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HomeMy WebLinkAboutAgenda Statement 1988/08/02 Item 11 COUNCIL AGENDA STATEMENT . ITEM TITLE: a) Item 11 Meeting Date 8/2/88 Resolution /31/5 Approving a Master Agreement with EastLake Development Company for acquisition, construction, and fundi ng of Tel egraph Canyon Road/Otay Lakes Road Improvements b) Resolution Approving an Agreement with EastLake Development Company for the mai ntenance of Tel egraph Canyon Channel rt;Y (4/5ths Vote: Yes No X ) Director of Public Works City ManagerJ'~ A condition of the EastLake "Development Agreement" and the Public Facilities Financing Plan (PFFP) was that, after a certain number of building permits had been issued, no more could be issued until construction had begun on Telegraph Canyon RoadjOtay Lakes Road between EastLake and Paseo Ladera. EastLake is at that poi nt now and the purpose of these agreements are to allo\'/ EastLake to conti nue development based on thei r commitments for constructi on of the road ~d drainage channel. ~ECOMMENDATION: That Council approve the resolutions approving agreements with EastLake for the construction of the road and channel and for maintenance of the channel. SUBMITTED BY: REVIEWED BY: BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: At thi s stage of development, EastLake has been stopped from any further building permits until two projects are started as follows: l. Widen Telegraph Canyon Road to a four-lane major status between 1-805 and Otay Lakes Road. 2. Improve shoulders of Otay Lakes Road between Telegraph Canyon Road and EastLake Parkway. EastLake is ready to begin construction on the portion of the project between EastLake and Rutgers. However, instead of just widening the shoulders, they propose to build the street to a six-lane prime arterial standard which would also necessitate the construction of a naturalized drainage channel. It was thought wasteful to spend the time to improve shoulders on the road when near- term development would necessitate more lanes. . . The agreements before Council are to construct Tel egraph Canyon Road/Otay Lakes Road between EastLake and 1900 ft. east of Paseo Ladera to a prime arterial six-lane facility. The project will be constructed in three phases. Phase I - the porti on between EastLake and Rutgers Avenue; Phase I I - the portion between Apache Drive and 1900 ft. east of Paseo Ladera; and Phase III - the mi dd1 e porti on between Rutgers and Apache Dri ve. The mi dd1 e porti on is primarily the responsibil ity of the City using funds from Charter Point and the Navy housing project to build a four-lane facility. However, we plan to build a six-lane facility along with drainage improvements through Phase III; therefore, DIF funds and EastLake funds will be contributed towards that project. Page 2, Item 11 Meeting Date 8/2/88 Si nce the enti re project woul d not be compl eted in one phase, the attached agreement is to provide the mechanism for the construction to be completed and for the release of building permits on a phased basis over the period of the construction. The agreement also provides that the City will use its best efforts in creating an assessment district to assist EastLake in funding a portion of the project. However, the Council is not agreeing at this time to establish that di stri ct. If the Counci 1 shoul d approve an assessment di stri ct at a future date for either the road or the drainage district, it would only fall on the new properties in The Greens and some of the drainage cost could be attributed . the busi ness park. None of the assessment charges woul d rel ate to the lls and Shores residential area. Furthermore, since the facility being constructed is a Development Impact Fee (DIF) facility, the maximum assessment per single-family dwelling would most likely be equivalent to the DIF fee or $2,100 per unit charge for the road project. An additional charge would be attributable for the drainage district. The channel construction will be financed by a reimbursement district whereby EastLake will advance the money to construct the channel and be reimbursed as people receive building permits within the drainage basin. Again, depending on a later decision to be made by the Council, the portion of the project that is the responsibi 1 i ty of property in EastLake may be funded by an assessment di stri ct. Major elements of the agreement are as follows: 1. EastLake will construct and pay for the construction of Phases I and II of both the road facility and the channel facility. 2. EastLake will assist the City in constructing the portion of Phase III between Apache Drive and Rutgers Avenue (in front of Charter Point and the Navy hous i ng). 3. The City will give credits to EastLake for building permits in the DIF program within EastLake. The City will reimburse EastLake at a time determined by the City as money becomes avai 1 ab1 e the excess amount that EastLake expended beyond their responsi bi 1 ity. . - /3'1/6 . 5. . . Page 3, Item 11 Meeting Date 8/2/88 Before any further building permits will be released for EastLake, the following has to occur: a. The parties enter into this agreement. b. The contract for Phase I of the transportation improvements is awarded and construction commenced. c. The requi red bonds for security for the gradi ng and improvements included in Phases I and II are submitted to the satisfaction of the City Engi neer. d. The deposit of probable compensation if required is posted with the Superior Court for the eminent domain action for the right-of-way for Phase I. e. A cash deposit to be placed in a City trust fund or equivalent security acceptable to the City for the anticipated right-of-way cost for Phase II. f. Security acceptance to the City for the cost of construction of Phase III drainage improvements and anticipated right-of-way costs shall be delivered to the City. g. The drainage maintenance agreement is approved. 6. The building permits for residential and non-residential construction in EastLake will be released as follows: a. Upon the commencement of construction of Phase I, the remaining 200+ building permits in the Hills and Shores will be released and an additional 318,000 sq. ft. of buil ding permits for the Business Park will be released. b. Upon the openi ng of two 1 anes in each di recti on of Otay Lakes Road for Phase I and the start of construction for Phase II, an additional 159,000 sq. ft. of industrial development in the Business Park will be authorized. c. Upon the opening of a minimum of two lanes in each direction for Phase II, an additional 159,000 sq. ft. of industrial development will be authorized plus the residential development authorized in the Village Center as provided in the EastLake SPA Plan will be authorized. Copies of the agreement, exhibit showing the phases, and a schedule are attached for your review. /L3 7/~-- -. -- Page 4, Item 11 Meeting Date 8/2/88 . Drainage Maintenance Agreement Because of the construction of the road to six lanes, major encroachments into the existing natural drainage courses owned by United Enterprise will be required. Because of the encroachment, it was deemed necessary to construct the channel along the entire roadway segment. It is proposed that the channel be constructed as a natural channel per the policy adopted by the Council in 1976 and from further requi rements of the Corps of Engi neers and the State Department of Fi sh & Game in order to get permi ts for thi s project. Because the project is being constructed as a natural channel and not within the City's standards for concrete-l i ned channel s, the City staff proposes that a maintenance mechanism be established to pay for the maintenance cost. . . Under this agreement, the City will be primarily responsible for the maintenance of the channel for the entire length at the cost of EastLake per the agreement. Major elements of the agreement are as follows: 1. For a peri od of one year from the date of compl eti on of the channel, EastLake will maintain the channel at its sole expense. For each of the next two years after each phase of the channel is completed (or until the maintenance district is formed), EastLake shall pay to the City any cost the City has expended in maintaining the channel. EastLake shall also post a letter of credit in the amount of $500,000 in the interest of the City for the following purpose. At the end of three years, should the maintenance district not be established by the Council, the City shall foreclose on the letter of credit and use the proceedings from the $500,000 to maintain the channel in perpetuity or until a maintenance district is formed. 2. 4. Should EastLake remit the $500,000 letter of credit to the City and should at a later date a maintenance district be formed, then the City agrees to return any unused portions of the cash, including interest, to the EastLake Development Company. Staff members from the City Attorney's Office, Public Works Department, and Planning Department have reviewed these proposals and find them acceptable and recommend that these agreements be approved. FISCAL IMPACT: All City costs associ ated with thi s project are proposed to be reimbursed from Development Impact Fees or Assessment Di stri ct proceeds. Consequently, no long-term fiscal impact on the City is foreseen. JPL:nr/HX006, HX007, HY037 WPC 3884E - /3 7 /0 COUNCIL AGENDA STATEMENT . I tern 11 Meeting Date 8/2/88 ITEM TITLE: a) Resolution Approving a Master Agreement with EastLake Development Company for acquisition, construction, and funding of Telegraph Canyon Road/Otay Lakes Road Improvements b) Resolution/37/~ Approving an Agreement with EastLake Development Company for the mai ntenance of Tel egraph Canyon Channe 1 ~ SUBMITTED BY: Director of Public Works City Managery ~ A conditi on of the EastLake "Development Agreement" and the Publ i c Faci 1 iti es Financing Plan (PFFP) was that, after a certain number of building permits had been issued, no more could be issued until construction had begun on Telegraph Canyon Road/Otay Lakes Road between EastLake and Paseo Ladera. EastLake is at that point now and the purpose of these agreements are to allow EastLake to continue development based on their commitments for construction of the road td drainage channel. COMMENDATION: That Council approve the resolutions approving agreements with EastLake for the construction of the road and channel and for maintenance of the channel. REVIEWED BY: (4/5ths Vote: Yes No X ) BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: At thi s stage of development, EastLake has been stopped from any further building permits until two projects are started as follows: 1. Widen Telegraph Canyon Road to a four-lane major status between 1-805 and Otay Lakes Road. 2. Improve shoul ders of Otay Lakes Road between Tel egraph Canyon Road and tastLake Parkway. EastLake is ready to begin construction on the portion of the project between EastLake and Rutgers. However, instead of just widening the shoulders, they propose to build the street to a six-lane prime arterial standard which would also necessitate the construction of a naturalized drainage channel. It \vas thought wasteful to spend the time to improve shoulders on the road when near- term development would necessitate more lanes. . Page 2, Item 11 .... Meeting Date 8/2/88 ~e agreements before Council are to construct Telegraph Canyon Road/Otay Lakes Road between EastLake and 1900 ft. east of Paseo Ladera to a prime arterial six-lane facility. The project will be constructed in three phases. Phase I - the porti on between EastLake and Rutgers Avenue; Phase II _ the portion between Apache Drive and 1900 ft. east of Paseo Ladera; and Phase III - the mi ddl e porti on between Rutgers and Apache Dri ve. The mi ddl e porti on is primarily the responsibil ity of the City using funds from Charter Point and the Navy housing project to build a four-lane facility. However, we plan to build a six-lane facility along with drainage improvements through Phase III; therefore, DIF funds and EastLake funds will be contributed towards that project. Since the entire project would not be completed in one phase, the attached agreement is to provide the mechanism for the construction to be completed and for the release of building permits on a phased basis over the period of the construction. The agreement also provides that the City will use its best efforts in creating an assessment district to assist EastLake in funding a portion of the project. HOI'Iever, the Council is not agreeing at this time to establish that district. If the Council should approve an assessment district at a future date for ei ther the road or the drai nage di stri ct, it waul d only fall on the new properties in The Greens and some of the drainage cost could be attributed _the business park. None of the assessment charges would relate to the lls and Shores residential area. Furthermore, since the facility being nstructed is a Development Impact Fee (DIF) facility, the maximum assessment per single-family dwelling \'lOuld most likely be equivalent to the DIF fee or $2,100 per unit charge for the road project. An additional charge would be attributable for the drainage district. The channel construction will be financed by a reimbursement district whereby EastLake will advance the money to construct the channel and be reimbursed as people receive building permits within the drainage basin. Again, depending on a later decision to be made by the Council, the portion of the project that is the responsibil ity of property in EastLake may be funded by an assessment di stri ct. Major elements of the agreement are as follows: 1. EastLake will construct and pay for the construction of Phases I and II of ~oth the road facility and the channel facility. 2. EastLake will assist the City in constructing the portion of Phase III between Apache Drive and Rutgers Avenue (in front of Charter Point and the Navy housing). 3. The City will give credits to EastLake for building permits in the DIF program within EastLake. . The City will reimburse EastLake at a time determined by the City as money becomes ava il ab 1 e the excess amount that EastLake expended beyond thei r responsibil ity. /31/~ . 5. Page 3, Item 11 Meeting Date 8/2/88 Before any further buil di ng permi ts wi 11 be rel eased for EastLake, the following has to occur: a. The parties enter into this agreement. b. The contract for Phase I of the transportation improvements is awarded and construction commenced. c. The requi red bonds for securi ty for the gradi ng and improvements included in Phases I and II are submitted to the satisfaction of the City Engineer. d. The deposit of probable compensation if required is posted with the Superior Court for the eminent domain action for the right-of-way for Phase I. e. A cash deposit to be placed in a City trust fund or equivalent security acceptable to the City for the anticipated right-of-way cost for Phase II. f. Security acceptance to the City for the cost of construction of Phase III drainage improvements and anticipated right-of-way costs shall be delivered to the City. . g. The drainage maintenance agreement is approved. 6. The building permits for residential and non-residential construction in EastLake will be released as follows: a. Upon the commencement of construction of Phase I, the remaining 200+ building permits in the Hills and Shores will be released and an additional 318,000 sq. ft. of building permits for the Business Park will be released. b. Upon the openi ng of two 1 anes in each di recti on of Otay Lakes Road for Phase I and the start of construction for Phase II, an additional 159,000 sq. ft. of industrial development in the Business Park will be authorized. c. Upon the opening of a mlnlmUm of two lanes in each direction for Phase II, an additional 159,000 sq. ft. of industrial development will be authorized plus the residential development authorized in the Village Center as provided in the EastLake SPA Plan will be authorized. Copies of the agreement, exhibit showing the phases, and a schedule are attached for your review. . /3 7/ ~ . . ~ainage Maintenance Agreement Page 4, Item 11 Meeting Date 8/2/88 Because of the construction of the road to six lanes, major encroachments into the existing natural drainage courses owned by United Enterprise will be required. Because of the encroachment, it was deemed necessary to construct the channel along the entire roadway segment. It is proposed that the channel be constructed as a natural channel per the pol icy adopted by the Counci 1 in 1976 and from further requirements of the Corps of Engineers and the State Department of Fish & Game in order to get permits for this project. Because the project is bei ng constructed as a natural channel and not wi thi n the City'S standards for concrete-l i ned channel s, the City staff proposes that a maintenance mechanism be established to pay for the maintenance cost. Under this agreement, the City will be primarily responsible for the maintenance of the channel for the entire length at the cost of EastLake per the agreement. Major elements of the agreement are as follows: 1. For a peri od of one year from the date of compl eti on of the channel, EastLake will maintain the channel at its sole expense. 2. For each of the next two years after each phase of the channel is completed (or until the maintenance district is formed), EastLake shall pay to the City any cost the City has expended in maintaining the channel. EastLake shall also post a letter of credit in the amount of $500,000 in the interest of the City for the following purpose. At the end of three years, should the maintenance district not be established by the Council, the City shall foreclose on the 1 etter of credit and use the proceedi ngs from the $500,000 to maintain the channel in perpetuity or until a maintenance district is formed. 4. Should EastLake remit the $500,000 letter of credit to the City and should at a later date a maintenance district be formed, then the City agrees to return any unused portions of the cash, including interest, to the EastLake Development Company. Staff members from the City Attorney's Office, Public Works Department, and Planning Department have reviewed these proposals and find them acceptable and recommend that these agreements be approved. FISCAL IMPACT: All Ci ty costs associ ated wi th thi s project are proposed to be reimbursed from Development Impact Fees or Assessment Di stri ct proceeds. Consequently, no long-term fiscal impact on the City is foreseen. JPL:nr/HX006, HX007, HY037 I1PC 3884E b tl13 Citj' Chula VistJ, ~,. ::f..-:;rnia Dated 1=S 7 / 1_ . Page 2, Item 2~ Meeting Date 7IW1J8- The proposed prezoni ng and subsequent annexati on of the property, and its incorporation into Lots 13, 14, 15 and 44 of the EastLake Business Center, will result in larger, rectangular industrial lots more receptive to development, and is consistent with the existing and proposed pattern of land use in the area. We therefore recommend approval of the request. FISCAL IMPACT: Not applicable. WPC 5379P . . Ce;!i{ornia by the City of Chula ViS'l:::, Ci~:i;or Dated -;/4 th..[- Dated