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RESOLUTION NO. 2014-190 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AND NO. 2014-008 OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A CRA ADVANCE FUNDING AGREEMENT BETWEEN THE CITY AND ROHR, INC., OPERATING AS GOODRICH AEROSTRUCTURES AND APPROPRIATING $250,000 TO THE OTHER EXPENSES CATEGORY OF THE NON-DEPARTMENTAL BUDGET (4/5 VOTE REQUIRED)
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
In 2010, Rohr and the Chula Vista Redevelopment Agency (Agency) entered into a Cooperative Remediation Agreement (CRA) to facilitate the remediation of property located within the Chula Vista Bayfront Master Plan. In exchange for Rohr's cooperation the Agency agreed to provide financial support, in the form of annual payments, to Rohr for the development and implementation of a remedial action plan and other related purposes. The proposed CRA Advance Funding Agreement is to advance Rohr their next annual payment, in the amount of $250,000 dollars, so that remediation activity can be concluded allowing the exchange of lands between North C.V. Waterfront L.P. (Pacifica) and the San Diego Unified Port District (Port District) by December 15, 2014. The City will be repaid the advanced funds by Rohr within thirty days of the payment by the Agency to Rohr of the 2015 CRA payment.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator 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 required.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
During the community planning process for the Chula Vista Bayfront Master Plan (CVBMP), the Citizens' Advisory Committee recommended merging an independent planning effort that was underway by the Pacifica for the Mid-Bayfront properties, into the overall planning effort for the CVBMP. As a result of that consolidated planning process, a decision was made to shift high-density residential land uses to the centrally located Harbor District and away from the more environmentally sensitive Sweetwater District. The shift in residential uses requires an exchange of Pacifica's Sweetwater District properties for Port District properties in the Harbor District. The exchange necessitates additional remediation activity at the site in order to allow for residential uses to be located on property that was formally operated as an aerospace manufacturing plant.
To ensure that these additional remediation activities and residential development could proceed, a Second Amendment to the Relocation Agreement between the City of Chula Vista, the Agency, the Port District, and Goodrich Aerostructures (Goodrich) was approved by the parties on February 2, 2010. In addition, a CRA, between the Agency and Goodrich, was entered into on April 20, 2010, which supported the existing operations of the Goodrich facility and provided Agency financial resources to hasten environmental remediation. The CRA includes the following financial participation provisions:
Financial Assistance
§ Provide financial assistance to Goodrich for environmental remediation, air quality mitigation and other qualifying investments which reduce the net energy consumption by the Goodrich facility.
§ Pay the financial assistance in annual payment due and payable on July 31 of each year beginning in 2011 and ending in 2028.
§ Financial assistance will be equal to fifty percent (50%) of eligible reimbursable expenses not to exceed the maximum amount for that year as identified in Exhibit "C" of the CRA.
§ Reimbursable expenses that exceed the maximum amount for that year shall be carried over as a credit balance due to Goodrich in future years until the accrued surplus balance is exhausted.
Today, much of the environmental remediation work associated with the soil on the exchange parcel has been accomplished, however, there is one more mobilization required to complete the final clean up of the soil. In addition, a dispute over costs has arisen between the Port District and Goodrich/Rohr. In order to continue to move the land exchange forward, staff recommends entering into the agreement to advance Rohr their next annual payment, in the amount of $250,000. The City will be repaid the advanced funds by Rohr within thirty days of the payment by the Agency to Rohr of the 2015 CRA payment.
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 City 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 CRA Advance Funding Agreement supports the City initiative 2.1.1 Implement the Bayfront Master Plan by providing temporary financial resources that will facilitate the exchange of lands between Pacifica and the San Diego Port District.
CURRENT YEAR FISCAL IMPACT
Approval of this item will result in the appropriation of $250,000 to the Non-Departmental's Other Expenses category. This appropriation is offset by unanticipated revenues, resulting in no net fiscal impact to the General Fund. The advanced amount will be repaid by Rohr within thirty days of the payment by the Agency to Rohr of the 2015 CRA payment.
ONGOING FISCAL IMPACT
There is no on-going fiscal impact.
ATTACHMENTS
1. CRA Advance Funding Agreement
Staff Contact: Eric Crockett, Assistant Director Development Services Department