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HomeMy WebLinkAboutRDA Reso 1997-1551 RESOLUTION NO. 1551 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE MID-TERM REPORT FOR THE FIVE- YEAR IMPLEMENTATION PLAN FOR THE BAYFRONT REDEVELOPMENT PROJECT AREA PURSUANT TO SECTION 33490 OF THE COMMUNITY REDEVELOPMENT LAW AND AMENDING THE IMPLEMENTATION PLAN BY ADDING TWO PROJECTS WHEREAS, Section 33490 of the Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) requires that, on or before December 31, 1994, and each five years thereafter, each Redevelopment Agency that has adopted a Redevelopment Plan prior to December 31, 1993, shall adopt, after a public hearing, an Implementation Plan (the "Plan") including the Housing Implementation Plan that shall contain specific goals and objectives of the Agency for the Project Area, the programs, projects, and expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, projects, and expenditures will eliminate blight within the Project Area; and WHEREAS, Section 33490 of the Community Redevelopment Law also requires that each Redevelopment Agency, at least once within the five-year term of the Plan, shall conduct a public hearing and hear testimony of all interested parties for the purpose of reviewing the Redevelopment and implementation Plans for each Redevelopment Project within its jurisdiction and evaluating the progress of the Redevelopment Project; and WHEREAS, Section 33490 of the Community Redevelopment Law requires that a public hearing be held before an Implementation Plan may be amended, and WHEREAS, the Redevelopment Agency of the City of Chula Vista (the "Agency") approved a five-year Implementation Plan including the Housing Implementation Plan for the Bayfront Redevelopment Project Area on December 13, 1994; and WHEREAS, said Plan included certain projects to be undertaken by the Agency within the period of the five year period of the Plan, and; WHEREAS, a Mid-Term Report on progress made on the Implementation Plan for the Bayfront Redevelopment Project has been prepared and submitted to the Agency for review and consideration; and WHEREAS, the Agency desires to amend the Implementation Plan to add two projects including the amendment of the Redevelopment Plan to include the Tidelands in the Bayfront Project Area and the extension of "H" Street; and WHEREAS, the projects to be added have been determined to provide assistance in the elimination of blighting conditions within the Project Area; and WHEREAS, the Agency noticed, for three consecutive weeks in a newspaper of public circulation as well as posted a Notice of Public Hearing at four permanent locations within the Bayfront Redevelopment Project Area for a period of 30 days prior to the public hearing pursuant to Section 6063 of the Government Code and held a public hearing to take public comments and consider the Redevelopment and Implementation Plans for the Bayfront Redevelopment Project on August 19, 1997; and Resolution 1551 Page 2 WHEREAS, review of the Redevelopment and Implementation Plans does not constitute approval of a project under the California Environmental Quality Act (CEQA) and therefore is exempt from environmental review requirements in accordance with Section 15061 (b) (1) of the State CEQA Guidelines; and WHEREAS, review and approval of progress under the Redevelopment and Implementation Plans and amendment of the Implementation Plan to add a project do not obligate the Agency to include specific projects or expenditures in annual budgets, and does not change the need for any required approval including planning entitlement or environmental review. NOW, THEREFORE, BE I'r RESOLVED the Redevelopment Agency of the City of Chula Vista does hereby find, order, determine and resolve: Section 1. The Mid Term Report on the Five-Year Implementation Plan for the Bayfront Redevelopment Project, attached hereto as though fully set forth herein, is hereby accepted and approved. Section 2. The Implementation Plan is hereby amended, as more particularly set forth therein, to add two projects which have been determined will help eliminate blighting conditions in the Bayfront Project Area. 1. The amendment of the Bayfront Redevelopment Plan to add the Tidelands to the Project Area 2. The extension of "H" Street Section 3. Staff is hereby authorized to continue to carry out the programs and projects described in the Implementation Plan for the duration of the term unless the Plan is further amended before its expiration date in accordance with Community Redevelopment Law. Section 4. The review and approval of the Mid Term Report, amendment of the Implementation Plan to add projects and continuation of the Implementation Plan for the Bayfront Redevelopment Project Area are not projects within the meaning of Section 21000 of the Public Resources Code (CEQA) and the inclusion of programs, projects and expenditures within the Implementation Plan does not obligate the Agency to include such expenditures in an annual budget and does not eliminate the need for specific projects to obtain the required development approvals including environmental analysis and planning entitlement. Presented by Approved as to form by Chris Salomone J/e~M. Kahen~/ / ) Director of Community Development ygency Attorney ~ Resolution 1551 Page 3 PASSED, APPROVED and ADOPTED BY THE REDEVELOPMENT AGENCY OF THE CiTY OF CHULA VISTA, CALIFORNIA this 19th day of August, 1997 by the following vote: AYES: Members Horton, Moot, Padilla, Rindone, Salas NOES: None ABSENT: None ABSTENTIONS: None Shirley Hor~n Chairman ATTEST: ~ Executive Secretary STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss: CITY OF CHULA VISTA ) I, Chris Salomone, Executive Secretary to the Redevelopment Agency of the City of Chula Vista, California DO HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution No. 155'1 and that the same has not been amended or repealed. Dated: August 20, 1997 ~ ~ Chris Salomone Executive Secretary FIVE YEAR IMPLEMENTATION PLAN (Health & Safety Code Section 33490) BAYFRONT REDEVELOPMENT PROJECT I. INTRODUCTION AND BACKGROUND A. Introduction The five-year Implementation Plan for the Bayfront Redevelopment is an adopted to meet the requirements of Section 33490 of the Health and Safety Code. This plan is a flexible policy document and not a limitation on the Agency's activities in this project area. B. Background The Bayfront Redevelopment Project; comprising 637 acres was established in 1974. This project area, which encompasses property west of I-5 from D Street to L Street originally included a variety of land uses ranging from industrial to farming. The Redevelopment Area boundaries are described on the attached map (Exhibit A). Large sections of the project area, notably the Mid-bayfront and D Street Fill are undeveloped and lack infrastructure improvements. They also contain valuable wetland resources and provide access to the San Diego Bay. Development of the Mid-bayfront has long been a major goal of the City. Early plans for this area were rejected by the California Coastal Commission. Subsequent plans, approved by the Commission, were the subject of litigation with the Sierra Club. Finally in January 1993, a revised Local Coastal Plan (LCP) including substantial conservation and development of the Mid-bayfront was approved by the City and the Coastal Commission. Negotiations between the Agency and the owner/developer for the preparation of an agreement describing and controlling development and conservation activities have been ongoing since approval of the LCP. The Specific Plan and the Local Coastal Plan require extraordinary dedication of land, development of public improvements, and long-term mitigation monitoring which hinder the ability to economically develop the property. The original Redevelopment Plan has a duration of twenty-five years, and will terminate in 1999. A Redevelopment Plan amendment will be necessary to extend the life of the Plan to the maximum allowed under State law (to the year 2014) in order to incorporate, control and provide financial assistance for development of the Mid-bayfront. The Implementation Plan is intended to be a flexible policy document to guide Agency activities over the next five years (1995 through 1999) and is not intended to represent a limitation on Agency activities. The programs/projects included in the Implementation Plan are those priority programs anticipated to be implemented during the next five years; however, they are not all of the programs/projects necessary to eliminate blight in the project area. Financial Condition of the Proiect Area: Financial limitations have been established for the project area as follows: "The aggregate amount of tax revenues which may be divided and allocated to the Redevelopment Plan for the Bayfront Redevelopment Project shall be limited to the amount which would be required in any fiscal year to pay the principal and interest coming due in such fiscal year on loans, advances or indebtedness issued by the Agency in the aggregate principal amount of Fifty Million Dollars ($50,000,000), the total actual amount of which principal and interest is $210,000,000." (Ordinance No. 2585) Bayfront Redevelopment Project Area Five Year Implementation Plan Page 2 For the purposes of clarification, the $50,000,000 amount represents the maximum total principal and interest indebtedness that can be outstanding at any one time. Further, the ~210,000,000 amount represents the total tax increment that can be collected, but it's use is not limited to debt service on bonded indebtedness; those funds can be used for such other costs as reasonable operating expenses and affordable housing set-aside obligations. II, BLIGHTING CONDITIONS A. Pre-Plan BliqhtinR Conditions When the project area was adopted in 1974, the reasons for the selection of the project area were the following: 1. The danger to the quality and quantity of the marine life due to uncontrolled development of a project area which contains such unique features as salt marshes and endangered wildlife species. 2. The decline in coastal environment, including recreation and aesthetic values, due to the uninterrupted water-related general industrial development in the South Bay area. Development of this nature is obviously contra-indicated due to the lack of deep water access. 3. The desire to create a modern urban commercial/recreational center for the City of Chula Vista where a range of activity from housing to recreation could take place and where a living and working environmental could exist for the use and enjoyment of the general public. The existence of soil and groundwater contamination from hazardous materials that have depreciated property values and impaired investments and that can only be practically, economically remediated through the use of redevelopment powers. 5. The substantial existence of environmentally sensitive and degraded wetlands which require extraordinary land dedication, restoration, and long-term mitigation monitoring, all of which create a substantial burden on the economic use of the properties and result in depreciated values and impaired investments. 6. The lack of public improvements and utilities, which combined with the blighting conditions listed above, creates a serious physical and economic burden on Chula Vista which cannot be alleviated practically by government or private activity without redevelopment powers. in addition, the report on the redevelopment plan states: "Because of the general industrial character of the South Bay, the project area represents one of the last opportunities to provide public-oriented bayfront uses in this Bayfront Redevelopment Project Area Five Year Implementation Plan Page 3 B. Proqress in Eliminatinq Bliqhtinq Conditions Since adoption of the Plan in 1974, the Agency has worked to eliminate certain of these conditions through the following efforts: 1. Prepared a Mid-bayfront Development Plan in conjunction with the landowner/developer and regulatory agencies. 2. Prepared and processed Local Coastal Plan through the California Coastal Commission and received certification in February 1993. The plan includes all of the City's coastal properties, including the Bayfront Redevelopment Project Area. 3. Planned and constructed the Nature Interpretive Center in cooperation with the Bayfront Conservancy Trust. 4. Acquired and cleared properties for redevelopment along Bay Boulevard, north and south of F Street. 5. Successfully relocated auto wrecking businesses from the project area. 6. Acquired property for the reconfiguration of the CalTrans I-$05 southbound off-ramp which has been completed along with the widening of E Street, west of I-5. 7. Completed the following redevelopment projects: Anthony's Restaurant Days Inn El Torito Restaurant Rohr Corporate Headquarters Marina Gateway Industrial Project C. Current Bliqhtinq Conditions Despite the progress that has been made to date, existing blighting conditions in the project area are as follows:: 1. The existence of soil and groundwater contamination from hazardous materials that have depreciated property values and impaired investments and that can only be practically, economically remediated through the use of redevelopment powers. 2. The substantial existence of environmentally sensitive and degraded wetlands which require extraordinary land dedication, restoration, and long-term mitigation monitoring, all of which create a substantial burden on the economic use of the properties and result in depreciated values and impaired investments. 3. The lack of public improvements and utilities, which combined with the blighting conditions listed above, creates a serious physical and economic burden on Chula Vista which cannot be alleviated practically by government or private activity without redevelopment powers. Bayfront Redevelopment Project Area Five Year Implementation Plan Page 4 III. SPECIFIC GOALS AND OBJECTIVES FOR THE PROJECT AREA To address the conditions listed in II C above, the following goals are being pursued: 1. Enhance depreciated property values and encourage private development by the elimination of the economic blight created by the existence of soil and groundwater contamination in the Bayfront; in particular, exercise State Polanco Act authority to make economically viable the clean-up of Agency-owned properties on Bay Boulevard near F Street and the "Shangri-La" property. Such clean-up would not be economically practical without the redevelopment powers deriving from "Polanco." Once "clean "those properties can be disposed of for redevelopment purposes. 2. Provide for the enhancement and dedication of salt marshes, the inclusion of development buffers from sensitive habitat, and financial support for long-term mitigation programs in a manner which will not burden development to the point of infeasibility by negotiating disposition and development agreements with developers and by providing redevelopment-generated funding. 3. Provide for the delivery of public improvements in the project area such as streets, trails, parks, and drainage facilities through the utilization of redevelopment-generated funding, thereby allowing for the elimination of the blighting burden of the existing inadequacy of such improvements and the obligation on the developer to unilaterally provide such improvements, thereby creating the opportunity for the orderly, desirable, and economically-viable redevelopment of the Bayfront. IV. PROGRAMS, PROJECTS AND EXPENDITURES PROPOSED FOR THE NEXT FIVE YEARS Major programs and related expenditures proposed over the next five years are described below. Specific projects may be proposed under each program. These serve as examples of projects which may be undertaken by the Agency. However, other projects which meet the program requirements may also be pursued. The costs described are based upon anticipated tax increment cash flow over the next five years ne__.[t of debt service and administrative costs. A. Completion of Midbayfront Development Aqreement Since approval of the Local Coastal Program for the Chula Vista coastal areas, including the Bayfront Redevelopment Area, staff has been negotiating with the Midbayfront property owner/developer towards completion of a development agreement for this 105 acre development site. The proposed project includes 1600 hotel rooms, 1000 dwelling units, waterfront parks, lagoons, sports facilities and a cultural arts center. It also includes funding for the City's Nature Center. Major negotiating issues include funding for the cultural arts center and Nature Center, development staging, delivery of public improvements, implementation of environmental mitigation, and financial assistance from the Agency. Bayfront Redevelopment Project Area Five Year Implementation Plan Page 5 Total staff and legal consulting services costs for completion of a Development Agreement are estimated at $200,000. We anticipate the likelihood of additional major expenditures to implement this program. B. Amend Bayfront Redevelopment Plan The Bayfront Redevelopment Plan is scheduled to terminate in 1999. The Plan was completed in 1974 and does not include recent changes in state law or the approved Local Coastal Plan. The Redevelopment Plan must be amended to extend the term to the maximum allowable under current law (year 2014) and incorporate legislative changes and the recently approved Local Coastal Plan. An estimated $100,000 in staff and consulting services will be required for this activity. C. Clean Up Contaminated Propertie~ The Agency owns several properties on the Bayfront with contaminated soils. Clean-up of these properties has been initiated with funding assistance from former property owners and insurance companies under the State Polanco Act. The Agency will oversee clean-up activities. Completion of clean-up work is expected to cost $330,000, of which $130,000 will be attributable to the Agency in staff and consuJtant costs. D. Initiate Grading, Infrastructure and Park Improvements in the Midbayfront The Midbayfront Development Plan includes approximately $42 million in public improvements (streets, parks, lagoons and conservation). It is the Agency's goal that this work be initiated in the next five years. This will require the preparation, analysis and processing of the Specific Plan, grading plans, and related reports. Agency/City costs to review and process required documents are estimated at $100,000, some of which will be reimbursed through permit processing fees. E. Disposition of Aqency Property at Bay Boulevard and E Street Property The Agency owns a six-acre site at the northeast corner of Bay Blvd. and E Street which will be accessed through the Midbayfront. The development of this site is dependent upon staging of Midbayfront development and completion of infrastructure to provide access. The value of this property has been depreciated by the existence of contamination and substandard improvements for industrial use. The improvements have been removed. The contamination will be addressed by Project "C" above. The property, which has freeway visibility, will increase with consolidation of its parcels and as the Midbayfront project comes closer to reality. Marketing of this parcel should occur concurrent with the initiation of Midbayfront infrastructure improvements and is estimated to cost $20,000 in staff and marketing expenses. Bayfron'~ Redevelopment Project Area Five Year Implementation Plan Page O V, HOW GOALS, OBJECTIVES, PROGRAMS AND EXPENDITURES WILL ELIMINA ~ ~ BLIGHT The impact that goals, objectives, programs and expenditures will have towards the alleviations of blighting influences as noted in the Redevelopment Plan is described below and summarized in the attached matrix (Exhibit B). A. Goals and_~jectives The goals and objectives, as stated in the Redevelopment Plan and in Section III above, will address blighting conditions caused by the existence of hazardous conditions, the extraordinary land dedication and long-term mitigation monitoring required by the existence of sensitive habitat, and the lack of public improvements in the Bayfront. The goals and objectives support the creation of a modern urban center; a focal point with an identifiable image which compliments the downtown commercial district. B. Proqrams The specific programs and expenditures will eliminate blight as described below and summarized on the matrix attached as Exhibit B. 1. Completion of Midbayfront Development A.qreement Will provide the legal and financial framework to carry out the Midbayfront development program in compliance with the approved Local Coastal Plan. Requirements will include environmental conservation measures, infrastructure improvements, development phasing plan, development of bayside parks and recreational facilities, and funding for the City's Nature Center and proposed Cultural Arts Center. The agreement will also provide Agency financial assistance, conditioned upon performance, to carry out the project. The completion of the development agreement will define the participation by the Agency and the developer in the provision of the improvements and mitigation that burden the property and create economic blighting conditions. 2. Amendment of the Redevelopment Plan The proposed Midbayfront project, as approved in the Chula Vista Local Coastal Plan, cannot be carried out without amendment of the Redevelopment Plan to accommodate the approved LCP and extend the duration of the project to provide control over and financing for the multi-year project. The current Redevelopment Plan, approved in 1974, will expire in 1999. Under state law, the plan can be extended to 2014. Amending the Bayfront Redevelopment Plan is essential to the elimination of blight in the Bayfront. The amendment will allow the time and the financial resources Bayfront Redevelopment Project Area Five Year Implementation Plan Page 7 for the Agency to accomplish the goals and programs identified in this document. Without the amendment, none of the goals and programs are accomplishable. 3. Cleanup of Contaminated Properties At the time that the Bayfront Redevelopment Project was approved, it was not known whether any properties contained soil or groundwater contamination, and these issues were not specifically listed as blighting influences. Subsequently, the Agency has acquired a number of properties in the Midbayfront, three of which contain contaminated soils with possible impacts to the groundwater. Contamination must be addressed to comply with state regulations if these properties are to be redeveloped. Cleanup of these properties will address conditions caused by earlier uncontrolled development which create a danger to the quality of marine life and decline of the coastal environment. Clean-up of the properties is essential to eliminating the blighting effect of the depreciation of the subject property. 4. Initiate Gradin~h Infrastructure and Park Improvements in the Midbayfront The Agency-participation in the provision of these public improvements is essential to the elimination of blight, as the resources do not exist for the City or private developers to bear the total burden of such improvements. 5. Disposition of Agency Property at Bay Boulevard and E Street Disposition and development of this property will alleviate blighting conditions that have depreciated property values. These blighting conditions have been created by the existence of contamination and the inadequately-sized lots. The Agency action will provide for clean-up of the contamination and the marketing for redevelopment of the consolidated parcels. VI. EXPLANATION OF HOW THE GOALS, OBJECTIVES, PROJECTS AND EXPENDITURES WILL IMPLEMENT PROJECT HOUSING REQUIREMENTS A. Goals and Objectives The Bayfront Redevelopment Project was adopted prior to January 1, 1976, the effective date of Section 33413, thus the inclusionary housing provision of Sections 33413(b) do not apply to the Bayfront Redevelopment Project. The project contributes 20% of all tax increment generated to the Iow/moderate income housing fund which provides Agency assisted housing both within and outside of redevelopment areas. Exhibit C further describes housing goals, production and funding. B. Proiects and expenditures to be Made Durinq the Next Five Yearn 1. Annual housing production goals have been established Citywide. See Citywide Housing Goals attached as Exhibit C. Bayfront Redevelopment Project Area Five Year Implementation Plan Page 8 2. Estimated number of Iow/moderate income housing units to be destroyed in Years 1-5: · None - There are no Iow/moderate income housing units within the Project Area. 3. Replacement Housing Site As part of the Mid-bayfront development, one thousand new housing units are proposed. The City's housing program requires that the developer provide 10% Iow/moderate income units (100 units) on or off-site. The developer has indicated a preference to provide these units off-site. The provision of these units will be a condition of development and stipulated in the Development Agreement. 4. Low/Moderate Housing Fund Expenditure Program The Bayfront Redevelopment Project redistributes 20% of the tax increments accruing from the Project Area to the Agency's Low/Moderate Income Housing Fund. Estimated deposits and expenditures are included in the Agency's Housing Plan, see Exhibit C. 5. Housing Production Plan · See Exhibit C. 6. Low/Moderate Income Housing Production Results · See Exhibit C. VII. Midterm Review and Readoption and Amendment of the Implementation Plan Adoption of the Implementation Plan shall not constitute an approval of any specific program, project, or expenditure and does not change the need to obtain any required approval of a specific program, project or expenditure from the Agency or community. The projects described in the Implementation Plan are examples of undertakings which will meet the goals and objectives of the Redevelopment Project. Other projects which meet program requirements may also be pursued by the Agency. This is the initial Implementation Plan for the Bayfront Redevelopment Project. This plan will be reviewed by the Agency at least once within the five year term of the Plan. The review, including a noticed public hearing, will take place no earlier than two years and no later than three years after adoption of this Initial Plan. The Agency will bold a requisite public hearing and adopt a new Implementation Plan every five years from the date of adoption of the Initial Plan. The Implementation Plan may be amended by the Agency at any time following a noticed public hearing.