HomeMy WebLinkAboutRDA Packet 2001/05/29
Notice is hereby given that the Chair of the Chula Vista Housing Authority has called and will
convene a special meeting of the Housing Authority, Tuesday, May 29, 2001 at 6:00 p.m.,
immediately following the City Council meeting in the Council Chambers, located in the Public
Services Building, 276 Fourth Avenue, Chula Vista, California to consider, deliberate and act upon
the following:
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CllY OF
CHULA VISfA
TUESDAY, MAY 29, 2001 COUNCIL CHAMBERS
6:00 P.M. PUBLIC SERVICES BUILDING
(immediately following the City Council meeting)
JOINT MEETING OF THE
REDEVELOPMENT AGENCY I CITY COUNCIL AND
HOUSING AUTHORITY (SPECIAL MEETING)
OF THE CITY OF CHULA VISTA
CALL TO ORDER
ROLL CALL
Agency/Council/Authority Members Davis, Padilla, Rindone, Salas; Chair/Mayor
Horton
CONSENT CALENDAR
The staff recommendations regarding the following itemls) listed under the Consent Calendar will be enacted
by the Agency/Council by one motion without discussion unless an Agency/Council member, a member of the
public or City staff requests that the item be pulled for discussion. If you wish to speak on one of these items,
please fill out e "Request to Speak Form" available in the lobby and submit it to the Secretary of the
Redevelopment Agency or the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be
discussed after Action items. Items pulled by the public will be the first items of business.
1. APPROVAL OF MINUTES - Staff recommends the Redevelopment Agency/
City Council approve the minutes of the meetings of the Redevelopment
Agency and adjourned meetings of the City Council for May 8 and May 15,
2001.
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 Agency on such a subject, please complete the "Request to Speak Under Oral Communications
Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to
the meeting. Those who wish to speak, please give your name and address for record purposes and follow up
action.
PUBLIC HEARING
The following item(s) have been advertised and/or posted as public hearings as required by law. If you wish to
speak to any item, please fill out the "Request to Speak Form" available in the lobby and submit it to the
Redevelopment Agency or the City Clerk prior to the meeting.
2. a. JOINT REDEVELOPMENT AGENCY / CITY COUNCIL PUBLIC HEARING: TO
CONSIDER ADOPTION OF AN URGENCY ORDINANCE AND A NEW
ORDINANCE TO PROHIBIT THE ESTABLISHMENT OR EXPANSION OF
OUTDOOR STORAGE USES; AND TOLLING THE OPERATION OF EXISTING
OUTDOOR STORAGE USES WITHIN THE REDEVELOPMENT PROJECT
AREAS-The City's redevelopment project areas were formed in order to
eliminate various conditions of blight. Currently, the land use policies that
apply to the redevelopment project areas are inadequate to address the
blighting influences of outdoor storage uses. The establishment of new
outdoor storage uses or the expansion of existing uses in the redevelopment
project areas could result in the further reduction of land that is available for
redevelopment and hinder the implementation of the various redevelopment
plans and the achievement of their goals and objectives. [Community
Development Director] Continued from the meeting of 5/8/01
b. URGENCY ORDINANCE PROHIBITING THE ESTABLISHMENT OR
EXPANSION OF OUTDOOR STORAGE USES; AND TOLLING THE
OPERATION OF EXISTING OUTDOOR STORAGE USES WITHIN THE
REDEVELOPMENT PROJECT AREAS
c. ORDINANCE PROHIBITING THE ESTABLISHMENT OR EXPANSION OF
OUTDOOR STORAGE USES; AND TOLLING THE OPERATION OF EXISTING
OUTDOOR STORAGE USES WITHIN THE REDEVELOPMENT AREAS
STAFF RECOMMENDATION: Adopt the urgency interim ordinance and place
the interim ordinance on first reading.
3. a. CITY COUNCIL PUBLIC HEARING TO CONSIDER OF THE ISSUANCE OF
TAX EXEMPT OBLIGATIONS WITH RESPECT TO THE HERITAGE TOWN
CENTER AFFORDABLE HOUSING PROJECT-The City of Chula Vista and its
Housing Authority have received a request from South Bay Community
Villas, L.P., a partnership between The Otay Ranch Company (ORC) and
South Bay Community Services, to consider the issuance of tax exempt
obligations to finance the development of a 271 unit affordable housing
Redevelopment Agency, May 29, 2001 Page 2
complex, consisting of 91 units for seniors and 180 units of multifamily
housing, within the Otay Ranch master planned community. The proposed
"Heritage Town Center" project is located on 9.3 acres of vacant land in the
Otay Ranch Village 1 tentative map R47 & C1 sites, on East Palomar Street
between Santa Rita Avenue and Santa Andrea Avenue in the City of Chula
Vista. Additionally, the Redevelopment Agency has received a request for
financial assistance for the project and the City is being asked to waive
certain City fees. The project is being developed to satisfy ORC's Otay
Ranch Section Planning Area (SPA) One affordable housing obligation of 242
low income units. [Community Development Director]
b. HOUSING AUTHORITY RESOLUTION HA-18 REGARDING ITS INTENTION
TO ISSUE TAX EXEMPT OBLIGATIONS FOR A PROPOSED AFFORDABLE
SENIOR AND MULTIFAMILY HOUSING PROJECT KNOWN AS HERITAGE
TOWN CENTER WITHIN THE OTAY RANCH MASTER PLANNED
COMMUNITY
c. COUNCIL RESOLUTION AUTHORIZING THE SALE. ISSUANCE
AND DELIVER OF MULTIFAMILY HOUSING REVENUE BONDS BY THE
HOUSING AUTHORITY OF THE CITY OF CHULA VISTA FOR THE
PROPOSED HERITAGE TOWN CENTER AFFORDABLE HOUSING PROJECT
d. AGENCY RESOLUTION 1730 AND COUNCIL RESOLUTION
CONDITIONALLY APPROVING FINANCIAL ASSISTANCE. SUBJECT TO
FUTURE APPROPRIATION. IN THE FORM OF A RESIDUAL RECEIPTS LOAN
FROM THE LOW AND MODERATE INCOME HOUSING FUND IN AN
AMOUNT NOT-TO-EXCEED $4.400.000 AND A TEN YEAR DEFERRAL OF
THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE. WAIVER OF THE
RESIDENTIAL CONSTRUCTION FEE. AND WAIVER OF THE PARK FEE TO
SOUTH BAY COMMUNITY VILLAS. loP. FOR THE DEVELOPMENT OF THE
PROPOSED 271 UNIT HERITAGE TOWN CENTER 4/5THS VOTE REQUIRED
STAFF RECOMMENDATION: Adopt the resolutions.
OTHER BUSINESS
4. DIRECTOR'S REPORTlS)
5. CHAIR/MAYOR REPORTlS)
6. AGENCY/COUNCIL COMMENTS
Redevelopment Agency, May 29, 2001 Page 3
ADJOURNMENT
The meeting will adjourn to the regular meeting of the Redevelopment Agency on
June 5, 2001 at 4:00 p.m., immediately following the City Council meeting in the
City Council Chambers.
CLOSED SESSION
Unless Agency Counsel, the Executive Director, City Councilor the Redevelopment Agency states otherwise at
this time, the Agency/Council will discuss and deliberate on the following item Is) of business which are
permitted by law to be the subject of a closed session discussion, and which the Agency/Council is advised
should be discussed in closed session to best protect the interests of the City. The Agency/Council 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 bVCIosed sessions, the videotaping will be terminated at
this point in order to save costs so that the Agency/Council's return from closed session, reports of final action
taken, and adjournment will not be videotaped. Nevertheless, the report of final 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.
7. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION n
Pursuant to Government Code Section 54956.9(a)
Agency vs. Rados Bros. [Case No. GIC734557-1]
*********
COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT
The City of Chula Vista, in complying with the Americans with Disabilities Act (ADA), request individuals who
require special accommodates to access, attend, and/or participate in a City meeting, activity, or service
request such accommodation at least 48 hours in advance for meetings and five days for scheduled services
and activities. Please contact the Secretary to the Redevelopment Agency for specific information at 1619)
691-5047 or Telecommunications Devices for the Deaf ITDDI at (61 g) 585.5647. California Relay Service is
also available for the hearing impaired.
Redevelopment Agency, May 29, 2001 Page 4
MINUTES OF ADJOURNED REGULAR MEETINGS OF THE
CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
May 8, 2001 6:00 p.m.
Adjourned Regular Meetings of the City Council and the Redevelopment Agency of the City of
Chula Vista were called to order at 7:34 p.m. in the Council Chambers, located in the Public
Services Building, 276 Fourth Avenue, Chula Vista, California.
ROLL CALL
PRESENT: Agency/Councilmembers Davis, Padilla, Rindone, Salas and Chair/Mayor
Horton
ABSENT: Agency/Councilmembers: None
ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/City
Attorney Kaheny, and City Clerk Bigelow
CONSENT CALENDAR
1. APPROVAL OF MINUTES
Staff recommendation: The Redevelopment Agency/City Council approve the minutes of
the Regular Meetings of the Redevelopment Agency and Adjourned Regular Meetings of
the City Council held April 24 and May 1,2001.
ACTION: Chair/Mayor Horton moved to approve staffs recommendation and offered the
Consent Calendar, heading read, text waived. The motion carried 5-0.
ORAL COMMUNICATIONS
There were none.
PUBLIC HEARINGS
2. JOINT REDEVELOPMENT AGENCY/CITY COUNCIL PUBLIC HEARING: TO
CONSIDER ADOPTION OF AN URGENCY ORDINANCE AND A NEW
ORDINANCE TO PROHIBIT THE ESTABLISHMENT OR EXPANSION OF
OUTDOOR STORAGE USES; AND TOLLING THE OPERATION OF EXISTING
OUTDOOR STORAGE USES WITHIN THE REDEVELOPMENT PROJECT AREAS
(Community Development Director)
Notice of the hearing was given in accordance with legal requirements, and the hearing was held
on the date and at the time specified in the notice.
Chair/Mayor Horton opened the public hearing and asked if anyone from the audience wished to
speak. There was no response.
ACTION: Chair/Mayor Horton moved to continue the hearing to May 29, 2001. The motion
carried 5-0.
I-I
PUBLIC HEARINGS (Continued)
3. a. CONSIDERATION OF AN EXTENSION OF AN EXISTING SPECIAL USE PERMIT
FOR THE CONTINUATION OF AN AUTO DISMANTLING AND RECYCLING
BUSINESS AT 800-834 AND 825 ENERGY WAY
Ecology Auto Wrecking has requested the continuation of an existing Conditional Use
Permit for automotive dismantling and the sale of auto parts, and scrap metal collection,
compaction, cutting, shredding in preparation for the scrap market, and other related uses.
The Agency approved a 13-year extension on 12/8/92, which moved the expiration date
of the permit until 2005. On 11/10/00, staff received an application for an extension of
the permit until 2025. The Planning and Environmental Manager for the Community
Development Department has determined that no new environmental impacts that have
not been previously addressed will occur and that the project is consistent with the
previous environmental review. (Community Development Director) (Continued from
the meeting of5/1/01).
Planning and Environmental Manager Hunter presented the applicant's request to extend the
permit and commented on the applicant's quality business operation, compliance with the terms
of the existing permit for over 25 years, and the value of the company's service to the
community and the region.
Community Development Director Salomone stated that the Planning Commission unanimously
opposed the extension of the permit, questioning staff's recommendation to approve the use
when the permit for the proposed batch plant was denied. Mr. Salomone explained that the
request by Ecology Auto Wrecking differs in that it has existed since 1973, without complaint,
whereas the batch plant brought a new use to the City and one that already existed at another
location that had a number of environmental impacts associated with it. In addition, the
recommendation to approve Ecology's permit took into consideration the fact that the landfill
adjacent to the site has a life of approximately 23 more years and should extend well beyond the
life of this permit. The landfill presents major restraints to the develop ability of the land and the
land use at the subject site.
Kevin O'Neill, Planning Commissioner, spoke in opposition to the extension of the special use
permit, explaining that he believed the City would be acting prematurely since there was no
urgency to extend the permit at this point, and that approval of the permit may cost the City later
by limiting its options for the future.
Joe Botkin, representing Ecology Auto Wrecking, stated that the applicant required some
reassurance that he could remain at the location long enough to justify the purchase of additional
property and to make capital investments to upgrade and maintain the property. Mr. Botkin
explained that the applicant has a good compliance record and has a community-involved
organization that also provides a substantial revenue stream for the City by way of property and
sales taxes. He believed that Ecology Auto Wrecking was an appropriate use of the site, and he
encouraged Council to approve staffs recommendation.
Page 2 CCiRDA Minutes (-d-.- 05/08/2001
PUBLIC HEARINGS (Continued)
Joe Kellejian, owner of Ecology Auto Wrecking, explained some of the benefits of Ecology's
presence in Chula Vista, including assistance with the City's oil recycling program; provision of
local scholarships; and the supply of vehicles to the Chula Vista Fire Department for jaws-of-life
training.
Bob Marinaccio, representing The Crime Victims Fund, explained that Joe Kellejian was
instrumental in administering the "Cars for Victims" and the "Domestic Violence Independent
Living Fund" programs that provide long-term support to abuse victims. Mr. Marinaccio stated
that the work that Ecology Auto Wrecking does in the community should be taken into
consideration by Council in its evaluation ofthe request.
Pete Flores, representing the RJ. Donovan Correctional Facility, spoke in support of staffs
reconunendation, explaining that vehicles bought by Ecology Auto Wrecking are taken to the
correctional facility where prison inmates repair and rebuild the vehicles as part of a
rehabilitation program.
With no further members of the public wishing to speak, Chair/Mayor Horton closed the Public
Hearing.
Agency/Councilmember Padilla asked Mr. Botkin whether or not Ecology Auto Wrecking would
have the ability to re-negotiate leases on the adjacent properties or obtain financing should its
request for a 16-year permit extension be denied. Mr. Botkin replied that Ecology Auto
Wrecking has established a conceptual agreement with the property owner to purchase the
property, which would be a commitment to maintain its operations in Chula Vista for the future.
He explained that the reason for requesting the length of term was driven by business
considerations and being unable to ascertain how long the opportunity to purchase the property
would be presented to them. Agency/Councilmember Padilla asked staff what the overriding
public policy consideration would be for the Redevelopment Agency to extend the permit now
for a 16-year period oftime, four years before the permit expires. Mr. Salomone responded that
the basis of the Redevelopment Agency's decision was to make qualitative evaluations to select
auto dealers over other types of uses, simply because they sell more cars and generate more sales
tax. He added that the applicant has been an exceptional dealer in the community.
Chair/Mayor Horton spoke in favor of staff s reconunendation and also stated that Ecology Auto
Wrecking has been a role model for the industry.
Agency/Councilmember Davis stated that, in spite of the City's intention to update its General
Development Plan, businesses should not be put on hold, and she believed that there was an
urgency to approve the permit extension. She added that what Ecology Auto Wrecking does for
recycling and its contribution to the community are things about which the City should be very
proud.
Page 3 CC/RDA Minutes 1- -3 05/08/2001
PUBLIC HEARINGS (Continued)
Agency/Councilmember Salas spoke in support of staffs recommendation, stating that she
visited Ecology Auto Wrecking and was satisfied that the company was using the best possible
practices for this type of industry. She also commented on the adjacent landfill facility and its
negative effect on attracting other types of uses, such as office buildings or light industrial
facilities. She explained that granting an extension to the applicant could be done without having
to do the same for the surrounding businesses, since the other businesses have had a history of
code violations and do not compare with Ecology Auto Wrecking. She also stated that it would
not be good public policy to deny the extension and jeopardize the jobs of 200 employees.
Agency/Councilmember Rindone asked how the other 13 auto wreckers would react if the
extension were granted to Ecology Auto Wrecking and also expressed concern regarding the
Planning Commission's unanimous opposition to the special use permit. He stated that the long-
term impacts need to be considered.
Agency/Councilmember Padilla stated that the issue was not whether to retain Ecology Auto
Wrecking in Chula Vista but rather about retaining the City's options for the future and making
good public policy decisions. He reminded Council of the City's undertaking of a General
Development Plan for that area and the need to retain the flexibility to make decisions as times
change. He did not believe that it was necessary to limit the City's options or to extend the
permit at this time.
ACTION: Chair/Mayor Horton moved to approve staffs recommendation and offered
Redevelopment Agency Resolution No. AR 1726, heading read, text waived:
AGENCY RESOLUTION NO. 1726, RESOLUTION OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
APPROVING THE EXTENSION OF THE SPECIAL USE PERMIT SUPO-Ol-
01 UNTIL DECEMBER 31, 2017 FOR ECOLOGY AUTO WRECKING
LOCATED AT 800-834 AND 825 ENERGY WAY AND DIRECTING STAFF
TO PROCEED WITH AN EVALUATION OF THE POTENTIAL FOR
ALTERNATE USES FOR PROPERTIES NOW HOUSING AUTO
WRECKERS AND RECYCLERS PER THE DIRECTION OF THE ADOPTED
FIVE YEAR IMPLEMENTATION PLAN FOR THE OTAY VALLEY ROAD
REDEVELOPMENT PLAN
The motion carried 4-1 with Agency/Councilmember Padilla voting no.
OTHER BUSINESS
4. EXECUTIVE DIRECTOR'S REPORTS
There were none.
5. CHAIR/MAYOR REPORT(S)
There were none.
6. AGENCY/COUNCIL COMMENTS
There were none.
Page 4 CCIRDA Minutes 1- Lj 05/08/2001
CLOSED SESSION
7. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Government
Code Section 54956.8
a. Property: Assessor Parcel Nos. 568-270-2200; 760-106-9205 (31,673 sq. ft.
at 320 Third Avenue)
Negotiating Parties: Redevelopment Agency (Chris Salomone) and
CinemarStar/Trigiid (Bill Huffman)
Under Negotiations: Price and tenus for acquisition
No action was taken.
b. Property: Assessor Parcel No. 568-270-10 (315 Fourth Avenue)
Negotiating Parties: City Council (Sid Morris/Chris Salomone)
Under Negotiations: Lease tenus
No action was taken.
8. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION --
Pursuant to Government Code Section 54956.9(a)
Agency vs. Rados Bros. [Case No. GIC734557-1]
No action was taken.
ADJOURNMENT
At 9:55 p.m., Chair/Mayor Horton adjourned the meeting to the Regular Meeting of the
Redevelopment Agency on May 8, 2001 at 6:00 p.m., immediately following the City Council
meeting..
Respectfully submitted,
~~f~
Susan Bigelow, CMC/AAE, City Clerk
Page 5 CCiRDA Minutes I-~ 05/0812001
MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND
A REGULAR MEETING OF THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
May 15,2001 6:00 p.m.
An Adjourned Regular Meeting of the City Council and a Regular Meeting of the
Redevelopment Agency of the City of Chula Vista were called to order at 7:13 p.m. in the
Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista,
California.
ROLL CALL
PRESENT: Agency/Councilmembers: Padilla, Rindone, Salas, and
ChairlMayor Horton
ABSENT: Agency/Councilmembers: Davis (excused absence)
ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/City
Attorney Kaheny, City Clerk Bigelow
CONSENT CALENDAR
1. AGENCY RESOLUTION NO. 1727, RESOLUTION OF THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA APPROVING OWNER/TENANT
PARTICIPATION AGREEMENT WITH FOSTER INVESTMENT CORPORATION
AND BUDGET RENT A CAR SYSTEMS, INC. FOR THE DEVELOPMENT OF A
TRUCK RENTAL AGENCY AT 690 L STREET LOCATED WITHIN THE
SOUTHWEST REDEVELOPMENT AREA
The applicant proposes to construct a pennanent rent-a-car facility on the unimproved
site of the existing Budget Rent-A-Car business located at 690 L Street. The existing
facility consists of a temporary trailer and an unimproved parking lot. The applicant
proposes to construct a new, 1,448 square-foot building and make associated on-site
improvements. The Environmental Review Coordinator reviewed the proposed project
and detennined that it is exempt ITom environmental review as a Class 3c exemption in
accordance with CEQA. (Community Development Director)
Staff recommendation: Redevelopment Agency adopt the resolution.
2. AGENCY RESOLUTION 1728, RESOLUTION OF THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA APPROVING AN EXCLUSIVE
NEGOTIATING AGREEMENT WITH BITTERLIN DEVELOPMENT
CORPORATION AND CARTER REESE AND ASSOCIATES FOR THE
DISPOSITION AND DEVELOPMENT OF AGENCY-OWNED PROPERTY AT 760
BROADWAY LOCATED WITHIN THE SOUTHWEST REDEVELOPMENT
PROJECT AREA
/-C:,
CONSENT CALENDAR (Continued)
On February 6, 2001, the Agency directed staff to prepare an exclusive negotiating
agreement with Broadway Chula Vista Investors, a joint venture made up of the Bitterlin
Development Corporation and Carter Reese and Associates, for the development of a
mixed-use residential and retail project on Agency-owned property at 760 Broadway.
(Community Development Director)
Staff recommendation: Redevelopment Agency adopt the resolution.
Chair/Mayor Horton referenced Consent Calendar Item #2, stating that a historical home exists
near the proposed Broadway site, and she asked staff to return with a report on ways to preserve
the home and possibly use it in place of the existing Chula Vista Museum building on Third
Avenue.
ACTION: Agency/Councilmember Rindone moved to approve staff recommendations and
offered Consent Calendar Items #1 and #2, headings read, texts waived. The
motion carried 4-0.
ORAL COMMUNICATIONS
There were none.
PUBLIC HEARING
3. a. REDEVELOPMENT AGENCY PUBLIC HEARING TO CONSIDER A REQUEST
FOR A SPECIAL LAND USE PERMIT TO ESTABLISH A TELECOMMUNICATION
SITE AT 256 LANDIS AVENUE
The applicant has requested a special land use permit to allow the establishment of a
telecommunication site at 256 Landis Avenue, located within the Town Centre 1
Redevelopment Project Area. The proposed use is permitted subject to the issuance of a
special land use permit within the Central Commercial area of the Town Centre
Redevelopment Plan. The proposal requires consideration by the Town Centre Project
Area Committee and the Redevelopment Agency. On November 8, 2000, the Town
Centre 1 Project Area Committee voted to recommend approval of the special land use
permit based on findings and subject to conditions. (Community Development Director)
Notice of the hearing was given in accordance with legal requirements, and the hearing was held
on the date and at the time specified in the notice.
Chair/Mayor Horton opened the public hearing. With no members of the public wishing to
speak, she then closed the hearing.
ACTION: Agency/Councilmember Padilla offered Agency Resolution No. 1729, heading
read, text waived:
Page 2 CouncillRDA Minutes (-- 1 05/15/2001
PUBLIC HEARINGS (Continued)
AGENCY RESOLUTION NO. 1729, RESOLUTION OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
GRANTING A SPECIAL LAND USE PERMIT PCC-OO-5l TO COX/SPRINT
PCS TO ESTABLISH A TELECOMMUNICATION SITE AT 256 LANDIS
AVENUE
The motion carried 4-0.
4. PUBLIC HEARING: CITY COUNCIL CONSIDERATION OF THE ISSUANCE OF
TAX EXEMPT OBLIGATIONS WITH RESPECT TO THE PROPOSED HERITAGE
TOWN CENTER AFFORDABLE HOUSING PROJECT
The scheduled public hearing was cancelled due to modifications to the project. There
will be a public hearing noticed for May 29,2001 reflecting the project modifications.
ChairlMayor Horton opened the public hearing and asked if anyone from the audience wished to
speak; there was no response.
ACTION: ChairlMayor Horton moved to continue the public hearing to the meeting of
May 29, 2001. Agency/Councilmember Padilla seconded the motion, and it
carried 4-0.
OTHER BUSINESS
5. EXECUTIVE DIRECTOR'S REPORTS
There were none.
6. CHAIRIMA YOR REPORTS
There were none.
7. AGENCY ICOUNCIL COMMENTS
There were none.
ADJOURNMENT
At 7:32 p.m., Chair Horton adjourned the meeting to an Adjourned Regular Meeting of the
Redevelopment Agency on May 29, 2001 at 6:00 p.m., immediately following the City Council
meeting.
Respectfully submitted,
~~~~
Susan Bigelow, CMC/AAE City Clerk
Page 3 CouncillRDA Minutes /-f/ 05/15/2001
JOINT REDEVELOPMENT AGENCY / CITY COUNCIL
AGENDA STATEMENT
ITEM NO.: d-
MEETING DATE: OS/29/01
ITEM TIlLE: A PUBLIC HEARING TO CONSIDER ADOPTION OF AN URGENCY
ORDINANCE AND A NEW ORDINANCE TO PROHIBIT THE
ESTABLISHMENT OR EXPANSION OF OUTDOOR STORAGE USES;
AND TOLLING THE OPERATION OF EXISTING OUTDOOR STORAGE
USES WITHIN THE REDEVELOPMENT PROJECT AREAS
AN URGENCY ORDINANCE NO. OF THE CITY OF CHULA
VISTA PROHIBITING THE ESTABLISHMENT OR EXPANSION OF
OUTDOOR STORAGE USES; AND TOLLING THE OPERATION OF
EXISTING OUTDOOR STORAGE USES WITHIN THE
REDEVELOPMENT PROJECT AREAS
AN ORDINANCE NO. OF THE CITY OF CHULA VISTA
PROHIBITING THE ESTABLISHMENT OR EXPANSION OF OUTDOOR
STORAGE USES; AND TOLLING THE OPERATION OF EXISTING
OUTDOOR STORAGE USES WITHIN THE REDEVELOPMENT PROJECT
AREAS
SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR L~~ t.5
REVIEWED BY: CITY MANAGER
4/STHS VOTE: YES0 NOD
BACKGROUND
The City's redevelopmenf project areas were formed in order to eliminate various condifions of
blight. Currently, the land use policies that apply to the redevelopment project areas are inadequate
to address the blighting influences of outdoor storage uses. The establishment of new outdoor
sforage uses or the expansion of existing uses in fhe redevelopment project areos could resulf in the
further reduction of land fhat is available for redevelopment and hinder the implementation of the
various redevelopment plans and the achievement of their goals and objectives.
The typical charocteristics of outdoor storage uses are generally inconsistent with the City's various
redevelopment plans. The nature of oufdoor sforage is such fhaf fhese uses could resulf in visual
and economic blight, soil and ground water contamination, other environmental hazards, and
incompotibility with other land uses unless adequate location criteria are established along with
development standards and operation ond maintenance requirements.
The 2000-2004 Implementation Plan for the Otay Valley Rood (OVR) Redevelopment Proiect Area
includes a program that directs the Redevelopment Agency to review and evoluate the continued
d -I
PAGE 2, .TEM NO.:
MEETING DATE: OS/29/01
operafion of aufo recyclers in the project area and to develop a land use policy for such uses fhaf is
consisfent with the goals and objectives of fhe redevelopment plan. Auto recycling essentially
involves the outdoor storage and dismantling of inoperative vehicles-typicolly, the outdoor storoge
component of the use physically occupies most of the site. The outdoor storage component of these
operations are problematic with regard fo the goals and objectives of fhe OVR Redevelopment
Project Area and all other redevelopment project areas in the City.
There has been recent interest expressed by businesses to establish or expand auto recycling uses
involving outdoor storage or to extend the operating period for such uses in the Otay Valley Road
Redevelopment Project Area. There are approximately 17 auto recycling businesses in the OVR
Redevelopment Project Area operafing under sunsefting special land use permifs, wifh varying
termination dates through the year 2006. These businesses are likely to file requests in the near
future for extensions of time to continue their operations. There has also been recent interest
expressed by businesses fo esfablish or expand oufdoor storage uses in the Soufhwesf
Redevelopment Project Area. These businesses include equipment rental yards, outdoor public
sforage, towing yards, and auto wrecking.
The Planning and Environmental Manager has determined that this ordinance will not have a
physical effect on fhe environment and is therefore exempt from CEQA under Section 15308, Class
8 (Actions by regulotory agencies for profection of the environmenf).
RECOMMENDATION
Staff recommends thaf fhe City Council adopt the urgency inferim ordinance and the interim
ordinance to prohibif the esfablishment or expansion of outdoor storage uses and tolling the
operotion of existing outdoor storage uses within the redevelopment project areas.
DISCUSSION
The lack of adequafe land use policies to address outdoor sforage uses negatively impacts the
various redevelopment project areas. An interim ordinance prohibiting new outdoor sforage uses or
fhe expansion of existing uses is necessary in order to allow adequate time for sfaff to conduct fhe
necessory studies ond develop appropriate policy recommendations for the City Council to consider.
Furthermore, fhe filing of pending and potential applications for outdoor storage uses would require
extensive staff resources for processing and timely action by the Redevelopment Agency. Without an
interim ordinance, fhe establishment or expansion of oufdoor storage uses would frustrote the City's
efforts to study the issue and implement the land use policies fhat would result from the process.
The City Council may adopt an interim ordinance as an urgency measure to prohibit new outdoor
storage uses and fhe expansion of existing uses while the City studies and considers land use policies
thaf will adequafely address oufdoor sforage uses and their impacts. The urgency inferim ordinance
would be in force and effect for a period of ninety days from the dafe of adopfion. After the
required notice and public hearing, the City Council may extend the urgency measure for One year
and subsequently for another year. No more than two such extensions may be adopted.
¿¿-cd-
PAGE 3, ITEM NO.:
MEETING DATE: OS/29/01
The scope of the necessary studies will be developed and narrowed during the initial ninety (90) doys
thaf fhe urgency inferim ordinance is in effect. Sfaff is proposing in fhe upcoming Redevelopmenf
Agency budget, a budgef requesf to perform fhe necessary analysis. Public hearing notices will be
published ond moiled to effected property owners prior to ony subsequent extension of the urgency
interim ordinance.
As a back-up measure. staff recommends adoption of a non-urgency version of the ordinance that
will take effect fhirty days after odoption.
FISCAL IMPACT
No subsfanfiol fiscal impacts are expected fo result from fhe prohibifion of the esfablishmenf or
expansion of outdoor storage uses in the redevelopment proiect. areas during the term of the
interim ordinance.
ATTACHMENTS
1. Urgency Ordinance
2. Ordinance
cJ-3
ORDINANCE NO. -
AN URGENCY ORDINANCE OF THE CITY OF CHULA VISTA
PROHIBITING THE ESTABLISHMENT OR EXPANSION OF
OUTDOOR STORAGE USES; AND TOLLING THE OPERATION OF
EXISTING OUTDOOR STORAGE USES WITHIN THE
REDEVELOPMENT PROJECT AREAS
WHEREAS, the City's redevelopment project areas were fonned jn order to eliminate various
conditions of blight; and
WHEREAS, the redevelopment plans for the various redevelopment project areas contain goals,
objectives, policies, and programs directed at the elimination of blight within the project areas; and
WHEREAS, the Implementation Plan for the Otay VaHey Road Redevelopment Project Area sets
forth policy that directs the Redevelopment Agency to evaluate the ongoing operation of auto recycling
facilities, which involve outdoor storage, and to develop land use policy that is consistent with the goals and
objectives of the redevelopment plan; and
WHEREAS, it would be prudent and appropriate for the Redevelopment Agency to broaden the
scope of the policy direction to include aH uses involving outdoor storage, which is the essentjal character of
similar land uses that should also be evaluated, and to also jnclude aH redevelopment project areas, which
share common goals and objectives to eliminate blighting influences; and
WHEREAS, staff requires adequate time to conduct the required studies and develop appropriate
policy recommendations that address where, when, and under what conditions outdoor storage uses would be
compatible wjth surroundjng land uses and consistent with land use policies affecting the various
redevelopment project areas; and
WHEREAS, businesses have recently expressed interest in filing applications to establish or expand
land uses involving outdoor storage in the Otay VaHey Road Redevelopment Project Area and the Southwest
Redevelopment Project Area; and
WHEREAS, several businesses with outdoor storage and operating under sun setting special land use
penn its in the Otay VaHey Road Redevelopment Project Area are likely to file requests in the near future for
extensions of time to continue their operations; and
WHEREAS, the filing of these pending and potential applications would require extensive staff
resources for processing and timely action by the Redevelopment Agency; and
WHEREAS, the establishment or expansion of outdoor storage uses would frustrate the necessary
studies and create a threat to the orderly and effective implementation of any amendments to land use
policies affecting the various redevelopment project areas; and
WHEREAS, the Municipal Code, Section 19.]2.130, arrows the City Council to adopt an interim
ordinance as an urgency measure to protect the public safety, health, and welfare without foHowing the
procedures otherwjse required preliminary to the adoption of a zoning ordinance if passed by a four-fifths
vote; and
~-ý
WHEREAS, such interim ordinance shall be of no further force and effect ninety days from the date
of adoption thereof; provided however, that after the required notice and public hearing pursuant to Sections
19.12.060 through 19.12.080 of the Municipal Code, the City Council may, by a four-fifths vote, extend such
interim ordinance for one year, and subsequently for one additional year; and
WHEREAS, it is the intention of the City Council to maintain an interim ordinance in effect only
until such time that the City Council adopts any amendments to land use policies affecting outdoor storage in
the various redevelopment project areas; and
WHEREAS, the Planning and Environmental Manager has detennined that this ordinance will not
have a physical effect on the environment and is therefore exempt from CEQA under Section 15308, Class 8
(Actions by regulatory agencies for protection ofthe environment).
NOW, THEREFORE, the City Council of the City ofChula Vista does ordain as follows:
SECTION I. Findings.
A. The nature of outdoor storage is such that the use could result in visual and economic blight,
soil and ground water contamination, other environmental hazards, and incompatibility with other land uses
unless adequate location criteria are established along with development standards and operation and
m"rooœ reg,'o',""
B. The various redevelopment project areas were fonned in order to eliminate conditions of
blig 1. The potential introduction or over proliferation of uses involving outdoor storage without adequate
land use and regulatory policies could result in additional blight and the reduction of available land that
woul hinder the implementation of the various redevelopment plans and the achievement of their goals and
obje tives.
C. Auto recycling uses have been identified as contributing to blighting conditions ofthe Otay
Valley Road Redevelopment Project Area since these uses involve outdoor storage, which can be
incompatible with other land uses, result in under-developed land, create the potential for soil and ground
water contamjnation, and result in visual blight.
D. The land use policies that regulate outdoor storage in the various redevelopment project
areas are inadequate and fail to address the goals and objectives of the redevelopment plans and are in need
of revjsion and updating. Further, the City will not have the ability to make infonned decisions regarding the
pennitting of uses involving outdoor storage until staff has completed the necessary studies of these types of
uses.
E. This is a maner of importance to the various redevelopment project areas and is not directed
towards any particular parcel of property or proposed use.
SECTION 2. Finding of Urgency.
The immediate adoption of this ordinance is necessary to protect the public safety, health, and
welfare in order to prevent the frustration of studies on these matters and the adoption of adequate land use
policies. The absence of this ordinance would create a serious threat to the orderly and effective
implementation of any land use policies that would be adopted as a result of the necessary studies, in that the
further development of uses involving outdoor storage in the various redevelopment project areas may
~-S'
J:ICOMMDEV\RESOSIOutdoor Storage Ordinance-Urgeney.doe Page 2 of3
conflict with the provisions of the adopted land use policies.
SECTION 3. Tolling of Existing Outdoor Storage Uses.
Within all redevelopment project areas, the expiration period for any special land use penn it or other
entitlement, existing on the effective date of this ordinance, for the operation of a use with outdoor storage
shall be tolled while this ordinance is in effect. Thereafter, the remaining balance of the expiration period
shall commence upon expiration or repeal of this ordinance.
SECTION 4. Prohibition of New Outdoor Storage Uses.
Within all redevelopment project areas, no application, penn it, or other entitlement for the
establishment, expansion, or extension of time for the operation ofa use involving outdoor storage shall be
accepted, processed, or approved while this ordinance js in effect, unless such application, permit, or other
entitlement is deemed complete prior to the effective date of this ordinance.
SECTION 5. Exceptions.
The classes of uses, projects, or permits listed in thjs section shall be exempt from the provisions of
Sections 3 and 4 of this ordinance. Exempted uses shall be subject to all applicable requirements of the
Municipal Code.
a) Storage or parking of operable vehicles for sale, lease, or rental;
b) Facilities and operations of public and quasi-public agencies and utilities;
c) Temporary, on-site storage of materials and equipment for new construction;
d) Penn its for grading;
e) Plant nurseries; and
t) Incidental outdoor storage not exceeding 20 percent of the gross floor area of buildings
devoted to a primary use.
SECTION 6. Effective Date.
This interim ordinance is adopted under the provisions ofthe Municipal Code of the City ofChula
Vista and shall take effect and be in full force jmmediately upon its passage by a four-fifths vote ofthe City
Council.
SECTION 7. Expiration Date.
This interim ordinance shall be of no further force and effect ninety days from the date of ad option.
Presented by Approved as to fonn by
Chris Salomone John M. Kaheny
Community Development Director City Attorney
J:ICOMMDEV\RESOSIOutdoor Storage Ordinance-Urgency.doc
ç}- ~
J:ICOMMDEV\RESOSIOutdonr Storage Ordinance-Urgency.doc Page3 of3
ORDINANCE NO. ~
AN ORDINANCE OF THE CITY OF CHULA VISTA PROHIBiTiNG
THE ESTABLISHMENT OR EXPANSION OF OUTDOOR STORAGE
USES; AND TOLLING THE OPERATiON OF EXISTING OUTDOOR
STORAGE USES WITHIN THE REDEVELOPMENT PROJECT AREAS
WHEREAS, the City's redevelopment project areas were formed in order to eliminate various
conditions of blight; and
WHEREAS, the redevelopment plans for the various redevelopment project areas contain goals,
objectives, policies, and programs directed at the elimination ofbljght within the project areas; and
WHEREAS, the Implementation Plan for the Otay Valley Road Redevelopment Project Area sets
forth policy that directs the Redevelopment Agency to evaluate the ongoing operation of auto recycling
facilities, which involve outdoor storage, and to develop land use policy that is consistent with the goals and
objectives of the redevelopment plan; and
WHEREAS, it would be prudent and appropriate for the Redevelopment Agency to broaden the
scope ofthe policy direction to include all uses involving outdoor storage, which is the essential character of
similar land uses that should also be evaluated, and to also jnclude all redevelopment project areas, which
share common goals and objectives to eliminate blighting influences; and
WHEREAS, staff requires adequate time to conduct the required studies and develop appropriate
policy recommendations that address where, when, and under what conditions outdoor storage uses would be
compatible with surrounding land uses and consistent with land use policies affecting the various
redevelopment project areas; and
WHEREAS, businesses have recently expressed interest in filing applications to establish or expand
land uses involving outdoor storage in the Otay Valley Road Redevelopment Project Area and the Southwest
Redevelopment Project Area; and
WHEREAS, several businesses with outdoor storage and operating under sunsetting special land use
permits in the Otay Valley Road Redevelopment Project Area are likely to file requests in the near future for
extensions of time to continue their operations; and
WHEREAS, the filing of these pending and potential applications would require extensive staff
resources for processing and timely action by the Redevelopment Agency; and
WHEREAS, the establishment or expansion of outdoor storage uses would frustrate the necessary
studies and create a threat to the orderly and effective implementation of any amendments to land use
policies affecting the various redevelopment project areas; and
WHEREAS, it is the intention of the City Council to maintain this ordinance in effect only until such
time that the City Councjl adopts any amendments to land use policies affecting outdoor storage in the
various redevelopment project areas; and
c:J-7
WHEREAS, the Planning and Environmental Manager has detennined that this ordinance will not
have a physical effect on the environment and is therefore exempt from CEQA under Section 15308, Class 8
(Actions by regulatory agencies for protection of the environment).
NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows:
SECTION 1. Findings.
A. The nature of outdoor storage is such that the use could result in visual and economic blight,
soil and ground water contamination, other environmental hazards, and incompatibility with other land uses
unless adequate location criteria are established along with development standards and operation and
maintenance regulations.
B. The various redevelopment project areas were formed in order to eliminate conditions of
blight. The potential introduction or over proliferation of uses involving outdoor storage without adequate
land use and regulatory policies could result in additional blight and the reduction of available land that
would hinder the implementation ofthe various redevelopment plans and the achievement oftheir goals and
objectives.
C. Auto recycling uses have been identified as contributing to blighting conditions of the Otay
Valley Road Redevelopment Project Area sjnce these uses involve outdoor storage, which can be
incompatible with other land uses, result in under-developed land, create the potential for soil and ground
water contamination, and result in visual blight.
D. The land use policies that regulate outdoor storage jn the various redevelopment project
areas are inadequate and fail to address the goals and objectives of the redevelopment plans and are in need
of revision and updating. Further, the City will not have the ability to make infonned decisions regarding the
pennitting of uses involving outdoor storage until staff has completed the necessary studies of these types of
uses.
E. This is a matter of importance to the various redevelopment project areas and is not directed
towards any particular parcel of property or proposed use.
SECTION 2. Tolling of Existing Outdoor Storage Uses.
Within all redevelopment project areas, the expiratjon period for any special land use penn it or other
entitlement, existing on the effective date of this ordinance, for the operation ofa use with outdoor storage
shall be tolled while this ordinance is in effect. Thereafter, the remainjng balance of the expiration period
shall commence upon repeal of this ordinance.
SECTION 3. Prohibition of New Outdoor Storage Uses.
Within all redevelopment project areas, no application, penn it, or other entitlement for the
establishment, expansion, or extension of time for the operation of a use involving outdoor storage shall be
accepted, processed, or approved while this ordinance is in effect, unless such application, penn it, or other
entitlement is deemed complete prior to the effective date of this ordinance.
~~g'
J:\COMMDEV\RESOS\Outdoor Storage Ordinance.doc Page 2 of3
SECTION 4. Exceptions.
The classes of uses, projects, or penn its listed in this section shall be exempt from the provisions of
Sections 2 and 3 of this ordinance. Exempted uses shall be subject to all applicable requirements of the
Municipal Code.
a) Storage or parkjng of operable vehicles for sale, lease, or rental;
b) Facilities and operations of public and quasi-publjc agencies and utilities;
c) Temporary, on-site storage of materials and equipment for new construction;
d) Penn its for grading;
e) Plant nurseries; and
f) Incidental outdoor storage not exceeding 20 percent of the gross floor area of buildings
devoted to a primary use.
SECTION 5. Effective Date.
This ordinance is adopted under the provisjons of the Municipal Code ofthe City ofChula Vista and
shall become effective thirty days after its adoption.
Presented by Approved as to fonn by
Chris Salomone John M. Kaheny
Community Development Director City Attorney
J:\COMMDEV\RESOS\Outdoor Storage Ordinance.doc
~-9
J:\COMMDEVlRESOS\Ourdoor Storage Ordinance.doc Page3 on
~~ft.
-.-
~~...,,;::'
- --
---
cm OF
(HUlA. VISTA
Office of the City Clerk
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
TO: Chrissy
Star News
FAX: 619/426-6346
FROM: Donna Norris, Deputy City Clerk
Phone: 619/691-5041
FAX: 619/585-5774
DATE: April 25, 2001
NUMBER OF PAGES FOLLOWING THIS SHEET: 1
For publication next Friday, April 27, 2001.
NOTICE OF PUBLIC HEARING
CITY OF CHULA VISTA
PROHIBITION ON ESTABLISHMENT OR EXPANSION OF OUTDOOR STORAGE
INTERIM ORDINANCE
NOTICE IS HEREBY GIVEN THAT THE CHULA VISTA CITY COUNCIL AND
REDEVELOPMENT AGENCY will hold a public hearing on an interim ordinance to prohibit
the establishment and expansion of outdoor storage uses in the City's redevelopment
areas. The hearing will be held on Tuesday, May 8, 2001 at 6:00 p.m. at the City Council
Chambers, Public Services Building, 276 Fourth Avenue.
Staff has recommended that this interim ordinance be adopted on an urgency basis to
protect the public safety, health, and welfare pursuant to the Municipal Code, Section
19.12.130. The interim ordinance shall take effect and be in full force immediately upon
adoption by a four-fifths vote of the City Council. The interim ordinance shall be of no
further force and effect ninety days from the date of adoption thereof unless extended
pursuant to the Municipal Code, Sections 19.12.060 through 19.12.080.
For more information, please contact Raymond Pe at (619) 409-5804.
Any petitions to be submitted to the City Council must be received by the City Clerk's Office
no later than noon of the hearing date.
If you wish to challenge the City's action on these matters in court, you may be limited to
raising only those issues you or someone else raised at the public hearing described in this
notice, or in written correspondence delivered to the City Clerk's Office at or prior to the
public hearing.
COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT (ADA)
The City, in complying with the Americans With Disabilities Act, requests individuals who
require special accommodation to access, attend and/or participate in a City meeting,
activity or service request such accommodation at least 48 hours in advance for meetings,
and 5 days for scheduled services and activities. Please contact the City Clerk's Office for
assistance at (619) 691-5041. Service for the hearing impaired is available at (619) 585-
5647 (TOO).
DATED: April 25, 2001
04/25/2001 09: 35 5194255345 THE STAR NEWS PAGE 01/01
c,ITIj OF C,I+vI..A VISTA 1
~++\6moN ON ~5\A6/..\SH(n-EV'1T 012..1
t:"f'AN<;;./O r-..J Of tnrrOooR. c¡:.TO~
NOTICE S HEREBY GIVEN IN~IN. 0 RDI N,At-..JCt::
THAT T E CHULA VISTA
CITY CO JNCll AND REDE- .
VELOPM NT AGENCY will
hold a p blic hearing on an
interim rdinance to pro-
hiblt the stabllshment and Jßf
expansio 1 of outdoor stor-
age uses in the City's rede-
velopme 11 areas. The
hearing ill be held on ~
Tuesday, May 8, 2001 at
',OI"m 1 '" COy """"
Chamber" Public Services l~l~
Building, 276 Fourth
Avenue.
Staff h s recommended 6
that this nterim ordinance
be adopt. d on an urgency U I
basis to , rotect the public
safety, h ~ alth and welfare w1~~
pursuant to Municipal
Code. S ction 19.12.130.
The interi n ordinance shall
take effe t and be in full Av~
force im mediately upon
adoption by a four-fifths
vote of e City Council.
The interi n ordinance shall
be of no urther force and
effect nin ty days from the
date of doptlon thereof
unless e ended pursuant CtrJrv{
to the unicipal Code, c~
Sections 19.12.060
through 1 .12.080. vI] ~
For m re information,
please c ntact Reymond
Pe at (61 )409-5804. .
Any pet ions to be sub.
milled to the City Council
must be received by the
City Clerk Office no later ~
than noo of the hearing
date.
If you ish to challenge ~
the City's action on these th._nSSj -- ,
matters In court, you may
be limited to raising only I 0 'i. ~/l(\
those issu s you or some-
one else r ised at the pub-
lie hearing described in this
notice, or in written cor- vr~ ,>,
responden e delivered to
the City CI .rk's Office at or
prior to th public heari~.
COMP lANCE WI H
AMERIC NS WITH DIS-
ABILITIES ACT(ADA) The
city, in co plying with the
Americans With Disabilities
Act, requ sts individuals
who requi special accom-
modation access, attend
and/or pa .icipate in a City
meeting, a '!ivity or service
request su .h accommoda-
tion at leas . 48 hours in ad-
vance for eetings, and 5
days for cheduled ser-
vices and ctivities.Please
contact t e City Clerk's
Office fa r assistance at
(619)691- 041. Service for
the heari 9 impaired is
available at (619)585-
5647~DD )
CV15 85 4/27/01
Public Notices
CITY COUNCIL/REDEVELOPMENT AGENCY/HOUSING
AUTHORITY AGENDA STATEMENT
~
IIEM NO.: -.2
MElliNG DAlE: OS/29/01
IIEM IIILE: A) PUBLIC HEARING: CITY COUNCIL CONSIDERATION OF THE
ISSUANCE OF TAX EXEMPT OBLIGATIONS WITH RESPECT TO
THE HERITAGE TOWN CENTER AFFORDABLE HOUSING
PROJECT.
B) HOUSING AUTHORITY RESOLUTION REGARDING ITS
INTENTION TO ISSUE TAX EXEMPT OBLIGATIONS FOR A
PROPOSED AFFORDABLE SENIOR AND MULTIFAMILY
HOUSING PROJECT KNOWN AS HERITAGE TOWN
CENTER WITHIN THE OTAY RANCH MASTER PLANNED
COMMUNITY
C) COUNCIL RESOLUTION AUTHORIZING THE SALE,
ISSUANCE AND DELIVER OF MULTIFAMILY HOUSING
REVENUE BONDS BY THE HOUSING AUTHORITY OF THE
CITY OF CHULA VISTA FOR THE PROPOSED HERITAGE
TOWN CENTER AFFORDABLE HOUSING PROJECT.
D) JOINT COUNCIL AND AGENCY RESOLUTION
CONDITIONALLY APPROVING FINANCIAL ASSISTANCE,
SUBJECT TO FUTURE APPROPRIATION, IN THE FORM OF
A RESIDUAL RECEIPTS LOAN FROM THE LOW AND
MODERATE INCOME HOUSING FUND IN AN AMOUNT
NOT -TO-EXCEED $4,400,000 AND A TEN YEAR DEFERRAL
OF THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE,
WAIVER OF THE RESIDENTIAL CONSTRUCTION FEE, AND
WAIVER OF THE PARK FEE TO SOUTH BAY COMMUNITY
VILLAS, L.P. FOR THE DEVELOPMENT OF THE PROPOSED
271 UNIT HERITAGE TOWN CENTER
SUBMlnED BY: COMMUNITY DEVELOPMENT DIRECTOR (. L,/
REVIEWED BY: EXECUTIVE DIRECTOR
4/SIHS VOlE: YES 0 NO D
BACKGROUND
The City of Chula Vista has received a request from South Bay Community Villos, loP., a
partnership belween The Otay Ranch Company and Soufh Bay Community Services, to consider
~:; - (
PAGE 2, ITEM NO.:
MEETING DATE: OS/29/01
the issuance of tax exempt obligations to finance the development of a 271 unit affordable
housing complex, consisting of 91 units for seniors and 180 units of multifamily housing, within
the Otay Ranch master planned community. The proposed "Herifage Town Center" project is
located on 9.3 acres of vacant land in fhe Ofay Ranch Village 1 tentafive mop R47 & C1 sites, on
East Palomar Street between Santa Rita Avenue and Santa Andrea Avenue in the City of Chula
Vista (Exhibit 1). Additionally, the Redevelopment Agency hos received a request for financial
assistonce for the project and fhe City is being asked to waive certain City fees.
This project has been the subject of prior Council policy discussion regarding the satisfaction of
ORC's affordable housing obligation. Consisfenf wifh fhis prior direction, stoff ond fhe applicant
have reached agreement on all business terms and are presenting this 271-unit project for
consideration.
The developer is in the process of preparing an application for an allocation of the 2001 stote
ceiling on private activity bonds for mulfi-family projects from fhe California Debt Limit Allocation
Commiffee (CDLAC) and is requesfing thaf fhe Chula Visfa Housing Aufhority be the vehicle for
applying for an aggregafe amount not to exceed $25 million. The applicotion musf be submiffed
by June 1,2001. The bond allocation will be used to substantially finance the project.
At this time, the City Council is asked to hold 0 public hearing On the question of whether the
Housing Authority should issue tax exempt bonds for the finoncing of the project and to approve
the issuance, sole, and delivery of multi-family housing revenue bonds by fhe Housing Aufhority
af the fime a bond allocation is received.
Additionally, it is requested that the Housing Authority adopt a resolution expressing its
preliminary intention to issue bonds. The requesfed actions are preliminary ond do not commit
the Aufhority to issue fhe bonds. Such preliminary actions are necessary in order to allow fhe
project developer to submit an applicotion to the State bonding authority and to allow the
developer to receive reimbursement out of bond proceeds for costs it incurs leading up to the
actual sale of bonds. If successful in obtaining a bond commitment from CDLAC, the developer
plans to come back fo the Authority to request final approval for the issuance of fhe bonds.
In accordance wifh the requirements of CEQA, the Environmental Review Coordinator has
determined that the proposed project has had adequate prior review and is in compliance with
the previously certified environmental documents for the Otay Ranch Sectional Planning Area
(SPA) One (EIR-97 -03), and no further oction by the City Council is necessory. Any project
contemplated On fhe west side of the City would be subiect to further environmenfal
consideration.
RECOMMENDATION
It is recommended that the Housing Aufhority, Redevelopment Agency, and the City Council take fhe
following actions:
3 - d-
PAGE 3, ITEM NO.:
MEETING DATE: OS/29/01
1. That the City Council conduct the required public hearing regarding the Authority's intent
to issue the tax exempt obligations for the proposed Heritage Town Center.
2. Thaf fhe Authority adopt the resolufion regarding ifs infenfion to issue tox-exempt
obligations for the proposed Heritage Town Center within the Otay Ranch Master Planned
Community.
3. That the City Council adopt a resolufion approving the issuance, sale and delivery of
multifamily revenue bonds of the Housing Authority of the City of Chula Vista for the
Heritage Town Center developmenf of fhe Otay Ranch master planned community.
4. Thof fhe Agency adopt the resolution conditionally approving financial assistance of
$4,400,000 fo Soufh Bay Community Villas, L.P for fhe development of fhe proposed 271
unit Heritage Town Center proiect.
5. Thaf fhe City adopt the resolufion condifionally approving finoncial assistance, in fhe form
of a fen year deferral of the public facilities developmenf impact fee, waiver of the
residential construction fee, and waiver of fhe park fee to South Bay Community Villas, L.P
for the development of the proposed 271 unif Herifage Town Center project.
BOARDS/COMMISSIONS RECOMMENDATION
On February 7, 2001, the Housing Advisory Commission vofed fo recommend the development
of the proposed Herifage Town Center and the use of tax-exempt bonds and Low and Moderate
Income Housing Set-aside funds to finance the project.
On January 22. 2001, fhe Design Review Committee reviewed fhe proposed plans and
recommended approval of the project.
DISCUSSION
THE PROPOSED PROJECT
Under the City's Affordable Housing Program, The Otay Ranch Company hos On obligation to
provide 246 units affordable to low income households and 246 affordable to moderate income
households wifhin OIay Ranch Section Planning Area (SPA) One. Soufh Bay Community Villas, L.P.,
a porlnership between The Otay Ranch Company and South Bay Community Services, has proposed
the development of 180 family and 91 units of senior housing wifhin a mixed use commercial
project to sotisfy their affordable housing obligation.
Heritage Town Center will be locafed on East Polomar Streef between Santa Rita Avenue and
Santa Andrea Avenue within a multi-family and commercial area idenfified in the Otay Ranch
Village 1 tentative map os R47 & C1. This site is directly adjacent to the Sharp Rees Stealy Medical
3-3
PAGE 4, ITEM NO.:
MEETING DATE: OS/29/01
Clinic and across the streef from on elementory school and an eleven-acre neighborhood park. The
site is located along a transit corridor (East Palomor bus stop and future light roil).
The units for seniors 62 years of age or older propose one bedroom (546 square feet) floor pions.
Amenities will include a library/computer room, a centralized recreation/activity room with a kitchen,
laundry facilities, and storage oreas. Occupancy will be resfricted to senior citizens. One unit will be
used for an on-site property manager and will nof be income and rent resfricted.
The 180 units of multifamily residential opartments is located at the rear of the development site. It
consists of a mixture of two, three and four bedroom unifs ranging from 670 squore feef fo 1,213
square feef. Amenities will include a 2,800 square foof community cenfer with an open space
recreational area featuring 0 tot lot, barbeque and play area. Two units will be used for an on-site
property manager and a maintenance worker and will nof be income and rent restricted.
MAJOR DEAL POINTS
In the negotiations with fhe Developer for financiol assistance and incentives to assist in fhe
development of Heritage Town Center project, discussions centered on the following issues:
. Financial subsidy fo assisf with the financing gap created by high developmenf costs and limifed
available finoncing sources;
. Waiver of the applicable Public Facilities Development Impact Fee (PDIF) and Pork fee with the
condifion fhaf the Developer dedicate addifionalland for a future community park; and,
. Extra credit for the provision of large bedroom unifs and an extended term of affordability.
PROPOSED FINANCING OF PROJECT
Finoncing and development of this project is a joinf private-public partnership. The developer is
proposing fo use Tax Exempt Multifamily Revenue Bonds and low income tax credit financing to
support the estimated $30,903,950 cost of constructing the project.
The applicant has requested direct financial assisfance from the Redevelopment Agency to make
the project financially feasible. Staff supports providing a Redevelopmenf Agency loan of
$4,400,000 (as discussed below) to assist in financing the residential portion of the project.
Financial assistance for the residential units will be subject to negotiation of satisfactory terms of
fhe Regulafory Agreement and Loan Agreement ond the approval of such terms and documents
by fhe Agency af a lafer dafe.
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PAGE 5, ITEM NO.:
MEETING DATE: OS/29/01
escnplon
roJec os:
Avg Agency Subsidy per Unit (271 Units) $ 16,236
Agency Leverage $7.02:$1.00
Staff is recommending that the Agency conditionally approve financial assistance (subject to
future appropriation) in the form of a residual receipts loan in an amount not to exceed
$4,400,000 (avg $16,236 per unit). Sfaff recommends that fhe Agency's subsidy range from
$10,000 for a one-bedroom unit and increosing fo $35,800 for a four-bedroom unif. The
provision of large bedroom units (three and four bedroom units) is very difficult to provide
because of higher development costs and because fhey are the most scarce in the renfal housing
market. This amount is reasonable given the maximum bond and tax credit allocation.
Description
Leveraaina Of Aaency Funds
The degree of leveraging of Agency Low Income Housing funds is an important factor which staff
takes into account in the evaluafion of affordable housing proposals. In evaluating a proposal,
staff reviews the developer's track record, success in securing public and private financing, ability
to complete projects on time and On budget and demonstrated ability to highly leveroge Agency
funds.
The proposed Agency's assistance to this project equates to $16,236 per unit and amounts to a
leveraging of $7.02 to $1 of Agency funds (total proiect cost/ Agency loan ).
Undue Gain
If is important that any financial assistance provided hos the effect of making the units more
affordable and not creating undue gain for any party. The developer will receive 0 "Developer
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Fee" esfimafed af $1,200,000 ar approximately 3.9% of total project costs and consists of profit
and overhead for developing the project. Otay Ranch has agreed to defer all of their developer
fee in order to fill some of the financing gop of the project. Stoff hos confirmed that fhe
developer fee is wifhin accepfable sfandards adopted by the Sfate Tax Credif Allocation
Committee and the Federal Home Loan Bank's Affordable Housing Program for a project of this
size and affordability.
Form of Assisfance
Agency assistance will be provided sfrictly for the development of the residenfial units and will be
in the form of a residuol receipts loan secured by a promissory note and deed of trust. The
outsfanding principol and interest On the loan will be repaid over fifty-five years ond shall accrue
wifh simple inferest af 3 percenf per annum. Paymenf of principal and interesf, or portions
thereof, on the Agency loan shall be made on an annual basis, out of a fund equal to fifty (50%)
percent of the net cash flow of the project (Residual Receipts) after debt service On bonds,
payment of deferred developer fee, and reasonable operating expenses hove been paid.
More specific terms of the loan will be further negotiated. The required loan agreement and
associafed documenfs will be negofiated and presenfed fo the Agency at a later fime.
DEVELOPMENT FEES
Addifionally, the developer had requesfed the waiver/deferral of certain City fees.
Sfaff and fhe developer have reached ogreement fo defer the public facilities development impoct
fee (PDIF) ($709,478) for 10 years, and to waive the Residential Construction Tax($73,O75).
Staff has agreed to waive the park fee ($355,466 for land and improvements) in exchange for
the developer dedicating an odditional 1.8 acres for a future community park.
AFFORDABLE HOUSING CREDITS
The Developer and staff have reoched agreement regarding the Developer's request for
consideration of exfra credifs for providing three and four bedroom units and retaining the
offordobility restrictions for fifty-five (55) yeors.
With the development of 271 units, the proposed project is already providing 26 units (does not
include three units used for on-site staff) in excess of the 242 unit requirement (surplus units). The
City has allowed the credit of unifs built in excess of fhe minimum affordable housing obligation
on a unit for unif basis. Therefore, fhe City would normally consider allowing the 26 of fhe 271
project units built in excess of the required 242-unit obligation to be used as credit for other
offordoble housing obligations.
The developer's request goes beyond credit for surplus units on a unit for unit basis regardless of
unit size. The orgument made by the developer is that this project provides extra benefif to fhe
City by developing units with larger unit sizes (3 and 4 bedroom units), an extended term of
offordobility and the unique location of the project. The development provides for a variety of
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PAGE 7, ITEM NO.:
MEETING DATE: OS/29/01
housing types, senior and family housing, commercial retail uses mixed with the development,
and a location that is within walking distance to a park, school, medical facilities, and public
transportafion. Because of the unique locofion and product mix of this project, sfaff supports a
unique unif credif process. This is intended for use on a one-time basis and will not be
considered for future affordable housing projects unless they contain the same unique factors.
Based upon a combination of a SANDAG formula for Housing Elemenf self certification,
CDLAC/TCAC applicafion requirements, ond the proposed project benefits, sfaff would
recommend that a 0.2 credit be given to all units for the extended term of affordability, an
additional 0.5 unit credit for three bedroom units, and an additional 1.0 unit credit for four
bedroom unifs.
The scarcity and demand for large bedroom units, particularly four bedroom units, warrant
greater credit. While TCAC, CDLAC, ond the execufed Affordable Housing Agreement have
guidelines for fhe provision of three bedroom units, no guidelines or requirements exisf for fhe
provision of four bedroom units. Therefore, the developer is not obligated or required to provide
four bedroom unifs. Staff recommends allowing additional unif credits for fhree and four
bedroom unifs fo encourage the provision of fhese much needed unif sizes.
Based upon staff's proposal, Otay Ranch would be allowed a 119-unit low income credit, which
is comprised of a 26 surplus unif credit and an addifional credit of 93 unifs for large bedroom
sizes ond an extended term of affordability. This unif credit will be used only by ORC to satisfy
fhe developer's future affordable housing obligation, more specifically, ORC's obligation for
Village Six (69 low income unifs) and Village Two (143 units).
Note: The two units tor the on-site property managers and the one unit for the maintenance worker were
not used for determining extra credits or surplus units.
DEVELOPMENT RISKS
In its role as lender to the project, the Agency is exposed to three risks inherent fo real estote
development. These risks generally include: 1) predevelopment (project does not get to
construction), 2) construction (project cannot be completed, cost overruns, COntractor problems),
and 3) operation (revenues do nof cover expenses). Adding to these risks, the Agency's financial
assistonce will be subordinated to conventional financing.
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PAGE 8, IIEM NO.:
MElliNG DAlE: OS/29/01
A number of factors mitigate these risks. First, 0 component of the development teom hos a
track record with other affordoble housing projects. The presence of other major financial
commifmenfs, such as the tax credif investments, means that other stakeholders depend On the
short and long-term success of the project. By its nature, affordable housing presents some, but
very limited market risk because of the deeply discounted renfs. Finally, while fhe Agency is
vulnerable due fo ifs subordinated financing, if helps to alfrect fhe necessary privafe financing.
Assuming all financial commitments are secured, construction is expected to begin Fall 2001
with completion of the project estimafed by Winter 2002.
ARTICLE XXXIV
The Aufhority's and the Agency's affordability and low-income restrictions (described below in
Income and Rent Restrictions section) will be limited to not more than 49 percent of the units so
fhat the project is exempt from Article XXXIV of the Sfafe Constitution, which would require a
public vote of approval for fhe development and consfruction of low renf housing projects by a
public body. Requirements of the other funding sources will resulf in the balance of fhe units
being resfricted to low income.
Although Herifage Town Center is exempf from the provisions of Article XXXIV, fhe loan
agreemenf will time the disbursement of funds to occur after the 60-day period fo chollenge a
project has elopsed, thereby providing an additionol layer of protection to the Agency. The
agreement will also provide thaf if the developer requesfs an eorlier disbursement date, fhe
developer shall indemnify the Agency from an Article XXXIV challenge, and staff may then
consider an earlier disbursement date.
INCOME AND RENT RESTRICTIONS
It is proposed fhat fhe income, renf, and age restrictions for Herifage Town Center will be
maintained for a period not less thon fifty-five years, exceeding the 30-year term of the bonds.
The income ond rent restrictions outlined above ore to be incorporated into the Regulatory and
Loan Agreements for both the bonds and the Agency Loan, which will be recorded ogainst the
properly. The affordable housing commitment will bind all subsequent owners of Heritage Town
Center, so thaf fhe commitment remains in force regardless of ownership, except in limited
circumsfonces following a default and foreclosure On the project. Such agreemenfs will be
presented to the Agency and Authority at a later date.
The Regulatory Agreement between the Housing Authority and the developer for the bond
financing and the Agency loan will resfrict 49 percent of the total units (132 units) for occupancy
by low-income households af 60 percenf or less of AMI. Requirements of the other funding
sources will result in the remaining 139 units being affordoble for households at 60 percent of
AMI.
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Compliance wifh the income and rent restrictions will be subject annually fo 0 regulafory audit
and annual tax credit certification. South Bay Community Services has successfully managed low-
income housing unifs for three years. Compliance with sfrict property management policies and
procedures will ensure fhat income and rent resfrictions will be maintained for fhe full 55-year
compliance period.
CONCLUSION
In light of fhe short fime frame for applicafion fo CDLAC for bond allocafion, sfaff recommends
City Council hold a public hearing to consider issuance of tox exempt obligations for the 271 unit
offordoble housing project, approvol of the Housing Authority resolution regarding its intent to
issue fax-exempt obligafions for Heritoge Town Cenfer within Ofay Ranch and approval of fhe
City Council resolution authorizing fhe sale, issuonce, and delivery of the bonds by fhe Aufhority.
Approval of these resolutions do not constitute a commitment of fhe Authority to issue such
bonds. This resolution merely provides the opportunity for the developer to apply to CDLAC by
fhe June 1" submittal deadline. If successful in obtaining a fax credit allocofion, fhe developer may
elect nof fo accept that funding if the of her alternative becomes more desirable.
Based On the foregoing, staff recommends approval of the Agency resolution conditionally
approving financial assistance, subject fo fufure appropriation, in an amount nof-to-exceed
$4,400,000 (plus fee waivers) from fhe Agency's Low/Moderate Income Housing fund. Sfaff's
recommendafion is based upon the following:
. The proposal's effectiveness in serving fhe City's housing needs and priorifies as expressed in
the Housing Elemenf of fhe Generol Plan and the HUD Consolidated Plan.
. The proposal's development and operating feasibility, financing sources and the role of the
City and fhe Agency in providing financial assistance or incentives.
. It is the intent of the City to attempt fo provide offordable housing opportunities to households
earning at or below 50% of AMI in order to receive fufure credits as outlined in the Housing
Elemenf of the General Pion.
The Heritage Town Center development as proposed by Soufh Bay Community Villas, loP., is
financially sound. The recommended Agency ossistance meefs the Agency's underwriting goals
of reasonable project costs and leveraging of Agency resources. The project's unit mix and
affordability support fhe Agency housing goals.
FISCAL IMPACT
Approval of this resolution only indicates an intenfion by the Authority fo issue tax-exempt
obligations and does not commit the Authority to issue bonds at this time. All cosfs related to the
issuance of the bonds will be paid from bond proceeds or profits. The bonds will be secured by
fhe project and will nof constitufe a liability or obligation fo the Aufhority. Some staff cosfs will be
associafed wifh monitoring compliance wifh the Regulatory Agreement. Those costs will be
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reimbursed from an annuol administrative and origination fee to be poid by Developer to the
Authority, which will be negotioted before the Authority approves the octual issuance of the bond.
The loan amount of $4,400,000 will be appropriafed at fhe time of execution of fhe Loan
Agreement from the unappropriated bolance in the Low/Moderate fund which hos a current
balance of approximafely $5.2 million. Additionolly, the City will be committed fo the PDIF
deferral (unspecified fiscal impoct amount), Park Fee woiver ($355,466 for land and
improvemenfs) and RCT waiver ($73,075). Funds for staff services are budgefed in the staff
services portion of the Housing Division budgef.
AnACHMENTS
1. Locafor Map
2. Site Plan
(HINES) j,\COMMDEV\STAFF.REP\05-29-01\A 113 O!ay Ranch Hsg Bonds.doc [5/25/01 2,34 PM]
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HOUSING AUTHORITY RESOLUTION NO.
RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF
CHULA VISTA REGARDING ITS INTENTION TO ISSUE TAX-
EXEMPT OBLIGATIONS FOR A PROPOSED AFFORDABLE
SENIOR AND MULTIFAMILY HOUSING PROJECT KNOWN AS
HERITAGE TOWN CENTER WITHIN THE OTAY RANCH MASTER
PLANNED COMMUNITY
WHEREAS, the Housing Authority of the City of Chula Vista (the "Issuer") desires to assist
South Bay Community Villas, LP. (the "Applicant") in financing the costs of constructing and a
multifamily rental housing project, as described Exhibit A attached hereto and incorporated herein
(the "Project");
WHEREAS, the Issuer intends to assist in the financing of the construction of the Project or
portions of the Project with the proceeds of the sale of obligations the interest upon which is
excluded from gross income for federal income tax purposes (the "Obligations"), which Obligations
are expected to be issued pursuant to Chapter 10f Part 2 of Division 24 the Health and Safety Code
of the State of California; provided, however, that this Resolution shall not authorize the issuance of
the Obligations and provided further that neither the faith and credit nor the taxing power of the
Issuer shall be pledged to repay such Obligations if, and when, authorized; and
WHEREAS, prior to the issuance of the Obligations the Applicant expects to incur certain
expenditures with respect to the Project from its oWn available monies which expenditures it desires
to have reimbursed from a portion of the proceeds of the sale of the Obligations if, and when, issued;
and
WHEREAS, Section 146 of the Internal Revenue Code of 1986, as amended (the "Code")
limits the amount of multifamily housing revenue bonds that may be issued in any calendar year by
entities within a state and authorizes the governor or the legislature of a state to provide the method
of allocation within the state; and
WHEREAS, Chapter 11.8 of Division 1 of Title 2 of the Government Code of the State of
California (the "Government Code") governs the allocation of the state ceiling among governmental
units in the State of California having the authority to issue multifamily housing revenue bonds; and
WHEREAS, Section 8869.85 of the Government Code requires a local agency to file an
application with the California Debt Limit Allocation Committee ("CD LAC") prior to the issuance of
multifamily housing revenue bonds; and
WHEREAS, the Issuer desires to apply to CDLAC for an allocation for the Project;
NOW, THEREFORE, the BOARD OF COMMISSIONERS of the HOUSING AUTHORITY OF
THE CITY OF CHULA VISTA DOES HEREBY RESOLVE, ORDER AND DETERMINE AS
FOLLOWS;
SECTION 1. The Issuer has received an application for the financing of the Project On
behalf of the Applicant (the "Application"). The Applicant will incur costs with respect to the Project
prior to the issuance of the Obligations. The Issuer hereby states its intention and reasonably
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Resolution No.
Page 2
expects to reimburse to the Applicant for such costs with proceeds of the Obligations; provided,
however, that nothing herein obligates the Issuer to issue the Obligations or provides the Applicant
with any legal right to compel the issuance of the Obligations, which decision remains in the final
discretion of the Issuer. Exhibit A describes the general character, type, purpose, and function of the
Project.
SECTION 2. The reasonably expected maximum principal amount of the Obligations is
$25,000,000. This Resolution is being adopted nO later than sixty (60) days after the date (the
"Expenditure Date or Dates") that the Applicant will expend moneys for the portion of Project costs to
be reimbursed from proceeds of the Bonds.
The expected date of issue of the Bonds is within eighteen (18) months of the later of the
Expenditure Date or Dates and the first date the Project is placed in service and, in nO event, later
than three years after the Expenditure Date or Dates.
SECTION 3. Proceeds of the Bonds to be used to reimburse for Project costs are not
expected to be used directly or indirectly to pay debt service with respect to any obligation or to be
held as a reasonably required reserve or replacement fund with respect to an obligation of the Issuer
or any entity related in any manner to the Issuer, or to reimburse any expenditure that was originally
paid with the proceeds of any obligation, or to replace funds that are or will be used in such manner.
SECTION 4. This Resolution is consistent with the budgetary and financial circumstances
of the Issuer, as of the date hereof. No monies from sources other than the Obligations are, or are
reasonably expected to be reserved, allocated On a long-term basis, or otherwise set aside by the
Issuer (or any related party) pursuant to their budget or financial policies with respect to the portion
of the Project costs to be financed with the Obligations. This Board of Commissioners is not aware
of any previous adoption of official intents by the Issuer that have been made as a matter of course
for the purpose of reimbursing expenditures relating to the Project and for which tax-exempt
obligations have not been issued.
SECTION 5. This Resolution is adopted as official action of the Issuer in order to comply
with Treasury Regulation § 1.103-8(a)(5) and Treasury Regulation § 1.150-2 and any other
regulations of the Internal Revenue Service relating to the qualification for reimbursement of
expenditures incurred prior to the date of issue of the Obligations, is part of the Issuer's official
proceedings, and will be available for inspection by the general public at the main administrative
office of the Issuer.
SECTION 6. The officers and employees of the Authority are hereby authorized and
directed to apply to CDLAC for a portion of the private activity bond allocation set aside for the
calendar year 2001 for the Project in an aggregate amount not to exceed $25,000,000, to collect
from the Applicant and hold pursuant to CDLAC requirements the required CDLAC deposit for the
requested allocation, and to certify to CDLAC that such amount has been placed On deposit in an
account in a financial institution. Because the amount of private activity bond allocation is limited,
such officers are also authorized to resubmit the application to CDLAC one or more times during the
calendar year 2001 in the event the application is denied by CDLAC.
,3 - (2.
Resolution No.
Page 3
SECTION 7. The officers and employees of the Issuer are hereby authorized and directed,
jointly and severally, to take any actions and execute and deliver any and all documents which any
of them deem necessary or advisable, with the advice of City Attorney, in order to effectuate the
purposes of this Resolution, and such actions previously taken by such officers and employees are
hereby ratified and confirmed; provided that the terms and conditions under which the Bonds are to
be issued and sold must be approved by this Board in the manner provided by law prior to the sale
of the Bonds.
SECTION 8. All the recitals in this Resolution are true and correct.
SECTION 9. This Resolution shall take effect immediately upon its adoption.
Presented by Approved as to form by
Chris Salomone John M. Kaheny
Director of Community Development Agency Attorney
(HINES) hCOMMDEV\RESOS\HA Reso Inducemenl-He,dage Town Cenle,.DOC [5/25/01 2:03 PM)
3-13
EXHIBIT A
DESCRIPTION OF PROJECT
A proposed multifamily rental housing project of approximately 271 units to be
known as "Heritage Town Center" and to be located on 9.3 acres of vacant land in the Otay
Ranch Village on East Palomar Street between Santa Rita and Santa Andrea in the City of
Chula Vista, California.
:7_(c/
'-
RESOLUTION NO.
COUNCIL RESOLUTION AUTHORIZING THE ISSUANCE, SALE
AND DELIVERY OF MULTI-FAMILY HOUSING REVENUE
BONDS BY THE HOUSING AUTHORITY OF THE CITY OF
CHULA VISTA FOR THE HERITAGE TOWN CENTER PROJECT
WHEREAS, the Housing Authority of the City of Chula Vista (the "Authority")
adopted a resolution that constituted a declaration of official intent to issue multifamily housing
revenue bonds (the "Bonds") to finance the construction of a multifamily rental housing Project
in the City of Chula Vista described in the notice of public hearing attached as Exhibit A hereto
(the "Project"); and
WHEREAS, in order for interest on the Bonds to be tax-exempt, Section 147(f) of
the Internal Revenue Code of 1986 requires that the Bonds be approved by the City Council as
the applicable elected representative after a public hearing following reasonable public notice;
and
WHEREAS, notice of a public hearing with respect to the proposed issuance of
the Bonds was published in a newspaper of general circulation in the City on May 11, 2001; and
WHEREAS, the public hearing was held on May 29, 2001, and an opportunity
was provided for interested persons to express their views on the issuance of the Bonds and on
the nature and location of the Project;
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula
Vista that this City Council, as the applicable elected representative under Section 147(f) of the
Code, approves the issuance of the Bonds by the Authority to finance the acquisition and
rehabilitation of the Project.
Presented by Approved as to form by
Chris Salomone John M. Kaheny
Community Development Director City Attorney
[Hines] J:IHOMEICOMMDEVIRESOSICC Reso Bonds-Heritage Town Center
3 -(5'
EXHIBIT A
[FORM OF]
PUBLIC NOTICE
CITY OF CHULA VISTA
PUBLIC HEARING
ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS
NOTICE IS HEREBY GIVEN that, at its regular meeting to be held at 6:00 p.m. on
Tuesday, May 29, 2001, at the City Council Chambers of the City of Chula Vista located at 276
Fourth Avenue, Chula Vista, California 91910, the City Council of the City of Chula Vista will
conduct a public hearing as required by Section 147(f) of the Internal Revenue Code of 1986, as
amended, at which it will hear and consider information concerning the issuance by the Housing
Authority of the City of Chula Vista (the "Authority") of bonds (the "Bonds") to finance a
proposed multifamily rental housing and a senior housing project of approximately 180 family
units and 91 units for seniors to be known as "Heritage Town Center" located on 9.3 acres of
vacant land in the Otay Ranch Village 1 tentative map area C1 and R-47, on East Palomar
Street between Santa Rita and Santa Andrea in the City of Chula Vista, California. The Project
(the "Project") is to be owned and/or operated by South Bay Community Villas, L.P., a California
limited partnership. The Authority proposes to issue the Bonds in an aggregate principal
amount not to exceed $25,000,000.
At least 20 percent of the rental units in the Project are required to be available for
occupancy by persons or families whose income does not exceed 50 percent of the median
income for the San Diego, California Primary Metropolitan Statistical Area, or, alternatively, at
least 40 percent of the rental units are required to be available for occupancy by persons or
families whose income does not exceed 60 percent of the median income for the Area, in each
case at affordable rents established by applicable State law.
ALL PERSONS HAVING ANY INFORMATION RELEVANT TO THE PROPOSED
ISSUANCE OF THE BONDS DESCRIBED ABOVE ARE HEREBY INVITED TO APPEAR AT
THE TIME AND PLACE MENTIONED ABOVE TO PRESENT SUCH INFORMATION TO THE
CITY COUNCIL.
If you wish to challenge the City's action on the matter in court, you may be limited to
raising only those issues you or someone else raised at the public hearing described in this
notice, or in written correspondence delivered to the City Clerk's Office at or prior to the public
hearing.
For further information, contact Juan P. Arroyo, Housing Manager of the City of Chula
Vista, at (619) 585-5722.
/s/ Susan Bigelow
City Clerk of the City of Chula Vista
Publish by: May 14, 2001
..3-((;,
RESOLUTION NO.
(COUNCIL RESOLUTION NO. )
JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
CONDITIONALLY APPROVING FINANCIAL ASSISTANCE, SUBJECT
TO FUTURE APPROPRIATION, IN THE FORM OF A RESIDUAL
RECEIPTS LOAN FROM THE LOW AND MODERATE INCOME
HOUSING FUND IN AN AMOUNT NOT-TO-EXCEED $4,400,000 AND
A TEN YEAR DEFERRAL OF THE PUBLIC FACILITIES
DEVELOPMENT IMPACT FEE, WAIVER OF THE RESIDENTIAL
CONSTRUCTION FEE, AND WAIVER OF THE PARK FEE TO SOUTH
BAY COMMUNITY VILLAS, L.P. FOR THE DEVELOPMENT OF THE
PROPOSED 271 UNIT HERITAGE TOWN CENTER
WHEREAS, California Health and Safety Code Sections 33334.2 and 33334.6 authorize and
direct the Redevelopment Agency of the City of Chula Vista (the "Agency") to expend a certain
percentage of all taxes which are allocated to the Agency pursuant to Section 33670 for the purposes of
increasing, improving and preserving the community's supply of low and moderate income housing
available at affordable housing cost to persons and families of low- and moderate-income, lower
income, and very low income; and
WHEREAS, pursuantto applicable law the Agency has established a Low and Moderate Income
Housing Fund (the "Housing Fund"); and
WHEREAS, pursuant to Health and Safety Code Section 33334.2(e), in carrying out its
affordable housing activities, the Agency is authorized to provide subsidies to or for the benefit of very
low income and lower income households, or persons and families of low or moderate income, to the
extent those households cannot obtain housing at affordable costs on the open market, and to provide
financial assistance for the construction and rehabilitation of housing which will be made available at an
affordable housing cost to such persons; and
WHEREAS, pursuant to Health and Safety Code Section 33413(b), the Agency is required to
ensure that at least 15 percent of all new and substantially rehabilitated dwelling units developed within
a project area under the jurisdiction of the Agency by private or public entities or persons other than the
Agency shall be available at affordable housing cost to persons and families of low or moderate income;
and
WHEREAS, South Bay Community Villas, L.P. ("Developer") proposes to construct a mixed
use project of 30,000 square feet of commercial retail and 91 senior apartment units and a 180 unit
multifamily rental development, with 30 units affordable to very low households at 50 percent of the
Area Median Income (AMI), 102 units affordable to low households at 60 percent of the Area Median
Income (AMI) and 149 units affordable to moderate-income households at or below 120 percent of
AMI, within the Otay Ranch Master Planned Community ("Project"); and
WHEREAS, Developer is applying for an allocation of Multifamily Housing Revenue Bonds from
the California Debt Limit Allocation Committee (CDLAC); and
WHEREAS, Developer is applying for four percent (4%) tax credits from the Tax Credit
Allocation Committee (TCAC); and
3- ( 7
Resolution No.
Page 2
WHEREAS, additional financing is necessary in order to make the residential use ofthe Project
feasible; and
WHEREAS, the Developer requires assistance to reduce the development costs for the
construction of the residential units in order to make the Project feasible; and
WHEREAS, the provision of affordable housing units like the Project is consistent with and
called for by the City's General Plan Housing Element, Consolidated Plan, and California Health and
Safety Code; and
WHEREAS, the Agency wishes to provide Developer with a development loan of four million
four hundred-six thousand eight hundred dollars ($4,400,000) to assist with the financing gap for the
construction of the residential units of the Project; and
WHEREAS, the City of Chula Vista (the "City") wishes to waive the applicable Public Facilities
Development Impact Fee (PDIF) ($709,478), Residential Construction Tax ($73,075), Reserve Fund
Fee ($33,604) and the Park Fee ($355,466 for land and improvements) to assist in reducing the
development costs for the construction of the residential units of the Project; and
WHEREAS, the Agency's provision of funds to the residential use of the Project will directly
improve the City's supply of very low and moderate-income housing; and
WHEREAS, in accordance with California Health and Safety Code Section 33334.2 (g), staff is
recommending that the Agency find and determine that even though the Project is to be located outside
the City's redevelopment project areas, those areas will benefit through the creation of jobs in the
project area and elsewhere in the City by providing housing for persons who work within the City's
redevelopment project areas, and through the policies served by dispersing affordable housing
throughout the jurisdiction rather than clustering it all in one area; and
WHEREAS, the Agency has adopted an Implementation Plan pursuant to Health and Safety
Code Section 33490, which sets forth the objective of providing housing to satisfy the needs and desires
of various age, income and ethnic groups of the community, and which specifically provides for the
construction of new affordable rental housing units through Agency assistance; and
WHEREAS, the residential use of the Project furthers the goals of the Agency set forth in the
Implementation Plan as it will facilitate the creation of affordable housing which will serve the residents
of the neighborhood and the City; and
WHEREAS, the City's Housing Advisory Commission did, on the 7'" day of February, 2001, hold
a public meeting to consider said request for financial assistance; and
WHEREAS, the Housing Advisory Commission, upon hearing and considering all testimony, if
any, of all persons desiring to be heard, and considering all factors relating to the request for financial
assistance, has recommended to the Redevelopment Agency that the appropriation be approved
because the Commission believes that the Agency's financial participation in the development of the
Project will be a sound investment based upOn Developer's ability to effectively serve the City's housing
needs and priorities as expressed in the Housing Element and the Consolidated Plan and the cost
effectiveness of the Agency's financial assistance based upon the leveraging of such resources; and
J - «(
Resolution No.
Page 3
WHEREAS, in accordance with the requirements of CEQA, the Environmental Review
Coordinator has determined that the proposed project has had adequate prior review and is in
compliance with the previously certified environmental documents for the Otay Ranch Sectional
Planning Area (SPA) One (EIR-97-03), and nO further action by the City Council is necessary.
NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of Chula Vista
does hereby conditionally approve a residual receipts loan subject to future appropriation in an amount
not-to-exceed $4,400,000 from the Agency's Low and Moderate Income Housing Set-Aside fund to
Developer for the construction ofthe residential units of the Project subject to the Agency's approvals of
an affordable housing and loan agreement which shall include, at a minimum, the following terms and
conditions:
1. Funds shall be used only for those costs directly related to the residential units of the Project.
2. The loan repayment will be secured by a Deed of Trust and Promissory note for the property On
behalf of the Redevelopment Agency of the City of Chula Vista and recorded against the Project
property.
3. The term of the loan shall be fifty-five (55) years.
4. The outstanding balance shall accrue with simple interest at 3 percent per annum.
5. Payment of principal and interest On the Agency loan shall be made, On an annual basis, out of a
fund equal to fifty percent (50%) of the "Residual Receipts", rental income from the Project minus
debt service On the bonds, payment of the deferred developer fee, and reasonable operating
expenses.
6. Developerwill be required to operate the Project consistent with the Regulatory Agreement required
by the Project's tax credit financing, the covenants imposed by the Agreement, and any other
project requirements.
7. Developer shall enter into a loan agreement with the Agency consistent with the terms set forth
above and with such other terms as shall be required or approved by the Agency Attorney.
8. This conditional approval remains subject to final approval by the Agency in its sole discretion.
BE IT FURTHER RESOLVED the City Council of the City of Chula Vista does hereby
conditionally approve a ten year deferral of the payment of the applicable Public Facilities Development
Impact Fee in the amount of $709,478, a waiver of the Residential Construction Tax in the amount of
$73,075 and a waiver of the Park Fee in the amount of $355,466 to assist with reducing the
development costs for the construction of the residential units of the Project subject to satisfaction of the
fOllowing condition:
1. Developer shall dedicate an additional 1.8 acres of land for a future community park.
J - ( 9
Resolution No.
Page 4
BE IT FURTHER RESOLVED in accordance with California Health and Safety Code Section
33334.2 (g), the Agency finds and determines that even though the Project is to be located outside the
City's redevelopment project areas, those areas will benefit through the creation of jobs in the project
area and elsewhere in the City by providing housing for persons who work within the City's
redevelopment project areas, and through the policies served by dispersing affordable housing
throughout the jurisdiction rather than clustering it all in one area.
Presented by Approved as to form by
Chris Salomone John M. Kaheny
Director of Community Development Agency Attorney
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EXHIBIT 1
PROJECT LOCA nON
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