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A. ORDINANCE NO. 3333 OF THE CITY OF CHULA VISTA APPROVING A FIRST AMENDMENT TO THE RESTATED AND AMENDED PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN SSBT LCRE V, LLC AND THE CITY OF CHULA VISTA (FORMER SNMB DEVELOPMENT AGREEMENT) (SECOND READING AND ADOPTION)
B. ORDINANCE NO. 3334 OF THE CITY OF CHULA VISTA APPROVING A FIRST AMENDMENT TO THE RESTATED AND AMENDED PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN SSBT LCRE V, LLC AND THE CITY OF CHULA VISTA (FORMER JEWELS OF CHARITY DEVELOPMENT AGREEMENT) (SECOND READING AND ADOPTION)
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RECOMMENDED ACTION
Recommended Action
Council adopt the ordinances.
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SUMMARY
The applicant, SSBT LCRE V, LLC (SSBT), entered into a Land Offer Agreement (LOA) with the City of Chula Vista on July 8, 2014. One of the provisions of the LOA, as given in Exhibit K of the LOA (Attachment 1 of this report), was to amend the existing development agreements for the project. Action on this item completes the City's obligations under the LOA.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the proposed project was adequately covered in Final Environmental Impacts Report (EIR-13-01). Thus, no further environmental review or documentation is required.
BOARD/COMMISSION RECOMMENDATION
Planning Commission recommended City Council adopt ordinance for first reading.
DISCUSSION
In 1997, the City of Chula Vista entered into two Amended and Restated Pre-Annexation Development Agreements (one with Jewels of Charity and one with SNMB, LTD.). Together, the two agreements encompass the properties for which entitlements are currently being sought. The agreements provided certain assurances to the City, while providing the owners with certainty in the planning process for the Otay Ranch (See Attachments 4 and 5). The original term of the agreements was 20 years. With the breakup in ownership of properties in the Otay Ranch beginning in the late 1990's, SSBT acquired title to several large parcels that were subject to the agreements. Since development agreements "run with the land", SSBT became a party to the agreements for their portions of property within the original agreements.
On May 20, 2008, the City of Chula Vista entered into a LOA with JJJ&K Investment Two, LLC et al. that would allow the City of Chula Vista to accept Irrevocable Offers of Dedication (IODs) for 160 acres of University/Regional Technology Park land if certain entitlements are approved within the agreed upon timeframes. 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. On July 8, 2014, the City Council approved a Restated and Amended LOA that further modified the 2010 LOA to reflect a modified land plan related to the geographic areas of Villages Three North and a Portion of Four, Eight East, and Ten. Entitlements, in the form of Sectional Planning Area (SPA) Plans and Tentative Maps (TMs) for SSBT Villages 3 North and a Portion of Four, Eight East, and Ten are the subject of tonight's meeting as well.
Exhibit K of the LOA, stipulated certain amendments to the Development Agreement that needed to be approved in order to assume the benefits described above. These amendments are presented for action in this report and are summarized below.
As directed by the approved LOA, the proposed amendments (See Attachments 2 and 3) to the previous Agreements are minor in nature and would make the following five required changes:
· Increase the term of the Agreement for an additional 20 years;
· Increase the period of time that TMs and Permits are valid for a period of time equal to the term of the Agreements;
· Clarify the applicability of the City's Growth Management Ordinance on the project;
· Stipulate that the parties agree to the modifications, as may be applicable, to the Existing Project Approvals that were approved by the City in the form of the Villages Three North and a Portion of Four, Eight East, and Ten SPA Plans and TMs; and
· Clarify Section 7.5 as it relates to reimbursement for the oversizing of facilities;
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 any councilmember, 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. This project supports the Economic Vitality goal, particularly City Initiative 2.1.3 (Promote and support development of quality master-planned communities) as it relates to development within portions of the Otay Ranch. These amendments will also allow the City the opportunity to accept lands for the University Park and Innovation District, as agreed to in the LOA between the City and SSBT, which will provide access to higher education for the citizens of Chula Vista and south bay.
CURRENT YEAR FISCAL IMPACT
The current fiscal year is anticipated to be -$33,500 based on the fiscal impact analysis. This analysis assumed that 200 homes would be built in the first year. The proposed $120 per unit "fiscal fee" paid by the developer would bring this deficit down to $24,000.
ONGOING FISCAL IMPACT
The project has negative fiscal impacts for 9 of the first 10 years which are offset by the $120 per unit "fiscal fee." Ongoing fiscal impacts after year 10 are positive.
ATTACHMENTS
1. Exhibit K from the July 8, 2014 Land Offer Agreement between the City of Chula Vista and SSBT.
2. Proposed Amendment to Amended and Restated Pre-Annexation Development Agreement (Jewels of Charity)
3. Proposed Amendment to Amended and Restated Pre-Annexation Development Agreement (SNMB, LTD)
4. Restated and Amended Pre-Annexation Development Agreement with Jewels of Charity dated May 12, 1997.
5. Restated and Amended Pre-Annexation Development Agreement with SNMB, LTD dated May 12, 1997.
Staff Contact: Joe Gamble, Project Manager