Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROPRIATING FUNDS TO COMPLETE
CONSTRUCTION OF THE MILLENIA LIBRARY AND OFFICE
BUILDING AND ELIMINATING AN ASSOCIATED
INTERFUND LOAN BETWEEN THE TRUNK SEWER
CAPITAL RESERVE FUND AND THE DEVELOPER
CONTRIBUTION (PUBLIC BENEFIT) FUND
WHEREAS, on December 6, 2022, the City Council adopted Resolution Nos. 2022 -273 through 2022 -275, approving a Purchase and Sale Agreement with LMC -Millenia Investment Company (“Chesnut”) to acquire 7.06 acres of undeveloped land on Lot 7 of Millenia located at 1775 Millenia Avenue (APN 643-060-57-00); approving a Project Development Agreement with LMC-Millenia Investment Company to construct a 1 68,000 square foot class “A” library and office building, a 6,100 square foot amenity building, a parking structure, related site work and improvements; and making necessary budget amendments, authorizing interfund loans, and appropriating $96.4 million for the project, respectively; and
WHEREAS, following the December 6, 2022 action of the City Council let the project out to bid and selected McCarthy Building Companies (“McCarthy”) as the prime contractor; and
WHEREAS, during the initial contract negotiations with McCarthy, it was necessary to eliminate the amenity building and parking structure from the scope of development and make other value engineering decisions to control costs and keep the project within the December 6, 2022 appropriation; and
WHEREAS, due to a comb ination of cost overruns on the construction of the building’s core and shell and development of the site, it is necessary to appropriate an additional $17,335,057 to complete construction of the building, including furnishing the library and constructing certain tenant improvements for San Diego State University pursuant to a non -binding letter of intent being considered by the City Council in conjunction with this item; and
WHEREAS, the December 6, 2022 action included an interfund loan from the Trunk Sewer Capital Reserve Fund that relied upon $5,163,958 anticipated to be received in conjunction with the future development of Otay Ranch Village 14; and
WHEREAS, Otay Ranch Village 14 has been converted into permanent conservation land that will not be developed and the City will not receive the public benefit contribution previously anticipated; and
WHEREAS, it is therefore necessary to replace the Otay Ranch Village 14 developer contribution fees and eliminate the associated interfund loan; and
Resolution No.
WHEREAS, there are sufficient monies in the Capital Improvement Fund to complete the project due to one -time fiscal year 2023 -24 General Fund revenues, including reimbursements from other agencies as well as savings in other projects.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it amends the fiscal year 2024-25 CIP Program budget by appropriating $22,499,015 from the available balance of the Capital Project Fund to CIP GGV0267 and eliminates the previously approved interfund loan from the Trunk Sewer Fund (413) to the Developer Contribution (Public Benefit) Fund (262) in the amount of $5,163,958.
Presented by Approved as to form by
Tiffany Allen Marco A. Verdugo
Assistant City Manager City Attorney