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HomeMy WebLinkAboutAgenda Statement 1988/02/16 Item 6COUNCIL AGENDA STATEMENT • Item h Meeting Date 2/16/88 ITEM TITLE: Resolution ~~ ~~ ~ Approving an assignment of rights and release from liability with the Darling-Delaware, Inc. and Rio Otay Ventures concerning the subdivision agreement for the development of 40 acres in the Otay Valley Road Redevelopment Project Area SUBMITTED BY: Community Development Directo REVIEWED BY: City Manager ~~ (~ 4/5ths Vote: Yes No % } v The Darling-Delaware Company formerly owned the Omar Rendering site comprising 40 acres adjacent to Otay Valley Road just east of Brandywine Avenue in the Otay Vaiiey Road Redevelopment Project Area. This site was sold to a development group, Rio Otay Ventures for the purpose of subdivision and development into an industrial park. Although the City had approved subdivision plans for this parcel, questions concerning the environmental safety of the site from the State Department of Health Services, Hazardous Waste Division, raised uncertainty as to whether development of the site could proceed. Subsequently, the owners of the site filed a claim against the City and the previous owners to recover their development costs and damages. • Recently, Darling-Delaware repurchased the site with the proviso that they be allowed to assume all of the obligations under the subdivision agreement with the City and the former owners agree not to bring any claim against the City which would only deter the resolution of environmental questions and expeditious development of the site. The attached agreement allows Darling-Delaware to assume the former owners' responsibilities under the subdivision improvement agreement, and releases the City and Agency from liability from the former owners. RECOMMENDATION: That the Council approve the Assignment of Rights and Release from Liability Agreement and authorize the Mayor to execute said agreement. BOARDSlCOMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: A hazardous waste landfill operation was operated on the Omar Rendering piant until July 1978. Hazardous waste pits were relocated at that time to the northwest corner of the site. Both the Regional Water Quality Control Board and State Department of Health Services were satisfied the closure and relocation was conducted in compliance with closure requirements in June 1981. Concurrent with the relocation of the pits, Darling-Delaware Corporation, then owners of the site, filed a tentative subdivision map with the City. The site was later sold to Rio Otay Industrial Ventures. Rio Otay applied for a final • subdivision map and began site improvement work in 1986. • • • Page 2, Item 6 !tooting Date 2/16/88 Earlier in 1987, staff learned that representatives from the State Department of Health, Hazardous Waste Division, were interested in additional information concerning the relocation of the hazardous waste pits. Subsequent to discussions with the current and former owners of the site, City staff, County staff and representatives from the Regional Water Quality Control Board, the State determined that additional information would be necessary concerning the relocation of the hazardous waste pits. This, in effect, precluded development on the site. In July 1987, Rio Otay filed a claim against the City due, in part, to their inability to develop the site. Subsequent to the filing of the claim, Darling-Delaware repurchased the site with the provisos that the City allow them to take over all of the former owners' obligations under the subdivision improvement agreement with the City, and that the former owners agree not to pursue any claims against the City or Redevelopment Agency. The agreement, entitled the Assignment of Rights and Release from Liability, is attached to this agenda statement for approval by the City Council. Darling-Delaware is fully cooperating with State officials to expedite the collection and processing of additional information so that development on this site may proceed as expeditiously as possible. Darling-Delaware has agreed to provide the State with a plan for the collection of additional information pursuant to State approved guidelines. The owners have also agreed to fund additional State staff to review the work plan. FISCAL Il1PACT: The 40 acres of land currently owned by the Darling-Delaware Company, Inc., lies within the Otay Valley Road Redevelopment Project Area. This land is currently vacant. The development of parcels on this property will provide tax increments which are 100 percent accruable to the Redevelopment Agency. It is anticipated that upwards of $20 million in improvements could be realized from the development of the total area which would provide $200,000 a year in tax increments to the Agency. WPC 3385H j b ti~L City Council of Chula Vis*~, Caiirornia Dated f l ~~ -; _: /