HomeMy WebLinkAboutPlanning Comm Rpts./1997/10/09
Thursday. October 9, 1997
5:30 p.m.
Council Conference Room
Administration Building
Snecial Joint Meetin~/Worksession
of tbe City of Chula Vista City Council
and the P]annin~ Commission
CALL TO ORDER
1. ROLL CALL: Councilmembers Moot _' Padilla _' Rindone _' Salas _' and Mayor
Horton
2.
REPORT
3.
REPORT
Planning Commissioners Aguilar _, O'Neill _' Ray _, Tarantino _' Thomas
_' Willet _, and Chair Davis _'
BUSINESS
LACK OF ADEQUATE INDUSTRIAL ZONED LAND IN CHULA VISTA - San
Diego County bas a decreasing supply of "deliverable" industrial acreage and an
increasing industrial demand. Past events and current issues are resulting in a diminished
industrial land inventory in Chula Vista master planned communities and tbe Bayfrant,
Southwest and Otay Valley Road Redevelopment Project Areas. The current lack of
industrial inventory dictates the need to reevaluate our recruitment strategies and outreach
efforts and/or to augment and upgrade our industrial land and building supply. Proposed
activity could further reduce the availability of industrial property and further limit the
City's ability to respond to ongoing and future business demands. Staff recommends that
Council and the Planning Commission review the information and provide direction to
staff. (Community Development Director)
THE CITY OF CHULA VISTA AFFORDABLE HOUSING PROGRAM--The
purpose of this report is to update, the City Council on the current status of affordable
housing in Chula Vista, to indicate the progress that has been made, and evaluate the
current efforts, resources and strategies that are available to address continuing needs.
Staff recommends that Council review the information and provide direction to staff.
(Community Development Director)
ORAL COMMUNICATIONS
This is an opportunity for the general public to address the City Council on any subject matter within the
Council'sjurisdiction that is not an item on this agenda for public discussion. (State law, however, generally
prohibits the City Council from taking action on any issues not included on the posted agenda.) lfyou wish to
address the Council on such a subject, please complete the "Request to Speak Under Oral COlllmunications
Fonn" a~ailable in the lobby and submil illo Ihe Cily Clerk prior 10 the meeting. 17lOse who Jf..'ish to speak,
please give your name and address for record purposes and follow up action.
Agenda
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October 9, 1997
OTHER BUSINESS
4. CITY MANAGER'S REPORTCS)
a. Scheduling of meetings.
5. MAYOR'S/CHAIR'S REPORTCS)
6. COlJNCIL/COMMISSIONER'S COMMENTS
ADJOURNMENT
The City Council will adjourn to the regular City Council meeting on October 14, 1997 at 6:00 p.m. in the City
Council Chambers. The Planning Commission will adjourn to the regular Planning Commission meeting on October
22, 1997 at 7:00 p.m. in the City Council Chambers.
* * * COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT * * *
Tbe City of Chula Vista, in complying with the Americans with Disabilities Act (ADA), request individuals who
require special accommodations to access, attend, and/or participate in a City meeting, activity, or service request
such accommodation at least forty-eight hours in advance for meetings and five days for scheduled services and
activities. Please contact the City Clerk for specific information at (619) 691-5041 or Telecommunications Devices
for the Deaf (TDD) (619) 585-5655. California Relay Service is also availahle for the hearing impaired.
Notice is hereby given, pursuant to Gm'ernment Code Section 54956, that the Mayor and City Council
of the City of Chula Vista has called and will convene a Special Joint Meeting/Worksession of the City of
Chula Vista City Council and Planning Commission on Thursday, October 9, 1997 at 5:30 p.m. in the Council
Conference Room, Administration Building, 276 Fourth A venue, Chub Vista, CA.
JOINT COUNCIL/PLANNING COMMISSION AGENDA STATEMENT
Item
Meeting Date 10109197
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ITEM TITLE:
REPORT: LACK OF ADEQUATE INDUSTRIAL ZONED LAND IN CHULA VISTA
SUBMITTED BY:
Community Development Director [~S J
Executive Oirect03 (415ths Vote: Yes_ No~
REVIEWED BY:
BACKGROUND:
San Diego County is faced with a decreasing supply of "deliverable" (readily developable) industrial acreage and
an increasing industrial demand. Additionally. there is a shortage of large parcels to accommodate large
manufacturers. With the future development of EastLake Business Center Phase II in question; Otay Ranch
industrial development off in the future, and questions regarding future land uses in the Bayfront and Otay Valley
Road areas, Chula Vista faces this same potential dilemma on a local scale. Community Development staff has
recently received several requests for property and in many cases has been unable to offer a site that meets
the needs of the company. This recent activity has brought to the forefront the shortage of deliverable
industrially zoned property in Chula Vista. The attached Issue Paper (Exhibit 2) is intended to provide Council
with an overview of why industrial uses are important to a community, how Chula Vista has planned for such
uses, concerns regarding the adequacy of our industrial land supply to meet current and future demands, and
suggested short. and long.term approaches to address potential industrial inventory shortages.
RECOMMENDATION: Staff suggests that Council evaluate and address the industrial land supply from both
a short- and long. term perspective. Short. and long.term issues and recommendations are outlined below:
Short. Term Recommendations:
That Council:
1) Affirm the City's desire to preserve the High Tech/Biotech Zone by maintaining an industrial
land use designation in both Phases I and II of the EastLake Business Center;
2) Direct staff to analyze the potential to create an overlay zone that will allow
Research/lndustrial uses within the 30 acre property adjacent to Eastlake Business Center; and
3) Direct staff to analyze the impact of proposed industrial land use conversions utilizing the 4.step
process described herein.
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Page 2. Item _
Meeting Date 10/09/97
Lono- Term Recommendations:
1) That Council direct staff to prepare a report which addresses:
a) the need to preserve existing industrial stock via an adopted policy; and
b) the potential of redesignating areas of the City to industrial land use_
2) That Council provide staff with their vision as relates to the future role of industrial
development within the Baytront, otay Valley Road and Southwest areas in order to help staff
tailor ongoing and future economic development promotional activities.
BOARDS/COMMISSIONS RECOMMENDATION: In a letter to Council dated October 15, 1996, the
Chula Vista Economic Development Commission expressed their concern regarding the diminishing supply of
industrial acreage in Chula Vista, and suggested that Council direct staff and the Planning Commission to
formulate a policy regarding replacement of industrial land so that the City is prepared to accommodate large
industrial users attracted to our City as the regional economy continue to recover (see Exhibit 1). The Planning
Commission has requested that the workshop on this issue be held jointly with the Commission and Council.
DISCUSSION:
IMPORTANCE OF INDUSTRY TO A COMMUNITY
One major benefit of industrial businesses is the direct creation of high paying jobs, which raises the area's
standard of living_ Industrial development also generates greater "spin-off" benefits in terms of indirect jobs and
employee-related tax revenues. In addition, manufacturers are excellent economic engines because they bring
new wealth into the community rather than just recycle the same dollars. Finally. ,industry increases a
community's property tax base and generally produces more' revenue to a City's General Fund than expenses for
municipal services to support that industry_
ADOPTED PLANS RELATED TO INDUSTRIAL DEVELOPMENT
Several planning and policy documents have been adopted by the Chula Vista City Council which address the need
for industrial development and which set aside land areas for this purpose. Past events and current issues are
impacting these designated industrial areas in the EastLake, Rancho Del Rey, Sunbow II. and otay Ranch master
planned communities, as well as in the Baytront, Southwest and Dtay Valley Road Redevelopment Project Areas,
resulting in a diminished industrial land inventory.
ONGOING INDUSTRIAL DEVELOPMENT EFFORTS
The Community Development Department has been promoting industrial development for many years with
initiatives such as the High Tech/Biotech Zone and the Border Environmental Commerce Alliance (BECA), in
addition to citywide image enhancement efforts, business attraction and assistance programs, and redevelopment
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Page 3. Item _
Meeting Date 10109/97
activities. These efforts have been predicated on the availability of appropriate. developable, industrially zoned
land. Due to the improvement in the economy and successful Chula Vista business outreach efforts, we are now
seeing tangible demand for property. The current shortage of "deliverable" industrial inventory suggests the need
to reevaluate our recruitment marketing strategies and/or to augment and upgrade our industrial land and building
supply.
INDUSTRIAL lAND SUPPLY IN CHUlA VISTA
During the recession, and due to lack of industrial activity, the City's supply of industrial land was diminished
due to rezonings to accommodate non.industrial uses. Today, readily developable industrial properties are
generally limited to 20.:1: acres in Eastlake Business Center Phase I and a few parcels in the Bayfront.
Southwest and Otay Valley Road. The limited supply of industrial land is exacerbated by the fact that the
majority of available parcels are under five acres. which precludes many types of industrial users such has
biotech and high tech manufacturers. Much of the available property has additional constraints to immediate
development, such as lack of infrastructure, environmental contamination, or limited access.
Proposed activity could further limit the City's ability to effectively respond to business needs.
Proposals include rezoning portions of Phase II of the Eastlake Business Park, approximately 50% of the Sunbow
Industrial Park and other industrial properties to non. industrial uses, as well as requests to use existing industrial
buildings for non.industrial purposes.
INDUSTRIAL DEVElOPMENT TRENDS
The San Diego region's industry has shifted to include non.defense related, technology based companies. The
region has an opportunity to transform itself into a high performance, globally competitive international economy,
an economy that will generate abundant, high paying jobs and raise the standard of living. Demand for industrial
land and buildings is significantly increasing in the region and. in Chula Vista. As noted, only 5 acres of industrial
property sold in 1992 in all of San Diego County; in 1996 this increased to 800 acres. As a result of the
improved economy and successful business attraction efforts bearing fruit, demand for industrial land has shown
a marked increase in Chula Vista. Unfortunately. Community Development staff is experiencing difficulty
identifying deliverable vacant sites to meet current demand.
HDW CAN CHUlA VISTA ADDRESS THE INDUSTRIAL lAND SHDRTAGE?
Negative impacts may result if actions are not taken to mitigate the diminishing supply of industrial land. Several
cities are currently considering measures to increase their industrial areas, such as preserving remaining industrial
stock. and/or modifying commercial zones to allow for limited light industrial uses. Staff recommends that the
industrial land supply in Chula Vista be approached from both a short term and long term perspective. Staff
recommends that Council: 1) affirm the City's desire to preserve the High Tech/Biotech Zone by
maintaining an industrial land use designation in both Phases I and II of the Eastlake Business Center;
2) the feasibility of creating industrial overlay zones and/or amending the existing zoning ordinance to
allow for limited light industrial uses within certain commercial areas throughout the City; and 3) direct
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Page 4, Item _
Meeting Date 10109/97
staff to analyze the impact of proposed industrial land use conversions utilizing the following 4.step
process:
. Early notification of Council regarding the land use proposals.
. Staff review of the potential for significant fiscal or economic impacts to the City.
. If significant impacts are identified, preparation by the applicant and/or staff of an
economic impact analysis for submission to the Planning Commission and City Council.
. Input from the Economic Development Commission, if requested by the applicant or
staff.
For the long term, we need to ensure an adequate supply of developable industrial property that will meet future
need. Staff recommends that Council direct staff to prepare a report which address: 1) the need to
preserve existing industrial stock via an adopted policy; and 2) the potential of redesignating areas of
the City to industrial land use. Staff also recommends that Council provide staff with their vision as relates
to the future role of industrial development within the Bayfront, Otay Valley Road and Southwest areas in order
to help staff tailor ongoing and future economic development promotional activities.
(CD) H:\HOMEICOMMDEV\STAFF.REP\10.09.97\industriaIIOctober 3,1997 (3:59pm}]
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EXHIBIT 1
CllY OF
CHULA VI5fA
ECONOMIC DEVELOPMENT COMMISSION
October 15, 1996
The Honorable Mayor and City Council
276 Fourth Avenue
Chula Vista, CA 91910
RE: DIMINISHING SUPPLY OF INDUSTRIAL LAND
Honorable Mayor and City Council:
The Economic Development Commission wishes to raise the visibility of an issue of great concern
regarding the City's future ability to attract businesses in manufacturing, distribution, research and
development, and high-tech. Land use decisions over the past several years have caused a change
of use to hundreds of acres of finished industrial land. These decisions accommodated other
important projects such as the Rancho del Rey Power Center, the Chula Vista Auto Park, MCA
Amphitheater, and the Whitewater Water Park.
We agree with the logic of these past rezonings and, in fact, positively endorsed each of these
projects. However, we do have a concern regarding the City's diminished industrial acreage. We
would sl)ggest Council direct staff and the Planning Commission to formulate a policy regarding the
replacement of industrial land so that the City is prepared to accommodate large industrial users
who may be attracted to our City as the regional economy continues to recover.
Attached you will find a matrix delineating the industrial areas, net acreage currently available, and
estimated acreage demand per the WKA study commissioned by the City in 1993.
Thank you for your consideration of this matter, and we will look forward to working with the Council
and staff to provide our continued input regarding this issue.
Sincerely,
ECONOMIC DEVELOPMENT COMMISSION
DR/ak
Attachment
,
cc: City Manager
Community Development Department
Planning Department
Planning Commission
$ f - (
M:\home\commdev\rafoli\edc2.!et
CITY OF CHULA VISTA
AVAILABLE INDUSTRIAL LAND AVAILABLE AND PLANNED
ECONOMIC DEVELOPMENT COMMISSION ESTIMATES
Vacant Industrial Acreage Anticipated Net
Changes in Improved
1993 1996 Acreage Acreage
Expected to
Remain
Improved Improved Unimproved Industrial
WESTERN AREA:
Central Area 18 18 0 18
Bayfront . 55 55 0 55'
Montgomery 13 13 0 13
EASTER"'" TERRITORIES:
Eastlake Business Center 33 33 80' 0 33
Rancho Del Rey 16 12 0 I 12
Otay Rio Industrial Park 123 32 (32)' 0
Ot:y Valley Area 129 102 (50)' 52
Otay Ranch Village 149 0 0'
Sunhow 46 0 0'
TOT ALS: 387 265 275 (82) 183
Note: Williams-Kuehelheck & Associates 1993. market analysis estimated the City's future industrial demand as follows:
Year 2000:
Year 2010:
Year 2015
9 I acres
241 acres
321 acres
lPort District rezoning in process. Anticipated to change zoning from aircraft manufacturing to industrial business park
without affecting available acreage
2 Assumes Phase II of business park remains 100% industria!.
3Vac:mt acre:lge adjacent to MCA Amphitheater and waterpark anticipated to be used for recreational purposes.
4lnc1udes Auotpark park phase II, trash transfer station, and other potential rezonings.
,p. . d
ropeitles are unImprove .
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EXHIBIT 2
TABLE OF CONTENTS
ISSUE PAPER
LACK OF AOEOUATE INDUSTRIAL ZONED LAND
IN CHULA VISTA
INTRODUCTION
I. THE IMPORTANCE OF INDUSTRY TO A COMMUNITY ...................... 1
A. "IMPORTED" OOLLARS ....................................... 1
B. HIGHER PAYING JOBS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1
C. "SPIN-OFF" BENEFITS ........................................ 2
II. ADOPTED CHULA VISTA PLANS RELATED TO INDUSTRIAL DEVELOPMENT. . . . . . .. 3
A. CHULA VISTA GENERAL PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3
B. ZONING ORDINANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4
C. GENERAL DEVELOPMENT AND SECTIONAL PLANNING AREA (SPA) PLANS ...... 5
D. REDEVELOPMENT PROJECT AREA PLANS ........................... 7
1. Bayfront . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7
2. Otay Valley Road ...................................... 8
3. Southwest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 9
III. ONGOING INDUSTRIAL DEVELOPMENT EFFORTS .......................... 9
A. CHULA VISTA ECONOMIC DEVELOPMENT PLAN ....................... 9
B. BUSINESS OUTREACH ACTIVITIES ............................... 10
C. HIGH TECH/BIOTECH ZONE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 10
D. WESTERN REGIONAL BIDPROCESSING CENTER (WRBC) ................. 11
E. BORDER ENVIRONMENTAL COMMERCE ALLIANCE (BECA) . . . . . . . . . . . . . . .. 11
F. REDEVELOPMENT ACTIVITIES .................................. 12
IV. INDUSTRIAL LAND SUPPLY IN CHULA VISTA ........................... 12
A. TOTAL SUPPLY AND PROJECTED NEED. . . . . . . . . . . . . . . . . . . . . . . . . . .. 12
B. LACK DF LARGE PARCELS ............... _ . . . . . . . . . . . . . . . . . . .. 14
C. LIMITED BUSINESS PARKS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 16
D. OTHER IMPEDIMENTS TO DEVELOPMENT .......................... 16
E. PROPOSALS WHICH COULD FURTHER ADVERSELY IMPACT INDUSTRIAL LAND
SUPPLY ................................................ 16
V. INDUSTRIAL DEVELOPMENT TRENDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 17
A. SAN DIEGO REGION ........................................ 17
B. SOUTH BAY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 18
VI. HOW CAN CHULA VISTA ADDRESS THE INDUSTRIAL LAND SHORTAGE? ........ 19
A. OTHER CITIES' APPROACHES .................................. 19
B. EXISTING POLICIES REGARDING CONVERSION OF INDUSTRIAL LAND ........ 20
C. STAFF RECOMMENDATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 21
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ISSUE PAPER
LACK OF ADEOUATE INDUSTRIAL ZONED LAND
IN CHULA VISTA
INTRODUCTION
During the past 6 years, the San Diego region has been in an economic recession. Industrial activity has been
slow, with little to no absorption of industrial space or land. Our economy is coming back. Industrial land is
moving again. In 1992 only five acres of industrial property sold in the County. In 1996, 800 acres sold and
in just the first seven months of 1997, 700 acres have been sold for development. Today, San Diego County
is faced with a decreasing supply of "deliverable" industrial acreage (able to be developed in the immediate
future) and an increasing industrial demand which is projected to further increase in the next few years.
Currently, there are approximately 1400 acres of industrial acres available for development in the County. If
development occurs at the same pace as in 1996 and 1997, this is only a two year supply. Additionally, there
is a shortage of sites that are 20 acres or larger. According to Grubb & Ellis, there are only three areas
left in the County with property available over 20 contiguous acres - Poway, Otay Mesa and EastLake
in Chula Vista. This is critical because San Diego County has the opportunity to capture the manufacturing
end of the high tech and biotech industry which have large acreage requirements. But if the region does not
provide adequate acreage for these new facilities, the companies will leave the region and possibly the State.
As previously noted by the City's Economic Development Commission, Chula Vista faces this same dilemma on
a local scale. In 1993, a market study was prepared by William Kuelbelbeck and Associates (WKA) which
concluded that, in order to achieve a recommended 50 year supply of industrial land, 200 additional acres were
needed in the City's industrial inventory. Since that time, approximately 175 acres of planned industrial land
have been converted to other uses. Today, proposals exist to rezone even more industrial land to residential
or other non-industrial uses, leaving an extremely limited developable supply. As supply has dwindled, demand
for industrial land in Chula Vista has re.emerged at a significant level.
Community Development staff has received several recent site inquiries from companies ranging from non-
manufacturing to biotech manufacturing. In almost all cases, we have been unable to offer them a site that
meets their needs. These requests have brought to the forefront the inadequacy of deliverable and desirable
industrially zoned land in Chula Vista. Adding to the problem are impediments to development facing most
existing industrially zoned parcels, such as lack of infrastructure and costly, lengthy entitlement requirements.
It is imperative at this juncture to evaluate the need for industrial development opportunities within the City,
Chula Vista's current industrial land and building stock, and existing land use policies which impact our industrial
inventory and our ability to respond to business needs. An understanding of these issues is critical to the City's
ability to capture immediate economic development opportunities, as well as to updating and implementing an
aggressive short and long term Economic Development Strategy and Economic Development Marketing Plan.
This paper is intended to provide Council with an overview of why industrial uses are important to a community,
how Chula Vista has planned for such uses, concerns regarding an industrial land supply inadequate to meet
current and future demands, and suggested short. and long. term approaches to address this industrial inventory
shortfall.
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I. THE IMPORTANCE OF INDUSTRY TO A COMMUNITY
A. "IMPORTED" OOLLARS
Knowing the structure of the local economy and its underlying dynamics is essential in order to
develop public policies which promote the economic vitality of a City. The local economic base is
composed of producers and consumers. Producers are the businesses which provide products or
services to individuals or other businesses. Consumers are the individuals or businesses that
purchase the product or service. Among the producers, there are a number of business sectors
ranging from manufacturing to retail trade. Producers are further distinguished by those which are
local serving (have customers within the community, such as service providers and community-
based retailers) vs. export (have customers outside of the area, such as manufacturers). Local
serving producers recirculate dollars within the region. Export serving producers, known as "primary
industry," generate products and services that can be exported outside the community and therefore
bring dollars into the region. Businesses such as manufacturers of exported products that
bring new wealth to the community are better economic engines than those that merely
recycle the same dollars.
B. HIGHER PAYING JOBS
Both commercial and industrial operations are essential for a healthy local economy. Each provide
benefits to their host city but in different ways. The primary benefit of commercial businesses is
sales tax revenue. The primary benefit of industrial businesses is the direct creation of high
paying jobs, which raise the area's standard of living. According to SANOAG's "REGIONAL
ECONOMIC PROSPERITY STRATEGY," and using 1991 dollars, the manufacturing sector pays an average
wage of $28,093 per employee, whereas the service sector pays an average wage of $16,406.
The average manufacturing wage in San Diego in 1994 was $35,068; and the average retail wage
was $14,929.
The significance of maintaining a strong industrial base can be illustrated by the San Diego regional
economy. The San Diego region has lost ground in its standard of living over the past decade. In
the 1970's, the San Diego region's per capita income was 15% higher than the California average
and 35% higher than the U.S. average. By the 1990's, San Diego's per capita income was less
than California's and was only slightly higher than the national average. (At the same time, San
Diego's cost of living is 20% higher than the national average.) In terms of average annual wages,
San Jose ranks highest of the 311 metropolitan areas in the U.S. with an average annual wage of
$42,409; San Diego County's average annual wage is $27,845; Chula Vista's is $28,371.
As a result, the 1994 SANDAG Economic Prosperity Strategy emphasizes the need to encourage
"high value added employment" as provided by manufacturers. Accordingly, the San Diego region
has adopted a strategy to target high technology industry dusters whose wages are significantly
ISSUE PAPER - ADEQUACY OF INDUSTRIAL ZONED lAND IN CHUlA VISTA
Page 1
e2. -.3
higher than the regional average. These industries represent an opportunity to create sustainable
economic prosperity in the region. The chart below illustrates the income levels of certain of these
targeted industries_
# EMPLOYED AVERAGE WAGE.
INDUSTRY IN REGION % HIGHER THAN
REGIONAL AVERAGE
Telecommunications 12,000 68%
Biotechnology 24,000 40%
Electronics Manufacturing 22,000 56%
Defense Manufacturing 21,000 41%
Software 10,000 69%
Chula Vista has, for the past few years, targeted the biotech industry and the environmental
technology industry, based upon our ability to offer advantages to these clusters and the benefits
these value-added, high paying employers can bring to our City.
C. "SPIN-OFF" BENEFITS
In addition to new quality jobs created directlv by industry, industrial businesses generally also have
greater "spin off" benefits, i.e. jobs and revenue generated indirectlv by the new business. For
example, both the new business and its employees will require additional goods and services, which
in turn will create the need for more workers and generate more tax revenues.
Multipliers are commonly used in determining the number of "spin-off" jobs generated by an
employer. Multiplying the number of jobs at the new facility by the appropriate multiplier provides
an estimate of the total impact on employment in the region. For example, an industrial company
hiring 100 new employees, with a multiplier of 2.1, is estimated to indirectly create an additional
210 jobs, for a total of 310. The California Trade and Commerce Agency multipliers below
illustrate the difference between industrial and commercial job creation.
INDUSTRIAL MULTIPLIER
Electronic equipment 2.10
Electronic components 1.87
Aerospace 1. 71
RETAil MULTIPLIER
Wholesale Trade 1.48
Retail Trade 1.41
Eating Places 1.33
SANDAG's emphasis on Value-Added Employment pertains not only to wage levels, but also to
employee-related taxes and growth management. SANDAG's study indicates that the service
ISSUE PAPER - AOEQUACY OF INDUSTRIAL ZONED LAND IN CHULA VISTA
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E2-1
sector pays 40% less in taxes per employee than does the manufacturing sector. This means
public revenues per capita are greater from manufacturing employers. In terms of growth
management, SANOAG indicates that for every $1 million increase in demand for "services,"
the region requires more than 2.1/2 times the number of employees than it does for
producing "goods." Thus, there is less population growth to manage (plus greater public revenues
and higher wages. for a higher standard of living).
II. ADOPTED CHULA VISTA PLANS RELATED TO INDUSTRIAL DEVELOPMENT
Several planning and policy documents have been adopted by the Chula Vista City Council which address
the need for industrial development, as well as related goals and strategies for encouraging industrial
recruitment and expansion. In order to put this analysis of industrial inventory in context, these existing
plans are summarized below.
A. CHULA VISTA GENERAL PLAN
Land Use Element
The General Plan's Land Use Element contains 10 goals. Goal #1 pertains to the "Economic Base
of the City," and states the need to "have a large and diversified economic base, while
maintaining or increasing the existing sources of employment." Among this Goal's objectives
are:
Objective 1.
''identify potential areas for location of new light manufacturing and high
technology businesses and facilitate their development. "
"Where land is currently occupied by marginal industrial uses, encourage
replacement by higher value-added users."
"Continue the orderly industrial redevelopment of the Otay Valley Road area."
"Provide employment opportunities in large scale planned communities such as
Eastlake, Rancho Del Rey, Sunbow and Otay Ranch. "
The General Plan's Land Use Element defines two industrial land use categories. The land use
categories are:
Objective 2.
Objective 4.
Objective 5.
Research and Limited Manufacturing: "This category includes research and development, light
manufacturing, warehousing, and flexible-use buildings,
which combine the above uses with office space."
General Industrial: This category includes all uses identified for Research and
limited Industrial plus light manufacturing operations,
large-scale warehousing, transportation centers, and public
utilities.
ISSUE PAPER - ADEQUACY OF INDUSTRIAL ZONED lAND IN CHUlA VISTA
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EZ-5
The General Plan land Use Diagram provides for 2,029 acres of Research and limited Manufacturing
and 375 acres for General Industrial (see map, Attachment 1).
Growth Manaoement Element
The General Plan's Growth Management Element identifies the following as one of 6 key concerns:
"Expanding and refining the Citys economic structure so as to provide for a healthy,
regionally competitive local economy and employment base." This key issue is expanded upon
as follows: "Development in the Eastern Territories, Bayfront and downtown revitalization all
provide Chula Vista a variety of opportunities to diversify and revitalize the City's mix of commercial
and industrial uses, supply local employment for a range of economic groups, and improve its
competitive position in the region." One of Chula Vista's more innovative efforts to integrate growth
management and economic vitality is the use of 'Economics' as one of the Threshold Standards
adapted in 1987. Among the Growth Management "Healthy Economic" policies adopted by Council
are:
Policy 2.b.
"Conduct a periodic economic assessment for the City as a whole to
include:
1) Profile of economic structure as relates to ... demographics and
employment base
2) Profile of surpluses and deficiencies in local economy...
4) Vacant land available for commercial/industrial/manufacturing development
6) Summary of commercial/industrial development costs and Chula Vista's
comparative (competitive) position in the region"
B. ZONING ORDINANCE
The City of Chula Vista Zoning Ordinance implements the two land Use Categories discussed above.
The Ordinance allows four industrial designations. These designations and their allowed uses are
listed below:
limited Industrial (Il)
Manufacturing, assembling and packaging products from
previously prepared materials; wholesale business; and
laboratories, among others.
General Industrial (I)
Any manufacturing, processing, assembling, research,
wholesale, or storage uses, except those otherwise
prohibited.
Research Industrial (I-R)
laboratories, and manufacturing and assembly of
electronic instruments and devices.
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Planned Community Industrial (PC-I).
Within the master planned commUnities of Eastlake,
Rancho Del Rey, Sunbow and Dtay Ranch, this designation
allows light manufacturing, warehousing, flexible use
buildings, public utilities, limited amounts of restaurants
and office-oriented commercial uses.
C. GENERAL DEVELOPMENT AND SECTIONAL PLANNING AREA (SPA) PLANS
General Development and Sectional Planning Area (SPA) plans for the master planned communities
of Eastlake, Rancho Del Rey, Sunbow and Otay Ranch address the need for industrial uses in order
to provide employment opportunities. These Plans which are intended to implement the City's
General Plan policies define the areas in which industry should locate. Past events and current
issues have and are impacting industrial development in these areas and are discussed below.
Eastlake I (200 acres)
The Eastlake I Sectional Planning Area (SPA) Plan was approved in 1992 as part of a larger
development area (3,073 acres). Eastlake I was designed to provide significant employment
opportunities to encourage residents to work within their community. The Eastlake Business Center
is a two-phase industrial park consisting of approximately 200 acres (see map, Attachment 2a).
Phase I (100 acres) is fully improved_ Approximately 70 acres in Phase I have been developed, with
44 acres remaining for sale. Most of these lots are 1-2 acres (see map, Attachment 2b). The
adjacent Phase II (100 acres) is ungraded and unimproved. Development within the Eastlake
Business Center has been virtually non-existent throughout the early 1990's. This is a result of the
national recession and defense cutbacks, reflecting the lack of industrial development throughout
the entire county and the state, and also reflects the postponement of SR 125. Since 1996, the
demand for industrial property countywide has dramatically increased. In Eastlake, in 1996, Retail
Systems International IRSI) purchased a 22,000 sq. ft. building which had been vacant for several
years. RSI is now considering expanding further and purchasing additional acreage. A new INS
office building is being constructed and there have been recent negotiations with other prospects.
However, because many companies (including high tech and biotech) require parcels over 10
acres, Phase I is unable to accommodate them (the largest parcel is 4 acres). Phase II
could accommodate these users but is not entitled or improved and, for all practical
purposes, has not been offered for sale to industrial users since the economy has shown
recovery.
The Eastlake Business Center (Phase I and II) has a High T ech/Biotech Zone overlay, approved by
Council in 1995. The purpose of this Zone designation was to help market this area to targeted
technology-based industries and to offer specialized incentives_ Staff is aware of at least 3 biotech
companies currently seeking 30.:':. acre sites, as well as other interested manufacturers.
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Rancho del Rev
In 1985, the Rancho del Rey SPA I plan was adopted and set aside 84 acres for the Rancho del
Rey Business Center in order to provide jobs for local residents. In 1992, during the peak of the
recession (County unemployment was at its highest since 1980), and with the Business Center
stalled, 55 acres were rezoned to commercial. The resulting "power center" anchored by Home
Depot, Price Club and K-Mart, created 1,220 new jobs and has generated approximately $1.2 million
in net new sales tax revenue annually. There are only 11 acres of industrial property
remaining. With the market pressures to develop these "in fill" parcels as commercial uses,
these acres may face elimination in the future.
Sunbow II (602 acres):
The General Development Plan for Sunbow " was adopted in 1989 and the Sectional Planning Area
(SPA) Plan was adopted in 1990. A 46 acre research/development and light industrial park site was
planned, estimated to generate 2,800 jobs. Negotiations are currently ongoing to convert
approximately 50%, or 23 acres, to a recreational use. This limited amount of contiguous
acreage (23) presents major obstacles to the development of a business park.
Otav Ranch 19,100 acres in Chula Vista):
Most of the industrial land uses in the otay Ranch General Development Plan are located on the
otay Mesa within the City of San Diego. Within Chula Vista, 232 acres are designated for light
industrial uses in Planning Area 18b and Village 3 located on both sides of Paseo Ranchero, north
of otay Valley Road (see map, Attachment 3). Business Park uses (primarily R&D type) are
Dermitted within the 236 acre Eastern Urban Center (EUC), adjacent to SR 125. This intense urban
area is envisioned to accommodate regional retail. office and some residential in mid to high-rise
structures. Villages 9 and 10 have been set aside for a university campus (698 acres). Research
and development uses are also Dermitted in Villages 9 and 10, along with support commercial and
residential, if tied to the Universitv. (While industrial uses are permitted in the EUC and in Villages
9 and 10, no acreage has been identified for these areas. Therefore, there is no guarantee
regarding future availability for industrial use except for within the 232 acres of Planning
Area lSb and Village 3. The primary obstacles to near-term industrial development in the otay
Ranch are lack of entitlements and infrastructure, as well as mixed ownership and uncertainty
regarding the owners' future plans. Most recent communication by staff with the
representatives of the owners of Areas lSb and Village 3 indicates no near term plans to
develop. As a result these properties are not currently deliverable.
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D. REDEVELOPMENT PROJECT AREA PLANS
1. Bavfront
The Bayfront Redevelopment Project Area (see map, Attachment 4) was adopted in 1974
to address blighting conditions including degradation of the coastal environment. depreciated
property values, soil and water contamination, and the lack of public improvements. The
project area includes a variety of land uses including industrial. office and commercial. The
Bayfront Redevelopment Plan expires in 1999. Currently, the Plan is being amended to
extend the life of the Plan to 2014 and to expand the boundary to include the adjacent
tidelands owned by the Port District.
The existing Bayfront Redevelopment Project Area, comprised of the Midbayfront, most of
the Rohr campus, and SDG&E, combined with the Project Area expansion, i.e. the Tidelands
properties, provides a tremendous economic development opportunity. It also poses major
challenges. Impediments to development in the Bayfront include ongoing multiple replanning
efforts, environmentally sensitive habitat, Coastal Commission and other entitlement
requirements, lack of infrastructure and access, possible contamination, incompatible uses
and visual blight. Access and circulation issues are also problematic, including the lack of
linkages between the northern and southern Bayfront properties.
In terms of the Midbayfront. the current lCP and Specific Plan require extensive
environmental mitigation, development of public improvements, and long-term mitigation
monitoring which may hinder the ability to create a feasible development proposal. Any
major deviation from the approved local Coastal Plan (lCP), General Plan and/or
Redevelopment Plan will require additional environmental study and appropriate amendments.
In regards to the Tidelands area, two separate planning processes are currently underway:
1) the Port District Master Plan Amendment, lCP Amendment and related EIR for 80 acres
(50% of Tidelands property) to expand allowed industrial and commercial uses; and 2) the
Redevelopment Agency's expansion of the Bayfront Redevelopment Project Area to include
all of the Tidelands, and the related EIR (for the area not covered by the Port's EIR).
These planning efforts are complex and potentially conflicting, and inject significant
uncertainty into the near-term development process. Development of the area south of H
Street to be vacated by Rohr is also complicated by possible contamination issues, the need
for demolition, an SOG&E easement which runs through the property, and the presence of
high tension wires_ Further, contributing to the uncertainty are questions pertaining to
Rohr's recent sale to B.F. Goodrich and how that will impact the Rohr facility's future in
Chula Vista, Rohr's closing of operations south of H Street, and/or the planned extension
of H Street to Marina Boulevard.
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Preliminary discussions among the various Bayfront stakeholders have identified the need
for a re.master planning of the entire Bayfront area. There are also preliminary
environmental planning efforts beginning for the South San Diego Bay Refuge, an area
shown in Attachment 5. All these issues hinder the ability tD deliver a specific
BayfrDnt site tD an industrial user today with any assurance Df its feasibility,
timing Dr CDSt. They alsD put intD questiDn hDW much land will be available fDr
industrial uses in the future.
An enormous opportunity exists with the SDG&E site (approximately 150 acres). With
the prDspect Df a sale by ENoV A, the City needs tD evaluate what future land uses
shDuld be allDwed, and whether Dr nDt high tech (Dr Dther) industry shDuld be
included.
2. Otav Vallev Road
In 1983, the Otay Valley Road Redevelopment Project Area was formed to eliminate
blighting conditions which were impacting industrial development in the area (see map,
Attachment 6). When the Project Area was adopted in 1983, this area represented the
largest resource of underdeveloped urbanized property in the City zoned fDr industrial
development (322 acres). Although industrial development has occurred and progress has
been made to reduce blighting conditions in the project area, impediments to industrial
development remain, including hazardous waste, changing and incompatible uses, traffic and
access issues, and environmentally sensitive habitat.
Several projects in the Otay Valley Road region (both in the Project Area and adjacent to
it) have resulted in the loss of over 120 acres of industrial land, these include the Auto
Park, the White Water Canyon theme park and the MCA Amphitheater. These projects
have created a new cDmmercial/entertainment synergy in the area that may
influence future develDpment Df the remaining 120 industrial acres in the Otay
Valley/Otay RiD area as well as the future develDpment Df the industrial area in
Otay Ranch, Village III and 18B (232 acres). Phase I of the Auto Park (within the
Project Area) converted 20 acres and Phase II is expected to convert between 20.30
additional industrial acres. The Otay Rio Business Park (adjacent to the Project Area)
encompasses 130 acres and was designed as a master.planned industrial park with IDts
ranging between .7 to 4 acres. Approximately 100 acres have been converted fDr the
White Water Canyon theme park and the future MCA Amphitheater. (Recreational uses
were allowed with Conditional Use Permits.) There are approximately 30 industrial
acres remaining which are owned by the Water Park, and which will likely be
converted to cDmmercial zDning to accommodate water park expansiDn or a
cDmplimentary recreational use.
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3. Southwest
In 1990, the Southwest Redevelopment Project Area was created in order to eliminate
blight which negatively impacts industrial and commercial development and to implement the
Montgomery Specific Plan (see map, Attachment 7). Blighting conditions in the project area
include inadequate public improvements; non.marketable properties due to poor access,
inadequate lot sizes and shape; deteriorated commercial. industrial and residential buildings;
incompatible mixed land use; and visual blight. An economic, land use, and zoning study
is being prepared which is intended to examine and provide recommendations focused on
revitalization of industrial and commercial properties along Main Street and Third Avenue.
Opportunities to interface with the future Otay Valley Regional Park may provide increased
interest in areas south of Main Street. Planned economic development efforts include
creating loan and/or grant programs geared towards small business owners, Main Street
widening, and redevelopment of Agency.owned parcels on Broadway.
III. ONGOING INDUSTRIAL DEVELOPMENT EFFORTS
The Community Development Department offers businesses site selection, financial, permit processing, job
training and other market.related assistance. The Department has been promoting industrial development,
in accordance with the City's Economic Development Plan and Redevelopment Plans, for many years with
initiatives such as the High T echlBiotech Zone and the Border Environmental Commerce Alliance (BECAJ, in
addition to citywide image enhancement efforts, business attraction and assistance programs, and
redevelopment activities. These efforts have been predicated on assumptions related to the availability of
aoorooriate. develoDable industrially zoned land. The current lack of industrial inventory suggests the
need to reevaluate our short.term industrial recruitment strategies and related marketing efforts,
address short.term land use conversion proposals, andfor augment and upgrade our industrial land
and building supply over the long term.
A. CHULA VISTA ECONOMIC DEVELOPMENT PLAN
The City's adopted Economic Development Plan specifically addresses the importance of industry
to Chula Vista. The Plan's Mission Statement is: "To enhance the quality of life in Chula Vista
through the promotion of a strong local economy offering employment and business opportunities,
and a healthy, diversified tax base vital to supporting city services." Among the Plan's six goals
are to:
1 . Identify the existing economic base and target new business and industry
2 . Develop land use and infrastructure strategies to support economic
development goals
3 . Develop a comprehensive marketing and public relations program to attract
job and revenue generating business and industry
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4 . Develop a proactive business assistance program to encourage business
retention, growth and expansion
B. BUSINESS DUTREACH ACTIVITIES
The City's adopted Economic Development Marketing Plan reflects the Council-adopted Economic
Development Plan's Goals and Dbjectives. Industrial business outreach efforts to date have been
based upon the following assumptions:
1) Chula Vista wants to recruit desirable industry and to help local businesses
to expand and prosper
2) Chula Vista has the ability to "deliver" these businesses land suitable for
development (physically and economically)
The City's Marketing Plan includes general image enhancement and business attraction activities.
Examples include "image building" advertising, press releases, promotional video, attendance at trade
shows, etc. These types of activities contribute to both the City's visibility/name recognition, and
to a more positive profile, and benefit its commercial, residential and industrial development efforts
on a long term basis. Additionally, the City, for the past several years, has undertaken targeted
marketing activities to reach our targeted industry clusters . environmental technology businesses
and biotech manufacturers. Specifically, the City has promoted BECA services and the High
Tech/Biotech Zone sites and incentives to these targeted audiences.
Staff suggests that the City's business attraction efforts be reevaluated in light of the
current shortage of deliverable land. In particular, marketing of the High Tech/Biotech Zone
needs reassessment in light of the shortage of deliverable industrial parcels larger than four
acres.
C. HIGH TECH/BIDTECH ZDNE
Chula Vista's High Tech/Bio Tech Zone is an incentive program that was developed by a Task Force
of staff, biotech industry experts and the EastLake Development Company, and chaired by the
Mayor. The Zone was formally created by Council (by ordinance) in 1995 and is comprised of the
Eastlake Business Park, Phases 1 & 2 (2DD acres). The Zone was designed to encourage high
technology industries, including biomedical and biotechnical manufacturing companies, to locate in
Chula Vista. The program offers advantages such as expedited development review, uninterrupted
water supply, negotiable financial assistance, and the planned Western Regional Bioprocessing Center
(WRBC), a shared-use, biotech contract manufacturing and training facility.
The High Tech/Biotech Zone was proactively planned to meet the needs of San Diego Biotech R&D
companies transitioning into manufacturing. This was projected to occur in 3.5 years from the Zone
concept's inception. The Task Force's projections were "on target" . demand for biotech
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manufacturing space is now emerging. Within the past year, staff has been aware of 3 San
Diego biotech R&D companies seeking sites for their first manufacturing plant. Each requires
approximately 30 acres. Because of the multi-year, public/private planning effort to proactively
position ourselves to compete successfully for these highly desirable firms, we are now experiencing
requests by biotech and other technology firms to be shown sites in the EastLake Business Center.
Unfortunately, Phase I lacks adequately sized parcels for most of these users and Phase
II, for all intents and purposes, has not been available since the demand has emerged.
D_ WESTERN REGIONAL BIOPROCESSING CENTER (WRBC)
The WRBC has been planned as the corner stone of the City of Chula Vista's High Tech/Biotech
Zone at the EastLake Business Center. WRBC is being organized as a non-profit scientific research
organization with two primary functions: to provide specialized biopharmaceutical manufacturing
education, training and research programs, and to promote regional economic development. As
planned, WRBC will offer biopharmaceutical research, development and production services to the
pharmaceutical industry. San Diego State University and the 22-campus California State University
Program in Biotechnology Education and Research (CSUPERB) will administer the academic and
training programs at the Center. The WRBC will provide essential infrastructure to support the
industry's transition from R&D to commercial manufacturing, including contract manufacturing
services for pilot scale product.
The City's active support of the WRBC (including seed capital funds and extensive staff time over
the past few years to assist with planning, marketing, corporate sponsorship and grant solicitation,
site selection, etc_) has been predicated upon a strategy which envisions the WRBC as a catalyst
to create spin-off demand for land by biotech manufacturers within the EastLake Business Center
(High Tech/Biotech Zone). With new indications that the property owner will be seeking to
rezone all or a portion of Phase II to non-industrial uses, the value of this strategy is
negatively impacted.
E. BORDER ENVIRONMENTAL COMMERCE ALLIANCE (BECA)
BECA was formed to create and retain regional jobs in the environmental technology industry and
to encourage the development of an Environmental Industry Cluster in Chula Vista. BECA has been
designed to further this strategy by: 1) assisting the transfer of new cost-saving and innovative
environmental technologies to existing industry; 2) supporting the commercialization and export of
new environmental technologies and products; and 3) fostering the "incubation" of start.up
environmental companies. As a unique entrepreneurial effort, BECA has faced numerous challenges,
but is moving forward and showing much promise. In March 1997, BECA received recognition by
the U.S. Economic Development Administration for BECA's successful and innovative public/private
partnerships in support of defense conversion efforts in the western United States. Our first
successful "graduate" is Metallic Power, the developer of pollution-free, metal/air fuel cells. With
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City assistance. Metallic Power moved from the BECA incubator into its own facility in south Chula
Vista. Currently, BECA has 24 tenants in their incubator with an additional 5 on the waiting list.
The availability of industrial land (and buildings) for BECA incubator graduates and business
affiliates (clientsfjoint venture partners, etc.) is critical to the City's goal to create an
environmental industry cluster here in our City. Unless we can offer readily available
inventory at competitive rates. our "incubated" businesses will locate their manufacturing
plants and offices elsewhere.
F. REDEVElOPMENT ACTIVITIES
The Redevelopment Agency proactively assists in revitalizing blighted and underutilized land within
five Project Areas in the community. Three project areas include industrial uses: Bayfront,
Southwest and Dtay Valley Road. Each of these areas are facing challenges to industrial
development. as examined previously in Section II C.
IV. INDUSTRIAL LAND SUPPLY IN CHULA VISTA
A. TOTAL SUPPLY AND PROJECTED NEED
Staff has evaluated the City's available industrial land supply and estimates a currentinventory of
approximately 180 to 266 acres of improved properties and 280 acres of unimproved properties.
These numbers, however, are misleading in that they include ill! industrially zoned parcels regardless
of impediments to development. As previously noted, staff is experiencing difficulty in being
responsive to business prospect needs due to a shortage of properties which are both readily
developable and meet the companies' site requirements. Currently, the city is experiencing a
shortage of improved, entitled sites. a shortage of large parcels and of upscale business park
settings, as well as challenges in delivering sites that are competitively priced. The vast majority
of industrial parcels are less than five acres in size which are inadequate for many users. For the
most part, the only readily deliverable sites are limited to the 20+ acres in EastLake
Business Center Phase I (these parcels are a maximum 4+ acres in size ) and a few
parcels in the Bayfront, Southwest and Otay Valley Road areas.
In 1993, the City contracted with Williams-Kuebelbeck & Associates (WKA) to prepare a citywide
market assessment and to develop strategies for business targeting. The study identified a 39 year
industrial land supply in Chula Vista. The consultant recommended that the City consider increasing
its industrial-zoned land to a "50 year" supply, an additional 190 to 200 acres. Since 1993, the
City's supply of industrial land has significantly diminished due to rezonings to accommodate other
non-industrial uses (due to market demands, changing economic conditions and the need to generate
sales tax dollars). Based upon the WKA analysis. these reductions in supply result in the current
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need for an approximate 474 acres of additional industrial land. Past losses, as well as
anticipated future losses are summarized below:
INDUSTRIAL AREA LOSS OF INDUSTRIAL LAND SINCE 1993
Rancho del Rey 73 acres
Otay Rio 100 acres
Eastlake Business Center 71 acres (proposed)
Sunbow 23 acres (proposed)
Otay Valley Road 20 acres (Phase I of Auto Park)
30 acres (proposed Phase II of Auto Park)
TOTAL 317 acres
The table on the following page provides a more detailed citywide overview of industrial acreage
as it currently exists and as projected. As noted, the chart shows approximately 180-266 acres
of improved properties and 280 acres of unimproved properties. However, the chart includes all
industrially zoned parcels, including unimproved sites, infill sites, and sites with major impediments
to development (e.g. irregular size or configuration, toxic contamination, lack of infrastructure, high
assessments or land cost, etc.).
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TOTAL VACANT INDUSTRIAL LAND - IMPROVED AND UNIMPROVED
EXISTING EXISTING
IMPROVED UNIMPROVED ANTICIPATED CHANGES
Western Area: Improved Unimproved
Central 18 111 0 0
8ayfront 45 121 1451 to 0
+21 131
Montgomery 92 141 0 0
Eastern Area: Improved Unimproved
EastLake 40 80 1181151 1551151
Rancho Del Rey 11161 13)
Otay Rio 32 132)111
Otay Valley 90 50 150 to 150)191
130}18I
Otay Ranch 118b 232"01 0
& Village 3)
Sunbow 46 123)1111
TOTALS 328 408 (148) . (62) (128)
PROJECTED
NET
IMPROVED
ACREAGE
PROJECTED
NET
UNIMPROVED
ACREAGE
o
o
o
25
o
o
o
232
23
280
111 Majority of parcels are located near Highway 54
121 Figure does not include Rohr campus south of H Street lapproximately 65 acres) or SDG&E plant lapproximately 145
acres}
131 Tidelands are being rezoned, by the Port District, to a broader classification in which industrial development is not
assured.
141 Includes West Fairfield and Southwest Redevelopment Area
151 9 acres of Phase I are being optioned or are in escrow; and WRBC is proposing to acquire approximately 9 acres.
EastLake has expressed interest in rezoning 55 acres of Phase II to residential.
161 Originally B4 acres, 70 were rezoned to commercial for Rancho del Rey Power Center
111 32 acres are held by the Waterpark and will most likely be used for recreation or entertainment
181 20-30 acres are planned for Phase II of the Autopark; an estimated 20 acres may be rezoned for support commercial
191 All parcels have significant environmental constraints, including coastal sage and wetlands, which make development
impractical
1101 Zoned Planned Community Industrial. allowed uses include light manufacturing, warehousing, flexible use buildings and
public utilities and will be further defined in the SPA
1111 Half of the acreage in Sunbow may be rezoned for park use
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B. LACK OF LARGE PARCELS
The shortage of available industrial land is exacerbated by the fact that the vast majority of the
available parcels are under 10 acres, which precludes many types of industrial users such as biotech
and high tech manufacturers. The chart below shows the number of industrially zoned parcels in
the City by size categories. Only 14 industrially zoned parcels in the City are over 10 acres.
Additionally, only 24 parcels are over 5 acres (see Attachment O), and of these only 15 are readily
developable (see table on following page).
# OF VACANT INDUSTRIAL PARCELS BY ACREAGE
Western Area:
< 1 ACRE < 5 ACRES < 10 ACRES
9 4
3 6
41 153 5
10-20 20-30'
ACRES ACRES 30+ACRES'
TOTAL
> 10 ACRES
Central
Baytront'
Montgomery
Eastern Area:
Eastlake
Phase I & II
Rancho Del Rey
Otay Valley
Otay Ranch
(18b & Village
31'
Sunbow'. ,
13
12.4
4" 1 1
1 111
2
8 3 3
14
12
3
17
TOTALS
65
63
10
1 All parcels are unimproved
, May be developed commercial or residential
J Majority ot parcels are under 2 acres
4 Business Park Phase II, approximately 80 acres
5 All parcels have substantial environmental barriers, including coastal sage and wetland area
6 200 + acres owned by SNMB, Inc.
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PARCELS 5 ACRES OR LARGER
NUMBER OF TOTAL
AREA (see Map, Attachment 8) PARCELS ACREAGE
EastLake Phase I 1 5.5
Rancho Del Rey 1 5
Bayfront 3 27
Central 1 5
Otay Valley Road 3 36
Southwest 6 45
Totals 15 114.5
C. LIMITED BUSINESS PARKS
The EastLake Business Center is the only master. planned, upscale business park currently in Chula
Vista. Phase I is fully improved. Challenges are the current lack of freeway access (which will be
remedied with SR 125) awl the need for planning, entitling and building infrastructure for Phase II.
D. OTHER IMPEDIMENTS TO DEVELOPMENT
In addition to the lack of large parcels, much of the available industrial property has other
constraints to immediate development, including:
scattered, small, and irregular parcels
environmental contamination
grading issues (cost and timing)
incompatibility with adjacent uses
limited access
lack of entitlements; extensive
environmental analysis required
expensive assessments
need for demolition
lack of infrastructure
environmental sensitivity
Impediments as they relate to each area in the City are detailed in Section II.
While efforts are being made to address these issues. the current reality is that there is
a very limited supply of deliverable. marketable large industrial parcels.
E. PROPOSALS WHICH COULD FURTHER ADVERSELY IMPACT INDUSTRIAL LAND SUPPLY
As discussed in various sections above, staff is aware of certain ongoing or anticipated proposals
which could further reduce the availability of industrial property and further limit the City's ability
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to respond to ongoing, as well as future business demands. Pending applications cannot be
discussed here. Other proposals in the discussion stages are summarized here:
Eastlake Business Center Phase II (100 ac.)
There has been discussion by Eastlake over the past year regarding the possibility of requesting
a rezone of all or a portion of Phase II of the Eastlake Business Park to non-residential uses. This
would eliminate up to 50% of the High T ech/Biotech Zone (Phase I and II) and the availability of
~ industrial parcels larger than 4 + acres. (Most recent discussions suggest that Eastlake is
considering requesting a Phase II rezone of 70 + acres, leaving approximately 30 acres for industrial
uses.) Eastlake has discontinued its joint marketing efforts with the City pertaining to the High
T ech/Biotech Zone and has referred City business prospects seeking sites larger than can be
accommodated in Phase I to other properties.
Sunbow (40 ad
Negotiations are ongoing to rezone half of the industrial acreage for development of a park_
V. INDUSTRIAL DEVElOPMENT TRENDS
A. SAN DIEGO REGION
Historically, the San Diego region's industrial base was comprised of manufacturers with military
and aviation contracts. With the advent of defense spending cutbacks, and corporate down-sizing,
we have seen long time San Diego companies such as General Dynamics disappear, and companies
such as Rohr decrease from 7000 employees to 2000. These losses have created a shift in focus
to non-defense related, technology-based companies. Industries such as computer science,
biotechnology and telecommunications, mere infants 10 years ago, are now becoming the new
industrial giants. Companies such as SAIC and Oualcomm provide thousands of jobs and are still
growing.
The San Diego region has an opportunity to transform itself into a globally competitive, international
economy. The San Diego/Tijuana region has become the television production capital of the world.
San Diego's export sales volume has grown 361 % over the past several years - a rate of growth
that exceeds both Los Angeles and San Francisco. San Diego's Gross National Product increased
to a record $79 billion in 1996 and is projected to grow to $85 billion in 1997. This rate of
growth is expected to exceed both the State and the nation.
During the recession, due to lack of demand industrial property throughout the County was being
rezoned for commercial use. In the past two years demand for industrial land has gone from
approximately 5 acres per year to 700 acres per year. The following graph shows the dramatic
increase in the industrial and R&D market:
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San Diego County Industrial/R&D Market
Historical Construction Activity
1990 - 1996
2,000,000
1,800,000
1,600,000
1,400,000
- 1,200,000
'"
'"
...
'" 1,000,000
...
'"
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1992
1993
1994
1995
1996
[ II Under Construction
o Planned
According to Grubb & Ellis, as the return of speculative and build-to-suit projects increases,
companies will find a shortage of land available for new development, especially high-tech and bio-
tech companies. Very little land is available in the County that meets their needs per Grubb and
Ellis. The only 20 + contiguous acres available for construction are in the Parkway Business Center
in Poway, Eastlake in Chula Vista (in Phase II) and Otay Mesa in San Oiego and the County.
Although, as earlier indicated, the status of Eastlake Phase II is not certain.
B. SOUTH BAY
Grubb & Ellis projects that the Southbay submarket will continue to post positive building and land
absorption rates and decreasing vacancy rates due to the growth of maquiladora manufacturing
operations in Tijuana. Mexico's currency-related export boom and NAFTA-related influx of Asian
manufacturers are generating more business for South Bay suppliers and service firms.
ISSUE PAPER. ADEQUACY OF INDUSTRIAL ZONED LAND IN CHULA VISTA
Page 18
f3l. -2.D
Otav Mesa
The 20.600 acre Otay Mesa area is located south of Otay Ranch adjacent to the International
Border. Approximately 6.200 acres are zoned industrial. The western portion of the Mesa is
within the City of San Diego and the eastern portion is within the County of San Diego..
Historically. the area was utilized for farming and grazing. A navy communications facility. County
Detention facility, Donovan State Prison and Brown Field are located on the Mesa. Currently a
master planning and redevelopment effort is underway to develop San Diego Air Commerce Center,
an air cargo facility, at Brown Field. The re-vamped airport will include support services.
commercial office. and airport-related industrial.
The Otay Mesa area is planned to provide large space for light industrial users which produce
relatively low traffic volume (100 AOT s or less)_ Some service uses will be allowed as accessory
uses, but very little residential is planned. Most of the industrially zoned property on the Mesa
is unimproved and not available for immediate development. There are approximately 300
acres which are improved and available and range in cost from $4.00 to $6.00 per square
foot (excluding assessments. averaging an additional $2.00 psf).
Chula Vista
Demand for industrial land and buildings is significantly increasing. According to Grubb & Ellis,
National City/Chula Vista had the highest level of industrial building absorption during the
fourth quarter of 1996 within the Metropolitan San Diego area. Over 376,000 square feet
of building space were absorbed during that quarter for a total of 519,845 sq. ft. in 1996. The
overall industrial building vacancy rate for National CitylChula Vista fell from 17% in 1995
to 7% 1996.
After multi-year City efforts to develop and implement strategic. targeted business attraction
programs (BECA. High T ech/Biotech Zone. etc.), as well as general business outreach efforts, staff
is now experiencing difficulty in identifying deliverable sites to meet current demand. The 1993
WKA Market Study concluded that the Otay Rio Industrial Park. Eastlake Business Center. and Otay
Ranch represented the City's best opportunities for attracting new businesses. With the loss of
Otay Rio, potential loss of all or a portion Eastlake Phase II. and the long term nature of Otay
Ranch, there are currently very limited near-term industrial site options.
VI. HOW CAN CHUlA VISTA ADDRESS THE INDUSTRIAL lAND SHORTAGE?
A. OTHER CITIES' APPROACHES
As the supply of industrial land continues to diminish, land prices and rental rates will continue to
rise_ The negative impacts created by insufficient industrial land and/or increasing land prices and
rental rates include: businesses relocating outside the region; fewer new businesses being attracted;
ISSUE PAPER - ADEQUACY OF INDUSTRIAL ZONED lAND IN CHUlA VISTA
Page 19
E-z. -21
lower tax revenues; rising costs to businesses (putting them at a competitive disadvantage); and
potential decreases in employee wages.
These impacts will cumulatively cause an erosion in the economic and physical quality of life of the
San Diego Region. Community leaders need to take action to mitigate these impacts which are
directly linked to the lack of induslrialland supply. Several cities in the region and in California are
creating and implementing strategies to keep and attract industry. Some examples include:
. The City of San Diego, as part of their Zoning Code Update, is considering measures which
would increase the industrial area; preserve the remaining industrial stock; and modify
commercial zones to allow for limited light.industrial uses.
. The City of San Diego is also attracting high tech users (researchers, service providers,
telecommunications and software) to downtown. New tenants downtown include Advanced
BioResearch Associates, Nationwide Communications, and Wright Strategies, a software
firm.
· The City Council of Oceanside recently adopted a 24 point action plan that will make the
City more "business friendly". As part of the plan, the City zoning ordinance will be made
more flexible and is proposed to allow limited light.industrial uses in commercial areas.
. The City of San Jose is taking aggressive measures to attract "clean" high tech users,
typically bound for the evermore scarce suburban industrial parks, to downtown San Jose.
Adobe Systems, a leading manufacturer of computer-graphic software, opened a 400,000
square foot high-rise office building in downtown. The company is currently building a
280,000 square foot facility next door. The Adobe project brought 1600 new jobs to San
Jose.
B. EXISTING POLICIES REGARDING CONVERSION OF INDUSTRIAL lAND
The Chula Vista Economic Development Commission (EDC) expressed concern regarding the industrial
land supply via letters to Council dated September 14, 1992 and October 15, 1996. In 1992. the
EDC communicated their concern regarding the apparent lack of an adequate supply of vacant land
zoned for industrial development. and the rezoning of industrial properties to commercial.
Council directed staff in 1993 to prepare a draft policy addressing the following concerns;
replacement of rezoned industrial property, provision of industrial acreage in each planned
community, and council approval before any negotiations of rezoning industrial acreage occurs. A
draft industrial zoning policy was brought to council in 1994 relating to land use proposals which
involve a General Plan Amendment from Industrial to another land use; rezoning from industrial to
another zone, or a Conditional Use Permit which would allow a non-industrial use in an industrial
zone (see Attachment 9). The proposed policy entailed the following process: 1) early notification
of Council regarding the land use proposals; 2} staff review of the potential for significant
fiscal or economic impacts to the City; 3) if significant impacts are identified, preparation
ISSUE PAPER. ADEQUACY OF INDUSTRIAL ZONED LAND IN CHULA VISTA
Page 20
E2..-Z~
by the applicant and/or staff of an economic impact analysis for submission to the Planning
Commission and City Council; and 4) input from the Economic Development Commission, if
requested by the applicant or staff. A formal policy was not enacted; however, in most cases,
projects involving industrial land conversions were brought to Council for formal action as a
requirement of the entitlement, or via an Information Memorandum.
In 1996, the EDC again stated their belief that the diminishing supply of industrial land will impact
the City's future ability to attract businesses in manufacturing, distribution, research and
development, and high-tech. The EOC suggested that Council direct staff and the Planning
Commission to formulate a policy addressing the replacement of industrial land so that the City is
prepared to accommodate large industrial users.
C. STAFF RECOMMENDATIONS
Staff suggests that Council evaluate and address the industrial land supply from both a short. and
long-term perspective. Short- and long-term issues and recommendations are outlined below:
Short-Term Recommendations:
That Council:
1) Affirm the City's desire to preserve the High Tech/Biotech Zone by maintaining an industrial
land use designation in both Phases I and II of the Eastlake Business Center;
2) Direct staff to study the feasibility of creating industrial overlay zones and/or amending the
existing zoning ordinance to allow for limited light industrial uses within certain commercial
areas throughout the City; and
3) Direct staff to analyze the impact of proposed industrial land use conversions utilizing the
4-step process described in Section B above.
long-Term Recommendations:
1) That Council direct staff to prepare a report which addresses:
a) the need to preserve existing industrial stock via an adopted policy;
b) the potential of redesignating areas of the City to industrial land use.
2) That Council provide staff with their vision as relates to the future role of industrial
development within the Bayfront, Otay Valley Road and Southwest areas in order to help
staff tailor ongoing and future economic development promotional activities.
ISSUE PAPER - ADEQUACY OF INDUSTRIAL ZONED LAND IN CHULA VISTA
Page 21
E2.-2.~
Sources:
Publications:
Southern California 1997 Real Estate Forecast, Grubb & Ellis Property Solutions Worldwide, 1997 Grubb &
Ellis Company
Industrial Market Analysis San Diego County Fourth Quarter 1996, Grubb & Ellis Property Solutions
Worldwide
State Route 125 South Tollway, SANDAG, Winter 1997
An Economic Development Strategy for the San Diego Region, San Diego Regional Economic Development
Corporation, 1997
Economic Development Handbook, league of California Cities and California Association for local Economic
Development, 1997
Regional Economic Prosperity Strategy, San Diego Association of Governments, October 1995
Charting a Course for the 21 st Century A Slrategic Economic Plan for San Diego's "New Economy",
December 1996
Incentives A Guide to an Effective and Equitable Policy, National Council for Economic Development, April
1996.
San Diego's Regional Progress, San Diego Gas & Electric and the San Diego Regional Economic Development
Corporation, Summer 1997
Building Economically Competitive Communities A White Paper on local Economic Development, California
Association for Economic Development, March 1995
linkages: San Diego's Partnerships for a Strong Economy, Employment Development Department, May 1995
The Race to Recruit Strategies for Successful Business Attraction, California Association for local Economic
Development, 1996
City of Chula Vista Documents
Council Agenda Statement, Item 20B, 12/5189, Public Hearing: PCM-89-7 and PCl-87-E; Consideration of
a General Development Plan and Planned Community Pre-Zone for Sunbow II
ISSUE PAPER - ADEQUACY OF INDUSTRIAL ZONED LAND IN CHULA VISTA
Page 22
t3"z-Z+
EastLake II (EastLake I Expansion) General Development Plan, Approved by Resolution No. 18159, December
12, 1995
EastLake I Sectional Planning Area (SPA) Plan, Approved by Resolution 16702, June 30,1992
Planning Commission Statement, November 18, 1992, Public Hearing: Resolutions GPA-93-01, FSEIR-92-02,
PCS-92-05, PCS-93-01 - Consideration of General Plan Amendment, Final Supplemental Environmental Impact
Report, Rancho del Rey SPA I Plan Business Center Amendment
Five Year Implementation Plan for the Bayfront Redevelopment Project. Adopted December 12, 1994
Five Year Implementation Plan for the Otay Valley Road Redevelopment Project. Adopted December 12. 1994
Five Year Implementation Plan for the Southwest Redevelopment Project, Adopted December 12, 1994
Otay Ranch General Development Plan. October 28, 1993
City of Chula Vista General Plan, Adopted July 11, 1989
City of Chula Vista Economic Development Plan. Adopted August 28, 1991
City of Chula Vista Socioeconomic & Market Assessment, July 23, 1993
Business Targeting and Development Strategies. September 7, 1993
ISSUE PAPER. ADEGUACY OF INDUSTRIAL ZONED LAND IN CHULA VISTA
Page 23
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CONTACT:
City of Chula Vista
PROPERTY DATA SHEET
SITE PLAN:
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ATTACHMENT 26
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NEIGHBORHOOD
SHOPPING CENTER
--
Jim Moxham
Eastlake Development Co.
900 lane Avenue
Suite 100
Chula Vista, CA 91914
(6191421-0127
16191421.1830 FAX
Community Development
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
(619) 691-5047
(6191476-5310 FAX
ADDITIONAL COMMENTS:
.
150.acre,$50 million industrial office park with
central employee-oriented recreational park ,
Adjacent to future State Route-125
Build-to-suit facilities available, as well as lot sales
.
.
LOCA nON:
Telegraph Canyon Road, east of lane Avenue
Building Size:
Area:
Zoning:
Redevelopment Area:
Not applicable
Lot 1
lot 3
lot 4
lot 6
Lot 18
lot 19
lot 21
Lot 22
Lot 23
lot 24
lot 25
lot 34
Lot 35
approx. 15 acres
2.47 acres
2.24 acres
2.67 acres
4.19 acres
4.81 acres
2.14 acres
2.00 acres
2.18 acres
2.34 acres
2.23 acres
1.00 acre
1.00 acre
PC
Planned Community
Not applicable
All information furnished regarding property is from sources deemed reITable although subject to errors. amissians. changes of prices. rental or other conditions. prior sare or
lease. or withdrawal without notice.
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BA YFRONT REDEVELOPMENT AREA
_ REDEVElOPMENT PROJECT AREA
EXPANSION AREA
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BOUNDARY ALTERNA- '/ES, PROPOSED SOUTH SA DIEGO BAY UNIT
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e~-A8-;l
ATTACHMENT 9
COUNCIL AGENDA STATEMENT
Item
Meeting Date 617/94
ITEM TITLE:
SUBl\1I'ITED BY:
Report on Industrial Zoning Policy
Director of Planning ;t!Pt
Community Development Director
REVIEWED BY: City Manager
(4/5ths Vote: Yes_No.lO
Council Referral No.2728
The City Council has previously directed staff to inform them regarding land use proposals
which would result in non-industrial development of property which is zoned for industrial uses.
In addition, Council has requested staff to prepare a draft Council policy to address concerns
regarding the possible economic and fiscal impacts of such land use changes. The following
report addresses these issues, and contains a draft Council policy for preliminary review.
RECOMMEI'.'DA TION: It is recommended that Council accept the report, and direct staff to
refer the draft Council policy to the Economic Development Commission and Planning
Commission for review and comment, prior to final action by the Council.
BOARDS/COMMISSIONS RECOMMENDATION: None.
DISCUSSION:
As indicated above, the City Council has previously directed staff to prepare a draft Council
policy regarding industrially zoned land (see attached City Council minutes of 212/93). The
three major concerns to be addressed in this policy included:
1) Industrially zoned property within Chula Vista is of high interest to the City Council,
with sufficient coverage so zoned to insure the City's ability to retain, recruit, and/or
expand manufacturing entities; therefore, industrial acreage considered for zone change.
would normally require similar zoning offset elsewhere in the City before approval.
2) Each planned community shall have industrial acreage to ensure that City services are
funded within the community, plus 15% to offset recession.
3) No negotiation for the rezoning of industrial property should occur without authorization
first being obtained from the Council. .
In response to Council direction, staff has kept the City Council informed on various land use
proposals which would involve non-industrial use of land which is zoned for industrial
E.;J.-AQ-/
Page 2, Item _
Meeting Date 6/7/94
development. In addition, staff has worked with the Economic Development Commission and
its economic consultant, Williams Kuebelbeck, to analyze the availability of industrially zoned
land in the City. The fInal report by Williams - Kuebelbeck, entitled "City of Chula Vista
Targeting and Development Strategies,. was completed and distributed to the Economic
Development Commission and City Council in January.
The Williams - Kuebelbeck study indicates that the City has approximately a 39 year supply of
industrial land, and that this represents an adequate supply for the foreseeable future. However,
it also suggested that the City consider a long-term policy to maintain a 50-year supply of
industrial land, in the event that economic conditions should change.
Notwithstanding the fact that the City has a relatively large inventory of undeveloped industrially
zoned property, it is important that any proposals to allow non-industrial use of such property
be carefully evaluated to ensure that they do not result in negative economic or fIscal
consequences to the City. Therefore, staff is reco=ending consideration of a draft Council
policy which would establish an evaluation process for any such land use proposals (see
Attachment 2). Briefly this evaluation process would include the following:
1) continued early notifIcation of the City Council of any land use proposals involving:
a) a General Plan Amendment from Industrial to another land use category;
b) Re-zoning from Industrial to another zoning category; or
c) a Conditional Use Permit which would allow a non-industrial use in an industrial
zone;
2) a preliminary review by City staff to determine whether the proposal could result in a
significant fiscal or economic impact to the City;
3) in cases where a significant economic or fISCal impact could result, an "economic and
ftcal impact analysis. would be prepared by City staff, in consultation with the project
applicant, utilizing readily available information and analytical models;
4) this ~n.lvsis would be reviewed by the Economic Development Commission. if requested
~y the applicant or City staff, and would then be forwarded to the Planning COmmISSIOn
and City Council for consideration in conjunction with public hearings on the proposal.
.
It is staffs opinion that this approach would provide the decision makers with relevant
information regarding the possible economic and fIScal consequences of these types of proposals,
without causing any delay in the processing of such requests, and with a minim.! impact on the
project applicant.
Ed-.. -Aq-.:l
...)..
Page 3, Item _
Meeting Date 6/7/94
FISCAL IMPACT: There would be additional staff costs associated with preparation of
economic and fIscal impact reports. If directed to proceed with this draft policy, staff will
prepare estimates of these costs for consideration at the time of final adoption of a policy by the
City Council.
(F:\hom:\pI.:mning\indz.on.3.11)
e~-Aq- 3
ATTACHMENT 2
DRAFT INDUSTRIAL ZONING POUCY
A. Staff shall provide the City Council with early notification, through. a Council
Information Memo, of any proposals which are fIled with the City involving the
following:
1. General Plan Amendment from Industrial to another land use category
2. Re-zoning from Industrial to another zoning category
3. a Conditional Use Permit which would allow a non-industrial use in an
industrial zone.
B. In conjunction with prelimin~ry City staff review of any such proposals, a.
prelimin~ry evaluation of the economic and fiscal impacts of the proposal shall
be made by Co=unity Development Department, Finance Department, and
Planning Department staff, and shall be presented to the City Manager or his
designee. Based on this preliminary evaluation, in cases where it is determined
by the City Manager or his designee that such a proposal may result in a
significant change in the economic impact or fiscal impact to the City, as
compared to the current land use designation, an economic and fiscal impact
analysis shall be prepared.
C. The economic and fIScal impact analysis shall be prepared by City staff, in
consultation with the project applicant, using readily available information and
analytical models. The analysis shall include the following:
1. evaluation of the job creation potential of the proposed use, (including
both quantity and quality of jobs), as compared to the currently allowed
uses;
2. evaluation of the fiscal impacts of the proposed use (revenues and costs
to the City) as compared to currently allowed uses;
3. evaluation of other economic impact factors, such as impacts of the
proposed change on the viability of adjoining and nearby industrial
properties (developed or undeveloped);
4. in the case of a proposed land use change in a planned community, the
evaluations described above shall address not only the specific property in
question, but also the overall planned community.
D. At the request of the applicant, or the City Manager or his designee, the
economic and fiscal impact analysis shall be forwarded to the Economic
Development Commission for review and comment. .
E. The report, and any comments submitted by the Economic Development
Commission, shall be forwarded to the Planning Commission and City Council
for consideration in conjunction with public hearings on the proposal.
f~-Aq-4
,
F. In cases where the economic impact analysis indicates that a proposal would have
an adverse impact on job creation opportunities or other negative impacts on
economic development, staff shall provide the Planning Commission and City
Council with alternatives which could address these negative impacts. Such
alternatives could include:
1. redesignation or rezoning of offsetting acreage to industrial .in another
location;
2. changes to the proposed project which would reduce its negative impacts.
~.I-A q.S
COUNCIL AGENDA STATEMENT
Item 3
Meeting Date 10/09/91
ITEM TITLE:
REPORT: AFFOROABlE HOUSING WORKSHOP
Community Development Di~r\~ ~ <; .
City Manager ~ ~~ (4/5ths Vote: Yes_ No..xJ
SUBMITTED BY:
REVIEWED BY:
BACKGROUND:
At the Council meeting of August 5, 1997, Council Members expressed interest in scheduling an affordable
housing workshop to discuss the purpose, concepts, issues and resources related to affordable housing.
In order to provide Council Members with a better understanding of affordable housing staff will be making
a presentation at the workshop which will address the following subtopics.
· AFFORDABLE HOUSING DEFINED - Affordable housing in the City of Chula Vista is defined by the
Housing Element of the City's General Plan as for sale or for rent dwelling units which are
affordable to households whose income levels range 50-80% of the Regional Median Income (low
income) and to 80%.120% of the Regional Median Income (moderate income). The current median
income for the area is $46,600. As an example, a family of four with an annual income of up to
$37,300 (80% of median) would qualify as a low income household.
· low INCOME HOUSEHOLDS. EXAMPLE
VERY lOW lOW
50% Median 80% Median
$23,300 $37,300
($11.00 per hr.) ($17.00 per hr.)
Secretary librarian III
Machinist Assistant Planner
Auto Mechanic Biologist II
Truck Driver Fire Fighter II
Tree Trimmer Accountant II
lifeguard I Building Inspector I
Cashier Senior Buyer
Junior Engineer
3//
Page 2, Item _
Meeting Date 10/09/97
· WHY WE DO AFFORDABLE HOUSING
. Needs - San Diego County is one of the most expensive housing markets in the Country.
Majority of households are unable to afford housing costs and the gap between income and
housing costs is great.
. legal requirements - The City is required by State law to plan for affordable housing for
all income segments of the community. It must assess the need for affordable housing, set
strategies for the delivering of affordable housing, and measure performances in
accomplishing its objectives.
· AFFORDABLE HOUSING TOOLS/RESOURCES
. HOME
. Redevelopment Housing Set Aside
. Fair Housing Council of San Diego
. Tax Credits
. Density Bonus
. Rehabilitation loans/grants
. Gap financing
. Tax Exempt Financing
· AFFORDABLE HOUSING PROVIDERS/PLAYERS
. Federal
. State
. City
. Private Developer
. Non.Profit Housing Developers
. Private lenders
· AFFORDABLE HOUSING EFFORTS IN CHULA VISTA
. Inclusionary Housing Program
. Housing Rehabilitation (CHIP)
. Mobile Home Program
. First.time Homebuyer Program
3~~
Page 3, Item _
Meeting Date 10109/97
. AFFORDABLE HOUSING STRATEGIES/CONCEPTS
. Conserve and improve the existing housing stock
. Balance jobs with housing opportunities
. Assist in the production of new housing
. Ensure a range of housing opportunities
. Provide and promote housing services
. OVERVIEW OF CURRENT PROJECTS AND AVAILABLE FUNDS
. Cordova
. T rolley Terrace
. Eastlake Greens
RECOMMENDATION: Following the presentation, it is recommended that Council provide feedback and
direction to stafton the current affordable housing effort of the City.
l.h/JPAI H:IHOMBCOMMOEV\STAFF.REPI10.9.97Iwork,hop (October 2, 1997 IB:13.mll
3~3