HomeMy WebLinkAboutRDA Reso 1997-1552 RESOLUTION NO. 1552
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA APPROVING THE MID-TERM REPORT FOR THE FIVE-
YEAR IMPLEMENTATION PLAN FOR THE OTAY VALLEY ROAD
REDEVELOPMENT PROJECT AREA PURSUANT TO SECTION 33490
OF THE COMMUNITY REDEVELOPMENT LAW
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 foals 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, the Redevelopment Agency of the City of Chula Vista (the "Agency")
approved a five-year Implementation Plan including the Housing Implementation Plan for the Otay
Valley Road Redevelopment Project Area on December 13, 1994; and
WHEREAS, A Mid-Term Report on progress made on the Implementation Plan for
the Otay Valley Redevelopment Project has been prepared and submitted to the Agency for review
and consideration; 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 Otay Valley Road 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 Otay Valley Road
Redevelopment Project on August 19, 1997; and
WHEREAS, Review of the Redevelopment and Implementation Plans does not
constitute approval of a project under the California Environmental Quality Act (CEQA) and
therefor 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 does 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.
Resolution 1552
Page 2
NOW, THEREFORE, BE IT 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 Otay Valley
Road Redevelopment Project, attached hereto as though fully set forth herein, is hereby accepted
and approved.
Section 2. 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 amended
before its expiration date in accordance with Community Redevelopment Law.
Section 3. The review and approval of the Mid Term Report and continuation of the
implementation Plan for the Otay Valley Road Redevelopment Project Area is not a project 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
CD 'hr rEic'~t oS:'o°~on~ m u n it ~ Development~ ~ '/~t:oh:n ~Yy ~
Resolution 1 552
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 Rindone, Salas, Horton, Moot, Padilla
NOES: None
ABSENT: None
ABSTENTIONS: None
Shidey Ho~bn
Chairman
ATTEST: ~ ~
Chris Salomone
Executive Secretary
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss:
CITY OF CHULA VISTA )
I, Chris Salomone, Executive Secretary to the Redeveiopment Agency of the City of Chula Vista,
California DO HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution
No. '1552 and that the same has not been amended or repealed.
Dated: August 20, 1997 ~......L_ ~
Chris Salomone
Executive Secretary
FIVE YEAR IMPLEMENTATION PLAN
(Health & Safety Code Section 33490)
OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA
I. iNTRODUCTION AND BACKGROUND
A. Introduction
The five year implementation plan for the Otay Valley Road Redevelopment Project is adopted
to meet the requirements of Section 33490 of the Health and Safety Code. The plan is a
flexible policy document and not a limitation on the Agency's activities in this project area
over the coming five years.
B. Background
The Otay Valley Road Redevelopment Project Area is an urbanized area located in the
southeastern corner of the City and comprises 771 + acres. The Otay Landfill (County)
occupies approximately 265 acres in the northerly section of the project area. Approximately
163 acres along the southerly boundary are classified as environmentally sensitive wetlands
and earmarked for conservation and recreation. Public streets comprise 21 acres. The
remaining 322 acres, or 43% of the project area, is zoned for light industrial development,
At the time of approval of the redevelopment project, 70 percent of the developable acreage
was vacant. Currently, 42 percent of the redevelopment project area represents potential for
future economic development opportunities.
The redevelopment project was formed in December 1983 in order to eliminate conditions of
blight which were impacting industrial development in the area. in 1983 this area represented
the largest resource of under developed urbanized property in the City which could be used
for industrial development, thereby improving the City's employment and economic base.
Economic forecasts at the time of project adoption projected a five acres per year absorption
rate. In actuality, over 80 acres have been developed over the past decade.
The Redevelopment Plan has a duration of 40 years (per AB 1290 and recently adopted
Qrdinance 2611 ), until the year 2032. Financial limitations have been established as follows:
$45 million in taxes which may be divided and allocated to the Agency, or if bonds are issued
or reimbursement agreements are entered into with other public agencies and/or private
entities, a cumulative total of 9115 million, plus any amounts required by reimbursement
agreements with affected taxing agencies.
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.
The Redevelopment Area boundaries are described on the attached map (Exhibit A).
Otay Valley Road Redevelopment Project Area
Five Year Implementation Plan Page
II. BLIGHTING CONDITIONS
A. Pre-Plan Conditions
The Redevelopment Plan adopted in 1983 identified the following blighting conditions in the
Project Area:
1. Undeveloped, unproductive and underdeveloped properties throughout the Area.
2. Inadequate street and circulation systems to serve potential traffic demand.
3. Inadequate street lighting, lack of curbs and gutters, and poor public improvements
and facilities.
4. The need for additional public and private utilities in order to accommodate the
development of properties within the Project Area boundaries, including the need for
additional flood control, water service, storm drains and sewer facilities, and for the
development of fire protection and prevention facilities.
5. The lack of proper utilization of many properties within the Project Area boundaries
resulting in development constraints on a number of these properties, thus producing
a stagnant and unproductive condition of land which is otherwise potentially useful
and valuable.
B. Progress in Eliminating Blighting Conditions
Since adoption of the Plan in 1983, the Agency has worked to eliminate certain of these
conditions through the following efforts:
· Installation of a 10" water line in Otay Valley Road.
· Extension of natural gas and electric service arong Maxwell Road
· Developed plans, financing, and initiated construction for the widening and
improvement of Otay Valley Road from I-$05 to the Otay River Bridge crossing. This
project includes the upgrading and undergrounding of electric and telephone utility
lines, and improved water service, it also includes the purchase and rehabilitation
of fourteen acres of wetlands (eight have already been purchased).
· Reviewed and approved plans, and prepared development agreements for 17 new
industrial and 2 commercial projects which have been completed or are currently
under construction.
· Approved a Development Agreement for the Chula Vista Auto Mall, Phase I.
· Provided Industrial Development Bond financing for 2 industrial projects.
Otay Valley Road Redevelopment Project Area
Five Year Implementation Plan Page 3
· Eliminated all auto recycling land uses south of Energy Way and enforced the
improvement of landscaping and maintenance of properties used for auto recycling
on Energy Way.
c. Current Conditions
Despite the progress that has been made to date, certain blighting conditions remain which
will impact future industrial and commercial development in the area. These conditions
include:
· Depreciated or stagnant property values or impaired investments, including, but not
necessarily limited to, those properties containing hazardous wastes that require the use
of agency authority as specified in Article 12.5 (commencing with Section 33459).
Several large parcels remain impacted by hazardous soil and groundwater contamination.
· Adjacent or nearby uses that are incompatible with each other and which prevent the
economic development of those or other portions of the project area. An example of
remaining blighting incompatibility is the City's Animal Shelter, which is currently located
in the middle of a large vacant parcel and is restricting the integrated development of the
site.
· Factors that prevent or substantially hinder the economically viable use or capacity of
buildings or lots. This condition can be caused by a substandard design, inadequate size
given present standards and market conditions, lack of parking , or other similar factors.
Traffic circulation inadequacies remain which are impacting development of major
industrial/commercial sites.
III. SPECIFIC GOALS AND OBJECTIVES FOR THE PROJECT AREA
To further eliminate blighting conditions described above, the following goals and objectives
have been established in the Redevelopment Plan:
A. Goal
The Agency proposes to use the process of redevelopment to eliminate and mitigate the many
aspects of existing visual, economic, physical, social, and environmental blight within the
Project Area.
Within this broad goal, and as an indicator in the evaluation and determination of project
priorities, the following specific redevelopment objectives are established by the Agency:
B. Objectives
1. The elimination of existing blighted conditions, be they properties or structures, and the
prevention of recurring blight in and about the Project Area.
Otay Valley Road Redevelopment Project Area
Five Year Implementation Plan Page 4
2. The development of property within a coordinated land use pattern of commercial,
industrial, recreational, and public facilities in the Project Area consistent with the goals,
policies, objectives, standards, guidelines and requirements as set forth in the City's and
County's adopted General Plan and Zoning Ordinance.
3. The development of public services and facilities including, but not limited to,
recreational, maintenance, and operational services and facilities as are necessary and
required for the development of the Project Area.
4. The elimination of environmental deficiencies including inadequate street improvements,
inadequate utility systems, and inadequate public services; and its potential social,
physical, and environmental characteristics of bight.
5. The development of a more efficient and effective circulation corridor system free from
hazardous vehicular, pedestrian, an bicycle interfaces.
6. The implementation of techniques to mitigate blight characteristics resulting from
exposure to highway and public right-of-way corridor activity and affecting adjacent
properties within the Project Area.
7. Beautification activities to eliminate all forms of blight including, but not limited to, visual
blight, in order to encourage community identity.
8. The encouragement, promotion, and assistance in the development and expansion of local
commerce and needed commercial and industrial facilities, increasing local employment
prosperity, and improving the economic climate within the Project Area, and the various
other isolated vacant and/or underdeveloped properties within the Project Area.
9. The acquisition, assemblage, and/or disposition of sites of usable and marketable sizes
and shapes for residential, open space, recreational and Project public facility
development within the Project Area.
10. The creation of a more cohesive and unified community by strengthening the physical,
social, and economic ties between residential, commercial, industrial, and recreational
land uses within the community and the Project Area.
11. The acquisition and disposition of property for the purpose of providing relocation
housing, as may be required, to implement the objectives of this Plan.
1 2. To provide for affordable housing availability as required by County, Region, or State law
and requirements, as necessary and desirable, consistent with the goals and objectives
of the community.
13. To encourage the coordination, cooperation, and assistance of other local agencies, as
may be deemed necessary, to ensure that projects undertaken by this Agency are
implemented to their fullest and practical extent.
Otay Valley Road Redevelopment Project Area
Five Year Implementation Plan Page 5
14. The achievement of a physical environment reflecting a high level of concern of
architectural and urban design principals deemed important by the community.
15. To encourage community involvement and citizen participation in the adoption of policies,
programs, and projects so as to ensure that the Redevelopment Plan is implemented in
accordance with the objectives and goals of the General Plan.
16. To provide a procedural and financial mechanism by which the Agency can assist,
complement, and coordinate public and private development, redevelopment,
revitalization, and enhancement of the community.
IV, PROGRAMS, PROJECTS AND EXPENDITURES PROPOSED FOR THE NEXT FIVE YEAR~
A. Redevelopment Expenditures
The preliminary list of Redevelopment programs and projects provided below represent a list
of staff-identified actions that, if implemented, will have a direct positive effect on the
elimination of blighting influences in the Project. Inasmuch as the proposed programs need
to be evaluated during the course of annual budgetary approval actions, the proposed
expenditures have not been fully determined, and in most instances, will be a function of
available redevelopment funding. The annual budget approval process will be the framework
within which staff-proposed programs will be evaluated and "compete" for funding approval
by the Redevelopment Agency Board. Additional programs are needed to completely eliminate
blight in the Project Area but the programs described in this section are proposed to be
implemented over the next five years. The costs described are based upon anticipated tax
increment cash flow over the next five years net of debt service and administrative costs.
B, Redevelopment Programs and Projects
1. Complete Improvements to Otay Valley Road
Construction on the widening and improvement of Otay Valley Road began in January 1994
and is expected to be completed in 1995. Phase I and II of this project currently under
construction, will widen the roadway to six lane major arterial standards from 1-805 to Nirvana
Avenue. East of Nirvana, the roadway will taper to three lanes to the City's easterly
boundary. Phase III which remains to be constructed, includes widening of the Otay River
bridge crossing which was reconstructed this summer, and widening of approaches to the
bridge. Agency and City staff are coordinating design and construction activities, including
the upgrading and undergrounding of utilities and improvement of water service. The total
cost of Phase I, II and III of the project is $12, 351,634 and includes an Agency contribution
of $1,765,167. Completion of Phase II and Phase III will cost 92.3 million.
2. Resolve Soil/Water Contamination Issues
Several properties in the Redevelopment Area are impacted by contaminated groundwater
and/or soils. The presence of contaminated water beloW certain parcels may not, in itself,
present a health hazard or preclude development of parcels. However, to the extent such
Otay Valley Road Redevelopment Project Area
Five Year Implementation Plan Page 6
conditions, including the presence of contaminated soils, affect the financing of development
on undeveloped parcels, contamination could hinder future development in the area. Agency
staff will work with affected property owners, county, and state regulatory agencies to
develop plans and timetables for remediation of contamination problems using available
legislative and funding resources.
In addition, staff will work with the property owner of the southwest corner of the Auto Park
site towards relocation of the stockpiled contaminated soils. By contractual agreement, this
material must be removed no later than August 1997. Removal will require coordination with
county and state health officials and county landfill officials.
Estimated staff and consulting costs over the next five years is 975,000.
3. Expand Auto Park
The Chula Vista Auto Park, comprising seventeen acres, was established in 1993. The first
two dealerships opened in 1994. In order for this project to be economically viable, additional
dealerships must be attracted to the area. The current auto park site can accommodate one
additional dealership. However, expansion to the east on the adjacent 23 acres of vacant land
can accommodate an additional four to six dealerships. The City's Animal Shelter is located
on a 3/4 acre parcel in the center of this property thereby restricting integrated development.
Agency staff will work with the property owners and their consultants and City staff in an
effort to relocate the Animal Shelter and expand the Auto Park.
Total staff and consultant costs are estimated at 9100,000. An additional 9600,000 is
estimated to purchase a new site and reconstruct the Animal Shelter.
4. Resolve Site Specific Traffic Circulation Issues Impeding Development
Development of the twenty acre parcel located at the southeasterly corner of 1-805 and Otay
Valley Road requires the resolution of traffic circulation issues also impacting two adjacent
developed properties, and requires coordinated signalized access to Otay Valley Road. This
will require Agency staff coordination and traffic consultant services as well as the installation
of traffic signalization. Agency staff and consulting services are estimated to cost 975,000.
Traffic signalization is estimated to cost 9200,000.
5, Provide Support for the Otay Regional Park
The proposed Otay Regional Park will provide active and passive recreational opportunities in
conjunction with preservation of natural habitat in the Otay River Valley, a section of which
forms the southerly boundary of the project area. Agency staff participate in this multi-
jurisdictional planning effort. Development of the Auto Park infrastructure has provided
access to the river valley and public parking. Future efforts will entail the development of park
improvements at the southerly end of Brandywine Avenue to serve as a trailhead and the
acquisition of an additional six acres of wetland acreage for the park system which will serve
as additional mitigation for the Otay Valley Road Widening project. Total cost of park
Otay Valley Road Redevelopment Project Area
Five Year Implementation Plan Page 7
development is estimated at $240,OO0. The cost of purchase of the additional six acres of
wetlands is $120,000, totalling $360,000. '
V. HOW GOALS, OBJECTIVES, PROGRAMS AND EXPEI~DITURES WILL ELIMINATE BLIGHT
The impact that goals, objectives, programs and expenditures will have towards the alleviation
of blighting influences as cited in the Redevelopment Plaqis described below. The impact of
programs is also summarized on the attached matrix (Exl~ibit B).
A. Goals and Objectives
The goals and objectives, were specifically developed to ~lleviate conditions of physical and
economic blight which impede development in the projec~t area.
The goal established for the project area (in the Redevelo~Pment Plan) specifically references
the use of the redevelopment process to eliminate and ~itigate all aspects of blight.
The objectives specifically address blighting conditions impeding the development of
properties in the project area including inadequate traffic circulation systems, lack of public
facilities, inadequate utilities and services, and the need to eliminate visual blight due to
incompatible uses. The objectives also address issues,~'oncerning the proper utilization of
properties in this project area including issues caused by the proximity to 1-805. The
objectives are the coordinated interface between commercial, industrial, industrial and
recreation land uses, and acquisition and assemblage of property for public purposes.
B. Programs I
The program and related expenditures to complete Otay Valley Road carry out this goal by
specifically addressing the inadequacy of this two lane fa~cility with no curbs, sidewalks and
inefficient lighting to accommodate anticipated development in the area.
The program and expenditures to resolve soil and groundvvater contamination issues address
the condition of undeveloped, underdeveloped and unprodUctive properties in the project area.
The program will address specific problems affecting two major properties in the project area
The program to expand the Auto Park also addresses tee conditions of inadequate public
improvements, public facilities, visual blight characterlzed by, among other things, an
abundance of outdoor storage, and open yard/compound ~ses, junk yards and other marginal
type businesses. .
Resolution of site specific circulation issues addresses inadequate traffic circulation and the
need for infrastructure improvements. Since development of several major properties are
currently restricted by inadequate access to Otay Vall~ey Road and 1-805, resolution of
circulation issues will also address lack of development arid proper utilization of properties in
the project area.
Olay Valley Road Redevelopment Project Area
Five Year implementation Plan Page 8
Development of the Otay Valley Regional Park will address issues related to the under-
utilization and unproductive use of properties and valuable resources in the project area.
Through conservation efforts, it will also address conditions related to improved flood control
in the Otay River Valley.
VI. EXPLANATION OF HOW THE GOALS, OBJECTIVES, PROJECTS AND EXPENDITURES
WILL IMPLEMENT PROJECT HOUSING REQUIREMENTS
A. Goals and Objectives
California's Community Redevelopmen~ Law requires that not less than 20% of all tax
increment generated by the Project shall be used for the purpose of increasing or improving
the community's supply of very Iow, Iow, and moderate income housing. The law requires
that at least 15% of all new or rehabilitated dwelling units developed with housing assistance
by entities other than the Agency in a Redevelopment Project Area be affordable to Iow and
moderate income households, of which 40% must be for, and occupied by, very Iow income
households. Additionally, affordable dwelling units shall remain affordable for the longest
feasible time (usually 55 years) but no less than the period of land use controls established
in the Project plan (40 years as amended pursuant to AB 1290).
B. Projects and Expenditures to be Made During the Next Five Years.
1. Annual housing production goals have been established Citywide. See Citywide Housing
Goals attached as Exhibit C.
2. Estimated number of Iow/moderate income housing units to be destroyed in Years 1-5:
· Two - There are currently two Iow/moderate income rental housing units within the
Project Area. These are Iocated on a 23 acre site which is planned for
redevelopment by the owner. However, at this time the Agency has no plan to
participate in redevelopment of subject site.
3. Replacement Housing Site
The Redevelopment Project Area includes two moderate income rental housing units
which will eventually be displaced by development of the site. All of the developable land
within the project area is zoned for light industrial development. Consequently, there are
no housing units contemplated for development within the project area. There are no
areas suitable for housing development. If the housing is displaced as a result of Agency
activity, replacement housing will be provided as part of the Citywide Iow/moderate
housing program.
· For a location of Iow/moderate housing development sites, see Exhibit C.
Otay Valley Road Redevelopment Project Area
Five Year Implementation Plan Page 9
4. Low/Moderate Housing Fund Expenditure Program
· The Otay Valley Road 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 expendltures are included in the Agency's
Housing Plan, see Exhibit C, Table 1.
5. Housing Production Plan
· See Exhibit C, Section V.
6. Low/Moderate Income Housing Production Results
· See Exhibit C, Section V.
VII. CONCLUSION
Adoption of the implementation plan shall not constitute a 1 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 Agelcy or community. The projects
described in the implementation Plan are examples of und ;rtakings which will meet the goals
and objectives of the Redevelopment Project. Oth(r projects which meet program
requirements may also be pursued by the Agency.
This is the initial Implementation Plan for the Otay Valley Road 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 plac~ no earlier than two years and no
later than three years after adoption of this initial Implerqentation Plan.
The Agency will hold 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.
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