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ORDINANCE NO. 3321 OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE RESTATED AND AMENDED PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN THE OTAY LAND COMPANY, LLC AND THE CITY OF CHULA VISTA FOR PROPERTIES WITHIN THE OTAY RANCH PLANNED COMMUNITY (SECOND READING AND ADOPTION)
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RECOMMENDED ACTION
Recommended Action
Council adopt the ordinance.
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SUMMARY
In 1997, the City of Chula Vista entered into a Restated and Amended Pre-Annexation Development Agreement with Otay Ranch, L.P., the property owner at that time. The agreement provided certain assurances to the City, while providing the owner with certainty in the planning process for the Otay Ranch (See Attachment 3). The original term of the agreement was 20 years. With the breakup in ownership of properties in the Otay Ranch beginning in the late 1990's, Otay Land Company, LLC purchased several large parcels that were subject to the Agreement. Since development agreements "run with the land", the Otay Land Company (OLC) became a party to the agreement for their portions of property within the original agreement.
On April 15, 2008, the City of Chula Vista entered into a Land Offer Agreement (LOA) with OLC that would allow the City of Chula Vista to accept Irrevocable Offers of Dedication (IODs) for 50 acres of developable University/Regional Technology Park land if certain entitlements are approved within the agreed upon timeframes. These entitlements, in the form of Sectional Planning Area (SPA) Plans and Tentative Maps (TMs) for OLC's Villages 8 West and 9 were approved in December 2013 and June 2014, respectively.
Exhibit C of the LOA also 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.
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 Impact Report EIR-05-01 and previously adopted Final Second Tier Environmental Impacts Reports (EIR-10-03 & EIR-10-04). Thus, no further environmental review or documentation is necessary.
BOARD/COMMISSION RECOMMENDATION
On July 23, 2014 the Planning Commission recommended Council approval (4-0-2-1) of the proposed amendment.
DISCUSSION
As directed by the approved LOA, the proposed amendments (See Attachment 2) to the previous development agreement are minor in nature and would make the following six required changes:
· Increase the term of the agreement for another 20 years;
· Increase the period of time that Tentative Maps and Permits are valid to be equal to the term of this agreement;
· Clarify the City's Growth Management Ordinance that was in effect in May 2013 applies to the project;
· Stipulate that the parties agree to the modifications to the Existing Project Approvals that were approved by the City in the form of the Villages 8 West and 9 SPA Plans and Tentative Maps;
· Clarify Section 7.5 as it relates to reimbursement for certain facilities; and,
· Clarify that all of the other terms and provisions of the development agreement shall remain unmodified and in full force and effect.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Councilmembers and has found no property holdings within 500 feet of the boundaries of the property that is subject to this action. Staff is not independently aware, nor has staff been informed by any City 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 Innovation District, as agreed to in the LOA between the City and the Otay Land Company, which will provide access to higher education for the citizens of Chula Vista and south bay.
CURRENT YEAR FISCAL IMPACT
The cost for processing the Amendment to the Restated and Amended Pre-Annexation Development Agreement was funded by a developer deposit account, and therefore, there is no Fiscal Impact to the General Fund.
ONGOING FISCAL IMPACT
There are no ongoing fiscal impacts associated with the approval of this amendment.
ATTACHMENTS
1. Exhibit C from the April 2008 Land Offer Agreement between the City of Chula Vista and the Otay Land Company, LLC.
2. Proposed First Amendment to Restated and Amended Pre-Annexation Development Agreement
3. Restated and Amended Pre-Annexation Development Agreement with Otay Ranch, L.P. dated May 12, 1997.
Staff Contact: Scott Donaghe, Principal Planner, Development Services Department