HomeMy WebLinkAbout2010/12/07 Item 10
CITY COUNCIL
AGENDA STATEMENT
~(ff:.. CITY OF
.~ ~CHULAVISTA
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
4/5THS VOTE:
Item No.: \0
Meeting Date: 12/07110
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A LETTER OF INTENT
BETWEEN THE CITY OF CHULA VISTA, THE CITY OF
NATIONAL CITY, AND THE NATIONAL CITY COMMUNITY
DEVELOPMENT COMMISSION REGARDING THE
PROCESSING OF DOCUMENTS AND AGREEMENTS FOR A
PROPOSED CITY BOUNDARY R GANIZA nON
ASSISTANT CITY MANAG EVELOPMENT SERVICES
DIRECTOR
ClTY ATTOR"';
CITY MANAGER
YES
NO X
~
BACKGROUND
Sudberry Properties is currently processing entitlement applications to constmct a shopping center
located at the site of the former Harbor Drive-in theatre. The site is comprised of multiple parcels
that are located within the jurisdictions of Chula Vista and National City. Sudberry wishes to
develop the 27 acre site as one project, and as such, is currently processing entitlements for the
project through both Chula Vista and National City.
Chula Vista and National City have been working in a cooperative manner in the planning and
development of the site, and each have the power to adopt and enforce land use regulations, and
entitlements, as well as administer and enforce building and other development COlleS. A
Memorandum of Understanding (MOU) was approved on April 28, 2009 that clarified the roles of
each city with regard to discretionary permit processing, building and fire code compliance,
environmental review, impacts fees, schedule, financing of public inlprovements, and other related
topics. Although the MOU expired on April 28, 2010, the two cities are working cooperatively and
the project is expected to go forward for consideration in early 2011.
The MOU depicted a proposed project configuration with roughly equal commercial square
footage in each city. Since the building square footage in each city was to be the same,
anticipated sales tax revenues based on square footage were anticipated to be equivalent The
design of the Project has changed from that contemplated by the City at the time the MOU was
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Date, Item No.: \19
Meeting Date: 12107/10
Page 2 of 3
approved in 2009, and as now proposed, would result in a decrease in the commercial square-
footage originally anticipated within the City of Chula Vista.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the
California Environmental Quality Act (CEQA) and has determined that the activity is not a
"Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to
Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no
environmental review is necessary. The project itself will be subject to full environmental review
once submitted.
ANAL YSIS
The proposed Letter of Intent (LOI) allows for the continued processing of the pending Gateway
Development Project in accordance with the terms of the expired Memorandum of
Understanding ("MOU") between the City of Chula Vista and the City of National City, for an
additional 18 months. The LOI also calls for the cities to resume previously stalled negotiations
for reorganization of the jurisdictional boundary between Chula Vista and National City.
In 2006, the cities began work on a proposed boundary reorganization project known as the
"Straight-lining Project" ("Reorganization"). The Reorganization would result in the annexation
and detachment of lands between Chula Vista and National City in order to straighten the uneven
boundary line, for the following stated reasons: i) public safety and citizen recognition, ii)
regional and intergovernmental cooperation, and iii) shared revenue and shared investment in
potential development. Work on the reorganization was subsequently suspended in 2009 when
the MOU for the Gateway Project processing was entered into.
The changes to the Sudberry project highlight the complexity of economic and services issues
that arise as a result of the cities' uneven boundary line. This LOI offers the opportunity to
address the larger issue of the reorganization and also the parity contemplated in the MOU when
originally agreed to. As part of the reorganization, the cities will negotiate a tax sharing
agreement to ensure the reorganization is revenue neutral. If the reorganization does not occur,
the cities will negotiate an alternative tax sharing agreement with respect to the GatewflY Project
to provide for an equitable sharing of net revenue from the Project.
RECOMMENDATION
That the City Council adopt the resolution approving the attached LOr.
BOARDS/COMMISSION RECOMMENDATION N/A.
J :\Planning\SteveXP\councilagenda.statement.LOI.Sudbury .dot
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Date, Item No.: to
Meeting Date: 12/07/10
Page 3 of3
DECISION-MAKER CONFLICTS
Staff has reviewed the property holdings of the City Council and has found no property holdings
within 500 feet of the boundaries of the property which is the subject of this action.
CURRENT YEAR FISCAL IMPACT
There will be no net fiscal impact to the General Flmd from this agreement. All costs associated
with processing of the project will be paid by the applicant.
ON GOING FISCAL IMPACT
The project, once constructed, will result in additional sales tax revenues for the City of Chula
Vista.
ATTACHMENTS
1. Letter ofIntent
prepared by: Steve Power, Alep Principal Planner, Planning & Building Dept.
J : \P Ian n in g\S teveXP\co un c iJ agen da.sta telTIen t. LO!. S u db ury . dot
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COUNCIL RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A LETTER OF INTENT
BETWEEN THE CITY OF CHULA VISTA, THE CITY OF
NATIONAL CITY, AND THE NATIONAL CITY
COMMUNITY DEVELOPMENT COMMISSION REGARDING
THE PROCESSING OF DOCUMENTS AND AGREEMENTS
FOR A PROPOSED CITY BOUNDARY REORGANIZATION
WHEREAS, on April 28, 2009, the City entereu into a Memorandum of Ulluerstanding
CMOlT") with the City of National City and NSCDl No 1, LLC ("Sudberry") regaruing the
processing of entitlements for the Sudberry "Gateway" Project, a development project comprised
of multiple parcels within the Jurisdictions of Chura Vista and National City, approved by the
City Council by Resolution No. 2009-097; and
WHEREAS, Chura Vista and National City ("Cities") previously began negotiations of a
"straight-line" boundary adjustment that would adjust the uneven jurisdiction boundary of the
Cities to a straight line along the Sweetwater River Charmel, which negotiations were suspenueu
a the time the MOU was approved; and
WHEREAS, the configuration of the proposed Project has changed from that reviewed at
the time the City approved the MOU; and
WHEREAS, the Cities wish to continue to cooperate in the planmng and development of
the Project, and each has the power to adopt and enforce land use regulations, and entitlements,
and administer anu enforce municipal codes within their respective jurisuictions; and
WHEREAS, in reviewing the Project, the Cities recognize the cont1l1ued complexity
associated with the current uneven boundary between the Cities; and
WHEREAS, the City Council finds that the proposed Letter of Intent between the City of
Chula Vista, the City of National City, and the National City Community Development
Commission is in the best interest of the City of Chura Vista, establishing a process for continued
negotiation of a potential reorganization of Jurisdictional boundaries and ensuring equitable
economic treatments of each jurisdiction; and
WHEREAS, in September 2010, the Citv received an awaru from the US Department of
Energy 111 the amount of $972,000 for the environmental, sustainable, energy and initial land use
planning and entitlements for the University Park and Research Center; and
WHEREAS, the Development Services Director has reviewed the proposed actiVity in
compliance with the Califomia Environmental Quality Act (CEQA) and has detennined that the
activity is not a "Project" as defined under Section 15378 of the State CEQA Guiuelines;
therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, no environmental
review is necessary anu the reorganization will be subject to full environmental review.
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NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Chula
Vista hereby approves the Letter of Intent between the City of Chula Vista, the City of National
City, and the National City Community Development Commission, regarding the continued
processing of entitlements for the construction of the Gateway Shopping Center located at the
Northern Terminus of Broadway (National City Blvd ), and regarding the negotiation and
processing of necessary reviews and agreements for the proposed jurisdictional boundary
reorganization, a copy of which shall be kept on file in the office of the City Clerk.
Presented by
Gary Halbert, P.E, AICP
Assistant City Manager/Development Services Director
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Letter ofIntent
For Proposed Reorganization Processing Agreement
between the City of Chula Vista
and the City of National City and,
the Community Development Commission
of the City of National City
Commonly referred to as the Straight Lining Project
This Letter of Intent is between the City of National City ("National City"), the
City ofChula Vista ("Chula Vista") (collectively, the "Cities"), and the Community
Development Commission of the City of National City ("CDC") to address the proposed
straightlining of the Cities' uneven common boundary line running approximately east
and west along the Sweetwater River Channel ("Channel") between Interstate 5 on the
west and Interstate 805 on the east.
WHEREAS, Chula Vista and National City previously entered into discussions
for a proposed project known as the "Straight-lining Project" ("Reorganization") which
would result in the annexation and detachment oflands between ChuIa Vista and
National City in order to straighten the uneven boundary line, for the following stated
reasons: i) public safety and citizen recognition, ii) regional and intergovernmental
cooperation, and iii) shared revenue and shared investment in potential development.
Preliminary engineering work began on the Reorganization in 2006 and was subsequently
suspended in 2009; and
WHEREAS, on or about April 28, 2009, Chula Vista, National City, the CDC and
NCSDI No, I, LLC, a California limited liability corporation ("Sudberry") entered into a
Memorandum of Understanding ("MOU") to provide for the development of the
Gateway Development project as a single project with parcels in each City, as identified
in the MOU, which MOU has now expired; and
WHEREAS, the Gateway Development project site is approximately 25.71 acres,
of which 13.60 is located within National City and 12.11 acres is located within Chula
Vista; and
WHEREAS, the MOU contemplated cooperation between the Cities and the CDC
in the review and processing of the Gateway Development based upon a proposed project
configuration, with roughly equal total square footage of development shown in each
city. At that time, the developer was seeking commercial tenants, however final
commitments had not been obtained. Currently, proposed changes in the project may
result in a decrease in commercial development contemplated within the jurisdictional
limits of Chula Vista, and
WHEREAS, in recognition of environmental impacts of the project occurring
. predominately in National City, the MOU provided for National City to be the lead
agency for purposes of environmental review of the proposed project; and
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WHEREAS, National City and the CDC have both committed financial resources
to assist in bringing the Gateway Development to fruition. These commitments have been
articulated in a proposed Development and Disposition Agreement, and include such
terms as sale of a CDC owned site to developer and financial assistance amounting to
$2.4 million for the construction of off-site improvements.
The parties seek to: I) extend the MOD so it can continue to govern the
processing of the Gateway Development project and address the change in the Gateway
Development proposal; and, 2) straighten the boundary between the Cities as follows:
A) The Cities will continue project review and processing of the Gateway
Development as contemplated in the MOD and extend the MOD for 18 months.
B) The Cities will works towards entering into a Boundary Reorganization
Agreement, to be brought forward for consideration by the respective legislative bodies
of the Cities by December 31, 2013, to continue with the Reorganization as originally
contemplated and depicted on the attached reference exhibit on substantially the
following terms:
o Each City will be responsible for preparation and processing of required
documents, including municipal services review, reports and
environmental review for areas to be annexed into its jurisdiction.
o The Cities will work cooperatively to provide timely and complete
documents and information needed by the annexing City in its preparation
of materials for Reorganization.
o The Agreement will include a schedule to ensure the timely delivery of
information and preparation, review and approval of necessary documents
for the Reorganization.
o The Cities will negotiate a Tax Sharing Agreement in order to make the
Reorganization revenue neutral, i.e. neither city will receive less sales tax
revenue than a base line year, to be determined, with annual adjustments
for inflation and consumer price indexing, to be more specifically
determined by agreed upon formula and process; provided, however, that
the CDC will be entitled to continue to receive tax increment generated
within the portion of the National City Redevelopment Project area to be
annexed into Chula Vista, until the Redevelopment Plan expiration date.
o If the Cities are unable to come to agreement to conclude the proposed
Reorganiziltion by December 31, 2013, then, the Cities agree to negotiate
for an alternative Tax Sharing Agreement applicable to the Gateway
Development Project, as approved. Any such negotiations will strive to
achieve an equitable sharing of the net revenue, recognizing there are
multiple variables that may need to be accounted for in any future formula
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and determinations of net revenue, such as contribution towards
infrastructure, investment, and relocation of businesses from one
jurisdiction to another. These variables are not exhaustive.
IN WITNESS THEREOF, the parties have executed this Letter of Intent on the 7'h day of
December, 2010.
CITY OF NATIONAL CITY
CITY OF CHULA VISTA
Cheryl Cox, Mayor
Ron Morrison, Mayor
COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF
NATIONAL CITY
Ron Morrison, Chairman
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CHULA VISTA / NATIONAL CITY REORGANIZATION