Cities Index.
Items 8.2 and 8.3 - University Actions.pdf

Chula Vista City Council
December 6, 2022

Document
Items 8.2 and 8.3 - University Actions.pdf
Meeting
December 6, 2022
Body
Chula Vista City Council
Original file
218.2 MB
Text extracted from the city's file for reading and search. Open the original on pub-chulavista.escribemeetings.com. That file is the official record.

U N I V E R S I T Y - I N N O V A T I O N D I S T R I C T Advancing
Chula Vista's
University-Innovation
District
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 Actions Implementing the University Vision
Approve a Purchase and Sale
Agreement (PSA)
Approve a Project Development
Agreement (PDA)
Appropriate funds
Launch the first phase of the UniversityInnovation District in Millenia:

I M M E D I A T E O P P O R T U N I T Y :

I T E M 8 . 2
F U T U R E O P P O R T U N I T Y :

I T E M 8 . 3
Approve an Exclusive Negotiating
Agreement (ENA) with HomeFed to
negotiate a Master Developer
Agreement (MDA) for the UniversityInnovation District
Plan for future development on the 383-
acre University site with HomeFed as
the Master Developer:

C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 Exclusive Negotiating
Agreement with HomeFed to
Negotiate an MDA for the
University-Innovation District
I T E M 8 . 3
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 Develop a financial
model that allows
development to occur
with as little out-ofpocket cost to the City
as possible
University-Innovation
District Goals
Develop a university
campus offering fouryear degrees
consistent with the
City’s binational and
multi-institutional
university vision
Establish a business
environment within the
Innovation District that
embraces the
technology and/or
higher education
sectors to serve as a
talent pipeline for the
University(ies) to grow
our own talent
Support and expand
equitable access to
higher education
Foster additional
economic
development and
education
opportunities for
the community and
region
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2

OCTOBER
1993
The Otay Ranch
General
Development
Plan was
adopted with the
University vision.

DECEMBER
2001
The City acquires
its first 140 acres of
land. Additional
acreage would still
be needed for a
university campus
and technology
park.

MARCH
2005
Mayor Steve Padilla
forms a University
Blue Ribbon
Committee of
distinguished
individuals as Phase
II of the recruitment
strategy, resulting in
a prospectus.

DECEMBER
2005
The City's General
Plan to guide
development
through 2030
was adopted
with a multiinstitutional
university vision.

Actions Taken to Turn a Vision into Reality
The City of Chula Vista has a strategic, long-term vision to develop a University-Innovation District on city-owned land and has taken actionable steps to turn the vision into reality.

NOVEMBER
2003
Mayor Steve Padilla
appoints a City
Council / City Staff
University Working
group as Phase I of
the Higher
Education
Recruitment
Strategy.

JANUARY
2007
A 10-acre lease is
approved on the
property for High-Tech K12 school.
1993 - 2007
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 2008-
2014
Through a
combination of LOAs,
land exchanges and
agreements with
developers, the City
completed
acquisition of 383
acres of land in
December 2014.

JANUARY
2016
City Council
unanimously
accepts report and
recommendations
from U3 Advisors for
a binational
university.

JANUARY
2017
LAO report states
a new UC or CSU
campus is not
warranted based
on enrollment
demand despite
need.

Actions Taken to Turn a Vision into Reality
The City of Chula Vista has a strategic, long-term vision to develop a University-Innovation District on city-owned land and has taken actionable steps to turn the vision into reality. 2015
Staff begins a
coordinated
university planning
and entitlement
process for the
UniversityInnovation District,
formerly called the
University and
Regional
Technology Park.

JANUARY
2017
City takes ownership of
155-acre state-of-the-art
Olympic Training Center
with opportunities for
potential athletic,
innovation and research
uses (<2 miles from UID
site).
2008 - 2018
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2

NOVEMBER
2018
UID SPA Plan, EIR
and related
technical
documents are
adopted,
completing
entitlements for the
city-owned site.

DECEMBER
2018
Mayor Salas requests
to form a University
Subcommittee.

Mayor Salas and
Councilmember
Padilla comprise the
committee.

FEBRUARY
2019
City holds first
subcommittee
meeting.

SEPTEMBER
2019
Impact USA Group
presents their vision
to develop the
University Property
in four districts and
opportunities for
partnerships with
IAJU members.

Actions Taken to Turn a Vision into Reality
The City of Chula Vista has a strategic, long-term vision to develop a University-Innovation District on city-owned land and has taken actionable steps to turn the vision into reality.

NOVEMBER
2019
University
Subcommittee and city
management sign letter
of interest requesting
commitments from IAJU
members, Purdue
University and The
Energy Corridor. Several
meetings with Purdue
ensue.
2018 - 2020

SEPTEMBER
2019
City pitches
relocating SDSU's
school of Television,
Film and New Media
to Chula Vista and
receives favorable
interest and support
from university staff.

C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2

JANUARY
2020
City hosts SDSU on a
bus tour from SDSU
to Chula Vista
through Millenia, the
University Property
and Elite Athlete
Training Center.

FEBRUARY
2020
Chula Vista hosts
CSU Capacity
Assessment
Roundtable event
at the Elite Athlete
Training Center for
state consultants
to analyze
feasibility of a new
CSU campus.

Actions Taken to Turn a Vision into Reality
The City of Chula Vista has a strategic, long-term vision to develop a University-Innovation District on city-owned land and has taken actionable steps to turn the vision into reality.

MARCH
2020
COVID-19 pandemic
hits and causes staff
to pause efforts out
of respect for
impacted
institutions and to
focus on business
assistance and
recovery efforts.
2020-2021
JULY
2020
CSU Capacity Assessment
Report issued to the CSU,
DoF and State Legislature
and does not recommend
any new CSU campuses
with antiquated approach
based off enrollment
demand during COVID.

FEBRUARY
2020
City Council
approves City UID
SPA Plan Overlay
Zone concept and
partnership
agreement with
HomeFed.

JULY
2020
University
subcommittee
authorizes staff to
draft a MDA with
HomeFed for City
Council
consideration.

C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2

SEPTEMBER
2021
City and SDSU
reconvene to discuss
moving forward on
relocation of school
of TFM to Chula Vista
and consensus is for
negotiations to
resume.

MARCH
2022
Working with
legislative
consultants, City
presents $30M
budget request to
the State for vertical
development of an
$89M Cinematic Arts
Library and seed the
university.

MAY
2022
In the May revised
State Budget,
Senator Atkins
secures $5M for
land acquisition
and entitlement for
the Cinematic Arts
Library.

Actions Taken to Turn a Vision into Reality
The City of Chula Vista has a strategic, long-term vision to develop a University-Innovation District on city-owned land and has taken actionable steps to turn the vision into reality. 2022
AUGUST
2022
In the August 2022
revised State Budget,
Assemblymember
Alvarez submits
budget trailer bill
language to allocate
$25M* to Chula Vista
for the Cinematic
Arts Library.

SEPTEMBER
2022
$30M in State funding is secured and
the City leverages up-to $59M in PFDIF
and CBA funds to implement the
partnership with SDSU and launch the
first phase of Chula Vista's UniversityInnovation District. Press announcements and events to follow.

C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 *$1.5M of the $25M will fund
SWC's request for an academic
planning study with the City
acting as fiscal agent.

FEBRUARY
2022
City Council
authorizes agreement
with CBRE to provide
services for:
1) ENA and term sheet
with HomeFed,
2) MDA negotiation
and completion and,
3) University
Marketing.

The University-Innovation District Property, a 10M square foot mixed use development, is fully entitled as of November 2018 complete with an EIR and related technical studies.

Academic
Space
20,000 FTE students
6,000 faculty & staff
The University is planned
for 4M square feet of
academic space and
On-site
Living

1.6M square feet of on-site
living, or the equivalent of
2,000 units, is planned to
accommodate students.

Market-rate
Residential
2M square feet of
market rate residential
is entitled and planned
to be available to
university faculty, staff
and families.

Open Space
Preserve
160 acres of beautiful open
space preserve surrounds
the university property.

Innovation
District
At build-out, the
Innovation District is
planned for 2M square
feet of innovation uses
providing up to 8,000
jobs.

University-Innovation District
SPA Plan
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 Planning Process & Execution
From Concept to Construction
Term Sheet Section 2
Infrastructure
Framework Plan
Project Phase
Development Plans
Project Phase
Implementation
Infrastructure Framework Plan:

IFP to describe backbone roads,
associated infrastructure plans
(water, sewer, power, drainage)
and mass grading plan for all City
land
HomeFed eligible to receive a
Developer Management Fee for
preparation of the IFP
Term Sheet Section 3 Term Sheet Section 4
Preliminary Plan:

Written notice from City Manager
to begin planning a project phase
(~50-100 acres)
Feasibility Plan
Final Project Phase
Development Plan:

To be approved by City Council
City provides written Notice to
Proceed to HomeFed
HomeFed provides project phase
schedule for City review and
approval
HomeFed to complete design,
permitting, contract awards for
land development work for public
infrastructure and the horizontal
UID infrastructure
Developer Management Fee and
GC Fee
2019: Signed into law
April 2021: Guidelines released
March 2022: City began consultation with HCD
July 2022: City submits exemption request stating the
University property meets all essential elements of the definition of "exempt surplus land."
August 2022: HCD approves City's draft NOA
November 2022: HCD provides determination 5/6 of
University parcels are not exempt; official determination for remaining parcel imminent
An Impediment to Progress
AB 1486 - Surplus Land Act
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 40,000 sf
Surface Parking
Amenity Building
6,100 sf
Fire Station 10
Future Opportunity
150,000 sf
40,000 sf pad
Lot 1
Future Opportunity

1.7M sf
Library: 60,000 sf
SDSU: 50,000 sf
Industry: 58,000 sf
2 acre park
SR-125
University-Innovation District in
Millenia
Millenia Avenue
Parking Structure
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 Ayres Hotel
Cinematic Arts Academic
Center & Library
I T E M 8 . 2
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 Purchase of 7.06-acre site and
the project (entitlements,
construction docs, site work,
parking and construction)
Purchase and
Sale Agreement
Project Development
Agreement
Appropriating
Funding
Execution and implementation
document for the PSA to construct
the Project
Appropriating the City funds for
the project; secures all funds
except for $30M in forthcoming
State funding
Implementing Actions
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 The first new library since 1996 with 60,000 sf of space; 50,000 sf for an academic partner to launch the first phase of the University;
58,000 sf of Class "A" office space for a qualified industry user to lease; and
a 6,100 sf amenity building for tenant attraction.

The new Cinematic Arts Library in Millenia would be for public, education and industry use to launch the first phase of Chula Vista's University-Innovation District.

This vision supports a growth opportunity for an academic partner and will curate a new state-of-the-art cinematic arts library for Chula Vista, realized through a state and local government partnership.

The project provides:

Create a State-of-the-Art Cinematic Arts
Academic Center & Library in Millenia
Our Vision
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 S
iteLocation
TheMilleniasite is locatedjustunderahalf-mile
fromtheUIDaswell asotheramenitieswithin
thecoreoftheEasternUrbanCenter(EUC)
CloseProximitytoUID
Adds16acrestoUID landassemblageadding
additional value, impactandpresence
ExpansionofUIDLandHoldings
Millenia
Item8.2
U
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r
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-
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D
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i
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I
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m
8 .3
Olympic
Training
Center
Eliminatessignificantdevelopmentbarriersbyseeding
theuniversity inadevelopedarea
OpportunitytoEstablishUniversity
Presence
SR-125
TheCityofChulaVistahasnothadanew library since 1995. Demand in Chula Vista remains high that requires 60,000 square feet to meet build out demand. Meets Critical Library Need C H U L A V I S T A E C O N O M I C D E V E L O P M E N T DECEMBER2022
State Funding
Library Investment
$96.4M for new Cinematic Arts
Academic Center & Library, site
work, parking and 6,100 sf
amentity building
Includes land acquisition and
vertical development costs
New Public Library
$5M
Land Acquisition
$25M
Vertical Development of Library
Building
$96.4M
State Funding
$30M
$31.8M
Public Facilities
Development Impact
Fees
$34.6M
Developer Contributions
City Capital Stack
$66.4M
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 Library Programming
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 The library will also have
58,000 GSF of leasable space
in warm shell condition for a
Class "A" Office user
Facilitate Economic
& Job Growth
15 upper-division and graduate
courses for approximately 300
students
Supported by leadership and
faculty to further their vision
San Diego State University
Television, Film & New
Media Studios
Library
Programming
Cinematic Arts Library
State-of-the-Art Cinematic Arts
Library to be enjoyed by the
community
Uses will be community-oriented
and utilized by K-12 schools, our
local junior college and
universities.

C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 Shorter,
more
accessible
shelving
Proposed Library Amenities
Modern
Reading and
Working Nooks
Digital
circulation
options
Modern
multipurpose
rooms
Connection to
nature with
outdoor
courtyard and
adjacent park
For library patron & community use
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 Sound
Stages
Proposed Library Amenities
Screening
Room / Theater
Sound Mixing &
Recording
Studios
Digital
Amenities
For SDSU, industry and educational partner use
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 Purchase and Sale Agreement
Land Acquisition: $11M (City to also acquire 8.83-acre Lot 1 for $1)
Land Cost: $15.89/ft (way below market)
$96.4M for land, entitlements, 100% CDs, and construction of:
168,000 sf Library building;
6,100 sf Amenity building;
Parking; and
Site Improvements
City to own 7.06-acre Lot 7 including all entitlements, plans, and studies
City Ownership of Lot 7:

C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 Purchase and Sale Agreement
Approval of PSA
$0.5M deposited into escrow
and released following City's
approval of Title documents.

Applied towards $11M land
acquisition
January 2, 2023
$5.5M deposited into escrow to
be applied towards $11M land
acquisition
Released on March 1, 2023
following completion of PreClosing Conditions during Due Diligence Period*
Before October 31, 2023
$3.1M for reimbursement of
Soft Costs released to the
Developer
Released following City's
approval and Developer's
execution of the GMP Contract
Flow of Funds:

July 1, 2025
Remaining $5M in land
acquisition costs released to the
Developer at Close of Escrow
upon transfer of land and
project to the City
*Contingent upon City Council
approval of State Grants and
SDSU Lease Agreement
Designed with a Risk-Mitigation Approach
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 Project Development Agreement
Developer Performed Public Work CVMC Section 2.56.160(H) with Chesnut Properties (LMC-Millenia Investment Company) as the Developer.

Developer will solicit competitive bids and award the Prime Contract from the approved contractors list and select the most qualified to serve as Prime Contractor. CVMC Section

2.56.160(H)(1)(a)
Developer will solicit competitive bids for all subcontracts.

CVMC Section 2.56.160(H)(2)(c) subject to City approval.

Following City's approval of GMP Contract, vertical
development to begin no later than November 1, 2023 with completion by July 1, 2025.

Project Development Agreement:

City will review and approve GMP Prime Contract and Subcontracts.

Payment of Project Costs:

Architect's Certificate required to be submitted with all payment requests.

All work on project warrantied for 3 years following date of completion.

Performance Bond with City named as Co-Obligee and a Payment Bond is required.

City can call the performance bond to complete the project in the event of default by developer.

Embedded Risk Mitigation Measures:

C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 Fund Fund Balance Loan Total
Public Facilities Development Impact Fee – Library Component $22,900,00 $8,880,433 $31,780,433 Developer Contributions Fund – Economic Development $3,000,000 $8,000,000 $11,000,000 Developer Contributions Fund – Public Benefit $1,500,000 $22,132,958 $23,632,958 Trunk Sewer Capital Reserve Fund - Interfund Loan $39,013,391 ($39,013,391) $0 State Grants Fund $30,000,000 0 $30,000,000
Appropriating City Funds
TOTAL $96,413,391
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 Future University Actions:

Acceptance of $30M in State Grant Funds - Q1 2023
March 1 deadline per PSA
Lease Agreement with SDSU - Q1 2023
March 1 deadline per PSA
Amendment to Millenia Development Agreement - January 2023 Planning Commission Action: 12/14
Upcoming Millenia Actions for City Council Consideration:

Upcoming UID Site Actions for City Council Consideration:

Surplus Lands Act Action - Q1/Q2 2023
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 Actions for Items 8.2 and 8.3:

Adopt Resolution A: Approval of a Purchase and Sale Agreement (PSA) Adopt Resolution B: Approval of a Project Development Agreement (PDA) Adopt Resolution C: Approval of Actions to Appropriate City Funds City Council Actions, Item 8.2:

City Council Action, Item 8.3:

Adopt a Resolution Approving an Exclusive Negotiating Agreement (ENA) with HomeFed to negotiate a Master Developer Agreement (MDA) for the University-Innovation District C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 FAQ
Available
www.chulavi s taca.gov/univer s i ty
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2 Thank you!
Questions?
C H U L A V I S T A E C O N O M I C D E V E L O P M E N T D E C E M B E R 2 0 2 2

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