DATE: February 11, 2021
SUBJECT:
Title
RESOLUTION AUTHORIZING AN INDEMNITY PURSUANT TO A RIGHT OF ENTRY LICENSE AGREEMENT WITH MARINE GROUP BOAT WORKS, LLC FOR THE SAN DIEGO UNIFIED PORT DISTRICT'S IMPLEMENTATION OF UTILITY UPGRADES RELATED TO THE RESORT HOTEL & CONVENTION CENTER IN CHULA VISTA.
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EXECUTIVE SUMMARY:
In April 2018, RIDA Chula Vista, LLC (RIDA) entered into a Disposition and Development Agreement (DDA) with the San Diego Unified Port District (District) and City of Chula Vista (City) for the development of a resort hotel and convention center (RHCC) on approximately 37 acres of land within the Chula Vista Bayfront (CVB). The DDA sets forth the mechanism to design, finance, and construct the RHCC, associated parking, and surrounding public infrastructure, which includes portions of E, G, and H Streets, pedestrian and bicycle paths, utilities, and stormwater improvements (collectively, Phase 1A Infrastructure).
RIDA has actively been designing and coordinating its utility plan as part of the Phase 1A Infrastructure, including its impacts on adjacent District tenants. These utilities will serve the future RHCC by providing water, electricity, gas, and other facilities while maintaining existing utilities to adjacent tenants. The City's Fire Department has identified that as a result of the required infrastructure work, anticipated utility impacts during construction will reduce fire water flow at the adjacent Marine Group Boat Works, LLC (MGBW) leasehold and will require an upgrade to MGBW's current fire water flow system.
MGBW currently has a Lease with the District (Clerk's Doc. No. 54509, Filed February 13, 2009, as amended) that expires on January 31, 2030 and contains an option to extend for an additional 11 years. The proposed Right of Entry License Agreement (included as Attachment A) (the ROE) would allow the District to access and upgrade the existing underground fire water system at MGBW's leased premises. The ROE's correspondin...
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