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December 10, 2024
ITEM TITLE
Millenia Library Building: Report on Project Construction and Budget, Approve Non-Binding Letter of Intent with SDSU, Approve Non-Binding Letter of Intent with Chula Vista Entertainment Complex, LLC, Appropriate Funds and Eliminate Interfund Loan
Report Number: 24-0290
Location: 1775 Millenia Avenue and 1730 Millenia Avenue Department: City Manager
G.C. § 84308: Yes
Environmental Notice : The Project 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.
Recommended Action
Adopt resolutions: A) Approving a Non-Binding Letter of Intent with the Board of Trustees of the California State University on behalf of San Diego State University for an approximately 7,100 square foot tenancy in the Millenia Library Building to support the School of Nursing and Global Campus ; B) Approving a Non- Binding Letter of Intent with Chula Vista Entertainment Complex , LLC for an approximately 75,000 square foot tenancy in the Millenia Library Building and exclusive option to purchase Millenia Lot 1; and C) Appropriating funds to complete construction of the Millenia Library Building and eliminating an interfund loan between the Trunk Sewer Capital Reserve Fund and the Developer Contribution (Public Benefit) Fund (4/5 Vote Required).
SUMMARY
In December of 2022, the City Council took action approving various agreements and appropriating $96.4 million to initiate construction of the Millenia Library Building, a 168,000 square foot Class “A” office building, which will house a 60,000 square foot library and other tenants. Staff has negotiated non-binding letters of intent with two potential tenants, which are recommended for Council approval with this action.
Appropriating additional funds necessary to complete buildout of the project to capital improvement project GGV0267 (Millenia Library) and eliminating a previously approved interfund loan associated with the project is also recommended.
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ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the Project for compliance with the California Environmental Quality Act (CEQA) and has determined that the Project 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) Sectiona l Planning Area (SPA) Plan and Tentative Map. Therefore, no further CEQA review or documentation is necessary.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
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 Chesnut to construct a 168,000 square foot class “A” library and office building, a 6,100 square foot amenity building, a parking structure, related site work and improvements (the “Project”); and making necessary budget amendments, authorizing interfund loans, and appropriating $96.4 million for the Project, respectively. The projected budget presented to City Council in December 2022 totaled $96.4 million, as summarized in Table 1 below.
Table 1 – December 2022 Project Budget
Description Amount
Land Acquisition $ 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
The December 2022 action appropriated Public Facilities Development Impact Fee (“PFDIF”) funds, certain developer contributions, and state grant funds, as summarized in Table 2 below.
Table 2 – December 2022 Sources of Funds
Funding Sources Amount %
PFDIF $ 31,780,433 33%
Developer Contributions1 $ 34,632,958 36%
State Grants Fund $ 30,000,000 31%
Total $ 96,413,391
1 Developer Contributions include the following: 1) Otay Ranch Village 3 Economic Development Funds in the amount of $3,000,000; 2) Sunbow Job Enhancement Funds in the amount of $8 ,000,000; 3) Otay Ranch Village 2 Public Benefit Contribution Funds in the amount of $7,810,000; 4) Otay Ranch Village 13 Public Benefit Contribution Funds in the amount of $10,659,000; and 5) Otay Ranch Village 14 Public Benefit Contribution Funds in the amount of $5,163,958.
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As illustrated in Table 2, as of the December 2022 action, just under one-third (31%) of the Project’s funding was provided by the state, with the City providing the remaining two-thirds (69%) of the funds.
Initial Budget Shortfall
The Project budget presented in December 2022 was incomplete and did not properly provide for contingencies, nor did it include funding for Furniture, Fixtures and Equipment (“FF&E”) for the buildout of the library space or other tenant spaces within the building. A standard contingency for a project of this size would have been 10% to 15% of the future construction costs, or between $7.7 and $11.5 million. FF&E for the library, including Audio/Visual (“A/V”) equipment, is currently estimated at approximately $4.2 million.
Ongoing soft costs, including professional services and permitting were also not included in the December 2022 budget. These errors represent an under budgeting of more than 30% ($34 million) when compared with the December 2022 budget of $96.4 million.
Following the City Council’s December 2022 action, Chesnut let the project out to bid. McCarth y Building Companies (“McCarthy”) was selected as the prime contractor in March of 2023, with an initial bid of $51.7 million for the core & shell construction alone, an overage of nearly $13.7 million compared to the December 2022 budget of $38 million . In order to keep the project in budget with the funds appropriated as of that time, the amenity building was eliminated, and the parking structure was replaced with surface parking. A traditional value engineering exercise was also undertaken, and McCarthy was ultimately contracted for a guaranteed maximum price (“GMP”) of $ 60.5 million. Because the Project budget did not include an appropriate contingency, any overages have the effect of reducing the tenant improvement (“TI”) budget .
With the original McCarthy GMP, the TI budget was reduced from the $13.75 million referenced above to $12.1 million.
The inadequacy of the December 2022 budget was identified by City staff during a detailed project review initiated in early 2024. Since that time, staff has worked with Chesnut to manage the construction process in an effort to minimize additional budgetary impacts while still delivering on the Project as envisioned.
Construction Changes
Since undertaking construction, a number of unanticipated expenses have b een incurred, including modifications to the roof to comply with Cal/OSHA2 and FAA3 requirements, a significant expansion of the onsite water quality treatment facility (bio -retention basin) to meet current storm water requirements , changes to address significant planting and utility conflicts along Montage Avenue, and certain utility modifications as directed by Otay Water District and SDG&E. These unanticipated costs have further reduced the funds available for TIs to $ 10.3 million. All known and reasonab ly foreseeable expenses related to the construction of the core and shell and site improvements have been calculated and are addressed in the amended budget summarized in Table 3 below. This amount is well within what would typically be expected to be funded through an appropriate contingency budget.
2 California Department of Industrial Relations, Division of Occupational Safety and Health. 3 Federal Aviation Administration. Modifications were required to avoid interference with the Very High Frequency Omnidirectional Range Tactical Air Navigation (“VORTAC”) site located near the Project site.
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Table 3 – December 2024 Amended Project Budget, with Construction Changes Description Amount
Land Acquisition $ 11,000,000
Pre-Development & Soft Costs $ 3,145,203
GMP – Site Work, Shell & Core $ 64,622,590
Tenant Improvements $ 10,305,888
Soft Costs and Other Reimbursable Expenses $ 3,652,374 Developer & Supervision Fees $ 5,765,731
Grand Total $ 98,491,786
Appropriations to Date $ 96,413,391
Budgetary Shortfall Due to Construction Changes $ (2,078,395)
Millenia Library Buildout
In order to move forward with contracting for TIs for the Library, it is necessary to appropriate additional funds to the project. Assuming the entire remaining TI budget were to be applied to the library, that would equate to a TI budget of $ 171.77 per square foot. Current estimates call for a minimum budget per square foot of $300, including contingencies and soft costs. In addition, as previously discussed, the original budget presented did not include an FF&E budget, nor did the budget properly account for A /V expenses for the state-of-the-art library facility that had been envisioned.
In order to deliver on the library vision expressed, staff recommends increasing the library budget by $11.9 million as summarized in Table 4 below.
Table 4 – Library Buildout Funding Shortfall
Description Amount
Library TI Shortfall $ 7,694,112
FF&E $ 3,213,292
Audio Visual $ 1,000,000
Total $ 11,907,404
Preliminary conversations are underway with Chula Vista Elementary School District (“CVESD”) to site one of their highly sought after innovation station experiences within the Millenia Library premises. Should these talks progress and a station experience be located within the Millenia L ibrary, the CVESD would be responsible for all TI expenses incurred in the buildout of their space.
Tenant 1: San Diego State University
Since 2023, the City Manager has worked directly and diligently with our partners at San Diego State University (“SDSU”) to understand their space needs and financial constraints. As a result of this extensive dialogue, staff recomm ends entering into a Non -Binding Letter of Intent (“LOI”) with SDSU establishing a framework and timeline for discussion and negotiation of a lease to occupy approximately 7,100 square feet in the lower level of the Millenia Library Building ( see Attachment 1) (the “SDSU Premises”). The SDSU Premises include approximately 6,000 net square feet of interior space and an approximately 1,100 square foot exterior patio area and are intended to be dedicated to classroom and related purposes in connection with the SDSU School of Nursing and other educational uses, including programs associated with the SDSU P a g e | 5
Global Campus . As part of this negotiation, the City has agreed to improve the SDSU Premises per their programming and operational needs. This commitment also necessitates the completion of TIs in the lower- level common area and bringing the interior SDSU Premises to a warm shell condition, as the current budget only brings the building to a cold shell condition (i.e., does not include all HVAC, lighting, etc.). A total budget of $3.36 million for this purpose is recommended ($180,000 for the common areas, $770,000 to bring the area to a warm shell condition, and $2.4 1 million for SDSU Premises TIs) . This estimate includes contingencies and soft costs. SDSU will be solely responsible for any FF&E or additional improvements made to the exterior patio portion of the SDSU Premises.
Key Deal Terms
1. Initial term of the LOI is one year from the effective date. The LOI may be extended by mutual agreement of the parties for two (2) additional ninety (90) day periods.
2. Initial term of the lease shall be ten (10) years and shall commence upon the date the City has completed the TIs and delivered the space to SDSU, and SDSU has completed installation of all systems and equipment necessary to use the SDSU Premises as intended, but no later than 120 days after delivery of the space to SDSU.
3. The annual rent to be paid by SDSU to the City shall be one dollar ($1.00).
4. SDSU shall be responsible for certain insurance costs, janitoria l and cleaning services, and utilities serving the SDSU Premises. SDSU shall also be responsible for the cost of any improvements they make to the SDSU Premises not required to be made by the City.
5. City shall construct and deliver TIs, consistent with TI plans and specifications to be provided by SDSU, at City’s sole expense.
6. City shall operate and maintain all common areas at its sole cost and expense.
7. SDSU users will have a non-exclusive right to use the parking areas serving the site at no additional cost.
8. SDSU reserves the right to install information and technology equipment and systems in the SDSU Premises at their cost and subject to approval by the City.
9. SDSU reserves the right to terminate the LOI in the event that 1) they are unable to secure sufficient funding for the use and operation of the SDSU Premises as intended; and/or 2) SDSU determines that it no longer desires to lease the SDSU Premises. These rights are only apply if the termination is initiated prior to the parties entering into a lease and the City beginning TI construction for SDSU.
Staff recommends entering into a non-binding LOI with SDSU in the form presented in Attachment 1.
Next Steps
With City Council’s approval of the proposed non-binding LOI with SDSU, staff will undertake negotiation of a lease for the SDSU Premises and TI plans and specifications will be developed by SDSU.
Tenant 2: Chula Vista Entertainment Complex (CVEC)
Staff has also negotiated a non-binding LOI with Chula Vista Entertainment Complex , LLC (“CVEC LLC”) to establish the framework, terms, and conditions upon which the Parties intend to negotiate future definitive agreements for CVEC LLC to occupy the top 2 floors of the Millenia Library Building, as well as for the City to assign our option to acquire the property across the street at 1775 Millenia Avenue (Lot 1) (see Attachment 2).
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The Chula Vista Entertainment Complex project (“CVEC Project”) represents a visionary project aimed at creating a state-of-the-art entertainment facility that harmonizes creativity, sustainability, and technological innovation, with a focus on the virtual production industry. Virtual production studios can be used to create a wide range of content, including film television, video games, advertising, training vi deos, marketing materials, product demos, virtual tours, and interactive simulations. The virtual production market is growing rapidly, driven by the increasing adoption of virtual content creation methods, the ri sing demand for visual effects in movies and TV shows, and the growing use of virtual production in live events.
The CVEC Project is planned to unfold over three key phases, each contributing to the realization of a comprehensive symbiotic ecosystem between the film, creative, and small business sectors. Phase 1 consists of approximately 75,000 square feet located on and being the entirety of floors 3 and 4 of the Millenia Library Building and will include professional -standard video editing bays and sound effect facilities, audio post - production studios, associated offices, and coworking space. Phases 2 and 3 are planned for Lot 1 directly across Millenia Avenue. Phase 2 consists of the construction and development of an approximately 89,600 square foot virtual production studio campus on an approximately 4.96-acre portion of the 8.64-acre Lot 1.
Phase 3 consists of an approximately 25,000 square foot and an approximately 42,000 square foot portion of the remainder of Lot 1 (see Attachment 3). Phase 3 is envisioned to consist of improvements and uses supporting Phases 1 and 2, including any combination of film/arts/entertainment -themed commercial, retail, hotel, and parking. In addition, if there is sufficient demand, additional virtual production studios could be constructed in Phase 3.
CVEC LLC intends to directly and indirectly train and employ hundreds of filmmakers, content creators, and technical staff. This workforce will inject skills and talent into the local economy, fostering a creative hub and helping to close the national talent gap in vir tual production. For context, t he global virtual production industry was valued at $2.97 billion in 2023 and is expected to grow to over $ 10 billion by 2032 4. Initial projections provided by CVEC LLC indicate the generation of approximately $545 million in regional economic impact over the first ten years of operation. In terms of job creation, CVEC LLC estimates that they will generate 36,000 working days for cast and crew annually, as well as 150 -200 permanent jobs. These impacts will be further analyzed as negotiations progress.
Lot 1 Option Assignment
Pursuant to the terms of the Millenia Parcel Map 22000 Parcel 1 Option, Purchase Agreement and Escrow Instructions between Millenia 2022, LLC (Seller) and City of Chula Vista (Buyer) (see Attachment 4), the City has secured the option to acquire the 8.64-acre Lot 1 for the sum of one dollar ($1.00). The City also secured the right to assign its option and rights to acquire Lot 1 to any individual or entity designated by City, subject to certain conditions. The proposed LOI anticipates the City assigning its option to purchase Lot 1 to CVEC LLC. The compensation to the City for the assignment of the option will be the subject of future negotiation between the parties.
4 Fortune Business Insights (2024, November 4). Virtual Production Market Size, Share & Industry Analysis, By Component (Technology/System, and Services), By Type (Pre-production, Production, and Post-production), By Application (TV series, Commercial Ads, Movies, E-sports, and Others), and Regional Forecast, 2024-2032. https://www.fortunebusinessinsights.com/virtual-production-market-107105 P a g e | 7
Key Deal Terms
1. Phase 1: Lease of approximately 75,000 square feet located on and being the entirety of the third and fourth floors of the Millenia Library Building (the “Phase 1 Premises”). a. Lease option to be negotiated, with an exclusive twelve (12) month lease option and right. b. Minimum lease term of ten (10) years following completion of CVEC LLC’s TIs and occupancy, plus additional periods subject to future negotiation.
c. Base rent shall be below market value for the first three (3) years of the lease term and abated during the initial nine (9) month construction period of the lease term. Remaining term of the lease shall be at market rates.
d. CVEC LLC to pay their pro rata share of common area maintenance expenses and utilities and be solely responsible for the cost of utilities delivered directly to the Phase 1 Premises. e. CVEC LLC to be solely responsible for cost of constructing Phase 1 Premises TIs.
2. Phase 2: Assignment of option to acquire Lot 1, development of approximately 4.96-acre area. a. Purchase option to be negotiated, with an exclusive eighteen (18) month purchase option and right.
b. Purchase price for Lot 1 to be subject to future negotiation between the parties. c. Subject to future negotiation, the parties agree that there shall be a period of time during which CVEC LLC shall be restricted from reselling Lot 1, and during which time the City shall retain the right to repurchase the property or to assign such a right to an entity or individual designated by the City (the “Restricted Resale Period”). Further, should CVEC LLC sell Lot 1 after the Restricted Resale Period but prior to the end of calendar year 2040, then City shall participate in the proceeds of such sale, the rate of such participation to be subject to future negotiation by the parties.
d. CVEC LLC shall commence construction of Phase 2 within six (6) months of the Lot 1 option close of escrow, subject to certain extension.
e. CVEC LLC shall complete construction of Phase 2 within thirty -six (36) months of start of Phase 2 construction, subject to force majeure.
3. Phase 3: Construction of an approximately 25,000 square foot and approximately 42,000 square foot portion of the remainder of Lot 1.
a. CVEC LLC shall commence construction of Phase 3 within sixty (60) months of completing construction of Phase 2, subject to certain extension.
b. CVEC LLC shall complete construction of Phase 3 within thirty -six (36) months of start of Phase 3 construction, subject to force majeure.
Staff recommends entering into a non-binding LOI with CVEC LLC in the form presented in Attachment 2.
Next Steps
With City Council’s approval of the proposed non-binding LOI with CVEC LLC, staff will undertake negotiation of the Phase 1 Lease Option and the Lot 1 Purchase Option.
Rent to be paid by CVEC LLC for floors 3 and 4 of the Millenia Library Building will be subject to future negotiation between the parties, and such monies will be available to offset operational costs of the building.
Remaining Space Program
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Preliminary conversations are underway with Sweetwater Union High School District (“SUHSD”) to occupy the remaining space in the lower level (adjacent to SDSU’s Premises). The space would be used to support the district’s successful Launch Virtual Academy, a flexible, engaging, and equitable online public school experience serving students in grades 7 thro ugh 12 that reside in San Diego County. Staff will continue to negotiate potential lease terms with SUHSD and, if successful, return to the Council with a letter of intent early next year.
With SDSU and SUHSD occupying the lower level and CVEC occupying fl oors 3 and 4, the only remaining leasable space in the building is an approximately 6,000 square foot space that has been reserved for a café/coffee shop amenity. The City intends to issue a request for proposals to build out and operate the space mid-2025.
Lot 7 Early Close
In conjunction with the December 2022 action approving construction of the Millenia Library Building, the City Council authorized entering into a Purchase and Sale Agreement (“PSA”) with LMC-Millenia Investment Company, L.P. (Seller) and the City of Chula Vista (Buyer) (see Attachment 5).
The PSA obligated the City to purchase a 7.06 -acre parcel (Lot 7) and all associated plans and construction drawings. Chesnut, the owner and developer of Lot 7, was obligated to complete improvements to the City’s specifications and provide a turnkey building to the City upon close of escrow. In exchange, the City agreed to reimburse Chesnut for certain pre-development and soft costs (approx. $3.1 million) and to pay Chesnut $11 million to acquire Lot 7. In addition, the Ci ty committed to paying Chesnut a Developer Fee of 4% of Reimbursable Costs, excluding Land Acquisition, and a Construction Supervision Fee of 3 .5% of Hard Construction Costs (capitalized terms are as defined in the PSA). To date, the City has paid Chesnut in excess of $3 million in combined Developer and Construction Supervision Fees.
In light of the significant budgetary shortfalls discussed above and to reduce impacts to other projects, the City will be exercising its option to close escrow on Lot 7 early , to coincide with the completion of the site work, core and shell. This will generate project savings in Developer and Construction Supervision Fees that would otherwise be payable to Chesnut for the construction of TIs.
Exercising the early close option is projected to generate net savings of just under $1.2 million.
The City has informed Chesnut of our intent to exercise the early close option in the PSA.
Otay Ranch Village 14 Developer Public Benefit Funds
The December 2022 City Council action authorized and relied upon a number of interfund loans based upon a reasonable expectation of future dollars being available for this purpose. Included within the loan from the Trunk Sewer Capital Reserve (Fund 413) was a Developer Contribution (Public Benefit) associated with the future development of Otay Ranch Village 14 in the amount of $5,163,958. Subsequent to the City Council’s approval of the interfund loan in 2022, the Otay Ranch Village 14 project was acquired from the developer and converted into permanent conservation land (San Diego National Wildlife Refuge). As a result of this transfer of ownership and change in planned use, the City will no longer be receiving the anticipated Public Benefit funds from this project.
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Staff recommends eliminating the interfund loan authorized between the Trunk Sewer Capital Reserve Fund and the Otay Ranch Village 14 Developer Contribution Fund and replacing project funds in an equivalent amount with one-time monies from the Capital Improvement Project Fund. The Capital Improvement Project Fund’s capacity to make this contribution is attributable to one -time fiscal year 2023 -24 General Fund revenues made available by reimbursements from other agencies as well as savings in other projects.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Funds appropriated to date total $96,413,391. In order to complete the library space and complete the SDSU TIs and lower-level common areas, a $22.5 million appropriation from the available fund balance and other project savings within the Capital Projects Fund to capital improvement project GGV0267 is requested, as summarized in Table 5 below.
Table 5 – Additional Funds Requested
Description Amount
Site Work, Core & Shell Shortfall $ 2,078,395
Library TI Shortfall $ 7,694,112
Library FF&E $ 3,213,292
Library A/V $ 1,000,000
SDSU TI $ 2,410,000
SDSU Warm Shell $ 770,000
Lower-Level Common Areas $ 180,000
Increased Developer & Supervision Fees5 $ 1,164,812 Early Close Net Savings $ (1,175,554)
Replace OR Village 14 Developer Contribution $ 5,163,958 Total Shortfall $ 22,499,015
With the addition of these funds, the estimated Project cost increases to $113.75 million, as summarized in Table 6 below.
5 Additional Developer (4%) and Supervision (3.5%) Fees payable per the PSA for the additional funds being added for the Library TI Shortfall, Library FF&E, Library AV, SDSU TI, SDSU Warm Shell, and Lower-Level Common Areas.
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Table 6 – December 2024 Updated Budget
Description Original Budget Change Amount
Land $ 11,000,000 $ 0 $ 11,000,000 Pre-Development & Soft 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 $ 8,463,292 $ 22,213,294 SDSU: Warm Shell, Common Areas, TI $ 0 $ 3,360,000 $ 3,360,000 Soft Costs and Other Reimbursable Expenses $ 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
The Capital Improvement Project Fund’s capacity to make this contribution is attributable to one-time fiscal year 2023-24 General Fund revenues made available by reimbursements from other agencies as well as savings in other projects. An updated summary of the funding sources for the Project is provided in Table 7 below.
Table 7 – December 2024 Sources of Funds
Funding Sources Amount %
PFDIF $ 31,780,433 28%
Developer Contributions6 $ 29,469,000 26%
Capital Projects Fund (GF) $ 22,499,015 20%
State Grants Fund $ 30,000,000 26%
Total $ 113,748,448
As illustrated in Table 7, with this action , just over one-quarter (26%) of the Project’s funding is being provided by the state with the City providing the remaining three-quarters (74%) of the funds.
Approving this appropriation allows staff to proceed with bidding out construction of the library space , the SDSU Premises and the lower-level common areas.
ONGOING FISCAL IMPACT
Staff anticipates contracting for professional building management and maintenance services, the cost of which will be determined through a future competitive procurement process.
Both non-binding LOIs pr esented for Council consideration this evening reflect tenant responsibility for certain operations and maintenance expenses, reducing the ongoing costs to be funded by the City . Rent to be paid by CVEC LLC for floors 3 and 4 of the Millenia Library Buildi ng will be subject to future negotiation between the parties, and such monies will be available to offset operational costs of the building.
6 Developer Contributions include the following: 1) Otay Ranch Village 3 Economic Development Funds in the amount of $3,000,000; 2) Sunbow Job Enhancement Funds in the amount of $8,000,000; 3) Otay Ranch Village 2 Public Benefit Contribution Funds in the amount of $7,810,000; and 4) Otay Ranch Village 13 Public Benefit Contribution Funds in the amount of $10,659,000.
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As we near completion of the Millenia Library Building, staff will return with operational staffing and contractual services recommendations, along with associated costing for the Council’s consideration.
ATTACHMENTS
1. Non-Binding Letter of Intent with SDSU
2. Non-Binding Letter of Intent with CVEC LLC
3. CVEC Phase 2 and 3 Site Plan
4. Lot 1 Option, Purchase Agreement and Escrow Instructions
5. Lot 7 Purchase and Sale Agreement
Staff Contact: Tiffany Allen, Assistant City Manager