HomeMy WebLinkAboutItem 1 - Staff Report GPC 12-03; GDPA 12-15 Staff ReportCHULA VISTA
PLANNING
COMMISSION
AGENDA STATEMENT
Item: 1
Meeting Date: 4/22/15
ITEM TITLE: Public Hearing: Consideration of GPA 12 -03 amendments to the General
Plan; GDPA 12 -15 amendments to the Otay Ranch General Development
Plan, including a new Development Agreement, involving portions of the
Otay Ranch Freeway Commercial Planning Area 12.
Resolution No. GPA 12- 03 /GDPA 12 -15: Recommending that the City
Council 1) Consider the Addendum (IS -12 -003) to FEIR 02 -04; 2)
approve amendments to the General Plan, Otay Ranch General
Development Plan (GDP); and 3) approve an associated Development
Agreement, all for the Freeway Commercial North portion of Otay Ranch
Planning Area 12 located south of Olympic Parkway, east of SR -125 and
west of Eastlake Parkway.
SUBMITTED BY: Stan Donn, AICP, Senior Planner
REVIEWED BY: Kelly Broughton, FASLA, Development Services Director
INTRODUCTION
Baldwin & Sons, LLC ( "Applicant" or "Developer ") is proposing amendments to the City of
Chula Vista General Plan (GP) Land Use and Transportation (LUT) Element and the Otay Ranch
General Development Plan (GDP) to change approximately 28.7 acres of Retail Commercial to
Mixed -Use Residential and Park on an existing approximate 35 -acre site. The proposed GP and
GDP amendments would allow for a transit - supportive mixed use development that would add
600 multi - family residential units (with 15,000 square feet of commercial retail) and a new 2-
acre urban park within the Freeway Commercial North portion of Otay Ranch Planning Area 12
(see Locator Map, Attachment 1). The project also includes a Development Agreement which
ensures the timely development of hotels totaling 300 rooms on the northerly most 6.3 -acre
portion of the 35 -acre site (remaining commercial and is not part of the proposed amendments),
15,000 square feet of commercial retail, and the urban park by the developer ( "Freeway
Commercial North" or "FC -2" ( "Project ")). On July 9, 2012 the Applicant filed applications to
process all of the subject items.
Planning Commission
Page 2, Item 1
Meeting Date: 4/22/15
BACKGROUND
Freeway Commercial Prior Approvals
In 2001, a GDP amendment separated the Eastern Urban Center (EUC) and Freeway
Commercial (FC) components into separate planning areas, comprising Planning Area (PA) 12.
In September 2004 the Freeway Commercial SPA Plan and Tentative Map were adopted on the
approximately 120 -acre Freeway Commercial site, and entitled approximately 1,214,000 sf of
commercial uses: 867,000 sf on the approximate 85 -acre FC -1 ( "Freeway Commercial South ")
site, and 347,000 sf on the approximate 35 -acre FC -2 ( "Freeway Commercial North ") site. The
Freeway Commercial SPA Plan identifies FC -1 and FC -2 sites separately because of different
ownerships.
In 2006, the Otay Ranch Town Center Mall was constructed on FC -1, and in 2007 a SPA
amendment was approved which raised the total commercial area allowed on FC -1 (by 93,000
sq. ft. from 867,000 sq. ft. to 960,000) to accommodate another department store. Today, the
FC -2 site remains vacant and undeveloped.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed Project for compliance with the
California Environmental Quality Act (CEQA) and has determined that the project was covered
in the previously adopted Final Environmental Impact Report for the Otay Ranch Freeway
Commercial Sectional Planning Area (SPA) Plan - Planning Area 12 ( "FEIR 02 -04 ")
(SCH 41989010154). The Development Services Director has determined that only minor
technical changes or additions to this document are necessary and that none of the conditions
described in Section 15162 of the State CEQA Guidelines calling for the preparation of a
subsequent document have occurred; therefore, the Development Service Director has prepared
an addendum to FEIR 02 -04.
RECOMMENDATION
That the Planning Commission conduct a public hearing and adopt the proposed resolution
recommending that the City Council:
1. Consider the Addendum to FEIR 2002 -0204;
2. Approve a resolution for amendments to the Chula Vista General Plan, and Otay Ranch
GDP in accordance with the findings and subject to the conditions contained therein; and,
3. Approve an Ordinance for a Development Agreement in accordance with the findings
and subject to the conditions contained therein.
BOARDS /COMMISSION RECOMMENDATION: N/A
Planning Commission
Page 3, Item I_
Meeting Date: 4/22/15
DISCUSSION:
1. Location, Existing Site Characteristics, and Ownership
The Freeway Commercial SPA Plan area is generally located south of Olympic Parkway, north
of Birch Road, east of State Route 125 and west of Eastlake Parkway (see Locator Map). This
amendment is limited to the FC -2 portion of the SPA Plan located between Olympic Parkway
and the existing Otay Ranch Town Center. This portion of the SPA Plan is currently vacant and
generally comprised of flat graded pads with an existing road, Town Center Drive, bisecting the
site in a north/south direction.
FC -2 includes approximately 35 acres under two ownerships, Village II Town Center, LLC and
SunRanch Capital Partners, LLC.
2. Project Description
The proposed Project establishes a unified, walkable, mixed -use plan for the FC -2 district of
Otay Ranch Planning Area 12. It is intended to enhance living, working, shopping and transit
options in the area. The project amends existing GP (LUT element) and GDP commercial
designated land use on approximately 28.7 acres of the 35.0 -acre FC -2 site to implement up to
600 multi - family dwelling units, 15,000 square feet of ancillary commercial, and a 2 -acre highly
amenitized public park. Commercial entitlements and land use designation for the residual 6.3
acres located at the northwest portion of FC -2 will remain unchanged and will accommodate two
hotels with at least 300 total rooms.
A proposed Development Agreement includes certain mutual benefits for the City and Applicant
from the proposed Project, as further described in item 3 below, and the Analysis section of this
report.
3. Proposed Amendments and New Development Agreement
Following is a brief summary of the proposed amendments to the General Plan and Otay Ranch
GDP.
Chula Vista General Plan:
Amend LUT Element's applicable text, tables, and exhibits to reflect changes in land use
designations as necessary to implement the additional 600 residential units as well as
additions in parkland areas. New policies are also proposed to reflect the transit- supportive
mixed use project. The proposed land use changes are as follows:
Change 26.7 acres of Commercial Retail to Mixed Use Residential, and 2.0 acres of
Commercial Retail to Parks & Recreation.
Planning Commission
Page 4, Item 1
Meeting Date: 4/22/15
Otay Ranch GDP:
Amend applicable text, tables, and exhibits to reflect changes in land use designations as
necessary to implement the additional 600 residential units as well as additions in CPF, and
parkland areas. New policies are also proposed to reflect the mixed use project.
The GDP follows the same proposed land use changes as the GP, including the change of
26.7 acres of Freeway Commercial to Mixed Use, and 2.0 acres of Freeway Commercial to
Park. The new policies are further refinements of the new GP policies.
Development Agreement:
The proposed Development Agreement provides the assurance for two hotels totaling 300
rooms to be constructed; allows for a 4.6 acre park requirement reduction to be met through
the construction, programming and maintenance of a highly - amenitized 2 -acre urban park
that is valued at or greater than 4.6 acres of park; and dedicates right of way and
construction easements for completion of the South Bay Bus Rapid Transit (BRT) line (see
Attachment 4).
ANALYSIS
1. Chula Vista General Plan
Existing Conditions /Past Designations
The existing GP includes a description of the area, existing conditions, the vision and various
policies (starting on page LUT -284) for the entire 120 acres as a regional serving Retail
Commercial center. The vision includes the provision of both local and regional - serving retail
commercial and entertainment uses. The existing policies remain applicable to the Town Center
mall (FC -1) area.
The existing General Plan identifies the Freeway Commercial North 35 -acre site (FC -2) as being
part of the 120 -acre Freeway Commercial site, currently designated as Commercial Retail. As
noted earlier, the 960,000 sq. ft. in the 85 -acre Otay Ranch Town Center Mall (FC -1) site is
mostly developed, with approximately 317,000 sq. ft. (or 33 percent) remaining to be developed.
The northerly 35 -acre site (FC -2), with approximately 347,000 sq. ft. of retail capacity is
undeveloped and has been designated for retail commercial since the Otay Ranch was annexed to
the City in 1993. The total remaining retail capacity for both sites is 664,000 sq. ft.
General Plan Amendment Considerations
This 664,000 sq. ft. of retail capacity is situated within the larger EastLake activity corridor that
contains substantial additional commercial use concentration spanning from EastLake Village
Walk in the north to the developing Millenia project on the south. Previous Commercial lands
studies (in early 2013) have indicated that the corridor contains an over - supply of community
and regional - serving commercial use.
Planning Commission
Page 5, Item I
Meeting Date: 4/22/15
These planning and market conditions
capacity and the FC -2 site has not be(
applicant has proposed a mixed use pi
215,000 sq. ft. (about 64 %) of the 34'
reduction of 132,000 sq. ft. commercial
FC -1 & FC -2 sites.
have influenced the absorption of the FC -1 remaining
n fully developed as a regional commercial site. The
)ject on the FC -2 site that would retain approximately
,000 sq. ft. of commercial capacity. The proposed net
would result in 449,000 sq. ft. of capacity remaining on
In order to determine if the proposed reduction and remaining 449,000 sq. ft. provide sufficient
capacity, staff required the applicant to do a current Commercial Lands Analysis (CLA). The
results of the CLA demonstrates that there remains an overage of approximately 93,000 sf of
retail commercial capacity beyond demand at build -out within the trade area.
The findings of the CLA along with the mixed use dynamics and compatibility between the FC -1
and FC -2 site(s) support the proposed amendments.
Commercial Market Considerations & Commercial Lands Analysis (CLA)
The applicant was required to prepare a Commercial Lands Analysis (CLA) to study the
potential impacts of the Project on the City's supply of existing and planned commercial
development area (see Appendix D of Attachment 7). The CLA studied a 4 -mile "trade area"
surrounding the site. The study looked at both the incremental (i.e the delta between the existing
and planned commercial at build -out) demand and supply of commercial lands within the trade
area. The key findings of the CLA particular to the Freeway Commercial North project are as
follows:
• The trade area currently experiences an extremely high amount of General Merchandise
sales, suggesting that it is already over - saturated with "big -box" stores.
• The FC -1 Otay Ranch Town Center mall still contains 317,000 square feet of developable
area that can accommodate department stores and other "big -box" retailers.
• There are other locations in the trade area designated for the same community and /or
regional serving commercial uses for which the property is currently approved.
• At build -out the incremental demand for retail space within the trade area is estimated at
1,930,000 sq. ft. A total of 2,023,000 sq. ft. is currently planned or in the pipeline in the
trade area (including the 15,000 sq. ft. of commercial for the proposed project). As a
result, the trade area is projected to experience an over - supply of retail space totaling
93,000 sq. ft. at build out.
• Even with the 132,000 square foot reduction in retail, the trade area would still have a
93,000 square foot oversupply of retail (at build -out).
• If there was no change proposed, there would be an overage of 225,000 sq. ft. of retail
commercial within the trade area at build -out.
Staff has reviewed the CLA and concurs with its conclusions. The proposed project would
reduce approximately 132,000 square feet of commercial from the FC -2 site to accommodate up
to 600 multi - family residential units and a 2 -acre urban park. The City still has adequate
remaining commercial square footage within the FC -1 site.
Planning Commission
Page 6, Item I_
Meeting Date: 4/22/15
Proposed General Plan Amendments
The proposed mixed use Project adds up to 600 multi - family for sale and rental units and
implements a vision of a 24 -hour lifestyle center. Other similar plans in the region such as the
Westfield mall at University Town Center have done this.
As proposed, the Chula Vista General Plan (GP) would provide the revised vision and policy
direction for the planning of Freeway Commercial North (FC -2). The FC -2 site is proposed to
have new mixed use residential with ancillary commercial and an urban park. These new
proposed land uses necessitates the crafting of a new objective and supportive policies that
address: Uses, Intensity, and Design aspects of the proposed project as well as its relationship to
FC -1. The new policies also provide clear guidance for the subsequent preparation of the
Sectional Planning Area (SPA) Plan Amendment, which will implement the proposed Project.
The proposed amended vision of the GP for this area is that the focus area provides both local
and regional- serving retail commercial and entertainment uses as well as high density mixed -use
residential. The High Density /Mixed Use Residential in the northerly portion of this area
promotes walkability, reduce vehicle miles traveled (VMTs), and decrease traffic impacts
through the pedestrian activation of Town Center Drive and close proximity between the hotels,
park, retail commercial, residential uses, and the adjacent transit.
The new objective and key policies that relate directly to design and land use are listed below
Objective:
• Create a high - quality mixed -use, transit supportive development within Freeway
Commercial North (FC -2) with hotels, commercial retail, park, and high- density
residential uses through a cohesive, coordinated design that integrates well with the
Freeway Commercial South (FC -1) shopping center.
Policies:
• Multi - family density is intended at the lower range of the Mixed Use Residential
category and is envisioned to provide both for -sale and rental products. The distribution
of uses within the Mixed Use Residential is to be predominantly residential with ancillary
retail commercial that is intended to primarily serve the nearby residences, and hotel and
park patrons.
• The FC -2 site is envisioned as low to mid -rise generally ranging between 3 -5 stories in
height.
• Provide attractive and appealing design treatment on all sides of the project site with
landscaping, hardscape, architectural features and enhanced elevations, and amenities that
are aesthetically coordinated with the surrounding land uses.
• The public park should be a highly - amenitized urban park that is accessible both visually
and physically to the surrounding land uses and thoroughfares, and serves local residents,
as well as hotel and shopping center patrons, and the public at large.
Planning Commission
Page 7, Item I
Meeting Date: 4/22/15
The design of Town Center Drive should promote a pedestrian orientation while
accommodating the necessary vehicular demands of the FC -2 area, and its function as the
northerly entrance to the FC -1 Otay Ranch Town Center.
• Provide safe, comfortable and easily identifiable pedestrian crossing locations, routes and
signage to the southerly Otay Ranch Town Center BRT station to promote use by hotel
patrons and residents.
The Project is consistent with proposed GP policies listed above and existing GP goals and
policies that reinforce the coordination and provision of balanced land uses (e.g. residential,
commercial, park), building and pedestrian design features that promote quality urban design and
the provision of public facilities (like the park) to serve residents and visitors. This is consistent
with many of the Planning Factors, Objectives and Policies Outlined in Section 7.0 of the LUT
Element such as:
• Balanced Land Uses — "A balance of land uses - residential; employment; commercial;
recreational ... provided at the appropriate intensity, location, and mix. Benefits include:
reduced commute times; improved air quality; higher sales tax revenues; increased
mobility options."
• Urban Design & Form — "Establishing and reinforcing Chula Vista's urban design and
form is necessary to ensure the desired character and image of the City is protected and
enhanced as the City grows and develops over time."
• Compatible Edge Transitions — "Mixed use areas will inherently have higher levels of
activity and intensity than solely residential neighborhoods. Both the pattern of mixed
use areas and individual project designs must be sensitive to edge transitions."
• Enhancing Community Image — "It is created by both natural and man -made features,
such as views; open space; city entryways; primary or secondary gateways; streetscapes;
buildings; parks; and plazas."
The mix of hotels, high- density residential and commercial in a mixed -use format, a 2 -acre urban
park, located in close proximity to one another, and a planned BRT route promotes walkability
and "smart growth" development. The hotels, urban park, and residential units will also activate
the commercial uses along Town Center Drive; encourage walking and transit use; and reduce
automotive dependency. The proposed mix use residential with higher density multi - family and
ancillary commercial uses located along Town Center Drive adjacent to the Otay Ranch provides
a compatible transition between the FC -2 site and the Town Center mall (FC -1) to the south.
The activities of the mall are compatible with the pedestrian- oriented activities envisioned for the
mixed use project as higher- density residential are proposed adjacent to and within walking
distance of the mall. The planned BRT route is conveniently located between and serves patrons
and residents of the FC -1 and FC -2 sites. Residents, park and hotel users on the FC -2 site have
easy and convenient access to the FC -1 mall and vice - versa. The ancillary commercial uses in
the proposed Project, while serving the hotels, residents and park users, are complimentary to the
uses in the mall and provide additional shopping opportunities for patrons of the mall.
Planning Commission
Page 8, Item 1 _
Meeting Date: 4/22/15
The placement of an urban park fronting Town Center Drive creates a pedestrian- oriented focal
point within Freeway Commercial North. The current southerly terminus of Town Center Drive
is adjacent to a main pedestrian walkway within the Town Center Mall and provides for a
primary pedestrian link between Freeway Commercial North and South. At the SPA Plan level,
in accordance with the GP and GDP, the Applicant will provide pedestrian features such as
enhanced pavement, trellises, seating areas, and low monument signage surrounding the urban
park that will accentuate a pedestrian- oriented focal area within Freeway Commercial North.
The comprehensive list of all the proposed GP policies is located in Appendix A of Attachment 7.
A subsequent SPA Plan amendment is necessary and will be required to show consistency with
the new objective and associated policies.
2. Otay Ranch GDP
The Otay Ranch GDP provides a vision and direction for the planning of the Freeway
Commercial area, including the FC -2 subarea. The vision of the GDP for this area, as amended,
is that Freeway Commercial North (FC -2) will provide hotels and high density residential in a
mixed -use urban character setting that includes ancillary commercial uses and an urban park.
Hotels are a permitted use in the existing SPA Plan for both the South (FC -1) and North (FC -2)
subareas. Because the proposed Development Agreement ensures that hotels will be constructed
in FC -2, the proposed GDP amendments identify hotels as a required part of FC -2 in conjunction
with the other uses as described above. A similar revision is not being made in FC -1 because
there is no requirement or assurance that hotels would be constructed on the FC -1 site.
Key new policies are added to the Otay Ranch GDP to ensure the quality of development
anticipated with the FC -2 project. They include the following:
• Orient hotels and high density residential mixed -use buildings in a manner that defines
the primary pedestrian areas, creates a strong pedestrian connection between buildings,
and provides for a continuous pedestrian experience.
• Mixed -Use buildings facing Town Center Drive and primary pedestrian urban spaces
shall contain commercial uses that support pedestrian activities such as dining, retail and
entertainment, and cultural experiences.
• Hotels and mixed -use buildings shall exhibit an urban character through the use of
quality building materials, textures, and scale.
• Establish an urban identity through the use of streetscape features and amenities, such as
bollards, street furnishings, and enhanced pavement between vehicular driveways.
• Provide safe and accessible pedestrian connections to the existing and anticipated routes
to the planned Bus Rapid Transit (BRT) stations. Provide features to buffer pedestrians
from the BRT travel lanes where pedestrian walkways are located along the travel lanes.
Planning Commission
Page 9, Item I _
Meeting Date: 4/22/15
• Internal and external circulation systems shall be provided including a strong pedestrian-
orientation, and enhanced pedestrian connectivity to the regional shopping center and
internal connections between the high density residential and mixed -use areas, the hotels
and the urban park.
• A centrally located urban park including amenities shall be provided at a highly visible
location and will serve as a public attraction in addition to serving the surrounding high
density residential.
• In Freeway Commercial North (FC -2), the freeway commercial land use category permits
hotels and high density residential in an urban character mixed -use setting, allowing for
primarily 3 to 6 story mid -rise buildings (heights will be established at the SPA level).
The comprehensive list of all the proposed GDP policies is located in Appendix B of Attachment 7.
The Freeway Commercial SPA Plan will require subsequent amendment so that it implements
these GDP goals and objectives.
Fiscal Impact Analysis (FIA)
A FIA has been prepared using the City's Fiscal Impact Framework (see Appendix C of
Attachment 7). Typical GPA and GDPA's are evaluated only in a build -out condition.
However, given the DA and proposed GP and GDP policies that stipulate specified project
features, and even though a SPA Plan is not Loing processed, staff required the FIA to include
development phasing time frame typically not required until a SPA Plan is prepared. When the
SPA Plan amendment is processed this FIA will fulfill that requirement.
Based on the FIA and the assumptions contained therein, the fiscal impact generated by the
proposed Project as compared to the currently approved plan (i.e. base), are zero in Years 0 & 1
and positive in all future study years including at build -out. This is because no construction is
taking place on the site in Years 0 & 1. Both the base and proposed Project are estimated to
generate more revenues than expenditures throughout the build -out period.
The base is estimated to generate annual revenues of $4.1 million and expenses of $2.1 million
resulting in a net positive fiscal impact to the City of $2.0 million annually at build -out. The
proposed Project is estimated to generate revenues of $4.8 million and expenses of $2.3 million
resulting in a net positive fiscal impact to the City of $2.5 million annually at build -out. Overall,
the proposed Project is estimated to generate approximately $0.5 million more than the base
primarily due to the Transient Occupancy Tax (TOT) revenues estimated from the development
of the hotels.
The fiscal surplus (difference between the base and the Project) starts in Year 2 at $391,720 and
grows to an annual net fiscal surplus of approximately $536,318 by build out, Year 10. As
required by the development agreement, construction for the first hotel will begin prior to the
issuance of a residential permit. Due to the TOT collected early on, the project will produce
greater revenues than costs, creating the early surplus. With more residential development
Planning Commission
Page 10, Item 1
Meeting Date: 4/22/15
underway between years 2 and 4, the surplus temporarily declines to a Year 4 low of $173,609
before increasing again to the ultimate surplus of $536,318.
While hotel uses are allowed under the current FC entitlement, the base (i.e. existing approved
project) does not include revenues for hotels because there were no assurance that hotels would
be developed on either FC -1 or FC -2 sites. The Development Agreement for the proposed
project ensures that the City will get two hotels, one of which will be under construction prior to
issuance of a building permit for residential uses. The findings in the FIA show that hotel uses
generate revenues for the City at a higher rate than general commercial, and the proposed project
will generate over a half million dollars more than the base, as described above.
3. Development Agreement
State and City Requirements for Development Agreements
California Government Code section 65864 et seq. authorizes cities to enter into a development
agreement with any person having a legal or equitable interest in real property for the
development of the property. A development agreement is a contract negotiated between the
project proponent and the public agency that specifies certain mutual benefits negotiated for a
particular project and vests, subject to certain conditions in the agreement, the rights of the
project applicant to develop the property under current land use regulations for a specified term.
Through City Resolution No. 11933 (adopted in 1985), the City Council has determined that
development of large projects within the City create unique and complex development
considerations and that, in addition to the minimum requirements for development agreements
contained in the Government Code, additional procedures and requirements for the consideration
of development agreements shall be contained within each individual agreement. The
Development Agreement presented here includes the requirements for development agreements
contained in the Government Code, as well as additional procedures and requirements designed
to address the unique and complex development considerations presented by the Project.
The following discussion summarizes the benefits of the Development Agreement to both the
City and the Applicant, and describes the fundamental terms of the agreement.
Public Benefits
Beyond the basic benefits of developing a project of the character of Freeway Commercial North
(FC -2), the City will receive the following benefits from entering into the Development
Agreement, which is presented in draft in Attachment 4:
• Dedication of right of way and construction easements necessary for the completion of the
South Bay Bus Rapid Transit (BRT) line.
• Provision of two hotels totaling at least 300 rooms.
0 Increase in net fiscal revenue of over $500,000 annually at build out as compared to the
currently approved project.
Planning Commission
Page 11, Item 1
Meeting Date: 4/22/15
• A highly amenitized (see Exhibit "B" of DA) two acre public park provided in a turnkey
manner after the construction of 300 residential units.
• Funding to cover regular maintenance of the two acre public park.
Benefits to the Master Developer
• Predictability in the development approval process by vesting the permitted uses, density,
intensity of use, and timing and phasing of development consistent with the Freeway
Commercial SPA Plan and existing land use laws, regulations and policies for up to twenty
(20) years.
• Use of the City's Development Impact Fee Deferral Policy for the life of the Development
Agreement (up to 20 years). Pursuant to the Development Impact Fee Deferral Policy, the
Master Developer may defer the payment of Development Impact Fees until the request for
final inspection of each individual residential unit upon satisfaction of specified conditions.
• Ability to convert commercial area into mixed use development with a total of 600 high
density multi - family units and 15,000 square feet of retail space.
• Ability to meet a reduced total park acreage obligation through an onsite equivalency
program.
Other Terms of the Agreement
The Development Agreement will contain the following additional major points:
• The term of the Development Agreement, all tentative maps and other development
approvals will be twenty (20) years.
• For the Term of the Development Agreement, the Master Developer and its merchant
builders shall have the vested right to develop the property pursuant to the Sectional Planning
Area (SPA) Plan, Tentative Map, Development Agreement, and existing land use laws,
regulations and policies. The Development Agreement will vest permitted uses, density,
intensity, timing and phasing of development, and reservations and dedications of land.
• The Development Agreement may be amended from time to time by the mutual written
consent of the City and Master Developer and the Owner of any affected portion of the
property.
• The City shall accept and process with reasonable promptness all completed applications for
subsequent approvals.
• The Development Agreement shall run with the land and benefit and bind future owners
should the Master Developer sell or transfer ownership.
Planning Commission
Page 12, Item 1
Meeting Date: 4/22/15
The Development Agreement (DA) ensures that the 2 hotels and urban park are constructed, and
phased appropriately with residential development to ensure balanced land uses are planned and
built. The DA requires that the Developer meet all of its park obligations, but allows for
flexibility in how those requirements are achieved. Specifically, the DA requires the
construction of a "highly - amenitized" 2 acre City park onsite. This park will be constructed to
standards that exceed the requirements of a 4.6 acre park that would otherwise apply to the
project. The DA contains a list of features for the Urban Park in Exhibit "E" such as water
features, public art, amphitheater, sculptural landforms, rockscape /informal play areas, urban
"botanical" garden, video projection screen/shade structure, adult fitness spaces /stations that
would be considered as "highly - amenitized" because they are generally not included in urban
parks. To the extent the cost of the urban park is less than the estimated cost to construct a
standard 4.6 acre park, based on an audit, the developer must pay the excess to the City for use
on other parks in the area. The highly - amenitized urban park enhances the community image of
Freeway Commercial North as well as Chula Vista. The hotels will provide jobs and higher
revenues to the City through Transient Occupancy Tax (TOT) and the ancillary commercial will
also provide additional jobs and sales tax to the City.
DECISION -MAKER CONFLICTS:
Staff has reviewed the property holdings of the Planning Commissioners and has found no
property holdings within 500 feet of the boundaries of the property that is subject to this action.
Staff is not independently aware, nor has staff been informed by any Planning Commissioner, of
any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
RELATIONSHIP TO THE CITY'S STRATEGIC PLAN
The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality,
Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The
Freeway Commercial North Project supports the Economic Vitality goal, particularly City
Initiative 2.1.3 (Promote and support development of quality master - planned communities). The
proposed GP and GDP policies support the development of a quality master - planned community
(as described above) with parks, jobs, transit, shopping, and other amenities, all within walking
distance for residents. The Project also results in positive net economic benefit for the City as
described in the FIA section.
CONCLUSION
Within Freeway Commercial North, the proposed land uses and development intensities directly
implement the provisions of the City's General Plan and the Otay Ranch General Development
Plan that foster "smart growth." The proposed Project provides all of the public facilities
required by the Otay Ranch GDP. The additional higher- density mixed -use residential located
proximate to the hotels, park, and ancillary retail commercial further implement pedestrian-and
transit- oriented policies and is in conformance with the goals, objectives and policies of the
General Plan and the Otay Ranch GDP as described in the analysis section of this report. The
Development Agreement ensures the provision of park amenities and the construction of the
hotels and urban park.
Planning Commission
Page 13, Item 1
Meeting Date: 4/22/15
CURRENT YEAR FISCAL IMPACT
The processing for the GP, GDP Plan amendments, Addendum, and all supporting documents
were funded by a developer deposit account. This account funded City staff and consultants
representing the City on the Freeway Commercial North project.
ONGOING FISCAL IMPACT
The Supplemental FIA for the Freeway Commercial North Amendment estimates that during
years 0 and 1 there would be no difference between the base and proposed Project's fiscal impact
of $1.9 million net annual positive surplus because the hotels have not yet been constructed.
From years 2 through 10 (build -out), when comparing the base to the proposed Project, there
would be a net positive fiscal benefit to the City starting at approximately $390,000 per year and
increasing to over $536,000 per year. If approved, the proposed Project will yield an overall
estimated $2.5 million annual net positive fiscal impact to the City at build -out, compared to an
estimated $2.0 million under the adopted plan.
Attachments: 1. Locator Map
2. Planning Commission Resolution GPA/GDPA
3. Draft City Council GPA/GDPA Resolution
4. Draft Development Agreement Ordinance
5. Addendum to FEIR 02 -04 (disc) - provided to commissioners on 4/10/15
6. Disclosure Statement
7. Freeway Commercial North GPA/GDPA Amendments booklet (disc) —
provided to commissioners on 4/10/15
Prepared by: Stan Donn, Senior Planner, Development Services Department