C:\Program Files\eSCRIBE\TEMP\2042276362\2042276362,,,Resolution B - Fee Deferral Agreement Final.docxJ:\Attorney\JILLM\FORMS & POLICIES\Resolution-Approving Agt or Doc-1-4-13.doc
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN AGREEMENT FOR
DEVELOPMENT IMPACT AND SEWER CAPACITY FEES
(BAYFRONT RESORT AND CONVENTION CENTER)
BETWEEN THE CITY AND RIDA CHULA VISTA, LLC
WHEREAS, the City, RIDA Chula Vista, LLC (the “Developer”), and the San Diego Unified Port District (the “Port District”) entered into a Disposition and Development Agreement for the Resort Hotel Convention Center Project (Chula Vista Bayfront Master Plan Parcel H -3) (the “Project”), effective May 7, 2018; and
WHEREAS, the Project is comprised of (1) a resort hotel, consisting of no less than 1,570 rooms and no more than 1,600 rooms and related resort -level amenities (collectively, the “Developer’s Private Improve ments”), (2) an attached approximately 275,000 square foot convention center (“Convention Center”) to be constructed and operated by Developer on behalf of the City of Chula Vista Bayfront Facilities Financing Authority, formed by the City and the Port for such purpose, and (3) a portion of the substantial public improvements required for development of the Developer’s Private Improvements and Convention Center (the “Developer’s Phase IA Infrastructure Improvements”), as more particularly described that cer tain Project Implementation Agreement between the City, the Port, Developer, the Financing District (as defined therein) and the JEPA (as defined therein) (the “PIA”); and
WHEREAS, as authorized by California Government Code section 66000, et seq., the City imposes various development impact fees in connection with the approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project; and
WHEREAS, certain development impact fees applicable to this Project are set forth in the Chula Vista Municipal Code (“CVMC”) as follows: (1) CVMC Chapter 3.54 provides for the transportation infrastructure related Bayfront Development Impact Fee (the “BFDIF”); (2) CVMC Chapter 3.50 provides for certain other public facilities development impact fees (“PFDIF”); (3) CVMC Chapter 13.14.090 provides for certain sewer capacity fees (“Sewer Capacity Fees”); and (4) City Council Policy 478-01 provides for certain traffic signal fees (“Signal Fees”); and
WHEREAS, in accordance with City polices, rates and calculations, City and Developer have agreed that Developer’s total BFDIF, PFDIF, Sewer Capacity Fees and Signal Fees is $22.1 million (collectively, the “Project Development Fees Obligation”). The Parties have further agreed that this amount shall be fixed at the date for issuance of the first building permit for the Project and that the applicable rates for the fees shall not subject to increase; provided, however that, if the first building permit for the Project is not issued prior to the City’s next development impact Resolution No.
fee rate review and adjustment (currently scheduled to occur on or about, but no sooner than, October 1, 2022) such amount shall be subject to change based upon the City’s updat ed development impact and/or capacity fees and any such changes shall be automatically incorporated into the terms of this Agreement, including with respect to the final total amount of the Project Development Fees Obligation; and
WHEREAS, the CVMC allows for Developer to receive credits towards the BFDIF component of its Project Development Fees Obligation through the construction of BFDIF qualified public improvements up to, but not in excess of, the BFDIF fees imposed; and
WHEREAS, through its construc tion of various components of Developer’s Phase IA Infrastructure Improvements, Developer is expected to generate approximately $15.5 million in credits towards the BFDIF component of Developer’s Project Development Fees Obligation, with the final amount of credits to be determined upon Developer’s completion of such improvements which shall equal an amount (as determined pursuant to the PIA) approved by the City which is equal to costs incurred for such improvements that are determined to be qualified for credits in accordance with the City’s BFDIF policies (the “Phase IA Construction Credit”). When the Phase IA Construction Credit is offset against the BFDIF component of the Developer’s Project Development Fees Obligation, the remaining development fee obl igation due and owing is currently expected to be approximately $6.6 million (the “Net Development Fee Obligation”); and
WHEREAS, pursuant to the authority set forth in various sections of the CVMC and City policies, including, without limitation Section 3.50.160, and the City’s inherent authority as charter city, the City is permitted, to defer the Net Development Fee Obligation upon request from a developer, the making of certain findings and upon certain terms; and
WHEREAS, developer has requested tha t the City defer the Net Development Fee Obligation in order to address funding sequencing issues and to make the Project financially feasible; and
WHEREAS, the City Council has found and determined that the Project qualifies for the requested fee deferral under CVMC Section 3.50.160.C, and other applicable standards in consideration of (1) Developer’s demonstrated need for the deferral to address funding sequencing and overall Project feasibility challenges; and (2) the substantial public benefits of the Project in furthering the desired objectives and goals of the City to facilitate development of the Chula Vista Bayfront Master Plan area, job creation, and related economic development benefits to the public, both at a local and regional level; and
WHEREAS, the City Council has also found and determined that the terms of this Agreement are consistent with the requirements of CVMC Section 3.50.160.C in that the Net Development Fee Obligation (1) will bear interest at a fair market rate, such that th e City will receive an amount that is equal to, or greater than, the total amount of fees owed prior to the deferral; and (2) the amount deferred is adequately secured by a written agreement.
Resolution No. _________
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that, based upon the City Council findings and determinations set forth above, which such findings and determinations are incorporated herein by this reference, the City Council approves the Agreement for Deferral of Development Impact and Sewer Capacity Fees (Bayfront Resort and Convention Center) , between the City and RIDA Chula Vista, LLC , in substantially the fo rm presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk and authorizes and directs the City Manager to execute same.
Presented by
Tiffany Allen
Deputy City Manager/
Director of Development Services
Approved as to form by
Glen R. Googins
City Attorney