City of Calexico City Council Meeting
Hallwood Calexico Investments Development Agreement Release Request – November 6, 2024 Page 2 of 4 investor; however, the currently active development agreement must first be released before being fully retained by the new investor.
The item was presented to the City Council during a regularly scheduled meeting on August 21, 2024, where it was tabled by the City Council citing the need for additional project information.
The purpose of this item is to present the request to release the development agreement between Hallwood Calexico Investments, LLC, a Delaware limited liability company, and the City of Calexico for the development of the 111 Calexico Place project to the City Council along with the requested information where they will motion to approved or deny the release of the development agreement.
DISCUSSION AND ANALYSIS:
As part of the development agreement, Hallwood Calexico Investments, LLC, would cooperate with the City of Calexico on the completion of all actions in conjunction with the development of the 111 Calexico Place Project. Said actions include the timely and reasonable completion of all applicable agreements, and the timely submittal of all plans, applications, documents, etc. required for the City to review and process the project.
In turn, the City of Calexico was given certain obligations, on section 5 of page number 7 of the development agreement, pertaining to the following:
a. Additional Entitlements. The City shall review and use all reasonable efforts to expeditiously process any subdivision map, parcel map, use permit, variance or other discretionary approval which may be submitted in connection with development of the project.
b. Permits. The City shall issue building permits and certificates of occupancy only after the City has reviewed and approved the Property Owner’s applications.
The obligations from both parties were intended to ensure the timely completion of the project which would ultimately enable the City to benefit from the planned facilities, programs, and revenues from the development.
Since the project has been abandoned, the applicant has failed to comply with their obligation to proceed with the project in a timely and reasonable manner as stipulated in the development agreement. Therefore, the City is no longer required to meet the obligations listed on section 5 of page number 7 of the agreement. By releasing the development agreement, the property owner will be free to transfer ownership of the property to another interested party which will immediately open the site for future development. Otherwise, the site will remain undeveloped until the development agreement has reached its fifteen (15) year expiration date of January 20, 2026.
Requested Information. As requested by the City Council during the regularly scheduled meeting on August 21, 2024, the following information has been acquired by city staff:
City of Calexico City Council Meeting
Hallwood Calexico Investments Development Agreement Release Request – November 6, 2024 Page 3 of 4 • City Council Resolution No. 09-06. A resolution of the City Council of the City of Calexico dated May 5, 2009, certifying Final Environmental Impact Report No. 2008-07 (Sch # 2007031092) and Adopting Findings of Fact, a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Plan for the "111 Calexico Place Specific Plan" Project. A copy of the Final Environmental Impact Report has also been included as Attachment B – Resolution No. 09-06 and Final Environmental Impact Report.
• City Council Resolution No. 09-07 - A resolution of the City Council of the City of Calexico dated May 5, 2009, approving General Plan Amendment No. 2008-05 to redesignate the approximate 232-acre 111 Calexico Place Specific Plan Area from Industrial (I), Medium Density Residential (MDR) and High Density Residential (HDR) to Commercial Highway (CH)/Specific Plan Overlay. City staff were unable to locate any documentation other than the approved resolution. Resolution No. 09-07 has been included as Attachment C – Resolution No. 09-07.
• City Council Resolution No. 09-08 - A resolution of the City Council of the City of Calexico dated May 5, 2009, approving Tentative Tract Map No. 2008-05 which proposes the subdivision of approximately 232 acres of land to create twenty (20) commercial lots for the 111 Calexico Place project. City staff were unable to locate any documentation other than the approved resolution and conditions of approval incorporated in said resolution. Resolution No. 09-08 has been included as Attachment D – Resolution No. 09-
08. • City Council Ordinance No. 1087 - An ordinance of the City Council of the City of Calexico dated May 5, 2009, approving Specific Plan No. 2008-05 to create a Specific Plan Overlay Zone for the 111 Calexico Place project. A copy of the Specific Plan has also been included as Attachment E – Ordinance No. 1087 and 111 Calexico Place Specific Plan. • City Council Ordinance No. 1088 - An ordinance of the City Council of the City of Calexico dated May 20, 2009, approving a zone change (No. 2008-08) from Rail Served Industrial (IR), and Industrial (I) to Commercial Highway (CH) and Specific Plan Overlay zone. City staff were unable to locate any documentation other than the approved ordinance. Ordinance No. 1088 has been included as Attachment F – Ordinance No. 1088.
City staff were unable to locate any additional documentation. No building permit applications were submitted for the project since it was abandoned shortly after the recording of the development agreement on Attachment G – Recorded Development Agreement.
It is important to note that both the General Plan Amendment and zone change previously approved by the City Council for the project will remain unchanged regardless of the City Councils decision to release or not release the development agreement. Furthermore, unless an extension was requested and approved by the City Council, Tentative Tract Map No. 2008-05 expired on May 5, 2011, as stated in condition number 6 of City Council Resolution No. 09-08. Since no record of City of Calexico City Council Meeting
Hallwood Calexico Investments Development Agreement Release Request – November 6, 2024 Page 4 of 4 an extension was found by staff, the tentative map will remain expired regardless of whether the development agreement is released or not.
FISCAL IMPACT
No fiscal impact.
COORDINATED WITH
City Manager’s Office
Attachments: Attachment A – Location Map
Attachment B – Resolution No. 09-06 and Final Environmental Impact Report Attachment C – Resolution No. 09-07
Attachment D – Resolution No. 09-08
Attachment E – Ordinance No. 1087 and 111 Calexico Place Specific Plan Attachment F – Ordinance No. 1088
Attachment G – Recorded Development Agreement
Attachment H – City Council Resolution
Attachment A – Location Map
Attachment B – Resolution No. 09-06 and Final
Environmental Impact Report
Attachment C – Resolution No. 09-07
Attachment D – Resolution No. 09-08
Attachment E – Ordinance No. 1087 and 111 Calexico
Place Specific Plan
Attachment F – Ordinance No. 1088
Attachment G – Recorded Development Agreement
Attachment H – City Council Resolution
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CITY COUNCIL RESOLUTION NO. 24-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CALEXICO APPROVING THE RELEASE OF A DEVELOPMENT
AGREEMENT BETWEEN HALLWOOD CALEXICO INVESTMENTS,
LLC, A DELAWARE LIMITED LIABILITY COMPANY, AND THE CITY OF CALEXICO FOR THE DEVELOPMENT OF THE 111 CALEXICO
PLACE PROJECT AND FINDING THE ACTION EXEMPT FROM CEQA
WHEREAS, Hallwood Calexico Investments, LLC, a Delaware limited liability company, and the City of Calexico executed a development agreement on the 20th of January of 2011 for the development of the 111 Calexico Place project; and
WHEREAS, the executed development agreement was recorded at the County of Imperial Recorder’s Office on January 31, 2011; and
WHEREAS the development of the 111 Calexico Place project never materialized resulting in the abandonment of the project; and
WHEREAS, a formal request to have the City of Calexico release the recorded development agreement was submitted by the current property owner in order to have a new investor retain the property; and
WHEREAS, the City Council has reviewed and considered all evidence presented for the request to release the development agreement for the 111 Calexico Place project during a meeting on November 6, 2024.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CALEXICO HEREBY RESOLVES AS FOLLOWS:
Section 1. The above recitals are true and correct and are incorporated herein by this reference.
Section 2. That the action to release the development agreement is exempt from further CEQA review via Section 15061(b)(3) of the CEQA Guidelines for Implementation of the California Code of Regulations.
Section 3. The City Council approves the release of the development agreement, recorded on January 31, 2011, between Hallwood Calexico Investments, LLC, a Delaware limited liability company, and the City of Calexico for the development of the 111 Calexico Place project.
Section 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.
Section 5. Effective Date. This Resolution shall become effective immediately. -2-
PASSED, APPROVED, AND ADOPTED this 6th day of November 2024.
Camilo Garcia, Mayor
ATTEST:
Veronica Alvarado, City Clerk
STATE OF CALIFORNIA )
COUNTY OF IMPERIAL )
CITY OF CALEXICO )
I, Veronica Alvarado, City Clerk of the City of CALEXICO, DO HEREBY CERTIFY that foregoing Resolution No. 24-__ was duly passed and adopted by the City Council of the City of Calexico at their regular meeting held November 6, 2024, by the following roll call vote, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Veronica Alvarado, City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY