HomeMy WebLinkAboutExplanation-MOUExplanation
Since 2004, the City of National City has been working cooperatively with the San Diego
Unified Port District (SDUPD) to develop the National City Aquatic Center. On June 8,
2010, the Port District granted the Community Development Commission (CDC) of
National City a thirty (30) year lease for the project site located on Goesno Place, with
the condition that the project commenced construction before December 31, 2012.
On July 8, 2011, consistent with the Cooperation Agreement between the City and the
CDC dated February 15, 2011; the Port District administratively approved assignment of
the lease from the CDC to the City, pursuant to the Assignment and Assumption Review
and Approval. The lease was assumed and executed by the City Manager on behalf of
the City.
On January 11, 2013, the Port District and City entered into Amendment No. 1 to the
lease, extending the date of commencement of construction to December 31, 2013.
The Port District issued a Coastal Development Permit for the project (SDUPD Clerk's
Document No. 57961 filed on August 10, 2011), and has additionally granted a two-year
extension of the Permit through August 2, 2015.
On September 13, 2011, the Port District and City entered into a Memorandum of
Understanding ("MOU") regarding the project.
On September 26, 2011, the Port District fulfilled its MOU obligation to transfer funds to
the City in the amount of $830,000 to be used towards design and/or construction costs.
On December 11, 2012, the Port District and City mutually agreed to MOU Amendment
No. 1 which extended the deadline for commencement of construction to December 31,
2013.
City Council approved a budget of $3.3 million in 2011 Tax Allocation Bonds for the
construction of the Aquatic Center. However, due to the dissolution of redevelopment
agencies statewide, the State Department of Finance has not authorized the use of
these funds for construction of the Aquatic Center at this time.
Therefore, the City requested that the Port District reallocate its planned financial
support for a separate National City Park project to the Aquatic Center project. On July
16, GU I.7, the 0UC1IU of Full V UI 111 II1ssIVI ICIJ approved the reallocation of yrv,vv V,vvv
from the National City Park project to the Aquatic Center project, pending amendments
to the MOU and Lease.
Staff recommends that City Council, 1) approve the Amended and Restated MOU, 2)
authorize the Mayor to execute the Amended and Restated MOU, and 3) appropriate
$3,080,000 to the Aquatic Center project through the General Fund, to be reimbursed by
the Port District via the terms of the Amended and Restated MOU.