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December 17, 2024
ITEM TITLE
Agreements: Approve an A greement with Keyser Marston Associates, Inc. to Provide Evaluation and Transaction Structuring Services to Assist in Evaluating the Bayview Point, LLC Project Report Number: 24-0274
Location: City-owned vacant land at 707 F Street and San Diego Metropolitan Transit System-owned land at 750 E Street where the existing E Street trolley station is located.
Department: Economic Development
G.C. § 84308: Yes.
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Adopt a resolution approving an agreement with Keyser Marston Associates, Inc. to provide evaluation and transaction structuring services to assist City staff in evaluating the Bayview Point, LLC project at 707 F Street and 750 E Street.
SUMMARY
In November 2022, the City and San Diego Metropolitan Transit System (MTS) entered into an Exclusive Negotiation Agreement with Bayview Point, LLC, for the development of a high density, mixed use, transit- oriented development on approximately ten (10) acres comprised of City -owned 707 F Street and MTS - owned 750 E Street. The City requires consulting services in evaluating the financial s associated with the project and structuring transac tions with the developer. This item is for the approval of a two -party professional services agreement with Keyser Marston Associates, Inc. to provide these services.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment.
Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable
DISCUSSION
On December 18, 2018 the City of Chula Vista formalized a partnership with the San Diego Metropolitan Transit System (MTS) to seek partners that would develop a high density, mixed use, transit -oriented development on the City-owned 707 F Street and MTS-owned 750 E Street properties. Subsequently, on April 18, 2019, the City rel eased a Joint Request for Qualifications/Request for Proposals (RFQ/RFP) solicitation to identify the most qualified development teams that would develop a high quality project with seamless planning and design across the nearly ten (10) acres.
On October 18, 2022, the City Council approved a three-party Exclusive Negotiation Agreement with MTS and Bayview Point, LLC such that the three parties could work together to refine the proposal, evaluate the project financials, a negotiate the terms of subsequent t ransactions. Shortly thereafter, on December 18, 2018, the City Council approved a professional services agreement with Keyser Marston Associates, Inc. to provide economic, financial, and market consulting services to assist the City and MTS in evaluating financial components of the project.
As required by the Exclusive Negotiation Agreemen t, Bayview Point, LLC deposited funds with the City necessary to cover the costs paid to Keyser Marston Associates, Inc. for their services.
The existing agreement with Keyser Marston Associates, Inc. concludes December 31, 2024. This agenda item is for the sole source approval a new agreement with Keyser Marston Associates, Inc. to provide continued evaluation and transaction structuring services to assist City staff in evaluating the Bayview Point, LLC project at 707 F Street and 750 E Street. Keyser Marston Associates, Inc. is uniquely qualified to provide these services based on their familiarity with this project. Costs to pay Keyser Marston Associates, Inc. for thes e services will funded entirely through monies deposited with the City by the developer, Bayview Point, LLC.
Development of 707 F Street must comply with the California State Surplus Land Act. As a result, the City and must have a Disposition and Developme nt Agreement in place with Bayview Point, LLC by December 31, 2027. Staff anticipates returning to City Council prior to that date with a fully vetted project and transaction proposal for the site.
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.
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CURRENT-YEAR FISCAL IMPACT
There is no current-year fiscal impact to the General Fund as a result of approval of this agreement with Keyser Marston Asso ciates, Inc., as all payments to Keyser Marston Associates, Inc. for their services will funded entirely through monies deposited with the City by the developer, Bayview Point, LLC.
ONGOING FISCAL IMPACT
There will be no ongoing fiscal impact to the General Fund as a result of approval of this agreement with Keyser Marston Associates, Inc., as all payments to Keyser Marston Associates, Inc. for their services will funded entirely through monies deposited with the City by the developer, Bayview Point, LLC.
ATTACHMENTS
1. Agreement with Keyser Marston Associates, Inc. for Proposal Evaluation & Transaction Structuring Services
Staff Contact: Kevin Pointer, Principal Economic Development Specialist Tiffany Allen, Assistant City Manager