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November 8, 2022
ITEM TITLE
Agreement Amendment: Approve an Amendment to the Original Amendment with HomeFed Village III, Master, LLC and Flat Rock Land Company, LLC, to satisfy Park Land Development Obligations in Otay Ranch Village 3 and a Portion of Otay Ranch Village 4
Report Number: 22-0174
Location: Otay Ranch Village 3 North and a Portion of Village 4 Sectional Planning Area ("Village 3"), located at Heritage Road and Main Street
Department: Development Services
Environmental Notice: The Project was adequately covered in previously certified Final Environmental Impact Report (EIR 13-01)-SCH #2013071077 for the University Villages and Final Second Tier Environmental Impact Report (EIR 02-02) - SCH #2003091012 for the Otay Ranch Village 2, 3 and a Portion of 4 and all addenda and amendments.
Recommended Action
Adopt a resolution approving an amendment to the original agreement with HomeFed Village III, Master, LLC and Flat Rock Land Company, LLC, to satisfy Park Land Development Obligations in Otay Ranch Village 3 and a portion of Otay Ranch Village 4.
SUMMARY
An Agreement regarding Construction of Parks (“Parks Agreement”) has been made between HomeFed Village III, Master, LLC, a Delaware limited liability company (collectively, “Master Developer” or “HomeFed”) and Flat Rock Land Company, LLC, a Delaware limited liability company, (collectively, “Developer Parties”), and the City of Chula Vista, to amend the Parks Agreement to 1) allow payment of Parkland Development in- lieu fees equivalent with the 4.7 -acre Irrevocable Offer to Dedicate (“IOD”); 2) add Flat Rock as owner of Parcel R-20 to the Original Parks Agreement and 3) 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 Chula Vista Municipal Code (“CVMC”) Chapter 17.10.
Item 5.10 – Staff Report – Added on 11/04/2022
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ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act ( “CEQA”) and has determined that the Project was adequately covered in previously certified Final Environmental Impact Report (EIR 13-01) - SCH #2013071077 for the University Villages and Final Second Tier Environmental Impact Report (EIR 02-02) - SCH #2003091012 for the Otay Ranch Village 2, 3 and a Portion of 4 and all addenda and amendments. Thus, no additional environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
Background
On December 6, 2016, the City of Chula Vista and Master Developer entered into a Parks A greement regarding 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, recorded in the Office of the San Diego County Recorder, Document No. 2016-0700044, (the “Original Parks Agreement”). In addition to the recorded Original Parks Agreement, Master Developer provided the City of Chula Vista with an IOD on Village 3 North Final Map No. 16160, recorded in the Office of the San Diego County Recorder, Document No. 2016 -7000534, for the 7.5 -acre Neighborhood Park P-1 (Lot “A”). A second IOD for 4.7-acres within the Community Park P-2 in Otay Ranch Village 4 (“Otay Ranch Community Park North”) was provided by a separate instrument.
On August 14, 2018, the City of Chula Vista and Master Developer entered into a First Amendment to the Original Agreement regarding a budget shortfall for the Neighborhood Park P-1, recorded in the Office of the San Diego County Recorder, Document No. 2018 -0416193, (the “First Amendment”) . The City and Master Developer agreed to each contribute matching funds of $500,000 each for a combined total not to exceed one million dollars ($1,000,000), in addition to the Development Fees pursuant to the Original Agreement.
Otay Ranch Village Second Amendment to Original Agreement On June 15, 2021, the City Council approved the Otay Ranch Village 3 and a Portion of Otay Ranch Village 4 Sectional Planning Area ( “SPA”) Amendment, Resolution No. 2021 -122, which authorized amendments to the land use designations within neighborhoods R -6, R -19, and R -20, which resulted in an additional parkland obligation of 2.21-acres. The Second Amendment to the Original Agreement is amended as follows:
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.
The Original Agreement required the Master Developer to post a bond in amount equal to 110% of the preliminary budget for Otay Ranch Community Park North allocated to Village 3 (the “Community Park Bond”). Master Developer agrees it has an obligation to pay the Parkland Development in-lieu fees equal to 4.7-acres. If the future agreement is not approved by the City Council prior to issuance of the building permit for the fifty-fifth (55) residential unit within neighborhood R-20, then Master Item 5.10 – Staff Report – Added on 11/04/2022
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Developer shall pay the Parkland Development in-lieu fees equal to 4.7-acres., consistent with CVMC Chapter 17.10.
Developer Parties shall satisfy its 2.21 -acre additional park obligation by paying Parkland Development in-lieu fees, as authorized in CVMC 17.10.100. Per Ordinance No. 3163, the amount of in-lieu fees shall be based on the current Parkland Development Fee at the time payment is due and consistent with the annual index-based adjustment authorized by CVMC 17.10.110.
Developer Parties granted a Community Park IOD for the 2.21 net acre obligation within the property located in Area P-2 of Tentative Map CVT-13-03, Otay Ranch Village 8 East (Village 8E P-2 Otay Ranch Community Park South).
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 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 Californ ia Code of Regulations Title 2, section 18702.2(a)(7) or (8), 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 members, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There are no current year fiscal impacts to the General Fund or the Development Services Fund as a result of this action.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the General Fund or the Development Services Fund as a result of this action. Future costs related to park construction and park construction costs over time will be covered by the Developer, as outlined in the Parks Agreement.
ATTACHMENTS
1. Location Map
2. Second Amendment to Agreement
Staff contact: Bethany McDonnell, Landscape Planner II
Patricia Ferman, Principal Landscape Architect
Laura C. Black, AICP, Director of Development Services
Item 5.10 – Staff Report – Added on 11/04/2022