RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A SECOND AMENDMENT TO
AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA
AND HOMEFED VILLAGE III MASTER, LLC FOR
CONSTRUCTION OF NEIGHBORHOOD PARK P -1 IN OTAY
RANCH VILLAGE 3 AND A PORTION OF COMMUNITY
PARK P-2 IN OTAY RANCH VILLAGE 4
WHEREAS, City and HomeFed Village III Master, LLC, a Delaware limited liability corporation (“ Master D eveloper”) previously entered into that certain agreement, namely, Agreement Regarding Construction of Neighborhood Park P -1 in Otay Ranch Village 3 and a portion of Community Park P-2 in Otay Ranch Village 4, recorded in the Office of the San Diego County Recorder, Document Recording Reference No. 2016 -0700044, (the “Original Agreement”) on December 6, 2016; and
WHEREAS, the Original Agreement was amended pursuant to the terms of that certain First Amendment to Agreement Regarding Construction of Neighborhood Park P-1 in Otay Ranch Village 3 and a portion of Community Park P -2 in Otay Ranch Village 4, recorded in the Office of the San Diego County Recorder, Document Recording Reference No. 2018-0416193, (the “First Amendment”) on August 14, 2018; and
WHEREAS, the Original Agreement as amended by the First Amendment (referred to hereinafter simply as the “Original Agreement”), set forth the terms for Master Developer’s satisfaction of its parks requirements with respect to Otay Ranch Villages 3 and 4 (the “Original Parks Requirements”); and
WHEREAS, pursuant to the terms of the Original Agreement, in partial satisfaction of the Original Parks Requirement, Master Developer provided City an Irrevocable Offer of Dedication (“IOD”) on Village 3 North Final Map No. 16160, recorded in the Office of the San Diego County Recorder, Document Recording Reference No. 2016-7000534, for the 7.5-acre Neighborhood Park P-1; and
WHEREAS, pursuant to the terms of the Original Agreement, and in further satisfaction of the Original Parks Requirements, Master Developer also (1) delivered to City an IOD for 4.7 - acres within the Community Park P -2 in Otay Ranch Village 4 (“Community Park North IOD”) and (2) committed to post a bond with the City (the “Community Park Bond”) prior to the building permit issuance for the 782 nd residential unit within Village 3 in an amount equal to 110% of the preliminary budget for the development of the park now commonly referred to as “Community Park North” (the Community Park North IOD and the Community Park Bond are collectively referred to herein as the “Community Park North Obligation”); and
WHEREAS, City and Master Developer also desire to amend the Original Agreement to allow Master Developer to satisfy its outstanding Community Park North Obligation either by Item 5.10 – Resolution – Added on 11/04/2022
(1) paying parkland development in-lieu fees consistent with Chula Vista Municipal Code Chapter 17.10 et seq. (“CVMC 17.10”) instead of posting the Community Park Bond; or (2) entering into a new agreement, subject to City Council approval, for the development of park at an alternative location; and
WHEREAS, on June 15, 2021, City approved the Village 3 and a Portion of Village 4 Sectional Planning Area (“SPA”) Amendment by Resolution No. 2021-122 of the City Council which authorized amendments to the land use designations with neighborhoods R-6, R-19 and R- 20, resulting in an additional park obligation of approximately 2.21 -acres, as calculated in the Village 3 and a Portion of Village 4 Supplemental Public Facilities Financing Plan, Table H.4. (the “Additional Park Obligation”); and
WHEREAS, City and Master Developer also desire to Amend the Original Agreement to address how Developer Parties will satisfy the 2.21 -acre Additional Park Obligation through the dedication of community park land and payment of in-lieu parkland development fees, consistent with CVMC 17.10; and
WHEREAS, on June 15, 2021, Master Developer transferred its interest in that certain real property comprised of approximately 10 (ten) acres located in Village 3 (the “R -20 Property”) to Flat Rock Land Company LLC, a Delaw are limited liability company (“Flat Rock”), which, pursuant to the terms of Section 14.11.1 of the Original Agreement, and by acknowledging and agreeing to the terms of this Second Amendment, has agreed to be bound by the terms of the Original Agreement, as amended hereby, applicable to the R -20 Property, including, without limitation the Additional Park Obligations;
WHEREAS, the City of Chula Vista and Developer Parties may enter into a future agreement, which may, at a minimum, provide for an alternative method of satisfying a portion of the Village 3 park land development obligations. Such agreement shall be subject to City Council approval;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Second Amendment to an Agreement between the City of Chula Vista and HomeFed Village III Master, LLC for the construction of Neighborhood Park P -1 in Otay Ranch Village 3 and a Portion of Community Park P-2 in Otay Ranch Village 4 substantially in the form presented, with such minor modifications as may be required or approved by the City Attorney.
Presented by Approved as to form by
Laura C. Black, AICP Glen R. Googins
Director of Development Services City Attorney
Item 5.10 – Resolution – Added on 11/04/2022