HomeMy WebLinkAbout2010 CON City of Chula Vista / CDC - Straight Lining ProjectLetter of Intent
for Proposed Reorganization Processing Agreement
between the City of Chula Vista
and the City of National City and
the Community Development Commission
of the City of National City
Commonly referred to as the Straight Lining Project
This Letter of Intent is between the City of National City ("National City"), the
City of Chula Vista ("Chula Vista") (collectively, the "Cities"), and the Community
Development Commission of the City of National City ("CDC") to address the proposed
straightlining of the Cities' uneven common boundary line running approximately east
and west along the Sweetwater River Channel ("Channel") between Interstate 5 on the
west and Interstate 805 on the east.
WHEREAS, Chula Vista and National City previously entered into discussions
for a proposed project known as the "Straight -lining Project" ("Reorganization") which
would result in the annexation and detachment of lands between Chula Vista and
National City in order to straighten the uneven boundary line, for the following stated
reasons: i) public safety and citizen recognition, ii) regional and intergovernmental
cooperation, and iii) shared revenue and shared investment in potential development.
Preliminary engineering work began on the Reorganization in 2006 and was subsequently
suspended in 2009; and
WHEREAS, on or about April 28, 2009, Chula Vista, National City, the CDC and
NCSDI No. 1, LLC, a California limited liability corporation ("Sudberry") entered into a
Memorandum of Understanding ("MOU") to provide for the development of the
Gateway Development project as a single project with parcels in each City, as identified
in the MOU, which MOU has now expired; and
WHEREAS, the Gateway Development project site is approximately 25.71 acres,
of which 13.60 is located within National City and 12.11 acres is located within Chula
Vista; and
WHEREAS, the MOU contemplated cooperation between the Cities and the CDC
in the review and processing of the Gateway Development based upon a proposed project
configuration, with roughly equal total square footage of development shown in each
city. At that time, the developer was seeking commercial tenants, however final
commitments had not been obtained. Currently, proposed changes in the project may
result in a decrease in commercial development contemplated within the jurisdictional
limits of Chula Vista, and
WHEREAS, in recognition of environmental impacts of the project occurring
predominately in National City, the MOU provided for National City to be the lead
agency for purposes of environmental review of the proposed project; and
WHEREAS, National City and the CDC have both committed financial resources
to assist in bringing the Gateway Development to fruition. These commitments have been
articulated in a proposed Development and Disposition Agreement, and include such
terms as sale of a CDC owned site to developer and financial assistance amounting to
$2.4 million for the construction of off -site improvements.
The parties seek to: 1) extend the MOU so it can continue to govern the
processing of the Gateway Development project and address the change in the Gateway
Development proposal; and, 2) straighten the boundary between the Cities as follows:
A) The Cities will continue project review and processing of the Gateway
Development as contemplated in the MOU and extend the MOU for 18 months.
B) The Cities will works towards entering into a Boundary Reorganization
Agreement, to be brought forward for consideration by the respective legislative bodies
of the Cities by December 31, 2013, to continue with the Reorganization as originally
contemplated and depicted on the attached reference exhibit on substantially the
following terms:
❑ Each City will be responsible for preparation and processing of required
documents, including municipal services review, reports and
environmental review for areas to be annexed into its jurisdiction.
❑ The Cities will work cooperatively to provide timely and complete
documents and information needed by the annexing City in its preparation
of materials for Reorganization.
❑ The Agreement will include a schedule to ensure the timely delivery of
information and preparation, review and approval of necessary documents
for the Reorganization.
❑ The Cities will negotiate a Tax Sharing Agreement in order to make the
Reorganization revenue neutral, i.e. neither city will receive less sales tax
revenue than a base line year, to be determined, with annual adjustments
for inflation and consumer price indexing, to be more specifically
determined by agreed upon formula and process; provided, however, that
the CDC will be entitled to continue to receive tax increment generated
within the portion of the National City Redevelopment Project area to be
annexed into Chula Vista, until the Redevelopment Plan expiration date.
LJ If the Cities are unable to come to agreement to conclude the proposed
Reorganization by December 31, 2013, then, the Cities agree to negotiate
for an alternative Tax Sharing Agreement applicable to the Gateway
Development Project, as approved. Any such negotiations will strive to
achieve an equitable sharing of the net revenue, recognizing there are
multiple variables that may need to be accounted for in any future formula
and determinations of net revenue, such as contribution towards
infrastructure, investment, and relocation of businesses from one
jurisdiction to another. These variables are not exhaustive.
IN WITNESS THEREOF, the parties have executed this Letter of Intent on the 23`d day
of November, 2010.
CITY OF NATIONAL CITY
on Morrison, Mayor
COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF
NATIONAL CITY
on Morrison, Chairman
CITY OF CHULA VISTA
CITY OF CHULA VISTA
City Attorney
CITY OF CHULA VISTA
d KAAs1-. ✓ ' v/ttJi e
Donna Norris, City Clerk
RESOLUTION 2010 — 264
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE THE LETTER OF INTENT
FOR PROPOSED REORGANIZATION PROCESSING AGREEMENT
BETWEEN THE CITY OF CHULA VISTA AND
THE CITY OF NATIONAL CITY AND THE COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY,
COMMONLY REFERRED TO AS THE STRAIGHTLINING PROJECT
WHEREAS, the Letter of Intent between National City, Chula Vista and the
Community Development Commission of the City of National City ("CDC ") addresses the
proposed straightlining of the cities' uneven common boundary line running approximately east
and west along the Sweetwater River Channel between 1-5 on the west and 1-805 on the east;
and
WHEREAS, the straightlining would result in the annexation and detachment of
lands between the two cities, and promote public safety and citizen recognition, regional and
intergovernmental cooperation, shared revenue, and shared investment in potential
development; and
WHEREAS, on or about April 28, 2009, Chula Vista, National City, the CDC and
NCSDI No. 1, LLC, ("Sudberry") entered into a Memorandum of Understanding ("MOU"), which
is currently expired, to provide for the development of the Gateway Development Project as a
single project; and
WHEREAS, National City and the CDC have both committed financial resources
to assist in bringing the Gateway Development to fruition. These commitments have been
articulated in a proposed Development and Disposition Agreement, and include such terms as
sale of a CDC -owned site to the developer and financial assistance amounting to $2.4 million for
the construction of off -site improvements; and
WHEREAS, the parties seek to extend the MOU for 18 months so it can continue
to govern the processing of the Gateway Development Project, and straighten the boundary
between the Cities upon mutually acceptable terms.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the Mayor to execute the Letter of Intent for Proposed
Reorganization Processing Agreement between the City of Chula Vista and the City of National
City and the Community Development Commission of the City of National City, Commonly
referred to as the Straight Lining Project, Said Letter of Intent is on file in the office of the City
Clerk.
--- Signature Page to Follow ---
Resolution No. 2010 — 264
Page 2
PASSED and ADOPTED this 23rd day of November] 2010.
on Morrison, Mayor
ATTEST:
n
Michael R. Dalla, qity Clerk
APPROVED AS TO FORM:
udia G.
City Attorn
Passed and adopted by the Council of the City of National City, California, on
November 23, 2010 by the following vote, to -wit:
Ayes: Councilmembers Morrison, Sotelo-Solis, Van Deventer, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
City eA
rk of the City of National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2010-264 of the City of National City, California, passed and
adopted by the Council of said City on November 23, 2010.
City Clerk of the City of National City, California
By:
Deputy
CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
""EETING DATE: November 23, 2010 AGENDA ITEM NO. 44
ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to
execute the Letter of Intent for Proposed Reorganization Processing Agreement between the City of
Chula Vista and the City of National City and the Community Development Commission of the City of
National City, Commonly referred to as the Straight Lining Project
PREPARED BY: Chris Zapatii ?"
PHONE: Ext. 4240
✓✓
EXPLANATION:
Please see attached staff report.
DEPARTMENT: City Manager
APPROVED BY:
FINANCIAL STATEMENT:
ACCOUNT NO.
N/A
ENVIRONMENTAL REVIEW:
N/A
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
APPROVED:
APPROVED:
Finance
MIS
STAFF RECOMMENDATION:
Adopt resolution.
BOARD / COMMISSION RECOMMENDATION:
N/A
ATTACHMENTS:
Letter of Intent
Resolution
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December 7, 2010
The Honorable Cheryl Cox
Mayor
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
OFFICE OF THE CITY CLERK
1243 National City Blvd.
National City, California 91950
Michael R. Dalla, CMC - City Clerk
619-336-4228 phone • 619-336-4229 fax
Dear Mayor Cox,
On November 23rd, 2010, Resolution Nos. 2010-264 and 2010-266 were passed
and adopted by the City Council and the Community Development Commission
of the City of National City, authorizing execution of a Letter of Intent with the City
of Chula Vista.
We are forwarding certified copies of the above Resolutions and two partially
executed original Letter of Intent. Please return one fully executed original Letter
of Intent to us for our files.
Sincerely,
Michael R. Dalla, CMC
City Clerk
Enclosures