Millenia
Library
Update
December 10, 2024
City Council Meeting
2 3
SR125
Millenia Library Building
Millenia Lot 1
FS10
Ayres Hotel
Otay Ranch
Town Center
168,000 square feet
4 levels above grade, 1 level below grade
Class “A” Office
4 Millenia
Library
Building
City Council approved December 2022
Vertical January 2024
5 6
7 Lower Level:
Ground Floor:
Second Floor:
Third Floor:
Fourth Floor:
18,000 SF
37,500 SF
37,500 SF
37,500 SF
37,500 SF
Initial 1-year LOI term, 2 optional 90-day extensions
10-year lease term
$1 annual rent
SDSU LOI
Millenia Library Building
School of Nursing and Global Campus
Approx. 7,100 SF (6 KSF internal, 1,100 external patio) on lower level SDSU to pay for maintenance, utilities, insurance, etc. 8 City to construct TIs at City expense
1-year lease option
Initial 10-year lease term, at minimum
CVEC
LOI: Phase 1
Millenia Library Building
Virtual Media Production, Corp Offices, & Coworking
Floors 3 and 4 (75,000 SF)
CVEC LLC to pay for maintenance, utilities, insurance, etc. 9 Rent abated first 9 months and below market for first 3 years, market rates thereafter CVEC LLC to construct TIs at sole expense
Assign option to purchase Lot 1, develop 4.96-acres
CVEC
LOI: Phase 2
Lot 1
Virtual Production Studio Campus
Complete construction within 3 years of start of construction 10 Purchase price subject to future negotiation
Reversion and participation provisions
Commence construction within 6 months of close of escrow on Lot 1 CVEC LLC to develop site at sole expense
Develop remainder of Lot 1 (3.77 acres)
Commence construction within 5 years of
completing Phase 2
CVEC
LOI: Phase 3
Lot 1
Film/Arts/Entertainment-Themed Commercial
11 Complete construction within 3 years of start of
construction
CVEC LLC to develop site at sole expense
Direct Expenditures
made by Productions
$545M in regional economic impact in first 10 years
36,000 working days for cast and crew, annually
CVEC
LOI
Global virtual film production @ $2.97B in 2023, +$10B by 2032 Additional analysis and subsidy
report to be prepared
12 150-200 permanent jobs
Economic Impact
Indirect Economic Activity & Jobs
(Purchase of Goods and Services)
Induced Economic Activity & Jobs
(Employee Spending)
Economic
Impact
60,000 SF
First new library in Chula Vista since 1995
Other Uses
Ground Floor & Second Floor
13 Dedicated Storytime SpaceCommunity Conference Rooms
Private Study Rooms
Maker Space & Podcast Studio150+ Seat Auditorium
Gallery Space
Millenia Library
LOI to be negotiated
Other Uses
SUHSD: Launch Virtual Academy
Approx. 6,500 SF on lower level
14 RFP to be issued
Coffee Shop/Cafe
Approx. 6,000 SF on ground floor
Description Amount
Land $ 11,000,000
Pre-Development & Soft Costs $ 3,145,203
Core & Shell Construction $ 38,000,000
Site Work $ 3,878,547
Tenant Improvements $ 13,750,000
Parking Structure $ 14,000,000
Amenity Building $ 6,900,000
Developer & Supervision Fees $ 5,739,641
Grand Total $ 96,413,391
City Council
Approved
Budget
December 2022
15 Description Amount
PFDIF $ 31,780,433 33%
Developer Contributions $ 34,632,958 36%
State Grants $ 30,000,000 31%
Grand Total $ 96,413,391
Description Amount
Land $ 11,000,000
Pre-Development & Soft Costs $ 3,145,203
McCarthy GMP $ 64,622,590
Tenant Improvements $ 10,305,888
Soft Costs & Other Reimbursables $ 3,652,374
Developer & Supervision Fees $ 5,765,731
Grand Total $ 98,491,786
Appropriations to Date $ 96,413,391
Budgetary Shortfall $ (2,078,395)
Amended
Budget
December 2024
16 Construction Changes
Description Amount
Library TI Shortfall $ 7,694,112
FF&E $ 3,213,292
Audio Visual $ 1,000,000
Total $ 11,907,404
Buildout
Funding
Required
December 2024
17 Library
Description Amount
SDSU TI $ 2,410,000
SDSU Warm Shell $ 770,000
Lower-Level Common Areas $ 180,000
Total $ 3,360,000
SDSU
Description Amount
Otay Ranch Village 14
Contribution $ 5,163,958
Funding Change
Description Amount
Developer & Supervision Fees
for Increased Budget $ 1,164,812
Early Close Net Savings $ (1,175,554)
Lot 7 Early
Close
Savings
December 2024
18 Description Amount
Site Work, Core & Shell Shortfall $ 2,078,395
Library TI Shortfall $ 7,694,112
Library FF&E $ 3,213,292
Library Audio Visual $ 1,000,000
SDSU TI $ 2,410,000
SDSU Warm Shell $ 770,000
Lower-Level Common Areas $ 180,000
Developer & Supervision Fee Increase $ 1,164,812 Early Close Net Savings $ (1,175,554)
Replace OR Village 14 Developer Funds $ 5,163,958 Grand Total $ 22,499,015
Additional
Funds
Requested
December 2024
19 Description Original
Budget Change Updated
Budget
Land $ 11,000,000 $ 0 $ 11,000,000 Pre-Development & Softs Costs $ 3,145,203 $ 0 $ 3,145,203 McCarthy GMP $ 62,778,547 $ 1,844,043 $ 64,622,590 Library: TI, FF&E, A/V $ 13,750,000 $ 8,436,292 $ 22,213,294 SDSU: Warm Shell, Common Areas, TI $ 0 $ 3,360,000 $ 3,360,000 Soft Costs & Other Reimbursables $ 0 $ 3,652,374 $ 3,652,374 Developer & Supervision Fees $ 5,739,641 $ 15,347 $ 5,754,988 Grand Total $ 96,413,391 $ 17,335,057 $ 113,748,448
December 2024
Budget Comparison
20 Description Amount
PFDIF $ 31,780,433
Developer Contributions $ 29,469,000
Capital Projects Fund (GF) $ 22,499,015
State Grants $ 30,000,000
Grand Total $ 113,748,448
Updated Funding Summary
December 2024
21 Issue RFP for Coffee Shop/Cafe
Negotiate Lease with SDSU
Next Steps
Issue RFP for TI Construction
22 9-12 Months for TI Construction
Negotiate Lot 1 Option Assignment to CVEC
Complete Core, Shell & Site May 2025
Negotiate Lease with CVEC
Development of Lot 1 by CVEC
Negotiate LOI and Lease with SUHSD
Recommended
Actions
Approve Non-Binding LOI
with SDSU for 7,100 SF
tenancy to support School
of Nursing & Global
Campus
Approve Non-Binding LOI
with CVEC for 75,000 SF
tenancy and option to
purchase Lot 1 for virtual
film production & co-work
Appropriate $22.5M
and
eliminate OR Village 14
interfund loan
Reso A
Reso B
Reso C
23 24
Partner
Comments