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RESOLUTION NO. 2014-095 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SECOND AMENDMENT TO THE EXCLUSIVE NEGOTIATING AGREEMENT BETWEEN THE CITY AND HOMEFED CORPORATION FOR THE UNIVERSITY PARK AND INNOVATION DISTRICT
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
In 2008, the City entered into Land Offer Agreements (LOAs) that will provide approximately 375 acres of land to the City for a University Park and Innovation District (UPID). Processing of the entitlements outlined in the LOAs is underway and expected to be completed later this year. In December 2012, the Council approved an Exclusive Negotiating Agreement (ENA) that allowed staff to negotiate with HomeFed to become the Master Developer to plan and develop the UPID and was extended by the City Council on September 10, 2013. The term of the existing amended ENA is coming to an end and staff is requesting an extension to the term to complete the negotiations.
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.
BOARD/COMMISSION RECOMMENDATION
Not Applicable.
DISCUSSION
On December 11, 2012 the Council approved an ENA, between the City and HomeFed, which allowed staff to negotiate with HomeFed to become the Master Developer of the UPID. The ENA created an Initial Negotiation Period of ninety (90) days with the potential for two Extended Negotiating Periods of an additional ninety (90) days each. The first extension occurred on March 7, 2013 and the second extension occurred on June 6, 2013. On September 10, 2013 the City Council approved an amendment to the original ENA extending the term by an additional two hundred and seventy (270) days.
While staff has been meeting regularly with HomeFed to negotiate the terms of a Master Development Agreement (MDA) the negotiations have taken longer than expected due to the uniqueness and complexity of the MDA. Therefore, staff is requesting that two additional ninety (90) day negotiating periods be added to the ENA that will allow the parties to complete the MDA.
DECISION-MAKER CONFLICT
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. Staff is not independently aware, and has not been informed by Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The exclusive negotiating agreement is implementing City strategy 2.1 by working with a Master Developer to plan and implement the University Park and Innovation District.
CURRENT YEAR FISCAL IMPACT
There is no fiscal impact. Existing Endowment funds will be used to pay for all staff and consultant costs associated with preparation of the appropriate agreements.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact. The work is anticipated for completion prior to June 30, 2014.
ATTACHMENTS
Attachment A - Exclusive Negotiating Agreement Extension Resolution
Attachment B - Exclusive Negotiating Agreement Amendment No. 2