-2Ý ~~ shall not become obligatory upon the Agency or become effective until after the agreement has been considered and approved by the Agency after such public hearings and such procedures as are prescribed by law. E. Real Estate Commissions The Agency shall not be liable for any real estate commission or brokerage fees which may arise here from. The Agency represents that it has engaged no broker, agent or finder in connection with this transaction, and the Developer agrees to hold the Agency harmless from any claim by any broker, age.nt or finder retained by Developer. VII. Execution of this Agreement By its execution of this Agreement, the Agency is not committing itself or agreeing to undertake any activity including but not limited to the approval and execution of an Disposition and Development Agreement; the proposal, amendment, or approval of any land use regulation governing the Site; the provision of financial assistance for the development of any public or private improvement pertaining to the Site; the acquisition of any interest in real property; the authorization or obligation to use the Agency's eminent domain authority; or, any other activity requiring the subsequent exercise of discretion by the Agency, the City or any agency or department thereof. This Agreement does not constitute a disposition of property or exercise of control over property by the Agency or City and does not require a public hearing. Agency execution of this Agreement is merely an agreement to enter into a period of exclusive negotiations according to the terms hereof, reserving final discretion and approval by the Agency as to any proposed Disposition and Development Agreement and all proceedings and decisions in connection therewith. - 19 - August 8, 1996 5" ;2:;;- .($ ¡~ IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth above, thereby indicating the consent of their principals. THE CITY OF CHULA VISTA REDEVELOPMENT AGENCY By Its Chairman ;Rede1¡elopn,êhtAgehc~ Approved as to form: "E" ST. TROLLEY SQUARE, LLC, A Druce M. Doð9aard CALIFORNIA LIMITED LIABILITY Agehcy Sehe:ral Coun!!el COMPANY Ann Moore. Interim Citv/ Agencv Attornev CITY OF CHULA VISTA By: Date: James A. Clarke Its President Approved as to content: Chris Salomone Executive Secretary CITY OF CHULA VISTA Date: g' \WP\JO25\OJ6\semi-ex,do1 - 20 - August 8, 1996 - ο ~ -."." ~ ~ - , E STREET TROLLEY SQUARE . AITACHMENT B çITY REVENUE ESTIMATES 125 New Rooms $70 Average Daily Rate (ADR) 70% Occupancy Gross Revenues $2,520,000 TOT Revenues to the City (10%) $252,000 Total Estimated Gross Sales $29,000,000 Estimated Non Taxable Food Sales ($3,000,000) Total (Not Including Hotel or Ticket Sales) $26,000,000 Total Sales Tax (at 6%) 1,560,000 Sales Tax Flow Through to City x 25% Total Sales Tax Revenue to the City $390,000 Wm,clTYREV.DOC 6---~;I7 -;b., ;;-1 - --"--..... .- --' .,.. - . Cï:r- '1-96 rUE 14:22 P. 01103 PETERSON & PRICE EDWARD P. WH'TTL£R ^ f'RO~ COIU'OMllON 'l"&ëPHOW' MAR~HAL A. &cARR I.AWYOO 6I~3et WA'I'T"EIN A- PETO.'DN ""'....... ""UR""'" 530 D STREBT. 3UITE <1300 - - SAN DIECO. ~FOR.NIA 9210hl454 fAX, D' COU..'L - 234..øæ "AUL'" PET'.DO. October 1, 1996 FlU! No. TELECOPIER TRANSMITTAL Del~ver to: CITX OF CHULA VISTA Mayq:r Horton and Members of City Council Office; 691-5044 Fax: 585-5612 From; Matthew p.. Pete;l:'son, ,Esq. ,._-, 0, Tota¡ number of pages including this cover: 3 COMMI!:~SI ATTACHED IS OUR LETTER TO YOU DATED 10.1.9& RE: OCTOBER 1, 1996 REDEVELOPMENT AGENCY AGENDA - EXCLUSIVE NEGOTIATING AGRB~IW - "En ST. TR~ .W., '1'BE ORIGINArdfILL FOLLOW VIA U.S. MAIL roR. YOUR FILES. ,- ',.: '-' - TIC.. ee: John GOBS, City Ma~?g~r Office: 691-5031 :,.' Fax: 585-5.612 Chris Salomone, ~irector ~f Office; 691-5047 Community Deve1opmertt Fax: 476-5310 fred Kassman, 'Redevelopment Office: 691-5047 Çoordinato,r Fax; 476-5310 James A. Clarke, Sunburst Corporation Off,lce: 56'=-4400 'Fax: 565-4404 a st. Trolley Sq. Office: 260-2814 c/o William Tuchscher, II Fax: 298-6897 NOTTCI'. 0.. CON"Tn!':N'l'TI\Y,TTY; The paqes aOll\Prising this facsimile transmission contain confi'4e,f1tial and :p.r.iviJ,eged info",""tion from Peterson & Price, APC. ': ,¡,nis information is intended solely for USe by the individual or entity nall1ed above ,as the recipient. If you are not the intended recipient, be aware that any disclosure, copyipg, distribution, or other use of the contents of this transmillllion' is prohibited. If you have receiv<od thio tran"",-b..ion in error, pJ.ease notify the sender by teJ.ephone immediateJ.y so we may arrango to .z:etrieve the translllission at no cost to you. IF YOU DID NOT '.'RECEIVE ALL OF THE PAGES IN THIS TRANSMISSION{ PLEA~E CALL US AS SOON AS POSSIBLE. (619) 234-0361 SENQER'S INITIALS; ~ CLIENT NO.: 3025.036 OCT-I-96 ruE 14:22 P, 02/03 PETERSON & PRICE EOW""'O r. WHITT""" ^ ....o~ONAJ. COIU'OMTtON ToLOl'HONt MARSHAL A. IlCAAR LA WYER5 61&-234-0361 MA~H<WA. PETEROON - .....ny H. MURNANE 530 B STREET. SI.ItTI! ~300 - SAN DI~. ~FOR.NIA 921Qf,4454 FAA 0' COUHaEL (619)234-41$ >AUL"" "£TERBOR fILe No. October 1, 1996 3025.036 v!a ta~ & U.S. mai~ Mayor Shirley Horton and Members of CITY Of CHULA VISTA CITY COUNCIL 276 Fgurth Ave. Chula Vista, Ci!:L.1forn!~ 9191Q... '., ""~" .-. Re: October 1., 1996 Redevelopment Agency Agenda Exclusive Negotiating Agreement ("ENA") "E" St. Trolley Squa;l;e (the "Project") '1" '1'(-'. ., - Dear May~r Horton and Memþérs:of Chula.Vist~ City Council: " We appreciate the two,weeks that you h,,:ye given us to try to work with staff to see if we could resolve the outstanding issues associ~ted with the above-referenced ENA. However, there,appears to be significant obstacles which must be ove;l;come.~for~.w~ ~an devote further resources and effort towards the development of the Project. First, and'{oremost\ the City must prioritize and immedi~tely implement the relocation of the City Corporat!on Yard. Staff has suggested that it may take two, or possibly three years to accomplish. This time frame is beyond w~àt ~e consider the "window of opportunity" for this type of proje<'::t. , OCT- 1-96 TUE 14:23 P, 03/03 Mayor Shirley Horton and Members of CITY OF CHULA VISTA CITY COUNCIL October 1, 1996 Page 2 Second, the City will need to conduct a Phase I Environmental Study and do actual soils testing to determine if there are any toxic substances present on the-site. '--. Finally, there are unresolved issues with regard to the ownership of the Trolley site and adjacent parking lots which must be resolved-. ---- --,." ..--.,,",-... ,-.. Based upon this, we would respectfully request that the City Council put our requested ENA on hold for now, and contact us when the above-reførenoed iåsues are further addressed. J Thank you for your consideration of this request. Sincerely, - PETEnSON & PRicE A Professional Corporation I: ~t~ {?~ Matthew A. Peterson cc: John GoISS ,~ity Manager. Chris Salomone, Director of Community Development Fred Kassman, Redevelopment Coordinator James A. Clarke, Sunburst Corporation "E" St. Trolley Square, LLC - - """""""""""""..""."..,.........,.......,..,..,...."..,.....,...."......."""""""M""""""'""'"M"M""""M""""""MM""""""""""M"""""MU,,U,,U~ t' P.01 t t TRANSACTION REPORT t t OCT- 1-96 ruE 14:37 t t t t DATE START SENDER RJ( TIME PAGES TYPE NOTE t t t t OCT- 1 14:35 1'25" 3 RECEIVE OK * * t nn nnnnnnnn nntnnntnnnn nut nUt nntntunntnnt nnnunnunnnunu tn unt ~"" ...' ,"'"' ,""'_.,,",.._-,.., --.. ':""':"':"""':"I":"Y(':!1::~'r"",""'n""""'" :r' ',' "" ',,', ",'" ",' "" ,'" ':: ->", , ",; - ,'1'::'" :':~:' ,i - , . . .