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RESOLUTION NO. 2014-123 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE MAYOR TO ENTER INTO A RESTATED AND AMENDED LAND OFFER AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND SSBT LCRE V, LLC; FOR CONVEYANCE OF 128.6 ACRES TO THE CITY FOR UNIVERSITY PARK AND INNOVATION DISTRICT DEVELOPMENT
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
The property owner (SSBT LCRE V, LLC) and the City now desire to amend the Superseded Land Offer Agreement in order to reflect the new land use plan being proposed by the owner for the property.
On May 20, 2008, the City Council approved a resolution authorizing the Mayor to enter into a Land Offer Agreement (LOA) with JPB Development, LLC (owner). Said first LOA provided for the owner agreeing to convey to the City 160 gross acres of land in exchange for City review and approval of land entitlements within specified portions of the Otay Ranch project area. The conveyed land would be for development of a facility for higher education and other compatible land uses in a configuration that would be conducive to the planning of a university campus and innovation district (formerly referred to as regional technology park).
On August 17, 2010, the City Council approved a resolution authorizing the Mayor to enter into an agreement that superseded the first LOA. The superseded LOA specifically excluded the Village 4 property from the provisions of the 2008 agreement because the owner no longer owned the Village 4 property.
Since JPB Development, LLC was no longer owner of Village 4, the superseded LOA proposed to include only property owned and controlled by JPB Development, LLC. Consistent with not owning Village 4, the 750 dwelling units that were assigned to Village 4 by the first LOA were deleted from the superseded LOA. The first LOA approved on May 20, 2008 will still be in effect and the 750 units will remain with the Village 4 property.
The superseded LOA allowed the City to accept offers for dedication for 160 gross acres within the property for development of a facility for higher education and other compatible land uses in the Otay Ranch project if certain conditions of agreement occurred.
The superseded LOA reduced the total potential dwelling units owned by SSBT (formerly JPB Development, LLC, aka OV Three Two, LLC; JJJ & K Investments Two, LLC) from 7,350 to 6,600.
The goal of this restated and amended LOA is the same as the goal the City had with approving the first LOA (2008) and superseded LOA (2010); that is, to implement the General Plan. One of the key goals of the Chula Vista General Plan is the development of a University Park and Innovation District. Successful implementation of the restated and amended LOA would complete the land acquisition necessary to accomplish this goal through the receipt by the City of 128.6 acres of developable land, potential use of 40.0 acres of Preserve land for University purposes and approximately 22.6 acres of active recreation property.
Under the terms of the restated and amended LOA, upon approval of entitlements, the property owner would convey 128.6 acres, which has been designated as a portion of the proposed "University Park and Innovation District", 40.0 acres of Preserve land that is within the university property and is proposed to become developable through a Preserve boundary adjustment and 22.6 acres of active recreation property.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Future entitlements associated with the land offer agreement will be subject to further environmental review at the time specific projects are proposed.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
The major terms of this restated and amended LOA are similar to the LOAs approved on May 20, 2008 and August 17, 2010. The terms are summarized below:
Under the terms of this restated and amended LOA, if the City approves the requested entitlements within the required timeframes, the City may accept Irrevocable Offers of Dedication (IODs) for 128.6 acres of University Park and Innovation District Land and approximately 22.6 acres of active recreation property within the Otay River Valley Regional Park.
In particular, as with the previous LOAs, the restated and amended LOA sets forth the terms under which the City may accept the offers of dedication. In order to accept the IODs, final approvals of all stated entitlements for proposed development of the ownership in Villages 3 north, a portion of 4, 8 East and 10 of the Otay Ranch Project shall be obtained. It should be noted that the City and property owners are proposing to reconfigure portions of the City General Plan/Otay Ranch General Development Plan.
Under the restated and amended LOA, the entitlements include a General Plan Amendment, Otay Ranch GDP amendment, SPA Plans, and tentative maps. The maximum potential residential unit count to be permitted for development for the property is 6,897 dwelling units for the reconfigured property under SSBT LCRE V, LLC.
In accordance with the LOA the processing of the above entitlements would be completed two years from the date the application is deemed complete.
This LOA provides SSBT LCRE V, LLC with the option of repurchasing the dedicated University Park and Innovation District property if the City (or subsequent entity) should choose to sell that portion proposed for non-university development. The repurchase right provision of the agreement takes effect upon the City’s acceptance of the University property IOD and expires 15 years after the City Council approves project entitlements. The repurchase right does not apply to the 40 acre university site or the approximately 22.6 acre active recreation property.
This LOA provides for the processing of entitlements, by SSBT LCRE V, LLC, for the conversion of industrial lands to mixed use / office and residential within Village 3, within the landfill buffer easement area.
This LOA also provides that 50 acres of land currently owned by the City be conveyed to the Owner. Although this land is currently designated for development, it is considered challenging to develop. It would be extremely expensive for the City to provide infrastructure to this site for development of any university related uses. The Owner intends on negotiating with the wildlife agencies to convey this land to them to use as open space in exchange for permission to develop on other sites currently designated for preserve. However, the City's ability to accept the IODs is not contingent on the outcome of the negotiations with the wildlife agencies.
The LOA also provides for the transfer of up to 15 percent of the residential units between Villages within the same Otay Ranch project. Any transfer greater than 15 percent or transfer of units to other Otay Ranch areas, requires approval by the Director of Development Services based upon specific requirements. Both City staff and SSBT LCRE V, LLC; believe these provisions will provide the necessary flexibility to create better Village plans.
The LOA includes a 30-day preliminary review of the conditions of approval for the final project entitlements. During this time, the applicant may review proposed conditions and requirements for the project, and may decide to stop processing the entitlements if SSBT LCRE V, LLC determines that the proposed conditions would render the project economically infeasible.
It is also important to note that the City Council and Planning Commission have full discretionary authority to consider the proposed plan changes at the time the project entitlements are presented in a public hearing, with benefit of a final EIR and staff analysis. The City has no obligation to process the requested entitlements in the time frame requested or approve the requested entitlements.
DECISION-MAKER CONFLICT
No Property within 500 feet
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 any 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 proposed action addresses the Economic Vitality and the Connected Community goals as it supports the implementation of the General Plan goal to develop a University Park and Innovation District in the context of surrounding planned neighborhoods.
CURRENT YEAR FISCAL IMPACT
The applicant would pay for all costs associated with processing the terms of this LOA.
ONGOING FISCAL IMPACT
The applicant would pay for all costs related to processing entitlements related to implementing the terms of this LOA. As part of entitlement process the applicant will be preparing a fiscal impact analysis of proposed development scenarios being considered under the entitlements. The analysis will provide for further detail review and evaluation of the net fiscal impacts to the City. City decision makers and elected officials will have the opportunity to review and evaluate the specifics of ongoing fiscal impacts once available.
ATTACHMENTS
Resolution
Draft Land Offer Agreement (including exhibits)
Staff Contact: Joe Gamble, Landscape Architect