ORDINANCE NO. _______
ORDINANCE OF THE CITY OF CHULA VISTA APPROVING A SECOND
AMENDMENT TO THE DEVELOPMENT AGREEMENT BETWEEN THE
CITY OF CHULA VISTA AND MCMILLIN OTAY RANCH, LLC.
WHEREAS, on August 26, 2009, the City of Chula Vista’s Planning Commission held a duly noticed public hearing on the Development Agreement and at the conclusion of the hearing recommended approval of the Development Agreement by and between the City of Chula Vista (City) and McMillin Otay Ranch, LLC (the “Development Agreement”); and WHEREAS, on September 15, 2009, the Chula Vista City Council held a duly noticed public hearing on the Development Agreement at the conclusion of which the City Council introd uced and conducted the first reading of the ordinance approving the Development Agreement and subsequently on October 6, 2009 adopted Ordinance No. 3143 approving the Development Agreement and the agreement was recorded with the San Diego County Recorder’s Office on October 27, 2009 as Document No. 2009-0595116; and
WHEREAS, on June 13, 2018 the City’s Planning Commission held a duly noticed public hearing on a First Amendment to the Development Agreement (the “First Amendment”) and at the conclusion of the hearing recommended approval of the First Amendment; and WHEREAS, On July 10, 2018, the City Council held a duly noticed public hearing on the First Amendment, at the conclusion of which the City Council introduced and conducted the first reading of the ordinance approving the First Amendment; and subsequently, on July 17, 2018, adopted Ordinance No. 3431 approving the First Amendment and said Amendment was recorded with the San Diego County Recorder’s Office on July 27, 2018; and WHEREAS, the purpose o f the First Amendment was a Material Change to the project proposed by the Master Developer to reduce the total amount of development in the Eastern Urban Center without reducing infrastructure; and
WHEREAS, McMillian Otay Ranch, LLC was the Original Master Developer and now Meridian Communities, LLC, is the successor-in-interest (“Developer”); and WHEREAS, the City and Developer have agreed to amend the Development Agreement a second time (the “Second Amendment”) in order to facilitate the development of uses within the Eastern Urban Center, known today as Millenia, that both City and Developer desire; and WHEREAS, the intent of the Development Agreement and Eastern Urban Center Sectional Planning Area Plan is to serve as a mechanism to further the comprehensive development vision for Millenia to advance a vibrant, mixed -use, pedestrian-oriented urban center that will serve as the economic and social focal point of Eastern Chula Vista creating an urban employment center which will establish a strong, well-located employment sub-market and add new local jobs including higher- quality office employment opportunities; and
WHEREAS, to continue with the establishment of a high -quality Class “A” office submarket within Millenia, it is the desire of the Develope r and the City to have the City guide the economic development opportunity of up to 1.7 million square feet of Class “A” office space available on the
10.93-acre Lot 1 of Millenia (APN 643-066-09-00); and
WHEREAS, Lot 1 of Millenia shall be subdivided with a 2.1-acre portion of the southerly parcel being retained by the Developer and developed as a reputable flag hotel as a permissible use under the Eastern Urban Center Sectional Planning Area Plan; and WHEREAS, as part of the Second Amendment to the Development Agreement, the Developer shall provide the remaining 8.83 acres of Lot 1 to the City for the price of $1 and shall hold the land for the City for a period up -to 60 months and at any time requested b y the City, will transfer ownership directly to a user of the City’s choice; and
WHEREAS, in exchange for acquisition of 8.83 acres of Lot 1, City agrees to expedite the review of developing the allowable remaining residential units within the Eastern Urb an Center on Lot 19 of Millenia (APN 643-060-69-00); and
WHEREAS, the Eastern Urban Center Sectional Planning Area Plan has entitled 2,983 residential units and 2,659 units have been permitted to-date allowing Master Developer to build up to the remaining 324 residential units on Lot 19; and
WHEREAS, Lot 19 was previously entitled for up -to 700,000 square feet of office development and such entitlements shall be transferred to the City’s portion of Lot 1, a shift permissible under the auspices of the Eastern Urban Center Sectional Planning Area Plan Density Transfer provisions; and
WHEREAS, the Director of Development Services has reviewed the project for compliance with the California Environmental Quality Act (CEQA) and has determined that the Development Agreement Amendment was adequately covered in previously certified Final Second Tier Environmental Impact Report (EIR 07 -01) – SCH No. 2007041074 for Otay Ranch Eastern Urban Center (EUC) Sectional Planning Area (SPA) Plan and Tentative Map ; thus, no further CEQA review or documentation is required; and
WHEREAS, the City’s Planning Commission held a duly noticed public hearing on December 14, 2022 to consider the Second Amendment at the conclusion of which the Planning Commission adopted a resolution re commending the City Council authorize the Second Amendment tot the Development Agreement; and
WHEREAS, on January 17, 2023, a duly noticed public hearing was scheduled before the City Council of the City of Chula Vista to consider adopting an ordinance to approve the Second Amendment to Development Agreement; and
WHEREAS, City staff has reviewed the Second Amendment to the Development Agreement and determined it to be consistent with the Otay Ranch G eneral Development Plan and the City’s General Plan.
NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows:
Section I. Adopt Ordinance Approving Second Amendment to Development Agreement
1.1 INCOPROATION OF PLANNING COMMISSION RECORD
The proceedings and all evidence introduced before the Planning Commission at their public hearing held on December 14, 2022 and the minutes and resolutions resulting therefrom, are hereby incorporated into the record of this proceeding. These documents, a long with any documents submitted to the decision makers, shall comprise the entire record of the proceedings for any California Environmental Quality Act (CEQA) claims.
1.2 FINDING OF COMPLIANCE WITH CEQA
The City Council hereby finds that the adoption of the ordinance approving the Development Agreement Amendment was adequately covered in previously certified Final Second Tier Environmental Impact Report (EIR 07 -01) – SCH No. 2007041074 for Otay Ranch Eastern Urban Center (EUC) Sectional Planning Area (SPA) Plan and Tentative Map.
1.3 FINDING CONSISTENCY WITH GENERAL PLAN AND OTAY RANCH
GENERAL DEVELOPMENT PLAN
The City Council finds that the proposed Second Amendment to the Development Agreement is consistent with the City’s General Plan and Otay Ran ch G DP. The Second Amendment to the Development Agreement implements the General Plan and GDP by promoting economic growth opportunities to attract industries and business that contribute to diversification and stabilization of the local economy (ED 1.1), and increased office space and additional economic development opportunities to strengthen Millenia’s position as a business, cultural a nd entertainment hub of the City (ED 9.2).
1.4 ACTION
The City Council adopts an Ordinance approving the Second Amendment to the Development Agreement between the City of Chula Vista and McMillin Otay Ranch LLC., in substantially the form presented, wit h such minor modifications as may be required or approved by the City Attorney (a final copy of which is on file in the City Clerk’s office), finding it consistent with the California Government Code, adopted City policies, the General Plan, and the Otay Ranch GDP.
Section II. Severability
If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional.
Section III. Construction
The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent.
Section IV. Effective Date
This Ordinance shall take effect and be in full force on the thirtieth day from and after its adoption.
Section V. Publication
The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law.
Presented by Approved as to form by
_________________________ __________________________ Eric C. Crockett Glen R. Googins
Deputy City Manager City Attorney