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HomeMy WebLinkAboutRDA Packet 1994/01/04 Tuesday, .January 4, 1lJ94 4:00 p.m. [Immediately followiDg City Council meetiDg.] Coundl ('ha......... PlIblic Services Building COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT The City of Chula Vista, in camplying with the Americans with Disabilities Act (ADA), request individuals who may need special accommodation to access, attend, and/or participate in a City meeting, activity, or service contact the Secretary to the Redevelopment Agency at (619) 691-5047 for specific information on existing resources/or programs that may be available for such accommodauon. Please call at least forty-eight hours in advance for meetings and five days in advance for scheduled services and activities. California Relay Service is available for the hearing impaired. 1. ROLL CALL: CALL TO ORDER MemberslCouncilmembers Horton _, Fox _' Moore _, Rindone _' and Chairman/Mayor Nader _ 2. APPROVAL OF MINUTES: December 7, 1993 CONSENT CALENDAR 3. WRlTTEN COMMUNICATIONS: None Submitted. 4.A AGENCY RESOLUTION 1384 APPROVlNG THE CONSENT AND SUBORDINATION AGREEMENT, AND ASSIGNMENT OF RlGHTS UNDER THE DISPOSITION AND DEVELOPMENT AGREEMENT TO THE FORD MOTOR CREDIT COMPANY, AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE SAID DOCUMENTS--The Agency entered into a Disposition and Development Agreement (DDA) with the developer of the Chu1a Vista Auto Center which allows for the formation of an assessment district to fund internal infrastructure improvements. The City Council entered into an Acquisition! Financing Agreement for the assessment district on 8/24/93. Subsequent to these actions the Agency ICity Council approved similar agreements with GMAC in conjunction with financing the South Bay Chevrolet auto dealership. At this time, Mr. Fuller, developer of Fuller Ford and Fuller Honda, is seeking execution of similar documents in order to secure financing from the Ford Motor Credit Company. Staff reconnnends approval of the resolutions. AGENDA -2- JANUARY 4, 1994 B. COUNCIL RESOLUTION 17345 APPROVING AN ASSIGNMENT OF PROCEEDS OF THE ACQUISITION/FINANCING AGREEMENT FOR INFRASTRUCTURE IMPROVEMENTS FOR THE CHULA VISTA AUTO CENTER WITH THE FORD MOTOR CREDIT COMPANY, AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID DOCUMENT * * END OF CONSENT CALENDAR * * PUBLIC HEARINGS 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" and submit it to the City Clerk or Secretary to the Redevelopment Agency prior to the meeting. (Complete the green form to speak in favor of the staff recommendation; complete the pinkform to speak in opposition to the staff recommendation. ) Comments are limited to five minutes per individual. 5.A AGENCY PUBLIC HEARING RESOLUTION 1372 B. AGENCY PUBLIC HEARING RESClLUTIClN 1373 TO CONSIDER A REQUEST FROM ENERGY AUTO RECYCLING FOR TIlE PURPOSE OF ESTABLISHING A BUSINESS FOR TIlE AUTO STORAGE, WRECKING AND DISMANTLING AT 793-A ENERGY WAY, CHULA VISTA, CALIFORNIA; PARCEL BEING LOCATED IN TIlE OT A Y VALLEY ROAD REDEVELOPMENT PROJECT AREA (SUPO-93-03)--The land uses on the subject parcels were authorized by Conditional Use Permit #PCC- 73-27 in 1973 as part of the Olay Industrial Park and expired in 1986. Under the Olay Valley Road Redevelopment Plan, formed in 1983, the land uses allowed for this area is Limited 1ndustrial/Research. 1n order to continue the existing land uses, these being the storage, mainleoance and repair of heavy equipment, the impounding, storage and dismantling, and wrecking of automobiles, a Special Permit is required uoder the Redevelopment Plan. Staff recommends that this item be continued to the meetiDl! of Tuesdav. February 1. 1994. (Community Development Director) MAKING CERTAIN FINDINGS AND APPROVING SPECIAL PERMIT TO ENERGY AUTO RECYCLING FOR CERT AIN AUTO WRECKING USES AT 783-A ENERGY WAY, CHULA VISTA, CALIFORNIA; PARCEL BEING LOCATED WITHIN THE OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA TO CONSIDER A REQUEST FROM TOWN AUTO RECYCLING FOR TIlE PURPOSE OF ESTABLISHING A BUSINESS FOR AUTO STORAGE, WRECKING AND DISMANTLING AT 793-B ENERGY WAY, CHULA VISTA, CALIFORNIA; PARCEL BEING LOCATED IN THE OT A Y VALLEY ROAD REDEVELOPMENT PROJECT AREA (SUPO-93-04) MAKING CERTAIN FINDINGS AND APPROVING SPECIAL PERMIT TO TOWN AUTO RECYCLING FOR CERTAIN DESIGNATED AUTO WRECKING USES AT 793-B ENERGY WAY, CHULA VISTA, CALIFORNIA; PARCEL BEING LOCATED WITHIN THE OT A Y VALLEY ROAD REDEVELOPMENT PROJECT AREA AGENDA C. AGENCY PUBLIC HEARING RESOLUTION 1374 D.AGENCY PUBLIC HEARING RESClLUTIClN 1375 -3- JANUARY 4, 1994 TO CONSIDER A REQUEST FROM ALL-Z AUTO RECYCLING FOR THE PURPOSE OF ESTABLISHING A BUSINESS FOR AUTO STORAGE, WRECKING AND DISMANTLING AT 793-C ENERGY WAY, CHULA VISTA, CALIFORNIA; PARCEL BEING LOCATED IN THE OTA YV ALLEY ROAD REDEVELOPMENT PROJECT AREA (SUPO-93-05) MAKING CERTAIN FINDINGS AND APPROVING SPECIAL PERMIT TO ALL-Z AUTO WRECKING FOR CERTAIN DESIGNATED AUTCl WRECKING USES AT 793-C ENERGY WAY, CHULA VISTA, CALIFORNIA; PARCEL BEING LOCATED WITHIN THE OT A Y VALLEY ROAD REDEVELOPMENT PROJECT AREA TO CONSIDER A REQUEST FROM JAY JUSTUS FOR THE PURPOSE OF ESTABLISHING A BUSINESS FOR AUTO STORAGE, WRECKING AND DISMANTLING AT 891 ENERGY WAY, CHULA VISTA, CALIFORNIA; PARCEL BEING LOCATED IN THE OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA (SUPO-93-06) MAKING CERTAIN FINDINGS AND APPROVING SPECIAL PERMIT TO JAY JUSTUS FOR THE PURPOSE OF ESTABLISHING A BUSINESS FOR CERTAIN DESIGNATED AUTO WRECKING USES AT 891 ENERGY WAY, CHULA VISTA, CALIFORNlA; PARCEL BEING LOCATED WITHIN THE OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA ORAL COMMUNICATIONS This is an opportunity for the general public to address the Redevelopment Agem;y on any subject matter within the Agen<y's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the Agen<y from deliberating or taking action on any issues not included on the posted agenda.) lfyou wish to address the Agen<y on such a subject, please complete the yellow "Request to Speak Under Oral Communications Form" and submit it to the City Clerk or Secretary to the Redevelopment Agen<y 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 minules per speaker. ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the Agen<y, staff, or members of the general public. The items will be considered individually by the Agen<y and staff recommendations may in certain cases be presented in the al1ernative. Those who wish to speak, please fill out a "Request to Speak Fonn" and submit it to the City Clerk or the Secretary to the Redevelopment Agen<y prior to the meeting. Public comments are Umited to five minutes. AGENDA -4- JANUARY 4, 1994 ITEMS PULLED FROM THE CONSENT CALENDAR This is the time the Redevelopment Agency will discuss items which have been removed from the Consent Calendar. Agenda items pulled at the request of the public will be considered prior to those pulled by Agency members. Public comments are limited to five minutes per individual. OTHER BUSINESS 6. DIRECTOR/CITY MANAGER'S REPORT Schedule of Meetings. 7. CHAIRMAN/MA YOR'S REPORT 8. MEMBERS/COUNCILMEMBERS' COMMENTS . . . . . * * The meeting adjourned at: p.m. to the Regular Meeting of the Redevelopment Agency on Tuesday, January 18, 1994 at 6:00 p.m., immediately following the City Council meeting, Council Chambers, Public Services Building. [C:\ WP51 IAGENCY\AGENDAS\Ol-04-94.AGD] MINlITES OF A SPECIAL JOlNT MEETING OF TIlE REDEVELOPMENT AGENCY/ CI1Y COUNCIL OF TIlE CI'IY OF CHULA VISTA Tuesday, December 7, 1993 5:16 p.m. Council Chambers Public Services Building CALL TO ORDER 1. ROll CALL: PRESENT: Agency/Council Members Horton, Fox, Moore, Rindone, and Chairman/Mayor Nader ALSO PRESENT: John D. Goss, Director/City Manager; Bruce M. Boogaard, Agency/City Attorney; and Beverly A Aurheler, City Clerk 2. APPROVAL OF MINlITES: November 16,1993 and November 23, 1993 MSC (Moore,lFox) to approve rhe minutes of November 16, 1993 and November 23, 1993 as presented, approved 4-0-1 wirh Horton absenL CONSENT CALENDAR (Items pulled: 3) BALANCE OF TIlE CONSENT CALENDAR OFFERED BY AGENCY/COUNCIL MEMBER FOX. reading of rhe text was waived, passed and approved unanimously. 3. WRITfEN COMMUNlCATIONS: a. Written requesrs from Chula Visra Elemenrary School Districr and rhe San Diego County Office of Education to consider approval of tax sharing agreemenrs at rhe December 7,1993 meeting. Staff synopsis: By rhese agreements, rhe City/Agency surrenders for rhe life of the project (40 years) varying shares of its tax increment revenue of rhe project generated by rhe previously (1990) formed Sourhwest Redevelopment Project Area, a promise rhe City/Agency made pursuanr to Memoranda of Understanding in exchange for their waiver of rheir right to 'fiscal review' which would have delayed and might have jeopardized rhe formation of rhe projecr area. The District and Office are concerned rhar finalized agreements be reached before year end to avoid any risk posed by AB1290. Staff believes rhar while rhe risk is minimal, sraff have been trying to accommodate rheir concerns by having rhe agreements ready for rhe meeting of December 14, 1993. However, after rhe preparation of the December 7 Agenda (on Thursday, December 2), staff, rhe District, and the Office were able to strike agreements, subject to Agency/Council approval. Staff recommendarion: 1f rhe Agency/Council prefers to approve rhe agreements at rhe December 7 meeting, sraff will be prepared to give an oral report with regard to rhe agreements as well as providing copies of rhe proposed agreements for approval by rhe Agency/Council. Pulled from rhe Consent Calendar. A RESOLUTION 1376 AurnORIZlNG TIlE EXEClffiON OF AN AGREEMENT FOR COOPERATION BE1WEEN TIlE CI'IY OF CHULA VISTA, CHULA VISTA REDEVELOPMENT AGENCY, AND TIlE SAN DlEGO COUNlY OFFICE OF EDUCATION FOR TIlE SOUTHWEST REDEVELOPMENT PROJECf AREA B. RESOLUTION 17328 AurnORIZlNG TIlE EXEClffiON OF AN AGREEMENT FOR COOPERATION BE1WEEN TIlE CI'IY OF CHULA VISTA, CHULA VISTA REDEVELOPMENT AGENCY, AND TIlE SAN DlEGO COUNlY OFFICE OF EDUCATION FOR TIlE SOUTHWEST REDEVELOPMENT PROJECf AREA .1-1 Minutes December 7, 1993 Page 2 C. RESOLUTION 1377 AUTIiORIZING TIiEEXEClJl10N OF AN AGREEMENT FOR COOPERATION BElWEEN TIiE CIlY OF CHULA VISTA, CHULA VISTA REDEVELOPMENT AGENCY, AND TIiE CHULA VISTA ELEMENTARY SCHOOL DlSfRlCf FOR TIiE SOUlHWEST REDEVELOPMENT PROJECf AREA D. RESOLUTION 17329 AUTIiORIZING TIiE EXEClJl10N OF AN AGREEMENT FOR COOPERATION BElWEEN TIiE CI1Y OF CHULA VISTA, CHULA VISTA REDEVELOPMENT AGENCY, AND TIiE CHULA VISTA ELEMENTARY SCHOOL DlSfRlCf FOR TIiE SOUlHWEST REDEVELOPMENT PROJECf AREA Agency/City Attorney Boogaard gave the background of the agreements presented. Two agreements were being brought back to Council upon the request of the County Office of Education and Chula Vista Elementary School District. An agreement had already been approved with the Sweetwater Union High School District and the County and Southwestern College were willing to wait until next year. The agreements presented were slightly better, but not significantly better than the MOU's that were negotiated from the perspecrive of the Agency. He then reviewed the tax increment generation model. Agency/Council Member Moore stared the Srate had started to take away Redevelopment money from the Agency/City. He questioned whether it was based on the net or gross. Agency/City Attorney Boogaard stated thar was the issue that had been holding up the negotiations. The agreement stated that any new diversions that came into play after the agreement was signed would be taken off the top before it was divided. Agency/Council Member Rindone stated there were competing public agencies for the commitment of the tax dollars. Public agencies in the pasr were not as sophisticated as they should have been in ensuring that they encapsulared monies to foster their public agency interests. RESOLUTIONS 1376, 17328, 1377, AND 17329 OFFERED BY AGENCY/COUNCIL MEMBER RINDONE, reading of the text was waived, passed and approved unanimously. * * * The Redevelopment Agency recessed at 5:30 p.m. and reconvened ar 11:04 p.m. * * * 4. RESOLUTION 1351 RE-APPROVING RESOLUTION 1351 TO 1NCORPORATE APPROPRIATING FUNDS lHEREFOR--At the 9/14/93 Agency meering the Agency approved Resolution 1351 Concerning the Redemption of Certain Bonds and Providing for the Sale of Mortgage Loans and other Assets and Authorizing the Execution of all Necessary Documents and Appropriatin~ Funds therefor. The resolution was prepared by Bond Counsel and through an oversight there was no mention in the resolution to appropriate funds; consequently, the Finance Department cannot do so until so authorized by the Agency. Staff recommends approval of the resolution. (Community Development Director) 5. RESOLUTION 1371 ACCEPTING QillTCLAlM DEED FROM SAFEWAY 1NC. FOR ASSESSOR'S PARCEL NUMBER 568-420-30--During 1989.90, the Agency purchased 2.62 acres of property located at the northeast quadrant of Third and Alvarado Avenues. Following the property conveyance, it was found that a small, 435 square foot parcel had been overlooked. Subsequently, Safeway Inc. issued a quitclaim deed to the Agency for the small parcel. The Agency now needs to accept the quitclaim for the property before the County Recorder will record the deed. Staff recommends approval of the resolution. (Community Development Director) * * END OF CONSENf CALENDAR * * J -2- Minutes December 7, 1993 Page 3 PUBUC HEARINGS 6.A JOINT AGENCY/COUNOL PUBUC HEARING CONSIDER TI-IE LEASE OF PROPERlY AT 603 PALOMAR STREET (APN- #622-041-20), CHULA VISTA TO AUGUSTINE REYES-- The Amended Palomar Trolley Center Disposition and Development Agreement calls for the Agency to acquire parcels necessary for the development of the proposed shopping center and to convey those properties to the developer, Cypress Creek Company. The Agency adopted Resolution 1341 on 7/27/93 to condemn subject parcels bur required that the existing tenant be allowed to remain on the premises for 12 months. The Agency will take possession in November 1993 and a lease has been prepared with the tenant to govern his tenancy during the remainder of the 12 months. Staff recommends continuing the public hearing to December 14, 1993. (Continued from the meeting of November 23, 1993) (Community Development Direcror) B. AGENCY RESOLUTION 1366 APPROVING TI-IE LEASE OF REDEVELOPMENT AGENCY-OWNED PROPERlY (APN 622-041-20) TO AUGUSTINE REYES, FlNDING TIfAT CONSIDERATION IS NOT LESS TIfAN FAIR MARKET VALUE, AND AUlHORlZING CHAIRMAN TO SlGN LEASE C. COUNClL RESOLUTION 17299 APPROVING TI-IE LEASE OF REDEVELOPMENT AGENCY-OWNED PROPERlY (APN 622-041-20), TO AUGUSTINE REYES AND FlND1NG TIfAT CONSIDERATION 1S NOT LESS TIfAN FAIR MARKET VALUE This being the time and place as advertised, the public hearing was declared open. MSUC (FoI/Moore) ro continue the public hearing to the meeting of 12114/93. 7.A AGENCY PUBUC HEARING TO CONSIDER A REQUEST FROM ENERGY AUTO RECYC1JNG FOR TI-IE PURPOSE OF ESTABUSHlNG A BUSINESS FOR TI-IE AUTO STORAGE, WRECKlNG AND DlSMANI1JNG AT 793-AENERGY WAY, CHULA VISTA, CAUFORNIA; PARCEL BElNG LOCATED 1N TI-IE OTAYVALLEY ROAD REDEVELOPMENT PROJECf AREA (SUPO-93-03).. The land uses on rhe subject parcels were authorized by Conditional Use Permit #PCC-73-27 in 1973 as part of the Dtay Industrial Park and expired in 1986. Under the Otay Valley Road Redevelopment Plan, formed in 1983, the land uses allowed for this area is Limited Industrial/Research. In order to continue the existing land uses, these being the storage, maintenance and repair of heavy equipment, the impounding, storage and dismantling, and wrecking of automobiles, a Special Permit is required under the Redevelopment Plan. Staff recommends the Agency open the public hearings for 1rems 7 A,B,C and D, and continue the public hearing to its meeting of January 4, 1994. (Community Development Director) RESOLUTION 1372 MAKING CERTAIN FlND1NGS AND APPROVING SPECIAL PERMIT TO ENERGY AUTO RECYC1JNG FOR CERTAIN AUTO WRECKlNG USES AT 783-A ENERGYWAY, CHULA VISTA, CAUFORNIA; PARCEL BElNG LOCATED WlTI-llN TI-IE OTAY VALLEY ROAD REDEVELOPMENT PROJECf AREA B. AGENCY PUBUC HEARING TO CONSIDER A REQUEST FROM TOWN AUTO RECYC1JNG FOR TI-IE PURPOSE OFESTABUSHlNG A BUS1NESS FOR AUTO STORAGE, WRECKlNG AND DlSMANI1JNG AT 793-B ENERGY WAY, CHULA VISTA, CAUFORNIA; PARCEL BElNG LOCATED 1N TI-IE OTAY VALLEY ROAD REDEVELOPMENT PROJECf AREA (SUPO-93-04) .,2-.5 Minutes December 7, 1993 Page 4 RESOLUTION 1373 MAKING CERTAlN FlNDlNGS AND APPROVING SPECIAl. PERMIT TO TOWN AUTO RECYCUNG FOR CERTAIN DES1GNATED AUTO WRECKING USES AT 793-B ENERGY WAY, aruLA VlSfA, CAIJPORNIA; PARCEL BElNG LOCATED W11lllN THE OTAY VALLEY ROAD REDEVELOPMENT PROJECf AREA C. AGENCY PUBUC HEARING TO CONSlDER A REQUESf FROM ALL-Z AUTO RECYCUNG FOR THE PURPOSE OF ESTABUSHlNG A BUS1NESS FOR AUTO SfORAGE, WRECKING AND DISMANTIlNG AT 793-C ENERGY WAY, aruLA VlSfA, CAIJPORNIA; PARCEL BElNG LOCATED IN THE OTAY VALLEY ROAD REDEVELOPMENT PROJECf AREA (SUPO-93-05) RESOLUTION 1374 MAKlNG CERTAINFlNDINGSAND APPROVlNG SPEClALPERMITTO ALL-Z AUTO WRECKING FOR CERTAIN DESlGNATED AUTO WRECKING USES AT 793-C ENERGY WAY, aruLA VlSfA, CAIJFORNIA; PARCEL BElNG LOCATED W11lllN THE OTAY VALLEY ROAD REDEVELOPMENT PROJECf AREA D. AGENCY PUBUC HEARING TO CONSlDER A REQUESf FROM JAY JUSTUS FOR THE PURPOSE OF ESTABUSHlNG A BUS1NESS FOR AUTO SfORAGE, WRECKING AND DISMANTIlNG AT 891 ENERGYWAY, aruLA VlSTA, CAIJFORNIA; PARCEL BElNG LOCATED IN THE OTAY VALLEY ROAD REDEVELOPMENT PROJECf AREA (SUPO-93-06) RESOLUTION 1375 MAKlNG CERTAIN FlNDINGS AND APPROVlNG SPEClAL PERMIT TO JAY JUSTUS FOR THE PURPOSE OF ESTABUSHlNG A BUSINESS FOR CERTAIN DES1GNATED AUTO WRECKING USES AT 891 ENERGY WAY, aruLA VlSfA, CAIJFORNIA; PARCEL BElNG LOCATED W11lllN THE OTAY VALLEY ROAD REDEVELOPMENT PROJECf AREA This being rbe time and place as advertised, rbe public hearing was declared open. MSUC (NaderlFox) to continue rbe public hearing to rbe meeting of 1/4/94. ORAL COMMUNlCATIONS None ACTION ITEMS None Submitted. 1TEMS PUllED FROM THE CONSENf CALENDAR Items pulled: 3. The minures will reflect rbe published agenda order. OTIffiR BUS1NF.SS 8. DIRECfOR/<JIT MANAGER'S REPORT - None .1-t Minutes December 7, 1993 Page 5 9. CHMRMAN/MAYOR'S REPORT - None 10. MEMBERS/COUNCILMEMBERS' COMMENTS - None ADJOURNMENT ADJOURNMENT AT 11:09 P.M. to a Special Joint Meeting of the Redevelopment Agency/City Council on Tuesday, December 14, 1993 at 6:00 p.m., immediately following the City Council meeting, Council Chambers, Public Services Building. Respectfully submitted, BEVERLY A AUTHELET, CMC, City Clerk by: ". ~ ~\~l I \ "" \\ '----l;~ '-.:J,\'K,l \[ I \ll.l)\ Vicki C. Soderquist, Deputy C ~C1erk '1 ~-5 JOINT REDEVEWPMENT AGENCY/CITY COUNCIL AGENDA STATEMENT Item 'I Meeting Date 01104/94 ITEM TITLE: [a] Agency RESOLUTION 1384 Approving the Consent and Subordination Agreement, and Assignment of Rights Under the Disposition and Development Agreement to the Ford Motor Credit Company, and authorizing the Executive Director to Execute Said Documents [b] Council RESOLUTION 17345 Approving an Assignment of Proceeds of the Acquisition/Financing Agreement for Infrastructure Improvements for the Chula Vista Auto Center with the Ford Motor Credit Company, and Authorizing the City Manager to Execute Said Document SUBMITTED BY: Community Development Directorll .4 REVIEWED BY: Executive Director/City Manager [0 k 'j/ (4/Sths Vote: Yes _ No Xl BACKGROUND: The Redevelopment Agency entered into a Disposition and Development Agreement (DDA) with the developers of the Chula Vista Auto Center in September 1992. The DDA allows for the formation of an assessment district to fund internal infrastructure improvements including roads, sewers, street lighting, etc. which will be conveyed to the City once completed. The City Council entered into an Acquisition/Financing Agreement for the assessment district on August 24, 1993. Subsequent to these actions the Redevelopment Agency and the City entered into a Consent and Subordination Agreement, Assignment of Rights under the DDA, and Assignment of Proceeds of Acquisition/Financing Agreement with GMAC in conjunction with financing the South Bay Chevrolet auto dealership within the Auto Center site. At this time, Mr. Fuller, developer of Fuller Ford and Fuller Honda, is asking for the execution of similar documents in order to secure financing from the Ford Motor Credit Company (FMCC) for the new Fuller Ford dealership. All three documents are in all material respects virtually identical to the documents prepared in connection with Mr. Ordway's GMAC financing last September. These documents have been reviewed and approved by Agency Special Counsel, and are recommended for approval by the Redevelopment Agency/City Council. RECOMMENDATION: That the Redevelopment Agency and the City Council adopt the appropriate resolutions and authorize execution of the three agreements cited above. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. 4- / Page 2, Item L/ Meeting Date 01/04/94 DISCUSSION: The authority under the Disposition and Development Agreement (DDA) allows for the execution of the Consent and Subordination Agreement, and Assignment of Rights Agreement by the Executive Director without further Agency action. However, it is the intent of staff to apprise the Agency of the proposed financing and related risks, and receive specific authority to execute these documents. The third agreement, Assignment of Proceeds of the Acquisition/Financing Agreement, needs to be executed by the City Manager since it related to the formation of an Infrastructure Assessment District. Agency Special Counsel advises that, since the Assignment of Proceeds entered into in connection with GMAC financing was expressly authorized by the City Council, the comparable agreement with FMCC should similarly be authorized by the City Council. Consent and Subordination Al!reement The Consent and Subordination Agreement to be authorized by the Agency was contemplated in the DDA. This Agreement constitutes the Agency's approval of the FMCC loan as "acceptable mongagefinancing" and sets forth the relationship between the Agency and FMCC with respect to the reverter and other issues covered in the DDA. While the DDA provides that only financing which is permitted to be assumed shall constitute "acceptable mortgage financing", FMCC will allow assumption of the FMCC loan (in the event of Mr. Fuller's default) only by a~proved Ford dealers [see Section 5(b) of proposed Agreement]. The risk for the Agency is that, in the event that the Agency wishes to exercise its reverter rights, it will be required to either payoff the FMCC loan or find a Ford dealership willing to assume the DDA development obligations. This obviously restricts the Agency's flexibility in redeveloping the Auto Center site with the FMCC financing already in place. In addition, the developers and successor owners of the Auto Center site are required by the terms of the DDA to hold the Agency harmless with respect to any liabilities which the Agency may be exposed to in connection with the redevelopment of the site. FMCC will not agree to hold the Agency harmless with respect to events occurring or claims made prior to their ownership of the site. The intent of the DDA hold harmless provision was to place a cap on unknown liability to the Agency which may arise as a result of its involvement with the project. The assumption restrictions and hold harmless limits represent the only two risks to the Agency under this Agreement. These are generally the same types of risks which were reviewed and approved by the Agency with respect to the GMAC Agreement for development of the Chevrolet dealership (although the hold harmless limitation under the FMCC agreement is a bit broader). In addition to the material changes to the provisions of the DDA described above, this Agreement also sets forth a couple of non-material clarifications to the DDA, including the clarification that transferees receiving the site from FMCC in connection with foreclosure type remedies will, provided they meet the "developer" criteria set forth in the DDA, be entitled to assume the remaining DDA rights and obligations, and the clarification that the determination that such criteria have been met will not be unreasonably withheld. If-2.. Page 3, Item Meeting Date 01104/94 ~ Assilmment of Ril!hts The requested Assignment of Rights under the DDA is also to be authorized by the Agency. This Agreement was also contemplated in the DDA and assigns to FMCC all the rights afforded to Mr. Fuller under the DDA as additional security including the present right to receive Fuller's "incentive" payments as the same become due under the DDA. There are no risks to the Agency under this Agreement. Assil!nment of Proceeds The Assignment of Proceeds of Acquisition/Financing Agreement is to be authorized by the City Council. This Agreement is contemplated by the Acquisition/Financing Agreement entered into on August 24, 1993 which provides for the establishment of an assessment district for the purchase of infrastructure improvements within the Auto Center site including roads, sidewalks, landscaping, street lighting, sewers, etc. There are no risks to the City Council under this Agreement. All three documents are in material respects virtually identical to the same documents prepared in connection with Mr. Ordway's GMAC financing approved last September and are recommended for approval by the Agency and City Council at this time. FISCAL IMPACT: The potential impact to the Agency/City Council includes the following: [1] In the event of Mr. Fuller's default under his obligations under the DDA, assumption of the FMCC financing will be limited to a Ford dealer willing to assume the DDA development obligations thereby restricting the Agency's flexibility in continuing the redevelopment of the Auto Center site and the receipt of tax increments and sales tax revenues therefrom. [2] FMCC as a successor/owner of a portion of the Auto Center site will not agree to hold the Agency harmless with respect to events occurring or claims made prior to their ownership of the site. This leaves the Agency somewhat vulnerable to events occurring or claims made before FMCC's tenure. Although the risk of this occurring is not considered to be great, it is conceivable that there may some day be financial consequences. The extent of such consequences cannot be determined at this time. [C:\WP51 \AGENCY\RA4S\FMCC.RA4] 4. 3 ~'_.. I RESOLUTION 1384 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE CONSENT AND SUBORDINATION AGREEMENT, AND ASSIGNMENT OF RIGHTS UNDER THE DISPOSmON AND DEVELOPMENT AGREEMENT TO THE FORD MOTOR CREDIT COMPANY, AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE SAID DOCUMENTS WHEREAS, the Agency entered into a Disposition and Development Agreement (the "DDA") with the developers of the Chula Vista Auto Center (the "Developers") on September 15, 1992 for the purpose of developing an auto sales park within the Otay Valley Road Redevelopment Project Area, within the City of Chula Vista; and WHEREAS, said DDA contemplated and authorized the execution of documents including the Consent and Subordination Agreement and Assignment of Rights under DDA which would be necessary in order to provide financing for the development of auto dealerships within said Auto Center; and WHEREAS, the Ford Motor Credit Company ("FMCC") has presented to the Agency a Consent and Subordination Agreement, and Assignment of Rights Agreement under the DDA related to the provision of financing for development of a new Fuller Ford dealership within the Chula Vista Auto Center; and WHEREAS, said Agreements have been reviewed and recommended for approval by Agency Special Counsel and the City Attorney. NOW THEREFORE, THE REDEVELOPMENT Agency OF THE CITY OF CHULA VISTA does hereby find, order, detennine and resolve as follows: 1. The Consent and Subordination Agreement by and between the Redevelopment Agency of the City of Chula Vista and Ford Motor Credit Company, said Agreement being on file in the Office of the Secretary to the Redevelopment Agency and known as document RACO-OI-94, is hereby approved and the Executive Director is authorized to execute same in the form on file, together with such technical clarifications or corrections thereto as may be determined by Counsel to be necessary to reflect the intent of the parties thereto. 2. The Assignment of Rights Under the Disposition and Development Agreement with the Ford Motor Credit Company, said Agreement being on file in the Office of the Secretary to the Redevelopment Agency and known as document RACO-02-94 is hereby approved and the Executive Director is authorized to execute same in the form on file, together with such technical clarifications or corrections thereto as may be determined by Counsel to be necessary to reflect the intent of the parties thereto. PRESENTED BY: APPROVED AS TO FORM BY: ~tA'~ ~ Chris S omone, Executive Secretary and Community Development Director IC:I WPSl IAgencyIRESOSIFMCC-A.RES] Bruce M. Boogaard Agency General Coun 1-5 ~'- RESOLUTION 17345 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN ASSIGNMENT OF PROCEEDS OF THE ACQUISITION/FINANCING AGREEMENT FOR INFRASTRUCTURE IMPROVEMENTS FOR THE CHULA VISTA AUTO CENTER WITH THE FORD MOTOR CREDIT COMPANY, AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID DOCUMENT - WHEREAS, the City Council of the City of Chula Vista (the "Council") approved an Acquisition/Financing Agreement (the "Agreement") for the development of infrastructure improvements within the site of the proposed Chula Vista Auto Center on August 24, 1993 for the purpose of assisting in the development of the Chula Vista Auto Center as authorized in the Disposition and Development Agreement (the "DDA ") between the Redevelopment Agency and the Auto Center developers dated September 15, 1992; and WHEREAS, said Agreement allows for the establishment of an assessment district to provide financing for the acquisition of public improvements under the 1911-13 Act, said improvements to be constructed by the Developers of the Chula Vista Auto Center; and WHEREAS, the Ford Motor Credit Company (the "FMCC") has presented to the City Council with an Agreement for the assignment of proceeds under the Acquisition/Financing Agreement which would require that the proceeds for the payment for public improvements be directed to FMCC; and WHEREAS, said Agreement was contemplated under the terms and conditions of the Acquisition/Financing Agreement, and reviewed and approved by Agency Special Counsel and the City Attorney. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA does hereby find, order, determine and resolve that the Assignment of Proceeds of Acquisition/Financing Agreement, said document being on file in the Office of the City Clerk and the Office of the Secretary to the Redevelopment Agency and known as document RACO- 03-94, is hereby approved and the City Manager is hereby authorized to execute same in the form on file, together with such technical clarifications or corrections thereto as may be determined by Counsel to be necessary to reflect the intent of the parties thereto. PRESENTED BY: APPROVED AS TO FORM BY: Chris S~~O~~ 1 ~ Community Development Director '---/\ Bruce M. Boogaard City Attorney [C:IWP51ICOUNCILIRESOSIFMCC-B.RES] 4'S$" REDEVELOPMENT AGENCY AGENDA STATEMENT ITEM TITLE: [A] PUBLIC HEARING: RESOLUTION [8] PUBLIC HEARING: RESOLUTION [C] PUBLIC HEARING: RESOLUTION [D] PUBLIC HEARING: Item 5" Meeting Date 01104/94 TO CONSIDER A REQUEST FROM ENERGY AUTO RECYCLING FOR THE PURPOSE OF ESTABLISHING A BUSINESS FOR THE AUTO STORAGE, WRECKING AND DISMANTLING AT 793-A ENERGY WAY, CHULA VISTA, CALIFORNIA; PARCEL BEING LOCATED IN THE OTAY VALLEY ROAD REDEVELOPMENT PRO.JECT AREA (SUPO- 93-03) Making Certain Findings and Approving Special Permit to Energy Auto Recycling for certain auto wrecking uses at 783-A Energy Way, Chula Vista, California; parcel being located within the Otay Valley Road Redevelopment Project Area TO CONSIDER A REQUEST FROM TOWN AUTO RECYCLING FOR THE PURPOSE OF ESTABLISHING A BUSINESS FOR AUTO STORAGE, WRECKING AND DISMANTLING AT 793-B ENERGY WAY, CHULA VISTA, CALIFORNIA; PARCEL BEING LOCATED IN THE OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA (SUPO-93-04) Making Certain Findings and Approving Special Permit to Town Auto Recycling for certain designated auto wrecking uses at 793-B Energy Way, Chula Vista, California; parcel being located within the Otay Valley Road Redevelopment Project Area TO CONSIDER A REQUEST FROM ALL-Z AUTO RECYCLING FOR THE PURPOSE OF ESTABLISHING A BUSINESS FOR AUTO STORAGE, WRECKING AND DISMANTLING AT 793-C ENERGY WAY, CHULA VISTA, CALIFORNIA; PARCEL BEING LOCATED IN THE OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA (SUPO- 93-05) Making Certain Findings and Approving Special Permit to AIl-Z Auto Wrecking for certain designated auto wrecking uses at 793-C Energy Way, Chula Vista, California; parcel being located within the Otay Valley Road Redevelopment Project Area TO CONSIDER A REQUEST FROM JAY JUSTUS FOR THE PURPOSE OF ESTABLISHING A BUSINESS FOR AUTO STORAGE, WRECKING AND DISMANTLING AT 891 ENERGY WAY, CHULA VISTA, CALIFORNIA; PARCEL BEING LOCATED IN THE OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA (SUPO- 93-06) .s..., - Page 2, Item .j Meeting Date 01104/94 RESOLUTION Making Certain Findings and Approving Special Permit to Jay Justus for the purpose of establishing a business for certain designated auto wrecking uses at 891 Energy Way, Chula Vista, California; parcel being located within the Otay Valley Road Redevelopment Project Area SUBMITIED BY: Community Development Director :..-, > , City Attorney :;)t:- L, REVIEWED BY: Executive Director~..J 1 (4/Sths Vote: Yes _ No _X.J BACKGROUND: The land uses on the subject parcels were authorized by Conditional Use Permit #PCC-73-27 in 1973 as part of the Otay Industrial Park (See Exhibit 1). The Conditional Use Permits expired in 1986. The Otay Valley Road Redevelopment Plan was formed in 1983. Under the Otay Valley Road Redevelopment Plan, the land uses allowed for this area is Limited Industrial/Research. In order to continue the existing land uses, these being the storage, maintenance and repair of heavy equipment, the impounding, storage and dismantling, and wrecking of automobiles, a Special Permit is required under the Redevelopment Plan. RECOMMENDATION: That the Redevelopment Agency open the public hearing and continue the public hearing to Tuesday, February 1, 1994. [C:\ WP51 IAGENCYIRA4SIRECYCLRS .RA4] 5~;" EXHIBIT I " .., ~ u 'F.;' < 1 ~ ".=@~ ~ ,-. , - u _ < ~ . ';...-:-n_ ......' , ...~ ~ g ~' 0i-;: z w /'J.~~,SZ.o<; ... 8:i . N M N ~ "." ~ . " . _ 0 ,. .. :. ~ - ~ ~ ",- i ~;t " '....~, '. ~; ~ !2 ~: ;:,; "':---- ~ "' ." ~ . > ;>:0.. 'Of ~ 0: ~ U < @~ 10 , 8 '$~ iii Q: rQ\S:..i '" '> ....." L9 V ~""~ci<( ~:~ roO. ."H ~ ~ "o:,,'f""_'i>N .. ~ ~ ~ ,."....r'.. <. 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