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HomeMy WebLinkAboutAgenda Packet 1998/01/22 CANCELLATION NOTICE NOTICE IS HEREBY GIVEN that the SPECIAL JOINT MEETINGIWORKSESSION OF THE CITY OF CHULA VISTA CITY COUNCIL AND THE REDEVELOPMENT AGENCY, scheduled for Thursday, January 22, 1998, has been cancelled. . that' am Dated: January 21, 1998 ennlW of penUry, the '" declare under P ,: f Cn'.!'" Vists '" t , pO8~e<' mployed by the C,wc . ,~ ".",;" ",en'. nnd the e mun'W Deve:D"m:~' .;' " c !';~"rô at the ~~¡; A¡;,~~daINotice ~;~';~n/;" u:; Hall on Public ¡';l;;u:,a, ~ ~ ~IIJ --- DATE: I SIGNED MI declare tinder penslty of perju'Y that ~ em employed by the City of Chuls VIsta In t e Office of U,e City CIerI, and that I posted . d ¡Notice on the Bulletin Boord at Thursday, January 22, 1998th1B Agen' a '. Building ~ouncil Conference Room 5:30 p.m. the PUbh¡ ~irvJ9i SIGNED . Administration Building DATED, , P, Special Joint Meeting/Worksession of the CitY of Chula Vista Citv Council and the Redevelopment Agencv CALL TO ORDER 1. ROLL CALL: Council/Agency Members Moot_, Padilla_, Rindone -' Salas -' and Mayor/Chair Horton - BUSINESS 2. INTERVIEWS FOR CIVIL SERVICE COMMISSION VACANCY: Frank Chidester, Ray Livesay, Jose Luis Gomez 3. REPORT OTAY RIVER VALLEY WORKSHOP--The Otay River Valley, east of 1- 805, includes the Otay Valley Road Redevelopment Project Area, the Otay Landfill, Whitewater Canyon Water Park, the Universal Amphitheater, and the recently annexed Otay Ranch properties. The workshop is intended to address major development issues, including the character of future land uses, recreational opportunities, and open space preservation, Staff recommends that the Council/ Agency consider the issues and provide direction to staff on policy and planning matters, (Community Development Director) ORAL COMMUNICATIONS This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the Redevelopment Agency from taking action on any issues not included on the posted agenda.) If you wish to address the Agency on such a subject, please complete the "Request to Speak Under Oral Communications Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record purposes andfollow up action. OTHER BUSINESS 4, CITY MANAGERIDIRECTOR'S REPORT(s) 5, MAYOR/CHAIR'S REPORTlS) 6, COUNCIL/AGENCY MEMBER COMMENTS ADJOURNMENT The meeting will adjourn to a special joint meeting of the City Council/Sweetwater Union High School District Board of Trustees, on Thursday, February 5, 1998 at 7,00 p.m. at the Sweetwater Union High School District Office, 1130 Fifth Avenue, Rooms A & B, Chula Vista, thence to the regular City Council meeting on February 10, 1998 at 6:00 p,m, in the City Council Chambers, The Redevelopment Agency will adjourn to the regular Redevelopment Agency meeting on February 17, 1998 at 6:00 p.m" immediately following the City Council meeting, in the City Council Chambers. JOINT REDEVELOPMENT AGENCYICOUNCIL AGENDA STATEMENT Item :3 Meeting Date 01122/98 ITEM TITLE: Otay River Valley Workshop SUBMITTED BY: Community Oevelopment Director C ~ ' Planning Oirector REVIEWED BY: Executive Directo~ (4/liths Vote: Yes- No"!"l The City Council/Redevelopment Agency have scheduled a workshop to discuss development and image issues in the Otay River Valley, east of 1.805. This area includes the Otay Valley Road Redevelopment Project Area, the Otay landfill, Otay Valley Regional Park, Whitewater Canyon Water Park and the Universal Amphitheater. It also includes recently annexed Otay Ranch properties including Villages 3 and 4. The properties abutting Otay Valley Road, east of 1.805 were originally planned and zoned for industrial development. However, recent developments and interest in the area have demonstrated its attractiveness for public and private recreational projects as well as commercial development. In addition, residential projects are currently under construction northeast and south of the Otay River Valley which add to the changing character of the area. The workshop is intended to address major development issues currently impacting development in the Otay Valley including the character of future land uses, recreational opportunities, and open space preservation. RECOMMENDATION: That the City Council and Redevelopment Agency hold the Workshop, consider major issues and provide direction to staff on policy and planning matters. BOARDSICOMMISSIONS RECOMMENDATION: The Otay Valley Road Redevelopment Project Area Committee will be represented at the workshop. Property owners within and outside of the project area have also been notified. The Otay Valley Regional Park Citizen Advisory Committee will discuss workshop issues at their meeting scheduled for January 16, 1998. BACKGROUND: Early land uses in the Otay River Valley were predominantly agricultural, with some early industrial activities including the Omar Rendering Plant (including a legal Class I hazardous waste site), Pacific Bell service yard, Otay landfill (also including a Class I site) and, further east in the Valley, the Nelson Sloan Rock Quarry. Otay Valley Road formed the southeasterly boundary of the City. The south side of the road and the river were unincorporated. 3// Page 2, Item - Meeting Date 01122/98 By the late 1970's, several new developments had occurred. J.T. Racing and a multi. tenant industrial building were developed on the north side of Otay Valley Road. Point Robinhood and Brandywine Townhomes were developed off Brandywine Avenue, and the Otay Industrial Park was subdivided including the development of Nirvana Avenue and Energy Way. The latter was a consortium of auto recyclers, metal and steel fabricators, some of whom were relocated from the Chula Vista Bayfront area to make way for redevelopment activities there. The Omar Rendering plant ceased operations and the owners applied to the County for closure of their licensed Class I toxic waste facility. The County also began closure procedures for their Class I site located within the Otay landfill. In 1982, Donald Heye relocated his National City metal fabrication plant to Otay Valley Road with assistance from the City including the improvement of water service and issuance of Industrial Development Bonds to finance the project. It was apparent to staff at that time that the Otay Valley, with over 200 acres of reasonably priced vacant land in the City and County zoned for industrial development, had tremendous potential for industrial development. However, there were several major physical impediments precluding development including the need to widen and improve Otay Valley Road, provide better utilities and services, channelize and permanently bridge the Otay River. In order to assist in providing these improvements, the Redevelopment Project Area was formed in December 1983 and, shortly thereafter, the County territory south of Otay Valley Road to the center of the river was annexed into the City. Early redevelopment efforts were very successful with major industrial projects developed along Brandywine Avenue, Nirvana Avenue and Maxwell Road including the SDG&E sub.regional headquarters. In all, over 600,000 square feet of new industrial space were developed and vacancy rates were practically nonexistent until the early 1990's. In 1989, a City Committee comprised of staff, City Councilpersons, Doug Fuller and Dave Ordway representing the City's two remaining new auto dealers, selected vacant land on the south side of Otay Valley Road as the site for the proposed Chula Vista Auto Park. South Bay Chevrolet first opened their doors for business at the new location in October 1993, with Fuller Ford and Honda opening one month later. The goal of the auto park was to attract five to nine additional dealers to the adjacent vacant properties on the south side of Otay Valley Road. In the same time frame, major conservation and regional park planning efforts began to impact develop plans in the Valley. A business recession which impacted southern California from the early 1990's until recently began to slow development and impact vacancy rates. During this period, Gold Coast Engineering expanded along Otay Valley Road and the Agency approved the Sexton Trash-to.Energy plant on Maxwell Road, which has yet to be developed. 3~.2 Page 3, Item - Meeting Date 01122/98 Ironically, one of the properties impacted by the slowdown in development activity was the Otay Rio Business Parkl1l, comprising over 100 subdivided acres of vacant industrial land just across the Otay River which had been annexed to the City several years earlier. The inability of this property to attract industrial developers eventually provided development opportunities for the recently completed Whitewater Canyon Water Park and soon to be completed Universal Amphitheater. These projects, along with the regional park planning efforts, planned communities to the south and east, and the vast amounts of vacant land adjoining the Otay River to the east gave rise to the concept of Otay River Valley as a major, regional recreational resource. Pursuant to the urging of former Mayor Greg Cox in the late 1980's, City planners began to plan for a major regional park facility in the Otay River Valley. In 1990, the Cities of Chula Vista, San Diego and County of San Diego entered into a joint powers agreement for the planning and development of a regional park in the river valley. A concept plan has recently been completed and will be presented to the governing agencies shortly. Over the past seven years, approximately 150 acres of land in the valley has been acquired with State grant funding and an additional 150 acres is currently being funded through a State Coastal Conservancy Grant. The City of Chula Vista also has budgeted $1 million in its CIP to purchase land for a community park at one of the "activity nodes" of the regional park in the area immediately west of the 1.805 crossing of Otay River. The areas lying to the east of Heritage Road, including a large portion of the 26,000 acre Otay Ranch holdings, were master planned in the early 1990's and incorporated into Chula Vista's General Plan in October 1993. In March 1997, the City annexed approximately 9,300 acres of the Otay Ranch property including sites designated as villages four and five in the vicinity of the Otay River Valley. As part of this annexation, the Otay landfill property within the City of Chula Vista was de. annexed at the request of the County and the remaining landfill properties within the County were excluded from the newly annexed territory. Recently, representatives of the estate of Patrick approached City staff on the potential for rezoning 31 acres in the vicinity of the Amphitheater Park from open space to commercial use in order to capitalize on the proximity of the Amphitheater and Water Park, as well as potential development of Village III to the north and Otay Mesa to the south of this property. Today, several small industrial projects are planned on parcels abutting Otay Valley Road. There are still approximately 90 acres of vacant land zoned for industrial development within the project area including property designated, but not yet zoned for, expansion of the auto park. This area, not long ago considered remote, is now rapidly urbanizing and changing in character. A number of issues have arisen concerning future planning and development in the valley. 111 This property previously was part of the City of San Diego and was de.annexed from that jurisdiction and annexed to Chula Vista, At the same time, the City of Chula Vista did not oppose Port financial support of the initial construction of the San Diego Convention Center, a high priority proiect of the City of San Diego. ;I~J Page 4, Item - Meeting Date 01122/98 DISCUSSION: City Council Priorities The City Council has indicated that further development in the Otay River Valley is one of its highest priorities for the near future. Specifically, the Council has identified the following actions for this area: 8 Encourage and facilitate quality commercial, entertainment, recreational and industrial development. 8 Capitalize and expand on the opportunities created by the Auto Park, Universal Amphitheater and Whitewater Canyon projects toward the goal of improving the image and character of the area. These priorities identify land use and image issues which contrast historical growth patterns in the area. They are indicative of recent changes in development as well as future opportunities, and require further discussion and amplification to provide clear direction to staff concerning development policies and preferences. land Use 1. Industrial land. The Redevelopment Project Area provides one of Chula Vista's largest remaining inventories of improved vacant industrial land. Village III provides another 200 + acres of unimproved vacant industrial land. Current planning efforts to expand Brown Field as a major cargo terminal may increase the marketability of industrial land, although most of this impact will probably be on the thousands of industrial acreage closest to the airport on Otay Mesa. Specific concerns include: 8 Priority for maintaining inventory of large developable industrial properties . Impact of expansion of Brown Field 8 Future of auto recycling and open storage off Energy Way 8 Future of development sites at 1-805 interchange and Darling Delaware property (Omar Rendering site). 2. Commercial Development - Expansion of the Chula Vista Auto Park is most likely to continue on vacant land to the east of the current site. Opportunity to expand westerly to 1-805 in a unified manner is currently precluded by the Pacific Bell facility which likely would need to be removed to allow commercial development access to a traffic signal at Oleander and Otay Valley Road. Commercial development, as opposed to industrial development has not, to date, been considered as an option on the north side of Otay Valley Road. There may be opportunities for commercial J --;f Page 5, Item - Meeting Date 01122/98 development south of Otay Valley Road from the 1.805 interchange to the bridge, on the Gun Club site across from the amphitheater/water park complex and possibly on part of Village III. either to support industrial development on that site, or if there is ever any other major commercial/recreational proposal similar to the amphitheater and water park. Specific concerns include: 8 In addition to the auto park, how much commercial development should be planned and where, especially in the newly annexed areas (Gun Club, Village III, etc.), 8 Impact of development at Palm and 1-805 in the City of San Diego, 8 Potential of rezoning Gun Club property for commercial reuse, 8 Impact of Brown Field expansion on potential commercial development in the River Valley, 8 Impact of conversion to commercial development on industrial land values, 3. Recreational Development. While major regional recreation complexes are developing in the Valley, such as the recent completion of Whitewater Canyon Water Park, construction of the amphitheater along with efforts of the joint powers Otay Valley Regional Park planning effort have underscored the opportunity for recreational opportunities in the Valley, there will be issues related to local recreational opportunities. Major residential developments to the north and east in the City of Chula Vista, and to the south in San Diego (currently underway) indicated that the need for recreational facilities in this area will increase substantially. Although the river valley itself provides substantial land, much of this area will be set aside for conservation with public access for recreational purposes restricted. As development occurs in the valley, opportunities will become available to set aside land for both public and private recreational purposes. location and access to such facilities needs to be identified early in the planning process to insure compatibility. A related area is the continuance and future of the Otay landfill and its potential as a possible recreational resource. Currently, the landfill is planned, upon closure, to be part of the regional park, connected to the rest of the park by pedestrian linkages. An issue in the future will be what minimal level of recreational development will be allowed on the landfill. Image Issues Otay Valley Road currently runs east from 1.805 for several miles before it turns south to cross the river at Heritage Road. An unpaved road to access the Nelson Sloan rock quarry extends east from Otay Valley Road. As development of the eastern territories continues, Otay Valley Road will be a major entrance to Otay Ranch, connecting 1-805 to SR.125. This will substantially change the current function and character of the road and impact adjacent development opportunities. Paseo Ranchero (which runs immediately east of the amphitheater) will ultimately become one of the major north/south links between Otay Mesa and -- ;?~~ Page 6. Item - Meeting Date 01122/98 eastern Chula Vista. Market potential for commercial developments, particularly on parcels closest to 1.805 will certainly improve. Recent commercial development at Palm Avenue, east of 1.805 now includes a Kaiser Health Center, Walmart, Vons and 24 screen theater. At least two of these developers explored Otay Valley Road sites as well, suggesting that the latter's "time" will come shortly. Commercial development would be compatible with expansion of the auto park, but would also substantially change the character and image of the area. Furthermore, while the river valley offers a respite from development and provides both passive and active recreational opportunities, access and cost to develop recreation opportunities will be issues as the area develops. With all of these possibilities, specific questions include: 8 What is the preferred "image" for the corridor as the area develops? 8 What impact on "image" is occurring as a regional commercial/recreational complex is being constructed? 8 Is a name change for Otay Valley Road called for, and if so, should it reflect the commercial. recreational or historic character of the area? 8 How to reconcile the need for highway identification, particularly for commercial enterprises, with the City's current billboard and sign policies as well as State and Federal regulations. 8 Can commercial development also assist in providing supplemental funding for regional recreational facilities? FISCAL IMPACT: Although specific financial impacts of future development in the Otay Valley are not known at this time, it is clear that directions taken in the near term will have profound impacts upon future City revenues. Commercial development under the current State taxing policies can provide substantial revenues from both property and sales tax revenues. Industrial development provides better economic development in terms of improving the local economy and providing a better employment base. Major recreational facilities may, depending upon how they are structured, provide self-funding revenues, but require substantial space, impact traffic movement and may require public subsidies. IFKI H,\HOM~COMMOEV\STAFF.RE~OI.1S.98IWORKSHOP,OVR IJ,"",'Y IS, 1998 IS,O6pm) 3~~ ~ '" ~ - z u ~~ ~ ~II ~~h i ~~I 6~Ë~ f ( :J:~O j u~ ~ ~ ? 0 = u