RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING GRANTS FROM THE
CALIFORNIA STATE LIBRARY TARGETED STATE GRANT
PROGRAM FOR THE CINEMATIC ARTS ACADEMIC
CENTER AND LIBRARY’S LAND AND CONSTRUCTION
COSTS, AND AUTHORIZE THE CITY MANAGER OR
DESIGNEE TO NEGOTIATE AND EXECUTE AGREEMENTS
WHEREAS, on December 6, 2022 The City Council of the City of Chula Vista (“City Council”) voted to approve the Purchase and Sale Agreement (“PSA”), Project Development Agreement (“PDA”) and appropriation of $96.4 million for the development of the City’s Cinematic Arts Academic Center and Library Project (“Project”), project number GGV026; and
WHEREAS, the Project will satisfy the need for a new library in Millenia, expand the footprint of the U niversity-Innovation District and serve as an incubator for both the University and Millenia Office; and
WHEREAS, the Project won the support of the State and in the May 2022 revised State Budget, Senator Atkins secured $5 million for land acquisition and entitlement costs for this project via AB 179 (SEC 207. Section 19.56, Chapter 249, Statutes of 2022); and
WHEREAS, i n the August 2022 revised budget, Assemblymember Alvarez submitted budget trailer bill language to allocate $25 million in State funding to the City of Chula Vist a to construct the project via AB 179 (SEC 207. Section 19.56, Chapter 249, Statutes of 2022); and
WHEREAS, the $30 million in total State funds are being provided to the City through the California State Library Targeted State Grant Program and staff submitted two grant applications for review by the State Library Department in December 2022; and
WHEREAS, in December 2022, the City received a notice of intent to award the grant funds contingent upon the California State Library receiving the funds; and
WHEREAS, the grant agreements cannot be entered into until the California State Library is in receipt of the necessary funds and has communicated to staff that it is anticipated funds will be received by the end of February 2023; and
WHEREAS, identified as a preclosing condition within Section 5.1.4 of the executed PSA, by March 1, 2023 the City (“Buyer”) should have entered into the contracts with the State of California for the $30,000,000.00 in funding to be used for the land acquisition and ver tical development of the project; and
WHEREAS, Buyer has the right to waive the requirement to enter into the State grant funding agreements by March 1, 2023 pursuant to Section 5.2 of the executed PSA and due to timing constrains, Buyer has elected to exercise that right and timely notified seller of the waiver; and
WHEREAS, although the funds are not yet available, the draft agreements are , and t he City’s comments on the draft agreements and a Notice of Unrecorded Grant Agreement have been provided to the State and their counsel for review; and
WHEREAS, in order to move forward expeditiously, staff is seeking authority for the City Manager or designee to negotiate and execute the agreements and Notice, so that the City may receive the funds as soon as possible; and
WHEREAS, Resolution 2022 -275 approved by the City Council on December 6, 2022 appropriated the $66.4 million in City funding as well as the $30 million in State funding necessary for the Project.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista accepts grants from the California State Library Targeted State Grant Program for the Cinematic Arts Academic Center and Library’s land and construction costs; and
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it authorizes the City Manager or designee to negotiate and execute the Agreements and Notice, as well as any other documents required or deemed necessary to secure the Project funds from the State, in a final form subject to the review and approval of the City Attorney.
Presented by Approved as to form
INTERIM ACTING CITY ATTORNEY
Lounsbery Ferguson Altona & Peak LLP
By:
Eric C. Crockett Jill D.S. Maland
Deputy City Manager