RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A PURCHASE AND SALE
AGREEMENT BETWEEN THE CITY AND LM C-MILLENIA
INVESTMENT COMPANY , L.P. FOR THE CONSTRUCTION
OF THE CIN EMATIC ARTS ACADEMIC CENTER AND
LIBRARY
WHEREAS, to plan for the critically needed library space in Millenia, a library obligation for Lot 7 in Millenia was included in the Millenia Development Agreement, dated October 27, 2009, between the City of Chula Vis ta ( “City”) McMillian Otay Ranch L LC (“McMillan”); and
WHEREAS, the 2011 Chula Vista Public Library Strate gic Facilities Plan concluded that a new destination library should be located convenient to the South Bay Expressway (“SR 125”), preferably to the east, to best serve residents and such a site sh ould provide sufficient capacity for the library building an d parking, a high-profile location along a well -traveled route, close to other community amenities, such as shopping or recreation, and accessible by public transit; and
WHEREAS, on February 22, 2011, McMillin assigned its rights and transferred its obligations to SLF IV/McMillin Millenia JV, LLC, and this assignment imposed the obligation on th e principal master developer to provi de a library in the Eastern Urban C enter (“EUC”) known as Millenia; and
WHEREAS, the library obligation allowed the City to consider both ownership and leasehold interests for the library; and
WHEREAS, in recent yea rs the City began pursuing the opport unity to expand the University-Innovation District (“UID”) into the nearby Eastern Urban Center Sectional Planning Area (“SPA”), now known as Millenia, as a creative solution to jumpstart the University with significantly reduced risk and capital outlay; and
WHEREAS, the alignment of the desire to establish the first phase of the UID within the built environment of Millenia will reduce risk and development cost per acre combined with t he need to establish a new destina tion library in compliance with the 2011 Library Strategic Facilities Pl an presented an o pportunity to include both uses into one buil ding as the City ’s Cinematic Arts Academic Center and Library; and
WHEREAS, Lot 7 of Millenia located at 1775 Millenia Avenue (Assessor Parcel No. 643-060-57) is an unimproved, 7.06-acre raw piece of land with entitlements (the “Property”); and
WHEREAS, Developer is the owner of t he Property which is presently undeveloped and Developer has caused the preparation of certain Building Plans and Specific ations for the development of a multi -story Class A office building on the Lan d, and related improvements, Resolution No.
and obtained the following building permits from the City for development of: a 168,000 sf class “A” office building (Chula Vista Building Permit No. B17 -0654), a 6,100 ameni ty building (Chula Vista Building Permit No. B17-0656), and a parking structure (Ch ula Vista Bu ilding Permit No. B17-0657); and
WHEREAS, City staff has determined that the Property could serve as a location for the City’s first new library since 1995 and meet the minimum 60,000 square fo ot need for li brary space, provide 50,000 square feet for an academic partner to launch the first phase of the University, provide 58,000 square feet of Class “A” office space in wa rm shell condi tion for an industry user to lease, and provi de a 6,100 squar e foot amenity building for tenant attraction (“Project”); and
WHEREAS, City and Developer are proposing to enter into a Purchase and Sale Agreement (“PSA”) and for the City’s acquisition of the Property for purposes of implementing the Project; and
WHEREAS, the PSA provides that the City will also concurrently engage the Developer to develop and const ruct the Project as provided in the PSA and the Project Development Agreement (“PDA”); and
WHEREAS, in July 2022, as part of due diligence, t he City solicited competitive bids to have an apprai sal performed on the Property and the appraised value was det ermined to be $11,000,000 which the independent appraiser determined to be within reasonable fair market value; and
WHEREAS, City has agreed to purchase the Property from Developer for $11,000,000.00 subject to the con ditions set forth in the PSA and Developer has agreed to sell the Property to City subject to those conditions; and
WHEREAS, the PSA provides t hat the City will reimburse Developer for alr eady incurred predevelopment and soft costs for the Project in the amount of $3,145,203.00 subject to the conditions in the PSA; and
WHEREAS, Exhibit 7 of the PSA provides that the City will accept and assume the duties of the principal master developer with regard to meeting the library obligation on Lot 7.
WHEREAS, staff recommends approval of the Purchase and Sale Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it approves Purchase and Sale Agreement by and between the City of Chula Vista and LMC- Millenia Investment Company, L.P., a California l imited partnership, in the form presented, with such modifications as may be required or approved by the City Attorney, authorizes and directs the Mayor to execute same, and directs that a copy of the executed agreement shall be kept on file in the office of the City Clerk.
Presented by
Resolution No. _________
Eric Crockett
Deputy City Manager
Approved as to form by
Glen R. Googins
City Attorney