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CONSIDERATION OF A REQUEST BY THE CORKY McMILLIN COMPANIES THAT THE CITY COUNCIL FORM A REIMBURSEMENT DISTRICT FOR THE CONSTRUCTION OF TOWN CENTER DRIVE
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RECOMMENDED ACTION
Recommended Action
Council direct staff to continue to work with the Corky McMillin Companies to evaluate the merits of formation of a reimbursement agreement and to bring a formal recommendation on whether City Council should begin the proceedings for the formation of a district to the City Council meeting of July 25, 2017.
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SUMMARY
Under Chapter 15.50 of the Chula Vista Municipal Code (CVMC) a developer who believes that they have been required to construct or have constructed public improvements that benefit other property owners who have made no contribution to the costs of those improvements may request that City Council direct the City Manager to begin proceedings for the formation of a reimbursement district.
The City Clerk received a request (Attachment 1) for the formation of a reimbursement agreement from the Corky McMillin Companies for the construction of the portion of Town Center Drive between Olympic Parkway and the Otay Ranch Mall property line.
After looking further at the circumstances surrounding the construction of Town Center Drive and reviewing the applicable sections of CVMC Chapter 15.50, City staff does not feel prepared to render a recommendation in support of beginning district formation proceedings. City staff would rather request that City Council direct staff to continue to work with the developer on exploring additional justification for the formation of a reimbursement district and the applicability of CVMC Chapter 15.50. In order to allow appropriate time for this, staff recommends this matter be continued to the City Council hearing of July 25, 2017.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
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Environmental Determination
The Director of Development Services 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 because it will not result in a physical change in the environment; 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
The request made by the developer on May 31, 2017 for the City to begin formation of a reimbursement agreement under CVMC Chapter 15.50 involves the evaluation of whether they constructed a public improvement that provided additional benefit to property owners that did not contribute to those improvements. In this case the construction of Town Center Drive occurred as a result of a number of City actions including the Sectional Planning Area Plan for Village 12 - Freeway Commercial including subsequent amendments, a General Development Plan and project specific approvals including tentative maps and street dedications. The complexity of these various actions over time combined with the applicability of the provisions of CVMC Chapter 15.50 requires a deeper, more thoughtful analysis by staff to form a recommendation to City Council.
As identified in the developers letter (Attachment No. 1), they had previously entered into a private reimbursement agreement with Otay Project, L. P. (Baldwin and Sons) for this to recover their cost of constructing Town Center Drive. City staff believes a dispute over the timing and enforceability of this agreement between the two parties is the basis for the developer’s request for district formation. Again, City staff is requesting additional time to review the request for district formation given this additional complexity.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov’t Code §87100,et seq.).
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
N/A
CURRENT YEAR FISCAL IMPACT
None
ONGOING FISCAL IMPACT
The cost of City processing requests for formation of reimbursement districts will be borne by the developer requesting formation.
ATTACHMENTS
Attachment 1 - Formation Request
Staff Contact: Kelly Broughton, Director 619-691-5233