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HomeMy WebLinkAboutAgenda StatementCITY OF NATIONAL CITY, CALIFORNIA CITY COUNCIL AGENDA STATEMENT MEETING DATE: September 6, 2011 AGENDA ITEM NO. I ITEM TITLE: A resolution of the City Council of the City of National City approving a Memorandum of Understanding between the San Diego Unified Port and the City of National City providing $830,000 in Port funding as a match to 2011 Tax Allocation Bonds for the National City Aquatic Center, and ratifying the Assignment by the Port and the Assumption by the City of the Lease of Property at Goesno Place (Port Capital Funding).] PREPARED BY: Patricia Beard, DEPARTMENT: Redevelopment/Special Projects PHONE: 4255 APPROVED BY: EXPLANATION: In the spring and summer of 2010, the City Council participated in the creation and work efforts of a Port of San Diego Maritime Advisory Committee formed to address adverse impacts of industrial waterfronts in the communities of National City and Barrio Logan. One result of these activities was that the Board of Port Commissioners allocated $830,000 in new funding for construction of the $3.3 million National City Aquatic Center, intended to open up National City's waterfront for boating to all people regardless of ability to pay. Pursuant to a lease dated June 8, 2010, the Port District entered into a 30-year lease with the CDC of property located at Goesno Place, to be utilized for the Aquatic Center. Consistent with the Cooperation Agreement between the City and the CDC dated February 15, 2011, the lease was assigned by the Port District and assumed by the City Manager on behalf of the City pursuant to the Assignment and Assumption Review and Approval dated July 8, 2011, and executed by the City Manager on July 12, 2011. It is now appropriate that the Assignment and Assumption be ratified by the City Council. Since the Community Development Commission issued Tax Allocation Bonds in February to fund completion of the project and since the Building Permit for the project was approved in August requiring construction to be underway within six months, Port staff is recommending providing the funding via a cash advance per the proposed MOU. If the City Council approves the MOU, the Port Commission will consider it at their September 13th meeting. The funds could then be provided within 60 calendar days of execution. The project would be required to commence construction by December 31, 2012 and to be completed by the expiration of the Coastal Development Permit. FINANCIAL STATEMENT: APPROVED. Finance ACCOUNT No. 524-409-500-598-3816. This MOU provides that $830,000 capital funding would be provided as a match to National City Tax Allocation Bond funding for construction of the Aquatic Center. Including soft costs, public art, staff time and construction, the project is anticipated to cost approximately $4 million. ENVIRONMENTAL REVIEW: The Mitigated Negative Declaration under the California Environmental Qualit Act — UPD # 83356-MND-665 was filed by the Clerk of the Port of San Diego on October 11, 2006. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the resolution BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Proposed Memorandum of Understanding