HomeMy WebLinkAboutRDA Packet 1995/09/26
Notice is hereby given that the Chairman of the Redevelopment Agency/Mayor of the City of Chula Vista has called
and will convene a joint special meeting of the Redevelopment Agency/City Council on Tuesday, September 261995
at 6:00 p.m., immediately following the regular City Council meeting, in Council Chambers, located in the Public
Services Building, 276 Fourth Avenue, Chula Vista, California to consider, deliberate and act upon the following:
Tuesday, September 26, 1995 Council Chambers
6:00 p.m. Public Services Building
(immediately following the City Council meeting)
Joint Meetin2 of the Redevelopment A2encv/Citv Council
of the Citv of Chula Vista
CALL TO ORDER
1. ROLL CALL: Agency/Council Members Alevy -' Moot -' Padilla -'
Rindone -' and Chair/Mayor Horton -
2. APPROVAL OF MINUTES: September 5, 1995; September 12, 1995
BUSINESS
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
The following item has been adverlised and/or posted as a public hearing as required by law. If you wish to
speak to the item, please fill out the "Request to Speak Form" available in the lobby and submit it to the Secretary
of the Redevelopment Agency or the City Clerk prior to the meeting. (Complete the green form to speak in favor
of the staff recommendation; complete the pink form to speak in opposition to the staff recommendation.)
Comments are limited to five minutes per individual.
3. COUNCIL
RESOLUTION 18040
and
AGENCY
RESOLUTION 1469 AUTHORIZING THE EXECUTION OF A PROPERTY EXCHANGE
AGREEMENT BETWEEN THE AGENCY AND THE SWEETWATER
UNION IDGH SCHOOL DISTRICT FOR THE PURPOSES OF
PROVIDING THE AGENCY WITH THE PROPERTY NECESSARY TO
EFFECTUATE THE VETERANS HOME PROJECT AND TO PROVIDE
THE DISTRICT WITH THE PROPERTY NECESSARY TO DEVELOP
A NEW DISTRICT ADMINISTRATIVE HEADQUARTERS IN THE
TOWN CENTRE I REDEVELOPMENT PROJECT AREA--Through the
'""declare under penalty of perjury that I am
~molo'Jed by the City of Chula Vista in the
Co~"'-un'ty Deve!opment Department and that I posted
this Agenja!¡.:o'ice O~:Qtin Boord at the
::~~~~i~~ ?a~in~~êt1;~"Hall¿;~", ldf
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Agenda -2- September 26, 1995
Agreement the Agency can acquire the property necessary to donate to the
California State Department of Veterans Affairs to develop a Veterans Home
facility and in exchange provide the property needed for the Sweetwater Union
High School District to construct a new district administrative headquarters
plus other considerations in order to account for the difference in values
between the properties to be exchanged. Staff recommends approval of the
resolutions. (Community Development Director)
ORAL COMMUNICATIONS
This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within
the Agency's jurisdiction that is not an item on this agenda. (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.
OTHER BUSINESS
4. DIRECTOR'S/CITY MANAGER'S REPORT(S)
5. CHAIR'SIMAYOR'S REPORT(S)
6. AGENCY/COUNCIL MEMBER COMMENTS
ADJOURNMENT
The meeting will adjourn to the Regular Redevelopment Agency Meeting on October 3, 1995 at 4:00 p.m.,
immediately following the City Council meeting, in the City Council Chambers.
......
COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT
The City of Chula Vista, in complying with the Americans With Disabilities Act (ADA), request
individuals who require special accommodations to access, attend, and/or participate in a City meeting,
activity, or service request such accommodation at least forty-eight hours in advance for meetings and
five days for scheduled services and activities. Please contact the Secretary to the Redevelopment
Agency for specific information at 619.691.5047 or Telecommunications Devices for the Deaf (TOO)
at 619.585.5647. California Relay Service is also available for the hearing impaired.
[C:\ WP51 IAGENCYlAGENDAS\O9-26-95.AGDI
_.
MINUTES OF A JOINT MEETING OF THE REDEVELOPMENT AGENCY/CITY COUNCIL
OF THE CITY OF CHULA VISTA
Tuesday, September 5, 1995 Council Chambers
5:41 p.m. Public Services Building
CALL TO ORDER
1. ROLL CALL:
PRESENT: Agency/Council Members Alevy, Moot, Rindone, and Chair/Mayor Horton
ABSENT: Agency/Council Member Padilla
PRESENT: John D. Goss, Director/City Manager; Bruce M. Boogaard, Agency/Council
Attorney; and Beverly A. Authelet, City Clerk
MSC (Rindone/Horton) to excuse Agency/Council Member Padilla from the meeting of 9/05/95. Approved
4-0-1 with Padilla absent.
2. APPROVAL OF MINUTES: August 15, 1995
MSC (Alevy/Moot) to approve the minutes of August 15, 1995 as presented, approved 4-0-1 with Padilla
absent.
CONSENT CALENDAR
(Item pulled: 4)
3. WRITTEN COMMUNICATIONS: None
4. REPORT AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30,
1994--Pursuant to City Charter Section 1017, an annual audit is performed of the City's financial records by an
independent accounting firm. Staff recommends that Council and Agency accept the reports. (Director of Finance)
Pulled from the Consent Calendar.
Member Rindone questioned the reason for the change in the method of accounting for accrued interest expense on
the inter-fund advances.
Robert Powell, Finance Director, responded that he felt the prior presentation of showing the interest on loans
between project areas overly clouded the financial statement. It showed all the interest even though the interest
would not be repaid within the fiscal year as a current year obligation for the project areas. It therefore showed
the deficits for the Agency as a whole in the $11 million range. Those interest expenses would not be paid until
future years when property tax increment monies were received. Therefore, he decided that an alternative process,
equally acceptable, would be preferable. He worked with the accounting firm to disclose the information in the
notes of the financial statements rather than the current balance sheet. It was clearly a technical presentation issue.
The accounting for the transaction was exactly the same.
Member Rindone stated he was pleased, the Agency had been advocating a clearer balance sheet statement for the
five project areas. Under the General Purpose Financial Report of the City of Chula Vista, page 5, there was a
discussion of the excess of expenditures over revenues for the current year and a detïcit of $18,406,000 and he
requested an explanation of what that was.
Mr. Powell replied that it was a memorandum only total of the fund types including the General Fund, special
revenue funds, debt service, capital projects, and trust funds. In looking under the Debt Service Funds there was
$18.5 million and then further in the report there was a $20 million positive. The excess of expenditures over
revenues for the debt service funds was covered by a $20 million transfer in of debt proceeds.
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Minutes
September 5, 1995
Page 2
Member Rindone questioned why the Pension Obligation, Principle Retirement Fund, and the interest and charges
were so large for the one year.
Mr. Powell stated there was $16 million for the Pension Obligation'because it showed the total amount of the
Pension Obligation bonds coming in as revenue or proceeds of the debt issuance. They also had to show that going
out to pay for the unfunded liability to PERS. That was a one year "blip" and it was an unusual event.
Member Rindone questioned if the proceeds from the sale of the bonds, Note J, of the $19,901,000 would offset
that.
Mr. Powell stated that was correct. It was more than just the Pension Obligation bonds. The Agency had issued
a series of 1993 COP's during that year also for the parking structure in the Chula Vista Center.
Mr. Goss clarified that Note J indicated that the payment of the Pension Obligation bonds was $16,049,201 and the
proceeds of the bond issue would be $16,786,535.
Member Rindone questioned if the excess of revenues over the expenditures of $2.6 million was the aggregate of
all the five RDA funds.
Mr. Powell stated it was the aggregate of the four project area operating funds, the four project area capital project
funds, the tax allocation bond debt service fund, and two of the housing funds, i.e. Low/Mod Housing and CDBG
Housing fund.
Member Rindone stated the Agency had requested clarification of the shortfall of the aggregate of the expenditures
for the RDA budgets and their expenditures. He questioned how the $2.6 million shortfall would be interpreted
with the fund balance of $12 million.
Mr. Powell stated it would be more accurate to review the line on page 3 of the report - Excess (Deficiency) of
Revenue and Other Financing Sources Over Expenditures and Other Financing Uses" which was $3.8 million. That
showed the difference between resources coming in and resources going out for that year.
Member Rindone stated that tbe actual shortfall was not $2.6 million but $3.8 million.
Mr. Powell stated that was correct.
Member Rindone stated that in 1995/96 there was a shift of approximately $2 million and questioned if the Agency
could anticipate that the shortfall figure of $3.8 million would be cut by approximately $2 million.
Mr. Powell responded that it was a simplistic comparison but a reasonable figure. The financial statement was for
1993/94 and not 1994/95.
Mr. Goss stated in reviewing the present budget and last years budget and discounting and not taking into
consideration any property sales, it appeared to staff that the RDA budgt was roughly $2.5 million out of balance.
It was his conclusion that the $2 million shift would bring that gap to approximately $300,000 to $500,000.
Member Rindone stated it was important was to recognize that there was a problem and the Agency had recognized
that. Step two was to realize the size of the problem and he felt that was what the Agency was attempting to do
at the present time. The final step would be to ensure that there was a plan to address the issue. As of the year
ending June 30, 1994, the aggregate shortfall of the RDA was $3,803,000 for tbat fiscal year. Things were being
done in the short run, i.e. sale of property, to mitigate the size of the deficit, but it would still be an annual
occurrence without other new healthy projects on line.
MS (Rindone/Alevy) to accept the audit and financial statement report for the fiscal year ending June 30,
1994.
Member Rindone questioned if the same tirm would do the audit for FY 1994/95.
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Minutes
September 5, 1995
Page 3
Mr. Powell responded that auditors were changed every 3-5 years. Council had awarded a new contract to
Moreland & Associates beginning FY 1994/95. They were currently doing audit work at the present time.
VOTE ON MOTION: approved 4-0-1 with Padilla absent.
* . END OF CONSENT CALENDAR * *
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
5. PUBLIC HEARING ADDENDUM TO THE 1993 UPDATE OF THE PUBLIC FACILITIES
DEVELOPMENT IMPACT FEE, WITH NO CHANGE IN THE FEE AMOUNT--On 5/23/95, Council
determined that the El Dorado office building, 315 Fourth Avenue (a facility proximate to the Civic Center and
capable of meeting the City's interim office space needs) is currently available for purchase at a reasonable price.
Council directed staff to pursue the City purchase of the building as part of the Civic Center DIF. The purchase
is anticipated to be an interim step in the implementation of the Civic Center Master Plan and is not expected to
affect the end cost of the project. The proposed addendum to the Public Facilities DIF will not impact the level
of fees assessed. Staff recommends approval of the resolution. (Deputy City Manager Krempl and Senior
Management Assistant Young) Continued from tbe meetinl! of 8/15/95
RESOLUTION 18028 APPROVING AN ADDENDUM TO THE 1993 UPDATE OF THE PUBLIC
FACILITIES DEVELOPMENT IMPACT FEE, WITH NO CHANGE IN THE FEE AMOUNT
This being the time and place as advertised, the public hearing was declared open.
8 Craig Benedetto, 6336 Greenwich Drive, San Diego, CA, representing the Building Industry Association,
stated they were concerned when they heard that DIF fees would be used to purchase tbe building. McMillin,
EastLake, and Baldwin had also expressed concern in written commentary to staff and council. There were two
real issues: I) a change regarding needs in the DIF Master Plan they would recommend that council do a
comprehensive review of the DIF Master Plan and the needs of the city; and 2) the appraisal being less than what
the city proposed to purchase the building for which they felt was too much. The RDA was in trouble, they had
paid too much for the building and needed to "dump" it. When there was an appraisal the offer was never for the
amount of the appraisal. According to the staff report the building could be sold in 5 - 7 years and if that was the
case they recommended that the RDA institute a bidding process for the building with the city entering into that
process for a fair and reasonable bid.
There being no further public testimony, the public hearing was declared closed.
Councilmember Alevy questioned if the DIF funds were specifically paid for the Civic Center project or if they were
generic funds paid by developers.
George Krempl, Deputy City Manager, responded that tbe funds were collected from developers specifically for
the Civic Center. They were consistent in terms of tbe overall Master Plan for the Civic Center. The fee was not
being increased and would remain the same. The Master Plan needed to be updated periodically, but staff was
proposing to spend the money for a purpose as intended.
Councilmember Alevy stated he had not seen the Master Plan and it was his understanding that the last time Council
had reviewed it was 1993.
Mr. Krempl stated it was done periodically on a comprehensive basis. Various facilities were reviewed and the fees
were adjusted accordingly for the various subcomponents as well as the total fee.
Council member Alevy stated the funds would not be taken away from necessary services that other types of DIF
funds paid for.
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Minutes
September 5, 1995
Page 4
Mr. Krempl responded that there were two different funds, i.e. those funds specifically restricted to pay for
collection, i.e. fire station, etc. and Council had granted staff flexibility to be able to pool funds because of changing
priorities. In the case of the Civic Center, there was approximately $700,000 in the old DIF fund that could only
be expended for Civic Center expansion. The city had collected more than enough money that would be earmarked
for Civic Center purposes in the pooled account. The city tracked exactly what proportion of the fee was paid by
the developer for each particular function. Because the City had accumulated enough funds in that particular
account staff did not need to use the flexibility granted by Council to prioritize projects for funding.
Councilmember Alevy questioned if it was staffs intent to purchase the building as a "stop gap" for the next 5 -
7 years.
Mr. Krempl responded that was the anticipation, but it may end up as a permanent facility for the Civic Center,
staff wanted to retain that option.
Councilmember Alevy stated the purchase price of $1.175 million was the appraised value of the building and the
highest bid was $1 million. He questioned the rationale for paying more than the highest bid.
Mr. Krempl replied that staff felt the city needed to go with the appraised value of the building as a measurement.
Mr. Goss stated there was a feeling that the offers made were probably under the market value of the building at
the time.
Councilmember Rindone questioned who would be responsible for the shortfall if the building sold below the $1.175
million paid.
Mr. Krempl responded the rents from the building would go into the DIF and it was staffs belief that over the 5 -
7 year period the rents would exceed the price of the building, therefore, staff did not feel there would be a
shortfall. There would be additional money in the DIF and at the time the council made that decision the DIF could
be lowered with the developer being charged less or the DIF could be reconstituted through an amendment of the
Master Plan because of future needs.
Mr. Boogaard stated the risk of market slide was on the DIF and it would also bear the benefit of tenant rents and
interest accrued on tenant rents. The DIF would also bear the benefit of appreciation. The amendment stated that
despite a long term need there was a temporary shortage of Civic Center office space that was being satisfied by
the amendment to the DIF. Growth was required by the DIF to bear its share of temporary Civic Center capacity
and that growth was immediate and not in 20 years when the full DIF might materialize. Since the city was treating
the building as an asset of the DIF it was a duty of the growth, i.e. the development community to bear the
temporary, as well as the long term, Civic Center capacity requirement.
Councilmember Alevy questioned what the rental income was per month and how it related to debt service.
Miguel Tapia, Community Development Specialist, responded that the current gross income was approximately
$14,000/month.
Chris Salomone, Director of Community Development, stated the $14,000/month was approximate to what a normal
market sales price for the building would be. The appraisal was based on the income that it produced. The building
had been used for a number of uses and in particular South Bay Cominunity Services rented approximately 5,000
sq. ft. for many years and only in recent months had the RDA realized the full level of revenue from the building.
RESOLUTION 18028 OFFERED BY COUNCILMEMBER ALEVY, reading of the text was waived, passed
and approved 4-0-1 with Padilla absent.
6. PUBLIC HEARING SALE OF AGENCY PROPERTY LOCATED AT 315 FOURTH A VENUE
WITHIN THE TOWN CENTRE I REDEVELOPMENT PROJECT AREA TO THE CITY OF CHULA
VISTA, CALIFORNIA, WITHOUT PUBLIC BIDDING--Stan informed the Agency at its 5/23/95 meeting the
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Minutes
September 5, 1995
Page 5
three proposals received for purchase of the building were unacceptable. The Agency directed staff to prepare a
Purchase and Sale Agreement for Agency/Council review and approval. Staff recommends approval of the
resolutions. (Community Development Director) Continued from the meetilU! of 8/15/95
A. RESOLUTION 1458 APPROVING SALE OF CERTAIN PROPERTY LOCATED AT 315
FOURTH A VENUE WITHIN THE TOWN CENTRE I REDEVELOPMENT PROJECT AREA TO THE
CITY OF CHULA VISTA, CALIFORNIA WITHOUT PUBLIC BIDDING, APPROVING PURCHASE AND
SALE AGREEMENT WITH THE CITY OF CHULA VISTA, CALIFORNIA, AND AUTHORIZING THE
CHAIRMAN TO EXECUTE SAME
B. RESOLUTION 17926 APPROVING THE PURCHASE OF CERTAIN PROPERTY LOCATED
AT 315 FOURTH AVENUE WITHIN THE TOWN CENTRE I REDEVELOPMENT PROJECT AREA
FROM THE REDEVELOPMENT AGENCY, APPROVING A PURCHASE AND SALE AGREEMENT
WITH THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA, AND
AUTHORIZING THE MAYOR TO EXECUTE SAME
This being the time and place as advertised, the public hearing was declared open. There being no public testimony,
the public hearing was declared closed.
RESOLUTIONS 1458 AND 17926 OFFERED BY CHAIR/MAYOR HORTON, reading of the text was
waived, passed and approved 4-0-1 with Padilla ahsent.
7. PUBLIC HEARING TO CONSIDER GRANTING A SPECIAL LAND USE PERMIT TO
ALLOW A USED CAR LOT AND AN AUTOMOTIVE SERVICE CENTER AT 801 BROADWAY WITHIN
THE SOUTHWEST REDEVELOPMENT PROJECT AREA IN CHULA VISTA -- The applicant proposes to
use the site for the establishment of an RV Parts Store, a Used Car Lot and an automotive service center. The lot
and automotive service center require a Conditional Use Permit (Special Land Use Permit when located within the
redevelopment areas. Staff recommends approval of the resolution. (Community Development Director)
RESOLUTION 1468 MAKING CERTAIN FINDINGS AND APPROVING A SPECIAL LAND
USE PERMIT TO ALLOW A USED CAR LOT AND AN AUTOMOTIVE SERVICE CENTER AT 801
BROADWAY WITHIN THE SOUTHWEST REDEVELOPMENT PROJECT AREA IN CHULA VISTA
Fred Kassman, Redevelopment Coordinator, informed Council tbat the Southwest Project Area Committee did not
have a quorum and therefore, had not reviewed the item. Several members of the neighborhood did attend the
proposed meeting of the Southwest PAC to voice their concerns. Staff felt many of their concerns related directly
to the previous owner/business. Mr. Courtney was proposing a slightly different use and staff felt with appropriate
conditions on the CUP it would alleviate the neighbors concerns.
Chair Horton questioned if concerns regarding noise related directly to the use of a loudspeaker system used on car
lots.
Mr. Kassman responded that was correct along with some of the machinery used in the auto repair shop and the
contractors heavy equipment. The used car sales would be at the front of the property and there would be auto
repair at the rear of the property. It was his understanding they would not utilize a sound system.
This being the time and place as advertised, the public hearing was declared open.
. Dorothy Breininger, 790 Ash Avenue, Chura Vista, CA, stated staff had been presented with a petition at
the 8/28/95 meeting which was signed by residents in the area opposed to the project. She expressed concern over
pollution, noise impacts, safety concerns regarding the additional driveways on "K" Street in a residential area,
increase in traffic and congestion, and the addition of a neon sign in a residential area. She requested that a large
brick wall be erected to mitigate noise and visual impacts and that the sign not be erected on "K" Street. She noted
that there were several used car lots with 100 ft. of the area.
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Minutes
September 5, 1995
Page 6
8 Jesus Monzon, 797 Ash Avenue, Chula Vista, CA, stated he was an architect and expressed his concern
regarding noise, landscaping, parking, and graffiti. He felt the project could be mitigated with design requirements
which he had been told the proposed owner had agreed to do. He recommended that landscaping be installed to
mitigate the noise, the large sign be installed closer to Broadway with a monument sign install where the original
sign was proposed, and the removal of the entrance at the middle of the site. He wanted to have an opportunity
to meet with the Design Review Committee or Mr. Courtney to discuss such modifications. He felt Mr. Courtney
would be a good neighbor.
8 Jim Courtney, 5718 Winners Circle, San Diego, CA, representing Courtney Tire, stated he shared some
of the neighbors concerns and was willing to work with them. He had already agreed to delete one of the driveways
and erecting a block wall with landscaping on the outside to help prevent graffiti.
There being no further public testimony, the public hearing was declared closed.
Member Alevy stated he had met with Mr. Courtney and assured the community that the project would be reviewed
by the Design Review Committee. He felt Mr. Courtney would be a good neighbor. Broadway was a major
commercial thoroughfare, "K" Street was a major cross thoroughfare, and it was a busy intersection. The city was
concerned that the neighborhood retain its integrity and he felt they would be happier with their new neighbor than
they were with their old neighbor. He felt it was a good project for the city.
RESOLUTION 1468 OFFERED BY MEMBER ALEVY, reading of the text was waived.
Chair Horton stated the resolution was offered with the understanding that Mr. Courtney would be meeting with
the residents to make sure that all their concerns were addressed.
Member Moot felt one of the problems with the procedure was that redevelopment projects did not go through the
Planning Commission where so many of the items were discussed and worked out with the residents of the area
before the item came before the council. Because of Mr. Courtney's reputation he was comfortable that the issues
would be worked out, but he did not feel it was an appropriate procedure. He hoped that at some point the RDA
would rethink the procedure. The PAC that was to review the project did not have a quorum and never met. At
the Planning Commission level there was healthy discussion between the owner of the property and the residents
in the area. The process should be reconsidered.
Member Rindone stated a list of conditions had been included in the report for issuance of the special permit and
questioned if that had already occurred.
Mr. Kassman responded that the conditions were attached to the resolution approving the conditional use permit.
Therefore, they would be memorialized when the resolution was passed. The applicant would have to abide by the
conditions.
Member Rindone felt that was important and concurred with Member Moot's concerns regarding the process. He
felt that should be brought back for Agency review before other issues arose. He noted that one of the conditions
was a 6 ft. wall on "K" Street along with landscaping, lighting, and signage plans and circulation controls. He felt
that would mitigate the issues raised by the residents.
VOTE ON MOTION: approved 4-0-1 with Padilla absent.
ORAL COMMUNICATIONS
8 Bill Ayers, 44 East Mankato Street, Chula Vista, CA, Veterans representative for the County Board of
Supervisors, informed the Agency that AB940 was being held up. They had alerted the veterans in the community
along with all state and local representatives.
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Minutes
September 5, 1995
Page 7
ACTION ITEMS
None Submitted.
ITEMS PULLED FROM THE CONSENT CALENDAR
Item pulled: 4. The minutes will reflect the published agenda order.
OTHER BUSINESS
8. DIRECTOR'S/CITY MANAGER'S REPORTlS)
8 Mr. Goss clarified that the Civic Center Master Plan had not been updated in 1993. It was adopted in
concept in 1989, adopted in 1990, and in 1992 or t993 the DlF that related to the Civic Center Master Plan and
its implementation was approved or updated. Some parts of the Master Plan had been implemented, i.e. expansion
of the parking lot, city attorney's oftìce expansion, and changes made in the mayor/council offices. Even though
the EI Dorado building would be used on an interim basis to house excess staff another step was to move the
community development department into the old county health department building as an interim step. Ultimately,
they would be housed in the Civic Center annex which was yet to be built. It had been five years since the Master
Plan had been adopted by the Council and he felt there should be a presentation to the Council on what it was, what
steps had been taken, and what was contemplated in the future.
9. CHAIR'S/MA YOR'S REPORHS) - None
10. AGENCY/COUNCIL MEMBER COMMENTS
A2encv/Council Member Rindone
8 Councilmember Rindone stated council had received a memorandum dated 8/28/95 from the Budget
Manager regarding the seasonal gardener salary classification and he requested that it be brought back to council
for consideration. He did not have a clear understanding that council was impacting those positions. It appeared
to him that by reducing the salaries by more than 20% it would exacerbate the current problem of excessive turn-
over in the positions.
ADJOURNMENT
ADJOURNMENT AT 6:46 P.M. to the Regular Redevelopment Agency Meeting on September 19, 1995 at 6:00
p.m., immediately following the City Council meeting, in the City Council Chambers.
CLOSED SESSION
The Agency met in Closed Session at 6:53 p.m., reconvened at 9: 15 p.m., and adjourned at 9: 15 p.m.
11. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Give Instructions to Negotiators pursuant to Government Code Section 54956.8
a. Proposed sale of property: Parcel #s 563-350-13 and 566-131-01).
Negotiating Party: Chris Salomone, Redevelopment Agency and Barry Silverton, Pacific Malibu
Development Corporation and Steve and Les Warner of Warner Properties
Price and Payment Terms.
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Minutes
September 5, 1995
Page 8
b. Property: School District property next to Community Hospital Medical Center
Negotiating parties: John D. Goss, City Manager and Robert Griego, Sweetwater Unified High
School District
Under negotiation: Price and Payment Terms.
12. REPORT OF ACTIONS TAKEN IN CLOSED SESSION - No reportable actions were taken in Closed
Session.
by:
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MINUTES OF A SPECIAL JOINT MEETING OF THE REDEVELOPMENT AGENCY/
CITY COUNCIL OF THE CITY OF CHULA VISTA
Tuesday, September 12, 1995 Council Chambers
7:42 p.m. Public Services Building
CALL TO ORDER
I. ROLL CALL:
PRESENT: Agency/Council Members Alevy, Moot, Rindone, and Chair/Mayor Horton
ABSENT: Agency/Council Member Padilla
ALSO PRESENT: John D. Goss, Director/City Manager; Bruce M. Boogaard, Agency/City
Attorney; and Beverly A. Authelet, City Clerk
MSC (Rindone/Alevy) to excuse Member Padilla's absence for the 9/12/95 meeting. Approved 4-0-1 with
Padilla absent.
ORAL COMMUNICATIONS
None
OTHER BUSINESS
2. DIRECTOR'S/CITY MANAGER'S REPORTCS) - None
3. CHAIR'S/MA YOR'S REPORHS) - None
4. COUNCIL COMMENTS - None
ADJOURNMENT
ADJOURNMENT AT 7:43 P.M. to the regular Redevelopment Agency Meeting on September 19, 1995 at 6:00
p.m.. immediately following the City Council meeting, in tbe City Council Chambers.
CLOSED SESSION
The Agency met in Closed Session at 7:45 p.m., reconvened at 10:30 p.m., and adjourned at 10:30 p.m.
5. CONFERENCE WITH LEGAL COUNSEL REGARDING - Anticipated litigation pursuant to Government
Code Section 54946.9
. Chula Vista Auto Park developers - South Bay Chevrolet and Fuller Ford/Honda/Kia v.
City/Redevelopment Agency based on statements made in June 8, 1995 letter from Auto Park developers
to staff and statements made in their meeting with staff on Thursday, September 7, 1995.
6. REPORT OF ACTIONS TAKEN IN CLOSED SESSION - No reportable actions were taken in Closed
Session.
Respectfully submitted,
~VERLY A. AUTHELET, CMC/AAE, City Clerk
by: lSl<- ~ ll\c'
Vicki C. Soderquist, CMC, uty City Clerk
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JOINT REDEVELOPMENT AGENCY/CITY COUNCIL AGENDA STATEMENT
Item---.3..-
Meeting Date 9-26-95
ITEM TITLE: PUBLIC HEARING BY THE CITY COUNCIL/REDEVELOPMENT
AGENCY TO CONSIDER A PROPOSED PROPERTY EXCHANGE
AGREEMENT BETWEEN THE AGENCY AND THE SWEETWATER
UNION SCHOOL DISTRICT PURSUANT TO HEALTH AND SAFETY
CODE SECTIONS 33431 AND 33433
/fI()~O
CITY COUNCIL RESOLUTION AND REDEVELOPMENT
AGENCY RESOLUTION /¡.ftÞ" AUTHORIZING THE EXECUTION
OF A PROPERTY EXCHANGE AGREEMENT BETWEEN THE
AGENCY AND THE SWEETWATER UNION HIGH SCHOOL
DISTRICT FOR THE PURPOSES OF PROVIDING THE AGENCY
WITH THE PROPERTY NECESSARY TO EFFECTUATE THE
VETERANS HOME PROJECT AND TO PROVIDE THE DISTRICT
WITH THE PROPERTY NECESSARY TO DEVELOP A NEW
DISTRICT ADMINISTRATIVE HEADQUARTERS IN THE TOWN
CENTRE I REDEVELOPMENT PROJECT AREA
SUBMITTED BY: Community Development Director C 5,
REVIEWED BY: Executive Director W
c/
(4/5ths Vote: Yes- No_X..!
Council Referral No. -
BACKGROUND: On October 25, 1994 the Chula Vista City Council conceptually
approved the donation of 20 acres of land currently owned by the Sweetwater Union
High School District and the exemption of the majority of development fees in support
of the Veterans Home project. On October 27, 1994 the Governor's Task Force on
a Southern California Veterans Home voted in favor of recommending the Medical
Center Drive site in Chula Vista as the location for the development of the next
Veterans Home facility ahead of all other proposals in Southern California. On
November 14, 1994, the Chula Vista Redevelopment Agency, the City of Chula Vista,
and the District entered into a Memorandum of Understanding regarding the Agency's
proposed acquisition of the real property owned by the District, comprised of
approximately 30.06 unimproved acres, commonly referred to as the "Hospital School
Site". On May 12, 1995 the SUHSD Board of Trustees approved the proposed terms
of an agreement to acquire the subject property as previously discussed with the
City/Agency members on May 9, 1995. On September 7, 1995 the District Board of
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Item -3
Date 9-26-95 Page 2
Trustees approved the Property Exchange Agreement ("Agreement") and it is now in
order for the City/Agency to conduct a public hearing to consider the proposed
Agreement.
RECOMMENDATION: That the Agency conduct a public hearing and adopt the
resolution which authorizes the execution of the Property Exchange Agreement
between the City, Agency and District.
BOARDS/COMMISSIONS RECOMMENDATION: The City's Housing Advisory
Commission and the Veterans Advisory Commission support the development of the
Veterans Home at the proposed site.
DISCUSSION: Considering that approximately two-thirds of California's veterans
reside in Southern California, the need for a Veterans Home is well established.
Currently, the Veterans Home located in Yountville, in Napa County, is the only
Veterans Home in operation in California. In October, 1991, Governor Wilson signed
into law AB514 which created a 12 member commission to advise the Governor and
legislature on establishing a Veterans Home in Southern California which includes the
counties of Imperial, Los Angeles, Orange, Riverside, San Bernardino, San Diego, and
Ventura.
On December 21, 1994, the Commission made a recommendation to the Governor
that the highest priority be given for the second site of the southern California
Veterans Home to be constructed in Chula Vista. The site is to accommodate the
development of a 400 bed veterans facility to provide independent living, assisted
living, and skilled nursing levels of care. It has been estimated that such a facility will
cost $32 million and it is anticipated that approximately 300 jobs will be created at
the location. A desirable site is considered to be about 20 acres and the State
requires that the land be donated.
This report will discuss the following: 1) Status of the Veterans Home project; 2)
Terms of the Property Exchange Agreement; and 3) Project benefits.
STATUS OF VETERANS HOME PROJECT
On September 15, 1995, the State Senate approved an amended version of AB940
which authorizes $1,680,000 for funding predevelopment studies, and architectural
plans for the Chula Vista and Lancaster sites. The Bill has been sent to the Governor
for approval within a 30 day period. In January, 1996, our local State and Assembly
legislators are expected to introduce a new bill which will authorize the rest of the
funds needed to pay for the rest of the 35% State share to build the facility which will
enable the State to apply for the additional 65% of the funds from the Federal
government.
Approval of the proposed Property Exchange Agreement will provide the City of Chula
Vista with additional evidence of site control which the California Department of
Veterans Affairs has been requesting. Additionally, the Environmental Impact Report
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Item L
Date 9-26-95 Page 3
process for the Veterans Home project is well underway and should be ready for the
initial public review period within the next four weeks.
TERMS OF THE AGREEMENT
The proposed terms for the Property Exchange Agreement are summarized below. (A
copy of the proposed Agreement is attached hereto as Exhibit A.)
A. Citv / Aaencv Obliaations
In exchange for the transfer of fee title by the District of the Hospital School Site to
the City/Agency (or its designee). the City/Agency shall provide the District with the
following:
* Fee title to certain real property located at Third Avenue and Alvarado
Street, Chula Vista, comprised of approximately 2.63 unimproved acres,
commonly referred to as the "Windmill Farms Site". The site was
recently appraised at $1,375,000. [See Section 1.1 of the Agreement]
* Up to $545,000 of other property suitable for use by the District as a
District corporate yard site or, if such property is not acquired within 3
years, $545,000 in cash or other acceptable consideration. The City
must use its best efforts to designate a suitable site within 6 months and
acquire such site within 1 year of such designation. If the property to
be acquired is intended to house both the City's corporate yard and the
District's corporate yard (as is possible with at least one of the
properties currently under consideration) the parties shall mutually agree
upon division of the site so as to accommodate a design that best meets
both agencies requirements. [See Section 4.1 of the Agreement]
* Up to $500,000 of financing of lease or debt service payments for the
development of the District's administrative headquarters on the
Windmill Farms Site. This subsidy would be contingent on the project's
generation of tax increment revenue. In other words, the Agency's
obligation is limited, both in the aggregate and for each year (for up to
12 years) to no more than the tax increment generated by the facility
and received by the Agency in unrestricted funds. [See Section 4.2 of
the Agreement]
* City staff will expedite processing, and presentation to City Council for
due consideration, of any District application for the rezoning of the
District property located at 1130 Fifth Avenue, Chula Vista, upon which
the District's administrative offices are currently located. Due
consideration will be afforded the District's preferred zoning of the
subject site. [See Section 4.3 of the Agreement]
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Item .3
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Date 9-26-95 Page 4
B. District Obliqations
In exchange for the transfer of fee title by the City/Agency of the Windmill Farms Site
to the School District (or its designee) and for the other consideration set forth above,
the District shall provide the City/Agency with the following:
* Fee title to the Hospital School Site. The site was recently appraised at
$1,920,000. [See Section 1.1 of the Agreement]
* The District agrees to negotiate an owner participation/development with
the Agency regarding the development of the Windmill Farms Site and
to use its best efforts to develop that site within 5 years after its
acquisition thereof.
C. Additional Kev Terms and Conditions
* Aqreement Terminated if Veterans Home Proiect Does Not Proceed.
In the event that the Hospital Site is not donated to the State for the
Veterans Home Project, or the property is donated but that project does
not go forward, the exchanged properties will revert back to their original
owners and neither party will have any further obligations under the
Agreement. Note: The terms for the reversion of properties are
currently being negotiated with the State. The Agreement with the
School District will be subject to whatever those terms are. [See Section
1.2 of the Agreement]
* Conditions to Close. Generally, the property exchange will not close
until (a) all conditions precedent to the Agency's donation to the State
of the Hospital Site have occurred (Note: these conditions are currently
being negotiated with the State); (b) the parties approve the condition
of title and the physical conditions of the properties; (c) each party
completes the necessary CEQA analysis for the proposed projects; and
(d) the District obtains approval of the exchange from the State Office
of Public School Construction.
SUMMARY REPORT REQUIRED BY THE REDEVELOPMENT ACT
A copy of the "Summary Report" for this transaction, which was prepared and made
available for public inspection pursuant to Section 33433 of the Redevelopment Act,
is also attached hereto as Exhibit B. A Summary Report is required by the
Redevelopment Act whenever a Redevelopment Agency proposes to dispose of
property acquired with tax increment revenue monies. The report describes the "cost"
of the transaction to the Agency, the value of the land being transferred, and how the
transfer will help eliminate blight within the project area.
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Item :3
Date 9-26-95 Page 5
PROJECT BENEFITS
The development of a Veterans Home will provide the following significant economic
and social benefits to Chula Vista;
- A $32 million construction project which will generate employment
opportunities of construction trades for approximately 1 year.
- The creation of approximately 250-300 new permanent jobs ranging
from entry level to professional levels.
- An annual payroll estimated at 8 mmion dollars which will be a boost to
the local economy.
- An economic stimulus by establishing a demand for services and
increasing number of visitors to the City in need of hotels and other
accommodations.
- Regional share housing credit for the City.
- Social benefit and demonstrated City commitment in meeting Veterans
needs.
Aqreement Benefits
As discussed in the "Summary Report" the Agreement will provide the stimulus
necessary for a currently vacant and blighted site, to be developed to its highest and
best use. Additionally, the presence of the District headquarters and the additional
"non-public" uses to be located on the site shall provide other indirect "spin-off"
economic benefits.
FISCAL IMPACT: The proposed exchange of land involving the Windmill Farms and
an undetermined 8-10 acre portion of Otay Rio Business Park properties in exchange
for the Hospital School Site is based on values determined by current appraisals.
The proposal for the Agency to finance or arrange for financing of the District's lease
or debt service payments for a period of twelve (12) years, not to exceed $500,000
is based on the tax increment actually generated by the propose administrative facility
and received by the Agency in unrestricted funds. The development of the school
district administrative office has the potential to produce economic benefits to the
redevelopment area which will exceed the tax increment generated. The Summary
Report provides a more in-depth discussion of the transaction between the Agency
and District.
The financing of the $1.92 million land donation of the land to the State for the
Veterans Home Project (which is not the subject of this Agreement and will be
presented at the time the agreement with the State for the development of the
Veterans Home is presented) is proposed to be structured so that, in effect, the
low/moderate income housing fund will be purchasing from the Agency the
$1,920,000 Hospital Site and paying the Agency back in the form of a transfer to the
Agency of the Lower Sweetwater Valley site (valued at $620,000) and cash
payments (to the Agency in the amount of $755,000 and to the City in the amount
of $545,000) in the principal amount $1.3 million. 3-S [AG,M,lsh.,edlattorneylvetJ
This page blank.
.J-t,
EXHIBIT A
PROPERTY EXCHANGE AGREEMENT
[Windmill Farms Site and Hospital Site]
This PROPERTY EXCHANGE AGREEMENT ("Agreement") is entered into
effective as of , 1995 ("Effective Date"), by and among the
CITY OF CHULA VISTA, a municipal corporation ("City"), the
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, a public body,
corporate and politic ("Agency"), and the SWEETWATER UNION HIGH
SCHOOL DISTRICT ("District") with reference to the following facts:
A. Agency owns certain unimproved real property located at
Third Avenue and Alvarado Street, in the City of Chula Vista, State
of California, comprised of approximately 2.63 acres, as more
particularly described on Exhibit A attached hereto and
incorporated herein by this reference (the "Windmill Farms Site") .
The appraised value of the Windmill Farms site was recently
determined to be $1,375,000.
B. District desires to acquire the Windmill Farms ,Site for
purposes of developing a new administrative headquarters for itself
and possibly other public agencies; such project (the "District
Headauarters Proiect") might also include privately used commercial
or office space.
C. District owns certain unimproved real property located at
the east side of Medical Center Drive, between East Naples Court
and Medical Center Court, in the city of Chula Vista, State of
California, comprised of approximately 30.06 acres, as more
particularly described on Exhibit B attached hereto and
incorporated herein by this reference (the "Hospital Site"). The
appraised value of the Hospital site was recently determined to be
$1,920,000.
D. Agency desires to acquire the Hospital site for purposes
of donating such property to the State of California Department of
Veterans Affairs (the "CDVA") to be developed and operated by the
CDVA as a 400 bed, congregate care, veterans home facility (the
"Veterans Home Proiect").
E. The Agency and the city are currently negotiating an
agreement with the CDVA in order to finalize the terms and
conditions for the proposed donation of the Hospital site to the
CDVA for the development of the Veterans Home Project (the
"AaencvlCDVA Land Donation Aareement").
F. In order to account (approximately) for the difference in
the appraised values of the Windmill Farms Site and the Hospital
Site, the District has requested that the City provide the District
with land suitable for the development of a new District corporate
yard facility (a "District Corporate Yard site"), or other suitable
consideration. The city has been seeking a suitable site for its
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own new corporate yard facility and is willing to. accommodate the
District's request on the terms and conditions set forth herein.
G. In order for the Agency to obtain the Hospital Site for
its intended purposes, for the District to obtain the Windmill
Farms site for its intended purposes, to coordinate the orderly and
appropriate development of the properties, and to provide the
District with the District Corporate Yard Property, the parties
desire to (1) exchange the windmill Farms site for the Hospital
Site, (2) establish a mechanism to provide the District with the
District Corporate Yard Property and other consideration in order
to account (approximately) for the difference in value between the
exchanged properties, and (3) agree upon certain project
development contingencies, timelines and standards, all as more
specifically set forth in this Agreement, and subject to the terms
and conditions hereof.
NOW, THEREFORE, in consideration of the above recitals, the
covenants set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which the. parties
hereby acknowledge, the parties hereby agree as follows:
1. Aqreement to Exchanqe Properties.
1.1 In General. Subject to the terms and conditions set
forth herein (a) District agrees to convey all of its right, title
and interest in and to the Hospital site to the Agency, or its
designee; and (b) Agency agrees to convey all of its right, title
and interest in and to the Windmill Farms Site to the District, or
its designee.
1.2 Reversion Riqhts. District acknowledges and agrees that
the Agency's sole interest in exchanging the Windmill Farms site
for the Hospital Site is so that the Agency can donate the Hospital
Site to the CDVA, and the CDVA can develop such property into the
Veterans Home Project. Accordingly, the parties agree that the
form Grant Deeds effecting the property exchange contemplated
hereby shall contain appropriate reversionary language and
conditions such that in the event that the Hospital site is
transferred to the CDVA pursuant to the terms of this Agreement
and, for whatever reason, the Veterans Home Project is not funded
and developed thereon (the "Property Reversion Event"), title to
the Hospital site shall revert back to the District and title to
the Windmill Farms site shall revert back to the Agency.
Furthermore, in the event that the Property Reversion Event occurs,
the Agency and the District agree to use their mutual best efforts
to take any and all additional necessary and appropriate steps to
return title to the Hospital site to the District and to return
title to the Windmill Farms site to the Agency. In the event that
the Property Reversion Event does not occur within the time
specified by the Grant Deed reversionary language, or the Agency
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and the District otherwise ,agree, the reversionary interests
retained by the parties in the Windmill Farms site and the Hospital
site, respectively, shall be released, and fee title thereto shall
permanently vest with the party acquiring title hereunder.
2. Timinq for Exchanqe: Escrow.
2.1 Openinq of Escrow. Within three (3) business days after
execution of this Agreement by both parties, Agency shall deliver
a fully executed copy of this Agreement into escrow ("Escrow") with
Spring Mountain Escrow Company, 296 H Street, suite 201, Chula
vista, Ca. 91910, ("Escrow Aqent"). The parties hereby
designate, authorize and instruct Escrow Agent to act in such
capacity pursuant to the terms of this Agreement. "Openinq of
Escrow" shall be the date Escrow Agent receives such Agreement.
Escrow Agent shall deliver written confirmation of the Opening of
Escrow pursuant to the terms hereof within three (3) business days
after such receipt.
2.2 Escrow Instructions. This Agreement shall constitute
initial escrow instructions to Escrow Agent. The parties shall
execute any additional escrow instructions. reasonably required by
Escrow Agent to consummate the transaction provided for herein;
provided, however, such additional escrow instructions shall not
modify the provisions of this Agreement, unless such instructions
(a) state the modification in full, and (b) are signed by both
parties.
2.3 Deliveries to Escrow.
2.3.1 Grant Deeds. Prior to Close of Escrow (a) Agency
shall deliver to Escrow a fully executed and notarized Grant Deed
in substantially the form attached hereto as Exhibit C (the
"Windmill Farms site Grant Deed"); and (b) District shall deliver
to Escrow a fully executed and notarized Grant Deed in
substantially the form attached hereto as Exhibit 0 (the "Hospital
site Grant Deed"). The "transferee" on each such Grant Deed shall
be left blank. Prior to Close of Escrow ,for the Hospital Site,
Escrow Agent shall complete the Grant Deeds. The transferee shall
be designated pursuant to unilateral Escrow instructions to Escrow
Agent from District, with respect to the Windmill Farms Site Grant
Deed, and from Agency, with respect to the Hospital site Grant
Deed.
2.3.2 Deliverv of Propertv Information. within ten (10)
days after Opening of Escrow, each party agrees to deliver to the
other complete copies of the following items relating to the
property owned by the delivering party:
(a) Copies of any existing or contemplated
agreements relating to the use or maintenance of the property.
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(b) Copies of any existing property survey(s) within
the party's possession or of which the party is aware and
which is reasonably available.
(c) Copies of any existing report(s) relating to the
physical condition of the property within the party's
possession or of which the party is aware and is reasonably
available.
2.3.3 Other. Prior to the Closing Date specified in
section 2.4, each party shall timely deliver to Escrow all funds
and documents required of such party in order to Close Escrow
pursuant to the terms of this Agreement, including, but not limited
to, prorated amounts and other payments required under this
Agreement.
2.4 Close of Escrow. "Close of Escrow" means the date
Escrow Agent records the Grant Deeds in favor of District and
Agency, respectively. Close of Escrow shall occur on the date
("Closina Date") no later than three (3) days after the 4ate that
(a) all conditions to Close of Escrow, as set forth in sections 2.5
and 2.6 hereof, are satisfied or waived; and (b) all funds and
documents required hereunder are deposited in Escrow; but (c) in no
event later than December 1, 1995, unless otherwise agreed by the
parties in writing. The parties acknowledge that a timely Close of
Escrow on or before the specified Closing Date is a material term
of this Agreement for the benefit of Agency in light of Agency's
need to accommodate the needs and demands of CDVA regarding the
donation of the Hospital site by the Agency to CDVA. Accordingly
if the Escrow does not close on or before the Closing Date and if
the Closing Date has not been extended by written instructions
signed by the Agency, then Agency shall have the unilateral right
to terminate this Agreement and the Escrow by delivering written
notice to Escrow Agent (with a copy to the other party), in which
event neither party shall have any further obligation hereunder;
provided, however, any defaulting party may still be found liable
for consequential damages to a non-defaulting party.
2.5 Aaencv's Conditions to Close of Escrow. Close of Escrow
shall be subject to satisfaction of each of the following
conditions precedent, which are for the benefit of the Agency:
(a) Satisfaction of Conditions Precedent in Aaencv/CDVA
Land Donation Aareement. All conditions precedent to the
obligation of the Agency to donate the Hospital site to the CDVA,
as set forth in the Agency/CDVA Land Donation Agreement, shall have
been satisfied or waived, in accordance with the terms and
conditions thereof. The determination of when all such conditions
have been satisfied or waived shall be made by Agency in its sole
discretion.
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(b) Title Matters. Agency's and CDVA's approval of a
Preliminary Title Report for the Hospital Site, and the commitment
of the Title Insurer to issue an owner's Title Insurance Policy for
such property, in accordance with such report, in a form and with
endorsements approved by Agency and CDVA in their sole discretion,
all as more particularly set forth in Section 3 hereof, below.
(c) Approval of the Phvsical Condition of the Propertv.
Agency's and CDVA's approval, in their sole discretion, of the
physical and environmental conditions of the Hospital Site, the
items delivered by District pursuant to section 2.3.2, above, the
feasibility of acquisition, development, improvement, operation,
maintenance and use of the Hospital site for Agency/CDVA intended
purposes, and the status of approval of any and all required
financing and development entitlements. In order to conduct its
feasibility review, Agency and CDVA shall have the right, after
Opening of Escrow, to enter the Hospital Site, pursuant to the
terms and conditions of section 4.5 hereof, below.
(d) District's Pav-off of Escrow Fees and Monetarv Liens
on Hospital Site. District's payment into Escrow of (1) any and
all required prorations, Escrow fees and costs, as provided in
Section 2.10 hereof; and (2) amounts necessary to reconvey any and
all monetary liens against the Hospital Site, as provided in
Section 2.11 hereof, below.
(e) Completion of CEOA Analvsis. Completion of any and
all analysis and actions with respect to this transaction required
pursuant to the California Environmental Quality Act.
2.6 District's Conditions to Close of Escrow. Close of
Escrow shall be subject to satisfaction of each of the following
conditions precedent, which are for the benefit of the District:
(a) OPSC Approval. Approval of the property exchange by
the State Office of Public School Construction in order to obtain
the removal of the State's lien against the Hospital site.
(b) Title Matters. District's approval of a Preliminary
Title Report for the Hospital Site, and the commitment of the Title
Insurer to issue an owner's Title Insurance Policy for such
property, in accordance with such report, in a form and with
endorsements approved by the District in its reasonable discretion,
all as more particularly set forth in section 3.2 hereof, below.
(c) Approval of the Phvsical Condition of the Property.
District's approval, in its reasonable discretion, of the physical
and environmental conditions of the Windmill Farms Site, and the
items delivered by Agency pursuant to Section 2.3.2 hereof, above.
In order to conduct its review of the physical condition of the
site, District shall have the right, after Opening of Escrow, to
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enter the Windmill Farms site, pursuant to section 4.5 hereof,
below.
(d) Aqencv's Pav-off of Escrow Fees and Monetarv Liens
on Windmill Farms site. Agency's payment into Escrow of (1) any
and all required prorations, Escrow fees and costs, as provided in
sections 2.10 hereof; and (2) amounts necessary to reconvey any and
all monetary liens against the Windmill Farms Site, as provided in
Section 2.11 hereof, below.
(e) Completion of CEOA Analvsis. Completion of any and
all analysis and actions with respect to this transaction required
pursuant to the California Environmental Quality Act.
2.7 Satisfaction. Waiver of Conditions. Any party's
approval, wherever required to satisfy a condition, shall be
evidenced by written notice delivered to Escrow Agent (with a copy
to the other party).
2.8 Diliqence: Cooperation. Each party agrees to,exercise
due diligence in satisfying each and every condition to Close of
Escrow for which such party is responsible. Each party agrees to
cooperate with the other party in satisfying those conditions to
Close of Escrow for which such other party is primarily
responsible.
2.9 Completion of Documents. Escrow Agent is authorized:
to insert the Closing Date and otherwise complete the documents
deposited in Escrow, where appropriate and consistent with this
Agreement.
2.10 Prorations. Escrow Fees and Costs.
2.10.1 Prorations. The following items shall be
prorated in Escrow, as of the date of Close of Escrow: real estate
taxes, based on the most recent information available in the office
of the taxing entity. All prorations shall be made on the basis of
a 30-day month and a 360-day year, unless the parties otherwise
agree in writing.
2.10.2. Escrow Fees and Costs. For purposes of
allocating escrow fees and closing costs: (a) Agency shall be
deemed the "Seller" with respect to the Windmill Farms site and the
"Buyer" with respect to the Hospital Site; and (b) District shall
. be deemed the "Seller" with respect to the Hospital site and the
"Buyer" with respect to the Windmill Farms Site. Each party will
be responsible for paying customary "Seller" and "Buyer" escrow
fees and closing costs with respect to the property transfers for
which they are assuming such roles. Accordingly, "Seller" in each
case will pay: (1) the County Documentary Transfer Tax, in the
amount Escrow Agent determines to bs required by law; (2) the cost
of the Title Policy described in Section 3.2; (3) one-half Escrow
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Agent's escrow fee (or Escrow cancellation charges, if any); and
(4) all other customary Seller Escrow charges and expenses. "Buyer"
in each case will pay: (a) any and all charges relating to Buyer's
financing of the purchase; and (c) one-half of Escrow Agent's
escrow fee (or Escrow cancellation charges, if any).
Notwithstanding the foregoing, in the event of a default by Agency
or District hereunder, all cancellation and other escrow charges
shall be paid by the defaulting party.
2.11 Existinq Encumbrances. Agency and District shall be
responsible for payment into Escrow of any and all funds necessary
to reconvey any and all monetary liens and encumbrances with
respect to the Windmill Farms site and the Hospital Site,
respectively, other than assessments and property taxes and those
liens which are Permitted Exceptions pursuant to section 3.2
hereof. Escrow Agent is authorized to secure beneficiary demands
and requests for reconveyance of such monetary liens, and each
property shall be transferred free from such liens at Close of
Escrow.
2.12 Distribution of Funds and Documents. At the 'Close of
Escrow, Escrow Agent shall do each of the following:
(a) Pavrnent of Encumbrances. Pay the amount of those
monetary liens to be removed at Close of Escrow using the funds
deposited in Escrow by the parties responsible therefor pursuant to
section 2.11, above.
(b) Recordation of Documents. Submit to the County
Recorder of San Diego County the Grant Deeds for the properties and
each other document to be recorded under the terms of this
Agreement, or by general usage, and, after recordation, cause the
County Recorder to mail the Grant Deeds to the party acquiring
rights thereunder.
(c) Non-Recorded Documents. Deliver by united States
mail (or hold for personal pickup, if requested): (1) the Title
Policies to the insured party; each other non-recorded document
received hereunder to the payee or person acquiring rights
thereunder or for whose benefit said document was acquired.
3. Title Matters.
3.1 preliminarv Title Report.
(a) Deliverv to Buver. As soon as possible after
Opening of Escrow, Escrow Agent shall provide to each party a
preliminary title report ("Preliminary Title Report") with respect
to the property to be acquired thereby, issued by First American
Title Company, or another mutually acceptable title insurer ("Title
Insurer") reflecting the status of title to such property. The
Preliminary Title Reports shall be deemed received by each party on
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the date of personal delivery or three (3) days after mailing by
Escrow Agent.
(b) Time to Obiect. District shall have ten (10) days
and Agency shall have thirty (30) days (or more if required by
CDVA), respectively, after the date of receipt of their Preliminary
Title Reports to notify Escrow Agent (with a copy to the other
party), in writing, of its objection to the legal description or
any matters indicated as exceptions in such report.
(c) Time to Eliminate Exceptions. If a reviewing party
objects to one or more exceptions indicated in the Preliminary
Title Report, the other party may cure such objection by
delivering, within ten (10) days after receipt of such objection,
to Escrow Agent (with a copy to the objecting party) written
agreement to eliminate such exceptiones) by the Closing Date.
(d) Riqht to Cancel or Perform. If the party receiving
a valid objection to title does not agree to cure such objection,
the objecting party shall elect one of the following, by d~livering
written notice to Escrow Agent (with a copy to the other party)
within five (5) days after receipt of an election not to cure title
or expiration of the 10-day response period described in (c) above
(whichever occurs first): (1) to waive its objections, take title
subject to such exceptions, and proceed with Close of Escrow; or
(2) to terminate this Agreement and the Escrow, in which event
neither party shall have any further obligation hereunder.
3.2 Title Insurance. As of Close of Escrow, Title Insurer
shall issue, or be committed to issue, at the sole cost of the
"Seller" of each property, a standard form ALTA Owner's Title
Insurance Policy ("Title Policy") insuring the acquiring party's
title to the property in the amount of $1,375,000 with respect to
the Windmill Farms site, and $1,920,000 with respect to the
Hospital site, subject only to the following permitted exceptions
("Permitted Exceptions"): (a) current, non-delinquent real estate
taxes and assessments; (b) the lien of supplemental taxes, if any,
assessed pursuant to Chapter 3.5 of the California Revenue and
Taxation Code; (c) the matters set forth in the Preliminary Title
Report and approved by the acquiring party pursuant to section 3.1
hereof; (d) any other matters approved in writing by the acquiring
party; (e) with respect to the Windmill Farms Site, the non-
discrimination covenants required by California Health and Safety
Code sections 33435 and 33436; (f) any reversionary interests
retained by the transferring party as set forth in the Grant Deeds
transferring the properties; and (g) matters excepted or excluded
from coverage by the printed terms of the Title Policy's standard
form.
"c
.)-/1
4. Additional Obliqations.
4. 1. ci tv contribution Towards Acauisition of District
Corporate Yard Propertv. The City agrees to contribute towards the
acquisition of a District Corporate Yard site on the following
terms and conditions:
(a) The City shall use its best efforts to specifically
designate property which shall comprise or otherwise include a
District Corporate Yard site acceptable to the District within six
(6) months of the Effective Date of this Agreement. The parties
shall agree upon such designation in writing. The property so
designated shall be referred to hereinafter as the "Desiqnated
District Corporate Yard site".
(b) The parties acknowledge and agree that the
properties currently under consideration as possible locations for
the District Corporate Yard Site are properties upon which the City
is contemplating locating its own new corporate yard facility (the
"Citv Corporate Yard"). Such properties include (1) poJ:tions of
certain real property located on Maxwell Road in Chula vista
currently owned by SDG&E or Hazard Contracting Inc. (the "Maxwell
Road Sites"); and (2) portions of up to 50 acres of undeveloped
real property located within Phase II of the otay Rio Business Park
(the "otav Rio Site").
(c) If the Designated District Corporate Yard site is
comprised of a portion of a larger property upon which the City is
contemplating locating the City Corporate Yard, then the city
agrees as follows:
(1) The city shall use its best efforts to acquire
the property that includes the Designated District Corporate Yard
Site within one (1) year of the parties designation thereof;
provided, however, the District agrees to reasonably consider any
and all reasonable proposals by the City to extend this time frame
to the extent required by site acquisition complications,
requirements and/or city budgetary constraints.
(2) If the City acquires such property the City
shall transfer up to a $545,000 fair market value interest in the
Designated District Corporate Yard Site to the District at no cost
to the District. If the fair market value of the interest
transferred exceeds $545,000, the District shall pay the City cash
(or other mutually acceptable consideration) in an amount equal to
such excess value.
(3) The City shall cooperate with the District so
as to accommodate a design and allocation of the site(s) that best
meets both agencies' requirements. If the Designated District
Corporate Yard site is a part of the otay Rio Site, the City
further agrees to provide two access roads to such site and to
:/
3-/5
explore the feasibility of having one such access road proceed
north, directly to otay Valley Road.
(d) If the Designated District Corporate Yard Site is
not part of a larger property upon which the city is contemplating
locating the city Corporate Yard, the District shall be primarily
responsible for acquiring such property. Notwithstanding the
foregoing, the City shall reasonably cooperate with such
acquisition, and shall contribute up to $545,000 in cash (or other
mutually acceptable consideration) towards the purchase price of
such property.
(e) If, for whatever reason, neither the city nor the
District acquires a District Corporate Yard site within three (3)
years of the Effective Date of this Agreement, the City agrees to
pay the District $545,000 in cash (or other mutually acceptable
consideration).
(f) Notwithstanding the foregoing, the City shall have
no obligation to contribute towards the costs of any neces~ary site
due diligence, site remediation, site preparation, construction of
improvements, or any and all other costs related to the acquisition
and development of a District Corporate Yard site. However, to the
extent the City does contribute towards District Corporate Yard
Site acquisition and development costs, such costs may be applied
to reduce, dollar for dollar, any obligation of the City to the
District hereunder.
(g) District acknowledges and agrees that any property
acquired by the City for the District, or by the District directly
with a contribution by the City, which is acquired in satisfaction
of the City's obligations hereunder shall be acquired by the
District with no representations or warranties from the city as to
such property's physical condition or suitability for District's
intended use.
4.2 Development of the Windmill Farms Site.
4.2.1. Aaencv contribution to District Headauarters
Proiect. In the event that the District develops the Windmill
Farms Site into the District Headquarters Project, the Agency, at
no cost to the District, will contribute financing, or will arrange
for the contribution of financing, for the District's lease or debt
service payments for such project (the "Agency District
Headquarters Project Contribution") in an amount not to exceed Five
Hundred Thousand Dollars ($500,000). The Agency District
Headquarters Project Contribution would be amortized over a period
of up to twelve (12) years (the "Agency Contribution Term"). The
maximum Agency District Headquarters Project Contribution payable,
both in the aggregate and in anyone year, shall not to exceed the
amount of tax increment generated by the District Headquarters
Project and received by the Agency in unrestricted funds during the
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3-/h .
Agency Contribution Term. Nothing in this section or this
Agreement shall have the effect of preventing the District from
subleasing a portion of the District Headquarters Project to a
private venture. In order to implement its obligations under this
Section, the Agency further agrees to negotiate with any merchant
builder that might contract with the District for the development
of the District Headquarters Project with respect to a lease
payment schedule which favors the District in the early years of
such lease.
4.2.2. Development Aqreement. In light of the Windmill
Farms site's location within a redevelopment project area, prior to
developing the Windmill Farms Site into the District Headquarters
or otherwise, District agrees to enter into an owner participation
agreement with the Agency in order to establish more specific
parameters for such development. District further agrees to
exercise good faith efforts to complete development of the site
within five (5) years after its acquisition thereof.
4.3 City Staff Cooperation in processinq Rezone. .City staff
will expedite processing, and presentation to City Council for due
consideration, of any District application for the rezoning of the
District property located at 1130 Fifth Avenue, Chula Vista, upon
which the District's administrative offices are currently located.
Due consideration will be afforded the District's preferred zoning
of the subject site.
4.4 District's Aqreement to Cooperate. Consistent with the
terms of this Agreement and the Agency CDVA Land Donation
Agreement, the District shall exercise its best efforts in order to
structure the Hospital site property transfer in a manner
consistent with the proposed donation of the property by the Agency
to the CDVA and the development thereby into the Veterans Home
Project.
4.5 Access to Propertv: Indemnity. Between the date of
Opening of Escrow and the Close of Escrow (or earlier termination
of Escrow), upon reasonable notice, each party shall allow the
other (and its designees) reasonable access to the property to be
acquired thereby, for the purpose of inspecting, surveying and
testing the same. Each party (the "Accessing Party") which so
accesses the other party's property, shall indemnify, hold
harmless, protect and defend the party whose property is being
accessed, and the property, from and against any and all liens,
claims, liability, loss, damages, costs, expenses, suits or
judgments for labor performed or materials furnished to or for the
Accessing Party, or for injuries to person or property damage,
arising out of any accident or occurrence in any way connected with
entry upon, testing or inspection of the property by the Accessing
Party (or its designees).
4.6 CEOA Work. Agency agrees to be the lead agency and to
prepare and file any and all required CEQA docUments and notices in
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-
connection with the exchange of the Windmill Farms Site and the
Hospital site (collectively, the "CEQA Work"). The CEQA Work shall
be prepared at Agency expense; provided, however, District agrees
to promptly reimburse the Agency for any and all reasonable out of
pocket costs incurred by the Agency in connection with the CEQA
Work to the extent related to the District's acquisition and
proposed development of the Windmill Farms site.
5. Representations and Warranties.
5.1 In General. Each party, with respect to itself, agrees,
represents and warrants as of the date of execution of this
Agreement, and as of Close of Escrow, as follows:
(a) Authority. Such party has full legal right, power and
authority to execute and fully perform its obligations under this
Agreement, without the need for any further action; and the persons
executing this Agreement and other documents required hereunder on
behalf of such party are the duly designated agents thereof and are
authorized to do so.
(b) Investiqation of Property. Where a party is
acquiring property hereunder (an "Acquiring Party"), with respect
to the property being acquired thereby, the Acquiring Party will
make an independent investigation, to the extent such party deems
necessary or appropriate, concerning the physical condition
(including the existence of hazardous materials), value,
development, use, marketability, feasibility and suitability of the
property, including (but not limited to) land use, zoning and other
governmental restrictions and requirements. Acquiring Party is
acquiring the property "AS IS," in its present state and condition
solely in reliance upon Acquiring Party's own investigation, and no
representations or warranties of any kind, express or implied, have
been made by the party conveying the property (a "Conveying
Party"), or its representatives, except as expressly set forth in
this Agreement Each Acquiring Party unconditionally releases each
Conveying Party from and against any and all liability to Acquiring
Party, both known and unknown, present and future, for any and all
damages, losses, claims and costs (including attorneys fees),
arising from the physical condition of the property being acquired
thereby (including, without limitation, the existence of hazardous
materials), or the property's non-suitability for Acquiring Party's
intended use. With respect to this Section 5.1(b) each Acquiring
Party waives the provisions of California civil Code Section 1542
which provides: "A general release does not extend to claims which
the creditor does not know or suspect to exist in his favor at the
time of executing the release which if known by him must have
materially affected his settlement with the debtor."
(c) Real Estate Commissions. No brokers or finders have
been employed or are entitled to a commission or compensation in
connection with this transaction. Each party agrees to indemnify,
protect, hold harmless and defend the other party from and against
-n-
3 ~ IJ'
any obligation or liability to pay any such commission or
compensation arising from the act'or agreement of the indemnifying
party.
5.2 Survival of Warranties. The representations and
warranties given by each party in this section 5, and all
obligations to be performed under the terms of this Agreement after
Close of Escrow, shall survive the Close of Escrow and delivery of
the Grant Deed to the Acquiring Party.
6. General Provisions.
6.1 Assiqnment. No party may assign this Agreement or any of
its rights hereunder without the prior written consent of the other
party which consent shall not be unreasonably withheld. Any
purported assignment which has not been consented to by Seller as
provided hereunder shall be null and void. Notwithstanding the
foregoing, Agency shall have the absolute right without Districts
consent, to assign its rights to acquire the Hospital site to the
CDVA.
6.2 Attornevs' Fees. If ei ther party - commences legal
proceedings for any relief against the other party arising out of
this Agreement, the losing party shall pay the prevailing party's
legal costs and expenses, including, but not limited to, reasonable
attorneys' fees and costs as determined by the court. The
prevailing party shall be that party receiving substantially the
relief sought in the proceeding, whether brought to final judgment
or not.
6.3 Computation of Time Periods. All periods of time
referred to in this Agreement shall include all Saturdays, Sundays
and state or national holidays, unless the period of time specifies
business days, provided that if the date or last date to perform
any act or give any notice or approval shall fall on a Saturday,
Sunday or state or national holiday, such act or notice may be
timely performed or given on the next succeeding day which is not
a Saturday, Sunday or state or national holiday.
6.4 Counterparts. This Agreement or any escrow instructions
pursuant to this Agreement may be executed in multiple copies, each
of which shall be deemed an original, but all of which shall
constitute one Agreement after each party has signed such a
counterpart.
6.5 Entire Aqreement. This Agreement, together with all
exhibits attached hereto and other agreements expressly referred to
herein, constitutes the entire agreement between the parties with
respect to the subject matter hereof. All prior or contemporaneous
agreements, understandings, representations, warranties and
statements, oral or written, are superseded.
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3-/9
6.6 Exhibits. All exhibits referred to herein are attached
hereto and incorporated herein by reference.
6.7 Further Assurances. The parties agree to perform such
further acts and to execute and deliver such additional documents
and instruments as may be reasonably required in order to carry out
the provisions of this Agreement and the intentions of the parties.
6.8 Governinq Law. This Agreement shall be governed,
interpreted, construed and enforced in accordance with the laws of
the state of California.
6.9 Headinqs. The captions and paragraph headings used in
this Agreement are inserted for convenience of reference only and
are not intended to define, limit or affect the construction or
interpretation of any term or provision hereof.
6.10 Modification. Waiver. No modification, waiver,
amendment or discharge of this Agreement shall be valid unless the
same is in_writing and signed by both Buyer and Seller. Tç.e escrow
instructions shall be considered a part of this Agreement, and no
provision in said escrow instructions shall supersede or contradict
the provisions of this Agreement, unless the parties agree in
writing to such change.
6.11 Notice. Notice to either party shall be in writing and
either personally delivered or sent by certified mail, postage
prepaid, return receipt requested, addressed to the party to be
notified at the address specified herein. Any such notice shall be
deemed received on the date of personal delivery to the party (or
such party's authorized representative) or three (3) business days
after deposit in the U.S. Mail, as the case may be.
Citv/Aqencv Address for Notice: District Address for Notice:
276 Fourth Avenue 1130 Fifth Avenue
Chula Vista, CA 91910 Chula Vista, CA 91910
Attn: Community Development Attn: Andy Campbell
Director and City Attorney
Either party may change its address for notice by delivering
written notice to the other party as provided herein.
6.12 Severabilitv. If any term, provision, covenant or
condition of this Agreement is held to be invalid, void or
otherwise unenforceable, to any extent, by any court of competent
jurisdiction, the remainder of this Agreement shall not be affected
thereby, and each term, provision, covenant or condition of this
Agreement shall be valid and enforceable to the fullest extent
permitted by law.
~
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.,3-,.20
6.13 Successors. All terms of this Agreement shall be
binding upon, inure to the benefit of, and be enforceable by the
parties hereto and their respective heirs, legal representatives,
successors, and assigns.
6.14 Time. Time is of the essence of each provision of this
Agreement, including without limitation all time deadlines for
satisfying conditions and Close of Escrow.
[NEXT PAGE IS SIGNATURE PAGE]
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IN WITNESS WHEREOF, the parties have entered into this
Agreement as of the date first written above.
AGENCY: REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA, a public
agency corporate and politic
By:
Shirley Horton, Chairman
ATTEST
Secretary
CITY: CITY OF CHULA VISTA, a municipal
corporation
By:
Shirley Horton, Mayor
ATTEST
City Clerk
APPROVED AS TO FORM BY
Bruce M. Boogaard
City/Agency Attorney
DISTRICT: SWEETWATER UNION HIGH SCHOOL
DIST~ .
BY:~
Robert Gr~ ,
President, B~ustees
By: ~tn
Dr. Edward Brand,
District Superintendent
m:\home\attorney\vethome2.agr
..J.».-r
.
3-2.:t-
EXHIBIT A
Windmill Farms site
( PlatMaej
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This page blank.
3 - z..tf
-
EXHIBIT A
Windmill Farms Site
THE WESTERLY 135.00 FEET OF THE SOUTHERLY 120.78 FEET OF LOT 6 OF THE
SUBDIVISION OF QUARTER SECTION 138, RANCHO DE LA NACION, MADE BY S.J.
BAIRD, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF
CALIFORNIA, ACCORDING TO MAP THEREOF NO. 185, FILED IN THE OFFICE OF
THE COUNTY RECORDER OF SAID SAN DIEGO COUNTY, FEBRUARY 28, 1887.
PARCEL 2:
That portion of Lot 6 of the Subdivision of Quarter Section 138, R/.:::::::: DI: LA
NACION,in the City of Chula Vista, County of San Diego, State of California,
made by S. J. Baird, according to Map thereof No. 185, filed in the Office of
the County Recorder of San Diego County, February 28, 1887, desc~ibed as
follows:
Beginning at the DIOst Northerly corner of the Northerly 60 feet of the
Westerly 115 feet of said Lot 6; thence along the Northerly line of said lot,
North 71°00' East, 140 feet to the most Southerly corner of that 6G-foot right
of way for Church Street, described in a deed to the City of Chula Vista,
recorded April 25, 1929 in Book 1612, page 449 of Deeds; thence along the
Southerly prolongation of the West~rly line of said right of way, South
19°02' 10" East, 195 feet to the Northerly line of the Southerly 135.78 feet of
said Lot 6, said point being the TRUE POINT OF BEGINNING; thence
Southwes t~rly, in a straight line, to a point in the Northerly line of the
Southerly 120.78 fe~t of said Lot 6, distant along said line North 71° East,
240 feet from the Westerly line of said lot; thence Westerly, along said
Northerly line of saId Southerly 120.78 feet, 105 feet to the intersection
with the Easterly line of the Westerly 135.00 feet of said Lot 6; thence
Southerly, along said Easterly line of said Westerly 135 feet, a distance of
120.78 feet to the Southerly line of said Lot 6; thence East~rly, along said
Southerly line of said Lot 6; a distance of 180 feet; thence Northerly,
parallel with the West~rly line of aaid lot, 120.78 feet; thence Westerly,
along the Northerly line of the Southerly 120.78 feet of said Lot 6,60 feet;
thence Northerly, parallel with the Westerly line of said Lot 6 to the Point
of Beginning.
PARCEL 3:
Lot 3 of VAN DEEVER and MERRITT TRAcr, in the City of Chula Vista, County of
San Diego, State of California, according to Map thereof No. 1287, filed in
the Office of the County R~corder of San Diego County on September 22, 1910.
EXCEPTING the South 1 foot thereof heretofore conveyed to the City of Chula
Vista, by deed recorded in Book 1220, page 127 of Deeds.
-A-2-
3-:2-5
EXHIBIT A
Windmill Farms site
- h,
Lots 4 and S of VAN-DEVEER AND HERRITT TRACT, in the City of Cbula Vista, County
of San Diego, State of California, according to Map thereof No. 1287, filed in
the Office of the County Recorder of San Diego County, September 22, 1910.
~
3 -2~
EXHIBIT B
Hospital site
[ Plat Map )
641-01 . ¡
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EXHIBIT B
Hospital site
h ...rther~ m.oo tee. of tile 1Ic>zotIutån ~'ot ~ "oUoa
f7 of IWIØIÐ æ u. IlACIOIf, fa tb8 ~v of loa meeo, 1Ita'- of
ClaUtDm1&, -JIU.n& to ~ MD,p --.." 110. 166. 8II4e by ~ 8.
1Iwa'tn, 1'1184 III - otti... of tb8 OINDt7 lItoo",,1' of .ai4 88n 111.-
: ~, ICq n, 18$. '0801'11184.. ~ bQfto N4 beftby _a.
. Pñof'lll..40e4: .,...,., b.....:,','.....,""..; '.
!"':' ,,;;; ~C/I'ther1~ m;~';oet "t' tho irorti.~~;t' ~ar;"r or O:U8rto~' :
:SoCUon 61 or RANCIIO DE LA NAClOU. Sn U.oCovnt, or San Dioso.
$tate or 'California, aocord111g to thø Nap th,,",or Ifo. 166, 8IOdo b1
0001'60 8. Morl'11 1, tUod 1.\ tho Ottha .ot tile C..unty lIooordor of
...ld BaA 1110£0 Count7, Jl 7 11, 186:J. . ,
'11>0 sranto.. herdn ".OI'YO. to ',oroolt and her aucc~"orø and
a.alana "U"""lIto, OftI'. undor, U"OIl and aor~.o .a1d NortherS, m.oo
teat or cUd Northa..t ~al'tol' or aUd ('UOl'tOI' SooUon 67. to 0'11.
conltl'll.t. maIntain. o¡¡orata, repaIr.' I'e:>o", chinL"O tho 11... or and
"QOVO ('traUMU. {loln. 0:oob1u Unol anel othol' equ1þ...,nt to.. thO
traneDh" on and ,.a..aee or ".t.øl', eloctI'Se1t,. PI, and for a.verase
PUI'¡¡OOOG, ond an oalOllOllt tur I'oad ¡,ul'¡.o... v1~ rirt ot 111&1'00.
anel eGl'on to lnAt.alJ. 'oOll.troot, ropair and_lntl n aild ut111\100
alld rOlod. 'lOOITHiIJI WITH tho r1E,11t t,o dod1~ato .81d 0880I8llDt..
&l1d rocer"ed oaOoDOnt. ./1811 bo or . UX1JIIUII II1dtll or 30.00
toet. and tho Ol<lIot 1001ltJ,on or .ald 0.""18011\8 oh811 bo aubJeoc co
the a~¡:rovol or tllo JIoard ot TrIIateo. or thO Iwoot>rato..' Union Hl&11
Schoo Þ1;¡tr1~, .on not to unN.eonaba, lntorfol'O With thO v.a ¡'f:
or tIN propol't, tor collo01 pUI' IODOO. . Sa1d rooorved 0080...nto fiN tor "he bcnotH or ond appur~"nant .:
to tho Nol't!IC!tUlt c:ual'tur 8nd the North lfalt or t:w 8outhoøn (,lIOrtCll'. .
at .81d c;¡,ortor 8o"tlon ¿'I, Ol<co ltln:; tIKI Nortnorll m.OO ruet, ond
,,11011 1nu.... tþ tho "".",Ut ot "lid ..., bo u"od b, . 1 J>Ol'con. ..ho ...,
tlol'oa/'tol' ~o/IO ~ho ownor.. or eald appurtonant pl'°i;ert, 01' an,y perU
01' ¡lol'eSo",: ~h('l'(\or. "to
""--~-:-&~t:':.'" 'T"....: ~.._, .
.3 _:2f
~ ,
EXHrBrT C
Windmill Farms site Grant Deed
The final form of this document shall be inserted upon
(a) completion of neq.otiations with the California
state Department of ,Veterans Affairs and (b) approval
thereof by the CSDVA, the Agency and the District.
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"
This page blank.
3~30
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EXHIBIT D
Hospital site Grant Deed
The final form of this document shall ~e inserted upon
(a) completion of negotiations with the California
state Department of Veterans Affairs and (~) approval
thereof ~y the CSDVA, the Agency and the District.
-94-
.3 - 3/
This page blank.
5-3Ÿ
EXHIBIT B
HEALTH & SAFETY CODE SECTION 33433
"SUMMARY REPORT"
PROPERTY EXCHANGE AGREEMENT
CITY OF CHULA VISTA REDEVELOPMENT AGENCY
AND
SWEETWATER UNION HIGH SCHOOL DISTRICT
AGREEMENT BACKGROUND AND OVERVIEW
The City of Chula Vista Redevelopment Agency ("Agency") proposes to enter into a
Property Exchange Agreement ("Agreement") with the Sweetwater Union High School
District ("District"). The purpose of the Agreement is to contingently provide for the
Agency to acquire property necessary to donate to the State of California Department
of Veterans Affairs ("CDVA") to develop a Veterans Home Project. In exchange, the
Agreement contingently provides for the District to acquire from the Agency, the
property necessary to develop a new administrative headquarters, with perhaps other
privately used commercial or office space, plus other considerations in order to
account for the difference in values between the properties to be exchanged.
Included as Attachment 1 is the proposed Agreement with accompanying exhibits
which constitutes the relevant documents of the proposed sale.
The Agency owns certain unimproved real property located at Third Avenue and
Alvarado Street in the City of Chula Vista comprised of approximately 2.63 acres
("Windmill Farms site"). The Windmill Farms site has an appraised value of
$1,375,000. The District owns certain unimproved real property located along the
east side of Medical Center Drive, between East Naples Court and Medical Center
Court in the City of Chula Vista comprised of approximately 30.06 acres ("Hospital
site"). The Hospital site has an appraised value of $1,920,000. In order to account
for the difference in the appraised values of the Windmill Farms site and the Hospital
site ($545,000), the City/Agency is to provide the District with land suitable for the
development of a new District Corporate Yard Facility. Additionally, in order to allow
the District to develop the Windmill Farms site for its intended purposes, given the
current real estate market and in a manner consistent with the current zoning and
density requirements, the Agency is to provide an "Agency District Headquarters
Project Contribution" in a contingent amount of up to $500,000 over a not to exceed
period of twelve (12) years. The "contribution" is triggered only if the project creates
tax increment revenue to the Agency generated by development of the site.
Agencv Prooertv Descriotion
The subject property to be transferred by the Agency to the District is located
immediately adjacent (but not including) the northeast corner of Third Avenue and
Alvarado Street within the Town Centre I Redevelopment Project Area. The subject
property is currently vacant and wraps around the KFC drive-thru restaurant on the
corner, and has street frontage on Third Avenue, Alvarado Street and Church Avenue.
Third Avenue is an 80 foot-wide four-lane thoroughfare that serves the historic Chula
Vista downtown district. Of the total 114,612 square foot irregularly shaped site,
approximately 97,768 square feet are designated Commercial (APN 568-420-14, 15,
,;'-33
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Health and Safety Code Section 33433 "Summary Report"
Property Exchange Agreement
Redevelopment Agency and Sweetwater Union High School District
September 26, 1995 Public Hearing, Page 2
31 and 568-511-20) and the remaining 16,844 square feet are designated Residential
(APN 568-511-18 and 19). The commercial land use area has a General Plan
designation of Commercial Retail and a zoning designation of Central Commercial with
a Precise Plan Modifier (CC-P). The residential land use area has a General Plan
designation of Residential High (18-27 units/ac.) and a zoning designation of R-3,
Residential Apartments. The commercial land use designations allow development of
a wide range of improvements such as retail, professional offices, restaurants and
fast-food with drive-thru service. The residential land use designations allow
development of a multi-family project at a density of 18-27 dwelling units per acre.
However, by approval of a Conditional Use Permit, the residentially zoned portion
could be utilized for an office development.
DISCUSSION
Pursuant to Health and Safety Code Section 33433(a)(2)(B)(i-iv), the Agency is to
provide in this "Summary Report" the following four items:
1. The cost of the Agreement to the Agency.
2. The estimated value of the interest (land) conveyed by the Agency to the
District as determined at its "highest and best" use.
3. The estimated value of the interest conveyed by the Agency to the District as
determined by the "reuse" value subject to the covenants and conditions of the
Agreement, Any difference between the value in number 2 and number 3
requires an explanation by the Agency.
4. An explanation as to how the sale of property will assist in the elimination of
blight.
Item #1. Cost of Aareement to Aaency
Inasmuch as the Agreement provides for the rough equivalent value of land to be
exchanged between the parties as discussed above, the "cost" (as intended within the
Health and Safety Code) of the Agreement to the Agency is limited to the two
following items; A) the $500,000 "Agency District Headquarters Project
Contribution," and B) the associated staff costs for negotiating and implementing the
Agreement.
A. Agency District Headquarters Project Contribution
Pursuant to Section 4.2.1. of the proposed Agreement, the Agency is to contribute
financing toward the District's lease and/or debt service obligations on their
contemplated District Headquarters in an amount not to exceed $500,000. During
the course of negotiations of the Agreement, the District maintained that given the
3-atf
Health and Safety Code Section 33433 "Summary Report"
Property Exchange Agreement
Redevelopment Agency and Sweetwater Union High School District
September 26, 1995 Public Hearing, Page 3
current real estate market and site development density requirements, that a
contribution by the Agency is necessary in order to have a private developer construct
the Headquarters and additional "non-public" office/retail space on behalf of the
District.
Currently, the District estimates its need for office space at a new Headquarters
facility to be 30,000 square feet. However, given the current zoning of the property
(Central-Commercial and Residential Apartments) the Agency is desirous of a more
dense development of the 2.63 acre site than the 30,000 square foot office building
needed by the District. Therefore, in order to make it financially feasible for the
District to have the additional commercial and office space constructed on the site,
a contribution by the Agency is necessary. However, since this Agreement is
contingent upon the Agency completing negotiations for a Veterans Home Project
with the CDVA, the District has not proceeded with any in-depth studies or analysis
to determine the amount of additional "non-District" space that can be constructed
on the site. Therefore, the negotiated $500,000 amount is a "ceiling" figure, with the
actual amount of the contribution to be dependent upon the ultimate design and build-
out of the project.
The contribution by the Agency is triggered only if the project generates tax increment
revenue to the Agency. Since any District ownership portion of the project
development is exempt from property taxes, the only property taxes that will be
derived is from the "non-public" ownership portion. Additionally, the Agency's annual
contribution is limited to the actual tax increment received by the Agency in "non-
restricted" funds (after payment of the Low and Moderate Income Housing Fund
contribution of 20%). Therefore at this time, it is not feasible to determine or project
the actual amount of contribution to be provided by the Agency other than to say that
it will not exceed $500,000 or extend beyond 12 years, and will not ever exceed the
amount of actual "non-restricted" tax increment funds received from the project in any
given year.
Aaencv ProDertv ADDraisal
This request by the District for a contribution is supported by the appraisal completed
on behalf of the Agency dated November 11, 1994, by Anderson & Brabant,
Escondido, California. The following excerpt is from page 20 of the appraisal report:
"Our analysis of the market indicates that current development of the
property would not be feasible. It is likely that a prospective purchaser
of the property would consider delaying development until supply and
demand elements of the marketplace become more balanced which
would likely improve the chances of obtaining development financing.
A more stable market would result in a normal absorption pattern
conducive to reasonable profit projections which fuel investment real
estate development. The only current market participants for the
3-.3S
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Health and Safety Code Section 33433 "Summary Report"
Property Exchange Agreement
Redevelopment Agency and Sweetwater Union High School District
September 26, 1995 Public Hearing, Page 4
property would be a user or a speculator who would hold the property
for future development. However, it would be difficult to attract a user
due to the limited availability of development financing and the existing
supply of buildings that can be purchased at below replacement cost.
Consequently, the highest and best use of the subject property is to hold
for future development."
Therefore in conclusion, due to the existing market conditions, an economic
"incentive" by the Agency is necessary in order to attract the development financing
for such a project at this time. Additionally, the Agency is willing to provide such an
incentive in order to: 1) provide a mechanism for acquiring suitable property for a
Veterans Home project, 2) provide the stimulus for assisting the District to establish
their Headquarters within the Project Area and the "heart" of Chula Vista, 3) provide
the stimulus for complete build-out of the site with additional "non-public" uses in a
soft real estate market that will provide "spin-off" economic benefits to the City and,
4) eliminate a blighted site within the Project Area.
B. Staff Costs
The estimated costs for negotiating and implementing the Agreement is $15,000.
The Agency views this as a normal "cost of doing business" that is necessary to
accomplish the major goals of this transaction as provided above.
Item #2 Estimated Value of Aaency Property to be Conveyed at its Hiahest and
Best Use
The estimated value of the Agency's 2.63 acre Windmill Farms site is $1,375,000 or
$12/square foot. As indicated previously, this value was arrived at by an appraisal
prepared by Anderson and Brabant, on behalf of the Agency dated November 11,
1994. Utilizing the sales comparison approach, the appraisers arrived at the "highest
and best use" value based upon recent similar commercial land sales that were also
indicated to be similar in value of recent sales for multi-family residential land. As a
conclusion, the appraisers indicated that the unit value of the subject site is less than
$13.75/square foot and greater than $10.511square foot. Therefore, by simply
splitting the difference between the values, the $12/square foot value was
recommended.
Item #3 Estimated Value of Aaency Property to be Conveyed at its Reuse Value
The "reuse" value of the property is the same as the "highest and best use" value
($1,375,000). Since the Agency is not imposing any additional covenants, conditions
or restrictions on the property above and beyond the normal regular zoning
requirements, its value has not been diminished by additional development standards
or increased development costs. In other words, the "reuse" of the property in its
3- *'
Health and Safety Code Section 33433 "Summary Report"
Property Exchange Agreement
Redevelopment Agency and Sweetwater Union High School District
September 26, 1995 Public Hearing, Page 5
intended manner pursuant to the Agreement is consistent with development of the
property at its "highest and best use" value.
Item #4 ExDlanation of Elimination of Bliaht
This Agreement will have a positive affect on the overall stated redevelopment goal
of eliminating blight within the respective project areas. The currently vacant site has
been vacant since the late 1980's as a result of Agency acquisition actions taken to
consolidate irregular parcels under multiple ownerships that proved to be a major
impediment to development of this site as a prime commercial/office mixed use
project. Unfortunately, the local economy (as well as the nation as a whole) spiraled
into a long and deep recession shortly after the completion of the property
acquisitions; a recession in which, at least the state of California, is still suffering. As
discussed previously in this report and the appraisal, the current market conditions still
preclude the development of this site at its "highest and best use" because of the lack
of market demand and development financing for this type of project in this particular
market trade area. Therefore, a rational conclusion would be that the site would
remain in a blighted condition for the foreseeable future absent any financial incentive
by the Agency. Therefore, this Agreement which provides for the Agency to provide
the economic stimulus discussed in item #1 above, will result in the ability of the site
to be constructed with the District Headquarters and additional commercial/office
space users. Finally, the development of the site with both public and private uses
will have indirect "spin-off" economic benefits.
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CITY COUNCIL RESOLUTION / rY ð 10
REDEVELOPMENT AGENCY RESOLUTION /16 J
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA AND THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA AUTHORIZING THE EXECUTION OF A PROPERTY
EXCHANGE AGREEMENT BETWEEN THE AGENCY AND THE
SWEETWATER UNION HIGH SCHOOL DISTRICT FOR THE PURPOSES
OF PROVIDING THE AGENCY WITH THE PROPERTY NECESSARY TO
EFFECTUATE THE VETERANS HOME PROJECT AND TO PROVIDE
THE DISTRICT WITH THE PROPERTY NECESSARY TO DEVELOP A
NEW DISTRICT ADMINISTRATIVE HEADQUARTERS IN THE TOWN
CENTRE I REDEVELOPMENT PROJECT AREA
WHEREAS, the City of Chula Vista Redevelopment Agency ("Agency") own
certain unimproved real property located at Third Avenue and Alvarado Street in the City of
Chula Vista comprised of approximately 2.63 acres ("Windmill Farms Site") with an appraised
value of $1,375,000; and,
WHEREAS, the Sweetwater Union High School District ("District") desires to
acquire the Windmill Farms Site for purposes of developing an new administrative headquarters
which might also include privately used commercial or office space; and,
WHEREAS, the District owns certain unimproved real property located along the
east side of Medical Center Drive, between East Naples Court and Medical Center Court in the
City of Chula Vista, comprised of approximately 30.06 acres, (the "Hospital Site") with an
appraised value of $1,920,000; and,
WHEREAS, the Agency desires to acquire the Hospital Site for purposes of
donating such property to the California Department of Veterans Affairs ("CDVA") to be
developed and operated by the CDV A as a 400 bed, congregate care Veterans Home Facility
("Veterans Home Project"); and is currently negotiating an Agreement with the CDV A in order
to finalize the terms and conditions for the proposed donation of the Hospital Site to the CDV A
for the Veterans Home Project; and,
WHEREAS, in order to approximately account for the difference in value
between the properties to be exchanged ($545,000), the City agrees to provide the District with
land suitable for the development of a new District Corporate Yard Facility; and,
WHEREAS, in order for the Agency to obtain the Hospital Site for its intended
purposes and for the District to obtain the Windmill Farms Site for its intended purposes, and
for the City to provide the District with the land necessary for their Corporate Yard Facility,
this Agreement needs to be executed; and,
WHEREAS, a duly noticed public hearing pursuant to Government Code Section
6066 and Health and Safety Code Sections 33431 and 33433 was held by the City Council and
Redevelopment Agency on September 26, 1995.
.1-31
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RESOLUTION XXXX Page 2
NOW THEREFORE, THE CITY OF CHULA VISTA AND THE CHULA
VISTA REDEVELOPMENT AGENCY do hereby find, order, determine and resolve that:
1. The Redevelopment Agency is transferring the property to the School District
for consideration at least equal to the fair market value of the property at its highest and best use
under the redevelopment plan; and
2. The property transfer will help toward the goal of eliminating blight within
the Town Centre I Redevelopment Project Area; and
3. The Property Exchange Agreement between the City of Chula Vista, Chula
Vista Redevelopment Agency and the Sweetwater Union High School District is hereby approved
and the Mayor is authorized to execute same. A copy of the Agreement will be kept on file with
as document number -
PRESENTED BY: APPROVED AS TO FORM BY:
(j~L ~ ----~ /---.,
C .
./ B~Og(árd~-
Chris Salomone, Executive Secretary and
Community Development Director A nseI"--, ----~
M: IHOMEICOMMDEVIHA YNESIRESOSIVETHOME.RES
3-'10
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