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HomeMy WebLinkAboutRDA Packet 2005/08/09 ~{It- =~-~ -:i:--~= ~- CllY OF CHUlA VISfA TUESDAY, AUGUST 9,2005 6:00 P.M, (immediately following the City Council meeting) COUNCIL CHAMBERS PUBLIC SERVICES BUILDING A .JOINT MEETING OF REDEVELOPMENT AGENCY I CITY COUNCIL OF THE CITY OF CHULA VISTA CALL TO ORDER ROLL CALL Agency/Council Members Castaneda, Davis, McCann, Rindone; Chair/Mayor Padilla CONSENT CALENDAR The staff recommendations regarding the following item(s) 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 a "Request to Speak Form" available in the lobby and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Public Hearing items. Items pulled by the public will be the first items of business. 1. APPROVAL OF MINUTES - June 28, 2005; July 19, 2005; July 26, 2005 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. ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the Council/Agency, staff, or members of the general public. The items will be considered individually by the Council/Agency and staff recommendation may in certain cases be presented in the alternative. Those who wish to speak, please fill out a Request to Speak form available in the lobby and submit it to the City Clerk prior to the meeting. 2, JOINT RESOLUTION OF THE REDEVELOPMENT AGENCY AND CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN ASSET UTILIZATION PROJECT NEGOTIATING AGREEMENT WITH THE SWEETWATER UNION HIGH SCHOOL DISTRICT TO FACILITATE PLANNING AND REDEVELOPMENT OF MISCELLANEOUS DISTRICT PROPERTIES - The Joint Planning Agreement will obligate the City to encourage near term development of district-owned property converting undeveloped properties to desirable and marketable land uses, [Director of Community Developmentl STAFF RECOMMENDATION: Agency/Council adopt the resolution, OTHER BUSINESS 3. DIRECTOR'S REPORT 4. CHAIR REPORT 5, AGENCY COMMENTS ADJOURNMENT The Redevelopment Agency will adjourn to an adjourned meeting on August 16, 2005, at 6:00 p.m., in the Council Chambers. 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 (619) 691-5047 or Telecommunications Devices for the Deaf (TOO) at (619) 585-5647. California Relay Service is also available for the hearing impaired. RDA/City Council, August g, 2005 Page 2 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND A SPECIAL MEETING OF THE PUBLIC FINANCING AUTHORITY OF THE CITY OF CHULA VISTA June 28, 2005 6:00 p.m. The Adjourned Regular Meeting of the City Council and the Special Meeting of the Public Financing Authority of the City of Chula Vista were called to order at 7:44 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Council/Authority Members Castaneda, Davis, McCann, Rindone and Mayor/Chair Padilla ABSENT: None ALSO PRESENT: City Manager/Executive Director Rowlands, City Attorney/ Authority Counsel Moore, City Clerk Bigelow CONSENT CALENDAR 1. APPROVAL OF MINUTES - June 7, 2005, and June 14,2005 Staff recommendation: Council/Authority approve the minutes. ACTION: Council/Authority Member Rindone moved to approve the minutes as submitted. Council/Authority Member Davis seconded the motion, and it carried 5-0. ORAL COMMUNICATIONS There were none. ACTION ITEMS 2. CONSIDERATION OF (I) REFUNDING CERTAIN ASSESSMENT DISTRICT BONDS; (2) APPROVAL OF CERTAIN REASSESSMENT REPORTS AND REASSESSMENTS WITHIN CERTAIN REASSESSMENT DISTRICTS (3) ISSUANCE OF LIMITED OBLIGATION REFUNDING BONDS FOR CERTAIN REASSESSMENT DISTRICTS AND APPROVING AGREEMENTS AND OTHER ACTIONS IN CONNECTION THEREWITH; (4) ACTING AS THE LEGISLATIVE BODY OF CERTAIN COMMUNITY FACILITIES DISTRICTS; AND (5) ISSUING REFUNDING REVENUE BONDS AND APPROVING AGREEMENTS AND OTHER ACTIONS IN CONNECTION THEREWITH (Director of Finance/Treasurer; continued from the meeting of June 7, 2005) ACTION: Council/Authority Member Rindone offered the following resolutions for adoption, headings read, texts waived: 1-1 ACTION ITEMS (Continued) A. RESOLUTION NO. 2005-218, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING AND DIRECTING COMPLIANCE WITH THE "REFUNDING ACT OF 1984 FOR 1915 IMPROVEMENT ACT BONDS," AS MODIFIED, IN CONNECTION WITH THE ISSUANCE OF LIMITED OBLIGATION REFUNDING BONDS FOR THE PURPPOSE OF REFUNDING CERTAIN ASSESSMENT DISTRICT BONDS B. RESOLUTION NO. 2005-219, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, APPROVING THE REASSESSMENT REPORT AND CONFIRMING REASSESSMENTS WITHIN REASSESSMENT DISTRICT 2005-1 C. RESOLUTION NO. 2005-220, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE REASSESSMENT REPORT AND CONFIRMING REASSESSMENTS WITH REASSESSMENT DISTRICT NO. 2005-2 D. RESOLUTION NO. 2005-221, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF LIMITED OBLIGATION REFUNDING BONDS FOR REASSESSMENT DISTRICT NO. 2005-1, APPROVING THE FORMS OF BOND INDENTURE, REFUNDING BONDS PURCHASE AGREEMENT, BOND PURCHASE AGREEMENT AND ESCROW AGREEMENT AND AUTHORIZING OTHER ACTIONS IN CONNECTION THEREWITH E. RESOLUTION NO. 2005-222, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF LIMITED OBLIGATION REFUNDING BONDS FOR REASSESSMENT DISTRICT NO. 2005-2, APPROVING THE FORMS OF BOND INDENTURE, REFUNDING BONDS PURCHASE AGREEMENT, BOND PURCHASE AGREEMENT AND ESCROW AGREEMENT AND AUTHORIZING OTHER ACTIONS IN CONNECTION THEREWITH F. RESOLUTION NO. 2005-223, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 97-3 (OTAY RANCH MCMILLLIN SPA ONE), COMMUNITY FACILITIES DISTRICT NO. 99-1 (OTAY RANCH SPA ONE- PORTIONS OF VILLAGE ONE, VILLAGE FIVE AND VILLAGE ONE WEST), COMMUNITY FACILITIES DISTRICT NO. 2000-1 (SUNBOW II - VILAGES 5 THROUGH 10), AND COMMUNITY FACILITIES DISTRICT NO. 2001-1 (SAN MIGUEL RANCH), AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF SEPARATE SERIES OF SPECIAL TAX REFUNDING BONDS OF EACH SUCH COMMUNITY FACILITIES DISTRICTS, APPROVING THE FORMS OF BOND INDENTURES FOR EACH SUCH SERIES OF SUCH REFUNDING BONDS, A REFUNDING BONDS PURCHASE AGREEMENT AND ESCROW AGREEMENTS FOR EACH SERIES OF REFUNDED BONDS, AND AUTHORIZING OTHER ACTIONS IN CONNECTION THEREWITH Page 2 Council/PF A Minutes 06/28/05 1-2 ACTION ITEMS (Continued) G. RESOLUTION NO. PFA-9, RESOLUTION OF THE CHULA VISTA PUBLIC FINANCING AUTHORITY OF THE CITY OF CHULA VISTA AUTHORIZING THE ISSUANCE OF REFUNDING REVENUE BONDS, APPROVING THE FORMS OF AN INDENTURE OF TRUST, BOND PURCHASE CONTRACT, REFUNDING BONDS PURCHASE AGREEMENT, PRELIMINARY OFFICIAL STATEMENT AND CONTINUING DISCLOSURE AGREEMENT AND AUTHORIZING OTHER ACTIONS IN CONNECTION THEREWITH The motion carried 5-0. OTHER BUSINESS 3. CITY MANAGER'S REPORT There were none. 4. CHAIR REPORTS There were none. 5. AUTHORITY COMMENTS There were none. ADJOURNMENT At 7:50 p.m. Mayor/Chair Padilla adjourned the meeting until further notice of a Special Meeting of the Public Financing Authority. ~GLw~~~ Susan Bigelow, MMC, City Clerk Page 3 Council/PF A Minutes 06/28/05 1-3 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA July 19, 2005 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 6:34 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California ROLL CALL: PRESENT: Council/Agency Members Castaneda, Davis, McCann, Rindone and Mayor/Chair Padilla ABSENT: None ALSO PRESENT: City Manager/Executive Director Rowlands, City Attorney/ Agency Counsel Moore, City Clerk Bigelow CONSENT CALENDAR Mayor/Chair Padilla stated that he would abstain from voting on the minutes of June 21,2005, as he was not present at that meeting. 1. APPROVAL OF MINUTES - June 21,2005 Staff recommendation: Council/Agency approve the minutes. 2. COUNCIL RESOLUTION NO. 2005-250 AND REDEVELOPMENT AGENCY RESOLUTION NO. 1916, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING CONSULTANT AGREEMENTS WITH THE ROSENOW SPEVACEK GROUP, INC. (RSG) FOR REDEVELOPMENT CONSULTANT SERVICES; AND AUTHORIZING THE CHAIR TO EXECUTE SAID AGREEMENT The proposed contracts with RSG include updating the redevelopment area implementation plans, amending the Town Centre I and Bayfront plans, and extending the project areas due to the ERAF shifts. Since the total consultant fee for all RSG agreements now exceeds $50,000, Agency/Council approval is required. Staff is requesting waiving the formal consultant selection process based on RSG's qualifications and experience, the limited market for its type of expertise, and its satisfactory work performance on previous consultant work. [Director of Community Development] Staff recommendation: Council/Agency adopt the resolution. 1-4 CONSENT CALENDAR (Continued) 3. ORDINANCE NO. 3012. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE SECTION 2.05.010 RELATING TO THE ESTABLISHMENT OF UNCLASSIFIED POSITIONS TO ADD THE POSITION OF SENIOR COUNCIL ASSISTANT (SECOND READING) Adoption of the ordinance amends the Municipal Code to add the position of Senior Council Assistant to better reflect the needs of the City's workforce. This ordinance was introduced on June 28, 2005. [Director of Budget & Analysis - 4/5ths vote required) Staffrecommendation: Council adopt the ordinance. ACTION: Council/Agency Member McCann offered the Consent Calendar, headings read, texts waived. The motion carried 5-0 except with regard to Item 1, which carried 4-0-1 with Mayor/Chair Padilla abstaining. ORAL COMMUNlCATIONS There were none. OTHER BUSINESS 4. CITY MANAGERlEXECUTIVE DIRECTOR'S REPORTS There were none. 5. MAYOR/CHAIR'S REPORTS There were none. 6. COUNCIL/AGENCY COMMENTS Agency/Councilmember Rindone thanked staff for the memorandum on the progress of the application process for selection of Chula Vista Redevelopment Corporation independent directors and requested that the information also be provided to the media. ADJOURNMENT At 6:37 p.m., Mayor/Chair Padilla adjourned the Adjourned Regular Meeting of the Redevelopment Agency to an Adjourned Regular Meeting on July 26, 2005 at 6:00 p.m. in the Council Chambers. -~ jDJ ~~~~I Susan Bigelow, MMC, City Clerk Page 2 Council!RDA Minutes 1-5 07119/05 T MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA July 26, 2005 6:00 p.m. An Adjourned Regular Meeting of the Redevelopment Agency of the City of Chula Vista was called to order at 7:24 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Agencymembers: Castaneda, Davis, McCann, Rindone, and Chair Padilla ABSENT: Agencymembers: None ALSO PRESENT: Executive Director Rowlands, City Attorney Moore, and City Clerk Bigelow CONSENT CALENDAR 1. APPROVAL OF MINUTES - June 28, 2005 Staff recommendation: Agency approve the minutes. ACTION: Agencymember Castaneda moved to approve staffs recommendation and offered the Consent Calendar, heading read, text waived. The motion carried 5-0. ORAL COMMUNICATIONS There were none. ACTION ITEMS 2.. CONSIDERATION OF EXCLUSIVE NEGOTIATING AGREEMENTS FOR FIVE PROPERTIES WITH VARIOUS DEVELOPERS LOCATED WITHIN THE TOWN CENTRE I AND MERGED REDEVELOPMENT PROJECT AREAS OF THE CITY OF CHULA VISTA Establishment of a refined Exclusive Negotiating Agreement process with qualified developers for five properties located within the Town Centre I and Merged redevelopment project areas of the City of Chula Vista. (Community Development Director) 1-6 ACTION ITEMS (Continued) Redevelopment Projects Manager Crockett discussed the process and functions of the exclusive negotiating agreements for western Chula Vista. Senior Community Development Specialist Do presented the new redevelopment approach. Mr. Crockett provided an overview of each of the five development sites and then introduced the developers for each site: Richard Gustafson, President, CityMark Development LLC; Douglas Austin, Chairman/CEO, Avion Development LLC; Joe Werner, Chief Operating Officer, Intergulf-Mar (Park) LLC; and Douglas Wilson, President, Douglas Wilson Companies. Each developer presented project portfolios. Agencymember Castaneda expressed the need to ensure the City's commitment to public participation throughout the process, the highest quality and regard as to what needs to be achieved in downtown Chula Vista, and approval of the best projects for the City. Agencymember McCann spoke of the need for mutual success between all parties. He stated that redevelopment must take place as soon as possible with public input and high quality projects that will benefit the public and create positive change in the City. Agencymenber Rindone stated that public participation and workshops are imperative as part of the process, and he was excited to see redevelopment occurring on Third Avenue. ACTION: Chair Padilla then moved to adopt Resolutions 1917 through 1921, headings read, texts waived: AGENCY RESOLUTION NO. 1917, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING AN EXCLUSIVE NEGOTIATING AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND DOUGLAS WILSON COMPANIES REGARDING THE REDEVELOPMENT OF THE LANDIS A VENUE NORTH SITE AGENCY RESOLUTION NO. 1918, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING AN EXCLUSIVE NEGOTIATING AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND CITYMARK DEVELOPMENT LLC REGARDING THE REDEVELOPMENT OF THE LANDIS AVENUE SOUTH SITE AGENCY RESOLUTION NO. 1919, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING AN EXCLUSIVE NEGOTIATING AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND CITYMARK. DEVELOPMENT LLC REGARDING THE REDEVELOPMENT OF THE THIRD AVENUE AND E STREET NORTHEAST SITE Page 2 RDA Minutes 07126/05 1-7 ACTION ITEMS (Continued) AGENCY RESOLUTION NO. 1920, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING AN EXCLUSNE NEGOTIATING AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND A VION DEVELOPMENT LLC REGARDING THE REDEVELOPMENT OF THE THIRD AVENUE AND E STREET SOUTHEAST SITE AGENCY RESOLUTION NO. 1921, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING AN EXCLUSIVE NEGOTIATING AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND INTERGULF- MARK (PARK) LLC REGARDING THE REDEVELOPMENT OF THE THIRD AVENUE AND G STREET NORTHWEST SITE The motion carried 5-0. OTHER BUSINESS 3. DIRECTOR'S REPORTS There were none. 4. CHAIR'S REPORTS There were none. 5. AGENCYMEMBERS COMMENTS There were none. ADJOURNMENT At 8:20 p.m., Chair Padilla adjourned the meeting in memory of Mark Allen to an Adjourned Regular Meeting on August 9, 2005, at 4:00 p.m., immediately following the City Council Meeting in the Council Chambers. -.:r- ~~~~ Susan Bigelow, MMC, dry Clerk Page 3 RDA Minutes 07/26/05 1-8 PAGE 1, ITEM NO.: d..... MEETING DATE: 08/09/05 JOINT REDEVELOPMENT AGENCY / CITY COUNCIL AGENDA STATEMENT ITEM TITLE: RESOLUTION APPROVING AN ASSET UTILIZATION PROJECT NEGOTIATING AGREEMENT WITH THE SWEETWATER UNION HIGH SCHOOL DISTRICT TO FACILITATE PLANNING AND REDEVELOPMENT OF MISCELLANEOUS DISTRICT PROPERTIES REVIEWED BY: EXECUTIVE DIRECTO LWf SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR 4/5THS VOTE: YES D NO 0 BACKGROUND In 2003, the City entered into a joint planning agreement with the Sweetwater Union High School District. The agreement obligotes the City to encourage neor term development of District owned property converting undeveloped properties to desirable ond morketable land uses. Eorlier this year the District entered into a purchase agreement with the owners of a 30+ acre industrial site ("site") (formerly known as the Ratner buildings) locoted in the Agency's Merged Redevelopment Project Areo on L Street. The District proposed to locate all district facilities including, but not limited to, odministrotive services, operotions, mointenonce, purchasing, tronsportotion, food, support services and an adult school to the site. After evaluation of the District's proposal by the City and following 0 joint meeting between the Sweetwater Union High School Board ond the City Council both porties have held additional meetings to discuss alternate ideos to the District's proposol. RECOMMENDATION Approve the Asset Utilizotion Agreement BOARDS/COMMISSIONS RECOMMENDATION Not Applicable DISCUSSION Following the joint meeting of the City Council ond District Board earlier this year, City and District staff have met twice to discuss olternotives to the current District proposol. Discussions 2-1 PAGE 2, ITEM NO.: ~ MEETING DATE: 08/09/05 have been between the City's Community Development Department and stoff from the Finonce and Operations Departments of the School District. The ogreement under discussion will impact these and other administrative departments, ond will not directly impact the Region I ond/or Region II schools or personnel. The outcome of the meetings has been 0 willingness of the District to re-consider locating their odministration offices within 0 mixed-use development on the District's Third Avenue site ond to develop their corporation yard in Southwestern Chulo Vista along Moin Street. City stoff hos agreed to work diligently with the District to locate a suitable site for a corporation yord. In additian, the City and District have agreed to on Asset Utilization Project Negotiating Agreement ("Agreement") that estoblishes the fromework for consideration of alternotives. Key Terms of the Asset Utilization Aqreement The ogreement provides a framework for analyzing the District's proposal and any modificotion the parties think would moke the project more feosible and, if oppropriote, negotiate owner participation ogreements for eoch of the sites proposed to be developed by the District. The agreement identifies the development of a new centrolly locoted odministrotion focility, a new corporation yard and an adult school as District priorities. Based on Council direction, the agreement identifies the development of the District's administration center on Third Avenue, locoting 0 site for the District's corporotion yard ond new residentiol and/or mixed use developments that incorporate new parks and public amenities ot Moss Street, Fifth Avenue and/or L Street as City priorities. The Agreement requires that over the next four months the City ond District stoff will review site plans, elevotions, pro-formos, development schedules and proposed owner participation ogreements (OPA). In addition, the District and Agency will coordinate the processing of Generol Plan Amendments for District owned property ond evaluate the District's need for sharing of the net tox increment generated by their development properties. The District's current proposol demonstrates some need for financiol assistance. Based on the requested densities at each site stoff will work with the District to negotiote potential funding of up to 0 moximum of 50% of net tax increment generoted by the development properties, if such need is demonstroted. If ot the conclusion of 120 doys the parties are close to agreement on a sharing of tox increment and an OPA then the agreement may be extended for on additional 30 days. However, if no agreement can be reached then agreement will terminate. FISCAL IMPACT Adoption of the agreement does not create a financial obligation by the City or Agency. ATTACHMENTS Exhibit "A": Asset Utilization Project Negotiating Agreement 2-2 AGENCY RESOLUTION NO. AND COUNCIL RESOLUTION NO. JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING AN ASSET UTILIZATION PROJECT NEGOTIATING AGREEMENT WITH SWEETWATER UNION HIGH SCHOOL DISTRICT TO FACILITATE PLANNING AND REDEVELOPMENT OF MISCELLANEOUS DISTRICT PROPERTIES WHEREAS, the Sweetwater Union High School District ("District') has approached the City with a plan to assess the redevelopment potential of a number of District-owned properties to provide for enhanced District office, administrative and maintenance facilities to keep pace with District educational plans and priorities; and; and WHEREAS, the City and Redevelopment Agency are desirous of ensuring well-planned and quality redevelopment of the District properties, including a potential mixed-use District headquarters site, planned residential communities, and a District maintenance/corporation yard; and WHEREAS, City/Agency desires to implement the provisions of the 1995 Property Exchange Agreement and the 2003 Joint Planning Agreement which called for Agency assistance with development of the Third and Alvarado site as the location of a new District headquarters facility; and WHEREAS, it is in the joint and several interest of all parties to the agreement that quality redevelopment proceed in order to provide District and City with revenues to better provide for the needs of local residents. NOW, THEREFORE, BE IT RESOLVED that the City Of Chula Vista and the Redevelopment Agency of the City of Chula Vista do hereby (1) approve an Asset Utilization Project Negotiating Agreement with Sweetwater Union High School District on the terms presented, and (2) authorize and direct the Mayor/Chairman to execute the agreement in a final form approved by the City Attorney. Presented by Approved as to form by Laurie Madigan Director of Community Development " U~tt1_>i~ Ann Mo re City Attorney and Agency Counsel ~~ f~~ J :\COMMDEV\RESOS\2005\07 -26-05\Sweetwater.doc 2-3 T ASSET UTILIZATION PROJECT NEGOTIATING AGREEMENT THIS ASSET UTILIZATION PROJECT NEGOTIATING AGREEMENT (the "Agreement") is made and entered into as of July 27,2005, by and between the CHULA VISTA REDEVELOPMENT AGENCY, a public body corporate and politic ("Agency"), the CITY OF CHULA VISTA, A California charter city ("City"), and the SWEETWATER UNION HIGH SCHOOL DISTRICT, a California school district ("District"). The Agency, the City and the District are collectively referred to as the "Parties." RECITALS The following recitals are a substantive part ofthis Agreement: A. The District, Agency and City entered into a Joint Planning Agreement dated as of May 21, 2003 to facilitate the development of certain District owned properties. Since that time the District and Agency have considered a number of development proposals. B. The District has entered into an Exchange Agreement dated as of November 1, 2004 (the "Exchange Agreement") with the California Trust for Public Schools (the "Trust"). Agency acknowledges receiving a copy of the Exchange Agreement. All defined terms not otherwise defined herein shall be defined as provided in the Exchange Agreement. C. Since entry into the Exchange Agreement, the Trust, through Plan Nine Partners, LLC, a wholly owned subsidiary of the Trust, has acquired the L Street Property and now holds the L Street Property subject to the terms and conditions of the Exchange Agreement. D. When the Exchange Agreement was entered into, the Parties had been discussing the possibility of an exchange of the Fifth Avenue Property for the F Street Property. However, the Parties do not wish to pursue the possibility of such an exchange. Therefore, the "Development Property" as defined in the Exchange Agreement, is hereby' modified to mean each of (i) the Third Avenue Property, (ii) the Moss Street North Property, (iii) the Moss Street South Property, (iv) the Fifth Avenue Property, and (v) the L Street Property. E. The Exchange Agreement is the first step in an "Asset Utilization Project" which contemplates that the Trust will develop (i) modern administrative offices, (ii) a corporate yard and (iii) adult school facilities on the L Street Property as specified by the District (collectively, the "Administration Center") and exchange the Administration Center for the Development Properties. Moving the Chula Vista Adult School to the L Street Property will allow the District to renovate the existing adult school to create an 800 seat secondary school on the west side of Chula Vista. F, The Parties wish to discuss alternative locations of the District's administrative offices and corporate yard in addition to (i) a desirable use of the Third Avenue Development Property, (ii) the possibility of cost savings to the District in establishing a new corporate yard and (iii) greater development of the L Street Property. G. In order to complete the contemplated Asset Utilization Project, it is necessary for the District to negotiate with the Agency (i) a Facilities Agreement for the Acquisition and 2077205.3 I 2-4 Construction of the Sweetwater Administration Center (the "Facilities Agreement") pursuant to which will commit a portion of the Agency's net property tax increment (based upon demonstrated need) derived from the Development Properties ("Net Tax Increment") to be shared with the District, and (ii) an Owner Participation Agreement ("OPA") with respect to each of the Development Properties that is within an Agency Plan Area as shown on Exhibit "A" hereto, NOW, THEREFORE, the parties mutually agree as follows: 1. District Objectives. The Parties acknowledge and agree that the District's primary objectives for the Asset Utilization Project are (a) development of a new centrally located administration center, (b) development of a conveniently located corporate yard and facility, (c) development of a new adult school facility, (d) utilization of the remaining Development Properties for residential or mixed use development to generate revenues to help fund a development of all components of the Administration Center, and (e) moving the adult school to the L Street Property to allow the District to renovate the existing adult school to create an 800 seat school on the west side of Chula Vista. 2, Agency and City Objectives. The Parties acknowledge and agree that the Agency's primary objectives are (a) the development of the District's administration center in the downtown region to facilitate redevelopment and generate pedestrian traffic in the area, (b) generate residential and/or mixed use developments that are highly amenitized, including the creation of parks potentially located at the Moss Street South, Fifth Avenue, and/or L Street sites, (c) assist the District in identifying a location for the corporation yard that is acceptable to the City and District, and (d) generation of tax increment dollars in the redevelopment areas which could be used for infrastructure and other improvements within the area. 3. Sharing of Tax Increment. The Agency acknowledges that the District's proposal for a 50%/50% sharing of Net Tax Increment generated by the District's Development Properties is based on the land use densities shown in Exhibit "A" hereto and may be necessary to ensure the financial feasibility of the Asset Utilization Project. Agency agrees to use its best efforts to incorporate, if demonstrated by need, a sharing of Net Tax Increment up to a 50%ofthe Tax Increment generated by the District's Development Properties within the Facilities Agreement. District acknowledges that any sharing of Net Tax Increment generated by the District's Development Properties will be the Agency's only financial involvement in the Asset Utilization Project. 4. City Land Use Processing. Agency and District understand that the City has been processing a comprehensive General Plan Update and Urban Core Specific Plan but that neither the timing nor approval is assured. The Parties also understand that some of the proposed land uses and/or densities identified on Exhibit "A" may be inconsistent with the existing or proposed General Plan for the Fifth Avenue Property and L Street Property. Agency and City agree to use their best efforts to work with the District to process any necessary or requested General Plan Amendments and/or Specific Plans for the L Street Property or any other of the Development Properties. District further acknowledges and agrees that the City may consider a number of development alternatives for the Development Properties for consideration by the City Council as part of City's General Plan Update and Urban Core Specific Plan process. District 2077205.3 2 2-5 agrees and acknowledges that the processing and/or adoption of these plans by the City is not a consideration in its proceeding with this Agreement or the Development Properties and District may need to request amendments to the existing General Plan or, if approved, the General Plan Update or Urban Core Specific Plan. The General Plan Update and Urban Core Specific Plan are legislative actions and this agreement does not limit or in any way interfere with the City Council's ability to exercise its discretionary authority as it relates to these or any other legislative actions. The exercise of the City's legislative discretion related to the General Plan and Urban Core Specific Plan shall not form the basis of breach of this Agreement, express or implied, or any other claims against the City. 5. Negotiating Period. a. The Agency, City and District agree to negotiate the terms of and to prepare (i) a Facilities Agreement for the purpose of sharing the Tax Increment from the Development Properties, and (ii) an OP A for the purpose of developing each of the Development Properties. The Parties shall negotiate for an initial 120 days commencing July 27, 2005 unless earlier terminated in accordance with the provisions hereof (the "Initial Negotiation Period"). Agency, City and District shall negotiate diligently and in good faith to carry out all of the obligations of this Agreement on or before the times established in this Agreement. The timeline for negotiations is set forth in Exhibit "B" hereto. b, If, upon the expiration of such Initial Negotiation Period, the Parties have not completed a Facilities Agreement and an OPA for each of the Development Properties, then the City Manager, in his sole discretion, on behalf of the Agency and City and the District Superintendent in his sole discretion, on behalf of the District, are authorized to, in writing, extend the term of this Agreement for up to an additional 30 days ("Extended Negotiation Period"). The Extended Negotiation Period may be entered into provided that at the end of the Initial Negotiation Period none of the Parties have exercised their right to terminate as herein provided, the Parties are in full compliance with all terms and conditions hereof, the Parties concur with such extension of the negotiation period, and the Parties have determined there is a reasonable likelihood that an agreement regarding the terms and conditions of a Facilities Agreement and an OP A for each of the Development Properties will be reached, such that District, City and Agency staff will be able to recommend approval to their respective boards prior to the expiration of the Extended Negotiation Period. At the beginning of the Extended Negotiation Period the City Manager and the District Superintendent shall jointly prepare a written progress report that shall be given to the City Council and the District Board. c. If by the end of the Initial Negotiating Period, or after the Extended Negotiation Period, if this Agreement is extended, the District has not submitted a duly executed Facilities Agreement and a OPA with respect to each of the Development Properties which is acceptable to the City Manager, and provided that the Agency has performed its obligations in accordance with this Agreement, then this Agreement shall automatically terminate and both parties knowingly agree that neither party shall have any further rights or obligations to the other. 6, Costs and Expenses. The Agency and the District shall be responsible for their own costs and expenses in connection with any activities and negotiations undertaken in connection with the performance of their obligations under this Agreement. 2077205.3 3 2-6 7. Lead Negotiators. David D. Rowlands, Jr., City Manager, or his designee, shall be the lead negotiator for the Agency and City, with respect to the subject matter of this Agreement; provided, however, that the Agency Board, together with the City Council, reserves its right to consider and approve or disapprove the proposed Facilities Agreement and each OP A. Bruce A. Husson, District Superintendent, or his designee, shall be the lead negotiator for the District with respect to the subj ect matter of this Agreement. 8. Terms and Conditions of Future Agreements. Agency, City and District staff shall diligently and in good faith attempt to negotiate the terms and conditions of the Facilities Agreement, and an OPA for each Development Property. Either the negotiated Facilities Agreement or the OP As shall contain substantially the following terms, plus others to be negotiated by the Parties. a. Development of the Project. The District shall cause the development of the Development Properties as approved by the Agency Board/City Council. b. Economic Risk, Agency acknowledges that District anticipates assigning the Development Property OP As to merchant developers (each "Developer") and District acknowledges that neither the City nor the Agency will provide any additional gap financing to the assigned Developer. Unless expressly agreed by the City and Agency in an OP A, the Developer shall absorb all economic risks and costs associated with development of the Development Properties. c. Restrictions Against Discrimination. The Facilities Agreement and OPAs shall contain the constraints against discrimination in the form and manner required by state redevelopment law. d. Assignment, District may assign the OP As to Developers of its choice. Under specified circumstances to be defined in the OPA, a Developer may assign its rights and obligations under the OPAs provided, however, Developer shall first obtain Agency approval. Specific standards and the process for obtaining Agency approval shall be negotiated by the parties. 9. Address for Notices. Any notices pursuant to this Agreement shall be sent to the following addresses: To Agency: Chula Vista Redevelopment Agency 276 Fourth Avenue Chula Vista, CA 91910 Attention: David D. Rowlands To City: City ofChula Vista 276 Fourth Avenue Chula Vista, CA 91910 Attention: City Attorney's Office 2077205.3 4 2-7 ~ To District: Sweetwater Union High School District 1130 Fifth Avenue Chula Vista, CA 91911 Attention: Bruce A. Husson With a copy to: California Trust for Public Schools 12400 Ventura Blvd., Suite 363 Studio City, CA 91604 Attention: Marc Litchman 10. Default. Failure by either party to negotiate in good faith or to perform any other of its duties as provided in this Agreement shall constitute an event of default under this Agreement. The non-defaulting party shall give written notice of a default to the defaulting party, specifying the nature of the default and the action required to cure the default. If the default remains uncured fifteen (15) days after the date of such notice, the non-defaulting party may exercise the remedies set forth in the following Section of this Agreement. 11, Remedies for Breach of Agreement. In the event of an uncured default by the Agency, the District's sole remedy shall be to terminate this Agreement. Following such termination, neither party shall have any further rights, remedies or obligations under this Agreement. In the event of an uncured default by the District, the Agency's sole remedy shall be to terminate this Agreement. Following such termination, neither party shall have any further rights, remedies or obligations under this Agreement. Neither party shall have any liability to the other for monetary damages or specific performance for the breach of this Agreement, or failure to reach agreement on a Facilities Agreement or a OP A, and each party hereby waives and releases any such rights or claims it may otherwise have at law or at equity. 12. Attorney's Fees, In the event any action is taken by either party to this Agreement to enforce this Agreement, the prevailing party shall be entitled to recover from the other party its actual attorneys' fees and costs. 13, Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties, integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negations or previous agreements between the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. 14. Time of Essence. Time is of the essence of every portion of this Agreement in which time is a material part. 15. Agreement Is Not to be Construed as a grant of development rights or land use entitlement to construct the Development Properties or any other project. All design, architectural, and building plans for the Development Properties shall be subject to the review and approval of the Agency and the City. By its execution of this Agreement, neither the Agency nor City are committing itself to any acts or activities requiring the subsequent independent exercise of discretion by the Agency, the City or any agency or department thereof. 2077205.3 5 2-8 16, Governing Law. This Agreement shall be construed in accordance with the laws of the State of California. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth above. DISTRICT: SWEETWATER UNION ffiGH SCHOOL DISTRICT, a California school district By: c $--~"~7-"'__'// AGENCY: CHULA VISTA REDEVELOPMENT AGENCY, a public body, corporate and politic ATTEST: By: Chairman Agency Secretary APPROVED AS TO FORM: Agency Counsel CITY: CITY OF CHULA VISTA, A California charter city ATTEST: By, City Clerk APPROVED AS TO FORM: City Attorney 2077205.3 6 2-9 T EXHIBIT "A" DEVELOPMENT PROPERTIES Development Owner Approximate Plan Area Requested Zoning Property Acreage or General Plan Designation Fifth Ave. District 6.587 Town Center II, 2? DU/acre Amendment 2 Third Ave. District 2.617 Town Center I Plan Area 90 DU/acre or FAR 3 with height allowance to 84 feet No. Moss St. District 1.867 N/A 6 DU/acre So. Moss St. District 4.425 Merger Added Area 5 DU/acre L Street Trust TBD Southwest Plan Area 75 DU/acre 2077205.3 EXffiBLT "'A" 2-10 EXHIBIT "B" Asset Utilization Project Negotiating Agreement Timeline MILESTONE DESCRIPTION General Plan Application Development Schedule Site Plans and Elevations Initial Pro Forma Draft Agreements Revised Site Plans and Elevations Revised Pro Forma Agreements Extension 2077205.3 Within 30 Da s of A reement 8/26/05 Submit completed applications for General Plan amendments to the City. Within 60 Da s of A reement 9/25/05 Projected timeline and schedule for the construction of the proposed administration facility, Corporate Yard and Adult School. Submit preliminary site plans and elevations for each of the development properties (Third Avenue, Moss Street South and North, L Street and Fifth Avenue). Concurrent with site plans and elevations, submit initial pro forma evaluations for each of the proposed development scenarios and sites, including potential revenues from pass throu , residual land value and tax increment. Within 90 Da s of A reement 10/25/05) Provide draft facilities agreement. Revisions based on staff review and comments, and consistency with applicable General Plan land use policies, s ecific lans, desi uidelines, and develo ment standards. Revisions based on revised site plans and elevations. Within 120 Da s of A reement 11/24/05 Parties to approve and execute Facilities Agreement and OPA's or other appropriate agreements for each of the develo ment ro erties Ifneeded, City Manager for Agency and City, and Superintendent for the District, agree to an extension of the initial negotiation period and prepare the written progress report re uired by Section 5(b) of the Agreement. EXlllBIT "B" 2-11 T