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Home My WebLink AboutRDA Packet 1995/06/20 Tuesday, June 20. 1995 6:00 p.m. (immediately following the City Council meeting) Council Chambers Public Services Building Adiourned Special and Regular Meeting of the Redevelopment Agencv of the Citv of Chula Vista 1. ROLL CALL: CALL TO ORDER Members Alevy _' Moot _' Padilla _, Rindone _' and Chairman Horton 2, APPROVAL OF MINUTES: June 6. 1995 CONSENT CALENDAR None Submitted. PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES The following items have been advertised and/or posted as public hearings as required by law. If you wish to speak to any item, please fill out the "Request to Speak Form" available in the lobby and submit it to the Secretmy of the Redevelapment Agency or the City Clerk prior to the meeting. (Complete the green form to speak infavor of the staff recommendation; complete the pinkform to speak in opposition to the staff recommendation.) Comments are limited to five minutes per individual, 3. PUBLIC HEARING: A. AGENCY RESOLUTION 1458 B. COUNCIL RESOLUTION 17926 SALE OF AGENCY PROPERTY LOCATED AT 315 FOURTH A VENUE WITIllN THE TOWN CENTRE I REDEVELOPMENT PROJECT AREA TO THE CITY OF CHULA VISTA, CALIFORNIA, WITHOUT PUBLIC BIDDING--Staff informed the Agency at its 5/23/95 meeting the 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 this item be continued to a date and time uncertain, (Community Development Direc10r) 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 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 Agenda -2- June 20, 1995 ORAL COMMUNICATIONS This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the Redevelopment Agency from taking action on any issues not included on the posted agenda.) If you wish to address the Council on such a subject, please complete the yellow "Request to Speak Under Oral Communications Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record purposes and follow up action. Your time is limited to three minutes per speaker. ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the Agency, staff, or members of the general public. The items will be considered individually by the Agency and staff recommendations may in certain cases be presented in the alternative. Those who wish to speak, please fill out a "Request to Speak" form available in the lobby and submit it to the Secretary to the Redevelopment Agency or the City Clerk prior to the meeting. Public comments are limited to five minutes. 4. RESOLUTION 1454 APPROPRIATING FUNDS, ACCEPTING BIDS, AND AWARDING CONTRACT FOR DEMOLITION AND SITE CLEARANCE OF EXISTING BUILDINGS AT THE FULLER FORD SITE AT 760 BROADWAY IN THE CITY OF CIRJLA VISTA, CALIFORNIA (RD-133)- -The work includes removal of buildings and disposal of existing improvements, excava1ion, grading, and other miscellaneous work, The clearance of the site is being done to facilitate the construc1ion of the Broadway Business Homes project. Staff recommends the Agency accept the Inronnation Memorandum and consider approving the resolution. Continued rrom the mee1ine of June 13. 1995. (Community Development Direc10r/Direc10r of Public Works) 5, REPORT REQUEST FROM AUTO PARK DEALERSIDP FOR ADDITIONAL FINANCIAL ASSISTANCE--The Redevelopment Agency considered the request for additional financial assistance from the Auto Park Developers on February 14, 1995 and directed staff to obtain and analyze financial data on dealership operations, Additional information has been received and analyzed, and recommendations are offered for consideration, Staff and the Auto Park developers request the item be withdrawn. (Continued from the meetine of June 6, 1995) (Community Development Director) OTHER BUSINESS 6, DIRECTOR'S REPORT(Sl 7. CHAIRMAN'S REPORT(Sl 8, MEMBER COMMENTS Agenda -3- June 20, 1995 ADJOURNMENT The meeting will adjourn (to a closed session and thence) to the Regular Redevelopment Agency Meeting on August I, 1995 at 4:00 p.m., immediately following the City Council meeting, in the City Council Chambers, CLOSED SESSION Unless Agency Counsel, the Executive Director, or the Redevelopment Agency states otherwise at this time, the Agency will discuss and deliberate on the following items of business which are permilied by law to be the subject of a closed session discussion, and which the Agency is advised should be discussed in closed session to best protect the interests of the City. The Agency is required by law to return to open session, issue any reports of final action taken in closed session, and the votes taken. However, due to the typical length of time taken up by closed sessions, the videotaping will be terminnted at this point in order 10 save costs so that the Agency's return from closed session, repons of final action taken, and adjournment will not be videotaped, Nevenheless, the repon of finnl action taken will be recorded in the minutes which will be available in the Office of the Secretary to the Redevelopment Agency and the City Clerk's Office. 9. CONFERENCE WITH LEGAL COUNSEL REGARDING: Anticipated litigation pursuant to G<>vernment Code Section 54956.9(b) Chula Vista Auto Park developers - South Bay Chevrolet and Puller Pord/Honda/Kia v. City/Redevelopmen1 Agency based on sta1ements made in June 8th letter from Auto Park developers 10 staff (Continued from the mee1ing of June 13, 1995) 10. CONFERENCE WITH REAL PROPERTY NEGOTIATOR Give Instrnctions to Negotiators pursuant to G<>vernment Code Section 54956.8 Property: 760 Broadway (Parcel Us 571-20-13,571-200-14,571-200-15,571-200-16, and 571-200-17). Negotiating Party: Josef and Lenore Citron (Joe1en Enterprises)/Chris Salomone, Community Development Director and Pred Kassman, Redevelopment Coordinator (on behalf of the Redevelopment Agency) Price and Payment Terms. (Continued from the meeting of June 13, 1995) ~41 (facfnre under D2"2J~:J of perjury th~t , ~m em;Jloyed by t:lB C~tl/ C'-~ Ghu!,] V:Sffl in \:,_~ 11. REPORT OF ACTIONS TAKEN IN CLOSED SESSIO!'Commt:n'ty De\J0'J~mcnt ro,,, ,"c,'n' :m\: ,hot . ps~- this Agendal No-jcn on the ;:iu:i~'~ ,;1 ::')>. ,'".: 8'~ H\c * * * * * * :~~~~~~C9~~~~i;0~~;:Hb2;L_" COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT . The City of Chula Vista, in complying with the Americans With Disabilities AC1 (ADA), request individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service reques1 such accommodation at least forty-eight hours in advance for meetings and five days for scheduled services and activities. Please contac1 the Secretary to the Redevelopment Agency for specific information at 619.691.5047 or Telecommunications Devices for the Deaf (TDD) at 619.585.5647. California Relay Service is also available for the hearing impaired. [C:I WP51 IAGENCYlAGENDASI06-20-95 .AGD] This page Blank MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY/ CITY COUNCIL OF THE CITY OF CHULA VISTA Tuesday, June 6, 1995 8: 11 p,m, Council Chambers 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 ALSO PRESENT: John D, Goss, Director/City Manager; Bruce M, Boogaard, Agency/City Attorney; and Beverly A, Authelet, City Clerk MSC (Horton/Moot) to excuse Agency/Council Member Padilla's absence, approved 4-0-1 with Padilla absent. 2, APPROVAL OF MINUTES: May 16, 1995, May 23,1995 and May 30,1995 MSC (Rindone/Horton) to approve the minutes of May 16, 1995, May 23, 1995, and May 30, 1995 as presented. Approved 4-0-1 with Padilla absent. CONSENT CALENDAR (None Submitted) · · END OF CONSENT CALENDAR · · PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES 3, PUBLIC HEARING REQUEST FOR SPECIAL LAND USE PERMIT TO CONTINUE A STEEL FABRICATION BUSINESS AT 790 ENERGY WAY--The applicant constructed a building without building permits in order to expand the existing steel fabrication business, Applicant is required to legalize or remove the building, The Agency is requested to make the requisite findings and conditionally grant the Special Land Use Permit. Staff recommends approval of the resolution. (Community Development Director) RESOLUTION 1455 MAKING REQUISITE FINDINGS AND CONDITIONALLY GRANTING SPECIAL LAND USE PERMIT FOR A CONTINUATION OF A STEEL FABRICATION BUSINESS AT 790 ENERGY WAY (SUPO-94-02) 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. RESOLUTION 1455 OFFERED BY CHAIR HORTON, reading of the text was waived, passed and approved 4-0-1 with Padilla absent. 4, PUBLIC HEARING SALE OF AGENCY PROPERTY LOCATED AT 801 BROADWAY WITHIN THE SOUTHWEST REDEVELOPMENT PROJECT AREA TO JAMES COURTNEY WITHOUT PUBLIC BIDDING--1n response to an Agency Request for Proposals, Mr. James Courtney's offer is deemed acceptable by staff, Staff recommends approval of the resolution. (Community Development Director) 2-/ Minutes June 6, 1995 Page 2 RESOLUTION 1456 FINDING AND DETERMINING, PURSUANT TO HEALTH AND SAFETY CODE, THAT IT IS IN THE BEST INTEREST OF THE PUBLIC AND AGENCY FOR THE ELIMINATION OF BLIGHT THAT CERTAIN PROPERTY LOCATED AT 801 BROADWAY IN THE SOUTHWEST REDEVELOPMENT PROJECT AREA BE SOLD TO JAMES L. COURTNEY, ET AL, WITHOUT PUBLIC BIDDING, AND APPROVING A PURCHASE AND SALES AGREEMENT AND JOINT ESCROW INSTRUCTIONS WITH JAMES L. COURTNEY, ET AL, AND AUTHORIZING THE CHAIRMAN TO EXECUTE SAME Chris Salomone. Director of Community Development, stated it was a priority item as the Agency had directed staff to dispose of the property, Staff felt the offer by Courtney was fair, Member Rindone stated he would support the staff recommendation, A subsequent offer had been made that was higher but staff had continued to recommend Mr. Courtney's offer be accepted because the Agency had been dealing with him in good faith, It was not unusual that 1he Agency keep its commitment. This being the time and place as advertised, the public hearing was declared open. · Mike Vogt, 4932 Gold Glen, Bonita, CA, representing James L. Courtney, stated he wanted to clear up any misunderstanding about Mr, Courtney's intent. It was not just to increase the tire business but also to develop an automotive super center, i.e. provide tune-ups, details, diagnostic services. Those were services that he currently had to send out. He was committed to landscaping and renovating the property. He wanted the City to be proud of the project, Chair Horton questioned if the existing buildings would be remodeled. Mr. Vogt replied that he would remodel the existing buildings, They had to deal with the constraints of the existing parcel but he would be working with the Design Review Committee regarding the elevations, landscaping treatments. mounding. etc. to make it an attractive automotive super center. There being no further public testimony, the public hearing was declared closed. RESOLUTION 1456 OFFERED BY MEMBER RINDONE, reading of the text was waived, passed and approved 4-0-1 with Padilla absent. ORAL COMMUNICATIONS None ACTION ITEMS 5,A, RESOLUTION 1457 APPROVING AGREEMENT TO SETTLE, RELEASE AND REIMBURSE COSTS WITH CYPRESS CREEK COMPANY L.P. AND PROMISSORY NOTE REGARDING REDEVELOPMENT AGENCY FINANCIAL PARTICIPATION IN SITE ACQUISITION COSTS FOR THE PALOMAR TROLLEY CENTER DISPOSITION AND DEVELOPMENT AGREEMENT AND APPROVING COOPERATION AGREEMENT (PALOMAR TROLLEY CENTER) WITH CITY TO LOAN CITY FUNDS TO REDEVELOPMENT AGENCY TO PAY BACK LOAN TO REDEVELOPMENT AGENCY FROM CYPRESS CREEK COMPANY, AND AUTHORIZING CHAIRMAN TO EXECUTE SAME--The Agency directed staff to negotiate specific participation by the Agency in Phase 2 site acquisition costs. Negotiations with the developer were successful. with the developer agreeing to a level of Agency participation consistent with the Agency's directed parameters, The formal agreement is before the Agency for consideration, Staff recommends approval of the resolutions, (Community Development Director) c2 - 1-- Minutes June 6, 1995 Page 3 B, RESOLUTION 17919 APPROVING COOPERATION AGREEMENT (PALOMAR TROLLEY CENTER) WITH THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA TO PAYBACK LOAN TO REDEVELOPMENT AGENCY FROM CYPRESS CREEK COMPANY L.P., APPROPRIATING FUNDS THEREFOR, AND AUTHORIZING MAYOR TO EXECUTE SAME Dave Gustafson, Deputy Director of Community Development, reviewed the actions to be taken by the Agency and the City. Agency/Council Member Moot questioned if the Agency was only obligated if the sales tax revenue was there, Mr. Gustafson replied that the Agency was obligated to repay the City for the funds that were expended to the developer to the degree that tbe RDA, in the Southwest Project Area, had sufficient revenues to repay the City. Agency/Council Member Moot questioned if the artificial wall between the City and the Agency was taken down, would the obligation to the Agency and the City be contingent upon there being sales tax revenue to pay it. Mr. Gustafson responded that was correct. The obligation to repay the developer was set at 30% of the sales tax generated by the project. If it did not generate sales tax there was no obligation to repay. Agency/Council Member Moot stated there could be no adverse impact on the General Fund since it was contingent on the obligation to pay only on the revenues received from the project. RESOLUTIONS 1457 AND 17919 OFFERED BY CHAIR/MAYOR HORTON, reading of the text was waived, passed and approved 4-0-1 with Padilla absent. 6, REPORT REQUEST FROM AUTO PARK DEALERSHIP FOR ADDITIONAL FINANCIAL ASSIST ANCE-- The Redevelopment Agency considered the request for additional financial assistance from the Auto Park Developers on February 14, 1995 and directed staff to obtain and analyze financial data on dealership operations. Additional infonnation has been received and analyzed, and reconunendations are offered for consideration. (Continued from the meeting of May 16, 1995) (Community Development Director) Chris Salomone, Director of Community Development, stated the applicant's attorney had requested a two week continuance. MS (Horton/Alevy) to continue the item for two weeks. Member Alevy questioned what the rational was for a continuance. Mr. Salomone replied that the report was prepared at the request of the dealers and their attorney had called on each date requesting a continuance, They were not happy with the staff recommendation and he felt they may need addi tional time to prepare. Member Alevy stated it was his understanding that South bay Chevrolet was making a concerted effort to sell and questioned if that was the reason for the continuance. Mr, Salomone stated Fuller Fordjoined Southbay Chevrolet in the request about three weeks ago and that may have prolonged it. The sale of Southbay Chevrolet was ongoing and there were a number of offers staff had heard about. Member Alevy questioned if there was anything the City could do to help. Mr, Salomone replied that he felt the City was doing all that they could including contacting additional dealers to come to the site. ;-3 Minutes June 6, 1995 Page 4 Member Moot questioned if it would be appropriate to tell them that it was the last time the item would be continued, MSC (Horton/Alevy) to continue the item at the applicants request for two weeks. Approved 4-0-1 with Padilla absent. OTHER BUSINESS 7, DIRECTOR'S REPORTrS) - None 8, CHAIR'S REPORTrS) - None 9, MEMBER COMMENTS - None ADJOURNMENT ADJOURNMENT AT 8:30 P,M, to the Regular Redevelopment Agency Meeting on June 20, 1995 at 6:00 p,m., immediately following the City Council meeting, in the City Council Chambers. Respectfully submitted, BEVERLY A. AUTHELET, CMC/AAE, City Clerk by: '.' (\ (" . "xc.'~ ~~~:i L...",\ Vicki C, Soderquist, CMC, DeP\lty City Clerk \0 ~-1 JOINT REDEVELOPMENT AGENCY/CITY COUNCIL AGENDA STATEMENT Item ..3 Meeting Date 6/20/95 ITEM TITLE: AGENCY COUNCIL SUBMITTED BY: REVIEWED BY: PUBLIC HEARING: SALE OF AGENCY PROPERTY LOCATED AT 315 FOURTH AVENUE WITHIN THE TOWN CENTRE I REDEVELOPMENT PROJECT AREA TO THE CITY OF CHULA VISTA, CALIFORNIA, WITHOUT PUBLIC BIDDING RESOLUTION /15,9 APPROVING SALE OF CERTAIN PROPERTY LOCATED AT 315 FOURTH AVENUE 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 RESOLUTION 171; t, 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 THE SAME Community Developme~t. D~~r Executive DirectorJ~ ~ I (4/5ths Vote: Yes NolL) BACKGROUND: On March 17, 1995, a Request For Proposals was issued for the purchase of Agency property known as the EI Dorado Plaza Building located at 31 5 Fourth Avenue, On May 23, 1995, staff presented a report to the Agency indicating that the three bids received were too low and unacceptable, Staff recommended that the Agency sell the property to the City, The Redevelopment Agency directed staff to prepare a purchase and sale agreement for Agency/Council review and approval pursuant to terms outlined in the 5/23/95 report and further described in this report, Staff has prepared the Agency and City Council resolutions and agreement for Council/Agency review and approval. A Grant Deed to transfer the property from the Agency to the City will be prepared, processed administratively and recorded after the agreement is executed by all parties, RECOMMENDATION: That the Redevelopment Agency and City Council continue the item to a date and time uncertain, [BB\C:\ WP51 \AGENCy\RA4S\31 5SAlE2.RA41 3 - / This page Blank 3-L J/~ #1 INFORMATION MEMORANDUM June 14, 1995 TO: The Honorable Chairman and Agency Mem~, " John D, Goss, Executive Directo~ ~~ ~ . Chris Salomone, Community DevelopmeW Director (. VIA: FROM: SUBJECT: Status of Soil Testing - Former Fuller Ford Site, 760 Broadway Pre-demolition soil testing on the site began on Thursday, June 8 and will conclude Friday, June 9, The consultant has indicated that a full written report would be available in the last week of June and that verbal results would be forthcoming by June 20, Staff will provide a verbal report of any progress that has been made as of the June 20 meeting. A verbal update on the Disposition and Development Agreement status will also be provided, IBB\C:\WP51 \AGENCY\MEMOS\INF09505.MEMI 4,- (/) This page Blank I-/-@) INFORMATION MEMORANDUM ~~/'15 ~ - TO: Honorable Chair and Members of the Ret\~lopment Agency John Goss, Executive Director ~ ~ ~ U C-~J Chris Salomone, Community Development Director VIA: FROM: SUBJECT: Status of Soil Testing - Former Fuller Ford Site, 760 Broadway Pre-demolition soil testing on the site began on Thursday, June 8 and will conclude Friday, June 9. The consultant has indicated that a full written report would be available in the last week of June and that verbal results would be forthcoming by June 20, It is not known at this time whether any test results or other information necessary for the approval of the demolition contract will be available prior to the Agency's meeting on June 13. Staff will provide a verbal report of any progress that has been made as of the June 13 meeting, 4~3 ~ "4'(.r / ,..- I This page blank! ~-f ~.~,.. '2- '. ~ /, t" ",7s / / REDEVELOPMENT AGENCY AGENDA STATEMENT~ o 61)/95 1 Item 2.;- 1",..< Meeting Da "'tiRe 3, 1QQIi ITEM TITLE: REPORT Pre-demolition Soil Sampling at the Former Fuller Ford Site: 760 Broadwa\r Community Developme~t Ir ctor 1t- fv Executive Director~ "'" (4/5ths Vote: Yes _ No XI Council Referral Number; SUBMITTED BY: REVIEWED BY: BACKGROUND: At its meeting of May 30, 1995, the Redevelopment Agency directed staff to prepare a report on the status of soil testing for the former Fuller Ford site at 760 Broadway, as it relates to the proposed Broadway Business Homes project. The purpose of soil testing is to provide a preliminary indication of the type and level of potential soil contamination beneath the pavement prior to demolition of structures. During the approximately 40 years of operation of the Fuller Ford facility, hazardous and non- hazardous hydrocarbon compounds were known to be used on the site. A survey of the site has revealed a total of 26 locations where potential release of one or more of these compounds into the soil could have occurred. A bid to perform the testing work in the most expeditious manner has been prepared and submitted to the City by Woodward-Clyde Consultants. Detail on the scope of work and costs for soil testing services is provided in this report. Results of the report, due in approximately one month, are intended to be used by both the Agency and the developer 'to ~ determine whether soil remediation costs would affect the feasibility of the proposed project. The developer has agreed that demolition work should wait until the test results are available. .' RECOMMENDATION: That the Agency accept the Report and reserve action on the demolition of structures on the site until the results of the soil testing become available. BOARDS/COMMISSIONS RECOMMENDATION: N/A . j. DISCUSSION: A Phase I Environmental Assessment performed on the property prior to Agency acquisition recommended that additional testing of the soil be performed in concert with or following demolition of the structures. Since demolition of structures may result in loss of value for the site if the project were not to be built, it has become of interest to conduct pre-demolition testing to better determine project feasibility with respect to potential soil contamination, The 26 locations proposed for pre-demolition testing consist of the following: a total of 24 W ~-S Page 2, Item ~8 Meeting Date :;?~~lr s hydraulic lift stations located on the western and northern portions of the site, and two above- ground storage tank's located on the western portion of the site (one labeled for waste oil storage and one for solvents), ~PCi/95 Regular use of the 24 hydraulic lifts over the years has likely resulted in some leakage of hydraulic fluid into the soil adjacent to the subterranean lift structures. In addition, potential leakage from two above-ground storage tanks may have contaminated underlying soil. The extent and concentration of contamination is unknown. The type of contamination associated with hydraulic fluid used to operate the lifts and waste oil that had been contained in one of the above-ground storage tanks is not regulated under the State Health and Safety Code as hazardous waste but can require cleanup oversight by the Regional Water Quality Control Board if they determine that the release is a threat to human health. Such a determination is extremely unlikely in this case based on the anticipated quantities of contamination and the distance to groundwater resources. Additionally, although solvents contained in the second above-ground storage tank are classified as hazardous waste, the likelihood of extensive soil or groundwater contamination is very low since any significant leaks or spillage of material would be contained in a specially designed concrete containment structure. Therefore, the suspected levels of any soil contamination is not anticipated to require cleanup provided the existing structures and use of the site are maintained. However, if the contaminated soil were exposed through site demolition, remediation would be required prior to establishment of a new use that would have the potential of exposing people directly to contaminated soils, The purpose of the pre-demolition testing is to determine if the character of contamination is non-hazardous, as suspected. If hazardous materials are discovered as a result of the pre- demolition testing and are in quantities or concentrations that would exceed anticipated cleanup costs, the proposed development project may be delayed until cleanup costs can be better analyzed by the Agency. Based on very generalized assumptions regarding the quantities of non-hazardous contaminated soil, initial cleanup costs are estimated at this time to be approximately $40,000. .' Pre-demolition soil testing can be achieved through concrete boring and Geoprobe sampling, A single boring for each test location would be advanced to a depth of 10 feet and samples would be collected at 5 feet and 10 feet providing a vertical characterization of the sample location. It should be noted that the inaccuracy associated with this method of testing in determining total site contamination and estimating remediation costs is relatively high since the sample will not provide any horizontal dimensions. This type of sampling is useful to determine: 1) if there is any contamination in a given location, and 2) what the type and concentration of contaminants would be. It should be further noted that if the specific location of the boring is not precisely aligned with the location of contaminants, the sample would yield a falsely negative result. More accurate testing can be achieved after site clearance since visual inspection of all soil surface areas could be conducted. ._~. Soil samples collected from the 26 locations will be screened for substances that are reasonably expected to be present, based on the history of use and on the professional judgement of the consultant. Testing for substances that would have a low probability of occurrence based on the above factors is not proposed since the cost to benefit ratio of such an analysis is unreasonably high. An informal bid has been obtained from a single vendor who has performed extensive research on the site to date at no cost to the City. Formal bidding or informal bidding from multiple :.tfj1- Lf-~ V - Page 3, Item'~ 0joh5 M,eti".DM:27*i sources is not considered practicable in this case due to the extremely constrained schedule required for the testing work. The selected consultant, Woodward-Clyde Consultants has demonstrated their qualifications to the City through performance on other projects within the City. The fixed-fee cost of their services is $13,100. A written report of the test findings will be available with 3 to 4 weeks following execution of an agreement with the consultant. Verbal results may be available earlier. This information was shared with the developer on May 31, 1995 at which time they agreed that the most prudent course of action was to delay demolition work for approximately one month until the written report is available. The delay in demolition may delay development and marketing of the project beyond this summer. FISCAL IMPACT: Costs to perform the pre-demolition testing services is $13,100, funds for which are available in Account Number 996-9960-RD-133. No other work has been performed by the consultant on this project previously. Although the City is fronting the costs for testing services, the developer has agreed to share in the testing costs according to a formula that is being developed as a part of the forthcoming Disposition and Development Agreement. The sharing formula, predicated on the sale of the property, will have the developers paying the first $10,000 in testing costs, the City paying the second $10,000, and the City and developer splitting any additional costs up to $20,000, if required. /BBIWP51IAGENCYlAA4SICITRONS2.RA41 . -~. f-7 # This page blank! ~,_J. ~-F ITEM TiTlE: . . . ~ . REDEVELOPMENT AGENCY ~TDA STATEMENT OJ .~0/~5 rbrlJj;s M"."~~~ Resolution 1454 Appropriating funds, accepting bids, and awarding contract for "Demolition and Site Clearance of Existing BUildings at the Fuller Ford Site at 760 Broadway in the City of Chula Vista, California lRD-1 331" Director of Community Development {. ,t; Director of Public Works SUBMITTED BY: REVIEWED BY: Executive Director 8' (4/5ths Vote: YesltNo--.! BACKGROUND: At 2:00 p.m. on May 3, 1995, in Conference Rooms 2 & 3 of the Public Services Building, the Director of Public Works received bids for "Demolition and Site Clearance of Existing Buildings at the Fuller Ford Site at 760 Broadway in the City of Chula Vista. California (RD-1331." This work includes the removal of buildings, removal and disposal of existing improvements, excavation and grading and other miscellaneous work required by the specifications. The clearance of this site is being done to facilitate the construction of the Broadway Business Homes project recently reviewed by the Agency. RECOMMENDATION: That the Agency; 1) appropriate $107,000 from the anticipated surplus revenues In the Otay VaUey Road Project Area Fund to RD133; and 2) accept bids and award contract for -Demorttlon and Site Clearance of Existing BUIldings at the Fuller Ford Site at 760 Broadway In the CIty of Chuta VISta, California (RD-133j- to Watkins Contracting, Inc. _ San Diego in the amount of $89,417. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: At the meeting of May 2, 1995, the Agency reviewed plans and issues related to the - Broadway Business Home Project and directed staff to expeditiously process the project including demolition on the Broadway site. .- .' --:,..-. Funds for this project were included in the Fiscal Year 1994-95 CIP budget (See Exhibit AI. However, the funds are not sufficient to do the demolition work. Staff proposed to include the additional funding In the 1995-96 CIP budget. However, because of the urgency of the Broadway Business Homes project, and the need to demolish the existing structures at the Fuller Ford site, staff bid this project prior to the approval of next year's budget so that the demolition work could proceed as expeditiously as possible. The Agency approved a Semi-Exclusive Negotiating Agreement with the developers of the Business Homes Project in July 1994. The Project will be reviewed by staff and the Design Review Committee this May/June. It is scheduled to go before the Planning Commission for a required zoning change on June 14, and to the Agency for final approvals on July 11, 1995. In order for the project to be under construction late this summer, site clearance must begin now. S 1... -/ . c2 I I ~-1 o f 0 page2,'t~ ~ /~Ij(O '95 ~.? 115 ~ering Date 'e5:~3:95 If/, rl> I I r:& 'I /. Z / I . ~ '/ { 5 ~ --y ~~, '1--<;" Since the Business Homes project has not as yet been approved by the Agency, there is some risk that demolition of potentially reusable structures may be premature. However, the structures are old, have been stripped of valuable materials and have been considerably damaged by vandals since they were vacated last November. Any future reuse of existing buildings would most likely mean continuance of auto related land uses. The Business Homes project promises a departure from those uses and the beginning of redevelopment efforts along Broadway. Normally, demolition would not proceed until the project was approved and a Disposition and Development Agreement authorized. However, this is not scheduled to Occur until July 11, 1995 which would delay the start of demolition for almost two months. The demolition contractor has 30 working days (approximately six weeks) to complete demolition work. If demolition work starts by June 1, the site should be cleared and available by mid July to coincide with Agency approval of the project. If the demolition work starts in late July, the site will not be available until mid September. The Developers are planning to construCt model units this summer as well as begin construction of Phase I for sale in the fall. It is generally more difficult to market residential properties in the late fall and winter seasons. Staff is demonstrating the "business friendly" environment in Chula Vista and is trying to facilitate a development proposal which has very recently been strongly SUPported by the Agency. The Developers are serious in their efforts and intent to purchase the property, and have already invested over .150,000 of their own fundjl in this project. Since your last review of this proposal, Courtney Tires has reexpressed their interest in purchasing the Ford site in addition to the former South Bay ChevrOlet property, including the Fuller Ford improvements. This prospective sale could be $2-3 a square foot higher than what could be secured through the Business Homes project. This information has been transmitted verbally to staff by their broker. A written offer is expected by Tuesday, May 23. Bids were received from six contractors as follows: .' Contractor 1. Watkins Contracting, Inc. - San Diego 2. Cement Cutting, Inc. - San Diego 3. Cin-Mar Industries. Inc. - San Pedro 4. Roberts Engineering Contractors - Escondido 5. Mark McDowell Corporation _ San Diego 6. Rutledge Gradalls - Jamul Bid Amount $ 89,417.00 94,747.00 97,500.00 117.200.00 128.667.00 135,957.00 ~ __'.J. The low bid by Watkins Contracting, Inc. is below the Engineer's estimate of $100,000 by $10,583 or 10.6%. Shortly after receiving bids, the City received a fax letter (Exhibit B) from the second apparent low bidder (Cement Cutting, Inc) questioning the qualifications of the apparent low bidder, Watkins Contracting, Inc. to perform the work. .s ')- ~ - t" ~-IO - . ~ p; 0 Page 3, Item ::5= :z- ~~. ~ 95 ~{ 3 J1-~ ~ Date 05.'23.'~~ I -Ct:J/.3/75 ,,~'-3../ ~-<: Staff has reviewed Watkins Contracting, Inc. references and determined that the contractor has the required license, the relevant experience and resources to carry out the work necessary for the demolition and related work associated with the Fuller Ford Project. We, therefore, recommend the contract be awarded to Watkins Contracting, Inc. Disclosure Statement Attached is a copy of the contractor's disclosure statement (Exhibit C). Environmental Status The City Environmental Review Coordinator has reviewed the work involved on the project and determined that the project is exempt from CEOA under Section 15061 (b) (3). the .general rule. that CEOA applies only to projects which have the potential for causing a significant effort on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEOA. Prevailina Waae Statement The source of funding for this project is redevelopment funds. The prevailing wage scales are those determined by the Director of Industrial Relations, State of California, and were determined to be applicable to the work to be done. No special minority or women owned business requirements were necessary as part of the bid documents. Disadvantaged Businesses were encouraged to bid through the sending of the .Notice to Contractors. to various minority trade publications. Soils Testino Current information' indicates that the Fuller Ford site is free from soil contamination. However, since hydraulic lifts are located on the site, it is possible that some seepage at the base of the lifts has occurred. Agency staff is currently contracting for soils tests in these areas to determine if there is any subsurface contaminations. Financial Statements Funds Required for Construction .' , A. Contract Amount B. Staff (Design 8.nd Inspection) C. Contingencies (approximately 10%) TOTAL FUNDS REQUIRED FOR CONSTRUCTION $89,417.00 $8,683.00 $8,900.00 $107,000.00 .-'-"'. Funds Available for Construction A. Autopark Fund RD133 B. Appropriation of Funds from Unappropriated balance of Otay Valley Road Redevelopment Fund to Autopark _ Fund RD133, (Require a loan from the General Fund.) .$47,650.86 $107,000.00 TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $154,650.86 . Approximately $10,000 has been committed to complete slope improvement work on the Autopark site and an additional $10,000 is needed to undertake soils testings ......" ~ 3: .,.2 3 ~-I/ Page 4, Item~ifl 4>p~fs ~/jJ/'t5 _~1;~~te ~<:~:/>'S on the demolition site. The remaining $27,650 will be needed to complete the work at the Autopark site plus pay for change orders needed for additional work on Broadway in connection with the Broadway Business Homes development on the Fuller Ford Site. FISCAL IMPACT: Funds from the sales of the South Bay Chevrolet parcel will be deposited in the Otay Valley Road Fund and the anticipated surplus revenues above $1.15 million are sufficient to cover demolition costs. Sale of the Chevrolet site is expected to Occur in July, and can be accrued as revenue for FY 94-95. Exhibit A - Capital Improvement Program Detail for Autoparlc Project Exhibit B - I.ettec from Second Apparent Lot Bidder Exhibit C - Contractor Disclosure Sbl"'"""1t SUI,.o m.;'wb.nd> ........ ':""'Ib .- .' ~.._~. -.6-1 02, j 1-/2--- . ~A" ~-;:. rti 13i T s: lil lil 01 s: - t ~ ~ , ,:. s: - t i ~ ~ to f i - .!li t ~E c: ! ,,~loI: a a t!~l ! :z ... s: - -' ffi t ~ Iii I ...J " :> ... ~ ~ 0 0 0 ~ ~ ~ c o"z w!i;... "' :E j3w:l .. g 0 0 0 C( ~ :II :II :II ..:I... s: ~~ -,~2 - (/)0 ......13 t -a: ie;a: >Q. a... ~~ Ii ~ g 5 ~ - Ii Ii ~ .. OK! - ""- "! ~ - I V l l l l!i~ ~l~e - - - . .. .. '.. 6~ f~ i! ...i= -' C( co t- O> N N N t: ~ ~ N t- O;; << III ~ Q. g-' t- O> ""- C>_ C( oJ uS ~ ~ Iii ~ ~ ~ 0 ~ .. ~ ~e - ;; ;; .. ~ ... . -, . .. . . -/ !l ~ ~ f2 " ~ ~ ... :.-. z ! ii: ::It! ~H c: a:..... F .g rli c : i c: .r> a: ii: :E -" 0; c .r> g ~ w ~ 0 z ti ~ ." C a: ~ e ~ -; :> ~ c c: g ... 8- 1l .ll' " ~ ! e ~ ~ ~ ! .: ~ ... oS > .. ~ w i" :I ~ fi~8 2: :> ~ -' - - a: I "_,1 I II t-,:S___ J;: (L),~~" ~ '. j' I~/J! ,.. ,~ - ~ ,. ~"-~lfll\ . , :'\'1.-.:;.-'. -, -. - I . . ;'1 '\ . }j I (l~ I I \, 11 (),,"'. 'w \~ . =-r.<.:~ ) ~ '-'_'...n.._\____n....... . J." l r" i \ \ ,--::...- --~ / 1 I -i ,/ '0 .. " '0 c.c. .- c: m:.= ~ 'E J2 .; .. .f1!c '0 co =-t! l! co 'S"'s . ... "'Q. ~ t! il ~J I. .. 'Iii .: j f ! l!f. ~ l f .II ~ c: Q,:;)2f .2 (') -.&:::m< ~ ~ "0_ "" ~.. 0 Y ~ '0 e OJ <<l':: Co .. !! __02 ... l? '0 ~o-o.. .. .!cBc m l! :. -- "5 .. · E ! ~ c ~ ~ tS'l! .B- .2 OJ J! C..E .l! CI> ""I;.. ~ .. S...:1il l!! 10 Ii." . '0 8 -= ,g. a: -= g : IS! li' ~ . G-JI!~ Sl 1:: .. .. cj: . i " i IT f""'-= '5 :g .E lli''5 l .. .: a.i ~ -= E -.. - c il 'ii -=-ei .2 OJ ~ :"m=: {j ,g. ! :sz1!.... ~ .II 'E ~.!!-=.11 'E 8 Ii 8: .. 1 a.-gc .II or .. .. ~ .' y-"e Cii c t: E ~... c .2 a -e- !. .2 ... I e_... co a.~'5- "" '5 ~-/3 '0 - .!!._.D ~ ~ If' - f3.""":SZ C(~ f~l c Ii <:-0 0 -<;= .2j;'c1! ;; 02.. - .2.. j! - -m""l ~ I:: ;; e~~e 1; 5-5' - ell .. " rll~ ~ c ... a. .. This page blank! .... " . _".-t. ') ~I~. '- ~9 , ~-If d5 liED 16: 00 CEMENT CUTTING FAX NO: 6192385725 - --I '" 1':)l.t+Il~iT '13 P.02 . ;__.___.___.____';CEMENT CUTTING, INC.t._ ___ _ ~ _ _ _.'; A~ltV ~ .:pHAl-B- HAIV$olV April 3, 1995 city of Chula Vista Department of Public Works Engineering Division Attn: Roberto Saucedo Re: Demolition and 'site clearance Fuller Ford Site 760 Broadway City of Chula Vista (RD-113l Denr Mr, Saucedo: The apparent low bidder for the above referenced PFoject was Katkins Contracting. \ Demolition is not by any means this flrm.s strong suit. They are licensed A, B, and asbestos removal. They do not have a C-21 license (demolition/house moving) and"as far a. 1 know, do not o~~ any equipment to do the demolition of the structures et the Fuller Ford site. This leads me to my next point. The only subs listed were for temporary fence, so how does Wetkins intend to remove the structures? As part of the specifications all the subs are to be listed. It would be in the best interest of the City of Chula Vista to disqualify Watkins Contracting. ." .?lease let this letter serve as 8 formal protest. Respectfully submitted, .6~J IV\. '\./\ O~ .-.z J j. steve Morgan 5- 7 .2 7 ~-/5 This page blank! .... ..... .' ~ ._'..J. ~ <-- ..;; 6 .::C ~ ~-16 ... ,,,. E.,.HIl3iT C THE CITY OF CHULA VISTA DISCLOSURE STATEMENT You are required to lile a Stalemem of Disclosure of cenain ownership or linancial imeresls, payments, or campaign comributions, on all mailers which will require discrelionary action on the pan of lhe City Council, Planning Commission, and all other official hod'ies. The following infonnation mUSl be disclosed: I. Lisf fhe: name:s of all pc:rsUll'; havill~ a financial iUle:re:sf ill the: propc:ny which is (he: suhje:c.:( of (he ;Ipplic.:atioll or (Ill' ("Ollfrill"C. e,goo owner,applicam, Comraclor. subcontractor, malerial supplier. . iJ.JJ{r{~,...',J 2, If any person' identified pursuant 10 (I) above is a corporalion or pannersbip, listlhe names ofall individuals owning more than 10 % of the shares in the corporal ion or owning any pannership interesl in dIe pannership, -iA 3. If any person' idemified pursuam to (I) above is non.profit organizalion or a lrust, list the names of any person serving as director of (he non-profit organizalion or as lruscee or beneficiary or trustor of the (rust. IJA 4. Have )'011 bad more Iban S2SO wonh of business lmISacCcd with any ~ber of the City staff. Boards, .Cnmmi<<ioDS, Comminc:es. and Council wilhin the pasllWelve monlb? Yes _ No "... If yes. please indicate person(s): 5, Please identify each and every person. including any agents, employees, consultants, or independenl Coneraclors who you have assigned 10 represent you before the CilY in Ihis matler. _ J; ~ ... " 6. Have you and/or your officers or ageDlS, in the aggregale, contribuled more Ihan $1.000 10 a Council member in the currenl or precediD8 election perind? Yes _ No ..x If yes, stale which COWlCil members(s): - __'.,.t. Dale: ~.? ~S" · · · (NOTE: Attached additional pages as necessary) . ~ ~., "- <Signature of Contraclor/Applicanl . . C;;t~ W~ :~...r 1MA:. Prinl or Iype name of Conlraclor/Applicanl · Pam" is defined as: "Any individual. firm. co-pannership, joint venture. a.,sociation. sacial club, fraternal organiztttion. corparaticm. e.'Ulte, trust, receiver, syndicote, this and ony clther c/lunty, city or country, city municipality, district, o~ other palitical .mbdili.<icm, (lr allY (lther group or combination octing os 0 unit. ~ r. ::! _ 9- ~-.:. / 1 This page blank! ..' --,' _'./. s ,~'} , ;:2 I .~ . /f-j? RESOLUTION 'NO. /15'f RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROPRIATING FUNDS, ACCEPTING BIDS, AND AWARDING CONTRACT FOR "DEMOLITION AND SITE CLEARANCE OF EXISTING BUILDINGS AT THE FULLER FORD SITE AT 760 BROADWAY IN THE CITY OF CHULA VISTA, CALIFORNIA WHEREAS, the Redevelopment Agency of the City of Chula Vista has received the following six sealed bids at 2:00 p.m. on May 3, 1995 in Conference Rooms 2 and 3 of the Public Services BUilding for "Demolition and Site Clearance of Existing Buildings at the Fuller Ford Site at 760 Broadway in the City of Chula Vista California: Contractor Bid Amount 1. Watkins Conltacling, Inc. - San Diego $ 89,417.00 2. Cement Cutting, Inc. - San Diego 94,747.00 3. CiD.~ Industries, Inc. - San Pedro 97,500.00 4. Robeds Engineeriag CoclIncton _ 1l._ur."o 117,200.00 S. Mut McDoweU Corpontioa. - San Diego . 128.667.00 6. Rudedge GndaIIs -laimd . l3S,9S7.00 WHEREAS, the low bid by Watkins Contracting, Inc. is below the Engineer's estimate of $100,000 by $10,583 or 10.6%; and WHEREAS, shortly after receiving bids, the City received a fax letter from the second apparent low bidder (Cement Cutting, Inc) questioning the qualifications of the apparent low bidder, -Watkins Contracting, Inc. to perform.the work; and ~~ .' WHEREAS, staff has reviewed Watkins Contracting, Inc. references and determined that the contractor has the required license, the relevant experience and resources to carry out the work necessary for the demolition and related work associated with the Fuller Ford Project and, therefore, recommends the contract be . awarded to Watkins Contracting, Inc.; and -~. WHEREAS, the City Environmental Review Coordinator has reviewed the work involved on the project and determined that the project is exempt from CEQA under Section 15061 (b) (3), the "general rule" that CEQA applies only to projects which. have the potential for causing a significant effort on the environment; and WHEREAS, where it can be seen with certainty that there is no possibility that the activity in question may have a S /i c2. /t ~-/J significant effect on the environment, the activity is not subject to CEQA; and WHEREAS, the source of funding for this project is redevelopment funds and the prevailing wage scales are those determined by the Director of Industrial Relations, State of California, and were determined to be applicable to the work to be done; and WHEREAS, no special minority or women owned business requirements were necessary as part of the bid documents and disadvantaged businesses were encouraged to bid through the sending of the "Notice to Contractors" to various minority trade publications. NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA DOES HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS: Section 1. The Redevelopment Agency of the City of Chula Vista has determined that the project is exempt from CEQA under Section 15061 (b) (3). Section 2. That the Redevelopment Agency does hereby accept the bid of Watkins Contracting, Inc. as responsive. , Section 3.. The Redevelopment Agency awards the contract for the demolition and site clearance of existing buildings at the Fuller. Ford site at 760 Broadway in the City of ChulaVista, California in the u6unt 'of $89,417 to Watkins Contracting, Inc., the lowest responsible bidder which submitted a responsive bid to the approved specifications. Section 4. The Chairman of the Redevelopment Agency is hereby authorized and directed to execute said contract for and on behalf of the Redevelopment Agency. - Presented by Approved as to form by John P. Lippitt, Director of Public Works 7u~,+- Bruce M. Boogaard, Agency A torneY~J - .' ~.__/. t:t~ ~, -5 ''" I .: . . 'I- . ~-.'''~ ~-:w International Real Estate : A Oiwsion of I. R. E. Enterprises, Inc. ~':.o;?~ ,< :::.: . ., '- , "..\ /' ; ,. ~- \ I'.;F 7./::1; ': I May 19, 1995 Redevelopment Agency - Agenda Item #5 This letter was faxed to staff after the Agenda packet was delivered. Chris Salomone Community Development Director CITY OF CHULA VISTA 276 Fourth Avenue Chu1a VISta, CA91910 Via Fax #476-3310 Original Mailed: 05/19/95 RE: FORMER FULLER FORD SITE Dear Chris: This letter will confirm Mr, Courtney's desire to purchase the former Fuller Ford site on the west side of Broadway in ChuIa VISta. We understood that this site consists of appro.Yim~tely 110,250 square feet of CQmw.:..ciaI1y zoned land and appro~m.itely 33.000 square feet of automotive use blliltli'18". ~ Based onMr. Courtneys infim~ bowIedge of the property llDd the neigJthodJood. he is ~ to offer the aty $100.000 cash for this site subject to IIhondam cootiD8encies. This Offer is based upon the bniJtli'l&" JJat being mmd and an escrow period of not more than 90 days. Mr. Courtney's acquisition of this property would be in addition to the South Bay Chevrolet site and would be financed through private sources. We look forward to working with the City on this transaction. Sincerely, '~~/lNTERNAnONAL REAL ESTATE ~ j. Michael A V ogt MAV:sks e ~ IJ . 1"-:21 cc: run Courtney C_l~ o Industrial! Commercial Properties - Sales & leasing! Property Management a 2320 Paseo de Ias Americas, # 200, Otay Mesa, CA 92173. (619) 661-6681, FAX (619) 661-6685 This page blank! ",. .' ~ .->. ~ ~ /'/ ~~;2V MEMORANDUM May 25, 1995 TO: The Honorable Chairman and Agency Members John D. Goss, Executive Director Q ~ Chris Salomone, Community Deve~ment DirectoMlL VIA: FROM: SUBJECT: May 30, 1995 Agency Agenda Item #2 - Broadway Business Homes Project: Demolition of Fuller Ford Building The Agency considered a request to authorize demolition of the Fuller Ford auto dealership buildings to expedite the Broadway Business Homes Project at the meeting of May 23, 1995. The Agency requested staff to report back on May 30, 1995 concerning progress made towards agreement on major items of a Development Agreement with Josef and Lenore Citron. developers of the Broadway Business Homes Project. Staff met with the Citrons and their attorney on Wednesday, May 24, 1995 and will meet with them again on Friday, May 26 to identify major issues and respective negotiating positions. The major issues include the following: 1 , Project phasing, including model units 2. Processing of a Parcel Map 3. Creation of a Maintenance District 4. Project financing 5. Agency Right of Reverter 6. Computation of Development Fees 7. ' Project Pro Forma 8. Payment of site contamination clean up costs (if necessary) Of these items, #3 (Maintenance District!. #7 (Project Pro Forma), and #8 (Site Contamination Clean Up Costs), will require more time to resolve. Staff is scheduling a series of negotiating meetings with the Citrons to try and reach agreement on major terms as precedent for demolition to proceed. This may be acco!11plishable by the meeting of June 6,1995. Staff reauests continuance of this item until that 4fate. The Citrons have concurred that a delay of one more week will not unduly delay the project. . ;At last week's meeting, the Agency questioned the amount of sales and property tax Increment revenues ' accruing from the Business Homes Project ve('Sus use of the site for an auto service center. Staff has estimated the following: Broadway Business Homes Auto Service Center oj. Annual Tax Increment Revenue to Agency Annual Sales Tax Revenues Total Annual Revenues: $47,520 15.750 $73,270 (., (el $4,200 35.471 $39,671 lbl Idl (AI Based on sale of 36 Townhomes at an average price of $220,000 (hi Based on a sales price of $700,000 (eI Based on half of the units used for commercial sales @ $125/sq. ft. (dl Based on known current revenues from similar businesses @ $107/sq, ft, IBB\C:IWP51IAGENCYIMEMOSICHAIR_5,MEMJ ..2 /5 7'- .2.3 This page Blank 'c2-/~ ~-..2 f 1. .. , ., . 2. 3. -~. 4. ITEM TITLE: . . . REDEVELOPMENT AGEN;Y AGENDA ST~10~ G'1 1- 'f{ .0PD/95 ~~'/'1S M,,"o. D't~":'m4,',~ Request from Auto Park Developers for Additional ~ - ~ - Financial Assistance REPORT SUBMITTED BY: Community Development Director REVIEWED BY: Executive Director (4/5ths Vote: Yes _ No-Xl BACKGROUND: On January 17, 1995, the Council approved a conditional payout of $1.3 mil/ion to the Auto Park Developers for construction of public streets within the Auto Park under-Assessment District 92-2. On January 19, 1995, staff met with the Auto' Park Developers, MElSSIs. Ordway and Fuller, and their attorney to discuss financial problems associated with a lower assessment cfcstrict payout than anticipated. As a result of that meeting, the developers made specific requests for financial assistance which were reviewed by staff. Their requests included the following: Increase the Maximum Agency Repayment Obligation in the Disposition and Development Agreement (DDA) by $783.230; Decrease the Base Sales Tax that the City would receive from $550.000 to $340,000; Decrease the Annuaf Escalator Factor from 6% to 2% and postpone Its ,: . application,~ year, beglming July 1, 1996.. " ,_' . . ~~ ..; ''::~.' " ;....:~,..:~-;.~~:.....,.- .~.::..:.ilJ;~ '-'J t::t:.i.... s:~"':"nl1 ..:;. ;,~;l-,~HJ>>S.....~ : \~ "' -~_'f'.:,. .,', ". . . .' '. 'r, In additionothe Ch4MOI8td8aref.'expressecf the~desire to haw the Agency acquire P8n:eI #1 from thefn due to their lnabirltV to' market the parcel. . The Redevelopment Agency considered the request from the Auto Park Developers on February 14, 1995 (see Exhibit AI and directed staff to obtain and analyze financial data on dealership operations. Additional information has been received and analyzed. and the fOllOWing recommendations are offered for consideration. RECOMMENDATION: That the Agency nOUaks any actions to acquire Parcel 11 (vacant land parcell., That the' Agency not consider a reduction. In the maximum Agency Repayment Obligation of $1.9 milRon as stated the Disposftionand Development Agreement. , ',' That the Agency not consider lowering the Sales Tax Base from $550,000 as stated in the Disposition and Development Agreement. \,., ; ,-. ..... -~. ~ .- , - ""' That the Agency' direCt staff to draft an amendment to the Disposition and Development Agreement for further review which will allow an annual review of the escalation factor. taking into account current cost of living factors. 5. That the Agency reduce the current escalator of 6% to 3%, based on current cost of living data. ~~~ s-/ - - ~7~~~e2,@:i~' 0pO!qS Meeting Date: 5!02/~q 5"'<-',1_ BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: In mid January, staff met with the Auto Park Developers, Messrs. Ordway, Reneau and Fuller, and their attorney to discuss their request for additional financial assistance from the Agency due to a shortfall in anticipated reimbursements for public improvements constructed under Assessment District 92-2. The Auto Park Developers specifically requested the fOllowing amendments to the terms of the Disposition and Development Agreement: Increase the Maximum Agency Repayment Obligation by $783,230; Decrease the Base Sales Tax that the City would receive from $550.000 to $340.000; Decrease the Annual Escalator Factor from 6% to 2% and 'postpone its application one year, begiMing July 1, 1996. The Developers were requested to submit financial information on current operations of the Auto Park in support of their request. Information pertaining to South Bay Chevrolet including financial rep-orts on operations and copies of loan agreements was received on March 20, 1995 and has been reviewed by staff. No infOrmation was received from Ford. Also received was sletter from Mr. John Abbene. attorney fOr the Auto Park'deWroPGnl. requesting that the Agency JlU'ChaSe parceI" (vacantland parcel west of Fuller FordIHondaJ.from South Bay . .. - -'---,' -'.""'.'" ., .. Chevrolet in order to expedite the sale and contiriued opGnrtfon of the dealership located on parcel 3. The letter from Mr. Abbene is attached as Exhibit B. Based upon this request and review of the financial information, staff has the following comments and recommendations, A glossary further explaining the DDA terms used below is attached as Exhibit C. 1. Aoencv Purchase of Parcel #1 '" ... South Bay Chevrolet purchased Parcel #1. comprising approximately 2.5 acres through the Agency for approximately $750.000 In August /993. The site Is d"lfficult to sell and develop .' at this time because of its limited size and presence of stockpiled. contaminated soil on the adjoining parcel to the reer of parcel #1. Staff Is currently worlclng with the fanner land owner to remove the stockpile. When that occurs, the rear 1.5 acres can be combined with the front 2.5 acres to provide a more appropriate site for a new auto dealership. South Bay Chevrolet is required to purchase the parcel if and when it is cleaned up at a price equal to the price per square foot price paid for Parcel #1. South Bay Chevrolet was aware of the conditions on the adjoining parcel at the time of purchase of Parcel #1. . . Assuming it would be pOSSible to sell the parcel in a shorter time frame, South Bay borrowed $1,045,000 from GMAC on this property based upon a rather optimistic appraiSal of its value once improvements (roads, sidewalks, sewer, etc.) were installed. This loan is cross collateralized with a $3.9 million loan from GMAC on Parcel #3 for construction of the dealership. The Joan is due to be paid off in May of this year, thereby providing an impediment to transfer of this parcel along with sale of the dealership, South Bay has ,~r-~ 5-J- "._/. -@.- .- Page 3. em _ Meeting ~~!~5 ~ requested that the Agency repurchase this Parcel, for at least the amount of the loan. Based upon the 'Iack of response from the target market. the property appears to be over- encumbered. The problems impeding sale and development of this parcel stem from the discovery of contaminated soils and the need to stockpile them until an economical removal plan is authorized by the regulatory agencies. The decision to financially encumber Parcel #1 was unfortunate. South Bay Chevrolet does not have the funds to retire this debt in May. Assuming the Agency had the will to acquire the site, funds are not currently available. The Agency is, in fact. planning to divest itself of property in order to retire its own debt. Consideration of acquisition of parcel #1 Is not be recommended by staff. 2. Increase the Maximum AGencY Reoavment Oblioation The Auto Park Developers were anticipating 'approximately $1 Million more than they will receive In reimbursements for construction of public Improvements through Assessment District 92-2. The shortfall is apparently due to miscommunications between the developers and their consultants concerning limitations at the Assessment District. In an effort to make up this shortfall which includes a $730.000 right-at-way acquisition charge, the Developers have requested that the Maximum Agency Repayment Obligation stipulated in the DDA under Incentive Payments (see attached description) be Increased by $730.000 to relmbcne the Developers for theJand cost attributed to public rights-of-way. ,ThIs.would Increase the Agency'a Muimum Repayment, Obligation .during.the finIt 81x.years9foperaUon of the Auto' Park from .1:.9 muon to a~ .2.630.000.. .ltahould be I)Otedthataily amount not ..' repakf dUrf"gthe first six years Is forgiv8n. . Even though It Is unlikely, given current sales volumes, that the Auto Dealers will generate enough sales tax revenue to be repaid the $1.9 Million within six years. it is not recommended that the Maximum Repayment Obligation be increased. The Agency has already provided substantial subsidy for this project through the purchase of the Broadway dea.lership properties and the loan the Shinoharas to relocate the contaminated soils. Further subsidy based upon the lack of vigilance by the Developers and their consultant during the . development process Is not justified. In addition. once the Maximum Repayment Obligation Is satisf'led, or six years elapses (whichever occurs first), the Developers continue to share In :: i the post Incentive payments for a period of nine years. 3. Decrease In Base Sales Tax from $550.000 to $340.000 The Sales Tax Base - sales tax revenues based upon 1988 auto sales from the Ford and - j. Chevrolet dealerships which would accrue to the City before incentive or Post incentive payments to the Developers are computed - were set at $550,000 per year under the assumption that auto sales would Increase from late 1980's levels.. However. the evidence submitted by South Bay Chevrolet indicates that auto sales in 1994 were considerably lower. and off to an even slower start in 1995. Although Fuller Ford did not submit sales information, the owner of the dealership, Doug Fuller, verified in a telephone conversation with staff, that 1994 Ford sales were down as well. If further action on this item is desired by the Agency, staff will validate sales figures. -lZ .f6 5~~ A reduction in the base would have a direct financial impact upon the City since the City receives 100% of the base before the sharing formula with the dealers goes into effect. Based upon the potential impact to General Fund revenues, reduction in the Base Sales Tax limit is !!Q1 recommended. '... '.'145 Page 4, I~-.-- ~ ~ Meeting Date: -15/ {7 / ~/o2lJ)p 4. Decrease the Annual Escalator from 6% to 2% As indicated above, the base sales tax, $550,000 in year one, is to increase by 6% per year for 15 years covered by the Incentive and Post Incentive payments. The developers have requested that the increase be reduced to 2% based upon the lower CPI for the past few years. The 6% annual increase was predicated upon inflation rates in the late 1980's when the terms of the DDA were developed. The CPI for the past two years has everaged closer to 3%. Reduction of the escalator to 3$ would result in a loss of approximately $12,375 to the City In the second year If the Auto Park generates at least $550.000 In sales tax revenue from July 1. 1995 - June 30, 1996. If the escalator remains at 3% for the next four years. when compared to the .current 6$ escalator. the loss will Increase slighUy each year. Based upon lower inflation rates, a reduction in the escalator is justified, at least through the incentive payment period. A reduction from the current 6% is recommended for consideration on a year by year basis. In order to accomplish this, the DDA will have to be amended. If this report is approved. staff will return to the Agency with a revised DDA for approval. . . . . - . ,. .,. - '<-, -- - .'". ;.,_.... -. -.': '., .......--. '""4.'4": ',_ . . RSCAL IMPACT: The SalesT..x BaSe lnCr8aseSe8chY!l8(by'thGealatOt~,~SaIes, taxrevenues received OVetthe baS8'P1Us~escal8tcif'8i8tShnd ~UiG.AQ'" co'." (25$) 8ncf: the Auto ParIc Developers (76$) thrOUgh' thci ~'PGdod (y88i'S 1-6)~'~'esCal8tor decreases below 6%. the amount subJectto the sharing formula IncreaseS. Since the Agency receives only 25$ under the sharing formula. 75$ of the difference between the originel escalator (6%) and the reduced escalator will be a .'oss. in terms of anticipated revenues. For example, if the escalator is reduced to 3% at the end of the first year of operation, the base in the second year will be $566.500 ($550.000 base plus 3%). The Agency anticipated the base plus 6%. or $583,000. The difference. $16,500 will now be subject to the sharing ~ formula with the Agency receiving 25%. or $4.125. and the Developers recaiving 75%. or . $12,375. ThIs last figure ($12,376) represents the -lost- revenues to the Agency. ".,. .. .' During the post..Jncentive period (years 7-16). the sharing formula changes with the Agency receiving 62-1/2% and the Developer 37-1/2$. The lost revenues during the post-lncentive period would thus be equal to 37-1/2% of the difference between the bese at the time plus the escalator and what the base would have been if the escalator had been a consistent 6% from year 1. __~4 IFKldiskAJautopark.a 13) -~ ,5 -1- EXHIBIT A ITEM TITLE: Report Request from Auto Park Dealers for Additional Fmancial Assistance SUBl\1UTfW BY: Community Development DirefO\:. .C....S . REVlEWEDBY: ExecutiveDirector \[,!)\~~ (4/SthsVote: Yes_ No..xJ . ~ ~ "" BA.CKGROUND: On Tuesday, lanuuy 17, , the Council approved a conditiona1payout of $1.3 mmion to the Auto Pad: Devdopers for construction of public stred3 within the Auto Park under As$("""~ District 92-2. On Thursday, IlIDUaIy 19, 1995, staff met with the Auto Park Devdopers, Messrs. OIdway and FaDer, and their attorney to "i"CUss fi~"''''i"t problems . ~SMI'i,,1Pd with a 1owQ" """'--f"J1t d;mict payout than antic.ipated. As a result of that rrIH'Ii'1g, the developem have made specific requests for financial assistance (see """I"l:tment A) which have been reviewed by staff. - REDEVELOPMENT AGENCY AGENDA STATEMENT ItemL Meeting Date 02/14/95 RECOMMENDA.TION: That the Council review the letters submitted by the Auto Park devclopea' "ttnrn~, lohn Abbcnc, n:questing specific fin""";,,1 "$Si~'1CC and lYInfinne di.....,ftion of this _ ClIIC week to aDow staff time 10 obtain and ~ "'....1......."1p fi......,.;"" ~ 10 poyidc a cost beac6taDal,ysiuqatding fiMnt.r..l ~~c-..".. _.:::" ;': h, ,'~ .. ::"-w,'i"..;'\.:.;:'.:.!,O?:'...., _ ..,......' .'.,. ~-~. .....'~.........._ ',.10. -'^ .~... . " BOARDSICOMIW.~ONSRECOM:MENDATION: Not~h DlSCUSSION: At the meeting of January 17, 1995 with staff, the developers explained that they were anti~ti"'g approrim"te1y $1 million more than they will receive from the CiJ;y under As,,",sment District 92-2 for constIUction of on-site streets and a sewer pump st;ltion. This will leaVe them short in mPI>fi'1g their olhet fin"nM"l obJiVtiOlllL The shorttaJ1 was &pparc:IIdy due to mi"'"^"'mnni....tJ~ bctw=l ~ dcvdo.pera and their consn1""",." Althoughthc ~ bond J' ,issuo was for $1.9 mmi"'l,. thc devdopea IIad DOt been ~ by thdr consuJtl that ,.aa......;""'fdy $400.000 oftfJc A~CI('\1ClJt Disbict~ ~ being used 10 pay o1rtfJcir obJtg;.ti()l1S UDder tfJc Otay Vancy Road hB"o"""tt District to avoid double ..'.......hl~ did-riet liens llglIinot their pro.1J<'4ty'. Au. adtltfional S2OO,OOO waS iIpp1ied towaros bond issuance costs. ~.._>. IThe Developers' consultants wod:ed with staff to. develop the pro forma for the as.~ent district, the acquisition agreement and all other related documents and was aware and advised by staff of all of the constraints including the requirement to payoff the lien for Assessment District 90-2 (Otay Valley Road) so that there would not be two as~srnent district liens against the prope..ty, and also the City's limit on issuing bondS for assessment district (no more than 33 % of the valuation of the property to be assessed). p.(i} 5-5 .' ----:/ - Meeting Date 02l14/95~- --:-~- -,.-~ '- - The developers were also not informed that the City is limited in the amount of bonds that can be issued under an assessment district to 33 % of the appraised value of the property to be assessed, regardless of the total cost of improvements. In this case, the City's bonding limit was $1.9 million, although total costs including a $730,000 right-<lf-way acquisition charge, tolalIed $2.5 million. In establishing the assessment district, City staff worked closely with the developers' consultants and fully disclosed all these issues and constrain~. In an effort to maIre up for the shortfuIl of funds, the developers have requested assistance in securing a loan and reconsidaation of specific femJs of the Disposition and Development Agreement which included a yearly payback to the developers over the first fifteen years of opaation of the Auto Parle based upon sales lax reven~e:s gene.rated by the dealerships (further explained below). They have presented a specific proposal to staff for review in a letter dated JanlWY 30, 1995 attached 1Iereto. However, there were no documents vedfying CUIIent fin~nN~t conditions submitted as support for their request. Under a separate letter also dated JanlWY 30 (see Jlfn""ment A), the Agency is requested to rc:purclIase pareelll from South Bay ChevroJct.. The Agency had purebascd the site from Shinohac!. and conveyed it to ~ Bay cbevroJet in August 1993. 'IbiS parcel origjmlly comprised 4 acres. After deletion of the rear portion of the lot totalling 1.1 acres due to the need to stockpile contaminated soils relocated from the other parcels and loss of .4 acres for right-<lf way, the lot was reduced to approximately 2.5 acres. Mr. Ordway claims that he can not sell the PU)J!"olti now ~\'se of the reduced size and the presence of the conmmin"ff004 soils on. the rear. pareel. . - . '.' . .. .' .~." ,,", _ _ - .-' 'n ::r.-",-" ,~r .:. .' The ~fU. mrueses fOr .~~ Iftetudc tIlO fol1Owmi: . . .. ~ .:'.-:........ . " ~ftI-llCC fa .....-nr;ng a $1.1 miltio.. Joan. ~m"""'ntent of the DDA to ~ the mmmum payback aniount through jllN'nnvc payments, decrease the annual P..<ICalator and postponc the effective date of the "'-"""'ator by one year. Agency repurehase of pareel/1. . .,'01'- ,", ".- ~ AltIiough the Auto Pad:: Devdopets are ..l"iming finllnN,,1 hardShip, staff has not ~ 8dequatc """'""""""'fion to ~"ntillte the lImnnnf of hardShip or justify the Jcvd of ttMifiN...1 :; ~(lQ~. ~Mt,;...,..1ty, staff DCCds to nMcw Joan """'""""ttS pcmjning to all of . the pateds, ~ of odxrl'ftMlm"""""a aad~ :l'i'1g ""Iie-ts ;ntIi""tillg cash flow.. 'Ibis infnn-tt~ lias been mpleSt.ed from the 0WDeD. . .. It Is therefore J'N'n-<Jed tbat this Item. be coDthmed for two weeQ In order tbat the - j. developers can provide the Information requested and staff bas the opportunity to adequateJy review'this materiaL FISCAL IMPACT: The Developers have requested assistance in ~'nrirtg a loan with the amount of $1.1 million, amendment to financial femJs of the DDA and Agency repurchase of Parcel #1. ~$@ S-b , . Page - 3, nem-::L Meeting Date 02/14/95 Loan Assistance Assuming the Agency assisted the Developers in approaching lenders but did not directly loan, consign, or in any other way guarantee the loan, there would be no direct financial impact to the Agency. Amendment of the DDA Amendment of the terms of the DDA to increase the maximum repayment under Section 4Ol(vi) will only impact the Agency if the Auto Park is more successful than originally projected. The developers have mquested that the mnimum loan repayment be iJ:tcreased by $738,230 in . order to relmbuae the developea for the land right-of-way costs not forthcoming UI1der the a--..-:nt district R:imblln:l'!m....... Based upon initial revenue projections for the Auto Park which in".tttded CfJrec JaIge ,r,.,.,-sJUps (Ford, ClevroIet and Toyota, which was negotia1iug to pwx:hase Pared #1 at that time, and one small dealership) with annual sales increases of 6%. it was PM1ibJc for the developea to m:eivc adequate incentive payments to cover the entire loan amount plus interest through year six. There are currently two major (Ford and Chevrolet) and two smaller (Honda and Kia) dealerships in operation. Current sales volumes and the delay in opening a fifth dealership on Parcel #1 make it highly unlikely that the Ievel of sales lax revenues n........,~ to generate incentive payments to retum an additional $738,230 will be forthcoming dll"'W the fiat six)'em. In the event that the Auto Padc does ""-h.....dy wdl and "l'cecds Hfi"",f.cd saJes tax ~--cs d""'W dds ~ . the Agcucy, througf1 iD 25% sfIam, would also IJo m:eiviug mom l'Cy'~ than Rnffot"tpal.td dmfr,g the fiat six ~ '" '. ~ i~~f.cd aboVe, the base saJes k,. $SSO.OOO in ~ one. is' to increase by 6% per year for 15 yc:au cowaed by the i~ and post i"""'11ivc paym""lls. The developea have requested that the increase IJo reduced to 2% based upon the lower inflation rate in the past few years. The 6% annual increase was predicated upon inflation rates in the late 1980's when the terms of the DDA were developed. Infl"tioJ;l for the past two years has averaged closer to 3%. Reduction of the """"'"tor to 2 % would result in a loss of $16,500 to the City in the first year if the Auto Park generates at least $550,000 in sales tax revenue from July 1. 1995 _ June 30. 1'996. This figure will inccease dightfy each ~ for the ne:a ~ years. :=1be base sales tax was aho pMu.af.cd on actual auto sales in.the late 1980's wIIich have not bc= 1Pp1i~ since. 'lbc deveJopea have. COI1SeqUently. u:quesfI:d a reduction in the base to .. $340,000 which is com..-o"""3te with m:ent sales JeveJs. Such a reduction would have a dimct fin"nM~1 impact upOn the city since the City receives 100% of the base befme the dJ""1lg -J; formUla with the deaJea goes into effect. If the base were reduced to $340,000, the City's loss in the first year would be 75% of sales tax revenues ova- $340.000, up to $550,000. If sales tax revenues reach $550.000, the City WOuld lose $157,500. The sales tax base increases evei:y year by the escaJator amount (currently 6%). The developers have also mquested that the escalator not be applied to the base Sales tax until July 1, 1996. In accordance with the DDA, the esCalator is scheduled to go into effect on July 1, 1995. ~ 1c"l!J s _ 7 """'1;t: .., JJ:em I Meeting Date(Ji1i4i95'-~ .. The futancialimpact to the City of postponement of the effective date of the escalator would be re.latively minor, tolalling $33,000 in year one if the base remains at $550,000. The loss would reduce to $2,000:t pee year thereafter. Al!ency Repurchase of l'arcel #1 In addition to the Chevrolet dealership (lot #3), Mr. Olllwayowns lot #1 which compriSes 2.4 acres. Thls pan:el originaUy comprised 4 acres. However, Shinohararetlined 1.1 acres to stockpile contaminated soils. Ordway purchased 2.9 acres through the Agency. The site was reduced by 4 acres due to COnstruction of the westerly cul-de-sac of Auto Park Drive. Mr. Ordway claims he cannot sell the property now because of its reduced size and proximity to contamin"ted soils. He has proposed that the Agency repurchase the parcel at a value infl"fed to account for land development costs. In ~on. Mr. Onfway is required to pmdJase the 1.5 acres once the conbmin"ted ~ am removed (wIIich could occur lat=' this year). The Agency wo~ ~''''''bly Itave toll-'me this obJiglIti()lt as wdL This would requiIe a cash payment ofappro..;""'fely $1 million (perOldway's request) which would be tied up unlil the land was sold by the Agf:lJCy. It may be possible to .RlCOUp these funds when mamt conditions improve and the conbmin'lted soils am IeIlloved from the adjoining pan:e1. ak::autopad\xtcabeJp..n4 .~- , -.,-;. . < ';..~'~;~~'~;..~~~ ~~,n~ .:e'_~_:;::~J'" -~ .~{l~:.: ,.;,..~.,..>~~. . ":: -~ ";", ,"' . .-. ",';...:.~ '. -"',',,_"A" .~ rz ".~;;t -::-t~~ . ~ ~.:~ ,'." < .. .. , 'j. . ~ ~0 .5--6' .' . ~._~.. '.._- NUGENT 8; NEWNHAM" tt10t1"'_ ~. ,.cUQCl'CT '::'t:~HE:N L, ,..CWNHAH JOIl:.HU.... "'<<:1"'........... Ct1C"YL L. I'IVf'rlor;... 04'V'0 H.. f'CUeCHT "''''He. 0.. ...1t.4,.ll::fll ",~HACI.. H.. FISH '-""'1'tIIUC<< ..... ".-'TU. "'..... J. .....ItlI:NII: HC"ACOlTH G.. Al-COC<< ..T....CH w. "'_f\'He eCHOIC c. "''''folH M. f(A"'....."'N ..E:"'..,....... ... ..fIlOf"CS..'OH....... C~OlAT1Of'( ....TTOR...CVS AT LAW LA ,JOLLA OF'F,ICC 1l)'5 Pf;lOS"CCT 5rRCctT. ""(TiE: ~os II.-A. JOLLol." CA.l.f...Ofllf'l'..... OeO.Ji7 Tc:u:....Of'tC ,.,., -.o.~O'" .......C.'t-fILC (<lOt., ,",cs"'oso:a COIO c;c:eOl'fct .a.VC:HUc:" lliunc teoo 0A.1'C DIIrOO.. CA.LtPORN't..&.. g"2101-3944 'l'l:LCf"HOt'lC c.... .:'-..0..1 r"'C:J,..CLC (.-;,., ~,,~" January 30, 1995 nv Fax and Hail Sid w. HO~...::s N'..""'E:.T" :-:-..."..,...... fp(; Cii:y KanagGr City of Chula Vista. 276 Pourth Avenue Chub Visi:a, CA 91!ho .... ._---_. =":' != ~..... ~.. 3" r~ t:.~ -:: ~..'''-., ~~: ...:; ';' :.R,e:. Chula Vista Auto'"Park ."".-'" .... .1: .'.' i ." . ". "J?ear 1fr.. Horris: ..;: ~:... -. ~...~~..:. ; : =z 01. .. : . --. .. .... ,. .:" '. .. f . .. .;: ~"f~Ii!e4.1n .~~:Oii"JaD.aui;;..;U,.'~' U9$,.,..~'.. ~:~..,t2leo ~.k, ;f. i~~f'(DaV14 ~Gr4hrGQt'" %:l....,,;lS. '. ~~~~1~1~:%~:t~f~o:.t~~:r ~ bOD4 Proc.n<<s. W1h9' dlfItCS8<< ~02:' l"Ul~:~ Jl'0.92-2. ~ bob4 prOoe4lds to 'be d1sbarsec! i:O ~ ~ are ..,,.ost ~t ~..c ttian ~t ~. Va.c or1.g:f.;.."y conteliIpla~. '. We un4erstand t:bat tho amount: of! 1:h4li bonl;Is ~ld WIU: l~~d by .the value of the proper1:y ~"t f~ tbG A1:~Q~~ D~1:rict, :Jn1t also rea11ze that ~e ~luat1Qn ignored any value for improvelllents to tho property ~c:h are significant.. . . :. It .V4S ol='J,9i"""'y.contemplat<=dt:ll.at t:be bond.PJ:'OCaeds voa1d .~ ~ ~ ft1r t:be ~ of ~ 'the U-(A-oOo- 1Ietits, pa~t t:hit ~1:.;ei:be' ~ ~ ~ ~or A'SS'....ent . D.1str.1ct: .0. 90'-2,.' . '(:he ~ for lnoidente1 cosb t!nd pq'..~ 4~ $73a,230 ~9J: a~tf.on of the ~t:s-of-. way .~ t:r:aJJst~..4 1:0 'tlle d.ty. Die ~ ooasb:uct:iOn costs an4 '~dezitaJ. ~ 1~..&d tiy 1:he'~~1opers IRIS ~......VAl.- 2IlateJ.Y-~1,5:$O,OOO it the aJ1Otjht: ot: bOnd proceeas being disbursed !!IJ oi11y !;1;368,OOlJ. ~e'Clost:;~ ~~ ~cat.ed above does no~ 1nCl~ th. ~ .for _ th. .~ Rio water Line. 'L'Ims,.1:he honc1 ~~ v1ll.n91; ev.en'J:'~.tb~ ~Ve1opers for their out-of- . ~ costs :1ncutted.J,n COnstruct:Jiig' the b/p1..,vaents. . .. ... . .. ." -..o .. . . '. -.. .. .:.. . . ..' . . . , .. .:t:n addi,t:!on, 1:he"delay. irithe w1d~in9' o~ otay Valley: Road has Gi.~ificant1y impacted :the bUSinel!18. of the dealers in' the Auto . " '.. --~. . . 5--9. ;:. i - -- .. . I .. ..... ... : .~. - ~ . a.." .' . .' 'J.' ----.... sid W. Morri,s city Manager City of Chula Vista JAnuary 30, 1.995 Page :z li Park. other 1:actors, such as the devaluation of the peso, have adversely ar~ected the' busin~ss ot the dealers at a time when overhead costs have increased dramati~lly. . As c1iscuss~ at our meeting, the - developers are hereby respa~uJ.ly regl.l~g .assistance 1:rom the C1~ of . Chute. VisUl and/or tho RcKleve10pment Agency J,n JMlc:lng ~p the shortfall in the bond. prooeedc and dirQCt1y OOIlIpensat1ng the developers S:or the right:s-of-way., _..... _ __ ... _,... __ ,: __....~:_ :-:'g:t;-'FS ~:::.\T 1. ~"C:""...,,-_~ ~ . ;;: := "7."=: .~.::!~ ..: First" t:he ~evelopers request the assistance 01: 1:I1e city' and/or. Wevelopment: Agency 1D secur1Dg loans' in t:Jie total. amount ot $1,100,000 t:o reimburse the develoPers for conlO'truction costs and lni.scellaneous eXpenses not being reimbursGd by the bond proceeds;. to reiinburse tlle . developers . 'for costs incurrGd in :cob.stru:cting.the ob.y Rio Water Line, and tQ make up the shortfall in; the. bond: prciceeds ~or the right-of""Way acquisition oosts. . :..... . r , ..._ . eo. . '~P~~~~~=~~~:r;:=::t (~") Qov~'~ Qa ~~.i>> ~_1:b4:~~>.out>~f~'Ve;. . ~'~1;P8.7able..to..ttie ..~U a ae~. ~ ~."Y ~ t;ho,a .(f# t:be Cc,ise:.~ ttie ~ ~ of the ~~~.. ~v.aiaeDta (ft~U' i:Jaan a .ere horJ:ow1ng' ~or 1:he .CQ.jt: o~. - ~ch '1~).. . '. ~o bon:~g.fOr :.the cOst: ~ 1:b.~ .land . ref~ -to .~. vi1lo:pl:oV1dO' ~.. .deyeloptts with short-term ~p.1:tal' needs Wf1,,ile changes. b:_1:he hcen'tlVQ payments will 4ssfst 'the d~ve1opers in repa)"ii1g the l~an. . I - - .-: _ ".- :.. :t:~: eo .:.:..: ~.!. .. ., /, A proposed.e.meildm~t t:ci the DDA:1s as follows: . . .. :... '" '".. . ..:... ._0::. :. ":.:1 00 ". : . '.1. ~'c~ ~_ R.opo~ .;()bUgat:1on...in- .~ : Sect:f.oil. 401.~. (Vi) ~ ~. ~. by' -t:he COI1t:eIIp1at:e4 d"ght-ot-way acquf.sl1:1cm' oost ~.. $738r230. 0 -"':". ,-0... . ... .. .:'" _ :-':..... -. .:.... .: ;. ~. ,'... . :i..: ~e.BUa ~1es ftx,-_Oant.shoa14.a 4ecreosed. . o. ~':.$3.cO;OOQ '~'... a~~.U:G1Y.~~~ 'th8'.sa1es t:axes. , ':.. .p&14:b,y. t:be .~~~ ..til.the:Pf,st:~_. ~e' average Combined '. . 't>o.q..hle ~ of lP!tll~ J!'ox:d.an<l.SOttt:h Bay ~evrolet ror .. . 1~1l1 -.nd 19512 (the '2'years':'PreQaA'h,g'the Closing on the . . ian<! purchaco) -was ~tGIY $33,~OO,OOO.". . . .:. 3. -. ~e .~t: 'oscalator.::;on :t:hE!:~sQ.sa1es .Tax amount. Should be' de<:realj~ 'frQlll :6t:-tQ~2t_'and .the first year 'of" ~crease-. f!lhouid he the: Ag-ency. Fiscal. Yoar. bGglnning . ': July.I, ,1996.: . ':' .. .' . .. -'" . '~1f!@S_/() .... . . ---. . .... :.:. :-r -. . -. ".. . - :-., :. .--- . ................. ""f"'lII....J<.1 >-.1 LL_4::.t Sid W. Morris City Manager City of Chula Vista January 30, J.995 Page :) We greatly appreoiate your pagt assistance and wiU~gness to discuss these JDatters. rf you wish to dis:cuss these matters berore taki.ng them to the city Coun.cil, please callmQ. As we discussed, We tlould appreciate your taking these issues to thQ City Council meeting on February 7, ~99S. Thank you for your cooperation. .. Sincerely, . - ..... .' -::-!r"":-,~ JJA/nf cq~ ,-ChriB 'Salomone (Via Fax) Co' D.ouglaa Fuller .. 'Z' 'David O1:dway '. _: I ~a.v.i,a Reneau :.0.. . . . 1.: .... ~~. i!1..: ... .J- _..:. -=:..,_.... .' ...- :- .. .' . . !. - .... . ~~ .:.o . , -: . ~: -_.. ::.:. ==..... '. -..- . ..... :: ., , .. .' '-. . . : .' . . I "'_J_ '. I. '... '! " ::tr-0 6~1/ This page intentionally left blank., . .,' -J- - . .:........ _. ._4 .' s--- /1-- - ' '-~'--.." OL?,~ f"<<..AX:I"C' 6o~i;~' Jo(j' n:r::vt:Jo.-JHN-~.5J LL:d::J NUGENT & NEWNHAM 'THO........ P. foCUCCN'T OTC,.HlI::N L. .U::W~H"'H JOSHU..... WCfHHAl'<I c:Ke........ '- .u~....c. ~Y"O ... HUOCtfT J4HCS O. foC'I.U::A Hf<="ACL toe. r..... ,....nuctc; H. af"lnH JOHN.J.. .....CNC "c,,,:o.fT" ... .A~OC:", STeveN ""'- tM..C'HS .f"." c:. t.YHt( ft.. "'-"Ttuu'.. rfCWHttAH .... pfltOrcc.fOfo(A.L. Co--.oolIATlON #\,TTo"....CY5: .....T LA..W 10.0 acco..o ....VCHUc.. SUITe: ..00 9.1-14 ntltoo. CAJ..:rPOmcrA. 00:101-:1044 TI:LC,."Ottc (oe., U05,paJl ,.~C:S.CHI~ C..c., ~s t.A ..JOLIJI. OPF'"ICC . Fe ....OS...CCT eTACCT.. 5UITC .sos LA JOLt.A. CAI.'lI'O"H'... _:lOS, TCL.~"O""C fOC., -.-.oO~1 rAC51HfLC (.10' ~."".3$4 January 30, 1995 BY Fax and Mail si~ W: Morris. ~. _ '......, City M41ufger-r;:!'tr, '~~T 1. ,~:-~ f'F(" City of Chu1Cl VistCl 276 Fourth Avenue Chula Vista, CA 91910 ....... ...... 'Of _._......... ~- :: .~...... ""O'\'-':'.~ .,..__ ... .... -..---:- Re: ~. . . . - .' ---" . - Chul a Vista Auto -Park"... 'Parcel ,'1 'So..... - ." .':' ,""':...;:.. ... .. ,- . ..-/ :l~ i ~ · Jfr~ Harris: ,.,. ~: .,. " cr......'. .........A\.t..~~_:.. ... .1. =- .'~:'-Oia'J-1:i-"'~"~"DPe..' ....~~<<t.._. ~,.r~..ls.Denea~.'Owc. -...~t:7~~. .. '~~~::-~~~~1Uit'tm:~UIif;l1ra14 V18ta,ltttfo.a""', . ':..' " '.'i~J-'~'Oi~a:li'ur~";ve'riqueat t:he OJ; .... ;,.a'n4/ti):'~l...qt~'.~Yit21~C:o ' 1 .', o~_1:he .tuEO ~, .t:be ~ 1qt:.. b ~ biow, i:he .bo Ot: hJ:oe1 ' 1<:.ra. 'il1gn1f!~ ~ "ben' ~ted GOb. 'WS t:oand 1:hroUgb,?ui: ~e eni:h:e Au1;Q Park end SJ:ore4 on a Holding sit:e CllrVed O11t .of the original P~l 1. !he _l1"sb;~ of Parcel 1.end .1:he :f~~ of .~. SJUn~4,:t:o reiAo<2hte tb.e IIQJ,cUng s1.t:e or even ~d~~ ISt:Ore 'the oont-ft'ete4. soil has IIIade ii: bpossJ.ble :for .\he oim~ .'to. sell 1'ii:i:001 1.!.'J1ey haYQ .Had several. pot:ent1al . .pu;y~ In:lt:' 4ll have in4ioated. t:bat- 'the parcel. 16 no1; 1.arge enough tpr'4 ~ ~~. ... ll'he aoai: or pu..:huing ODd bo1~'Pe2:ce1 1 t:oget:her wi'th t:ba drlpIa1".~""'lljof~.ll ~4 h ~ South Bay Cbcm:01et:, . ~.~ ~ '.~t;y or Kessrs. ~y.&UId Reneau t:o _ ._ 'c:ofiUstue ti). ~ ~e'd91~.... 2;hq..ero h 1mmed1e:t:e. need of, ..L your t:~. a$si&t:ai1oe'or ~er. Slay J)e forCed i:o .close Soui:h ~ 7) c:b.eVrolei:. ~cq..eqlJes,t: .~ 1::1i1l Cit,y ~/or. Redevelopment: Agency purghas,e P~l.~.~. o~...as,.#oon as.pO$Sible for 'their 6ut:~f-~tr QOSi: h ~ ~d ma1nbtln1"9' the parcel. In .4~dlt;ion,.'as:part. of t:1ie.~ t:ransaction, we must address the oblig'~..tion of ~et:$J:'S. OrdWay. atl4 ReJlea,u'to purchase the Holding Site' wen end ~.the oontamina1:ed ~oi1~is removed... . . . . . . . .' ~.J, . . ------ " .00. 5 --- /3 . . . . . ~. -, - -~_._- ......,--.--:-.--.----:---.- ~.~".-- -. c .. ,," - Sid W. Morri" city Manager city of Chula Vista January 30, ~995 Page 2 ~~. owners 6~ek reimbursement: of tho following costs: original Land Cost Share or Infrastructure Coat Not Reimbursed by Bond. J;>roceeds $ 876,511.00 Penaits 26,681.00 5,104.00 -. .' Property ~axes - F~ I:ns1;ltll"'ent 1994-SS. . - .. ~ -First; InGtallmen1; SUpple!nental__. r.'?'""1>''';,s t::~ ~:~~~4 ~; = ::. Both rnstallments ror 1993-94 19,660.00 Znt:erest Exp<mse -.. ........... ... ...;s,~48.00 . "j,668.00 103,672.00 -::. =-;" Misc~11aneous Fees and Expen..es 10.000_00 , .. .{ . . ..... .' ~'I~! :' .. t _ .. : .....;... .. ~..: "., .. .~~':. ~p:~~~.~1..~~!:i!Jae..'~~~.._.a. t#'~.l'.2~,Q4.i..3 'as .... 'W9oLL' &11:-. "com. ___ ..... .,. ,., . ~~~~~~~:~;. ~~:~ ~ ~'X"eoqYal; ~e cost. Vnt~t:ely, 'Kessrs. ord"wa,y ilnd J!eneau are QlUlble to hold t:h1s parcel When it is not V~9rat1ng 'any income and cannot be sold until' the' Holding site is re1l1.ec11ated. , " _._ ; TO'I'AL $1..048..544.00 . .. '"-. .- .-,i .J :. As we discaSsed, we VOUld appreciate your 1:aJd.ng this JIRltter ~ the ,City Couao1l ~.~ on F~.7, 1995... 'If you wish to ~s ~ Aa~ bef~ . 1;Itt.-f"9'"1i: 1:0 tbe City ConIJOU, P'''!lA can JI\e.. 'lb....~ yoa 'toa: your oooper&Uou.; . .' . .. -.. :.:......C f .. .S1ncere1.y., . . , . .... I . .. -J; :JJAf~ co: :Chris.: SalOlllona David Ordway ... " Travis Reneau (Via Fax) : , '.~_ :.. " ";1' '0_ o"iB :: -;.... ....5:. -...,f '~ "-.' --'-'-. - --: ~5 -/1 - : ...... . EXHIBIT B TMOfolAS p. NUGENT STEPME:N L. NEWNk....M JOSHUA WEIN,"''''''' CMERYt.. L. RU""'CR OA,VtD "". NUGCNT .I........1E:5 D. ....14..LER MfCH...Cl,. H. ""SM PATRICl( M. SMITH JOHN J. AellCNE NERCD'TH G. At-COCK Sl'"CVEH W.. .....SKINS SIt040N C.. '-YNH M. KATHRYN HE;W........f04 NUGENT & NEWNHAM ... PRO"'CSSIONAl,. CORPORATION ATTORNEYS AT LAW' LA JOLLA OFFICE 1010 seCOND AVENue. SUITE 2200 67$ PA05PI:CT STREET. SUITe 305 LA JOL(..A. CAL'f"ORHIA OZ037 TELEPHONE; CG'OI "':50-3421 SAN DIEOO. CALIFORN"IA 92101-3944 Tf:LCPHONC f6'O' Z38-f3z3 ESCONDIDO OFFICE: "ACSIM'LE te'ol 2.3&-0465 1766 SOUTH ESCONDIDO l!IOULCVARO ESCONDIDa. ~"ORH''''' ozo~ Te:LEpt.fO....C COIOI 7~-S'OI March 1.7, 1.995 Bv Messenqer 4- Ii/JI i995 ,'.:" .-ed 1),,,,.-... .' ....., .J . ......(.'....., I.:i:.....rir-:::fl' . Fred Kassman Department of Community Development City of Chula Vista 263 Fig Avenue Chula Vista, CA 91910 Re: Chula Vista Auto Park - South Bay Chevrolet Dear Fred: .~ Pursuant to the ~ett:er of Febr1uiry 13, 1.995 froJa G~enit Googins, we JIlclose the foUPW1ng ~ormaticin with respect to South Bay Chevrolet and the loans. against .Parcels 1 and 3 of the Chula V!S1:a Au1:o Park.. F.trst, enclosed are financial statements for South Bay Chevrolet for the 12-month period ending December 31, 1994 and for the month of January 1995. As indicated on these financial statements, South Bay Chevrolet incurred a $137,000 net loss in 1994 which includes a $288,000 net loss for the month of December 1994. They also incurred a $187,000 net loss for the month of January 1995. Also enclosed are copies of the Promissory Notes reflecting any loans made by General Motors Acceptance Corporation for the construction of the infrastructure improvements and the new dealerShip. One Note is for $:J04921,895 and the other Note is for $1,045,000. Both of these Notes a~.' secured by deeds' of trust coverJ,ng both' Parcels 1 and 3 in the Auto Park. ... With respect to the cash proceeds received by Messrs. Ordway and Reneau at the time the Auto Park property was purchased, Mr. Reneau indicated that of the $175,000 that he received, $142,500 was paid to his sister for her interest in the property at 821 Broadway and ~hp.. balance was put back into the dealerShip.' Of the.~ rece~ ved by Mr. Ordway, he indicated that $1.60,000 was contributed to the dealership and the balance was used for personal reasons. We request that this letter and the enclosed financial statements kept confidential. -if;; ~S- - /S " Fred Kassman Department of Community Develorment City of Chula Vista March 17, 1995 Page 2 We will forward the financial information on Fuller Ford as soon as it is available. However, with this information, the City and/or Redevelopment Agency can move forward on the request regarding Parcel 1. If you need any additional information, please contact me immediately. Sincerely, JJA/nf cc: Travis Reneau David Ordway ,~ i~;';~'~':;~' ;.; _,i?~ ,'GG.~ j c..: ....,. . ." ;:. ,;..~... .::r':';;:.,.; :~ :;>~'io' ,':"4.l:i-;:';'::,":~:; ;.;;"':'.~~;~,:.. ,'::;i" . l! ~. '.:'l~""";'~.~-f~ ,.'.~ d::tu(',..... ~,:.;f ._.~ .-., "'--' :..:1""''-.....;' "_ 7;:t -~".<:: ~: '-::...\'1 ~c .~.;. ~ ;' ._,_,r... . :,';A .. . ...~ .:..;,...... "J.' P- ,i 'J. ;'l@ 6-/';;; ~:. DEFINITION OF TERMS <-. ,.- i .- .' -J. ~' (ji) S J} ~. -. EXHIBILC . This page intentionally left blank. ... 1-.0 ." .-/ -J- '" ~- .'>'1- Q ~-- /f ~. - 1 2 401. Aaencv Incentive and Post-Incentive PaYments. a. Definitions. . As Used in ~~is Section 401 thE following definitions shall apply: ' (1) NAaencv Fiscal YearN shall mean the year beginning July 1 and terminating June 30. (ii) .ApPlicable PercentaaeN shall mean: (w) during any period of time that less than two Major Brand ~uto Dealerships are operating on the Site, zero percent (0%), (x) during any period of time that two Major . Brand Auto Dealerships are operating ~n' the Site, twenty-five percent. (25%), (y)' during any periOd of time that three Kajor Brand Auto Dealerships are operatiJig on the Site, fifty percent.> (Sot), . and (z) during any period of time that four or more Kajor Brand Auto Dealerships are operating on the Site, seventY-five percent (75~). (iii) NBase Sales TaxA' shall mean, for any given period of computation, the amount of $550,000.00, as such amount shall be increased by six percent (6\), on a cumulative basis, at the end of each Agency Fiscal . Year. The amount. .0f...$550, 000. OO'~represents one percent (U) of $55,000,000.00. ;:, .' .". ". . 'I"~ . S:J ...-vA':! 6V.i",luoa1 6U.. \.L.L1 .... t tp, -"::1.':0 .~ . na_"t .. .(lYJnnl!A-t_1\PavitAnM~eII""'''_ 'D8~ .i.:t.l!l;1r.1ql&iiJO !~~~~~~fria$f~W~s&g%aa1:1cm"'Dat:e. , ~"'~t!!~jb..~ ..ls~~fr~~~~<<?nl05d~aboVe)., .. !'ta ~'- ~Provided such' date~occurs 'wlth1nt:be thaecontemplated therefore in t:beSchedule of Performance . 3 4 5 6 7 8 9 10 11 12 13 ....'\,!'> .<1." '>'........ 14 L iHmfa If. . .0 II . -' 15 . . -",,, 0:1'1.-0"". 16 17 (v) NIncentive PavmentExoiration Date. shall mean the earlier to occur of (x) the sixth anniversary of the Incentive Payment Commencement Date, or (y) the date upon wh.ich the Maximum Agency Repayment Obligation has been satis~ied in ful~. (vi) .Maximum Aaencv Renavment Obliaation' shall mean an amount equal .to the lesser of: (x) the difference between the Acquisition Price and $3,767,504.00, and (y) such portion of the amount . described in clause (x) which has been paid by Agency to Redeveloper .in the form of Incentive Payments as of the Incentive Payment Expiration Date. Portions of the Maximum Agency Repayment Obligation remaining outstanding, from time to time, and at any time, shall accrue interest at a fluctuating rate per annum equal to the floating commercial loan rate announced from time to time by Bank of America as its .prime rate. plus two percent (2%). 18 23 ~_J. 24 251 26 27 28 (vii) "Sales Tax Received bv CitvN shall mean, for any given period of'computation,that portion of the California sales .1\A023301T.lIAP 1 which, following payment to the state Board of Equalization by businesses operated upon the Site pursuant to the provisions of this Agreement, was received by the City for use as unrestricted, general fund revenues. Notwithstanding the generality of the foregoing, Sales Tax Received by City.shall not include any portion of California sales tax collected from the site and paid to the City for special purposes, such as transportation purposes. 2 3 4 5 6 b. Incentive PaYments. (i) Upon the expiration of the 180th day following the. close of the first full Agency Fiscal Year after the Incentive Payment . Commencement Date, and occurring thereafter on an annual basis until and including. the -Incentive Payment Expiration Date, provided that in each such year the Sales Tax ReceiVed by City for such period of computation exceeds the Base Sales Tax for the same period, Agency shall pay to the owners of fee title to the Site, in the aggregate, the . Maximum Agency Repayment Obligation in the form of the "Incentive Payments". Such payments shall be calculated and paid to such owners individually, as described in 13 'O'P",' cJ.ause c(ii) ".below..._.~~'~'> , - .,:.~" i' _ . 'I>:'t ~.~ ..,~.. _) t'\r.!"\ "1'~"'. .~..... '-.!.. ~ ......!- _:', '~'::Y;-::". .0.0 . OOL. '\. ...., vv .. ~:... :'...~;. .......: "" A-; 4\ 14 '., . ell) 1'he ,"~~ve Pa~t. 1::0, any gi!~ Site I ...,..~ ~.tI~_:~...,...4 ~~-gi~~~~~:~~tiou.~.,l(,.v ~ ""......-'""..........8~~.IID1.1:1p1~tJie-au~erence ..It r '. ' ...s..1lIli, :ni"--::;:;'t'~iiI.t:h.b.Slte"'~/ExceSS.) ~: ex) . 16 ~-!""'--,-" t:he'Portiou. o~.the~Sales'~aX''1i8celVed by City whiCh is attributable to the applicable. owner's site Parcel during the given period of computation less (y) one- quarter (1/4) of the Base Sales Tax for the given period of computation, by the Applicable Percentage(s). In the event any Site Parcel is further subdivided, Agency shall have no obligation to make any Incentive'Payment . applicable thereto until such time as it has received assurances with respect thereto in the nature of the assurance described in Section 401c., below, executed by all owners. 7 8 9 ~. . 10 11 12 17 18 19 20 ,- "'" . ! 21 22 Notwithstanding the foregoing, in the event that, using the method of calculating the Site Parcel Tax Excess described above, for any given site Parcel one-quarter (1/4) of the Base Sales Tax is greater than the Sales Tax Received by city with respect to said Site Parcel, the Site Parcels for which such is not the case 23 -J. 24 25 26 27 J\Ao23301T.NAP ~~.~ 5 ~.;l 0 28 1 shall each have their respective site Parcel Tax Excess reduced by an equal portion of such excess. By way of example only, assuming that for year "x" the Sales Tax Received by City is $1,000,000, the Bases Sales Tax is $600,000, and there was one dealership operating on each of the Site Parcels during the entirety of year "x" (Site Parcels 1, 2, 3 and 4 being responsible for, respectively, $350,000.00, $350,000.00, $225,000.00 and $75,000.00 of the total $1,000,000 Sales Tax Received by city), the owners of Site Parcels 1, 2 and 3 will receive 75% of, respectively, $175,000.00, $175,000.00 and $50,000.00, and the owner of Site Parcel 4 shall receive $0.00. 2 3 4 5 6 7 8 c. Post-rncentive Pavments. Upon the first anniversary of the Incentive Payment Expiration Date and 9 . occurring thereafter on an annual basis until the ninth anniversary of the Incentive Payment Expiration Date, 10 provided that in each such year the Sales Tax ReceiVed by City for such period of computation exceeds the Base Sales 11 Tax for the same period, Agency shall make payments (the' "Post-rncentive Payments") to each Major Brand Auto 12 Dealership operating within the applicable computation period equal to the product of thirty;-seven :and one-half percent .13 >'. (" .(37%\Fof'the Site' . Parcel Tax ,ExcessJattributable to the Site c .f" .~,_... ...,.-.,-" . .. '"... 'r _, ", "...... .,'" .~ at } ,,~ -D,Parc:e1t U~lr~Jiich.s1!-~ ~~~p,:,1soloca1:ed Cwhich;i.' ,.oal..IIli14 :tt:lol t rcal.cula~OD .Of.S11:8'~!Q~ ~"Sl<,",,".' J . be sabjec;rt: to the ' .' ~ "s'Ule"!ladl1ist:iient:8~ ~ArA"""'''''~o.-A ~e(ll) ".ibOVe). 'C.PfJ>..--01.-::'"1~~~ "oi}i.r~c!~~~~ 'aSsa:est:ba1: ~cii Si1:e .(- .. .!!9 .. '. _ .~". _._~~t.' _ f.t" ,~~,!nf) Pa3:ce1<ifoihJoi1l."'haV-"DO'iaor.:';1:han one dealership opera1:!ng . 16 thereupon. "To the extent that there' may be more than one such dealership operating upon a Site Parcel, Agency shall 17 have no Obligation to make the applicable Post-Incentive payment'until such time as the dealerships operating upon 18 such Site Parcel deliver a written instruction to the Executive Director (in for.m and content acceptable to Agency 19 general counsel and executed by all such dealerships) . specifying the manner of apportionment and holding the Agency . 20 harmless in connection with payment in accordance therewith. :'0' 21 ..- .' 22 23 -.j. 24 25 26 27 28 d. Nature of Incentive Pavments and Post-Incentive Pavments. Notwithstanding anything to the contrary in this Section 401, it is understood and agreed that although the method o.f calculation of the Incentiv~' Payments and the Post-Incentive Payments is based upon sales tax received by City, in no event shall such method of J'\A023301T.N'AP .~ ..5-~ 2/ 1 calculation constitute a commitment by City or Agency of sales tax proceeds. The parties acknowledge that' Agency',s obligation to make Incentive Payments and Post-Incentive . Payments, based upon the calculations described above, is a separate obligation of Agency of which Agency shall be obligated to arrange for a source or sources of repayment and in no eV~nt shall constitute an obligation of the City. Adqitionally, Agency's obligations to pay the Incentive Payments and the Post-Incentive Payments shall be an indebtedness of the Agency for the purposes of Sections 33670, ~ seq. of the Community Redevelopment Law. 2 J 4 5 6 7 e. Miscellaneous. 8 (i) Accounting. Agency shall have the r!ght to receive from Redeveloper, and 1\edevelQper shall deliv~ to Agency within thirty (30). days following Agency's request therefore, an accounting and status report concerning and setting forth the present status and 'amounts of retail sales proceeds applicable to the Site for the partiCUlar Agency Fiscal Years in question, inClUding, without limitation, sales tax records submitted to the State Board of Equalization. 9/ 10 I 11 12 13 . . .. . I '-" . . ',- (if) - Calculationol California Sales !Tax. As . . ..),~_. ~ providedr~e,. 't:h4! ~~.fini~OD<:~1; ~.J;SaJ.es. l'ax -is ,--.. ',' . """3E,calculate4:aOD~t:h8 ~0Il ~1i~!CalUornA"''':'1saJ.es ~:::;;~:"~d - r.r~tax;..1:o~bii:~EurDiclf1:o~:.C1+.ii'':4i: ~. UDi;;"';b;! '-- '.,. ,'. eneri1~~8~.!i~ih1~1;J'~~ ~1~1t~- 'J '(~.''''} -:t2'(.!. ";'l..~t'!t:h"""""-,"'''''''-.'"~~'.CJ{~,'.'CJn1:a. -, "~~,' -Call.'o,L.t,;" ,:,.=,;" ->,~{;~:r <a':"oweverr~>UI" . 8-_......... $11. . '... _ .9'8r.0..., ...O....u.a . . saJ.ea tax ia':IiOdified"in' SUbsequent years, the parties shall cooperate. to reformulate the definition of Base Sales l'ax to take into consideration such modified percentage. Further, in the event such percentage is increased, the calculation of Sales Tax Received by City shall be limited to the originally contemplated one percent (It) amount, whi1e in the event such percentage' is decreased, the calculation of Sales Tax Received by City' shall be based upon such actual decreased percentage. (Ui) Failure to Ooerate. Notwithsta:lding any provision in this Section' 401 to the contrary,' it is understOOd and agreed that in the event that either: (x) the Incentive Payment Commencement Date fails to f occur within the time frame set forth in the Schedule of Performance, or (y) such dates having occurred within the time frame described in the Schedule of Performance, thereafter, ~or any continuous period of thirty (30) days or longer (or within any given one-year period in the event of any noncontinuous aggregated periOd of ninety (90) days) there fails to be operating upon the Site at least two Major Brand Auto DealerShips, Agency shall cease to have any further obligations to make 2':14 .;..:.1 i$ .. ($...... ~.:t116 ~ 17 18 1.9 20 .. ,. 21 .' 22 23 --.J. 24 25 26 27 28 J\A023301T.NAP f)-22- 1i ~ t ~~ I ...: ~--'-'~ 1 2 Incentive Payments or Post-Incentive Payments under the 'provisions of this Section 401. ADDITIONAL TERMS GMAC - DDA - General Motors Acceptance Corporation: lenders for auto purchase loans, dealer operation loans and mortgage lenders. Disposition and Development Agreement. c; ~)3 -.', ~1.~~_,~!~8JLd ..~t~ '~ C;'f/I ~ G: ,- - =- ~J This page intentionally left blank. ." " ". . ! ',j. ~~/ ~ ~, ;;:d!.,e; 5-;2 f INFORMATION MEMORANDUM April 27, 1995 TO: The Honorable Chairman & Members of the Redevelopment Agency VIA: John D. Goss, Executive Director~<1 b.xti~ (j ~ <;. FROM: Chris Salomone, Community Development Director L. SUBJECT: Status of Parking Restrictions on Auto Park Drive On February 7, 1995, the City Council considered a request by the Auto Park Developers to allow on-street parking on Auto Park Drive and Brandywine Avenue (south of Auto Park Drive). In consideration of the shortage of parking within the Auto Park, the Council approved on-street parking on the south side of Auto Park Drive and on both sides of Brandywine Avenue on a trial basis for a six month period. Parking and display areas are to be monitored by City staff and a determination will be made whether to continue to allow on-street parking, The determination will take into consideration the appearance of the area, utilization of display pads and on-site accommodation of inventory and employee parking, The approval by the Council required the Auto Park Developers to hire a striping/signing contractor and pay the full cost of the changes required for Auto Park Drive and Brandywine Avenue. This work has been estimated at $6,000. The City reimbursed the Developers for construction of the public streets and took over ownership of the streets in mid-April, 1995. At that time neither the restriping nor resigning had been started. A letter was sent to the Developers indicating that, unless restriping and resigning began by May 1, the City would begin enforcement of parking restrictions on the public streets. . In response, the attached Jetter was received on behalf of Doug Fuller (Fuller Ford/Honda) requesting a time extension to begin enforcement to allow time to complete the restriping/resigning work. This request is predicated upon the current turmoil at South Bay Chevrolet and their inability to share the cost of the work at this time. In consideration of the situation at South Bay Chevrolet and the assumption that resolution is near, staff recommends a one month extension to June 5, 1995, at which time staff will reevaluate the situation and return to the Agency with a status report and recommendation. Unless the City Council advises otherwise, staff will advise Mr. Fuller that enforcement of parking restrictions within the Auto Park will begin Monday, June 5, 1995. CS/FK:ss Attachment -k([) 5-~5 [c:\wpwin\Kassman\parking ,mem] ....-.. " , , . C~&D -.._---- ._~ Con.tf"uctioo Management & Development City of ChuJa Vista Department of Public Works Engineering Division 216 Fourth Ave. Chula Vista, CA 92010 ' Re: Street Parking for CV Auto Park Attention: John Iippitt April 19.1995 Dear John; Mr. Fuller is requesting If you would please extend him time on the street parking on Auto Park Drive and Brandywine Avenue. Due to the turmoil at SouthBay Chevrolet, Mr. Fuller would have to bare the entire cost of striping the streets. Mr. Fuller would like to wait until new owne~hlp of the Chevrolet Deeter can P<U1iclpate. 'The enforcement'ls the Week'Ol May'1st,.1995. WouJdYOQ please lift that untO further DOtJoe.., Your c;ooperatlon wOuld be ~ ap~tecf In tills matter. 'Jj Y CaUura C M 6- 0, Project Manager ,","'tIf. Oftice t2a NvuallO A~ Sdl 400f H~,,,fl.l. IiIW1Ill "',,. (lq1J $~7to ~OCJ $~$-2~ f~ s.. Diqo 0('<< .sqo ~"'Y ViRa load, ~Ct.~G" San Oi~.a- '2'2J @ <.17171""", ~ ' _ _ _ <.,,) 97'-'''01.. t'/ ;.... ! 5 - -:J-0 TOTAl P.02