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HomeMy WebLinkAboutRDA Packet 1999/11/09 ~~f? ~~-~ ~=--=-~ CllY OF TUISDAY, NOVIMBIR 9, 1999 CHUlA VISTA 6.00 P.M. (I_IDIAIILY FOLLOWINO THI CITY COUNCIL MiniNG) COUNCIL CHAMBIRS PUBLIC SIRVlCU BUILDING JOINT MEETING OF THE REDEVELOPMENT AGENCY/CITY COUNCIL OF THE CITY OF CHULA VISTA CALL TO ORDER 1. ROLL CALL Agency/Council Members Davis, Moot, Padilla, Salas, and Chair/Mayor Horton CONSENT ITEMS (Item 2) (Will be voted on immediately following the Council Consent Calendar during the City Council meeting) The staff recommendations regarding the following item(s) listed under the Consent Calendar will be enacted by the Agency by one motion without discussion unless an Agency member, a member of the public or City staff requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak Form" available in the lobby and submit it to the Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Action Items. Items pulled by the public will be the first items of business. 2. RESOLUTION EXTENDING THI OWNIR PARTICIPATION AGREEMENT WITH LAWRENCE M. AND STEPHEN P. CUSHMAN, DATED SIPTEMBIR 1, 1992, 'OR A PIRIOD O' TWO YEARS ('INAL EXTENSION)-On 09/01/92, the Agency entered into an Owner Participation Agreement for the development of approximately 10 acres located at 517 Shinohara Lane. The Agency has approved several extensions of the OPA due to development issues the owners have had with location, access, grading and design features. The owners have graded the property and have requested an additional two year extension in order to apply for building permits and start construction. [Director of Community Development) Staff Recommendation: Agency adopt the resolution. 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 and follow up action. . .'. The following items have been advertised and/or posted as public hearings as required by law. If you wish to speak to any item, please fill out the "Request to Speak Form" available in the lobby and submit it to the Redevelopment Agency or the City Clerk prior to the meeting. 3. PUBLIC HEARING. CONSIDERATION OF A DEVELOPMENT AGREEMENT BETWEEN THI CITY' OF CHULA VISTA ("CITY'''), REDEVILOPMINT AGENCY OF THE CITY' OF CHULA VISTA ("AGENCY"), AND ROHR INC., OPERATING AS BFGOODRICH AEROSPACE AIROSTRUCTURES GROUP, RELATED TO PROPERTY' BOUNDED BY BAY BOULEVARD TO THE EAST, THI REALIGNED MARINA PARKWAY TO THE WEST, F STREIT/LAGOON DRIVE TO THE NORTH, AND THE PROPOSED EXTENSION OF H STREET TO THI SOUTH AGENDA .2. NOVEMBER 9,1999 a) ORDINANCE APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE CITY, REDEVELOPMENT AGENCY AND ROHR, INC., OPERATING AS BFGOODRICH AEROSPACE AEROSTRUCTURES GROUP, RELATED TO PROPERTY BOUNDED BY BAY BOULEVARD TO THE EAST, THE R!ALIGNED MARINA PARKWAY TO THE WEST, F STREET/LAGOON DRIVE TO THE NORTH, AND THE PROPOSED EXTENSION OF H STREET TO THE SOUTH (FIRST READING).. The proposed Development Agreement will assure BFG that they may proceed with development in accordance with existing rules, regulations and official policies of the City and Agency. In exchange, BFG has agreed to cooperate with adjacent Bayfront development proposals and to certain development restrictions on its own property. [Director of Community Development] rCeNTINUl!b ..0. TNI! ..nINO OF Ona... I. 1...1 Staff Recommendation: Council place the ordinance on first reading. b) RESOLUTION APPROVING AN AMENDMENT TO THE RELOCATION AGREEMENT BETWEEN THE CITY/AGENCY, B.GOODRICH AEROSPACE AEROSTRUCTURES GROUP, AND THE SAN DIEGO UNI.IED PORT DISTRICT, AND AUTHORIZING THE MAYOR/CHAIRMAN TO EXECUTE SAME-The City of Chula Vista, Redevelopment Agency, San Diego Unified Port District, and BFGoodrich approved the terms and conditions of a Relocation Agreement under which certain land transfers will occur to facilitate the relocation and consolidation of BFG operations north of the planned "H" Street extension in the Baytront Redevelopment Project Area. At the direction of the Port Commission, a Phase II analysis has been conducted with respect to the South Campus. In light of the extent of contamination found, the Port has required that certain provisions of the Relocation Agreement be amended. [Director of Community DevelopmenUCity Attorneyj Staff Recommendation: Agency/Council adopt the resolution. 4. PUBLIC H!ARING. CONSIDERATION O' A REQUEST TO ESTABLISH A VOCATIONAL POSTSECONDARY SCHOOL AT 310 THIRD AVENUE WITHIN THE TOWN CENTRE I REDEVELOPMENT PROJECT AREA RESOLUTION APPROVAL THE SPECIAL USE PERMIT TO ALLOW THE ESTABLISHMENT OF A VOCATIONAL POSTSECONDARY SCHOOL AT 310 THIRD AVENUE WITHIN THE TOWN CENTRE I REDEVELOPMENT PROJECT AREA-The proposed school qualifies for a Class 1 categorical exemption as the leasing of an existing facility per Section 15301 of the Guidelines for Implementation of the California Environmental Quality Act. The requested land use permit requires consideration by the Agency in accordance with the Town Centre I Redevelopment Plan. At its meeting on October 13,1999, the Town Centre Project Area Committee voted to recommend that the Agency approve the application for a Special Use Permit. [Director of Community Development] Staff Recommendation: Agency adopt the resolution. 5. PUBLIC HEARING. TO CONSIDER THE ADOPTION O' .IVE YEAR IMPLEMENTATION PLANS (2000-2004) FOR THE .OLLOWING REDEVELOPMENT PROJECT AREAS LOCATED WITHIN THE CITY OF CHULA VISTA. TOWN CENTRE I; TOWN CENTRE II; BAYFRONT; SOUTHWEST; AND OTAY VALLEY ROAD RESOLUTION ADOPTING FIVE-YEAR (2000-2004) IMPLEMENTATION PLANS FOR THE TOWN CENTRE I, TOWN CENTRE II, BAYFRONT, SOUTHWEST AND OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREAS-The Implementation Plans will provide an overview of projected activities and identify anticipated programs and expenditures for the upcoming five year period. The plans also explain how the goals and objectives, programs and expenditures of each Implementation Plan will eliminate blight within the project areas. Additionally, the plans address requirements for low and moderate income housing. [Director of Community Development] 4/5TW. Vau _.aU.RID Staff Recommendation: Agency adopt the resolution. AGENDA -3- NOVEMBER 9,1999 ITEMS PULLED FROM CONSENT CALENDER OTHER BUSINESS 6. DIRECTOR'S REPORT(S) 7. CHAIR(S) 8. AGENCY MEMBER COMMENTS ADJOURNMENT The meeting will adjourn to a closed session and thence to a Regularly Scheduled Redevelopment Agency Meeting on November 16,1999 at 6:00 p.m., immediately following the City Council meeting, in the City Council Chambers. CLOSED SESSION Unless Agency Counsel, the Executive Director, or the Redevelopment Agency states otherwise at this time, the Agency will discuss and deliberate on the following item(s) of business which are permiUed by law to be the subject of a closed session discussion, and which the Agency is advised should be discussed in closed session to best protect the interests of the City. The Agency is required by law to return to open session, issue any reports of final action taken in closed session, and the votes taken. However, due to the typical length of time taken up by closed sessions, the videotaping will be terminated at this point in order to save costs so thoJ the Agency's return from closed session, reports of final action taken, and adjournment will not be videotaped. Nevertheless, the report of final action taken will be recorded in the minutes which will be available in the Office of the Secretary to the Redevelopment Agency and the City Clerk's Office. 9. CONFERENCE WITH REAL PROPERTY' NEGOTIATOR ..Pursuant to Government Code Section 54956.8 Property: Negotiating Parties: Agency-owned parcels at the northwest corner of Third Avenue and H Street Redevelopment Agency (Chris Salomone) and Chrismatt Corporation, a California Corporation, dba Pieri Company (James V. Pieri) Price and terms for disposition/acquisition Under Negotiations: REDEVELOPMENT AGENCY AGENDA STATEMENT ITEM No. ~ MEETING DATE 1 1/09/99 ITEM TITLE: RESOLUTION EXTENDING THE OWNER PARTICIPATION AGREEMENT WITH LAWRENCE M. AND STEPHEN P. CUSHMAN, DATED SEPTEMBER 1', 1992, FOR A PERIOD OF TWO YEARS (FINAL EXTENSION) SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR UJ +n es REVIEWED BY: EXECUTIVE DIRECTOR ~~"(l/ (4/5"'8 VOTE: YES_ NO.1l.) The Agency entered into an Owner Participation Agreement (OPA) with Mrs. Helen Cushman on October 17, 1991 for the development of an approximately 10 acre property located at 517 Shinohara Lane. This property was later transferred to Lawrence M. and Stephen P. Cushman, and the OPA was extended by the Agency until October 17, 1993. Additional extensions were granted by the Agency on March 1, 1994; November 7,1995; and on October 7, 1 997. The current OPA expired on October 17, 1999 and the owners have requested a further two-year extension of the Agreement. That the Agency adopt the resolution approving a final two year extension of the Owner Participation Agreement. "_l~Mi_._n~~,"~i@ini.iiii""'" The Otay Valley Road Project Area Committee (PAC) was disbanded this year. There is therefore no PAC recommendation on this item. The Cushman site comprises 9.73 acres at the westerly end of Shinohara Lane (Project Map attached, Exhibit 2). This site slopes to the south and is bounded on the south and east by industrial projects; on the west by single-family residences fronting on Oleander Avenue; and on the north by a multi-family condominium project. Two industrial warehouse buildings comprising 110,000 square feet have been planned for development on the site. This project was originally proposed as a single industrial building with loading bays facing west. City staff worked closely with the developer's architect to redesign the project in order to minimize noise and visual impacts upon neighboring residential properties. In approving the project, the Agency required that two noise studies be undertaken: the first to occur when the building is 80 percent occupied, and the second to occur six months later. If necessary, the owner will be required to perform reasonable mitigation measures to protect neighboring residential properties. The grading of the site has been completed. The Cushmans have requested an extension of the OPA for two additional years in order to apply for building permits and complete the project. The need for this additional extension is based on the difficulties they have experienced with locating lease tenants for the project, including aspects of the site's location, access, grading and unique design features. 02-1 PAGE 2, ITEM ~ MEETING DATE 1 1/09/99 In consideration of these factors, staff recommends that the Agency authorize the requested extension until October 17, 2001. Staff also recommends that, based on the number of extensions granted thus far and the generally favorable economic conditions now being experienced, this extension be the final extension granted. If development cannot occur during the next two years, a new Owner Participation Agreement will be required to be adopted. As a condition of approval of the extension of time, staff recommends that the property owners provide quarterly evidence, in a form acceptable to the Agency, that the property is being actively marketed for development. Such evidence would be in the form of marketing materials, letters of interest, and development proposals. The originally estimated value of the project was $2,750,000. The project will provide an estimated $27,500 in annual tax increment revenue to the Agency. Attachments: 1 - Owner Participation Agreement dated September 1, 1992 2 - Letter requesting extension 3 - Project Map H:\HOME\COMMDEV\STAFF.REP\cushmanopaagen.doc QJ-.:t AGENCY RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA EXTENDING THE OWNER PARTICIPATION AGREEMENT WITH lAWRENCE M. AND STEPHEN P. CUSHMAN, DATED SEPTEMBER 1, 1992, FOR A PERIOD OF TWO YEARS (FINAL EXTENSION) WHEREAS, the Redevelopment Agency ("Agency") entered into an Owner Participation Agreement with Lawrence M. and Stephen P. Cushman ("Owners") on September 1, 1992; and, WHEREAS, the Owner Participation Agreement required the Owners to obtain building permits within two years from the date of the Agreement, and to develop the property within one year thereafter; and, WHEREAS, the Agency has approved several extensions of the Owner Participation Agreement on March 1, 1994, on November 7, 1995, and on October 7, 1997; and WHEREAS, the Owners have graded the site but have not as yet applied for building permits due to development issues with location, access, grading and unique design features which have made it difficult to satisfy potential tenants; and WHEREAS, the Owners have requested an extension to apply for building permits and start construction. NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA does hereby find, order, determine and resolve as follows: 1. The Owner Participation Agreement ("OPA") with Lawrence M. and Stephen P. Cushman, dated September 1, 1992, is hereby extended to October 17, 2001, subject to Owners entering into an amendment to the OPA that contains the following provisions: a) the second sentence of Section 3.B of the OPA is hereby amended as follows: "In the event the developer fails to obtain such building permits bv October 17, 2001, or fails to obtain an extension to obtain said permits, the approval of the developer's development proposals shall be void and the Agreement shall have no further force or effect." b) The following sentence shall be added to Section 3.B. of the OPA "Developer shall quarterly submit evidence, in a form acceptable to the Agency, that the site is being actively marketed for development. The first quarterly report shall be due on March 30, 2000." c) All other sections of the OPA shall remain in full force and effect. 2. This shall be the final extension granted under the Owner Participation Agreement. Further extensions of time shall require application be made to enter into a new Owner Participation Agreement. BE IT FURTHER RESOLVED that the Chairman is hereby authorized to execute said Amendment on behalf of the Agency. PRESENTED BY: r~ \:~ Chris Salomone Director of Community Development APPROVED AS TO FORM BY: H:\HOME\COMMDEV\RESOS\cushmanopaexten.doc r:2...~ /fA fi) -';;5 - Cj :l ATTACHMENT 1 Recording Requested By and When Recorded Return to: The Redevelopment Agency of the City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Attention: [Space above for Recorder's use only] OWNER PARTICIPATION AGREEMENT BETWEEN THE CHULA VISTA REDEVELOPMENT AGENCY and STEPHEN P. AND LAWRENCE M. CUSHMAN THIS AGREEMENT is entered into by the CHULA VISTA REDEVELOPMENT AGENCY, a body corporate and politic [hereinafter referred to as "AGENCY"], and HELEN N. CUSHMAN [hereinafter referred to as "DEVELOPER"]. WHEREAS, the DEVELOPER desires to develop real property within the Otay Valley Road Redevelopment Project Area which is subject to the jurisdiction and control of the AGENCY; and, WHEREAS, the DEVELOPER has presented plans for development to the Otay Valley Road Project Area Committee and the Design Review Committee; and, WHEREAS, said plans for development have been recommended for approval by said Committees; and, WHEREAS, the AGENCY hereby approves the development proposals as submitted by the DEVELOPER; and, WHEREAS, the AGENCY desires that said development proposal be implemented and completed as soon as is practicable. NOW, THEREFORE, the AGENCY and the DEVELOPER agree as follows: I. The foregoing recitals are incorporated into this Agreement. 2. The property to be developed is described as Assessor's Parcel Number 644-040-01 located at 517 Shinohara Lane, Chula Vista, attached hereto and by this reference incorporated herein. .2-'-/ 3. The DEVELOPER covenants by and for themselves, their heirs, executors, administrators and assigns, and all persons claiming under or through them the following: A. That the property will be developed in accordance with the AGENCY approved development proposal attached hereto as Exhibit A and on file with the AGENCY Secretary, as Document No. OV/OP#20. B. DEVELOPER agrees to obtain building permits within two years from the date of this Agreement and to actually develop the property within one year from the date of issuance of the building permits. In the event DEVELOPER fails to obtain such building permits within two years or fails to obtain an extension to obtain said permits, the approval of DEVELOPER'S development proposals shall be void and this Agreement shall have no further force or effect. C. That in all deeds granting or conveying an interest in the property, the following language shall appear: The grantee herein covenants by andfor themselves, their heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, national origin or ancestry in the sale, lease, sublease, tramier, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee himself or any persons claiming under or through him establish or permit any such practice of discrimination or segregation with reference to the selection, location, number use or occupancy of tenants, lessees, subtenant lessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land. D. That in all leases demising an interest in all or any part of the property, the following language shall appear: The lessee herein covenants by and for themselves, their heirs, executors, administrators and assigns, and all persDns claiming under or through him, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of, any person or group of persons, on account of race, color, creed, national origin, or ancestry, in the leasing, subleasing, transferring use, occupancy, tenure, or enjoyment of the premises herein leased, nor shall the lessee himself or any persons claiming under or through him, establish or permit any such practices of discrimination or segregation with reference to the selection, location, number or use, or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased. Page 2 of 5 dl-~ 4. DEVELOPER agrees that if either the AGENCY or the CITY OF CHULA VISTA proceeds to form a Special Assessment District for the construction or maintenance of public roads, common areas, or other public facilities which benefit the real property, subject to this agreement, the DEVELOPER hereby waives any right she may have to protest the formation of such Special Assessment District. Said waiver shall not preclude the DEVELOPER from protesting the amount of any assessment on such property. 5. DEVELOPER agrees to accept the attached conditions imposed by the Design Review Committee as described in Exhibit B. 6. DEVELOPER agrees to maintain the premises in FIRST CLASS CONDITION. "A. DUTY TO MAINTAIN FIRST CLASS CONDITION. Throughout the term of this Agreement, Developer shall, at Developer's sole cost and expense, maintain the Premises and all Improvements in first class condition and repair, and in accordance with all applicable laws, permits, licenses, and other governmental authorizations, rules, ordinances, orders, decrees, and regulations now or hereafter enacted, issued or promulgated by federal, state, county, municipal, and other governmental agencies, bodies, and courts having or claiming jurisdiction and all their respective departments, bureaus, and officials. If the owners fail to maintain the property in a "first class condition", the Redevelopment Agency of the City of Chula Vista or its agents shall have the right to go on the property and perform the necessary maintenance and the cost of said maintenance shall become a lien against the property. The Agency shall have the right to enforce this lien either by foreclosing on the property or by forwarding the amount to be collected to the Tax Assessor who shall make it part of the tax bill. B. Developer shall promptly and diligently repair, restore, alter, add to, remove, and replace, as required, the Premises and all Improvements to maintain or comply as above, or to remedy all damage to or destruction of all or any part of the Improvements. Any repair, restoration, alteration, addition, removal, maintenance, replacement and other act of compliance under this Paragraph [hereafter collectively referred to as "Restoration"] shall be completed by Developer whether or not funds are available from insurance proceeds or subtenant contributions. The Restoration shall satisfy the requirements of any sub-sublease then in effect for the Premises or Improvements with respect thereto or, if no sub-sublease is then in effect, shall be repaired or restored in the building standard shell condition existing immediately prior to the date of such damage or destruction. C. In order to enforce all above maintenance provisions, the parties agree that the Community Development Director is empowered to make reasonable determinations as to whether the property is in a first class condition. If he determines they are not, he (I) will notify the owners in writing and (2) extends a reasonable time to cure. If a cure or substantial progress to cure has not been made within that time, the Director is authorized to effectuate the cure by City forces or otherwise, the cost of which will be promptly reimbursed by the owners. Page 3 of 5 .2-'- In the event that there is a dispute over whether property is in a first class condition or over the amount of work and expense authorized by the Director to cure, the parties agree that the City Manager or his designee shall resolve that dispute and both parties shall be bound by his decision. In the event that the Director decides without dispute, or the City Manager decides in dispute, that the City has to cure and the amount of cure, then owners have to reimburse the City within thirty (30) days of demand. If not reimbursed, it constitutes a lien and City is authorized to record said lien with the County Recorder, upon the premises. D. FIRST CLASS CONDITION DEFINED. 'First class condition and repair,' means Restoration which is necessary to keep the Premises and Improvements in efficient and attractive condition, at least substantially equal in quality to the condition which exists when the condition(s) in attached Exhibit B are completed." 7. AGENCY and DEVELOPER agree that the covenants of the DEVELOPER expressed herein shall run with the land for the term of this agreement. DEVELOPER shall have the right, without prior approval of AGENCY, to assign its rights and delegate its duties under this Agreement, and shall thereafter have no further liability hereunder. 8. AGENCY and DEVELOPER agree that the covenants of the DEVELOPER expressed herein are for the express benefit of the AGENCY and for all owners of real property within the boundaries of the Otay Valley Road Redevelopment Project Area as the same now exists or may be hereafter amended. AGENCY and DEVELOPER agree that the provisions of this Agreement may be specifically enforced in any court of competent jurisdiction by the AGENCY on its own behalf or on behalf of any owner of real property within the boundaries of the Otay Valley Road Redevelopment Project Area. 9. AGENCY and DEVELOPER agree that the premises shall only be used for light industrial land uses permitted under the I-L, Limited Industrial zone of the City of Chula Vista's Zoning Ordinance, or land uses permitted in I-L zones through the conditional use process. 10. DEVELOPER or subsequent owners shall not allow activities to be conducted that create noise, light or other nuisances. Upon completion of the project, DEVELOPER will provide to the owners of residential property directly abutting the DEVELOPER'S parcel the telephone numbers of property managers and the City's Code Enforcement Officer to allow for complaints to be lodged and abatement to be initiated if anyon-site noise generation activities result in a perceived nuisance. II. The term of this Agreement shall be the same as the term of the Otay Valley Road Redevelopment Project Area which runs until December 2028, or until major redevelopment of the building takes place, whichever first occurs. Initiation of the redevelopment shall mean the preparation and submission of plans to the AGENCY for the renovation or demolition of structures and redevelopment of the site. Page 4 of 5 __ .;1-'7 12. AGENCY and DEVELOPER agree that the covenants of the DEVELOPER expressed herein are for the express benefit of the AGENCY and for all owners of real property within the boundaries of the Otay Valley Road Redevelopment Project Area as the same now exists or may be hereafter amended. AGENCY and DEVELOPER agree that the provisions of this Agreement may be specifically enforced in any court of competent jurisdiction by the AGENCY on its own behalf or on behalf of any owner of real property within the boundaries of the Otay Valley Road Redevelopment Project Area. 13. AGENCY and DEVELOPER agree that this Agreement may be recorded by the AGENCY in the Office of the County Recorder of San Diego County, California. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA "AGENCY" Dated: d!)fLI:..tm I}lj), / (), /9 q;).. , By: -.s- /l-JA- Tim Nader, Chairman STEPHEN P. CUSHMAN "DEVELOPER" Dated: November 11, 1992 /J~A By: /" J? , / 1: ./ Stephe'h P. Cushman LAWRENCE M. CUSHMAN "DEVELOPER" Dated: November 12, 1992 ~[ By: '. UJJJ\ W~ LawreJce M. Cushman "'" .:l. - y [C:IWP51IAGENCYICUSHMAN3.0PA] Page 5 of 5 EI WlLLlAr:ll~I"~'~"~~~ln,~",A~",~Q91Al~,~ Ilhll' Mj; n" Pllii "'Ii'" 'I F"Il'"ill"tll"III'III!.lIllIll'llIIlilIIIllIP"I"ltL'"t!,jjlii " Ii" R , ,'" ,HmM, , ffl" 1 AnACHMENT 2 October 4, 1999 Byron Estes Planning Department City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Re: Otay Valley Industrial Park Negative Declaration IS-90-53, DRC-91-82 Dear Mr. Estes: On behalf of our clients, Lawrence M. Cushman and Stephen P. Cushman, we hereby request a 2 year extension of time of the Owner Participation Agreement for the above referenced project. The location, access, grading and unique design features have made it difficult to satisfy the potential leases and proceed with development of the property as required by the Owner Participation Agreement. The current Owner Participation Agreement expires on October 17, 1999. Please advise us as soon as possible if you need any clarifications or if any new policies have been enacted to affect this request. Very truly yours, WILLIAM A. STEEN & ASSOCIATES ~~ WAS: sv William A. Steen cc: Lawrence M. Cushman 1/6219-101 ,;J. - , . 8580 LA MESA BLVD" SUITE 102, LA MESA, CALIFORNIA 91941. (619) 460-9000 . FAX (619) 460-9005 . --=. - ~_.. /J:\. ._ , ~~-~._. =: rr', r-' -~' / "r<:':"i-r'</"-::-:';-'~rr; ~;:~~r: A ';':;;.,cr;..-rr....;::?,:-:;:,<_::-::.'r/r( r,<r ~ . (I .;r"r~~r~tr;.,~ '-'-,-r.rrr, .,~ . _'L.... 0.'- . SeOUOIA r--~. F=?mmrfr ::- g;::fS ~I[oJii -4 / I U ill 'i1 g::: C1IIIIIIIJ ~ ~g 'LJ g UllIllL Ll '" ~~~ IIUI ~ S WlliJ/ I \ \ 1/ ~ (\\\\l~r t=;. llllliW ~~ li'~'1HU J ~~. ~ ".", C Q S-T JI r\ ----~ '... :--- . , f-1J~~ r-< rt<- ~ 'L r-- r- r- - ~ \oJ Z 3t >- a z < :r <%l l.tIlJ , . ~ - hzo.le:6T lA::A. TI vN OTAY ~"tJ c--- A. (~~~~~:. 7!ftL--k--4 . . (. _ . ATTACHMENT 3 'L~ . _ :::::::2 I~ h r-: r - r- I r r- [ -:::::1 t- h.r-, 'r- rr' 'r- 0- N ~ ,- J-1 0- r- t"-\-r r--, r--L .... ~:::! w '. r u _' I U 'J--\- ~Ol-t-r-r- f<:. ~ r- ~It-- 1:] -!t- I,.. t " =- .1, . r L J r- II J -'-1. _ ..L ~ h J r-r-- ---- -, Vr-rl- U J _ "'--~ l.D J -, '"', , -,r \ I r- ,~ r-r.- r- - ~n _ r- .1/ ' L < CkCRR' "' \ J L CT. ~ - o en ;;: ...J W o GJ ; I . <( :t o a: I -: . V ALLEY ROAD ~ ] ~lOCA TOR _ . w~~ /a=F14:: "' ..4 " - ) ~OINT REDEVELOPMENT AGENCV/CITY COUNCIL ITEM TITLE: iJ) SUBMITTED BY: REVIEWED By: AGENDA STATEMENT ITEM No. ..3 a . MEETING DATE 1 1/0B/BB PUBLIC HEARING: CONSIDERATION OF A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA ("CITY"), REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ("AGENCY"), AND ROHR, INC., OPERATING AS BFGOODRICH AEROSPACE AEROSTRUCTURES GROUP ("BFG"), RELATED TO PROPERTY BOUNDED BY BAY BOULEVARD TO THE EAST, THE REALIGNED MARINA PARKWAY TO THE WEST, F STREET/LAGOON DRIVE TO THE NORTH, AND THE PROPOSED EXTENSION OF H STREET TO THE SOUTH ORDINANCE APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE CITY, REDEVELOPMENT AGENCY AND ROHR, INC., OPERATING AS BFGOODRICH AEROSPACE AEROSTRUCTURES GROUP ("BFG"), RELATED TO PROPERTY BOUNDED BY BAY BOULEVARD TO THE EAST, THE REALIGNED MARINA PARKWAY TO THE WEST, F STREET/LAGOON DRIVE TO THE NORTH, AND THE PROPOSED EXTENSION OF H STREET TO THE SOUTH COMMUNITY DEVELOPMENT DIRECTOR LQ.-~ ~ EXECUTIVE DIRECTOR f..t~~ (4/5THB VOTE: YES_ No..A..) t- The City, Agency, and the San Diego Unified Port District ("Port") are currently in the process of redeveloping the Chula Vista Bayfront. The successful redevelopment of the Bayfront will require integrated planning that will involve real property owned by Agency, Port, and other parties. City, Agency, BFG, and Port have entered into a Relocation Agreement dated July 13, 1999 setting forth their agreement with respect to the consolidation and relocation of BFG's facilities and operations of BFG's existing campus north of the proposed H Street extension. In consideration of its substantial investment in the relocation, BFG desires to receive assurance through a development agreement ("Development Agreement") that they may proceed with development in accordance with existing rules, regulations and official policies of the City and Agency. In exchange BFG has agreed to cooperate with adjacent Bayfront development proposals and to certain development restrictions on its own property. The Environmental Review Coordinator has determined that no new environmental impacts that have not been previously addressed in the Bayfront Specific Plan EIR and the Mitigated Negative Declaration for the BFG Relocation Agreement will occur as a result of the approval of the proposed Development Agreement. ...3 Q. - I PAGE 2, ITEM MEETING DATE 1 1/09/99 That the City Council conduct the public hearing and place the ordinance on first reading; and that the Council/Agency approve the proposed Development Agreement in accordance with the attached Ordinance based on the findings and subject to the conditions contained therein. The Planning Commission voted 5/0 to recommend that the Redevelopment Agency/City Council approve the proposed Development Agreement in accordance with the attached City Council Ordinance based on the findings and subject to the conditions contained therein. 1. Backqround The proposed project is a Development Agreement for the reconfigured BFG aerospace office and manufacturing campus. The project site is generally bounded by Bay Boulevard to the east, the realigned Marina Parkway to the west, F Street/Lagoon Drive to the north, and the proposed extension of H Street to the south. The project site is further described on Attachment 3. BFG, and its predecessor, Rohr, Inc. have operated aviation and aerospace related manufacturing on the Chula Vista bayfront for over 50 years. Within that time, significant expansion of the Rohr facilities has occurred, including expansion onto fill land that is currently held in trust by the Port. In 1997 Rohr was acquired by the BF Goodrich Company and currently operates as BF Goodrich Aerospace, Aerostructures Group. Due to a number of factors, including changes in manufacturing processes, increased efficiency, and market changes, certain land and buildings within the existing BFG campus are not fully utilized. The purpose of the Relocation Agreement, approved by the City Council/Agency on July 13, 1999, is to facilitate the consolidation of operations for BFG onto a smaller area of land. This will allow the redevelopment of the vacated lands, resulting in increased economic productivity, and potentially reducing growth pressures on other areas of the community. Under the Relocation Agreement, BFG transfers fee ownership of approximately 37.6 acres to the Port and vacates current leasehold interest south of the proposed H street extension to Marina Parkway. In exchange the Port will transfer fee title ownership of 16.66 acres (please see attached exhibit). Additionally the Port will arrange for the conveyance of fee title ownership of the SDG&E and MTDB rights-of-way that currently bisect the BFG property. An easement over this entire area would be retained by SDG&E for the electrical transmission lines and other facilities. The City agrees to convey properties (approximately 3 acres) that are currently owned in fee by the City to BFG, and agrees to arrange for the transfer of an additional 3.02 acre parcel owned by the Rados Brothers. After the property transfers, BFG has until January, 2003 to relocate its south of H Street operations to the consolidated "New Campus" north of H Street. Both BFG and the Port shall share in the costs of environmental review and remediation for the "South Campus" properties being vacated by BFG per the terms of the Relocation Agreement. The Relocation Agreement also provides financing assistance to BFG from the Agency to facilitate the construction of industrial manufacturing facilities, related offices and ancillary support facilities, and finance equipment newly developed, rehabilitated, or installed during the Relocation Period. The Agency subsidy is limited to the amount of tax increment generated by such facilities. The agreement also contemplates substantial Port funding and construction of the H Street extension project and a realigned Marina Parkway. The Relocation Agreement also contemplates the negotiation and processing for consideration of the proposed Development Agreement. ..3.. -;). PAGE 3, ITEM MEETING DATE 1 1/09/99 2. Nature of Prooosal The item presented for your consideration is a statutory Development Agreement for the consolidated BFG campus (see site map attached). This type of Development Agreement is expressly provided for under California Government Code Sections 65864 through 65869.5. Developers request such agreements to "vest" their land use entitlements, typically for a project that is expected to be built out over many years. Entitlements that are "vested" cannot be changed in the future by the local governing agency except, typically, in the case of unforseen risk to public health or safety. No specific physical construction activities are being proposed by BFG at this time. Some improvements requiring permitting and Design Review approval are expected, however, as part of BFG's relocation and consolidation process. The potential for expansion of "New Campus" office and industrial facilities in the future is unknown at this time. A copy of the proposed Development Agreement is attached (see Attachment 4). A summary of its terms and conditions are set forth below. 3. General Plan, Zoninq, and Land Use GENERAL PLAN ZONING CURRENT LAND USE Site: CP (Professional And Administrative Commercial), IR (Research and Limited Industrial), IG (General Industrial), and PQ (Public and Quasi Public) Bayfront Specific Plan ("BSP") aerospace manufacturing, vacant parcels North: CT (Commercial BSP Thoroughfare), CRD (Central Resort District), PR (Parks and Recreation), And PQ Park, vacant restaurant, and fallow agriculture South: IG and PQ BSP aerospace manufacturing East: Transportation Corridor Interstate 5 West: Port of San Diego Port Master Plan Industrial vacant and modular building. construction sites 4. Analvsis Vestinq BFG proposes to invest approximately $50 million dollars in an area where they are adjacent to visitor commercial uses. They desire the assurance of being allowed to continue their industrial use. The Development Agreement gives BFG the vested right to implement all existing permitted uses for a period of up to twenty years. This term would expire if and when BFG defaults under the Relocation Agreement. BFG would still be required to obtain all permits required under existing land use laws. The City/Agency reserves the right to impose new land use laws that are consistent with the existing laws, and changes to existing laws in the event of an unforseen threat to public health or safety. J tit -..3 PAGE 4, ITEM MEETING DATE 1 1/09/99 RADOS AND AGENCY PARCELS BFG intends to use the Rados and Agency parcels for parking and open storage. BFG is required to obtain all appropriate permits in order to allow this to occur, and the City/Agency retains the right to impose reasonable conditions on such uses. BFG agrees to use is best efforts to (a) minimize and screen open storage of equipment and materials, and (b) not to use the perimeter of the New Campus for open storage. BFG agrees not to use the Rados parcel for open storage at any time and acknowledges and agrees that such use shall not be permitted. The City/Agency shall be granted an easement over a portion of the Rados Parcel for the installation and maintenance of a Bayfront Redevelopment Project Area "entry statement". If after six years from the effective date of the agreement BFG has not committed to the development of the Rados Parcel into a permanent use that is integrated with an industrial and/or office development project, the Agency shall have the right to reacquire the Rados Parcel pursuant to the terms and conditions of the Development Agreement. BFG's OBLIGATION TO COOPERATE/NO CHALLENGE The Development Agreement states that BFG will not oppose, challenge or seek conditions or mitigation measures in connection with land use permits and other approvals necessary for development of projects proposed within the Bayfront Redevelopment Project Area consistent with or less impactive than the existing rules, regulation and official policies. In addition BFG shall reasonably cooperate with the Agency in its processing, approval and implementation of adjacent developments. DEVELOPMENT RESTRICTIONS BFG agrees to submit to the Agency a master plan showing vertical improvements for the ultimate development of their property prior to processing permits for such improvements. In order to develop the site, presently the Bayfront Specific Plan/Coastal Development Application Permit Procedures Manual requires a presubmittal conference, submittal of sufficient drawings to establish the functional land use, basic design and landscape concept, materials, architectural features, signage, and finish, staff review, formal submittal to the Design Review Committee, and submittal of plans to the Redevelopment Agency for an Owner Participation Agreement. SUMMARY Staff recommends approval of the Development Agreement. The Development Agreement is part of a larger substantial redevelopment project on the Bayfront. The Development Agreement helps eliminate the uncertainty in planning for BFG allowing them the opportunity to master plan the property per the existing rules, regulations, and policies of the City and Agency. It also provides the City with some assurances that BFG will undergo a master planning process for site development, and will cooperate with other development proposals on adjacent Bayfront properties The Development Agreement's fiscal impact is confined to staff time necessary to prepare it. The staff time is eligible for reimbursement by the Bayfront Project Area. ATTACHMENTS 1. Location Map 2. Development Agreement ..9..-4 ORDINANCE NO. AN ORDINANCE OF THE CITY OF CHULA VISTA CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A DEVELOPMENT AGREEMENT WITH ROHR, INC. OPERATING AS BFGOODRICH AEROSPACE AEROSTRUCTURES GROUP ("BFG"), RELATED TO PROPERTY BOUNDED BY BAY BOULEVARD TO THE EAST, THE REALIGNED MARINA PARKWAY TO THE WEST, F STREET/LAGOON DRIVE TO THE NORTH, AND THE PROPOSED EXTENSION OF H STREET TO THE SOUTH WHEREAS, the City of Chula Vista ("City"), a charter law city, is authorized pursuant to Article 2.5 of Chapter 4 of Title 7 of the Government Code, Section 65864 through 65869.5 to enter into binding development agreements with persons having a legal or equitable interest in real property for the development of such property in order to establish certainty in the development process; and, WHEREAS, City, Agency, BFG, and the Port of San Diego have entered into a Relocation Agreement, dated July 13, 1999, setting forth their agreement with respect to the consolidation and relocation of BFG's facilities and operations currently on their property; and, WHEREAS, Staff recommended approval of the Development Agreement. For the following reasons: (a) the Development Agreement is part of an important redevelopment project on the Bayfront; (b) the Development Agreement helps eliminate the uncertainty in planning for BFG allowing it the opportunity to master plan the property per the existing rules, regulations, and policies of the City and Agency; (c) the Agreement also provides the City with some assurances that BFG will undergo a master planning process for site development, will restrict :ertain undesirable uses, and will cooperate with other development proposals on adjacent Bayfront properties. WHEREAS, the provIsions of the Development Agreement are consistent with the general plan and the applicable specific plan as described in the attached Planning Commission Agenda Statement; and, WHEREAS, the Environmental Review Coordinator has determined that all potential environmental impacts have been considered previously with the Environmental Impact Report for the Bayfront Specific Plan and the Mitigated Negative Declaration for the Relocation Agreement and no further environmental review is warranted; and, WHEREAS, on September 29, 1999 the City Planning Commission voted 5-0 to recommend that the City Council/Agency approve the Development Agreement in accordance with Resolution ; and, WHEREAS, the City Clerk set the time and place for a hearing on said Development Agreement and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the city and its mailing to property owners within 300 feet of the exterior boundaries of the property at least ten days prior to the hearing; and, ..3fA-~ Ordinance No Page 2 WHEREAS, the hearing was held at the time and place as advertised, namely on October 19, 1999, at 6 p.m. in the Council Chambers, 276 Fourth Avenue, before the City Council/Agency and said hearing was thereafter closed. NOW, THEREFORE, the City Council of the City of Chula Vista and Agency does hereby find, determine, and ordain as follows: SECTION I: the City Council/Agency hereby finds that the Development Agreement presented is consistent with the City of Chula Vista General Plan and the Bayfront Specific Plan in that the agreement conforms to all existing land use designations and other rules, regulations and official policies governing the "New Campus" property described therein. SECTION II: the City/Council hereby approves the Development Agreement in substantially the form presented with minor modifications approved by the City Attorney a copy of which shall be kept on file with the City Clerk as Document No. SECTION III: this Ordinance shall take effect and be in full force the thirtieth day from its adoption. Presented by Approved as to form by CL~~ Chris Salomone Director of Community Development -3,.-" ATTACHMENT 1 VI >> :z o in " .0 CD >> " \\~~-- -_c:.f~ ,~ .'~ \~ /:? \r;'l :/j . ~ /,".>0 \-0 //.Jo tf' //-iT ~\~{' I .~__ r\~ if ,~'!Illi'. \; :;> !C' 'J-I I :~\~I 1 ' ! ~ a i ~l "UJV~~ WA.Y ~: \\ ---1;1 I I \ II \........ SMIOPIPER: WAY .. \ " '\ I I \i \\ I \ ",,- I /^'---~I ---;::/ ----/ ~' -~ -' .'--'. t\fTRF.F'i , 1m X :r. i:O - '~-l )> I [ i Ii ~ I ~ . > , 1m ,~ 'lCl I~ ,~ .~ 0 '0 $' f.W w N ~ ~ :u (f) ,~ 0 "" (j) '" ... - I~ Ig ;; CS " u ~ (JJ [IJ , ,z 'm ~ " " m ~ ~ . e e ,0 21~ IIII~II )> ~ "T1 , m m 0 ,en :;0 0 0 0 e > m > > .- jJg '" Gl " > 0 '0 III ;+ ;+ Gl F 0 0 ~ !~ ~ 0 .;.f f~ 0- eD 0 P % , m m if ::J " 11o " ~ m " " < ,0 " 0 [IJ " " % m IOJ ~.~ 0 en " III III m 0 m > " a '", I '< " . " x 0 % ~ "' "T1 > I~ E a. ,. " " III " " -0 ~ 0 " 0 ;G') !;2!o 0.... "'I III ~ ~ a CD ~ " ~ ~ " I !;!Z <9 ~ III . ;+ ~ c ... . " z . z " ~ io -. " . ~ -0 '< m m m c '> ... ~ " ~ N CD " D e " 0 w~ n -~ I ~ ;+ ~ z ~ 1:1> ~C"'} 1m ~ '< m ~ s: 1:<: o(;l ~ n I" ,m 'c i~ ;::>r", I(f) "' ;.- -; .34. -. _.......unlOn.. 10. DEVELOPMENT AGREEMENT THIS DEVELOPMENT AGREEMENT (hereinafter referred to as "Agreement" or "Development Agreement") is made and entered into effective as of , 1999 (the "Closing Date" under the "Relocation Agreement," defined below ("Effective Date"), by and between the CITY OF CHULA VISTA, a municipal corporation (hereinafter referred to as "City"), REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, a redevelopment agency formed pursuant to Health and Safety Code SS 33000 et seq. ("Agency"), and ROHR, INC., operating as BFGoodrich Aerospace Aerostructures Group, a Delaware corporation and wholly owned subsidiary of The BFGoodrich Company (hereinafter referred to as "BFG"). All references in this Agreement to "City/Agency" shall refer collectively to City and Agency. City, Agency and BFG are from time to time hereinafter referred to individually as a ''party'' and collectively as the ''parties. " The parties hereby agree as follows: Section I. Recitals. This Agreement is predicated upon the following facts, which are incorporated into and made a part of this Agreement: 1.1 Legal Authorization. The City, a charter law city, is authorized pursuant to Article 2.5 of Chapter 4 of Title 7 of the Government Code, Sections 65864 through 65869.5 (the "Development Agreement Statl/te"), to enter into binding development agreements with persons having a legal or equitable interest in real property for the development of such property in order to establish certainty in the development process. The Agency is authorized and empowered under Health & Safety Code SS 33000 et seq. to enter into such agreements to assist with the redevelopment ofreal property within a redevelopment project area. 1.2 BFG. BFG is the owner of certain real property (the "BFG Land") located in the City of Chula Vista, County of San Diego, California as shown on the map attached as Exhibit A. BFG intends to acquire, and has an equitable interest in, certain other real property (the "Transfer Property") h including the Agency Parcel and the Rados Parcel -- pursuant to those certain Land Transfer Agreements between BFG and (a) the Agency; and (b) the San Diego Unified Port District ("Port"). The Transfer Property is also shown on the map attached as Exhibit A. The BFG Land and the Transfer Property shall be collectively referred to as the "New Campl/s." The New Campus consists of approximately 89 acres of land, as more particularly described in the legal description attached as Exhibit B, and is within the Specific Plan. 1.3 Objectives of Agreement. City, Agency and Port are currently in the process of redeveloping the Chula Vista Bayfront (the "Bayfront," as further defined in Section 2.5). The parties acknowledge that the successful redevelopment of the Bayfront, of which the New Campus is a part, will require integrated planning and development that will involve real property owned by Agency, Port and other parties. City, Agency, BFG and Port have entered into a Relocation Agreement dated July 13, 1999, setting forth their agreement with respect to the consolidation and J..-r relocation of BFG's facilities and operations currently on the Existing Campus (as defined In Section 2.18 below) and other matters as described therein (the "Relocation Agreemem"). 1.4 Intent of Parties. For the reasons recited in this Section I, BFG and City/Agency have determined that the development of the New Campus in accordance with the Relocation Agreement and the Existing Rules, Regulations and Official Policies (as defined in Section 2.20 below) is a development project for which this Agreement is appropriate. Further, this Agreement will eliminate uncertainty in planning and provide for the orderly development of the New Campus and surrounding properties, ensure attainment of the maximum effective utilization of resources within the City at the least economic cost to its citizens, and otherwise achieve the goals and purposes of the Development Agreement Statute. In exchange for these benefits to City/Agency, together with the public benefits served by the development of the New Campus, BFG desires to receive the assurance that it may proceed with development of the New Campus in accordance with the Existing Rules, Regulations and Official Policies pursuant to the terms and conditions contained in this Agreement and based on the Project Approvals. BFG intends to develop the New Campus in accordance with the Existing Rules, Regulations and Official Policies. 1.5 Public Hearings. On September 29, 1999, the Planning Commission of the City of Chula Vista ("Planning Commission"), after giving notice pursuant to Government Code Sections 65867, 65090 and 65091 held a public hearing on BFG's application for approval of this Agreement. The City Council of the City ("City COllncil") and the Board of the Agency ("Agency Board"), after providing public notice as required by law, held a public hearing on this Agreement on October 19, 1999. 1.6 City Council Findings. The City Council has found that this Agreement is consistent with the General Plan, as well as all other applicable Rules, Regulations and Official Policies. The Agency Board has found that this Agreement is consistent with the Redevelopment Plan, as well all other applicable Rules, Regulations and Official Policies. 1.7 City Ordinance. On October 26, 1999, the City Council adopted Ordinance No. approving this Agreement with BFG. Section 2. Definitions. In this Agreement, unless the context otherwise requires: 2.1 "Agency" means the Redevelopment Agency of the City of Chula Vista, a political subdivision in the State of California exercising governmental functions and powers and organized and existing under the Community Redevelopment Law of the State of California (Health and Safety Code Sections 33000 et seq.). 2.2 "Agency Board" shall have the meaning set forth in Section 1.5. 2.3 "Agency Parcel" means the real property Agency owns on Bay Boulevard south of Lagoon Drive, comprising approximately 3.65 acres, which is part of the Transfer Property shown on Exhibit B. 2.4 "Agreement" means this Development Agreement. ..3.. - q 2 -MEOOOOD.DOC 2.5 "Bayfront" means the property located in the City of Chula Vista, California, bounded by F Street and Lagoon Drive to the north, Interstate 5 to the east, J Street and Marina Parkway to the south, and the San Diego Bay to the west. 2.6 "BFG" means Rohr, Inc., operating as BFGoodrich Aerospace Aerostructures Group, a Delaware corporation and wholly owned subsidiary ofThe BFGoodrich Company. 2.7 "BFG La/ld" shall have the meaning set forth in Section 1.2. 2.8 "CEQA" shall mean the California Environmental Quality Act, Public Resources Code Section 21000 et seq. 2.9 "City" means the City of Chula Vista, a municipal corporation having charter powers. 2.10 "City/Age/lcy" means the City and the Agency. 2.11 "City Cou/lcil" means the City Council of the City of Chula Vista. 2.12 "Developme/lt Agreeme/lt" means this Development Agreement. 2.13 "Developme/lt Agreement Statute" means Title 7, Chapter 4, Article 2.5, Sections 65864 through 65869.5 of the Government Code. 2.14 "Developme/lt Agreeme/lt Statute Rights a/ld Obligatio/ls" shall have the meaning set forth in Section 6.10. 2.15 "Easeme/lt Area" shall have the meaning set forth in Section 4.9.l(b). 2.16 "Effective Date" means the "Closi/lg Date" under the Relocation Agreement which is . If the Closing Date does not occur under the Relocation Agreement for any reason whatsoever, this Agreement shall have no force and effect. 2.17 "E/ltry Stateme/lt" shall have the meaning set forth in Section 4.9.l(b). 2.18 "Existi/lg Campus" means that certain real property in the City of Chula Vista owned or leased by BFG on which BFG currently operates a manufacturing facility. 2.19 "Existing Permitted Uses" means all uses for which the Existing Campus is currently used that are consistent and in compliance with the Rules, Regulations and Official Policies applicable to the Existing Campus as of the Effective Date, including, without limitation, manufacturing and related operations (including all activities. associated with the research, development, manufacture, assembly, processing, testing, servicing, repairing, storage and/or distribution of products and component parts and all activities incidental thereto), accessory uses and buildings (including off-street parking and loading facilities, administrative, executive and financial offices and incidental services, such as restaurants to serve employees) and all other uses of the same general character as the foregoing; provided, however, that nothing herein shall be construed to permit any uses which are inconsistent with public health and safety. 3 ~. -I D -MEOOOOD.DOC 2.20 "Existillg Rilles, Regulatiolls alld Official Policies" means all Rules, Regulations and Official Policies existing and in effect as of the Effective Date. 2.21 "Gelleral Plall" means the City of Chula Vista General Plan. 2.22 "Illterim Use Period" shall have the meaning set forth in Section 4.9.I(a). 2.23 "New Campus" means the BFG Land and the Transfer Property as shown on Exhibit A and more particularly described in Exhibit B. In the event BFG elects to close pursuant to the Relocation Agreement without receiving title to (or a possessory interest in) one or more of the properties comprising the Transfer Property, the New Campus shall not include such properties unless title to (or a possessory interest in) such properties is subsequently acquired, in which event such properties shall be included in the definition of the New Campus for purposes of this Agreement. 2.24 "New Rules" shall have the meaning set forth in Section 4.3. 2.25 "Optioll Notice" shall have the meaning set forth in Section 4.9.1. 2.26 "Origillal Pllrchase Price" shall have the meaning set forth in Section 4.9.I(c)(l). 2.27 "Planlling Commission" means the Planning Commission of the City of Chula Vista. 2.28 "Plallllillg Director" means the Planning Director of the City of Chula Vista. 2.29 "Port" means the San Diego Unified Port District formed pursuant to the San Diego Unified Port District Act, Harbors and Navigation Code App. I, ~~ 1 et seq. 2.30 "Project Approvals" means all special use permits, owner participation agreements, design review approvals, parcel maps, tentative and final subdivision maps, environmental approvals (including CEQA approvals), lot line adjustments, building permits, grading permits, preliminary and final development plans, certificates of occupancy and all other land use, environmental and building approvals, permits and entitlements required for the development of the New Campus in accordance with the applicable Rules, Regulations and Official Policies. 2.31 "Rados Optioll" shall have the meaning set forth in Section 4.9.1(c). 2.32 "Rados Optioll Purchase Price" shall have the meamng set forth m Section 4.9.I(c)(I). 2.33 "Rados Optioll Term" shall have the meaning set forth in Section 4.9.l(c)(2). 2.34 "Rados Parcel" means the land currently owned by Rados Bros. and located at the comer of Bay Boulevard and Lagoon Drive, comprising approximately 3.02 acres, which is part of the Transfer Property shown on Exhibit A 2.35 "Relocatioll Agreemellt" shall have the meaning set forth in Section 1.3. ..3. -II 4 -MEOOOODDOC 2.36 "Rules, Regulations and Official Policies" means the City and Agency rules, regulations, ordinances, laws, general or specific plans, zoning, and official policies governing development, design, density and intensity of use, permitted uses, growth management, environmental review, construction and building standards and design criteria relating to development or use of real property and applicable to the New Campus; these include, without limitation the General Plan, the Chula Vista Local Coastal Program Land Use Plan, approved on October 13, 1992 by Ordinance No. 2532 and certified by the California Coastal Commission on January 15, 1993, the Specific Plan, and the Redevelopment Plan, Chula Vista Bayfront Redevelopment Project, dated June 24, 1974, as amended consistent with the terms of this Agreement. 2.37 "Specific Plan" means the Chula Vista Local Coastal Program Implementation Plan contained in Chula Vista Municipal Code Chapters 19.81 through 19.87, as amended consistent with the terms of this Agreement. 2.38 "Term" shall have the meaning set forth in Section 6.1. 2.39 "Transfer Property" shall have the meaning set forth in Section 1.2. Section 3. Conflicts of Law. 3.1 Conflict of City and State or Federal Laws. In the event that state or federal laws or regulations enacted after the Development Agreement Effective Date prevent or preclude compliance with one or more provisions of this Agreement or require changes in the Project Approvals, each party shall provide the other party with written notice of such state or federal law or regulation, a copy of such law or regulation and a statement concerning the conflict with the provisions of this Agreement. The parties shall, within thirty (30) days, meet and confer in good faith in a reasonable attempt to modify this Agreement to comply with such state or federal law or regulation. 3.2 Cooperation in Securing Permits. The City! Agency, without the obligation to incur costs, shall cooperate with BFG in the securing of any permits which may be required as a result of modifications or suspensions made pursuant to Section 3.1 hereof. Section 4. Development of the New Campus. 4.1 Existing Permitted Uses. Provided that BFG is not in default under this Development Agreement or the Relocation Agreement (excepting minor or inconsequential matters not affecting the substance of these agreements), and subject to the terms and conditions set forth in this Agreement, BFG shall have the vested right to implement all Existing Permitted Uses on the New Campus. 4.2 Permitted Density and Maximum Height and Size of Structures. The maximum density or level of intensity of BFG's development of the New Campus shall be that allowed pursuant to the Project Approvals. The maximum height and size of structures to be constructed upon the New Campus shall be that allowed pursuant to the Project Approvals. 5 J. -/2- -MEOOOOD.DOC 4.3 Application of Subsequently Enacted Rules, Regulations and Official Policies. The City or Agency may adopt new or modified Rules, Regulations, and Official Policies after the Effective Date ("New Rules'j that shall be applicable to the New Campus, but such New Rules shall only be applicable to the extent that they do not conflict with the Existing Rules, Regulations and Official Policies, and only if their application will not materially modify, prevent or impede the Permitted Uses or materially impair any of the rights granted BFG under the Relocation Agreement or this Agreement. Any such New Rules that materially limit or restrict the rate or timing of development of Permitted Uses on the New Campus shall be presumed to conflict with the Existing Rules, Regulations and Official Policies. Provided, however, that this shall not preclude the application to the New Campus of such subsequently enacted New Rules that are (a) specifically mandated and required by changes in state or federal laws or regulations adopted after the Development Agreement Effective Date as provided in Government Code Section 65869.5; (b) specifically mandated and required by a court of competent jurisdiction; (c) changes to Uniform Building Code and similar safety regulations that may change from time to time; or (d) required as a result of facts, events or circumstances presently unknown or unforeseeable that would have a material adverse impact on the health or safety of the surrounding community, all of which shall be allowed and shall be applicable to development on the New Campus after the Effective Date. 4.4 Infrastructure, Fees, Conditions and Dedications. City/Agency shall use best efforts to minimize or eliminate any City/Agency imposed public fees, dedications, exactions or costs (including, without limitation, development fees, infrastructure fees, or processing fees) that could be incurred by BFG in connection with relocation of its operations or additional development of the ]\;ew Campus in accordance with Existing Rules, Regulations and Official Policies or that would othenvise result from such relocation, consolidation, and the installation of relocation and consolidation-related New Campus improvements. 4.5 Project Approvals. In connection with the Relocation and any New Campus development, BFG shall be obligated to obtain any and all permits required under the Existing Rules, Regulations and Official Policies, including, without limitation, any and all permits required for open storage. ("Project Approvals"). City/Agency shall use its best efforts promptly to process and implement all Project Approvals reasonably necessary to implement the BFG Relocation to the New Campus and to fulfill the goals, objectives, policies and plans shown and described in this Development Agreement consistent with Existing Rules, Regulations and Official Policies. All permits to which the Bayfront Specific Plan/Coastal Development Application Permit Procedures Manual (adopted by Agency Resolution No. 624 on September 10, 1985), is applicable as of the Effective Date (including architectural design, site plan, conditional use and coastal permit development proposals) shall be processed in accordance with such procedures manual. City/Agency shall cooperate and diligently work to process to completion any Project Approvals (including any and all initial studies and environmental assessments and analyses (if any) required under CEQA) which are required by law in connection with the relocation and consolidation of BFG's operations and implementation of the Permitted Uses on the New Campus. Such cooperation shall include, without limitation: a) Scheduling, convening and concluding all required public hearings; and b) Processing in an expeditious manner and in accordance with Existing Rules, Regulations and Official Policies all applications for Project Approvals. City/Agency shall retain its discretionary authority as to Project Approvals, provided, however, such approvals shall be regulated by the Existing Rules, Regulations and Official Policies and New Rules allowed under Section 4.3 above. ~~- 13 6 -MEOOOOD.DOC 4.6 Life of Subdivision Maps. Pursuant to Government Code section 66452.6(a), the term of any tentative map for any subdivision, resubdivision of the New Campus or amendment to any such tentative map (including any lot line adjustment or merger of lots within the tentative map) or any other tentative map or parcel map filed subsequent to the Development Agreement Effective Date shall automatically be extended for the Term. 4.7 Other Governmental Permits and Fees. BFG shall apply in a timely manner for such other permits and approvals as may be required by other governmental or quasi-governmental agencies having jurisdiction over the implementation of any aspect of the Permitted Uses on, or provision of services to, the New Campus (including, without limitation, districts and special districts providing flood control, sewer, water and/or fire protection and agencies having jurisdiction over air quality, solid wastes, and hazardous wastes and materials). City/Agency shall cooperate with BFG in its efforts to obtain such permits and approvals and City/Agency shall use its best efforts to work with other governmental and quasi-governmental agencies so as to limit to the extent possible the imposition of additional conditions, fees, dedications or exactions by or through such agencies; provided, however, in no event shall the obligations hereunder require City/Agency to incur out-of-pocket costs. 4.8 Cooperation in the Event of Legal Challenge. In the event of any legal or equitable action or other proceeding instituted by a third party challenging the validity of this Development Agreement or any provision hereof, the parties shall cooperate in defending said action or proceeding; provided, however, BFG shall be solely responsible for costs incurred in such defense. 4.9 BFG Obligations. In consideration of City/Agency agreements under the Relocation Agreement and this Agreement, BFG agrees as follows: 4.9.1 Rados/Agency Parcels Use and Development. (a) Temporary T:se for Parking and Open Storage. BFG shall not be prevented by the City/Agency from utilizing the Rados and Agency Parcels for parking and the Agency Parcel for open storage for a period of six (6) years after the Effective Date of this Agreement (the "Interim C:se Period"). However, BFG shall be required to obtain all appropriate permits from the City/Agency in order to allow open storage and parking on the Agency Parcel and parking on the Rados Parcel, and City/Agency retains the right to impose reasonable conditions on such uses. During the Interim Use Period, BFG agrees to use its best efforts (a) to minimize and screen open storage of equipment and materials, and (b) not to use the perimeter of the New Campus for open storage. BFG agrees not to use the Rados Parcel for open storage at any time and acknowledges and agrees that such use shall not be permitted. (b) City Easement for Enhanced Landscaping and Entry Feature at I'\ortheast Corner of Rados Parcel. Prior to the Closing, City/Agency shall be granted an easement over a portion of the Rados Parcel as identified on Exhibit F to the Relocation Agreement ("Easement Area"). The easement shall be for the installation and maintenance of a Bayfront Redevelopment Project Area "entry statement" which may include enhanced landscaping, water features, statuary, monument signs and/or other quality architectural features ("Entry Statement'). City/Agency shall bear the construction and maintenance costs of the Entry Statement. Prior to City/Agency installation of an Entry Statement, BFG shall bear all costs related to improvements or maintenance 3ft -IY 7 -MEOOOOD.DOC of the Easement Area. In the event that a BFG Development Project or City/Agency proposal for an Entry Statement requires an adjustment to the Easement Area, the parties agree to meet and confer with the goal of developing a mutually agreeable adjustment that would reasonably accommodate each party's development needs. (c) Agency Option to Reaquire Rados. In the event that by the end of the Interim Use Period, BFG has not committed to the development of the Rados Parcel into a permanent use that is integrated with an industrial and/or office development project on the New Campus, Agency shall have the option ("Rados Option ") to reacquire the Rados Parcel on the terms and conditions set forth below: (1) Purchase Price. The Rados Option purchase price ("Rados Option Purchase Price'') shall be the sum of (1) $1,052,409, (the "Original Purchase Price'); (2) six percent (6%) of the Original Purchase Price multiplied by the number of years BFG owns the Rados Parcel prior to Agency exercise of the Rados Option; and (3) the County's then most recent appraised value of any improvements installed on the Rados Parcel. (2) Option Term. If the Rados Option is triggered (as provided above), the Rados Option Term ("Rados Option Term'') shall commence upon the expiration of the Interim Use Period and shall expire on the date falling five (5) years thereafter. Notwithstanding the foregoing, the Rados Option shall terminate prior to the expiration of the Rados Option Term in the event that (i) BFG requests in writing that the Agency purchase the Rados Parcel for the Rados Purchase Price and the Agency fails to exercise the Rados Option pursuant to Section 4.9.I(c)(3) within sixty (60) days after such request; or (ii) during the Rados Option Term, Agency approves an Owner Participation Agreement for the development of the Rados Parcel. (3) Option Exercise. Agency shall exercise its option rights hereunder by notifying BFG in writing of its intent to do so ("Option Notice'). The parties shall then meet and confer to prepare all necessary conveyance documents on terms consistent with the terms hereof. The Rados Parcel shall be transferred in its then "as-is" condition. Agency shall bear all standard escrow costs. The transfer shall occur within ninety (90) days after the date of the Option Notice. The Rados Option Purchase Price shall be paid in cash at close of escrow. ..J .. - I~ 8 -MEJOOODDOC (4) Retention of Rights. Notwithstanding the foregoing, BFG shall retain the right to convey the Rados Parcel to a third party at any time; provided, however, that the Rados Option to reacquire, unless previously terminated, shall run with the land and be binding upon such third party. In addition, City! Agency shall retain the right to reacquire the Rados Parcel at any time pursuant to its powers of eminent domain. 4.9.2 No Challenges; Cooperation. BFG shall not oppose, challenge or seek conditions or mitigation measures in connection with land use permits and other approvals necessary for development of projects proposed within the Bayfront Redevelopment Project Area consistent with, or less impactive than, the Existing Rules, Regulations, and Official Policies applicable thereto. In addition, BFG shall reasonably cooperate with City! Agency in its processing, approval and implementation of adjacent developments to the extent necessary and reasonable to encourage land use, infrastructure and traffic compatibility. Notwithstanding the foregoing, BFG shall reserve the right to oppose, challenge or seek conditions or mitigation measures in connection with any project or activity that has a material, adverse impact on the uses or operations of the ~ew Campus, provided, however, that this shall not include a right to challenge based upon market competition. 4.9.3 New Campus Master Plan. BFG agrees to submit to the City!Agency a master plan for the ultimate development of the New Campus showing vertical improvements prior to processing permits for such improvements. Section 5. Default, Remedies and Termination. 5.1 General Provisions. In the event of a default or breach of this Agreement or of any of its terms or conditions, the party alleging such default or breach shall give the defaulting party not less than thirty (30) days notice of default in writing, unless the parties extend such time by mutual consent in writing. The time of notice shall be measured from the date actually delivered in accordance with Section 6.7. The notice of default shall specify the nature of the alleged default, and, where appropriate, the manner and period of time in which said default may be satisfactorily cured. If the nature of the alleged default is such that it cannot reasonably be cured within such 30- day period, the commencement of the cure within such time period and the diligent prosecution to completion of the cure shall be deemed a cure within such period. During any period of curing, the party charged shall not be considered in default for the purposes of termination or institution of legal proceedings. If the default is cured, then no default shall exist or be deemed to have existed and the noticing party shall take no further action. (a) Option to Institute Legal Proceedings or to Terminate. After proper notice and the expiration of said cure period, the noticing party, at its option, may institute legal proceedings or give notice of intent to terminate this Agreement by certified mail. Written notice of termination of this Agreement shall be effective immediately upon delivery to the defaulting party. Failure or delay in giving notice of default pursuant to this Section 5 shall not constitute a waiver of 9 ..3. -I' -MEOOOOD.DOC any default. Except as othelWise expressly provided in this Agreement, any failure or delay by the other party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of such rights or remedies or deprive such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. 5.2 Enforced Delay; Extension of Time of Performance. In addition to specific provisions of this Agreement, the parties shall not be in default where delays or defaults are due to an act of God, natural disaster, accident, breakage or failure of equipment, third-party litigation, strikes, lockouts or other labor disturbances or disputes of any character, interruption of services by suppliers thereof, unavailability of materials or labor, rationing or restrictions on the use of utilities or public transportation whether due to energy shortages or other causes, war, civil disturbance, riot, or by any other severe and unforeseeable occurrence that is beyond the control of that party. 5.3 Institution of Legal Action. In addition to any other rights or remedies, either party may institute a legal action to cure, correct or remedy any default, to enforce any covenants or agreements herein or to enjoin any threatened or attempted violation thereof, to recover damages for any default, or to obtain any remedies consistent with the purpose of this Agreement. Section 6. General Provisions. 6.1 Duration of Agreement. The term of this Agreement shall commence upon the Effective Date and shall expire on the earlier to occur of (a) the twentieth anniversary thereof, or (b) the material, uncured default by BFG under the Relocation Agreement or a transfer without the approval of the City/Agency pursuant to Relocation Agreement Section 9.17 ("Term"), unless extended by mutual agreement of the parties in writing. The expiration of this Agreement shall not affect any rights of BFG arising from the Project Approvals. 6.2 Amendment or Cancellation of Agreement. This Agreement may be amended from time to time by the mutual consent of the parties hereto but only in the same manner as its adoption by an ordinance as set forth in Govemment Code Sections 65867, 65867.5 and 65868. The terms "Agreement" or "Development Agreement" used herein shall include any such amendment properly approved and executed. Any amendment to this Agreement which does not relate to the Term, Permitted Uses, provisions for reservation and dedication of land, or conditions, terms, restrictions and requirements relating to subsequent discretionary actions, or conditions or covenants relating to the use of the New Campus shall not require notice or public hearing pursuant to Government Code Sections 65867, 65867.5 and 65868. Any amendment of the Project Approvals pursuant to Section 6.3 of this Agreement shall not require an amendment to this Agreement. For purposes of this Agreement, the resubdivision of the New Campus or the filing of an amended subdivision map which creates new legal lots (including the creation of new lots within any designated remainder parcel) or which reflects a merger of lots, shall not require an amendment to this Agreement. Those Project Approvals which are consistent with the General Plan and Specific Plan shall also not require an amendment to this Agreement. This Agreement may be canceled and terminated at any time by mutual consent of the parties. 6.3 Amendment of Project Approvals. Upon the written request of BFG for a minor amendment or modification to the Project Approvals including, but not limited to: (a) the location of 10 .3..-/7 -MEOOOODDOC buildings, streets and roadways and other physical facilities, or (b) the configuration of the parcels, lots or development areas, the Planning Director shall determine whether the requested amendment or modification is consistent with this Agreement, the General Plan, the Specific Plan and the Rules, Regulations and Official Policies. For purposes of this Agreement, the determination of whether such amendment or modification is minor shall be made by reference to whether the amendment or modification is minor in the context of the overall project. If the proposed amendment is both minor and consistent with this Agreement and the Rules, Regulations and Official Policies, the Planning Director may approve the proposed amendment without notice and public hearing. For purposes of this Agreement and notwithstanding any City/Agency ordinance or resolution to the contrary, lot line adjustments shall be deemed minor amendments or modifications. 6.4 Binding Effect of Agreement. Throughout the Term, the provisions of this Agreement shan constitute covenants or servitudes which shall run with the land comprising the New Campus. 6.5 Time of the Essence. Time is of the essence of each and every obligation of the parties under this Agreement. 6.6 Independent Contractors. Each party is an independent contractor and shan be solely responsible for the employment, acts, omissions, control and directing of its employees. Except as expressly set forth herein, nothing contained in this Agreement shall authorize or empower any party to assume or create any obligation or responsibility whatsoever, express or implied, on behalf of or in the name of any other party or to bind any other party or make any representation, warranty or commitment on behalf of any other party. 6.7 Notices. An notices, demands and correspondence required or provided for under this Agreement shan be in writing and delivered in person, sent by certified mail, postage prepaid or sent by a nationany recognized overnight courier that provides documentation of delivery. Notices to City shan be addressed as fonows: City ofChula Vista 27 6 Fourth A venue Chula Vista, CA 91910 Attn: City Manager With a copy to: City Attorney Notices to Agency shan be addressed as follows: Redevelopment Agency of the City ofChula Vista 276 Fourth Avenue Chula Vista, CA 91910 Altn: Director of Community Development 11 ..3.. -/f/ -MEOOOOD.DOC Notices to BFG shall be addressed as follows: BFGoodrich Aerospace Aerostructures Group 850 Lagoon Drive Chula Vista, CA 91910-2098 Attn: Art Sellgren With a copy to: BFGoodrich Aerospace Aerostructures Group 850 Lagoon Drive Chula Vista, CA 91910-2098 Attn: Group Counsel And a copy to: McCutchen, Doyle, Brown & Enersen 1331 N. California Blvd., Suite 600 P.O. Box V Walnut Creek, CA 94596 Attn: Geoffrey L. Robinson A party may change its address by giving notice in writing to the other party in the manner provided above. Thereafter, notices, demands and other correspondence pertinent to this Agreement shall be addressed and transmitted to the new address. 6.8 Rules of Construction. The singular includes the plural; "shall" is mandatory, and "may" is permissive. Section headings are for reference purposes only and shall not be used to interpret this Agreement. Section references shall be deemed to refer to sections of this Agreement unless otherwise specified. 6.9 Severability. If any provision of this Agreement is held invalid, void or unenforceable but the remainder of the Agreement can be enforced without failure of material consideration to either party, then this Agreement shall not be affected and it shall remain in full force and effect, unless amended or modified by mutual consent of the parties. Provided, however, that if the invalidity or unenforceability of any provision of this Agreement results in a material failure of consideration, then the party adversely affected thereby shall have the right in its sole discretion, to terminate this Agreement upon providing written notice of such termination to the other parties. 6.10 Entire Agreement, Waivers, Amendments. This Agreement constitutes the entire understanding and agreement of the parties with respect to the rights and obligations conferred or assumed hereunder pursuant to the Development Agreement Statute ("Development Agreement Statute Rights and Obligations "). This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes any and all prior versions or drafts of this or any other agreement and all negotiations or previous agreements relating to the Development Agreement Statute Rights and Obligations. To the extent of any inconsistency between this Agreement and the Relocation Agreement with respect to the Development Agreement Statute Rights and Obligations, the provisions of this Agreement shall control. To the extent of any 12 J.. - " -MEOOOODDDC inconsistency between this Agreement and the Relocation Agreement with respect to any matters other than the Development Agreement Statute Rights and Obligations, the provisions of the Relocation Agreement shall control. All waivers of the provisions of this Agreement must be in writing and signed by authorized representatives of the party to be charged with such waiver. The waiver by any party of any term, covenant, agreement or condition contained in this Agreement shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, agreement or condition, nor shall any custom or practice which may grow up among the parties in the administration of this Agreement be construed to waive or lessen the right of any party to insist upon performance in strict accordance with all of the provisions of this Agreement. 6.11 Further Action. Each party agrees to take all further actions reasonably necessary to implement this Agreement. 6.12 Exhibits Incorporated. The following documents are referred to in this Agreement, and attached hereto and incorporated herein as though set forth in full: Exhibit Designation Descriptions A Map of the New Campus B Legal Description of the New Campus Property 6.13 Project is a Private T:ndertaking. It is understood and agreed to by and between the parties hereto that: (a) any development by BFG of the New Campus shall be a private development; (b) the City/Agency has no interest or responsibilities for or duty to third parties concerning any improvements until such time and only until such time that the City/Agency accepts the same pursuant to the provisions of this Agreement or in connection with any subdivision map approvals; (c) BFG shall have full power over and exclusive control of the development of the New Campus subject only to the limitations and obligations of BFG under this Agreement; (d) the contractual relationship between the City/Agency and BFG is such that BFG is an independent contractor and not an agent of the City/Agency; and (e) nothing in the Agreement is intended or shall be construed to create or reflect any form of partnership or joint venture between the parties. 6.14 Findings in Support. City, through its City Council, hereby finds and determines that the execution of this Agreement is in the best interests of the public health, safety, and general welfare and that the provisions of this Agreement are consistent with the General Plan and the Specific Plan. 6.15 Applicable Law. This Agreement shall be construed and enforced in accordance with the laws of the State of California. J ~ - .2.0 13 -MEOOOOD.DOC IN WITNESS WHEREOF, this Agreement has been executed by the parties effective as of the day and year first above written, as authorized by Ordinance No. of the City Council. City: CITY OF CHULA VISTA, a municipal corporation By: Mayor Agency: REDEVELOPMENT AGENCY OF THE CITY OF CHUlA VISTA, a redevelopment agency By: Chair BFG ROHR, Ii'ic., operating as BFGOODRICH AEROSPACE AEROSTRUCTURES GROUP, a Delaware corporation and wholly O\vned subsidiary ofTHE BFGOODRICH COMPANY By: Name: Its: APPROVED AS TO FORLv! CITY ATTOR.'\iEY By: City Attorney Jq-.2.1 14 -MEOOOOD.DOC Exhibit A Map of the New Campus .., t4 - 2 2.. Exhibit B Legal Description of the New Campus Property I. Agency Parcel 2. Rados Parcel 3. Port Parcels 4. SDG&E Parcel 5. MTDB Parcel 6. BFG Land ~.-2..3 dOINT REDEVELOPMENT AGENCV/CITY COUNCIL AGENDA STATEMENT ITEM No. ':? I> MEETING DATE 1 1/09/99 ITEM TITLE: b) RESOLUTION APPROVING AN AMENDMENT TO THE RELOCATION AGREEMENT BETWEEN THE CITY/AGENCY, BFGOODRICH AEROSPACE AEROSTRUCTURES GROUP, AND THE SAN DIEGO UNIFIED PORT DISTRICT, AND AUTHORIZING THE MAYOR/CHAIRMAN TO EXECUTE SAME SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR a CITY ATTORNEY ~ REVIEWED By: EXECUTIVE DIRECTOR~(Y (4/STHS VOTE: YES_ NO.AJ l...-'Oil The City of Chula Vista ("City"), Redevelopment Agency of the City Chula ("Agency"), San Diego Unified Port District ("Port") and BFGoodrich Aerospace Aerostructures Group ("BFG"), have negotiated the terms and conditions of a Relocation Agreement ("RA") under which certain land transfers will occur to facilitate the relocation and consolidation of BFG operations north of the planned "H" Street extension in the Bayfront Redevelopment Project Area. The consoiidation would result in a reconfigured campus for BFG generally bounded by Bay Boulevard (east), "F" Street/Lagoon Drive (north), a realigned Marina Parkway (west) and the proposed "H" Street extension (south). An Initial Study (IS-99-21) was completed for this project which resulted in a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program. The RA includes Agency and Port financial assistance to BFG as incentives to consolidate their operations, modemize their plant and equipment, and assist in funding the environmental evaluation and ultimately the clean-up of their property south of "H" Street ("South Campus"). In addition to the financial assistance, the project aiso contemplated the saie and transfer of the Agency's Bay Boulevard properties (350-360 Bay Boulevard) and the privately owned Rados Companies property (798 "F" Street) to BFG. The RA was approved by the both City/Agency and by the Port District on July 13. Since then, at the direction of the Port Commission, a Phase 11 analysis has been conducted with respect to the South Campus. In light of the extent of contamination found, the Port has required that certain provisions of the RA be amended. This item requests City/Agency approval of the proposed Amendment. That the City/Agency approve the proposed RA Amendment in substantially the form presented and authorize the Mayor/Chairman to execute same. ~D./~".IOM.RI!~MM_DATiO.>"""'" .' ....i....i.,' .' Not applicable. Immediately following Port approval of the RA. the Port commenced an intensive Phase 11 environmental assessment of the South Campus (the area to be vacated by BFG as part of its consolidation). The Phase 11 was conducted by SECOR and included extensive soil and groundwater testing. SECOR concluded that despite the existence of 3b-1 PAGE 2. ITEM MEETING DATE 1 1/0e/ge hazardous materials the South Campus could be redeveloped to the uses contemplated by the Port Master Plan after required remediation was completed. SECOR's estimate for the cost of remediation was between $6 million and $13.5 million. SECOR noted that these costs could increase if additional contamination were discovered. SECOR's executive summary of its findings is attached as Exhibit B. In consideration of SECOR's remediation cost estimate, Port staff recommended two key changes to the RA. First, the Port asked BFG's parent corporation to guaranty BFG's clean-up cost contribution commitment. Second, the Port asked that clean-up cost maximum up to which the Port shall be a partner with BFG in choosing and implementing a remediation program be increased from $7 million to $12 million. Above $12 million, BFG would solely manage (subject to certain exceptions) the remediation process. Port staff felt these changes were necessary to assure the timely and complete clean-up of the existing site conditions identified by the SECOR. (The Port staff report on this matter is attached as Exhibit A.) BFG has agreed to these changes. City/Agency staff feels that these modifications are beneficial to the process and recommends their approval. The two additional changes to the RA proposed by the Port (and agreed to by BFG) are: prohibit "pennanent dewatering" in connection with development of the South Campus, and (2) prohibit on-site incineration of hazardous materials as a remediation technique. These changes were derived from environmental concems expressed by the Environmental Health Coalition. City/Agency staff would prefer not to restrict activities on South Campus development in this matter. A prohibition on pennanent dewatering may make the development of underground parking more costly or infeasible. However, staff believes that these restrictions will not ultimately pose meaningful limitations on South Campus remediation/development to its highest and best use, and the changes will encourage EHC and other similar group support for the relocation project. A copy of the proposed Amendment is attached as Exhibit C. No additional fiscal impacts on the City/Agency are anticipated in connection with this amendment. H:IHOMElCOMMDEV\ST AFF.REPI 11-09-99IBFG Amdmnt.doc 3b-2 COUNCIL RESOLUTION AND AGENCY RESOLUTION NO. JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO THE RELOCATION AGREEMENT BETWEEN THE CITY/AGENCY, BFGOODRICH AEROSPACE AEROSTRUCTURES GROUP, AND THE SAN DIEGO UNIFIED PORT DISTRICT, AND AUTHORIZING THE MAYOR/CHAIRMAN TO EXECUTE SAME WHEREAS, the City of Chula vista ("City"), Redevelopment Agency of the City Chula ("Agency"), San Diego Unified Port District (" Port") and BFGoodrich Aerospace Aerostructures Group ("BFG"), have negotiated the terms and conditions of a Relocation Agreement ("RA") under which certain land transfers will occur to facilitate the relocation and consolidation of BFG operations north of the planned "H" Street extension in the Bayfront Redevelopment Project Area; and WHEREAS, the consolidation would result in a reconfigured campus for BFG generally bounded by Bay Boulevard (east), "F" Street/Lagoon Drive (north), a realigned Marina parkway (west) and the proposed "H" Street extension (south); and WHEREAS, an Initial Study (IS-99-21) was completed for this project which resulted in a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program; and WHEREAS, the RA includes Agency and Port financial assistance to BFG as incentives to consolidate their operations, modernize their plant and equipment, and assist in funding the environmental evaluation and ultimately the clean-up of their property south of "H" Street ("South Campus"); and WHEREAS, in addition to the financial assistance, the project also contemplated the sale and transfer of the Agency's Bay Boulevard properties (350-360 Bay Boulevard) and the privately owned Rados Companies property (798 "F" Street) to BFG; and WHEREAS, the RA was approved by the both City/Agency and by the Port District on July 13, however, since then, at the direction of the Port Commission, a Phase II analysis has been conducted with respect to the South Campus; and WHEREAS, in light of the extent of contamination found, the Port has required that certain provisions of the RA be amended and city/Agency approval of the proposed Amendment is needed. 1 3b-3 NOW, THEREFORE, BE IT RESOLVED the city council/ Redevelopment Agency of the city of Chula Vista does hereby approve an Amendment to the Relocation Agreement between the City/Agency, BFGoodrich Aerospace Aerostructures Group, and the San Diego Unified Port District, in a form approved by the City/Agency Attorney, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER authorized and directed city of Chula vista. RESOLVED that the Mayor/Chairman is hereby to execute said Amendment on behalf of the Presented by Approved as to form by ChriS~~(;~&1e ~Jm~um~ Development Director H:\home\attorney\reso\BFGAmend.Ra 2 3b-4 10/ 2i ;99 14: 39 FAX 619 686 629i SDUPD REAL ESTATE aps. ""'-J vv_ Ii"1-t ~ '-'-""" "--"-l EXHIBIT A D San Diego Unified Port District AGENDA SHEET RECEIVED OCT 2 6 1999 - POFlT OISUNIFIED IlEAL TRier ESTATE OPERATIONS Page 1 of 5 DATE: October 26, 1999 SUBJECT: BFGOODRICH/ROHR - PROPERTY TRANSACTIONS EXECUTIVE SUMMARY: The Port has been negotiating a Relocation Agreement lRAl since March of 1998 with Rohr Industries, Inc., a California corporation, operating as BFGoodrich Aerospace Aerostructures Group lBFG). and the Redevelopment Agency of the City of Chula Vista (alsO known as the Community Development Department [COD]). The RA provides for: 1 1 the exchange of tidelands for BFG properties; 21 compensation by the Port to BFG as additional consideration for the transaction; 3) compensation to the COD for its acquisition and remediation of additional uplands properties and their transfer to BFG; 41 a Port loan to the COD to reimburse BFG for property tax increments based upon the relocation of facilities and to assure no decrease in tax revenues on properties acquired by the Port; 51 commitment by the Port of up to $2,800,000 for remediation of South Campus; and 6) commitment by the Port to have H Street extended and Marina Parkway realigned at no cost to BFG or COD, as well as additional ancillary requirements. The closing of the transactions proposed in the RA is contingent upon: 1) Board approval, at its sole discretion, of the Phase II site characterization; and 2) appro....al by the State Lands Commission. Thirteen Million Five Hundred Fifty-six Thousand Dollars ($13,556,0001 has been identified in the Capital Development Program for this project. EXECUTIVE D1RE_~TOR'S RECOMMENDATION: 1), Receive a briefing on the Phase II site characterization and: 21. Authorize staff to continue with the implementation of the RA provided that the Agreement be revised so that: .. ACTION TAKEN: UPD FORM NO. 021 C (7/961 3b-5 10:27.99 l~:~U tA~ Cl~ coc C~~I .::.ULI"...... 1'\....;1.L L-'.............. .....,..... Agenda Sheet Page 2 of 5 o SUBJECT: BFGOODRICH/ROHR - PROPERTY TRANSACTIONS A. BFGoodrich, Inc. (BFG's parent company) provide a guarantee of Rohr's financial obligations and performance under the RA in a form acceptable to the Executive Director and Port Attorney, .;.. B. The Port and BFG shall have equal control of all remediation investigations and activities. The resolution of any disputes shall pe by the means in the RA, C. For redevelopment and remediation of the South Campus: i) Permanent dewatering shall not be permitted as a pan: of redevelopment. ii) Onslte incineration shall not be allowed for remediation purposes. )f iii} Responsive compliance to regulatory agency directives shall be required. 3.\ Authorize staff to submit the transaction to the State Lands Commission ISLC} for inclusion on the December 3, 1999, SLC agenda. 4.} Report back to the Board at its November 16, 1999, meeting on the status of the above conditions. FACTUAL BACKGROUND: For several years, the Pon: and BFG have been discussing the potential benefits of exchangins.... selected land parcels, which would result in more functional landholdings for both parties. The proposed RA provides for the transfer of approximately 22.84 acres of tidelands and recently acquired SDG&E transmission corridor property to BFG, the transfer of approximately 35.94 acres from BFG to the Pon:, the transfer of 3.62 acres currently owned by COO and 3.03 acres to be acquired by COD to BFG, the extension of H Sueet to Marina Parkway and the '" realignment of Marina Parkway. The final result for the pon: is the consolidation of a parcel of approximately 83,12-acres with direct access from the J Street and H Street interchanges from Interstate 5 with high freeway visibilitY, and improved circulation and access for all tidelands on the Chuta Vista Bayfront. On July 13, 1999, the Board directed staff to conduct a full Phase II Site Investigation of the South Campus. Staff retained the consultant services of 3b-6 10/ 2i,. 99 14: 40 FAX 619 686 629i SDUPD REAL ESTATE OPS. 19j UU i< Agenda Sheet Page 3 of 5 D SUBJECT: BFGOODRICH/ROHR - PROPERTY TRANSACTIONS SECOR International. Inc., to conduct the Phase II site investigation with the purpose of identifying po'ten'tial sources of environmental impact in soil and groundwater. An initial groundwa'ter investigation (shallow, less than 20 fee't below ground surface) and an additional groundwater investigation (to a maximum depth of 100 fee't below ground surface) were conducted. Environmental Review: The Ci'ry of Chula Vista is acting as the lead Agency in performing the environmental review required by CEQA. The City adopted the Mitigated Negative Declaration at its regularly scheduled meeting on July 13, 1999. Treasurer's Certificate; Funds are available in 'the amount of $13.556,000 (Treasurer's Certificate No. 99-169). Fiscal Impact: The allocated funding pursuant to the Capital Development Plan ICV 1704 GCl is $13,556,000, which will be sufficient for the acquisition of properties and a majority of the initial stages of the projec't. Although 'there will be additional cash available following the initial exchange of properties, it will not be sufficient to completely take the project to a remediated, ready to build site. Further funding in the amount of $7,963,291 will need to be identified for 'the fu'tUre relocation of Marina . Parkway, extension of H Street, demolition of existing structures, remediation expense, reimbursement of property 'taxes, and a contingency factor. The reimbursement of property taxes, in the form of a loan to the COD, is projected !.-Q..be repaid. One an'ticipated source of the additional cash requirements of 'the projec't is the prospec'tive developer for the si'te. A second source is 'the remaining Chula Vista MOU/CIP which has an approximate balance of $12,997,000. (Note: $1,500,000 of this balance has been lent to another Port CIP projec't and is repayable in 2005. Furthermore, $3,400,000 of this balance is allocated 'to 'the realignment of 'the access channel 'to Chula Vls'ta marinas.) 3b-7 10.'2i.'99 U:41 FAX 619 686 629i SDCPD REAL b'"~"b u~,. Agenda Sheet Page 4 of 5 u SUBJECT: BFGOODRICH/ROHR - PROPERTY TRANSACTIONS ANALYSIS: The final five-volume Phase 11 investigation report prepared by SECOR for the Port was submitted to the Board on October 25, 1999. The investigation has documented significant areas of contamination in the soil and shallow and deep groundwater both on and adjacent to the South Campus. SECOR concluded that substantial soil and groundwater remediation will be required at the site. However, according to SECOR. the remediation issues are manageable and 100% of the South Campus should be eventually developable. Under separate cover, SECOR prepared a remediation cost analysis. In this analysis. SECOR provided reasonable minimum cost and maximum cost remediation scenarios estimating the cost for cleanup to be between $6.5 and $13.3 million. These scenarios exclude the application of the most stringent regulatory standards in which case remediation costs may be 2 to 3 times higher. This estimate is based on the currently available information and is greater than the estimates represented to us by BFG's consultant. The removal of structures will likely reveal additional areas of contamination.. Therefore, the additional financial strength of Rohr's parent company. BFGoodrich. Inc., is recommended to guarantee their obligation under the RA. A letter requesting a corporate guarantee has been delivered to BFGoodrich. Inc. Major Points of the proposed transaction requiring final review include: . The Port conducted a full environmental site investigation as directed by the Board on July 13, 1999. The site investigation has been completed and the Executive Summary of the Phase II investigation report is attached as Attachment A. . The Port and BFG are in joint pursuit of a "risk-based" approach to remediation of the South Campus to industrial use standards as defined in the Port Master Plan. Based upon current cost estimates provided by SECOR, it appears BFG will fully control the site remediation in accordance to the current remediation control formula in the RA. However, SECOR also agrees (see Attachment BI .". " that, withom greater control being delegated to the Port. the Port's ability to coordinate the remediation of the site with a development plan is limited. Due to the high level of contamination disclosed by the Phase II, staff recommends the Board direct staff to negotiate with BFG an amendment to the RA that provides that all remediation decisions, investigations. and activities be equally shared by the Port and BFG. 3b-8 ----10,'2;,99 H:41 FAX 6196>6629; SDcPD REAL ESTATE u~" Agenda Sheet Page 5 of 5 o SUBJECT: BFGOODRlCH/ROHR - PROPERTY TRANSACTIONS . The Environmental Health Coalition has recommended that no permanent dewatering or onsite soil incineration be permitted. SLC, pursuant to Section 30.5 of the port Act, must approve any capital expenditure over $, ,000,000 on lands not under the ownership of the port. Staff has met several times with SLC staff on this matter and has reported the nature and specifics of these discussions. The SLC staff has expressed concerns over some parts of this transaction. They have indicated they have concerns about the transfer of the 1.67 acre triangular piece of Port property at G Street to Rohr (see Attachment Cl. They believe this property is valuable since it is nearer to the bay and that is has environmental habitat values. Should the Board decide to authorize staff to submit this transaction to the SLC for its review and approval as staff is recommending, the Board is doing so based upon the finding that this transaction is in furtherance of the Port's trust purpose for the following reasons; , . It promotes commerce and recreation on Pan: lands through the unified redevelopment of the new parcel; 2. It will increase public access to the Bay and Bayfront lands through the H Street extension; 3. It will allow the Board the opportunity to use the new parcel for the purpose described in Section 87, paragraphs (All through 7 and (Cl of the Port Act (Attachment Dl Equal Opportunity Program: Not applicable, PREPARED BY: L. THOMAS MORGAN Senior Director, Real Estate Operations DAN E. WILKENS Senior Director. Strategic Planning Services 3b-9 10; 27; 99 14: 41 FAX 619 686 6297 SDUPD REAL ESTATE o~,. EXHIBIT B S,\.'< D1EC;O t::'lIFIED PORT DISTRICT OFGoodrich F2Cilily (nvc.llll.licn EXECUTIVE SUMMARY Intl"odu~tion This E;l:ecutive Summary presents the findings and results of the due diligence studies performed by SECOR [ntemationallncorporaled (SECOR) on the South Campus portion of the BFGoodrich Aerospace Acrostructures. Group (BFG) Facility (formc:rly known as the Rom, Inc. facility) localed in Chula Vist:l, California. These StUdies were performed at the request of the San Diego Unified Port District (Port). The South Campus comprises 59 acres and is bounded on the north by the extension of H Street through me; BFG facility, by Bay Boulevard and eommercial facilities on the east, on me soUth by Marina. Parkway, and on the west by Marina. Parkway and the Port leasehold vacant land (sa: Figure U). The Site exeludes me San Diego Gas & Electric power line easement. This study was performed at the request of the Board of Coromissi~ of the Port of San Diego (Commissioners) as part of due diligence efforts in the proc:urement of the South Campus with. the purpose of idaitii'ying pob:ntial sources of enviIonmectal impact md eharacterizing eh=ic:al impacts in soil and groUlldwatcr. The scope of due diligence studies consisted of two distinct phases. Phase I investigation activities included an evaluaticm of potential environmental concans based on histcric site operations. Based on the findings of Phase I studies, Phase n investigations were performed, consisting of intrusive sampling of soil and groUlldwa!l:r, to eva1ualc the potcntia1 for chemic:all"eleas.es to the environment. The Phase II investigation was implemented in twos.cparate in=;tigadons, me initial (shallow, less !ban 20 feet below groUDd surface [bgsD Pba.se II Investigation and the additional (to maximum depth of 100 feet bgs) Phase II investigation. Phase I Activities The Phase I investigation consisted of the following general activities: I. Review of ~ maps and otber =rds provided by BFG; 2. Rc;vi~ of available aerial photclgrapbs contained in the files of =ereia1 and public aerial photcl baIlks;--' ,), Review of records, including pc:rmits for ehemical storage and eantainment vessels, unauthoriz..~ release reports, and other document:ltion in files maintolined by the City of Cnula VlSllI. COUDty of SaD Diego, Califomia Regional Wate:l" Quality CantIOl Boan! (CRWQCB) San Diego Region, Air Quality Management Distriet. and the Depamnmt of Toxic Subs<3n= ContIOI (DTSC); and 4. Reconnaissance of the South Campus with BFG and itS eonsultlnts. ERM West and URS Greim:rJWoodward Oyde (URSGWC). Consistent with agreementS bc:t">leen the Port md BFG, SECOR did tiot inter'oriew any regula.tory agency personnel Or any current c:r fonner fucility =1=I1oyees lIlith reg:u'd to environmental SECOR I",ern,"lon211"carpal"'''od 3b -10 t ATTACHMENT A 10'-2i,99 1-1:.12 FAX 619 6b6 629i SD1PD REAL ESTATE OfS. quvuu S.\.~ DIEGO V"tfIED PORT DISTRICT BFGooddch FacililY lnvc.cl~>lion ht:5torj Qr l:omplji1nce Issues, WIth d'H~ ex.c::eption of Dr. 8. A. Wendy longley-Cook. Director, Environmental He:r.lch & Safety, and Mr. RIck Siordia. Envlronmenral Engineer Specialist. Environmental AtTairs. of the BfG Environmental Heath & Safety Department. In addition. SECOR did not review any informacion contained in BfG files that Were considered to be of a confidential nature. Pbase [ Results Since development in the early 1940s. the South Campus has been used for the manufacturing and assembly of aerospace parts. During Viorld Wax II, seaplanes were maintained and repaired on che South Campus. South Campus o~ons currently eonsist of the fabrication of =ospace parts, including <:ngine parts and covm. which involves metal cutting, punching, ~ching md fabricating some of which include using zinc and lead molds. Very little information is available relative to South Campus operations, chemical stOrage and usage, and waste stOrage and disposal practices prior to the 1980s. Consequemly, the evaluation ofpoll:ntial environmental con= is heavily biased toW1lld the last 20 years of operation. Nwnerous polenlia.l so= of e:nviromnental cancan wm: identified during Phase I investigation activities. These potmtial so=es included process lines, sewers, sumps, cbins, STOrm sew=, tmks, storage vessels, equipme:nt vaults, waste trCltment and storage =, documcnr::d chemical release areas and pc:rmit violations. As a result of the findings, the Port and BFG pn:lject te:alDS' ~loped a work plm1to. investigate the polCltial impact many of these potential sources on subsurface media. InitiaJ Pbase II Activities The initial scope of Phase IT investigations was developed to address potential SOlm:e areas and did not focus on evaluating each potential so=e of chemical impact Consequently, the scope of the investigation work was optimized to minimize the number of borings eompleted for the initial Phase IT investigation by mar::gically locating borings tll address multiple polCltial so= of impact The initial scope of~ IT inVl:Sl:igaticms r.nnci""",,, of the fonowIng general activities: L Analysis ofapproximatl:ly 210 soil samples from 1S!Hleoprobe md hand auger boreholes; 2. Analysis of apprtlximatl::ly 147 groundwater samples, 3 samples from existing monitllring wells and 144 samples using Hydropunch or piezometer sampling techniques; ). E:<cavation and sampling of 6 exploratoty trenches to l:V:1.!u.ate: <he physical characteristics of dredge ma~s; 4. Analysi.s of two ....rpe samples tll evaluate: the pr=:tlCe of pol~h1oric:ata! bipheayls (PCBs) on concrete pads or containment v-aults; me! 5. .~alysis of soil and groundwaCl:l' samples for PCBs. volatile organic compounds ('IOCS), semi-vol:r.tile organic compounds (SVOCs), heavy meClls, cyanide. total recov.:ra.ble petrOleum hydrocarbons (TIU'H). and/or pRo SECOR (nterna<lol1allne".""nted 3b - 11 n l~' 2i ,9? __1.i~_!~_JAX~6&6 629i SDCPD REAL I:.S1Alt. Ui:'~. ,,,",," DIEGO L':-IlflED PORr DISTRICT lJF(;oourich FJ.dlicy (nve:'lt1e:;atian Du~ to ongoIng facility op~ratlons, sOli samples were not collected bolow many potential sources In order to aVOId Interfering lIIith faciliry operations or compromising the integriry of containment anJ spill prevention strlJeturos, In these cases, borings were advanced as close as reasonably pOSSIble to pocential source StrUctures_ Also, limited information lIIas collected from B,"ilding 45 d,"e to the presence of subsurface historical sea walls and rip rap shorelines that appear to exist below the floor slab in the process line areas. lnvestigacive borings and sample collection were not performed in the wastewater Pretreatment Area due to the potential for disrupting or compromising the integrity of spill eontainment strUcturcs. Both the Pretreatment Axea and Building 45 = areas where visual and ~c assessment data indicate numerous potential or 1cnown source: areas of chc:rnical impact wst. In addition, five: of the original se:ven areas designated for PCB wipe samples were eliminated from thc sampling plan asa result of subsequent site inspections. It was determined that intruSive: investigatiollS in these areas will be nec:cssary at the time of fal:ilir>- demolition. Initial Phase n Results The = portion of the South Campus is situated on imported fill mataial, marine bay and "es1uary deposits, and other alluvial dep0siT3 from inland drainage. The western portion of the South Campus is situated primarily on impar!l:d fill material comprised prcdominandy of clay. silt and silty sand. Figure: 1.2 illustrates the location of tile shoreline at tile time tile Rohr facility was developed in the early 1940s. This shoreline rq=sents tile separation between tile ~ and wc:stm:l portions afthe Site. ' The Soutll Campus is located within tile Lower Subunit of the Sweetwater Hydrologic Unit.. Groundwater below the Soutll Campus is dc;ignated as a municipal beneficial usc aquifer. Bascd on historical aerial photographs. a drainage: cb:umcl traversed the South Campus in the vicinity of the southern half of Building 3. and the Pretlc:atmc:nt Area prior to development. The result! of the imtia1 Phase: II invc:st:igation identified various chc::micals of concern (COCS) inl;luding YOCs, PCBs and TRPH ia sballow soil and grotmdwarer beneath the: South Campus. Cadmium. chromium, lIiekl:l. and !c:ad wac also ~ in soillll1d groundwater IIl1d appear to be mast prevalent in the Buildiag 4S Cl:a ~ present and historic use: of these materials '1"= noted. YOCs, specilic:ally chlorinated solven~, w= the most widely repomed COCS in soil and groundwater_ Samples coUec:ted in scven\Iocations beneath the no(!ban portion of Building 45, cast of Building 42, and the southwest comer of Building 3 also sugg.:st the presence of dense non-""lueous pb2se liquids (DNAPL) below the grotmdwater surface. ..; .- PCBs in soil and groUlldwa!e:r Wl:l'I: identified near histOric storm ""'!e:r outf3l1s in rhe Che:rnical Stores. Building 45, Pr-etreannent, and Building 42 areas. Two wtpc: samples from a hydraulic equipment vault and a =former pad identified 10\1( concClltrations of PCBs. Field obSCIV:ldons during drilling of si."l: borings also suggest the potential presence of phase- s"llll[':trcd pea-olewn hydroc~ons. or light rton-aqueous pluse liquids (LNAPL.) in tfIe Chen1ic:al m SECOR. In,.rn:>t1ull21Idco'1'oralecl 3b -12 F X 619 61>6 629i lO/2i~~.:~ . SDllPD REAL E~L>\lt. Ut-,:,. SA," DIEGO [;:,/lfIED PORT DISTRICT BFGnn<lrich Facility In..,llC~lion Stores Are:t. BUlldmg 30, BUIlding 45, Pretreatment Area. Salvage Yard and the M:tterial Hand! in~ Tool Y>rd. Additional Phase (I (Ofr-Site and Deep) [ovestigation Due to the presence of COCs reported in soil and groundwater during the initial Phase IT activities, a seeond phase of intrusive investigations was eonducted to evaluate possible chemical impact off-sir., and in groundwater. The scope of this investigation was presented to and approved by the Commissioners. as well as BFG. The scope of this phase of investigation consisted of the following general activities" 1\ L 21 CPT soundings to depths between 80 and lOa feet below ground surface (bgs) in llIld around the South Campus lD delineate subsurface stratigraphy; 2. Static pore pressure dissipation m=cnts using me piC:ZOCDtle (CPT 8(,~(,,!~) to cvaluate hydraulic hold at various depth incrementS in the satlJra.ted zone; 3. Four Geoprobe borings to depths betwCCl IS and 20 feet bgs and. collectiOll. of soil samples (reclaimed dcm~ filllllld cative deposits) and groundwab:r samples at nrious depths in the subsurface: profile; 4. 21 CPT borings to depths betw= 80 and 100 feet in and around the South Campus for the purpose of collecting soil samples (m:laimcd dcm~ fill and native deposits) and 3 to 6 grolllldwau:r samples from nrious depths in each CPT boring; S. Analysis of 35 soil samples for VlIrious analytes including VOCs, metals, petrolelllIl hydroca:rbons, SVOCs and PCBs; and 6. Ana.\ysis of 108 groundwater samples for various analytcs including VOCs, metals, SVOCs, PCBs, general minerals, lDlaI dissolycd solids and other am:nuatiCIU param~. The additional Phase D barings Wl:l1; adval=d dDwngtadic:nt fram on-Dtc lIl'C3S of wba-c VQC can!:>mmal'iQll was dct=:tI:d in sbaRow groundwall:r in an attempt II:l charaaaize the Iateralmd vertical extent oCYOC ccmb,.,m..tiotl polc1tially associated with the;e lIfQS. : Additional Phzse II Results Data collected from five borings in the additional Phase IT indicate that VOCs, primarily lricblorocthcne (ICE), aist at depths oC at 1= 80 lD lOa fe=:t bgs. The collected data also indi= thaI VOCs =d wcsb:rly beyond the South Campus ~,ur-..ty Ime in =issive (smdy) zones below tile groUl1dwa= table.. SECOR t..'ernal:lon2J ta.c.."......led 3b - 13 tv ~12i,'99 14.:43 FAX 619 686 629i SDUPD REAL ESTAlt. un. 'i.\.' DIECO (;:'< (FlED PORT DISTRICT UF(;nfldrlch F:,ll:ili(y rll"cstl~illion Conclusions Tho d.t. ~olloctod dunng tho Phase [ and Phase [[ Investigations descnbed herem Indicate that cac; are present 5011 and groundwater on the South Campus. The COCs in soil appear to be confined primarily to the area immediately around and below source areas. This conclusion is supportcd by generally low COC detections in samples collected adjacent [0 potential soUree areas. AS a result of con.mints posed by ongoing facility operations, soil sampling could not be performed directly below many potential sources without adversely interfering with site operations or jeop.u-dizing the integrity of containment. As a result, additional unrecognized soW'ce areas may exist on the subject site. below presently inaccessible locations. Additional characterization and mitigation of coes in \oil below source areas will be more efficienUyand effectively pcTformed during or after facility demolition. With the exeeption of VOCs and posstole DNAPL and petroleum hydroc.arbon NAPL (free floaring product), COCS in grolIlldwata appear to be con1ined to the area of the rel=, VOCs, however, are more mobile in the sarorated ZDDe. VOCS tend to migrate vertically below so= areas and then laterally in tmISlllis.sive ZOlles at depth. VOCs of 'llaI)'ing concentn.tillIlS, primarily TeE, are present beneath the site. VOCs appear to exteod deeper than 100 feet bencuh some =:as of the South Campus and extend do'<llngradient beycod the west prapc:ny line. Additional investigation will be n=sary to ch:imcterize the lateral and vertical extent of VOCS in groundwater both on and off site, With proper coordination of mitigative actillIlS and site development plans, SECOR believes that 100 per.:ent of the South Campus is eventually developable; howeve:r, =cdiatioll of COCs in soil s.nd groUlldwata beneath the South Campus will be necessary prior to and continue beyOlld Site development, Remedial requirements will likely affect the timing and cost of development of various areas of the South Campus. The ultimate affe<:t remediation has en development will depend on the remedial alternative selected and c:pedicncy aI wbich rcmediatin" i. impl*<nentcoi. To ttJlS end, me selection and implementatiOll of remedial actions must be eoordinated with development plans to assure that 1) development plans ~ compatible with site conditiOllS, and 2) the riming and completion of=~ial actions are eoDSi.sr=t with development goals. It is likely that r=rictiOllS will be placed OIl tb:: dewlopment of e=ain =as e:tInoiting elevated levels of c:ont:rmm.tiOll, such as mas of idctltified NAPL. The pl=tial for such =trictillIlS are =gaizcd in lhe_R=locatiOll Agr=ent bet-;l.e-u the Port and BFG. The limits of ' such restriCtillIlS will be determined throughout Site CbaracterizatiOll and demolition activities and should be eon.s:idered temporary until such time as the potential hc:alth or ecologieal risks are mitigated to the satisfaction of the regulaIory agencies. Again. the ultimate duration of development restrictions will depend on the expediency and effectiveness of remetlial activities impletnented. As previously stated., remediation of soil and groundwaD:!' will be lloees5ary. Sueh remedial actions should be addr=ed using risk-based ele:m~ criteria !hat are protective of ecological receptors (beneficial use of the San Diego Bay and the groundwater of the San Diego Formation) and hwnan holth (consll"lCtion worlcm. futUre Site excupants:lrld occupants or = ofadjaecnt properties). Risk-based remedial objectives. the selection of remedial alternative, and the subsequent remedial action implement:>J:ion will be derived :>nd implemented with input and SECOR talerudoaallncarpor.>lod 3b -14 v 10/27/99 14: 43 FAX 619 6S6 6297 SDUPD REAL ESTATE OPS. ~U.l._ SA.'\I DIEGO UNIFIED PORi DISTRICT BI'Goodrieh facilIty Invesllgalion approval from regulatory agencies. The scope of remedial ac,ions will be based on the findings of additional clara collected during future Site investigations, Site demolition, Site development. fate and transport modeling, risk invcstigation, and the outcome of on-going negotiations for redesignation of groundwater beneficial use. In recognition of the presence of chemicals in soil and groundwater, the implementation of special hC3.1th and safety, as well as construction protocols (e.g. dewatering, grading, foundation consll'UCtion and utility installation) will be necessary to prevo:nl exposures Of releases of chanicals during development. The successful development of the South Campus will require the careful coordination of deotelopment ,d construction plans with identified environmental conditions and remedial actions. .... . 3b - 15 SECOR lA_dollal [aco'1"'ntnl V1 10/2;/99 14:44 FAXBL686 629; SDUPD REAL ESTATE op,. '"t::.J ~.....~ SECOR Mr. Dennis Bouey El<eeuti-e Director. Port of S:!lI Diego 3 t 65 Pacific Highway P.O. Box 120488 Saa Diego, Ca. 92112-0488 RECEIVED OCT 2 7 1999 '''I,-''l/rl//l''I/1/ 111""17"1"("'-,: October :5, 1999 RECEIVED OCT 2 6 1999 SA.N DIEGO UNIFIED !":1m DISTRICT - Al EST A"T"f OP':RAT)QN~ San Diego Unltl6d POrT. Ol5trlCl E.loC,lnve Ot1ICil~ - !=lEO Subject:: Review ofI\l:ms ofPO\l:ntial Environmental Concern BFGoodri~h Port of S311 Diego ;Propeny Reloeatioll Agreement De;u Mr. Bouey: As lUl.uested during our meeting of October 22, 1999, I am forwaniWg my coaunenlS COllc:emiDg the r=gnizcd- envirODl'llelltoll issues re1aI=l1l:l lbe proposc:d BFGoodricbl Port of SaD Diego prcpetty Rdocal:iOD Agr=e:nL "Ibc:se commClts 1IR based 011 my ~ of c::qJCriCllCO dealing with prcpetty ~~~"DS that involve euviroDlllCltll issues, cIircct knowledge of the BFGoodrich property. =ic:w of lbe August 5. 1999 }l.docatioll AgreemeoJ: (Agr=nellt). and discussioas' with Port of San Diego staff To quickly RSt;l1e our findings tg dan:. it is dear that !be e:nviroDmcmal collditioD of the property is manageable to [Older tbe property in a. developable condition J&r appropri.:ue remedia1ion is complete. OUr initial-reasoll3.ble remedial scenarios have placed tbe esr;....t.,j cost bc:twc::n:l:S6 MM Il:I :l:S13.5 MM. The probability thaI costS could inaease is c:a1ainly higher that thc probability that tbey will de=ase. R=c:dial ~iremeuts will afi"c::t the timing and CCS% of dcvelopmClt of various = of South Campus. To this aid. lbe selection and implementation of re.media.l actions must be coo.,;i,,"o-ti with development plans to = that 1) site conditions an: rem""';''''''' tg be compalible with dcvelopmeDt p13llS. and 2) the timing and completion of remed.ia1 actions are eonsis=t with development goals. My Don-legal technical ",view of this doc:umeDt has identified the following an:as of oon=: . Cantrol and timing of remcdia.l a.cliollS. aod . Interpretation of tbe clement, or condition of tbe tenni:Wion of the fiDaD~ia1 obligations of BFG and the Port. Control and Tunill2 }.s tbe Agreement stands.. !he Port has very little ~ontro' over remedial aJ:tivities. }.s relayed to you earlier, conuol and maJIallemcnt an: essential to c=i that the Port'S objeetives of eleanup and the timing of dClllup ",Iative to development are reached. 'As written in Sectioll 7.1. 7 of !he Agrcement, development of remedial activiuC$ will be a. joint del;.ision betWccn tbe Port and BFG irrespective of cost. However. Section 7.3-1(a) = -BFG shall man.::llle Sou!h Ca.mous Environmental Activities".s"I"hi5 assignment of con=1 docs not change as I r=d Ii>e document ""d.... ~ cooditioll until remcdation is complete:. independent ofcDSt. Section 7.3.1(1) = th:1t !he Port =y seleet the ",medilll activity wben thc cost is under S5.6 MM. jointly between S5.6 :Illd $7 MM and not ;u ~] :>.bove $7 MM. But tha.t ability only appliC$ if all four f!he develo ment condition Set rth in Scetio 7.3 i to iv of the above eaion a Iv. The most lmporunt eondition is (iv) tl\;lt sotes -!he BFG seleetcd [not BFG/Port selected"} remedial activity by itself m.:1teri:J.!ly :>.dyersely o.ff= implement:l[ion of the devclopment pl~". The origin:ll J.N. Q 1".C.7~91.00j 3b -16 ATTACHMENT B ---19~2i/99 14:44 FAX 619 686 629i SDlPD REAL ESTATE OPS. lf1jOH .\d( Dt:nnl3 Sou..:,! E..ooutl"O D"oo[or_ Part of San Diogo October 25, 199q P~ge 2 =>ssumption of oon[(ol ~t dofinod cost levels and shared management may never apply. If conditioQ Ov) ~pplic:s, Port control will be partially or completely lost since the projected low end of the cleanup cast is estimated at more than S6 MM. The potential consequences of a BFG selected and managed remedial alternative could be an increase in the time required to complete clean up due to BFG's exprcssed desire to pursue long term remedies Such alternatives may conflict with the development plans and schedule aDd the requiremcnts of the public or regulatory agencies. Clearly, the BFG desired remedial approach is to reduce cast by risk assessment and "c;uye out" portioas of the prol?erty where high levels of contamination exist. This approach may reduce remediation costs, but will affect the development schedule especially in "carve out'" 3..f'Cl.S. Section 7.4.1(0.) stateS, "BFG sbaU have sole ma.nagemCllt re:spoasibilities and rights to determine type of and need far mncdiaJ action of the Port transferred panxlsft. 'The Port!hou.ld be clearly a~ of this condition giving full control to BFG. h.y required remediation oftbesc pazccls (as dclcnnined by BPG) is lIot CXlverc:d by the cost sharing Agreement, and is the sole =J)OlIsibility of the Port. Termination orFinlU1eial ObUllltions The Relocation Agn:::cnent lists a number of conclitiol1S thaI nigger termination of BfG's fi=cial '. obligatioas. Most importaDt is the "IS year cut off" and the "first time development" clause. Givco _ this time limit, the Port should ensure thaI the ~in:d investigations and demolition inspections m~ sufficiently thorough to icletltify all suspected 50= of coD"'mi""tion to = the cost of ~ mnedial a.diOIl is covered under the scope of the cost sharing Agreement. Obviously, it is in BFG's iIlte= to limit di=very. 'The scope of these investigatioas will become a point of ~eIIt between the BFG a.od the Port. In addition, prospective teoancs will most likely c;.gl1duc:t inciepeadeut investigations (phase I and m that may uncover envirol1lllenta.! issues after demolition that could delay development Under Section 1.2.4, the Port appears to he responsible for all remedial cost! associated with tho dredge fill. There have been numerOU! infereaccs by BFG STafF that the cOntamil1atioa identified in the; westen:! portiOQ of South Campus is from the dredge fill On the POlt property. To associate the Q;lnwniDarion with the drcdge fill will be to decrease BFGs liability and in=ethe Port's liability. Conclusion In conclusion, the 1aaguage of the QlrrelIt Agm:mCllt doc:3 lIot provide adequate control of n!medial actio as or protection of the Port's financial inte= in the development of this property. f- I cae provide further detail on =b of these issues, including =mples, if desired. You = =h me a.[ (909) 33S~ 116 if the~ ~ :Illy questiol1!. Respectfully, t __ SECOR Interua~ ~~J Kyle D. Emerson, C..E.G. S.:nior Vice President J.~. iJ(,Q749LCC:l 3b - 17 ATTACHMENT B ~::.?~~4:.45 FAX 6~~6 6~9i . . SVl,rl) Ht..-\.L J:SIATE OPS. l.gJ Ul<:l CHULA VISTA PARCEL 1 The Port of San Diego 1 ~ \., \ .,,,,-,,: "'.... '.\ -a.. .'-. ""{IV \\ . "~ '. '\ .~\ .....,2 VG'L. \ -', . ~'0'6' . 7 1; ,..... ..... .~o. '0(' \ '-' ; \ -., (/A. \, 1 ""~l ..\~ \ .... . . \~ \, i ~i \~, " I 0). \....... '~ ~i : : ~ _.J L.._.._.._.._",._~ '''>61. 303.15' <( G STREET ~ 3= a::~ '\ <(a:: 1 ~ 0: . . - - ( ~ AtJ,4.......~ G Street & Marina Parkway , Land Area: 72,736 s.t. P"".llltted Uses: Industrial I Marine Related DescrIptIon of I~vements: 4' chain link fence along south and west ends at parcel. Th. c'WCIIIC!blllty of tn.. p"op_rty. land cr_a .Izas C1nd lmproWllTlClnu ar. &Ibject to d\onge. 3b -18 ~.:.~J' 99 1.-1:: -1;) l-A2l. IHtl t::i~ti t.>..~. SDLYU h~AL t~lAlb UY~. ~ 83. USE OF FUND FOR AQUISITION AND MAINTENANCE OF IMPROVEMENTS, WORKS AND FACILITIES, ETe. Th.:: mene:-- in the fund m01~ 3/50 be used for the ::I.c'IlJisition. constn.l.I:lion. completion and m,Jinten.J.m:;c ofhilrbor .J.nd pon. improvementS. Wo'orks. utilities, appliances. facilicies. and "esse Is. for the promotion and accommo&ition of commerce, na~igation and fisheries, and recreation. or uses in connection there",ith: and for e:ttI'1lordinary improvements and berterments to lands and property under the control, supervision and man.gement of the distric::t. including the purchase or condemnation of necessary lands and other propc:rt)' and property rights. i 84. USE OF FUND FOR BOND AND INTEREST PAYMENTS AND FOR ESTABLISHMENT OF FUNDS TO SECURE SUCH PAYMENTS. The money in the fund may\lso be used for the payment of me principal, or intere;t, or both, of disvict bonds authorized, issued and sold pursuant to this act and for the establishment and malnllOnance of bond s.ervice IUnds, sinking funds. reserve funds or otber funds or accounts established to = the p8yl!lent of principal of, inte~ on, orRdemptioa of or for the security of'such bonds. (Amended 1963) ~ 85. USE OF FUND FOR PAYMENT OF PRINCIPAL AND. .INTEREST ..Of. c OUTSTANDING MUNICIPAL BONDS FOR HARBOR IMPROVEMENTS. . The money ill t!Ie fimd may also be used for the psyIlIent of the principal or inte=i, ~ both, of the bonds of the c.ouniy or any city in the distric:t, tor harbor improvementi;.. authorized or outmnding prior to the establishment of'tIle di$tlicr, or thereafter issued aDd sold by such COUllty or city for harber improvements pur.;uant to this act. i 86. TRANSFER OF AMOUNTS BETWEEN BUDGET ITEMS AND BETWEEN. BOND FUNDS. The elteeutive director may make application in writing to the board for a llanSfer of amounts from one appropriated item to another ill the budget allowance. On the approval of the board by a twO-thirtls vote, the auditor shall malte the tl'allSfer. but a trall5fcr shall not be made cxc..oopt as h~in provided. MY tralISfer of' bond or note pn:ceccls or of bond or JI(lte service, reserve, or sinking funds shall be made only as provided in the proceedings authorizing the issuance of those bonds. (Amended 1963. 1996) . . t 87. PURPOSES FOR USE OF nDE AND SUBMERGED LANDS HELD IN TRUST _ BY DISIRICT. .- (a) The tide and submerged lands conveyed to the district by any city included inllle district shall be held by the district and its suceesso~ in trUSt and may be used for plUpClses in .....hich the~ is a general statewide purpose.. as follows: (l) For thc establishment, improvement, and conduct of a harbor, and for me conmuctiOIl. =~Oll. .r. maln~ and opel'"8tions ofwharvo:s, docks, piers, slips. quays, and all ocbc:r works. buildinlS- facilities, utilitio:s, SIlUclUrU, and applian= incidental. necessary, or convc:nicnr, for the promotion and accommodation of commerce and naviSJ-tion. ATTACHMENT 0 3b -19 10/27.99 1~:~5 FAX 619 6&6 6~97 SDlPU K~AL ESTA1E U~~. ':1 r.;r Jil ::lmmerclal and rnJu~t:":Jl '..1se~ Jnd purposes. and tile :O/"lstruc:tlon. rC::COI1strUC::lcn, repair. and m.1lntenanc!: ar c:omlnerclal and industrlai bualdings. pjJ.n~s. Jl1d facilities. (J) For lhe eSlJblishmenl, improvemerll. and conduct of airport and heliport or aviation Facilities. including, but not limited lO, approach. takeoff, and clear zones in connection with airport runways. and for the constnlction, reconstrUction, repair, maintenance. and operation of tCntli"al buildings. runways. roadways, aprons~ =iways. puking areas, and all other works. b~ildings. facilities, ~tililies. S1J"Uctures, and appliances incidental, necessary. or eonvenient for the prtlmotion and accommodation of air commerce and air navigation (4) For the COMU"Uetion, reconstrUction, repair, and maintenance of highways, streets, roadways. bridges, bc:l~line railroads, parking facilities. power, telephone; telegraph or cable lines or landings, water and ga! pipelines, and all other traIlSjlOrtltion and utility facilities or bettennenrs incidental, necessary, or convenient for the prtlmotion and accommodation of any of the USC$ set forth in this sectioll. (5) Forthe c:l)nstnJction, ~omuction, repair, m,aintl::nance, and operation ofpublic buildings, public' assembly lIIId meeting plac.es, c:mlVention cent=, parks. playgrounds, bathhouses and baIhing fiK:ilities, =reatioa and flSbing pi~, public recreation fa<:ilitid, including. bUt not limited Ie, public: golf C:CUl'Sl:S. and for all works, buildings, facilities, utilities, struel11nS, and appliances incidental, n=ry, or convenient for r:he promotion IIld aceommodation of any sucb uses. (6) For the establishment, improvement, and conduct of small boat harbors, mi!riDas, aquatic playgrounds, and similar recro:ationaJ facilities, and for r:hc: constrUction, rcc:cnstrUction, repair, mairit=lance, IIIId operation of all works, ~aildings, facilities. utilities, sz:rucru=, and applian= incidental, ncc.e:s.sary, or c:cnvenicnt for the: promotion and accommodation of any of those uses, including. but not limited !c, snilclc bars, cafes, rest:a=ts, mlltl:l, launching ramps, and hoists. storage sheds, boar repair facilities with cranes md marine ways, administration buildings, public rcstrcoms, bait and tac:k1e shops, chandleries, boar sales establishments, service stations and f'uet docks. yacht club buildings, parlr.:ing aieas, roadways, pedcstri8l1 ways, and landscaped area. ~ (7) For the cstIhlishmcnt and maincmancc of those lalIds fer open space. =logic:aI pr=rvation. &lid habitat re:srcl'Uion. oi) The dimia or its Sl" ....~ 5hal1not, II any rim&; grant, convey, give; or aiien.atl= those lands, or any part th=f. to any individual, firm, or corpo~tion for any purposes ~. HOu.e'>'er. the distriCt. or its su=~ may grant franchises thereon for limited periods, not exc=:ling 66 years, for wharves and other public uses and purposes.. aiu:l may 1_ those lands. or any part Illeneat; for limited periods. not ~,<cecding 66 y= for purposes =isD=nt witll the ~stS upcln which those lands are held by the State of Cali fomi a, and with the ~ircments of comm= and navigaticln, and eollect and r'Ctain rents and other revenues 1Nm cba5e lca.ses, fi-anc:hises. and privileges.. Those lease or 1= !'ranchi=. and privil=ges may be for any and all pUI]lOses which shall not interfere with c:ommen:e and navigation. (c) Those lands ;h~1I be improved without e"Pense to the !iClte. Ho"'ever. no(hing in (his ,..:tion shall pre-;Iude ..,penditures for Ille development of (hose lands for any public purpose not inconsistent ",i(h ;omme.,;:. nOl.vig:uion. and rishe~, by the sute or any board, Ig""C)'. ATTACHMENT D 3b - 20 ~v-'-, 10/:!i/99 1-4:-46 FAX 619 6~6 ti~97 SDlPD.REAL ESTATE OPS. or cO'T1mlssion thereOr. 'Mhen au[honzed or approved by the district. or preclude ..'pendirurcs by the dis[riot of any funds n:ceived for that purpose from the state or any board, agency. or commission therl:cf. (d) In the management. conduct, operation, and control of those lands or any improvements, bettennents. or struetUres thereon. the district or its sUoceSSO~ shall make no discrimination in rate5. tolls. or charges for any use or service in conneetion therewith. (e) The State ofCaHfornia shall have the right to use without charge any transportation, landing or storage improvements, betterments, or stn.Ictu= conSlI'Ucted upon thO51' lands for any vessel or other waten:raft. ain:raft, or railroad owned or operated by the State of California.. (f) 'There is hereby ~erved to thdp:ople of the State of Calif ami a the right to fish in the wat=ts on those lands with the right' of conven ient access to that water Over those lands for that pUrpoSe. W Then: i$ hereby c:ccptcd and n:sefio'ed in the State of California all depcl$its of minerals, including oil md p$, in !hose land$, and to !he SI3IE of California. or persoas authorized by the Slate ofCaJifornia, the right to prospect for, mine, and ~ove deposits from said lands. (h) Those lands shall be held subjc.;t to the express reservation and condition that thC state may at any time in the future use those lands or any portion for highway purposes without compensation to the district, its successors or assigns, or any person, flrnl, or public or privm corpor.ltion eIailtli:lg WIder it, except that in the event improvemeDts, bclb:nneuts, or strueru= have been placed upon the property taken by the sta!e for those pU1jXl$C$, compensation shall be made ID the distriet, its suo::esors, or assigns, or any person, finn, or public or private corporation entitled thereto for tile value of his-or her or its inlcre:st in the improvements, betterments, or structun::s taken or the damag=s to that interest. (i) The StaIe Lands Commission, at the cost of the district, shall $W'Yey and monument _ these lands and r=lrU a desaiption and plat the:reofin the office of the COUZlty R=rder of San Diego County. m As to any tiele md submerged lands coavcyed to tile dislrict by a city that are subject to a c:oadition contained in. znnt ofl!lcse Iaads to the city by !be smre tllanhcse !uIds shall bcsubst1ntia.lly inl~...;mm ade$ipm:d period oreisethey shall r=Yertto!he=. tb.r condition WJI.=nain in effcet as to those lands and shall be applicable to tile district: As to any tide and submerged lands convey=lto the district by a city tha:t are not subject to such II condition contained in a gnnt by the state and that bave not heretofore bcc!l 5I.IbSI'aI'1tially improved. those lands, within 10 ye:u-s from July 12, 1962. shall be substantially improved by the district without expense: to the state. If the State Lands Commission dcwmincs thal: the district bas tailed to imp",ve the lands as baein requi=l. all right. tide, and interest of the district in and tD those lands shall oease and the lands shall ~m and = in the State. (Amended 1963. 1996) ATTACHMENT D 3b - 21 I4J 018 10;2i;99 H:<l6 FAX 619666 629i ----- ----- ~ <:15!!! l ~l ~i~~h~111 t . Jlnli~ ;1 I' C'l::!i!..! flffi J :~ I I, ?2. I' /' >~, ' ~~_ i j : / ~~ Wfl L 11/ ,II / -1// / I : , : / I ' , / I 1 : I I', ~/ : ~, I" .~ .". 1- l i n ~~.; {.~,- :i.llBri I I I , / I , ! \ \ \ \ \ \ \ \ \ \ \ \ "" \ i , " \ ' . '",- '.,' =: ~ '\., ~. '0'" \"<--',,,, ""~ .... ~~ \ '-"',\ ~ ~ \ 3b - 22 -::.::- ---- SDlPD REAL ESTATE OPS, 10Ul~ - .~_. .....1 I _ _' --...~:!..;. " ' "(" ) J-'-,,-_/ ~tl\il, '., ;; i df?/ ,.'x1:'~r I 'ii \ ': \""" ,/.; . -::::, 'fL.' : (rinl; '.' .~I "i"f/i;l, " . . ~-7:' lilt .'" .~' , . ~':~. ; I,: ,(~ F"-~'" : ,Ii,,: : (~ ;'" ,") ~' I:I~ " .-/..'.. \ ',\,' : (.".. . rv' :. :1: .,,': ,'S. ] :,i\!'I\: . , ' J L-lf€----1JJ' " ,D 'iI'R'l' 'I ~;~ , , , ' \ : ... ; b!?,: .- ~ ~ I' k l ....l ~.. . ":\?:';'1 0 'b' i 1 "' -,.1 !". : ' 'D fl. ; \ D CiII' i\: ~,\ \, ~r\tAJU U U rJD~ll ~.~~O~ n\ : IU. t 1.l)1 H" : : . I 00," tl[] f', \, = 0 ~, :.. :~.~ c=J l~ o~i n: ;'--- I~' J r--4l1 n: . ,: I !Uo · i' l ! rl : ~': " II U; 'I ." ~ res :u i t- .:: ~ 1:, / / ...., I; Ii / , ~'. . ~ ."... ( EXHIBIT C AMENDMENT TO RELOCATION AGREEMENT THIS AMENDMENT TO RELOCATION AGREEMENT (hereinafter referred to as "Amendment") is made and entered into effective this 1st day of November, 1999, by and among the CITY OF CHULA VISTA, a municipal corporation ("City"), REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, a redevelopment agency formed pursuant to Health and Safety Code 99 33000 et seq. ("Agency''), SAN DIEGO UNIFIED PORT DISTRICT, a Port District formed pursuant to Harbors and Navigations Code App. 1, 99 1 et seq. (hereinafter referred to as "Port'') and ROHR, INC., operating as BFGoodrich Aerospace Aerostructures Group, a Delaware corporation and wholly owned subsidiary of The BFGoodrich Company (hereinafter referred to as "BFG''). All references in this Amendment to "City/Agency" shall refer collectively to City and Agency. City, Agency, Port and BFG are from time to time hereinafter referred to individually as a ''party'' and collectively as the ''parties. " A. BFG, Port and City/Agency have entered into that certain Relocation Agreement dated July 13, 1999 (the "Relocation Agreement''). B. The parties now wish to amend the Relocation Agreement as set forth below. NOW, THEREFORE, the parties agree as follows: 1. All references in the text and captions of Section 7.3.I(g)(3) and (4) to "$7 Million" are changed to "$12 Million." 2. Section 7.2.12 is amended by deleting the second sentence and replacing it with the following: "Permanent dewatering activities shall not be permitted in connection with the development of the South Campus." 3. The following is added as new Section 7.2.15: "7.2.15 Onsite Incineration. Onsite incineration shall not be permitted in connection with South Campus Environmental Remediation Activities." 4. Except as expressly amended hereby, the Relocation Agreement shall remain unmodified and in full force and effect. As of the effective date of this Amendment, the term "Relocation Agreement" shall mean the Relocation Agreement as amended by this Amendment. 5. This Amendment has been drafted through a joint effort of the parties and their counsel and no provision hereof shall be construed in favor of or against any of the parties by virtue of any rule of construction in favor of the non-drafting party. 3b - 23 -MEOOOOC. DOC/14230-0039 11/04/99 08:40 AM 6. This Amendment constitutes the parties' entire agreement and understanding with respect to all matters referred to in this Amendment. There are no representations, agreements, understandings or covenants among the parties relating to the subject matter of this Amendment except as specifically set forth in this Amendment. This Amendment integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes any and all prior versions or drafts of this Amendment and all discussions and negotiations preceding it. No amendment or modification of this Amendment shall be effective unless expressly set forth in writing and executed by the parties. This Amendment may be executed in counterparts. IN WITNESS WHEREOF, this Amendment has been executed by the parties as of the day and year first above written. Port: SAN DIEGO UNIFIED PORT DISTRICT By: Name: Its: City: CITY OF CHULA VISTA, a municipal corporation By: Mayor Redevelopment Agency: REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, a redevelopment agency By: Chair BFG: ROHR, INC., operating as BFGOODRICH AEROSPACE AEROSTRUCTURES GROUP, a Delaware corporation and wholly owned subsidiary of THE BFGOODRICH COMPANY By: Name: Its: 3b - 24 2 -MEOOOOC.DOC REDEVELOPMENT AGENCY AGENDA STATEMENT ITEM No. ~ MEETING DATE 1 1/09/99 ITEM TITLE: PUBLIC HEARING: CONSIDERATION OF A REQUEST TO ESTABLISH A VOCATIONAL POSTSECONDARY SCHOOL AT 310 THIRD AVENUE WITHIN THE TOWN CENTRE I REDEVELOPMENT PROJECT AREA RESOLUTION APPROVING THE SPECIAL USE PERMIT TO ALLOW THE ESTABLISHMENT OF A VOCATIONAL POSTSECONDARY SCHOOL AT 310 THIRD AVENUE WITHIN THE TOWN CENTRE I REDEVELOPMENT PROJECT AREA SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR LB- in e.. 3- REVIEWED BY: EXECUTIVE DIRECTOR Ct v..; (4/STHS VOTE: YES_ NO!., United Education Institute has requested a land use permit to allow the establishment of a Vocational Postsecondary School at 310 Third Avenue within the Town Centre I Redevelopment Project Area (see Locator Map). The land use is not permitted by right within the commercial area of the Town Centre Redevelopment Project, therefore, in accordance with the Town Centre Redevelopment Plan, the proposal requires consideration by the Redevelopment Agency. The proposal qualifies for a Class 1 categorical exemption per Section 15301 of The Guidelines for Implementation of the California Environmental Quality Act as the leasing of an existing facility. That the Redevelopment Agency: 1. Hold a public hearing and take public testimony; and, 2. Adopt a Resolution Approving the applicant's request based on the findings and conditions contained therein. :_H$ii.~g",.i_::~ilIi_$ii~iiIliH::mww:::::::"""'" . On October 13, 1999 the Town Centre Project Area Committee voted 5-0 (Member Navarro absent) to recommend that the Redevelopment Agency approve the application for a Special Use Permit to allow the PostSecondary Vocational School. The applicant's request entails the establishment of a Vocational Postsecondary School in an existing commercial building located at 310 Third Avenue. The proposed leasehold would occupy 17,533 square feet of the 55,558 leasable square foot total for the property. 40% of the space will be used for administrative office purposes, while 60% will be used as classrooms or computer labs. There will be about 10-15 students per class with a projected total student population of 120 students. The school will be open from 8 a.m. to 11 :00 p.m. The project site at 310 Third Avenue is a first floor retail and restaurant, second floor office development immediately adjacent to a public parking structure. As the project was designed for retail and office use, the parking for the 4-1 PAGE 2, ITEM MEETING DATE 1 1/09/99 administrative office is adequate as originally approved. As a Vocational Postsecondary School has traditionally been parked at the same ratio as Secondary Schools, the 120 students would generate a demand of 30 spaces (per Chula Vista Municipal Code Section 19.62.050). The classroom space is approximately 10,520 square feet, which, if evaluated as office space, would have been determined to require 36 parking spaces. As the demand for parking is less than what the municipal code would have required for the original approved use, the parking demand is determined to be met. LAND USE DESIGNATION The Town Centre Redevelopment designation for the site is central commercial. This land use designation allows a mixture of commercial uses, including but not limited to retail, office, hotel, service, entertainment, educational, and auxiliary uses. Vocational Schools are allowed with the issuance of a Special Use Permit. The reason for the discretionary review is the wide range in types of schools and the necessity to analyze their conformance with the goals of the Redevelopment Plan. ANALYSIS The goal of the Chula Vista Town Centre Redevelopment Plan is to revitalize the Town Centre area as the commercial civic focus of the City. This includes: 1) the strengthening of the mercantile posture of Town Centre and the improvement of retail trade therein; 2) the retention and expansion of viable land uses, commercial enterprises, and public facilities within the area, 3) the attraction of capital and new business enterprises to the core area, and, finally, 4) the reorientation of the people of Chula Vista to their core area. Retail trade requires traffic. The school will bring in approximately 120 students, as well as faculty and support staff, to the Town Centre area. The school will occupy space that has previously been used mostly for offices, some of which is presently vacant, and that is generally on the second floor. The potential for the use of the specific lease area as retail due to these conditions would appear to be marginal. As the students and staff take the opportunity to partake of the retail and service fabric of the commercial core, existing retail opportunities will benefit from the incremental increase in traffic due to the school's presence. There is a concern that leasing ground floor space to essentially office users will dilute the potential for a complete retail renaissance of the Town Centre area. This particular ground floor space is dependent, due to its internal nature and invisibility from the street, on pedestrian traffic that has previous knowledge of the uses on site. Until such time as there is additional pedestrian traffic that is presently projected to be generated by office development in the area, the demand for additional retail opportunities at this site would appear premature. Based on the analysis, staff and the Town Centre Project Area Committee recommend that the Redevelopment Agency adopt the attached Resolution with the following findings and conditions and approve the applicants' request. Staff time required to prepare this report, which is eligible for reimbursement by the Town Centre Project Area, is the only identifiable fiscal impact. Exhibits List 1. Location Map 2. Town Centre Project Area Committee Staff Report, dated October 13, 1999 3. Town Centre Project Area Committee Minutes of October 13, 1999 meeting H:IHOMEICOMMDEVlSTAFF.REPI11-02.99\ueLdoc 10/25/999:03 AM 4-2 RESOLUTION NO. A RESOLUTION OF THE REDEVELOPMENT AGENCY APPROVING THE SPECIAL USE PERMIT TO ALLOW THE ESTABLISHMENT OF A VOCATIONAL POSTSECONDARY SCHOOL AT 310 THIRD AVENUE WITHIN THE TOWN CENTRE I REDEVELOPMENT PROJECT AREA WHEREAS, a duly verified application for a Special Use Permit was filed with the Community Development Department of the City of Chula Vista on September 3, 1999; and, WHEREAS, said application requests approval to operate a Postsecondary Vocational School specializing in Networking Technology and Business Office Administration within an existing commercial office building located at 310 Third Avenue; and, WHEREAS, said application qualifies for a Class I categorical exemption per Section 15301 of the Guidelines for Implementation of the California Environmental quality Act as the leasing of an existing facility; and WHEREAS, the Town Centre Project Area Committee held a duly noticed Public Hearing to consider said application on October 13, 1999, and after considering all evidence and testimony presented recornmended by a vote of 5-0 (Navarro absent) that the Redevelopment Agency approve the Special Use Permit; and, WHEREAS, a duly called and noticed public hearing on the Project was held before the Redevelopment Agency of the City of Chula Vista on November 2, 1999, to receive the recommendation of the Town Centre Project Area Committee, and to hear public testimony with regard to same. NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby Approve the Special Use Permit based on the following findings and conditions Findings: A. The proposed use at the particular location is necessary or desirable to provide a service or facility which will contribute to the general well being of the neighborhood or the community. A Vocational School which teaches Networking Technology and Business Office Administration contributes a service that is necessary to our society which is increasingly dependent upon applied information services. The particular location is appropriate as it is existing office space with adequate parking provided in the immediate vicinity. B. That such use will not under the circumstances of the particular case, be detrimental to the health, safety or general welfare of persons residing or working in the vicinity or injurious to property or improvements in the vicinity. The class and business hours of the establishment are within the normal operating hours of the commercial core. The student body of 120, faculty, and support staff have adequate parking in the immediate vicinity. The teaching of business administration and networking technological skills is an innocuous use and is therefore not a use that is particularly detrimental to health, safety, or general welfare to either people or property. This use will bring additional day time residents to the Town Centre area to assist in refocusing the residents of the City to the downtown area as its commercial retail core. 4-3 C. That the proposed use will cornply with the regulations and conditions specified in the code for such use. The conditional approval of the special use permit requires conformance with all regulations, codes, and policies. D. That the granting of this special use permit will not adversely affect the general plan of the City or the adopted plan of any government agency. Vocational schools are unclassified uses which are allowed in any zoning district upon approval of a conditional use permit. Therefore the granting of this permit is consistent with the General Plan and the Redevelopment Plan for this area. Conditions of Approval: 1. Applicant shall comply with and implement all requirements of the Chula Vista Municipal Code and applicable Fire and Building Department requirements, as appropriate. 2. The applicant shall arrange a security survey with the Crime Prevention Unit of the Chula Vista Police Department and comply with any directives resulting therefrom. 3. Outdoor storage of equipment or material is prohibited as part of the approval of this permit. 4. This permit shall be in full force and effect during the term of the lease between the property owner and United Education Institute for the use specified herein, and any extensions thereof. 5. This permit shall be subject to any and all new, modified or deleted conditions imposed after approval of this permit to advance a legitimate governmental interest related to health, safety or welfare which the City shall impose after advance written notice to the Permittee and after the City has given to the Permittee the right to be heard with regard thereto. However, the City, in exercising this reserved righUcondition, may not impose a substantial expense or deprive Permittee of a substantial revenue source which the Permittee can not, in the normal operation of the use permitted, be expected to economically recover. 6. This permit shall become void and ineffective if not utilized within one year from the effective date thereof, in accordance with Section 19.14.260 of the Municipal Code. Failure to comply with any condition of approval shall cause this permit to be reviewed by the City for additional conditions or revocation. 7. ApplicanUoperator shall comply with all City and Agency ordinances, standards, and policies except as otherwise provided in this resolution. Any violation of City ordinances, standards, and policies or any condition of approval of the Special Land Use Permit or any provision of the Municipal code, as determined by the Director of Planning or the Community Development Director, shall be grounds for revocation or modification of this Special Land Use Permit. 8. ApplicanUoperator shall indemnify, protect, defend and hold harmless the City and Agency, its Council members, Board members, officers, employees, agents, and representatives, from and against any and all liabilities, loses, damages, demands, claims and cost, including court costs and attorneys' approval and issuance of the Special Land Use Permit, (b) City's approval or issuance of any other or action, whether discretionary or non-discretionary, in connection with the use contemplated herein and, (c) Applicant's installation and operation of the facility permitted hereby. Applicant's/operator's compliance with the provision is an express condition of this Special Land Use Permit and this provision shall be binding on any and all of the Application's/operator's successors and assigns. 9. It is the intention of the Agency that its adoption of this Resolution is dependant upon the enforceability of each and every term, provision and condition herein 4-4 stated; and that in the event that anyone or more terms, provisions or conditions are determined by a Court of competent jurisdiction to be invalid, illegal or unenforceable, this resolution and the permit shall be deemed to be automatically revoked and of no further force and effect ab initio Record of Town Centre I Proiect Area Committee Proceedinas The proceedings and all evidence introduced before the Town Centre Project Area Committee at their public hearing on the Project held on October 13, 1999, and the minutes resulting therefrom, are hereby incorporated into the record of this proceeding. Presented by Approved as to form by r~~ Chris Salomone Director of Community Development 4-5 ~ . () ~~ %I 0 o~\\-Il. ~ ~ :c c s;: < U') ::;; 9 c Qj ~ i ::::l ~ i~ i! to) ~ o ;t a: ;r ~ IS .- ~ / / ()\// l%i/ ,~ ~\ ~\ ~" / ." - -0 / ../ 4-6 EXHIBIT 2 Town Centre Project Area Committee Staff Report Meeting Date: October 13, 1999 Item Title: Public Hearing: Consideration of a Request to Establish a Vocational Postsecondary School Teaching Networking Technology and Business Office Administration Background: United Education Institute has requested a land use perrnit to allow the establishment of a Vocational Postsecondary School at 310 Third Avenue within the Town Centre I Redevelopment Project Area. The land use is not a land use permitted by right within the commercial area of the Town Centre Redevelopment Project, therefore, in accordance with the Town Centre Redevelopment Plan, the proposal requires consideration by the Redevelopment Agency The proposal qualifies for a Class 1 categorical exemption per Section 15301 of The Guidelines for Implernentation of the California Environmental Quality Act as the leasing of an existing facility. Recommendation: That the Town Centre Project Area Cornrnittee: 1. Hold a public hearing and take public testimony; and, 2. Recornrnend that the Redevelopment Agency approve the applicant's request based on the findings and conditions listed in the following staff report. Discussion: The applicant's request entails the establishment of a Vocational Postsecondary School in an existing corn rnercial building located at 310 Third Avenue. The proposed leasehold would occupy 17,533 square feet of the 55,558 leasable square foot total for the property. 40% of the space will be used for administrative office purposes, while 60% will be used as classrooms or computer labs. There will be about 10-15 students per class with a projected total student population of 120 students. The school will be open from 8 a.m. to 11 :00 p.m. The project site at 310 Third Avenue is a first floor retail and restaurant, second floor office development immediately adjacent to a public parking structure. As the project was designed for retail and office use, the parking for the administrative office is adequate as originally approved. As a Vocational Postsecondary School has traditionally been parked at the same ratio as Secondary Schools, the 120 students would generate a demand of 30 spaces (per Chula Vista Municipal Code Section 19.62.050). The classroom space is approximately 10520 square feet, which, if 4-7 evaluated as office space, would have been determined to require 36 parking spaces. As the demand for parking is less than what the municipal code would have required for the original approved use, parking is not an issue. Land Use Desiqnation The Town Centre Redevelopment designation for the site is central commercial. This land use designation allows a mixture of commercial uses, including but not limited to retail, office ,hotel, service, entertainment, educational, and auxiliary uses. Vocational Schools are allowed with the issuance of a Special Use Permit. The reason for the discretionary review is the wide range in types of schools and the necessity to analyze their conformance with the goals of the Redevelopment Plan. Analysis The goal of the Chula Vista Town Centre Redevelopment Plan is to revitaiize the Town Centre area as the commercial civic focus of the City. This includes the strengthening of the mercantile posture of Town Centre and the improvement of retail trade therein, the retention and expansion of viable land uses, commercial enterprises, and public facilities within the area, and the attraction of capital and new business enterprises to the core area, and, finally, the reorientation of the people of Chula Vista to their core area. Retail trade requires traffic. The school will bring in approximately 120 students, as well as faculty and support staff, to the Town Centre area The school will occupy space that has previously been used for offices, some of which is presently vacant, and that is generally on the second floor. The potential for the use of the specific lease area as retail due to these conditions would appear to be marginal. As the students and staff take the opportunity to partake of the retail and service fabric of the commercial core existing retail opportunities will benefit from the incremental increase in traffic due to the school's presence. Based on the analysis, it is recommended that the Town Centre Project Area Committee recommend that the Redevelopment Agency adopt the following finds and approve the applicants request. Based upon Chula Vista Municipal Code, Title 19, the following findings must be made Findinqs A. The proposed use at the particular location is necessary or desirable to provide a service or facility which will contribute to the general well being of the neighborhood or the community. A Vocational School which teaches Networking Technology and Business Office Administration contributes a service that is necessary to our society which is increasingly dependent upon applied information services. The particular location is appropriate as it is existing office space with adequate parking provided in the immediate vicinity. B. That such use will not under the circumstances of the particular case, be detrimental to the health, safety or general welfare of persons residing or working in the vicinity or injurious to property or improvements in the vicinity. The class and business hours of the establishment are within the normal operating hours of the commercial core. The student body of 120, faculty, and support staff have adequate parking in the immediate vicinity. The teaching of business administration and networking technological skills is an innocuous use and is therefore not a use that is particularly detrimental to health, safety, or general welfare to either people or property. C. That the proposed use will comply with the regulations and conditions specified in the code for such use. 4-8 The conditional approval of the special use permit requires conformance with all regulations, codes, and policies. D. That the granting of this special use permit will not adversely affect the general plan of the City or the adopted plan of any government agency. Vocational schools are unclassified uses which are allowed in any zoning district upon approval of a conditional use permit. Therefore the granting of this permit is consistent with the General Plan and the Redevelopment Plan for this area. The project is recommended for approval with the following conditions: 1. Comply with and implement all requirements of the Chula Vista Municipal Code and applicable Fire and Building Department requirements, as appropriate. 2. The applicant shall arrange a security survey with the Crime Prevention Unit of the Chula Vista Police Department. 3. Outdoor storage of equipment or material is prohibited as part of the approval of this permit. 4. This permit shall be in full force and effect during the term of the lease between the property owner and United Education Institute for the use specified herein, and any extensions thereof. 5. This permit shall be subject to any and all new, modified or deleted conditions imposed after approval of this permit to advance a legitimate governmental interest related to health, safety or welfare which the City shall impose after advance written notice to the Permittee and after the City has given to the Permittee the right to be heard with regard thereto. However, the City, in exercising this reserved right/condition, may not impose a substantial expense or deprive Permittee of a substantial revenue source which the Permittee can not, in the normal operation of the use permitted, be expected to economically recover. 6. This permit shall become void and ineffective if not utilized within one year from the effective date thereof, in accordance with Section 19.14.260 of the Municipal Code. Failure to comply with any condition of approval shall cause this permit to be reviewed by the City for additional conditions or revocation. 4-9 DRAFT MINUTES A SPECIAL MEETING OF THE TOWN CENTRE PROJECT AREA COMMITTEE OF THE CITY OF CHULA VISTA EXHIBIT 3 Wednesday, October 13, 1999 8:15A.M. Conference Room #3 City Hall Meeting called to order at 8:20 a.m 1. RollCall Present: Chairperson Vignapiano, Vice Chair Money, Members Fergus, Madsen and Ruch Absent: Member Navarro Also Present: Byron Estes, Jack Blakely, Brian Hunter, Richard Colder (UEI), Ricky Feria and Nadine Mandery 2. APPROVAL OF MINUTES MSC (Ruch/Money) to approve the minutes of a Special Meeting held on October 6, 1999 as amended to correct Item #3 to replace Fergus/Navarro with Fergus/Money [5-0-1; Navarro absent] REDEVELOPMENT BUSINESS 3. United Educational Institute (UEI) Land Use Permit Application Planning and Environmental Manager, Brian Hunter gave a project overview and update on UEI's request to establish a vocational post secondary school at the corner of 3"' and F Street. Discussion followed. Chair Vignapiano opened the Public Hearing. Richard Colder, Vice President, International Education Corporation gave a presentation of the UEI project Discussion followed. Chair Vignapiano closed Public Hearing. MSC (Money/Madsen)) to recommend that the Redevelopment Agency approve the Land Use Permit Application for United Educational Institute (UEI) [5-0-1; Navarro absent] 4. Final Land Use Policy Byron Estes inforrned members that the amendment to the Land Use Policy was approved by City Council on September 21,1999. 5. Public Transportation -- Gateway Project and County Complex (Jim Fergus) Member Fergus presented for consideration transportation alternatives which could be used by the public between Downtown and the Gateway project expected to be completed in 2001. Discussion followed. MSC (Ruch/Fergus) to support a plan to develop transportation alternatives between downtown and 4-10 Minutes for Special Meeting of the Town Centre Project Area Committee DRAFT Page 2 of 2 the proposed Gateway project to be located at Third and H. [5-0-1 Navarro absent] PARKING BUSINESS 6. Chairman's Comments Chair Vignapiano requested an update regarding the change in the cost of meters on Third Avenue. 7. Members' Comments o Parking District Issues and Enforcement (Jim Fergus) Sergeant Bryan Truel, Traffic Division will be invited to the next meeting to discuss the parking situation and answer questions. Item continued to regular meeting of November 9, 1999. 8. Staff Comments a. Status: Request to change two-hour time limit for parking meters in front of 320 E Street. Continued to regular meeting of November 9, 1999 b. Gameworks Continued to regular meeting of November 9, 1999 c. Business Recruitment Consultant Interviews -- October 11 and 12. Eight Bids were received and seven interviews were conducted. One company recalled their bid. Preliminary ranking has been completed. Leader Buildina Reouest for Prooosal Two proposals were received for Leader building. Discussed criteria for consultant interviews. 9. Public Comments None. ADJOURNMENT at 9:15 to the regular meeting of Wednesday, November 13, 1999 at 8:00 a.m. h :\home\commdev\tcpac\ 10-13-99 .min.doc 4-11 REDEVELOPMENT AGENCY AGENDA STATEMENT ITEM No. 5" MEETING DATE 1 1/09/99 ITEM TITLE: PUBLIC HEARING: TO CONSIDER THE ADOPTION OF FIVE YEAR IMPLEMENTATION PLANS (2000-2004) FOR THE FOLLOWING REDEVELOPMENT PROJECT AREAS LOCATED WITHIN THE CITY OF CHULA VISTA: TOWN CENTRE I; TOWN CENTRE II; BAYFRONT; SOUTHWEST; AND OTAY VALLEY ROAD RESOLUTION ADOPTING FIVE-YEAR (2000-2004) IMPLEMENTATION PLANS FOR THE TOWN CENTRE I, TOWN CENTRE II, BAYFRONT, SOUTHWEST AND OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREAS REVIEWED By: COMMUNITY DEVELOPMENT DIRECTOR L~~ ~ EXECUTIVE DIRECTOR & t:'V~ (4/STHS VOTE: YES..,L No..J SUBMITTED BY: Section 33490 of the California Health and Safety Code requires that Redevelopment Agencies adopt Implementation Plans every five years for each redevelopment project area in their jurisdiction. The current Implementation Plans, adopted in 1994 for the period 1995-1999, expire in December. These plans were reviewed and updated at mid-term in August, 1997, as required by the enabling legislation. The new Implementation Plans currently under consideration will cover the period from January 1, 2000 through December 31, 2004. The Implementation Plans provide an overview of projected activities and identify anticipated programs and expenditures for the upcoming five year period. The plans also explain how the goals and objectives, programs and expenditures of each Implementation Plan will eliminate blight within the project areas. Additionally, the plans address requirements for low and moderate-income housing. The projects and programs proposed for the next five-year cycle will require a clear focus and concerted action. The current economic expansion is aiding revitalization efforts, but there is a need to begin taking strategic steps to help ensure continuing progress. In particuiar, the Agency will need to address the following pressing issues: 1) Pending time limits on several key redevelopment plans may hamper funding to revitalize Downtown and the Bayfront. 2) Growth in the City is contributing to strains on infrastructure that need to be addressed in the upcoming General Plan update process. 3) Timing of major projects could hamper the ability of Agency staff in Community Development to swiftly respond to opportunities posed by the current growth environment if several of them emerge simultaneously. 4) The ability to reposition Downtown as a lively center of pedestrian activity will need significant resources for land assembly and marketing. Staff will work closely with the Agency Board and community stakeholders to focus on solutions to help ensure full implementation of the projects and programs recommended in the 2000-2004 Impiementation Plans. 5-1 PAGE 2, ITEM MEETING DATE 1 1/09/99 It is recommended that the Redevelopment Agency Board adopt the Implementation Plans for Chula Vista's five Redevelopment Project Areas, including Town Centre I, Town Centre II, Bayfront, Southwest and Otay Valley Road. It is also recommended that a combined Housing Implementation Plan, including recommendations for low- and moderate-income housing in the five Redevelopment Project Areas, be adopted concurrently. The Town Centre Project Area Committee unanimously supported the adoption of the Town Centre I and the Town Centre II Implementation Plans at their meeting of October 6, 1999. The Economic Development Commission reviewed the Implementation Plans for all of the Redevelopment Project Areas at their meeting of October 6, 1999 without comment. There currently are no Project Area Committees in the other Redevelopment Project Areas. The 2000-2004 Redevelopment Project Implementation Plans reflect the considerable progress made in all of Chula Vista's project areas during the past five years and provide a blueprint for projects and programs anticipated during the next five years. The past five years saw Chula Vista emerge from the recession with a more diversified economy and considerable progress in eliminating existing blight. The City has much to celebrate. A few of the many successes reported by the Agency for the past five year period include: . Successful development of Phase 1 of the Chula Vista Auto Park . Widening of Otay Valley Road (now Main Street) . Completion of the Palomar Trolley Center development . Development of the new Humphrey Mortuary on Broadway . Redevelopment of the Sharp Rees-Steely Medical Building and expansion of Scripps Memorial Hospital . Renovation and expansion of the Chula Vista Center shopping mall . Development of the South Bay Marketplace, including the new WalMart in North Chula Vista . Development of the award-winning Cordova Village residential project . Completion of the attractive Trolley Terrace town homes project . Completed negotiations on the BF Goodrich Relocation Project with the Port District that will facilitate the consolidation of BF Goodrich operations north of "H" Street . In cooperation with other City departments, development of the Otay Recreation Center on Main Street and the new City Animal Shelter at Third and Beyer . Successful business attraction/placement of Solar Turbines and Master Machine to the Southwest Project Area The Community Development Department, which administers the Redevelopment Agency's programs, also facilitated the successful completion of the new Coors (House of Blues) Amphitheater and Whitewater Canyon (Knotts Berry Farm) Water Park projects adjacent to the Otay Valley Road Project Area, which have begun to re- shape perceptions about Chula Vista and the South Bay region. Community Development will continue to work hard on revitalizing Chula Vista as an attractive venue for visitors and residents, business and industry - utilizing all the tools available through redevelopment, economic development, business attraction and retention, and housing development and rehabilitation. The Implementation Plans have been revamped and include a variety of tables and maps to help orient the reader and make the plans more user-friendly. The Plans include proposed projects and programs to help eliminate blight - which represents the central mission of our redevelopment efforts. The plans will be available for review in area libraries and other organizations during the implementation period. It is our goal for the Implementation Plans to function as flexible policy guidelines which can be adapted to changing economic conditions and development 5-2 PAGE 3, ITEM MEETING DATE 1 1/09/99 opportunities. Adoption of the plans by the Agency Board does not lock the Agency into developing particular projects - full review of any actual projects proposed for development will continue to be solely at the discretion of the Agency and Agency Board. Although the Implementation Plans present a full array of revitalization activities projected for the coming five year period, it would be difficult to summarize all of these activities. Therefore, we have included some selected highlights of proposed 2000-2004 projects from the Plans to demonstrate the range of activities planned to take place. These include: Bayfront Project Area . Development of the Mid-Bayfront Crystal Bay Project - this major visionary project is expected to include a resort hotel, housing, entertainment and retail, office development, and park and open space. . Redevelopment of the BF Goodrich South Campus - the Agency will work closely with the San Diego Unified Port District to facilitate development of this critical section of the Bayfront. Otay Valley Road Project Area . Expansion of the Chula Vista Auto Park - this development opportunity could bring as many as half a dozen new auto dealerships to Chula Vista. . Facilitate Development of the Darling-Delaware Site - renewal of this site will provide development opportunities on one of the last large pieces of vacant industrial land in the City. Southwest Project Area . Implementation of the Economic, Land Use, and Zoning Study - this study recommends a number of actions to revitalize the Montgomery and Otay neighborhoods, including development of an Hispanic- oriented commercial center. . Otay Valley Regional Park Planning - the Agency will actively participate in the establishment of this multi-use regional park facility. . Broadway Revitalization Plan - the Agency will facilitate development of a revitalization action plan for the Broadway corridor. Town Centre 1 . Development of the Third and "H" Street Gateway Chula Vista Project - this significant mixed office and retail development is expected to provide 300,000 square feet of high-end office space and a signature restaurant for Downtown. . Fa~ade Improvement Program - a targeted matching grant program will be developed to assist businesses and property owners as part of a focused revitalization effort in Downtown Chula Vista. Town Centre II . Development of the old City Public Works Yard - a feasibility analysis and marketing effort to develop this site as a transit oriented development will provide significant stimulus to this gateway to the Bayfront and Downtown. . Civic Center Master Plan - the redevelopment of the Civic Center to accommodate the City's growth will be the subject of a concerted planning effort during the coming years. Housing Implementation Plan . Rehabilitation of the Pear Tree Apartments - this 119 unit apartment project is slated for a substantial rehabilitation during the next few years and will provide a needed boost to the revitalization of the lower Broadway corridor. . Trolley Trestle Project - this project will provide a transitional environment for youth completing the County Foster Care Program and complements the recently completed Trolley Terrace project. 5-3 PAGE 4, ITEM MEETING DATE 1 '/09/99 Numerous other projects and programs are described in the Implementation Plans. Taken as a whole, the Agency program for the coming years will significantly reshape the face of the City, help eliminate blight, and contribute to the overall health and welfare of the City's residents. It should be re-emphasized that the aggressive redevelopment program we are proposing for 2000-2004 will require a strategic review of Agency resources. The Agency will need to begin addressing potential amendments necessary to revise some of our existing Redevelopment Plan timeframes. The current Redevelopment Plan timeframes consist of: Plan Bayfront/Town Centre I (original area) Bayfront (amendment area) Otay Valley Road Southwest Town Centre II (original area) Town Centre II (amendment area) Plan Expires 2014 2033 2023 2030 2018 2028 Last Year to Incur Debt 2004 2018 2004 2010 2004 2008 Last Year to Collect T.I. 2024 2043 2033 2040 2028 2038 For the original Bayfront, Town Centre I and Town Centre II project areas, the Agency will no longer be able to incur debt or issue bonds to finance improvements after 2004. In order to proceed with the programs necessary to eliminate blight in these project areas, Agency staff is preparing a financial plan that will help stabilize existing Agency resources. In addition to the proposed financial plan, staff will review and present to the Agency Board additional options to help ensure that the redevelopment process can proceed past 2004. Some of the options that may be recommended include: + Amendments to extend the Agency's ability to incur debt and issue bonds; + Potential merger of existing project areas and, where warranted, expansion of project area boundaries; + Amendments and updates of the City's General Plan to provide for a strategic development framework for the western portion of the City; + Amendments to the Zoning Code to allow for more "urban" development standards in Downtown; + Revisions to signage regulations to provide more flexibility while retaining quality; + Development of an Entertainment District overlay for Downtown to attract clusters of restaurants and theaters; The Community Development Department will continue to look for creative ways to make this redevelopment and revitalization agenda a reality. It is our strong feeling that now is the time to begin moving this important strategic planning and implementation process forward. The 2000-2004 Implementation Plans set forth estimated costs of redevelopment project funded activities for the five year period. Actual programs and costs will be determined on a case-by-case basis and will either be included in the Agency's annual budget appropriations and/or through the project negotiation process. Adoption of the 2000-2004 Implementation Plans does not obligate the Agency to expend funds, but provides a road map for potential future expenditures. H:\HOME\COMMOEV\ST AFF.REP\11-02-99\IMPLEMENT A TIONPLANAGENDAST A TEMENT.doc AGENCY RESOLUTION NO. RESOLUTION ADOPTING FIVE-YEAR (2000-2004) IMPLEMENTATION PLANS FOR THE TOWN CENTRE I, TOWN CENTRE II, BAYFRONT, SOUTHWEST AND OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREAS WHEREAS, Section 33490 of the Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) requires the preparation and approval of five-year Implementation Plans, and subsequent five-year Implementation Plans each five years thereafter, for all redevelopment projects adopted before January 1, 1994; and WHEREAS, the Project Area Irnplementation Plans and Housing Implementation Plan shall contain specific goals and objectives of the Agency for the Project Areas, the programs, projects, and expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, projects, and expenditures will eliminate blight within the Project Areas; and WHEREAS, Section 33490 of the Community Redevelopment Law requires that a public hearing be held before an Implementation Plan is adopted; and WHEREAS, the Redevelopment Agency of the City of Chula Vista (the "Agency") approved the initial five-year Implementation Plans including the Housing Implementation Plan on December 13, 1994 and the Mid-Term Report for the five-year Implementation Plans and Housing Implementation Plan on August 19, 1997; and WHEREAS, the Agency noticed the public hearing for the Implementation Plans at four permanent locations within the Project Areas for three consecutive weeks and in a newspaper of general circulation pursuant to the noticing requirements of the Community Redevelopment Law: and WHEREAS, a public hearing was held on the Implementation Plans on November 9, 1999, and any and all evidence and testimony presented was independently considered by the Agency; and WHEREAS, review of the Implementation Plans does not constitute approval of a project under the California Environmental Quality Act (CEQA) and therefore is exempt from environrnental review requirements in accordance with Section 15061 (b) (1) of the State CEQA Guidelines; and WHEREAS, review and approval of the Implementation Plans does not obligate the Agency to include specific projects or expenditures in annual budgets, and does not change the need for any required approval including planning entitlement or environmental review; NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of Chula Vista does hereby find, order, determine and resolve, that the five-year Implementation Plans for the Town Centre I, Town Centre II, Bayfront, Southwest and Otay Valley Road Redevelopment Project Areas are hereby adopted in the forms presented, copies of which shall be kept on file in the office of the Secretary of the Agency. Presented by: Approved as to form by: ~(~ Chris Salomone Director of Community Development H:\HOME\COMMDEV\RESOS\impplanreso.doc 5-4 AGENCY RESOLUTION NO. 16 0 RESOLUTION ADOPTING FIVE-Y R (2000- 2004) IMPLEMENTATION PLANS OR THE TOWN CENTRE I, TOWN C NTRE II, BAYFRONT, SOUTHWEST AND OT Y VALLEY ROAD REDEVELOPMENT PROJECT REAS WHEREAS, Section 33490 of the Community Redevelop ent Law (Health and Safety Code Section 33000, et seq.) requires the preparation and approval of va-year Implementation Plans, and subsequent five-year Implementation Plans each five yeans there Iter, for all redevelopment projects adopted before January 1, 1994; and WHEREAS, the Project Area Implementation Plans and ousing Implementation Plan shall contain specific goals and objectives of the Agency for the Proje Areas, the programs, projects, and expenditures proposed to be made during the next five yeans, and n explanation of how the goals and objectives, projects, and expenditures will eliminate. blight within the roject Areas: and WHEREAS, Section 33490 of the Community Redevelopm t Law requires that a public hearing be held before an Implementation Plari is adopted; and WHEREAS, the Redevelopment Agency of the City of Chu Vista (the .Agency") approved the initial five-year Implementation Plans including the Housing Implem ntalion Plan on December 13, 1994 and the Mid-Term Report for the five-year Implementation Plans d Housing Implementation Plan on August 19, 1997; and WHEREAS, the Agency noticed the public hearing for the Implementation Plans at four permanent locations within the Project Areas for three consecutive eeks and in a newspaper of general circulation punsuant to the noticing requirements of the Community edevelopment Law; and WHEREAS, a public hearing was held on the Implementali n Plans on November 9, 1999, and any and all evidence and testimony presented was independently c nsidered by the Agency; and WHEREAS, review of the Implementation Plans does not the California Environmental Quality Act (CEOA) and therefore i requirements in accordance with Section 15061 (b) (1) of the State nstitute approval of a project under exempt from environmental review EOA Guidelines; and WHEREAS, review and approval of \he Implementation PI ns does not obligate the Agency 10 include specifie projects or expenditures in annual budgets, and does not change the need for any required approval inCluding planning entitlement or environmental r view; NOW, THEREFORE, BE IT RESOLVED that the Redevel pment Agency of the City of Chula Vista does hereby find, onder, determine and resolve, that the fi year Implementatioo Plans for the Town Centre I, Town Centre II, Bayfront, Southwest and Otay alley Road Redevelopment Project Areas are hereby adopted in the forms presented, copies of which hall be kept on file in the office of the Secretary of the Agency_ Presented by: Approved s to form by: ~~~~ Chris Salomone Director of Community Development ~ Resolution 1650 Page 2 of 2 PASSED, APPROVED and ADOPTED BY THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA this 9th day of November, 1999 by the following vote: AYES: NOES: Members Davis, Moot, Padilla. Salas and Chair/Mayor Horton None ABSENT: None ABSTENTIONS: None ~~ Shirley Ho Chairman A TrEST: ~~ ~O~O, Chris Salomone Executive Secretary STATE OF CALIFORNIA) COUNTY OF SAN DIEGO) ss: CITY OF CHULA VISTA) I, Chris Salomone, Executive Secnetary to the Redevelopment Agency of the City of Chula Vista, Califomia DO HEREBY CERTIFY thallhe foregoing is a full, true and correct copy of Resolution No. 1650 and that the same has not been amended or repealed. Dated: November 10,1999 L~~ Chris Salomone Executive Secretary ~(f? ~.... ~--- --- '~~.;E~ CllY OF CHUlA VISTA REDEVELOPMENT AGENCY PROJECT AREA IMPLEMENTATION PLANS 2000 - 2004 Town Centre I - Town Centre II Bayfront - Otay Valley Road Southwest - Housing Jl.dqpted :NOvember 9. ./999 Chair Shir{ey :Horton .J'tGENC1J :MV;/'BERS Patty 'Davis John :Moot Steve Padl{{a :Mary Sa{as 5-5 TABLE OF CONTENTS [I] TOWN CENTRE I 0 [I] TOWN CENTRE II D [[] SA YFRONT 0 [!] SOUTHWEST D [I] OTAY VALLEY ROAD D [!] HOUSING IMPLEMENTATION PLAN D 5-6 TOWN CENTRE I REDEVELOPMENT PROJECT AREA :Jive year Imy[ementation P[an 2000-2004 ~- -- 0.._--'::== . , , '. .' . .-, ..-. .. ....: ..... '-, , ---~ -----..-:---~-.- ':.' ..: '." " . , .' ..-------- \~1 D~ .- \ TO<~,C;Ij'i:hu-u ..--------- -- ,- ---____.m___._- !f; .-.... . - . . . ~ 5-7 DRAFT TOWN CENTRE I REDEVELOPMENT PROJECT AREA :Five year Imy(ementation P(an for years 2000 - 2004 INTRODUCTION The Five Year Implementation Plan for the Town Centre Redevelopment Project is adopted to meet the requirements of Section 33490 of the Health and Safety Code. The plan is a flexible policy document and not a limitation on the Agency activities in this project area over the coming five years. BACKGROUND The Town Centre I Redevelopment Project Area was formed in 1976 in order to eliminate conditions of blight which were impacting the economic and physical viobility of the Project Area. The Town Centre Redevelopment Project Area encompasses 138.54 acres and is Chula Vista's historic downtown. Third Avenue is the Project Area's central north-south circulation spine. E Street bounds the site in the north and I Street is the Project's southern boundary. The east-west boundaries vary, extending ta Fourth Avenue at its farthest point west and to Del Mar Avenue ot its farthest point east. The Town Centre is urbanized and developed with a mixture of public and private land uses including the San Diego South Caunty Superior and Municipal Court Complex, Norman Park Seniar Center, and Memoriol Park as well as a variety of commercial offices, retail and service commercial uses, and residential units. The Redevelopment Plan is an extended 40 yeor plan and its term of effectiveness will end in July 2016. Finonciallimitations have been established for the project area as follows: The Agency cannot incur debt beyond January 1, 2004. The amount of bonded indebtedness to be repaid in whole or in part with tax revenues cannat exceed $20,000,000 at anyone time. The maximum amaunt of tox revenue which may be allacated to the Agency over the life of the Project Area is $84 million. The $84 million can be used for debt service or bonded indebtedness, in addition to operating expenses and affordable housing set aside. The implementation pion is intended ta be 0 flexible policy document to guide Agency activities over the next five years (years 2000 through 2004), and is not intended to represent a limitation on Agency activities. The programs/projects included in the Implementation Plan are those priority programs anticipated to be implemented during the next five years, however, they are not all of the programs/projects necessary to eliminate blight in the project area. The Town Centre Redevelopment Praject Area boundaries are described on the attached map (Exhibit A). Also, a Project Area Profile is included as Table 1 and a Summary of Redevelopment Program Influence on Blight is included as Table 2. . PAGE 1 5-8 DRAFT TOWN CENTRE I REDEVELOPMENT PROJECT AREA Jive year Imy[ementation p[an for years 2000 - 2004 BLIGHTING CONDITIONS PRE. PLAN CONDITIONS The Town Centre I Redevelopment Plan identifies the following blighting conditions in the project area: . The under-utilization and mixed character of lond in and odjacent to the project area. . The prevalence of small lots which are inadequate far large scale development and restrict the expansion of existing and compatible uses. . The design limitations in the basic layout and platting, the clutter of utility lines and signs, and an inadequate traffic circulation system. . The obsolescence, structural inadequacy, lack of architectural unity, and deterioration of buildings within the area. . The general decline and shifting noture of commerciol activity within the area. . The inadequate governmental revenue generation (property and sales tax) and an increasing need for public services within the area. PROGRESS IN ELIMINATING BLIGHTING CONDITIONS Since the adoption of the Redevelopment Plan in 1976, the Redevelopment Agency has worked to eliminate identified blighting conditions through the follawing efforts: . Since the inception of the Town Centre I Project, over $100 million of combined private and public development dollars have been invested within the Town Centre I Project Area and have contributed toward the area's economic growth and physical improvement. . The Redevelopment Agency hos participated in the following major new development projects that have been completed in the Town Centre I area over the past fifteen years. (Participation includes certificates of participotion, acquisition and consolidation of properties, financial assistonce, expeditious development plan processing etc.): The Park Plaza consisting of 59,000 sq. ft. commercial center, 98 residential condominiums and 94 rental apartments, a six-plex movie theater, three freestanding restaurants and a freestonding office building. The County of San Diego's South Bay Regional Center which houses Municipal and Superior courts and associated county offices that serve the South Bay. Sharp Rees-Stealy medical building The Park Square II and the Adma commercial/residential mixed use projects. Third Avenue public street and sidewalk improvements including landscaping and . PAGI 2 5-9 DRAFT TOWN CENTRE I REDEVELOPMENT PROJECT AREA Jive year Imy{ementation 'F{an for years 2000 - 2004 assacioted amenities. Develapment of new and redevelopment of older public parking lots. A 700 space public parking structure in the Park Plaza. The renovation of Memorial Pork and the construction of the Norman Park Senior Center. Preparation of the 1993 Downtown Market Study to analyze the economic potential of the Town Centre Redevelopment Project. Various small to medium remodeling and new construction projects completed by the private sector throughout the project area. Acquisition of 2.4 acres of properly at Third Avenue and Alvarado Street and .5 ocres of praperly at H Street and Third Avenue. EXISTING BLIGHTING CONDITIONS Despite the Redevelopment Agency's efforts, certain blighting conditions remOln as listed below: · Obsolete and substandard commercial buildings located within the project area. . Inadequate and substandard public parking facilities. · Undersized waterlines and other utilities in areas transitioning to higher density development. · Small porcel!dysfunctionallot configuration with multi-ownerships hindering consolidation for effective development. · Commercial rental and lease rates below average Citywide rates. · The average commercial parcel is assessed at a ratio of 35% land to 65% improvements demonstrating 0 somewhat underdeveloped commercial density. SPECIFIC GOALS AND OBJECTIVES FOR THE PROJECT AREA II To further eliminate blighting conditions described obove, the following goal and objectives have been established in the Town Centre I Redevelopment Plan: . PAGE 3 5-10 DRAFT TOWN CENTRE I REDEVELOPMENT PROJECT AREA :Jive year Imy{ementation p{an for years 2000 - 2004 GOAL The goal of the Town Centre Redevelopment Proiect is to revitalize the Town Centre area as the commercial-civic focus of the City. OBJECTIVES . Eliminate blighting influences, including incompatible and noXIOUS land uses, obsolete structures and inadequote parking focilities. . Eliminate environmental deficiencies including, omong others, small and irregular lot and block subdivisions, several poorly planned streets, and economic and social deficiencies. . The strengthening of the mercantile posture of Town Centre and the improvement of retail trade therein. . The renewal of Town Centre's physical plant and the improvement of its land use patterns and spatial relationships. . The retention and expansion of viable land uses, commercial enterprises, and public facilities within the area. . The attroction of capital and new business enterprises to the core areo. . The comprehensive beoutification of the areo, including its buildings, open space, streetscape, and street furniture. . The encourogement of multi-family, middle-income residential units in and near the core area. . The possible accommodation of future local and regional mass tronsit ond related facilities; improvement of off-street parking areas and provision for a mini-transit intro- project system. . The establishment of design standards to assure desirable site design and environmental quality. . The reorientation of the people of Chula Vista to their core area, and the resultant promotion of sense of "towness" (towness is a unique feeling spawned by an emotional relotionship between people and their city. This feeling is founded upon a sense of belonging. When the people feel that they belong to their city ond thot their city belongs to them, a state of towness exists). PROGRAMS, PROJECTS AND EXPENDITURES PROPOSED FOR THE NEXT FIVE YEARS II Major programs proposed over the described below. next five years and estimated total expenditures are . PAGI 4 5 -11 DRAFT TOWN CENTRE I REDEVELOPMENT PROJECT AREA Jive year Imy{ementation P{an for years 2000 - 2004 Specific projects may be listed under each progrom. These serve as examples of projects which may be undertaken by the Agency. However, other projects which meet the program requirements may also be pursued. The costs described are bosed upon onticipoted tax increment cash flow over the next five years net of debt service and administrative costs. H STREET/THIRD AVENUE Consolidation of small parcels and coordinotion of the redevelopment of under-utilized properties in the vicinity of the South Bay Regional Center. Aaency Owned Property The Agency currently owns approximately .5 acres (4 small lots) of property located at the northwest corner of Third Avenue and H Street. These parcels will be consolidated and cleared for redevelopment with higher intensity land uses. Adjacent property owners will be encouraged to participate in the Agency's project. Private Small Parcels Several small parcels located along Third Avenue in the vicinity of H Street are developed with residential units that hove been converted to commercial offices. Redevelopment of these units will be encouraged. Staff time and consultant costs over the next five years are estimated at $149,700 for Agency owned property and $33,600 for private small parcels. Redevelopment incentive ond ossistance dollors will vary depending on the value of development proposed and resulting tax increment projected to be generated by individual projects. LEADER BUILDING SITE REDEVELOPMENT The Leader Building located at 221 Third Avenue has been vacant for a number of years. The owner of the property also owns an odiacent vacant building and parking lot. The total land area is about .5 acres. The Redevelopment Agency, with the cooperation of the property owner, published a Request for Proposal for the redevelopment of the .5 acre site. It is anticipated that plans for the redevelopment of the property will be processed through the Agency during 2000 and 2001. It is estimated that approximately $50,000 is needed to bring the Leader Building up to Building Code Stondard and about $150,000 will be needed to update the building. Staff time, consultant services, and development assistance are estimated to be $91,300 for the next five years. 5 -12 . PAGE 5 DRAFT TOWN CENTRE I REDEVELOPMENT PROJECT AREA :Jive year Imy{ementation p{an for years 2000 - 2004 BUSINESS RECRUITMENT AND MARKETING By the early 1990's the Town Centre I Redevelopment Project reached a development plateau and the business environment stabilized at that time. Recently, the area has experienced an increase in commercial vacancies. To prevent the continuation of a downward trend and to renew the vitality of the Downtown, the Redevelopment Agency published a Request for Proposal for Business Recruitment Services. It is anticipated that a business recruitment program will be in place during year 2000. Marketing tools (such as brochures etc.) moy be necessory to be developed to complete the recruitment effort. Stoff time, consultant services, and morketing tools are estimated at $110,000 for the next five yea rs. UPDATE EXTERIOR DESIGN GUIDELINES AND ESTABLISH A FAfjADE IMPROVEMENT PROGRAM Desian Guidelines The Design Manual for the Town Centre Redevelopment Project was prepared in 1976 and was amended once in 1980. Design guidelines for the exterior appearonce of the Downtown Business District are in need of updating. A juried design competition is planned to stimulate creative solutions to existing design issues. It is the goal of the competition to improve and authenticate the existing eclectic architectural form present in the Downtown without losing the "Sense of Place" that is currently provided by that substructure. Approximately $10,000 is anticipated for staff-time and $25,000 for consultant services and printing. Facade Proarom To implement the new design guidelines, the development and implementation of a Fa~ade Improvement Program in the Downtown area is planned to encourage renovation ond upgrading of existing buildings to eliminate obsolete and substandard exterior structurol forms. Staff time for the next five years is estimated to be $20,000. Funding for the matching fund program is estimated to be $75,000/year for four years totoling $300,000. COMMERCIAL REHABILITATION LOAN PROGRAM A commercial rehabilitotion loan program will be developed to serve as on incentive for tenants to upgrade or expand their businesses within the Town Centre I. The program is anticipated to target existing and new businesses that would be beneficial to the redevelopment effort and assist in achieving the Redevelopment Project goals and objectives and the Downtown Vision. A multi-tier program is envisioned with maximum loon limits for each tier and the business owner would be required to motch a percentage of the loan. . PAGE 6 5 -13 DRAFT TOWN CENTRE I REDEVELOPMENT PROJECT AREA Jive year Imy{ementation 'F{an for years 2000 - 2004 Staff fime for the next five years is estimated ta be $20,000. Funding to support the loan program is estimated to be $150,000 through year 2004. E STREET ENTRYWAY The Redevelopment Agency has approved the concept of creating a defined entrance to the Third Avenue Downtown orea. The northern entryway at E Street was selected and will require alteration of Third Avenue south of E Street. An island(s) for installation of a distinct feature related to Downtown is planned to be installed. A design competition is planned to develop a creative entry statement that will invite through traffic on E Street into the Downtown area. Grant money is being investigated to supplement Agency funding. Staff time to complete the street alterations and conduct the design competition, consultant services, and cost to construct the entry statement are estimated at $90,000 to $120,000. DOWNTOWN BUSINESS ASSOCIATION/PROMOTIONS Agency stoff will continue to guide ond assist the local merchont's association, (Downtown Business Association) DBA, in implementing the Main Street Program concept of monaging the commercial downtown area to strengthen and support the economic viability of the Chula Vista Downtown. The Downtown Business Association will endeavor to develop and coordinate major promotional events to attract local residents and to establish an expanded customer base by drawing residents from the sub-region. The Downtown Business Association organizes and administers promotional events and implements strategies to increase ond maintain a healthy customer base, and develops relationships among the business owners. Agency staff will work with the Downtown Business Association to provide business education opportunities and development of financial resources for the benefit of the Town Centre redevelopment effort including investigotion of alternative business improvement orgonizational structures such a property based B.I.D. Staff time, consultants' fees, and promotional assistance for the next five years is estimated to be $235,000. JOINT PUBLIC/PRIVATE PROGRAMS The Redevelopment Agency anticipotes joint public/private programs such as: 1) a demonstrotion exterior renovation project, 2) Downtown banner project, 3) redevelopment of private properties such as those located at the corners of E Street/Third Avenue, and 4) 0 moderate income residentiol project. Other similar type projects that will have ioint public and privote participation that will benefit the Project Areo both physically and economically will be considered for implementation. Costs for these types of activities would vary depending on the extent of the effort and degree of Agency porticipation. . PAGE 7 5-14 0~~~AFT TOWN CENTRE I REDEVELOPMENT PROJECT AREA :Jive year Imy{ementation p{an for years 2000 - 2004 Staff and consultant costs ot this time are estimated to be $100,000 with odditianal casts far project implementation. PUBLIC PARKING FACILITIES Upgrade inadequate and substandard public parking facilities by adding and improving night lighting and installing landscaping to create a safe and inviting environment far Downtown patrons. Acquisition of additional land to create adequate public parking facilities for the Project Area may be required. The Downtown Parking District is located within the Town Centre Redevelopment Project Area. Currently, the District includes approximately 1000 public parking spaces. About half of those spaces are located within public parking lots. Severol of the existing parking lots (lots 1,3,4,5,6 and 7) are alder and hove limited lighting and landscaping. These substandard facilities need to be upgraded within the next five years to improve the business environment of the Downtown commercial areo. The cost most likely will be shared by the Parking District and in-lieu parking fund with assistance or loans from the Redevelopment Agency. In addition to parking improvements, an analysis of the Parking District, meters, and alternative ways to operate the District will be conducted. Alternatives to resolve current parking issues will be presented to the public, the local business associotian and the Council! Agency. Staff time and consultant services for the next five years are estimated to be $32,000, and casts of upgrading parking lots within the next five years is estimated at $600,000. CAPITAL IMPROVEMENTS Identification, plan development, and implementation of copital improvements where public facilities, including utility services, are undersized or substandard for areas transitianing to more intensive lond use development. As capital projects are identified and become necessary to implement the Plan's goals and objectives they will be introduced with cost estimates to the City/Agency. SOUTH BAY REGIONAL CENTER The County of San Diego prepared a revised moster pion for the South Bay Regional Center located in the Town Centre I Redevelopment Project Area. The plan now includes the development of a new court building and parking structure an the existing site at the southwest corner of Third Avenue and H Street. The new facilities are planned to accommodate almost 100,000 sq. ft. of office and courtroom space and 790 parking spaces by the year 2017. The total project cost estimate is approximately $81 million. County funding sources have not been identified. . PAOI 8 5 -15 DRAFT TOWN CENTRE I REDEVELOPMENT PROJECT AREA :Jive year Imy{ementation 'F{an for years 2000 - 2004 REDEVELOPMENT OF THIRD/ALVARADO SITE In 1996, the Redevelopment Agency conveyed to the Sweetwoter Union High School District opproximotely 2.4 acres of property located at the northwest corner of Third Avenue and Alvarado Street for the purpose of constructing the District's administrative offices. In the neor future, the High School District anticipates the need to issue approximately $200 Million in bonds to rebuild 30 year ond older schools, which is a priority. Following that action, the District plans to investigate the reconstruction of District administrative offices on the Third Avenue and Alvarado Street site, which would consist of a 40,000 sq. ft. facility. The District's administrative offices would provide a major customer base for Town Centre I merchonts and service providers. Staff and consultant costs to assist the Sweetwater Union High School District in developing plans are estimated to be $50,000 over the next five years. An additionol amount may be necessary to participate in public infrastructure improvements, studies, and environmental review (estimated at $125,000). How GOALS, OBJECTIVES, PROGRAMS AND EXPENDITURES WILL ELIMINATE BLIGHT The impact that goals, objectives, programs and expenditures will have toward the alleviation of blighting influences as cited in the Redevelopment Plan is described below. The impact of programs is also summarized in Table 2. GOALS AND OBJECTIVES The goal and objectives, were specifically developed to alleviate conditions of physical economic blight which impede development in the Project Area. The goal established for the Project Area (in the Redevelopment Plan) specifically calls for the revitalization of the project area and the obiectives reference the use of the redevelopment process to eliminate and mitigate all aspects of blight. The objectives address blighting conditions impeding the development of properties in the Project Area include incompatible land uses, inadequate parking facilities, and the elimination of environmental deficiencies. In addition, the objectives identify the need to strengthen the mercantile posture of the Town Centre and to reorient the residents to their historic town center as well as to attract new business. PROGRAMS AND EXPENDITURES The program expenditures related to the vicinity of H Street/Third Avenue will target the elimination of blight such as obsolete structures and smoll and limited parcels and will provide the opportunity for higher density development on a currently underutilized commercial site. Aesthetic improvements will further the comprehensive beautification effort and revitalization of the properties which will benefit the economic heaith of the Project Areo. . PAGE 9 5 -16 DR';' ....c..,.. . J.," .~ ~ r;;;':..;.~ ~ TOWN CENTRE I REDEVELOPMENT PROJECT AREA :Jive year Imy{ementation P{an for years 2000 - 2004 The Agency's liaison with the Downtown Business Association and staff guidance will continue to promote economic improvement within the Project Area through attraction and retention of viable businesses. The Agency's support of the DBA and town management activities will assist in strengthening the mercantile posture of the Downtown and will further the establishment of the downtown os a principal center for specialty goods and services which will increase the area's economic viability and increase its potential to generate property ond sales tox. Business recruitment activities, the Fo~ade Improvement Program and the Commercial Rehabilitation Program will provide catalysts to redevelop underdeveloped parcels and sites with obsolete and substandard structures. These programs also are onticipoted to aide in increosing currently below market leose rates. Redevelopment of the Leader Building site and creation of the E Street entry way will contribute toward the economic development of the Project Area. Expenditures planned for capital improvements and parking lot upgrades will eliminate obsolete utilities and inadequate parking facilities. These infrastructure improvements olso will work toward the retention and expansion of viable land uses within the Town Centre. Joint public and private programs will encourage the beautification of the Project Areo and will creote on improved business climate which will attract new business ond will encourage residents to revisit their downtown. The redevelopment of the Third Avenue/Alvarado site will implement the goal of the project by eliminoting environmental deficiencies ond providing the revitalization of underdeveloped property. EXPLANATION OF How THE GOALS, OBJECTIVES, PROJECTS AND EXPENDITURES WILL IMPLEMENT PROJECT HOUSING REQUIREMENTS GOALS AND OBJECTIVES California's Community Redevelopment Law requires that not less than 20% of all tax increment generated by the Project shall be used for the purpose of increasing or improving the community's supply of very low, low and moderate income housing. The law requires that at least 15% of all new or rehabilitated dwelling units developed with housing assistance by entities ather thon the Agency or rehabilitated dwelling units developed with housing assistance by entities ather than the Agency in a Redevelopment Project Area be affordable to low and moderate income households, of which 40% must be for, or occupied by, very low income households. Additionally, affordable dwelling units shall remain affordable for the longest feasible time (usually 55 years) but not less than the period of land use controls established in the Project Plan (currently 25 years, but anticipated to be amended to 40 years). . PAGe 10 5 -17 DRAFT TOWN CENTRE I REDEVELOPMENT PROJECT AREA :Jive year Imy{ementation P{an for years 2000 - 2004 PROJECTS AND EXPENDITURES TO BE MADE DURING THE NEXT FIVE YEARS · Annuol housing production goals have been established Citywide. See the attached City of Chula Vista Housing Implementation Plan. · Estimated number of law/moderate income housing units to be destroyed in Years 1-5: There are over 500 residential units located within the Town Centre Project Area. Approximately 25% of the housing stock includes single family detached dwellings and 75% includes multi-family, apartments and townhouses. For the most port, the single family detached dwellings are of older stock and sit on small lots. Many are currently co-mingled with commercial uses and 0 number have been converted into commercial structures. . Replacement Housing Site: Replacement of any displaced residential units through the use of the 20% housing set-aside funds from the Project Area will be in accordance with the Citywide housing policy which is described in the City of Chula Vista Housing Implementation Plan, Section V. . Low/Moderate Housing Fund Expenditure Program: The Town Centre Redevelopment Project Area sets aside 20% of the Project Area's tax increment for the Agency's Law/Moderate Income Housing fund. Estimated deposits and expenditures ore included in the City of Chula Vista Housing Implementation Plan, Section V. . Housing Production Plan See City of Chula Vista Housing Implementation Plan, Section V. . Low/Moderate Income Housing Production Results See City of Chula Vista Housing Implementation Pion, Section V. . PAGE 11 5 -18 DRAFT TOWN CENTRE I REDEVELOPMENT PROJECT AREA :Jive year Imy{ementation p{an for years 2000 - 2004 TABLE 1 PROJECT AREA PROFILE LAND AREA: BOUNDARY: LAND USE: DATE ADOPTED: DATE OF AMENDMENTS: TERM LIMIT: TAX INCREMENT LIMIT: BONDED INDEBTEDNESS LIMIT: PROJECTED TAX INCREMENT.: 138 acres Third Avenue is the Project Area's central north-south circulation spine. E Street bounds the project in the north and I Street is the Praject's southern boundary. The east-west boundaries vary, extending to Fourth Avenue ot its larthest point west ond to Del Mar Avenue at its larthest point east. Includes: High and Medium-High Density Residential Prolessional and Administrative Commercial Retail and Service Cammercial Public and Quasi-Public Uses July 6, 1976 1 ,I Amendment 20d Amendment 3,d Amendment 41h Amendment 51h Amendment July 6,2016 $84 million $20 million FY 1999-00 FY 2000-01 FY 2001-02 FY 2002-03 FY 2003-04 TOTAL 07/17/79 04/22/86 01/04/94 11/08/94 06/23/98 TAX INCREMENT $960,396 987,401 1,015,129 1,043,771 1,073,347 $5,080,044 LOW & MODERATE SET ASIDE $192,964 200,560 208,471 216,537 224,770 $1,043,302 'Based an CITY OF CHULA VISTA REDEVElOPMENT AGENCY PROPERTY TAX 5-YEAR PROJECTIONS reported by Finance Department 9/3/99 . Paol 12 5-19 g- el: "I' La.. III <:> >- IlIl <:> ..c <t '" -0 C '" ~ u I- <:> ~ ~ <:> U <:> 0 C III '" '" .. ..c 0 l.: IlIl ':S .~ a. <ll ~ >> 0 ~ I- l- ~ 0 Z'-S '" ~ III .: <C :E~ ti '" a.~ '0' o .: ~ "- ... <:> ~ c: III '.. '" >'-' E III~ c. " .: 0 Q) III <ll > a:~ ... '" Z -0 '" -~ " a< - III ~ .. 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Q) ::E 0 "- E > III ~ - it > '" c: 0 "'<C '" -0 '" 0 '" Q1 c ---- -0 c: C "..;::::: c: -0 CI '" 0 0 '" '" '" 0 Q) 0 ~ '" ~ III a< .t '';:: ~ U :.c :J ~ -0 0 "- C III c: 2 c: :.c I- '" '5 E '" 'u '" '0 '" E - - ~ Vi .E ~ 0 f; 0 ~ 0 c: 0 ~ 0 III g '" ~ > Ll.. '" 0 C III '5 c: a< ! "- 'C g > .~ to III -0 ~ .20 -0 "- 0 '" ~ 31 u ---- ~ '" ~ ~! :.c '" '" 0 c: :;; a< S '5 a< '" 'u c: 0 .>! ~ E f; lD '" 0 ~ u.J 0 ..c 0 0 '" '" '" '" ~ :J "- lD Oi Zo ~ '" E '" "- 0 '" '" ~ lD .>! > lIo ~ -0 c: 0 E '" '"9 ~ '" Vi IE ~ ;;1i C ..c :; 0 'in Vi -0 011I '" :J 0 '0 :J 0 0 '" toIL I -' lD ::J U u.J 0 ~ "- U Vl a< " .. OM o C I\, . 5-20 TOWN CENTRE II REDEVELOPMENT PROJECT AREA :five year Imy{ementation 'F{an 2000-2004 , .' .' , ~ . . .. - - , . .. ~ . .' .....: -...- '-, , ~_.~ .~~-----._" ~h ..,-.- \',<?:>:, /,- . ....."'H ;<<"" ~., Q',: .- .- '10_ NIRlI -a~dr - f \., _ - "'" ) '.~-:-,\ -TO_ .CI~ " '<'"" . '- .' . " . -,' '.. .'. ~."- . --- .--~- " A " '-_A --._--- 5 - 21 t"'\,~' AFT W~~' Ii TOWN CENTRE II REDEVELOPMENT PROJECT AREA :Jive year Imy[ementation p[an for years 2000 - 2004 INTRODUCTION The five-year implementation plan for the Town Centre II Redevelopment Project Areo is adopted to meet the requirements of Section 33490 of the California Health and Safety Code. This five-year implementation plan covers the period from January 1, 2000 through December 31, 2004 and supercedes the plan originally odopted for the period 1994 through 1999. The plan is a flexible policy document and not a limitation on the Redevelopment Agency's activities in this project area over the coming five years. BACKGROUND The Town Centre II Redevelopment Project Areo, located in the downtown area of Chula Vista, was adopted by the City Council on August 15, 1978. The original project included the Chula Vista Shopping Center and Sears retail center, and comprised a total of 65.41 acres. The purpose of this project was to unite and renovate these two commercial centers into a contiguous modern and competitive regional shopping center. The Town Centre II Redevelopment Plan was amended in May 1987 to incorporate the authority to obtain tax increment revenues in accordance with California Community Redevelopment Law. This authority was not included in the originolly adopted Redevelopment Plan. As part of the negotiations with affected toxing entities pertaining to the inclusion of tax increment financing, the Agency agreed to amend the proiect a second time to add additional territory. The second amendment, adopted in June 1988, facilitates various school district proiects and promotes redevelopment of blighted land uses in the additional territory. In total, ten sites totaling 75.7 acres were odded to the Project Area by the second amendment. The original duration of the Redevelopment Plan was 45 years until the year 2032. Pursuant to California Health and Safety Code Section 33333.6, the Plan was amended to reduce the duration to 40 years or 2027. Financiallimitotions hove been established as follows: A limit of $42.5 million of taxes which may be divided and allocated to the Agency or, if bonds are issued or reimbursement agreements are entered into with other public agencies ond/or private entities, a cumulative total of $100 million plus the amounts included in any reimbursement or other agreements with affected taxing entities. The Implementation Plan is intended to be a flexible policy document to guide Agency activities over the next five years (2000 through 2004), and is not intended to represent a limitation on Agency activities. The programs/proiects included in the Implementation Plan are those priority programs anticipated to be implemented during the next five years. However, these programs/projects are not all of the programs/projects necessary to eliminate blight in the proiect area. The Redevelopment Project Area boundaries ore described on the attached map (Exhibit A). . PAOI 1 5-22 OnAlFT . t_~,>. ~_ g TOWN CENTRE II REDEVELOPMENT PROJECT AREA :Jive year Imy(ementation P(an for years 2000 - 2004 BLIGHTING CONDITIONS PRE. PLAN ADOPTION CONDITIONS The Redevelopment Pion identifies the following blighting conditions in the original Project Areo: . Incompatible land uses; . Obsolete structures; . Inadequate parking facilities; · Unsightly or unattractive signoge and graphics, general lack of design standards; and · Inadequate land use and townscape planning which hos had a negative impact on businesses and neighboring residential land uses in the Project Area. The 1988 Plan Amendment established the following blighting influences for the expansion area: . The need to recycle under-utilized parcels to accommodate higher and better economic uses improving the financiol viability of the community as a whole; · The need to upgrade the general oesthetics of the older commercial enterprises to improve their economic viability and their ability to compete with newer commercial areas both within the City of Chula Vista and adjacent communities; . The need to address street improvements; · The existence of parcels of property that are of irregular form ond shape or inadequately sized for property usefulness and development; . The existence of obsolete and/or dilapidoted structures; and . The need to promote continued redevelopment of the Downtown Business District. PROGRESS IN ELIMINATING BLIGHT Since the adoption of the Redevelopment Plan in 1978, the Redevelopment Agency has worked to eliminate certain of these conditions through the following efforts: · Provided financial and planning ossistance for two expansions of the Chula Visto Center Regional Mall, adding over 220,000 square feet of new commercial space including a fourth major department store, parking structure, ten-screen cinema and new moll shops linking the Broadway and Seors stores. · Closed Fifth Avenue between H Street and I Street to facilitate expansion of Chula Vista Center. · Relocated the Girls' and Boys' Club (previously located within Chula Vista Center) to a . Paol 2 5-23 0' . fi"\>,,' A!t:l ;)5~{ '0 TOWN CENTRE II REDEVELOPMENT PROJECT AREA :rive year Imp{ementation P{an for years 2000 - 2004 new, modern facility severo I blocks away to continue to serve the western section of the City. . Designoted Scripps Memorial Hospital os developer for an eight-ocre parcel locoted at the northeost corner of Fifth Avenue and H Street. The project includes exponsion of hospital facilities located on the adjacent parcel and construction of medical offices and parking facilities. . In conjunction with the Scripps Memorial Hospital proiect, successfully relocated youth serving facilities including Rollerskatelond and Fiesta Twin Cinemas to new facilities located near their old sites. . Private development has provided 90 units of moderate priced rental housing in the Project Area. . Purchased property for the expansion of City Hall employee porking. . Assisted with the development of the WalMart site at the northern end of Broadway, including the development of 160,000 squore feet of commercial development. CURRENT CONDITIONS Despite progress made to dote, certain blighting conditions remain which will impact future commercial and residential development. These include: . Blighted, underdeveloped or vacant contiguous parcels of irregulor shope with multiple ownerships which need to be consolidated for redevelopment purposes to provide higher and better economic use of property. . The need for street improvements including the provision of adequate access for development of commercial parcels. . Overcrowded conditions at public schools within or adjacent to the Project Area. . Existence of obsolete and/or dilapidated structures. . Incompatibility of the Sweetwater Union School District headquarters with surrounding low-density residential development. . City Corporation Yard currently an incompatible use set to be relocated to a more suitable site. SPECIFIC GOALS AND OBJECTIVES FOR THE PROJECT AREA II To address the blighting conditions listed above, the following goals and established in the Redevelopment Plan (including the amendments): objectives were . PAGE 3 5-24 fj,p ^ !l:T 1kJ" dv.. Ill~rr- TOWN CENTRE II REDEVELOPMENT PROJECT AREA :Jive year Imy[ementation p[an for years 2000 - 2004 PROJECT GOAL The gool of this redevelopment project is to eliminote existing blighting conditions, revitalize the Town Centre II Project Area as the principal regional shopping center of the South Bay, to focilitate various school projects and to promote the redevelopment of property within the Project Area. OBJECTIVES OF THE PLAN . Elimination of blighting influences, including incompatible land uses, obsolete structures, inadequate parking facilities, unsightly or unattractive signage and graphics, and inadequate londscape ond townscape plonning. . Elimination of environmental, economic, sociol, planning, ond physical deficiencies. . The strengthening of the mercantile posture of Town Centre II, and the improvement of retail trade .therein. . The renewal of Town Centre II's physical plant and the improvement of its land use patterns and spatial relationships. . The retention and expansion of viable land uses, commercial enterprises, and public facilities within the area. . The attraction of capital and new business enterprises to the project areo. . The comprehensive beautification of the area, including its buildings, open space, streetscape, street furniture, graphics, and signage. . Protection of peripheral residential enjoyment and land use integrity. . The accommodotion of future local and regional mass transit and reloted facilities; improvement of off-street parking areas and provision for improved mass transit systems. . The establishment of design standards to assure desirable site design and environmental quality. . The fostering of cooperation between the Town Centre II Project Area ond the Chula Visto Town Centre I Project Area and the protection of the goals, objectives and economic resurgence of the latter. . The continuing promotion of Subareo 1 of the Chula Vista Town Centre II Project Area as the principal center of specialty-goods purveyance in the South Bay Subregion. PROGRAMS, PROJECTS AND ExPENDITURES PROPOSED FOR THE NEXT 'IVE YEARS I The preliminary list of Redevelopment programs and projects provided below represents a list of staff-identified actions that, if implemented, will have 0 direct positive effect on the elimination of blighting influences in the Proiect Area. Inasmuch as the proposed progroms . PAGE 4 5-25 F" 71"'" P. ~JL"'tr"UI t"""""~ .'::t ~.~ ~ b..t\",i,~~.....~ m TOWN CENTRE II REDEVELOPMENT PROJECT AREA :Five year Imy(ementation T(an for years 2000 - 2004 need to be evaluoted during the course of annual budgetory opproval actions, the proposed expenditures hove not been fully determined, and in most instances, will be a function of avoiloble redevelopment funding. The annual budget approvol process will be the framework within which staff-proposed programs will be evaluoted ond "compete" for funding approval by the Redevelopment Agency Board. Additional progroms are needed to completely eliminate blight in the Project Area, but the programs described in this section are proposed ta be implemented over the next five years. The costs described are based upon anticipated tax increment cash flaw aver the next five years net of debt service and administrative costs. RELOCATION OF CITY PUBLIC WORKS YARD SITE The City Public Works Yard occupies six ocres adjacent to the Bayfrant San Diego Tralley Station. The City has secured far a new public warks yard site in the Otay Valley Road Praject Area, which will be more centrally located as the City continues ta grow eastwardly. In order for the current yard site ta be redeveloped, a feasibility analysis is desirable to determine the highest and best use for the site. Marketing and development af the site for redevelapment will require additional staff and pragram costs. The cost for this activity is estimated as fallows: RELOCATION OF CITY PUBLIC WORKS YARD SITE AND DEVELOPER SOLICITATION FOR VACATED YARD $100,000 WORK WITH SCHOOL DISTRICTS TO FACILITATE EXPANSION AND RELOCATION NEEDS Agency staff will work with the Chula Vista School District and Sweetwater Union High School District towards resolving focility needs, including expansion of the Feaster/Edison Schoal site. Agency costs for these activities are estimated as follows: EXPANSION/RELOCATION OF FEASTER/EDISON SCHOOL SITE $100,000 REDEVELOPMENT OF COMMERCIAL SITES Agency staff will work with developers and praperty owners on a variety of commercial redevelopment projects on a case by case basis. Agency activities include developer solicitations and negotiatians, and implementation of development agreements. Possible specific actians include property acquisition and land assembly, land write-downs, infrastructure improvements and short- ond long-term planning efforts. These activities are estimated to cost approximotely $200,000 during the course of the five-year implementation plan. COMMERCIAL SITE REDEVELOPMENT COSTS $200,000 . PAO. 5 5-26 0'0 A""""" ~_:: '- i{,\" > It:';l; ;",,' , /1 0 ~~ .f;~.~~ fa ~ TOWN CENTRE II REDEVELOPMENT PROJECT AREA :Jive year Imy{ementation P{an for years 2000 - 2004 CIVIC CENTER MASTER PLAN As the City experiences significant growth and development during the period of this plan, additional needs for office spoce within the Civic Center complex is anticipated. CIVIC CENTER MASTER PLAN AGENCY DEVELOPMENT COSTS $250,000 How GOAU, OBJECTIVES, PROGRAMS AND EXPENDITURES WILL ELIMINATE BLIGHT The impact that goals, objectives, programs and expenditures will have toward the alleviation of blighting conditions as cited in the Redevelopment Plan is summarized below. The impact of the programs is also summarized on the attached matrix (Exhibit B). GOALS AND OBJECTIVES The goals and objectives, as discussed in the Redevelopment Plan, were specifically developed to olleviate blighting conditions in the Project Area. The original project goal was the revitalization of the Project Area (Chula Vista Center shopping center) as the principal regional shopping center for the South Bay. This goal was expanded as part of the second Redevelopment Plan amendment, to include the facilitation of various school district projects and redevelopment of Agency/Cijy facilities within the expanded project area. This will continue to require the alleviation of blighting influences as more specifically addressed by the objectives. The objectives specifically address the elimination of blighting influences including incompatible land uses, removal of obsolete and dilapidated buildings, and the need for beautification efforts and sign control to improve Project Area aesthetics. The objectives also stress the strengthening of the mercantile character of the Project Area with good townscape planning including sensitivity to the need to protect peripheral residential land uses. PROGRAMS The programs to redevelopment commercial sites will specifically address blighting influences of incompatible land uses, obsolete structures, irregular parcels, the need to recycle underutilized parcels for better economic use of property, and the need for street improvements. The programs to facilitate school district projects will address blighting influences of incompatible land uses, obsolete structures, inadequate parking, inadequate land use controls and better townscape planning. . PAOI 6 5-27 r~"", C:t, r;:r ~'..J ~..._~t1 S TOWN CENTRE II REDEVELOPMENT PROJECT AREA Jive year Imy{ementation P{an for years 2000 - 2004 The programs to relocate the City's Carporote Yard will provide a six-acre parcel in a prime location for major commercial redevelopment. These programs will address incompatible land uses (current usage), the need to recycle underutilized parcels to accommodate higher and better economic uses and the need to promote continued redevelopment in the downtown business district. The programs to accommodate the Civic Center Master Plan will address inodequate office space and parking. EXPLANATION OF How THE GOALS, OBJECTIVES, PROJECTS AND ExPENDITURES WILL IMPLEMENT PROJECT HOUSING REQUIREMENTS GOALS AND OBJECTIVES California's Community Redevelopment Law requires that not less than twenty (20) percent of all tox increment revenue generated by the Project Area shall be used for the purpose of increasing or improving the community's supply of very low, low, and moderate income housing. The law requires that at least fifteen (15) percent of all new or rehabilitated dwelling units developed with housing ossistance by entities ather than the Agency in a Redevelopment Project Area be affordable to low and moderate income households, of which forty (40) percent must be far, and occupied by, very low income households. Additionally, affordable dwelling units shall remain affordable for the longest feasible timeframe (usually 55 years), but no less than the period of land use controls established in the Project plan. PROJECTS AND EXPENDITURES TO BE MADE DURING THE NEXT FIVE YEARS . Annual housing production goals have been established Citywide. See Citywide Housing Gaols included in the attached City of Chula Vista Housing Implementation Plan. · Estimated number of low/moderate income housing units to be destroyed in Years 1-5: 48 mobilehome units . Replacement Housing expected to be produced. See City of Chula Vista Housing Implementation Plan, Section V. . Low/Moderote Housing Fund Expenditures expected. See City of Chulo Vista Housing Implementation Plan, Section V. . Housing Production Plan See City of Chula Vista Housing Implementation Plan, Section V. . Law/Moderate Income Housing Production Results See City of Chula Vista Housing Implementation Plan, Section V. . PAOI 7 5-28 ~-'.'''-'. \' .;) ',1 ~,~.- .~~":,.. 0':'~":;';j tJ TOWN CENTRE II REDEVELOPMENT PROJECT AREA :Jive year Imy[ementation P[an for years 2000 - 2004 CONCLUSION Adoption of the Implementation Plan shall not constitute an approval of any specific program, project or expenditure and does not change the need to obtain any required approval of a specific program, project or expenditure from the Agency or community. The projects described in the Implementation Plan are examples of undertakings that will meet the goals and objectives of the Redevelopment Project. Other projects that meet program requirements may also be pursued by the Agency. This is the second Implementation Plan for the Town Centre Redevelopment Project. This Pion will be reviewed by the Agency at least once within the five-year term af the Plan. The review, including a noticed public hearing, will take ploce no earlier than two yeors and no later thon three years following adoption of this second Implementation Pion. The Agency will hold a requisite public hearing ond adopt a new Implementatian Plan every five years from the date of adoption of this Plan The Implementation Plan moy be amended by the Agency at any time following a noticed public hearing. . PAGI . 5-29 "--= .) ~ ... ~ 1_ .f._.....:;] "J -') c ':j< III 0 IIlll 0 C '" .. 0 " 0 III 0 .. '" o 12 IIlll ~ A>, .. ;... Z~ III ::: :E~ Do.... o ::: .. 0 III ',", >.... III..::! a ::: III "" ~ 1:: ~ =~ III..... IIlll ;... .. ~ z "" III;::" " ~ zt::, == o .. .:1 {. ..... r,-,,:,! ! " o III: A. .. Z III :E a. o ... 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'v C -- -0 Q)-O C ::l-e.cOc ""00 --J ti ~ c :J~:Ju.,g :J__ ~..l:: 10.. c '+- 0 ...c(,l)20:;:-l200> .+=Q)o>-Vic~ c C_::>,,+=U:J::::,rn Q. Q) C'"..c'- IT.!: C "'U E 0 Q) rn~ Q.) cue o en -c "U; ~ -0 C >- C) u..nocEccua. co C::J(j.Ec... ~::J 5-30 '" " '" 'C 0. ~ " C lJ.J ~ o " 0. e ..c V) ~ -l!! 0 ~ E E (; " u... > ~ e e c.:; E g>" - t.!:::! "-V) ~ ..c IV en ."'!:: - -c ~ g ~ ~ g Q) ~-g z ~.E . OM " .. II. . . . . . . . . . . '" - ~ 0 :;) u :;) ~ Vi " " - e " '0. ..Q (5 - C " E 0. o ,,- > u Q) Oi: ~ .-; ""'0 " '" " '" ~ :;) " ~ .~.~ " C :;) C 0 CD e U C " ~ ~ Q) ..Q .E o-cC '" " ~ J:J " 0 o zo r"'~': , ' ~':';;;";'> ~ r:-""-' !.. I:; .:""1 ~~ !;""~jj tj TOWN CENTRE II REDEVELOPMENT PROJECT AREA jive year Imy[ementation P[an for years 2000 - 2004 TABLE 2 PROJECT AREA PROFILE LAND AREA: 141 .11 acres BOUNDARY: The Praject Area consists of eight separate areas in northwest Chula Vista, including the Chula Vista Shopping Center; and a separate area located in southwest Chula Vista. LAND USE: The Project Area consists of a variety of primarily commercial land uses, including the region's major shopping mall, the new WalMart Center, the City's existing Carparate Yard, and institutionallond uses. DATE ADOPTED: July 6, 1976 DATE OF AMENDMENTS: Adopted Amended Amended Amended August 1978 May 1987 June 1988 November 1994 TERM LIMIT: 2027 TAX INCREMENT LIMIT: $42.5 million BONDED INDEBTEDNESS LIMIT: $100 million CURRENT TAX INCREMENT FLOW: $732,000 after Low-Mod Set-Aside' .SOURCE: City of Chula Vista Estimate of Tax Increment Flow, FY 1999-2000 . PAO. 10 5 - 31 BAYFRONT REDEVELOPMENT PROJECT AREA :Jive 'Year 1111]J[ementation P[an 2000-2004 .. ----=-- , , '- .' ....: ..... . .. ....... ", , _.----.-~~~ ~-- , . ~-~\ .' G\.TO~-\ENTRII~ - ..----:-..( .-,,__<\ ..--/ d/;', c ? ! <: \'fl--<.J':;q ~--'? - ~, \. {'c'- \ ~ TOWN eENTRlII .~ " . " '. . ',. ~_. - t:. N ...-... 5-32 nOAFT LY]'\. BAYFRONT REDEVELOPMENT PROJECT AREA :Jive }fear Imy{ementation P{an for }fears 2000 - 2004 INTRODUCTION The five-year Implementotion Pion for the Bayfront Redevelopment is adopted to meet the requirements of Section 33490 of the Health and Safety Code. This plan is a flexible policy document and not a limitation on the Agency's activities in this project area. BACKGROUND The Original Bayfront Redevelopment Project, compnslng 637 acres, was established in 1974. The proiect areo was amended in 1998 to incorporate approximately 398 acres of Tidelands property within the jurisdiction of the San Diego Unified Port District. This project area, now encompasses property west of 1-5 to San Diego Bay from State Route 54 to L Street. The Redevelopment Area boundaries are described on the ottached map (Exhibit A). Historically, this area had a variety of land uses ranging from industrial to farming. Large sections of the project area, notably the Midbayfront and D Street Fill are undeveloped and lack infrastructure improvements. They also contain valuable wetland resources and provide access to the Son Diego Bay. Development of the Midbayfront has long been a maior goal of the City. Early plans for this area were not approved by the California Coastal Commission. Subsequent plans, approved by the Commission, were the subiect of litigation with the Sierra Club. Finally, in January 1993, a revised Local Coastal Plan (LCP) including substantiol conservation and development of the Midbayfront was approved by the City and the Coastal Commission. The project was never realized because of number of factors which rendered the project infeasible. The Specific Plan and the Local Coastal Plan require extraordinary dedication of land, development of public improvements, and long-term mitigation monitoring which hinder the ability to economically develop the property. The Agency is presently negotiating for the development of the Midbayfront as a mixed use community consisting of residential, hotel, entertainment retail and office uses. If the project moves forward as planned, groundbreaking should occur in late 2000. The original Redevelopment Pion had a duration of twenty-five years, which would have terminated in 1999. The Redevelopment Plan was amended in June 1998 to extend the life of the Plan to 2014 (the maximum allowed under State law), in addition to expanding the boundaries to incorporate the Tidelands properties. The Implementation Plan is intended to be a flexible policy document to guide Agency activities over the next five years (2000 through 2004) and is not intended to represent a limitation on Agency activities. The programs/projects included in the Implementation Plan ore those priority programs anticipated to be implemented during the next five years; however, they are not all of the programs/projects necessary to eliminote blight in the project area. 5-33 . PAOI 1 DRAFT BAYFRONT REDEVELOPMENT PROJECT AREA :Jive year Imp{ementation P{an for years 2000 - 2004 FINANCIAL CONDITION OF THE PROJECT AREA Finoncial limitations have been established for the project area as follows: The Agency cannot incur debt within the original orea beyond January 1, 2004 and June 23, 2018 in the added areo. The amount of bonded indebtedness to be repaid in whole or in part with tax revenues, cannot exceed $50 million at anyone time. The maximum amount of tax revenue which may be allocated to the Agency is $210 million over the life of the project area. The $210 million can be used for debt service on bonded indebtedness in addition to operating expenses and affordable housing set aside. BLIGHTING CONDITIONS PRE-PLAN BLIGHTING CONDITIONS When the project area was adopted in 1974, the reasons for the selection of the project area were the following: . The danger to the quality and quantity of the marine life due to uncontrolled development of a project area which contains such unique features as salt morshes and endangered wildlife species. . The decline in coastal environment, including recreation and aesthetic values, due to the uninterrupted water-related general industrial development in the South Bay area. Development of this nature is obviously contra-indicated due to the lack of deep water access. . The desire to create a modern urban commerciol/recreational center for the City of Chulo Vista where a range of activity from housing to recreation could take place and where a living and working environmental could exist for the use and enjoyment of the general public. . The existence of soil and groundwater contamination from hazardous materials that have depreciated property values and impaired investments and that can only be practically, economically remediated through the use of redevelopment powers. . The substantial existence of environmentally sensitive and degraded wetlands which require exlroordinary land dedication, restorotion, and long-term mitigation monitoring, all of which creote a substantial burden on the economic use of the praperties and result in depreciated volues and impaired investments. . The lack of public impravements and utilities, which combined with the blighting conditions listed above, creates a serious physical and economic burden on Chula Vista which cannot be alleviated practically by government or private activity without redevelopment powers. . PAGE 2 5-34 r''i; l\FT BAYFRONT REDEVELOPMENT PROJECT AREA :Five year Imp{ementation P{an for years 2000 - 2004 In addition, the report on the redevelopment plan states: "Because of the general industrial character of the South Bay, the proiect area represents ane of the last opportunities to provide public-oriented boyfront uses in this area..." PROGRESS IN ELIMINATING BLIGHTING CONDITIONS Since adoption of the Plan in 1974, the Agency has worked to eliminate certain of these conditions through the following efforts: . Prepared 0 Midboyfront Development Plan in conjunction with the londowner/developer and regulatory agencies. . Prepared and processed a Local Coastal Plan through the California Coastal Commission and received certification in February 1993. The pion includes all of the City's coastol properties, including the Bayfront Redevelopment Proiect Area. . Planned and constructed the Nature Interpretive Center in cooperation with the Bayfront Conservancy Trust. . Acquired and cleared properties for redevelopment along Bay Boulevard and completed the following redevelopment proiects: North of F Street: Soup Exchange Restaurant Anthony's Restaurant EI T orito Restaurant Days Inn South of F Street: Rohr Corporate Headquorters (now BF Goodrich) Marina Gateway Industrial Project . Successfully relocated auta wrecking businesses from the proiect area. . Acquired property for the reconfiguration of the CalTrans 1-805 southbound off-romp which has been completed along with the widening of E Street, west of 1-5. . Negotiated a three-party agreement with the San Diego Port District and BF Goodrich which will focilitate the consolidation and expansion of BF Goodrich's campus north of H Street; and the redevelopment of the campus south of H Street. . Entered into an Exclusive Negotiating Agreement for the development of the Midbayfront. . Amended the Bayfront Redevelopment Plan to extend the timeframes for redevelopment activities and to expand the project area to include the Tidelands Area. . Acquired dilapidated properties, demolished buildings and completed environmental clean up. . Developed Marina Park. . Assisted in the acquisition of the SDG&E generotion focility and negotiated favorable tox terms for the City. 5-35 . PAGE 3 '-I"'A' FT :' ~: ~~/; .; ~~'\.. BAYFRONT REDEVELOPMENT PROJECT AREA :rive year Imp{ementation p{an for years 2000 - 2004 CURRENT BLIGHTING CONDITIONS Despite the progress that has been mode to dote, existing blighting conditions in the proiect areo ore os follows: . The existence of soil and groundwater contamination from hozardous materials that hove depreciated property volues and impaired investments ond that con only be practically and economically remediated through the use of redevelopment powers. . The substantial existence of enviranmentally sensitive and degraded wetlands which require extraordinary land dedication, restoration, and long-term mitigation monitoring, 011 of which create a substantial burden on the economic use of the properties and result in depreciated values and impoired investments. . The lock of public improvements and utilities, which combined with the blighting conditions listed above, creates 0 serious physical and economic burden on Chula Vista which cannot be alleviated practically by government or private activity without redevelopment powers. . Underdeveloped and blighted properties that hove been unoble to be redeveloped with private activity alone SPECIFIC GOALS AND OBJECTIVES FOR THE PROJECT AREA To address the conditions listed in II C above, the following gools ore being pursued: . Stimulate Investment of the private sector in the full development of the Project Area. . Enhance depreciated property values and encourage private development by the elimination of the economic blight created by the existence of soil and groundwater contamination in the Bayfront. . Provide for the enhancement and dedication of salt marshes, the inclusion of development buffers from sensitive habitat, and financial support for long-term mitigation programs in 0 manner which will not burden development to the point of infeasibility by negotiating disposition and development agreements with developers ond by providing redevelopment-generated funding. . Provide for the delivery of public improvements in the project areo such os streets, trails, parks, and drainage facilities through the utilization of redevelopment-generated funding, thereby allowing for the eliminotion of the blighting burden of the existing inadequacy of such improvements and the obligation on the developer to unilaterally provide such improvements, thereby creating the opportunity for the orderly, desirable, and economically-viable redevelopment of the Bayfront. . PAGE 4 5-36 rll P lie f'"T [', ':..1l 1l.r BAYFRONT REDEVELOPMENT PROJECT AREA :Five year Imy(ementation P(an for years 2000 - 2004 PROGRAMS, PROJECTS AND EXPENDITURES PROPOSED FOR THE NEXT FIVE YEARS Major programs and related expenditures proposed over the next five years are described below. Specific projects moy be proposed under each program. These serve as examples of projects which may be undertaken by the Agency. However, other projects which meet the program requirements may also be pursued. The costs described are based upon anticipated tax increment cash flow over the next five years net of debt service and administrative costs. DEVELOP THE MIDBAYFRONT Since approvol of the Local Coastal Program for the Chula Vista coastal areas, including the Bayfront Redevelopment Area, staff has been working to develop the Midbayfront property. Staff is currently negotiating with a developer for the Midbayfront. The proposed project includes 650 hotel rooms, 1000 dwelling units, 170,000 square feet of entertainment/retail, 450,000 square feet of office, and park ond open spaces uses. It also includes funding for the City's Nature Center. Groundbreaking is expected to begin in late 2000 and be complete by 2005. Total staff costs are estimated at $75,000. The developer will be reimbursing the City for consultant costs. CLEAN UP CONTAMINATED PROPERTIES The Agency owns several properties on the Bayfront with contaminated soils. Clean-up of these properties has been initiated and is almost complete. The Agency is overseeing all c1eon-up activities. Completion of clean-up work is expected to cost $330,000, of which $130,000 will be attributable to the Agency in staff and consultant costs. FACILITATE THE REDEVELOPMENT OF PORT-OWNED PROPERTIES The Port District has recently acquired the San Diego Gas and Electric plant and is in the process of acquiring the BF Goodrich campus south of H Street. In addition the Port controls the Tidelonds properties that also have significant redevelopment potential. The Agency is interested in the redevelopment of these properties to a higher ond better use. The Agency will be working with the Port District to prepare a vision for reuse and in selecting developers. Estimated Staff and Consultant costs are estimated to be $100,000. 5-37 . PAOE 5 DRAFT BAYFRONT REDEVELOPMENT PROJECT AREA :Jive year Imp{ementation p{an for years 2000 - 2004 COMPLETE THE EXTENSION OF H STREET AND THE REALIGNMENT OF MARINA PARKWAY The development of the Bayfront area is hindered by inadequate circulation. The extension of H Street will provide additional freeway access ond will provide a direct link to the Tidelands properties. The realignment ond completion of Morina Parkway to E Street will complete the circulation network on the Bayfront. Successful redevelopment of the Midbayfront property can not occur without the completion of Marina Parkway. The construction of these two roadways will be coordinoted with the development of the BF Goodrich South campus and the Midboyfront. Estimated staff costs are $25,000. ABANDONMENT OF THE CORONADO BRANCH RAIL The Coronodo Branch roil line presently bisects the entire length of the Bayfront creating an impediment to redevelopment of affected properties and vehiculor and pedestrian circulation. Staff is working with the Port District, San Diego County, and property owners to facilitate the closure of this unused rail line. Staff costs are estimated at $20,000. How GOALS, OBJECTIVES, PROGRAMS AND ExPENDITURES WILL ELIMINATE BLIGHT The impact that goals, objectives, programs and expenditures will have towards the alleviation of blighting influences as noted in the Redevelopment Plan is described below and summarized in the attached matrix (Exhibit B). GOALS AND OBJECTIVES The goals and objectives, as stated in the Redevelopment Plan and in Section III above, will address blighting conditions caused by the existence of hazardous conditions, the extroordinary land dedication and long-term mitigation monitoring required by the existence of sensitive habitat, and the lock of public improvements in the Bayfront. The goals and objectives support the creation of a modern urban center; a focal point with an identifiable image which compliments the downtown commercial district. PROGRAMS The specific progroms and expenditures will eliminate blight as described below and summarized on the matrix attached as Exhibit B. . PAGE 6 5-38 FT BAYFRONT REDEVELOPMENT PROJECT AREA Jive year Imy{ementation P{an for years 2000 - 2004 Completion of Midbavfront Deve/ooment Aareement Staff is currently negotiating with a developer for the Midbayfront. The proposed project includes 650 hotel rooms, 1000 dwelling units, 170,000 square feet of entertainment/retail, 450,000 square feet of office, and park and open spaces uses. It also includes funding for the City's Nature Center. If successful, this development will eliminate economic blight by developing an underutilized property; facilitate the enhancement and dedicotion of sensitive habitat; and provide necessary public infrastructure and recreation areo. Cleanup of Contaminoted Properties At the time that the Bayfront Redevelopment Project was approved, it was not known whether any properties contained soil or groundwater contamination, and these issues were not specifically listed as blighting influences. Subsequently, the Agency has acquired a number of properties in the Midboyfront, three of which contain contaminated soils with possible impacts to the groundwater. Contamination must be addressed to comply with state regulations if these properties are to be redeveloped. Cleonup of these properties will address conditions caused by earlier uncontrolled development which create a danger to the quality of morine life and decline of the coastal environmeni. Clean-up of the properties is essential to eliminating the blighting effect of the depreciation of the subiect property. Facilitate the Redevelopment of Port-Owned Properties The Port District has recently acquired the San Diego Gas and Electric plant and is in the process of acquiring the BF Goodrich campus south of H Street.. In addition the Port controls the Tidelands properties that also have significont redevelopment potential. The Agency is interested in ottracting the private sector to redevelop these properties to a higher ond better use. Redevelopment of the properties will enhance depreciated property values; allow for identification and clean-up of contaminated properties; remove physical blight; and facilitate the completion of necessary public improvements. Complete the Extension of H Street and the Realianment of Marina Porkwav The development of the Bayfront area is hindered by inadequate circulation. The extension of H Street will provide an additional freeway access and will provide a direct link to the Tidelands properties. The realignment and completion of Marina Parkway to E Street will complete the circulation network on the Bayfront. Successful redevelopment of the Midbayfront property can not occur without the completion of Marina Parkway. The construction of these two roadways will enhance property values; facilitate redevelopment; and improve vehicular and pedestrian circulation. Abandonment of the Coronado Branch Rail The Coronado Bronch rail line presently bisects the entire length of the Bayfront creating an impediment to redevelopment of affected properties ond vehiculor and pedestrion circulation. Closure of this unused rail line will enhance the developability of the affected properties; allow for more cohesive planning; and improve vehicular and pedestrian circulation. . PaGE 7 5-39 D- "''''-: n --- ~ h... . ," i: . \!till I' BAYFRONT REDEVELOPMENT PROJECT AREA :Jive year Imy[ementation P[an for years 2000 - 2004 ExPLANATION OF How THE GOALS, OBJECTIVES, PROJECTS AND EXPENDITURES WILL IMPLEMENT PROJECT HOUSING REQUIREMENTS GOALS AND OBJECTIVES The Bayfront Redevelopment Project was adopted prior to January 1, 1976, the effective date of Section 33413, thus the inclusionary housing provision of Sections 33413(b) do not apply to the Bayfront Redevelopment Project. The project contributes 20% of all tax increment generated to the low/moderate income housing fund which provides Agency assisted housing both within and outside of redevelopment areas. Exhibit C further describes housing goals, production and funding. PROJECTS AND EXPENDITURES TO BE MADE DURING THE NEXT FIVE YEARS . Annual housing production goals have been established Citywide. See Citywide Housing Goals attached as Exhibit C. . Estimated number of low/moderate income housing units to be destroyed in Years 1-5: None - There are no low/moderate income housing units within the Project Area. . Replacement Housing Site: As part of the Midbayfront development, one thousand new housing units are proposed. The City's housing progrom requires that the developer provide 10% low/moderate income units (100 units) on or off-site. The developer hos indicated a preference to provide these units on-site. The provision of these units will be a condition of development and stipulated in the Development Agreement. . Low/Moderate Housing Fund Expenditure Program: The Bayfront Redevelopment Project redistributes 20% of the tax increments accruing from the Project Area to the Agency's Low/Moderate Income Housing Fund. Estimated deposits and expenditures are included in the Agency's Housing Plan, see Exhibit C. . Housing Production Plan See Exhibit C. . Low/Moderate Income Housing Production Results See Exhibit C. . PAGE a 5-40 DRAFT BAYFRONT REDEVELOPMENT PROJECT AREA :Jive year Imy{ementation P{an for years 2000 - 2004 MIDTERM REVIEW AND RE-ADOPlION AND AMENDMENT OF THE IMPLEMENTATION PLAN Adoption of the Implementation Plan sholl not constitute on opproval of ony specific program, project, or expenditure and does not change the need to obtain any required approval of 0 specific progrom, project or expenditure from the Agency or community. The projects described in the Implementation Plan ore examples of undertakings which will meet the goals and objectives of the Redevelopment Project. Other projects which meet progrom requirements may also be pursued by the Agency. This is the second five-year Implementation Plan for the Bayfront Redevelopment Project. This plan will be reviewed by the Agency at leost once within the five year term of the Plan. The review, including 0 noticed public hearing, will toke place no earlier thon two years and no later than three years after adoption of this Initial Plan. The Agency will bold 0 requisite public hearing and odopt 0 new Implementation Plan every five years from the dote of adoption of the Initial Plan. The Implementotion Plan moy be amended by the Agency at any time following 0 noticed public hearing. . PAOI 9 5-41 I- u.. <( ~ c '1' o cc 0 III '" IlIll C g .. 0 " '" III ~ ... <:S o <ll 1lIll~ A. l- ..<.2.., z :;:: 1II,s I"" ... :;:: o .~ ....... III <:S it~ A ~ III~ Illl~ ..~ Z l- o <:S IlIll <ll =::: ill: .c .8-, ! " o III ... too Z III :E a. o .. III t ~ III IIlIl .. o :al :.1 Q) .!: - >- ..c -c Q) U Q) ~ o Q) ..c .~ too Z " - .. . Z o III " Z III :t .. .. 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" :. o 5-42 DRilj:'Y BAYFRONT REDEVELOPMENT PROJECT AREA :five year Imy[ementation P[an Jar years 2000 - 2004 TABLE 2 PROJECT AREA PROFILE LAND AREA: Approximately 637 acres (existing Redevelopment Area) Approximately 398 acres (amended Redevelopment Area) The Project Area is bounded by Interstate 5 on the east, San Diego Boyan the west, State Route 54 to the north, and L Street to the south BOUNDARY: LAND USE: Industrial Commercial Central Resort Residential Park Marina Public Streets National Wildlife Refuge Water TOTAL DATE ADOPTED: July 16,1974 DATE OF AMENDMENTS: 1 st Amendment 20d Amendment 3,d Amendment 4th Amendment 5th Amendment TERM LIMIT: July 16, 2014 TAX INCREMENT LIMIT: $210 million BONDED INDEBTEDNESS LIMIT: $50 million 225 acres 66 acres 40 ocres 1 8 acres 60 acres 45 acres 1 8 acres 50 acres 342 acres 171 acres 1,035 acres 07/17/79 04/22/86 01/04/94 11/08/94 06/23/98 CURRENT TAX INCREMENT FLOW: $1,748,808 after Low-Mod Set-Aside* *SOURCE: City of Chulo Visto Estimote of Tax Increment Flow, FY 1999-2000 5-43 . PAo.,1 SOUTHWEST REDEVELOPMENT PROJECT AREA Jive year Imy{ementation P{an 2000-2004 -=-~--~~-=-==-""-- - " # .", . #'. " .,.... ..... - .. ... . ..: '.- " - " '. ."', i , , I ,.--- !:l N .-... ", 5-44 DRAFT SOUTHWEST REDEVELOPMENT PROJECT AREA Jive year Imp(ementation P(an for years 2000 - 2004 INTRODUCTION The second Five Year Implementation Plan for the Southwest Redevelopment Proiect Area has been prepared to meet the requirements of California Health and Safety Code Section 33490. This statute requires Agencies to prepare and adopt "implementation plans" every five years (the first implementation plan was prepared for the period from January 1, 1995 to December 31, 1999) that contain, among other things, the following: . Goals and objectives . Planned projects and expenditures . Explanation of nexus between Agency activities and the eliminotion of blight . Explanation of nexus between Agency activities and meeting State housing requirements The implementation plan is intended to be 0 flexible policy document to guide Agency activities over the next five years (2000 through 2004), and is not intended to represent a limitation on Agency activities. The progroms/projects included in the Implementation Plan ore those priority programs anticipated to be implemented during the next five years. However, they are not all of the programs/projects necessary to eliminate blight in the project area. BACKGROUND The Southwest Redevelopment Project Area is located in the southwestern corner of the City and comprises approximately 1,050 acres of commercial and industrial properties generally located along Interstate 5 (1-5), Broadway Avenue, south Third Avenue, and the Main Street corridors. The Southwest Project Area ("Project Area") was adopted on November 13, 1990, by Redevelopment Agency Resolution # 1132 and City Council Ordinance #2420. The Redevelopment Plan ("Plan") for the Project Area is based upon the Preliminary Plan formulated and adopted by the Chula Vista Planning Commission on May 23, 1990, and by the Chula Vista Redevelopment Agency on June 14, 1990. The Project Area was created in order to 1) eliminate conditions of blight which negatively impact industrial and commercial development and 2) to implement the Montgomery Specific Plan ("MSP"). PLAN LIMITS Financial limitations have been established os follows: Annual tax increment revenue limit of $15.0 million adjusted annually pursuant to the Consumer Price Index (CPI) for San Diego County. This annual revenue limit excludes 1) payments to taxing agencies pursuant to Section 33401 of the Redevelopment Low and Section 510 of the Plan, and 2) any funds required by Section 33334.2 of the Redevelopment Law and Section 534 of the Southwest Redevelopment Plan to be . PAGI 1 5-45 DRAFT SOUTHWEST REDEVELOPMENT PROJECT AREA :rive year Imy{ementation ']J{an for years 2000 - 2004 deposited by the Agency in a Low and Moderate Income Housing Fund. The current 1999 annual tox increment limit is $18.6 Million. Bonded indebtedness limit of $150.0 million outstanding at anyone time, adjusted annually pursuant to the CPI for San Diego County. The current 1999 bonded indebtedness limit is $186.1 million. Time limitations on the effectiveness of the Redevelopment Plan were originally established as follows: Thirty (30) yeors, or to 2020, to incur debt, Forty (40) years, or to 2030, for duration of pion. No limitotion on the receipt of tax increment revenue. Subsequent to the adoption of the Plan, mandatory plan authority time limits were established by the adoption of "AB 1290" [HSC Section 33333.6 (a)] by the California State Legislature. As a result, the Plan required: Amendment to reduce the time limitation to incur debt from 30 years to 20 yeors; and An omendment to estoblish a fifty (50) year limitation, to 2040, for the receipt of tox increment revenue. These amendments to the Plan were adopted by City Council ordinance on November 2, 1994. Eminent domain authority limits were established as follows: Except with the consent of the owner, residential dwelling units shall not be acquired through the use of eminent domoin when the dwelling units are being used for such purposes within land use designations or zoning classifications designated for such purposes under the adopted Specific and General Plans of the City of Chula Vista, or as hereinafter amended. As otherwise may be provided by law, no eminent domain proceeding to acquire property with the Project shall be commenced after twelve (12) years following the adoption of the ordinance approving and odopting the Pion. This time limitotion may be extended by amendment of the Plan. MONTGOMERY SPECIFIC PLAN GOALS The Project Area encompasses a significant portion of the non-residential portion of the "Montgomery" community which was annexed from the County of Son Diego in December 1985. Prior to incorporation, this area had been subject to years of governmentol neglect and lower development standards than nearby properties located within the Chula Vista city limits. . PAOI 2 5-46 DRJ.2lrY SOUTHWEST REDEVELOPMENT PROJECT AREA :Five year Imy{ementation P{an for years 2000 - 2004 This was primarily due to the practice of the County General Plan to be odministered from a IIregionalll perspective in lieu of a more local and specific IIcommunity" perspective. Throughout 1988, "ports" of the MSP were odopted by the City Council in order to help facilitote the tronsition from San Diego County authority to the City of Chula Visto authority. Prior to the adoption of the MSP, (and to 0 much lesser degree after adoption), implementation of the City's General Plan has primarily consisted of administration of the County Zoning Plan, subdivision ordinonces and general development design criteria. The Project Area was established to, among many other things, implement the MSP. The MSP is obviously more detailed than the General Plan, but also included several significant "Study Areas" which require additional planning in the future. The planning of these "Study Areas" ("Faivre Street" and ''West Fairfield") represent a project goal over the next five years. By virtue of the interrelated nature of the MSP and the Redevelopment Plan, the proposed goals, objectives, programs and projects will help further the goals of the MSP. BLIGHTING CONDITIONS PRE. PLAN CONDITIONS As provided in the Ordinance and the MSP, the conditions of blight include but are not limited to the following: · Inadequate public improvements, public facilities, open space, storm woter droinage facilities, and utilities. · Subdivision and sale of lots of irregular form and shape. Many of the lots ore of an inadequate size and lack sufficient access thereto or lack of off-street parking to permit proper usefulness and marketability. . Lack of adequate community focilities. · Deteriorated or dilapidated commercial, industrial, and residential buildings. · Mixed commerciol and residential land uses which are defective in design and/or physical character. · Visual blight characterized by, among other things, an abundance of outdoor storage and open yard/compound uses, junk yards and other marginal type businesses. · Insufficient or incomplete local planning charocterized by several "Special Study" areas that have not been converted from County to City land use ond zoning designations. PROGRESS MADE TO ELIMINATE CONDITIONS Elimination of blighting influences in the project area has been made difficult by several factors, including a lack of financial resources and the five year Colifornia economic recession during the early and mid-1990s. This is not to suggest, however, that the Agency . PAGE 3 5-47 """'- ,'-- U l!~' H~~~=' ~~ SOUTHWEST REDEVELOPMENT PROJECT AREA :Jiye year Imy(ementation P(an for years 2000 - 2004 has not been octive during the past eight years of the project. The following provides a general list of Agency activities since January 1991. . Successful completion of the "Palomor Trolley Center" commercial redevelopment project which included the negotiation and adoption of Disposition ond Development Agreements, consolidation and rezoning of irregular lots, acquisition of privote properties, and providing financial assistance for the project. The "Trolley Center" represented a significant positive Agency action to eliminate blighting influences in ond around the project site such as: 1) incompatible land uses, 2) unmarketable properties, 3) inadequate roadway access, and 4) under-utilized marginolly productive land. . Successful acquisition and relocation of two outomobile deolerships (which were struggling financially in inferior facilities and destined to leave the City), to new locations in the Redevelopment Agency-assisted Chula Vista Auto Park project in the Otay Valley Road Redevelopment Project Area. . Successful completion and execution of five (5) property tax sharing agreements with the following affected taxing districts: 1) County of San Diego, 2) Chula Vista Elementary School District, 3) Southwestern Community College District, 4) County Office of Education, and 4) Sweetwater Union High School District. . Prepared and adopted the Economic Feasibility, Zoning and Land Use Study for portions of the Southwest Project Area. The "Study Areos" include the Main Street and South Third Avenue corridors. The purpose of the study was to onalyze the Project Areas and recommend strategies for the implementation of the redevelopment effort. The study update was completed an adopted in 1999. Some of the strategies recommended by the study update are incorporated in this Plan as projects to be implemented. . Completion of the widening and reconstruction of the Main Street segment between Industrial Boulevard and Broadway. . Preliminary planning of the Otay Valley Regional Park, a portion of which is to interface and provide a southern boundary of the Praject Area. . Facilitated the planning and development of the following public facilities in and around the Project Area: The South Chula Vista Public Library at Orange Avenue and Fourth Avenue The Otay Recreation Center at Main Street and Albany Avenue Animal Care Facility at Beyer Way and Fourth Avenue . Facilitated the development of the 77,000 square foot building for the County Family Resource Center and the MTDB site at the west end of Oxford Street. . Disposition and development of the Agency-owned property at 753 Broadway with a londmark building for Humphrey Mortuary. . Disposition of Agency-owned site and remodeling of buildings at 801 Broadway. . Paol 4 5-48 0---" ," ----, :~:_-",~'" /;'\ :,'" I.,' ' . iJ1'~N';:~ij W SOUTHWEST REDEVELOPMENT PROJECT AREA :rive year Imy{ementation T{an for years 2000 - 2004 . Focilitoted the redevelopment of a variety of privote commercial and industrial sites with the following projects: Construction of 3,000 square faat restaurant at Third Avenue and Palomor Street Remodeling and expansion of service station at Broadway and L Street Construction of 0 17,000 square foot showroom/warehouse building ot 1150 Bay Boulevard Construction of a 3,000 square foot wholesale warehouse building at 3855 Main Street Construction af a 7,000 square foot commercial building at 1396 Third Avenue Construction of a 2,000 square foot commerciol building at 1059 Broadwoy Approval of building and site improvement plans for site at 690 L Street Approval of building and street improvement plans for site at 1480 Frontage Road Construction of the 18-unit Trolley Terrace Townhomes at 750 Ada Street Construction of the 11 -unit Trolley Trestle tronsitional housing project at Ada Street and Industrial Boulevard EXISTING BLIGHT CONDITIONS Although significant progress has been made, on an incremental bosis, by Agency action to remove blight from the Project Area during the past nine years, blighting influences still exist and continue to be a challenge. Specifically, the some issues related to inadequate infrastructure, community facilities, non- marketable properties, deteriorated buildings, visual and economic blight still readily exist. As will be presented in Section IV, this Implementation Plan sets forth preliminary progroms and projects that will have a positive effect on reducing the existing blighting influences and stopping the spread of additional blight in the Project Area. SPECIFIC GOALS AND OBJECTIVES FOR THE PROJECT AREA REDEVELOPMENT GOALS AND OBJECTIVES The Plan and Ordinance collectively identify the following Redevelopment purposes and goals, among others: . The development of property with coordinated land uses consistent with the goals, policies objectives, stondards, guidelines, and requirements as set forth in the City's adopted General Plan. . PAGE 5 5-49 Dr,..., r, r""-"~ >..j .; 'r{l,;....~- ~ SOUTHWEST REDEVELOPMENT PROJECT AREA :Jive year Imy{ementation P{an for years 2000 - 2004 . Elimination and prevention of the spread of blight, ond to conserve, rehabilitate, and redevelop the project area in accordance with the Redevelopment Plan and future Annual Work Programs. . Elimination of environmental deficiencies including inadequate street improvements, utility systems, public services; and the potential social, physical, and environmental charocteristics of blight. . Beautification activities to eliminate all forms of blight, including but not limited to visual blight, in order to encourage community identity. . Improving the general economic climate and condition through the stimulation of private sector investment in the full development of the Project Area. . When necessary, the ocquisition, assemblage, and/or disposition of sites of usable and morketable sizes and shapes for commerciol, industrial, recreational, and public facility development. . Encouragement of tourism, including the development of high quality hotels, motels, restaurants and meeting facilities. . Provision for the enhancement and renovation of businesses within the Project Area to promote their economic viability. . Provision of needed improvements to the community's education, cultural, residential and other community facilities to better serve the Project Area. . Promotion of public improvement facilities which are sensitive to the unique environmental qualities of the Project Area. . Removal of impediments to land assembly and development through acquisition and re- parcelization of land into reasonably sized and shaped parcels served by an improved street system and improved public facilities. . Alleviotion of certain environmental deficiencies including substandard vehicular and pedestrian circulation systems, insufficient off-street parking and other similar public improvements. . Encouragement of cooperation and participation of property and business owners in the revitalization of the Project. Additianolly, the Plan identifies the fallowing proposed Agency redevelopment actions: · The acquisition, installation, construction, reconstruction, redesign, or reuse of streets, utilities, traffic control devices, flood control facilities and other public improvements. · The rehabilitation, remodeling, demolition or removal of buildings, structures and improvements. . Providing the opportunity for participation by owners and tenants and the extension of preferences to occupants desiring to remain or relocate within the redeveloped Project. . PAO. 6 5-50 ~:'. ~ ;hcit- "l;l SOUTHWEST REDEVELOPMENT PROJECT AREA :Five year Imy{ementation P{an for years 2000 - 2004 . The development or redevelopment of land by private enterprise or public ogencies for purposes and uses consistent with the objectives of the Plan. . The acquisition of real property by purchase, gift, devise or any other lawful means, or, where it is deemed necessary, by exercising the power of eminent domoin as permitted by Section 503 of the Plan. . The combining of parcels, properties, site preparation, and construction of necessary off-site improvements. . Assisting in providing financing for the construction of commercial and industrial buildings to increase the property tax valuation of the Project. . The disposition of property including the lease or sale of land at the value determined by the Agency for reuse in accordance with the Plan. . The closure or vacation of certain streets and the dedication of other areas for public purposes. REDEVELOPMENT PROGRAMS/PROJECTS AND ExPENDITURES - 5 YEAR PLAN REDEVELOPMENT EXPENDITURES The preliminary list of Redevelopment programs and projects provided below represent a list of staff identified actions that, if implemented, will have a direct positive effect on the elimination of blighting influences in the Project. Inasmuch as the proposed programs need to be evaluated during the course of annual budgetary approval actions, the proposed expenditures have not been fully determined, and in most instances, will be a function of available redevelopment funding. The annual budget approval process will be the framework within which staff proposed programs will be evaluated and "compete" for funding approval by the Redevelopment Agency Board. Therefore, the costs provided below are preliminary estimates of general Agency "operations" costs such as staff time, outside consultants ond attorneys, and smoll expenditures such as planning studies, financial feasibility studies, and environmental assessments etc. The cost estimates do not include any funds that may be used to "assist" or "participate" financially in the project, or funds that may be used to initiate the proposed "loan" programs. Funding for the "Main Street Reconstruction" project (# STM 332) is to be used from TRANSNET and STP funds. REDEVELOPMENT PROGRAMS AND PROJECTS 1. Implement select recommendations from the Southwest Study as approved by the Agency Board and as is reasonably achievable given the financiol constraints of the Project Area. . PAOI 7 5 -51 DRAFT SOUTHWEST REDEVELOPMENT PROJECT AREA :Jive year Imy[ementation P[an for years 2000 - 2004 2. Encourage redevelopment of the "Nelson/Sloon" and "Fenton" properties in coordination with Otay Valley Regional Park planning. PROJECTED AGENCY COST $100,000 3. Establish a business retention/relocation program that could be designed to facilitate the expansion and relocation, if necessary, of desirable existing businesses that otherwise may be forced to leave the City in order to economically afford an expansion. PROJECTED AGENCY COST $50,000 4. Establish an industrial/commercial property rehabilitation loan and/or grant program to provide financial incentives to improve the physicol integrity and oppearance of buildings in the Project Area. PROJECTED AGENCY COST $100,000 5. Plan and implement the instollation of two monument signs to identify the entrance to the Main Street industrial business district. PROJECTED AGENCY COST $50,000 6. Initiate and complete, as is financially achievable, the final City planning designations (General Plan and Zoning) for the 'West Fairfield" and "Faivre Street" Study Areas to complete the planning transition from County to City authority. PROJECTED AGENCY COST $150,000 7. Complete the implementation of the "Main Street Pavement Rehabilitation" project from Broadway to Interstate 805. Funds for this project are from TRANSNET (the 1987 Proposition A's '/, cent Sales Tax) and the STP (Surface Transportation Progrom). PROJECTED AGENCY COST $0 8. Actively participate and encouroge the planning, including planning the specific boundaries, of the portion of the Otay Valley Regional Park that interfaces with the Project Area to include active, multi-use recreational activity uses where feasible. PROJECTED AGENCY COST $100,000 The total projected costs to the Redevelopment Agency for redevelopment programs and reports would be $550,000. How GOALS, OBJECTIYES, PROGRAMS AND ExPENDITURES WILL ELIMINATE BLIGHT I Eoch of the above described programs and related expenditures will further the stated goals of the Plan to reduce existing blighting influences and prevent the continual spread of blight in the Project Area. Table 1 is a matrix which identifies how each of the eight (8) general programs . PAGE. 5-52 D"""'Ap"""..... j~{ . = ~~ = SOUTHWEST REDEVELOPMENT PROJECT AREA :Five year Imy{ementation P{an for years 2000 - 2004 I and projects positively effect each of the seven (7) general blighting canditions that currently exist in the Project Area. GOALS AND OBJECTIVES - HOUSING California's Community Redevelopment Law requires that not less than 20% of all tax increment generated by the Project shall be used for the purpose of increasing or improving the community's supply of very low, low, and moderate income housing. The law requires that at least 15% of all new or rehabilitated dwelling units developed with housing assistance by entities other than the Agency in a Redevelopment Project Area be affordable to low and moderate income households, of which 40% must be for, and occupied by, very low income households. Additionally, affordable dwelling units sholl remain affordable for the longest feasible time (usually 55 years) but no less than the period of land use controls established in the Project plan (40 years). Attached is the required Housing Implementation Plan which addresses the key requirements of "AS 1290". The Housing Plan is comprehensive and incorporates relative housing programs and expenditures for each of the Agency's five project areas. As the Housing Plan indicates, the City's housing programs and expenditures are comprehensive, aggressive and directly increase and improve the supply of Iow- and moderate-income housing units. HOUSING GOALS AND OB.lECTlVES The Plan identifies the following housing goals, among others: . Encourogement of cooperation and participation of residents In the revitalization of the Project. . Establishment of a program which promotes the rehabilitation of the existing housing stock. . Provision of low and moderate income housing as required to satisfy the needs of various age and income groups of the community, maximizing the opportunity for individual choice, and meeting the requirements of State law. . Encouragement of the establishment and maintenance of "balanced neighborhoods" characterized by a planned diversity in building sites, density, housing, and land use. Additionally, the Plan identifies the following housing actions: . The rehabilitation, development or construction of affordable housing in compliance with State law. . Providing the opportunity for participation by owners ond tenants and the extension of preferences to occupants desiring to remain or relocate within the redeveloped Project. . Providing relocation assistance to displaced residential and non-residential occupants. . PAD. 9 5-53 DRAFT SOUTHWEST REDEVELOPMENT PROJECT AREA :Jive year Imy{ementation T{an for years 2000 - 2004 · Assisting in providing finoncing for the construction of residential units to increase the residentiol property tax valuation of the Project. · Provide for the retention of controls, and the establishment of restrictions or covenants running with the lond, so that property will continue to be used in accordance with the Plan. · The acquisition and disposition of property for the purpose of providing relocation housing, as may be required, to implement the objectives of the Plan. HOUSING ACTIVITIES As provided in more detail in the Housing Implementation Plan, it is estimated that no (zero) housing units will be displaced over the next five years as part of redevelopment activities in the Project Area. Additionolly, no housing development is currently planned to be developed over the same period. Nevertheless, should the need arise, replacement housing sites may be located in the 'Woodlawn Park", "Broderick's Otay Acres", and southwestern "Dorothy Streef' communities. Finally, it is estimated that an annual production of approximately 80 housing units are estimated to be developed and/or "assisted" in some manner throughout the City over the next five years. Therefore, it is reasonable to anticipate that some portion (although undetermined) of the total production of 400 units will be located within the Project Area. CONCLUSION Adoption of this Five Year Implementation Plan shall not constitute an approval of any specific progrom, project or expenditure and does not change the need to obtain any required approval of a specific program, project or expenditure from the Agency or community. The projects described in the Implementation Pion are examples of undertakings which will meet the goals and objectives of the Redevelopment Project. Other projects which meet program requirements may also be pursued by the Agency. This is the 2000 - 2004 Implementation Plan for the Southwest Redevelopment Project. This plan will be reviewed by the Agency at least once within the five year term of the Plan, and will take place at a public hearing no earlier than two years and no later than three years after adoption of this initial Implementation Plan. The Agency will hold a requisite public hearing and adopt a new Implementation Pion every five years from the date of adoption of the Initial Plan. 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OM " C .. . 5-55 l:'"'>.,7'" ' ':~"Ji" L~rLj-~t' ~ SOUTHWEST REDEVELOPMENT PROJECT AREA :Jive year I1'YIJI{ementation P{an for years 2000 - 2004 TABLE 2 PROIECT AREA PROFILE LAND AREA: Approximately 1,050 acres BOUNDARY: The boundaries of the Project Area comprise a large territory which contains the most blighted commercial and industrial areas. The boundaries follow a very selective path ond therefore are very irregular. The Southwest Project Area includes: most properties along Main Street from Industrial Boulevard to Melrose Avenue most properties along Third Avenue between Main Street and Naples Street some properties along Palomar Street between Broadway and Bay Boulevard most properties along the north side of Anito Street between Industrial Boulevard and Interstate 5 all properties in the West Fairfield area located west of Interstate 5 between Palomar Street and Anita Street the properties on the west side of Bay Boulevard between Palomar Street and L Street most properties in the block bounded by Industrial Boulevord, L Street, Broadway, and Arizona Street most properties along Broadway between Naples Street and J Street LAND USE: The Project Area consists primarily of light industrial and retail commercial uses. The light industriol uses are located along Main Street, the West Fairfield area, and the L Street area. The retail commercial areas are located along the Third Avenue, Broadway, and Palomar Street segments. Several residential enclaves are dispersed throughout the Project Area. They are located on Del Mar Avenue east of Third Avenue, the Broderick's Otay Acres area south of Main Street and east of Mace Street, the Woodlawn Pork area on the north side of Main Street and west of Melrose Avenue, the Jacqua Street area, the West Fairfield areo, and the Wolnut Street area. The Southwest Project Area is characterized by a mixture of these uses which results in situations of incompatibility ond blight .PAOI12 5-56 ~"'-, '7"........, '.~,o-\ -~" ,<' L__";,: ' :I ~<1l::...:'J ..:.,1 :to SOUTHWEST REDEVELOPMENT PROJECT AREA Jive year Imy{ementation P{an for years 2000 - 2004 DATE ADOPTED: PLAN TERM LIMIT: EMINENT DOMAIN LIMIT: TAX INCREMENT LIMIT: BONDED INDEBTEDNESS: CURRENT TAX INCREMENT: The Plan far the Southwest Redevelopment Project Area wos adopted on November 13, 1990 by Redevelopment Agency Resolution #1132 ond City Council Ordinance #2420. The Plan was amended in August 1991 to add ten acres of properly. 40 years (expiration date: 2030) The use of eminent domain ends in 2002, but may be extended for 12 additionol years. Eminent domain may not be used to acquire residentially-zoned dwelling units, unless the owner consents $15 million, to be adjusted annuolly based on the Consumer Price Index since 1990. The adjusted limit for 1999 is $18.6* million. $150 million, to be adjusted annually based on the Consumer Price Index since 1990. The adjusted limit for 1999 is $186.1* million $232,609* net of the housing set-aside and pass-thru agreement *Based on Rosenow/Spevacek Group Southwest Study 1999 Update . PAGE 13 5-57 OTAVVALLEY ROAD REDEVELOPMENT PROJECT AREA :rive }.fear Imy[ementation 'F[an 2000-2004 . . ---=-=--'-'''--='- , , '. '. .. ...... ..... '-, . ~ . . " ~c\ /--\:-;:.':-\ Q\ --' I'TO_UNT..I' c.----~. c> -"1:"-- }<,' -. . 1 .\T.., _..<-(,.-..-.\ __~/-::'-_';'L'L. "'? iO\~1I : " " - .' . . . ~_.' . -..... ~ '-.-. . - . ~ 5-58 DIl""> f\ """"',. ,~r'A~C-. ~ OTAYVALLEY ROAD REDEVELOPMENT PROJECT AREA :five year Imy(ementation P(an for years 2000 - 2004 INTRODUCTION The five-year Implementatian Plan for the Otay Valley Road Redevelopment is adopted to meet the requirements of Section 33490 of the Health and Safety Code. The pion is a flexible policy document and not a limitation on the Agency's activities in this project area over the coming five years. BACKGROUND The Otoy Valley Road Redevelopment Project Area is an urbanized area located in the southeostern corner of the City and comprises 771 + acres. The Otay Landfill (Caunty) occupies approximately 265 acres in the northerly section af the project area. Approximately 163 ocres along the southerly boundary are classified as enviranmentally sensitive wetlonds and earmarked for conservatian and recreotion. Public streets comprise 21 acres. The remaining 322 acres, or 43% of the project area, is zoned for light industrial development. At the time af approval af the redevelapment project, 70 percent of the developable acreage was vacant. Currently, 42 percent of the redevelopment project area represents potential for future economic development opportunities. The redevelopment project area was formed in December 1983 in order to eliminate conditions of blight which were impacting industrial development in the area. In 1983 this orea represented the largest resource of under-developed urbanized property in the City which could be used for industrial development, thereby improving the City's employment and economic base. Economic forecasts at the time of project adoption projected a five acres per year absorption rate. In octuality, over 80 acres have been developed over the past decade. The Redevelopment Plan hos a duration of 40 years (per AS 1290 and odopted Ordinance 2611), until the year 2023. Financial limitations have been established as follows: $45 million in taxes which may be divided and allocated to the Agency, or if bonds are issued or reimbursement ogreements are entered into with other public agencies and/or private entities, a cumulative total of $115 million, plus any amounts required by reimbursement ogreements with affected taxing agencies. The implementation plan is intended to be a flexible policy document to guide Agency activities over the next five years (2000 through 2004), and is not intended to represent a limitation on Agency activities. The progroms/projects included in the Implementation Plan are those priority programs anticipated to be implemented during the next five years, however, they are not all of the programs/projects necessary to eliminate blight in the project area. The Redevelopment Area boundaries are described on the attached map (Exhibit A). . PAGE 1 5-59 D''f'"lJ\Il''''''''''' '~~j-;~r a OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA :rive year Imyfementation 'Pfan for years 2000 - 2004 BLIGHTING CONDITION PRE-PLAN BLIGHTING CONDITIONS The Redevelopment Plan adopted in 1983 identified the following blighting conditions in the Project Area: . Undeveloped, unproductive and underdeveloped properties throughout the Area. . Inadequate street ond circulation systems to serve potential traffic demand. . Inadequate street lighting, lack of curbs and gutters, and poor public improvements and facilities. . The need for additional public and private utilities in order to accommodate the development of properties within the Project Area boundaries, including the need for additional f10ad cantral, water service, starm drains and sewer facilities, and for the development of fire protection and prevention facilities. . The lack of proper utilization of many properties within the Project Area boundaries resulting in development constraints an a number of these properties, thus producing a stagnant and unproductive condition af land which is otherwise potentially useful and valuoble. PROGRESS IN ELIMINATING BLIGHTING CONDITIONS Since adoption of the Plan in 1983, the Agency has worked to eliminate certoin of these conditions through the following efforts: . Installation of ala" water line in Otay Valley Road. . Extension of natural gas and electric service along Moxwell Road . Developed plans, financing, and initiated construction for the widening and improvement of Otay Valley Road from 1-805 to the Otoy River Bridge crossing. This project includes the upgrading and undergrounding of electric and telephone utility lines, and improved water service. It also included the purchase and rehabilitation of fourteen acres of wetlands. . Completed Phase I, II, and III of the widening and improvement of Otay Volley Road. Otay Valley Rood was widened to a six lane major arterial from 1-805 to Nirvano Avenue. East af Nirvana, the roadway was improved to three lanes to the City's easterly boundary. In additian, the Otay River bridge crossing has been widened. . Reviewed and approved plans, and prepared development agreements for 17 new industrial and 2 commerciol projects which have been completed. . Appraved a Development Agreement for the Chulo Vista Auto Moll, Phase I, which now has four established dealerships. . PAGE 2 5-60 r ,,".. ~!:.--I ;-: ~~) /-~-~ ~;. a~l!-;'--:41 :.J. OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA :five year Imy{ementation P{an for years 2000 - 2004 . Provided Industrial Development Bond financing for 2 industrial projects. . Eliminated all outo recycling land uses south of Energy Way. The remaining recyclers have sunsetting Special Use Permits which enforce the improvement of landscaping and maintenance of properties used for auto recycling on Energy Way. The Speciol Use Permits sunset befween the years 2004-2006. At that time, the Agency will review the land uses and may consider renewals, if appropriate. CURRENT CONDITIONS Despite the progress thot has been mode to date, certain blighting conditions remain which will impact future industrial ond commercial development in the oreo. These conditions include: . Depreciated or stagnant property volues or impaired investments, including, but not necessarily limited to, those properties containing hazardous wostes that require the use of agency authority as specified in Article 12.5 (commencing with Section 33459). Several lorge parcels remain impacted by hozardous soil and groundwater contamination. . Adjacent or nearby uses that ore incompatible with each other and which prevent the economic development of those or other portions of the project area. An example of remaining blighting incompatibility is the City's Animal Shelter, which is currently located in the middle of a large vacant parcel ond is restricting the integrated development of the site. The City will complete the relocation of this facility in 2000. . Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots. This condition can be caused by a substandard design, inadequate size given present standords ond market conditions, lack of parking, or other similar factors. Troffic circulation inadequacies remain which are impacting development of major industrial/commercial sites. SPECIFIC GOALS AND OBJECTIVES FOR THE PROJECT AREA GOAL The Agency proposes to use the process of redevelopment to eliminate and mitigate the many aspects of existing visual, economic, physical, social, and environmental blight within the Project Area. Within this broad goal, and as an indicator in the evaluation and determination of project priorities, the following specific redevelopment objectives are established by the Agency. . PAGI 3 5 - 61 ~ .,' ~iiliot.::l'-':'..:i " IF, ,....... '-";'~ :. OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA :Jive year Imy(ementation P(an for years 2000 - 2004 OBJECTIVES . The elimination of existing blighted conditions, be they properties or structures, and the prevention of recurring blight in and about the Project Area. . The development of property within a coordinated land use pattern of commercial, industrial, recreationol, and public facilities in the Project Area consistent with the goals, policies, objectives, standards, guidelines and requirements as set forth in the City's and County's adopted General Plan and Zoning Ordinonce. . The development of public services and facilities including, but not limited to, recreational, maintenance, and operationol services and facilities as are necessary and required for the development of the Project Area. . The elimination of environmental deficiencies including inadequate street improvements, inadequate utility systems, and inadequate public services; and its potential social, physicol, and environmental characteristics of blight. . The development of a more efficient and effective circulation corridor system free from hazardous vehiculor, pedestrian, and bicycle interfaces. . The implementation of techniques to mitigate blight charocteristics resulting from exposure to highway and public right-of-way corridor activity and affecting adjacent properties within the Project Area. . Beautification activities to eliminate all forms of blight including, but not limited to, visual blight, in order to encourage community identity. . The encouragement, promotion, and assistance in the development and expansion of local commerce and needed commercial and industrial facilities, increasing locol employment prosperity, and improving the economic climate within the Project Area, and the various other isolated vacant and/or underdeveloped properties within the Project Area. . The acquisition, assemblage, and/or disposition of sites of usable and marketable sizes and shapes for residential, open space, recreational and Project public facility development within the Project Area. . The creotion of a more cohesive and unified community by strengthening the physical, social, and economic ties between residential, commercial, industrial, and recreational land uses within the community and the Project Area. . The acquisition and disposition of property for the purpose of providing relocation housing, as may be required, ta implement the objectives of this Plan. . To provide far affordable housing availability as required by Caunty, Region, or State law and requirements, as necessary and desirable, consistent with the goals and objectives af the community. . PAGE 4 5-62 , ", --..-" L'i(i,-\rJ OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA jive }fear Imy{ementation P{an for }fears 2000 - 2004 . To encourage the coordinotion, cooperotion, and ossistance af other local ogencies, os may be deemed necessary, to ensure that projects undertaken by this Agency are implemented to their fullest and practical extent. . The achievement of a physical environment reflecting a high level of concern of architectural and urbon design principols deemed important by the community. . To encourage community involvement and citizen participation in the adoption of policies, programs, ond projects so as to ensure that the Redevelopment Plan is implemented in accordance with the objectives and goals of the General Plan. . To provide a procedural and financial mechanism by which the Agency can assist, complement, ond coordinate public and private development, redevelopment, revitolization, ond enhancement of the community. PROGRAMS, PROJECTS AND EXPENDITURES PROPOSED FOR THE NEXT FIVE YEARS REDEVELOPMENT EXPENDITURES The preliminary list of Redevelopment progroms and projects provided below represent a list of staff-identified actions that, if implemented, will have a direct positive effect on the elimination of blighting influences in the Project. Inasmuch as the proposed programs need to be evaluated during the course of annual budgetary approval actions, the proposed expenditures have not been fully determined, and in most instances, will be a function of available redevelopment funding. The annual budget approval process will be the fromework within which staff-proposed programs will be evaluated and "compete" for funding approval by the Redevelopment Agency Board. Additional programs are needed to completely eliminate blight in the Project Area but the progroms described in this section are proposed to be implemented over the next five years. The costs described are based upon anticipated tax increment cash flow over the next five years net of debt service and administrative costs. REDEVELOPMENT PROGRAMS AND PROJECTS . RESOLVE SOIL/WATER CONTAMINATION ISSUES Several properties in the Redevelopment Area are impacted by contaminated groundwater ond/or soils. The presence of contaminated water below certain parcels may not, in itself, present a heolth hazard or preclude development of parcels. However, to the extent such conditions, including the presence of contominoted soils, offect the financing of development on undeveloped parcels, contamination could hinder future development in the area. Agency staff continues to work with affected property owners, county and state regulatory agencies to develop plans and timetables for remediation of contamination problems using available legislative and funding resources. . PAGI 5 5-63 ~~ ,\ ~~.~:..., ~"tt~i~\i(~ j OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA :Jive year Imp{ementation P{an for years 2000 - 2004 In addition, stoff is working to remove contaminated soils stockpiled on the southwest corner of the Auto Pork. Removal will require coordination with county and state health officials and county landfill officials. Estimated stoff and consulting costs over the next five years is $150,000. . EXPAND AUTO PARK The Chula Vista Auto Pork, comprising seventeen acres, was established in 1993. The first two dealerships opened in 1994. In order for this project to be economically viable, additional dealerships must be attracted to the area. The current auto pork site con accommodate one additional dealership. However, exponsian to the east on the adjacent 23 acres of vacant land can accommodate an additional four to six deolerships. The relocation of the City's Animal Shelter, which is locoted on 0 3/4 acre parcel in the center of this property, will be complete by the end of 2000. Agency stoff will continue to work with the property owners and their consultants and City stoff in on effort to expand the Auto Pork. Total stoff and consultant costs ore estimated at $125,000. . RESOlVE SITE SPECIFIC TRAFFIC CIRCULATION ISSUES IMPEDING DEVELOPMENT Development of the twenty acre parcel located at the southeasterly corner of 1.805 and Otay Volley Rood requires the resolution of traffic circulation issues also impacting two adiacent developed properties, and requires coordinated signalized access to Otay Volley Rood. This will require Agency stoff coordination and traffic consultant services os well os the installation of traffic signalization. Agency stoff and consulting services ore estimated to cost $100,000. Traffic signalization is estimated to cost $200,000. . PROVIDE SUPPORT FOR THE OTAY REGIONAL PARK The proposed Otay Regional Pork will provide active and passive recreational opportunities in conjunction with preservation of natural habitat in the Otay River Volley, 0 section of which forms the southerly boundary of the project area. Agency stoff is participating in this multi- jurisdictional planning effort. Development of the Auto Pork infrastructure has provided access to the river volley and public parking. Future efforts will entail the development of pork improvements at the southerly end of 8randywine Avenue to serve os 0 trailhead. Total cost of pork development is estimated at $240,000. . PROVIDE SUPPORT FOR THE ESTABLISHMENT OF THE CITY OF CHULA VISTA'S NEW CORPORATION FACILITY The City of Chula Vista purchased SDG&E's Corporation focility on Moxwell Rood in March 1999. The Agency is working with City stoff to address their facility needs. It is expected that the new facility will be occupied in 2000. The existing Corporation Yard located on . PAGI 6 5-64 ,~J>.-~. . "':" '\ -~'''''':''i , '"'!\ ' .J J , . , ,~'.>>J' .i~,:/ '", J OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA :rive year Imy[ementation P[an for years 2000 - 2004 Woodlawn in the Town Centre II Redevelopment area will be made ovoiloble for redevelopment. Agency stoff cost is estimated to be $25,000. . FACILITATE THE REDEVELOPMENT OF THE DARLING DELAWARE PROPERTY The Darling Delaware property represents one of the last large parcels of industrially zoned lond in the City of Chula Vista. It has remoined vacont due to environmental problems on the property. The Agency is working with Darling International, and others to address the environmentol concerns and develop the property. Agency stoff cost is estimated to be $40,000. . REVIEW THE CONTINUED OPERATION OF AUTO RECYCLERS LOCATED ON ENERGY WAY The Auto Recyclers operating on Energy Woy all have Special Use Permits which expire between the years of 2004 and 2006. The Agency will be evaluoting the potential for olternative uses for these properties, in addition to considering any extensions of Special Use Permits. Agency staff and consultant costs are estimated to be $60,000. How GOALS, OBJECTIVES, PROGRAMS AND EXPENDITURES WILL ELIMINATE BLIGHT The impact that goals, objectives, programs and expenditures will have towards the alleviation of blighting influences as cited in the Redevelopment Pion is described below. The impact of programs is also summarized on the attached matrix (Exhibit B). PROJECT GOALS AND OBJECTIVES The goals and objectives, were specifically developed to alleviate conditions of physical and economic blight which impede development in the project area. The goal established for the project area (in the Redevelopment Plan) specifically references the use of the redevelopment process to eliminate and mitigate all aspects of blight. The objectives specifically address blighting conditions impeding the development of properties in the project area including inadequate traffic circulation systems, lack of public focilities, inadequote utilities and services, and the need to eliminate visual blight due to incompatible uses. The objectives also address issues concerning the proper utilization of properties in this project area including issues caused by the proximity to 1-805. The objectives are the coordinated interface between commercial, industrial, industrial and recreation lond uses, and acquisitian and assembloge of property for public purposes. . PAGE 7 5-65 j',-,.-:)?\:'..l .J ,';,rV' 4: \(..l'r;'~;J ;~ OTAYVALLEY ROAD REDEVELOPMENT PROJECT AREA :rive }fear Imy(ementation P(an for }fears 2000 - 2004 PROGRAMS Resolution of Soil/Water Contamination Issues The program and expenditures to resolve soil and groundwater contamination issues oddress the condition of undeveloped, underdeveloped and unproductive properties in the project area. The program will address specific problems affecting two major properties in the project area Expansion of the Auto Park The program to expand the Auto Park addresses the conditions of inadequate public improvements, public facilities, visual blight characterized by, among other things, an obundance of outdoor storage, and open yard/compound uses, junk yards ond other marginal type businesses. Resolution of Traffic Circulation Issues Resolution of site specific circulation issues addresses inadequate traffic circulation and the need for infrastructure improvements. Since development of several major properties are currently restricted by inadequate access to Otay Valley Road and 1-805, resolution of circulation issues will also address lack of development and proper utilization of properties in the project area. Support of the Otav Reaional Park Development of the Otay Valley Regional Park will address issues related to the under- utilization and unproductive use of properties and valuable resources in the project area. Through conservation efforts, it will also address conditions related to improved flood control in the Otay River Valley. Support Establishment of Citv of Chula Vista Corporation Facilitv Siting the Chula Vista Corporation Yard Facility at the previous SDG&E facility supports the objective of acquiring properties for the development of public facilities. The property had been developed as a single purpose facility by SDG&E and had been unoccupied for several years. . The City will be improving the property and maintaining it consistent with the goals of the redevelopment orea. Facilitate the Redevelopment of the Darlina Delaware Properly Redeveloping the Darling Delaware property will remove 0 blighted, environmentolly contaminated property from the project area. It will facilitate the creotion of new commerciol and industrial facilities and jobs. The development will be required to be consistent with the architectural and urban design principals important to the Otay Valley Road corridor. . Paol a 5-66 -!'~.\ 7-'1 " "............,.., J- ,\ . , ~'I .,' ,,~ \ 'i---\ j i OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA Jive year Imp{ementation T{an for years 2000 - 2004 Review the Continued Ooerotion of the Auto Recvclers It is recognized that auto recycling is a necessory and beneficial land use. However, the Agency will be reviewing the ongoing operation of these facilities in the coming years to determine if 0 portion or all of the properties in this area can be redeveloped to a higher ond better use more consistent with the goals of the project area. ExPLANATION OF How THE GOALS, OBJECTIVES, PROJECTS AND EXPENDITURES WILL IMPLEMENT PROJECT HOUSING REQUIREMENTS GOALS AND OBJECTIVES California's Community Redevelopment Law requires that not less than 20% of all tax increment generated by the Project shall be used for the purpose of increasing or improving the community's supply of very low, low, and moderate income housing. The law requires that at least 15% of all new or rehabilitated dwelling units developed with housing assistance by entities other than the Agency in a Redevelopment Project Areo be offordoble to low and moderate income households, of which 40% must be for, and occupied by, very low income households. Additionally, affordable dwelling units shall remoin offordable for the longest feasible time (usually 55 years) but no less than the period of land use controls established in the Project plan (40 years as amended pursuant to AS 1290). PROJECTS AND EXPENDITURES TO BE MADE DURING THE NEXT FIVE YEARS · Annuol housing production goals have been established Citywide. See Citywide Housing Goals attached as Exhibit C. · Estimated number of low/moderate income housing units to be destroyed in Years 1-5: Two - There are currently two low/moderate income rental housing units within the Project Areo. These are locoted on a 23 acre site which is planned for redevelopment by the owner. However, at this time the Agency has no plans to participate in redevelopment of the subject site. . Replacement Housing Site: The Redevelopment Project Area includes two moderote income rental housing units which will eventually be displaced by development of the site. All of the developable land within the project area is zoned for light industrial development. Consequently, there are no housing units contemplated for development within the project area. There are no areas suitable for housing development. If the housing is displaced as a result of Agency activity, replacement housing will be provided as part of the Citywide low- moderate housing progrom. For a location of low/moderate housing development sites, see Housing Implementatian Plan, attached. 5-67 . PAOI 9 i"\ ~'" ,;\ "-" ,.~'" J ;,::':'r!:.iI } ,', ',.....:.:I ~ ")jn;',r 'A .... ,,;..:.>;.,,., :~ ,:Ij .....,4 '.~~ ,jI, OTAYVALLEY ROAD REDEVELOPMENT PROJECT AREA :Five year Imy[ementation P[an for years 2000 - 2004 . Low/Moderate Housing Fund Expenditure Program: The Otay Volley Rood Redevelopment Project redistributes 20% of the tox increments occruing from the Project Areo to the Agency's Low/Moderate Income Housing Fund. Estimated deposits ond expenditures are included in the Agency's Housing Pion, see Housing Implementation Plan, ottached. . Housing Production Plan See Housing Implementation Plan, attached. . Low/Moderate Income Housing Production Results See Housing Implementation Plan, attached. CONCLUSION Adoption of the implementation plan shall not constitute an approvol of any specific program, proiect or expenditure and does not change the need to obtain ony required approval of a specific program, project or expenditure from the Agency or community. The proiects described in the Implementation Plan are examples of undertakings which will meet the gools and obiectives of the Redevelopment Project. Other proiects which meet progrom requirements may also be pursued by the Agency. This is the second Implementation Pion for the Otay Valley Road Redevelopment Project. This plan will be reviewed by the Agency at least once within the five year term of the Plan. The review including a noticed public hearing, will take ploce no eorlier than two years and no later than three years ofter adoption of this Implementation Plan. The Agency will hold a requisite public hearing ond odopt a new Implementation Plan every five years from the date of adoption of the Initial Pion. The Implementation Plan may be amended by the Agency at any time following a noticed public hearing. . PAO' 10 5-68 , j",,<::.tf t 1 ~..,.. .J CIl 'l' -c"I ~'1'0- ',I III a " Q) fh,) IlIli a u ---":~;:;,,, CC '" Q) C''" ':I: a 0 '7:'~q~ I- a Q) " a -" III '" "" ~ .~ 0 - Ill: <:: 0 ..<: a. <ll - ;:.-, 0 Q) I- l-- ~ Z <E., <{ U III :;: Q) :E~ '0 ~ II.~ 0... - o :;: c: Q) .. <:> E III ,,., a. >.... 0 III~ Q; I:a :;: > Q) III <ll " Ill:j ... Q) "" Z " I:a ~ " 0 - 0 CIl .. "" 0 .... III >- l-- ~ Ill: <:: Z 0 <ll 0 > t ;:.-, >- III 0 .. <ll U i5 .. ?- Z ,,., Q) ~ 8-, III -= :t .. c: = II. " Z Q) - "" I- ! ""E 0 Q) " '" " c: 0 0 :-E IIli " c: a. 0 u .; ... OJ E Z c: 0 III - ~ . ..<: OJ .!2l 0 D. - ~ -"0... 0 Q) 1: .. -= Q) III '" E t Q) a. 0 0 I:ll u - .- Q) III " > IIlIl c: Q) .- " II. t~ 0 0 ..<:" U Q) = OJ'" c: 0 ~ ._ a. i ;; 0 III o ~ _ a. .. -E Q) . ..<: :. :t Q)- fit ..<: >- I- -" z .... <0...J3 ~tJ<::E oz~z . . . . . LL<(VlO ClI>-llll: tljZ1t:;: ZW z w 0'" ,wW a:::Q..i= wo~ . . . . . . o~w Zw~ =>>0 w~ o~ w .... '" "'uw 5;:j!::! . . w~> o=>~ <c....~ ~ Z 0 '" - w .... :c .... z :5tu~ - Oww . . i: w~> ~t;;~ .. z ~ .. - ~ .. 10 Z w ~ " ~ c: - "'''' .. ~w . . ::E'" o=> U ~ ~z wo ....- "'.... :::r3:~ -0- . . . . oz~ "'=> 0.... ~z ,,0 u , 0.... ~z~V) <<a.::w -zUJ::> . . . . uC)Q.....l LU<O< ~I-ac::> w"'~ 0 0 OJ :; III c: c: <{ I .Q '" c: -.:: - 0 Q) .Q " => 0 c: '" 0 0 c: '" -'" ~ - .Q " E ~ 0 0 0 0 c: 0 a. 0 - 00... ~ 1: ~ D- c: '';:: - 0 Q) Q) ..D. 0 " gu E a. U :; 0 010 ~ U 0 ;; ~~ -ill Q) -'" ~ .~ Q) " '6 ~ (j z Q) til " "" ~ 8 => ~ 0... U E; '" c: ::10 0 ~ ~ " ~ '';:: '0 :; e i5 (j ~o... c: =iil 0 Vl <{ I- ..<: Q) ~ U ~ =i: Q) " Q) t: .!::l.-?: 1i 0 .~ ~ > c: > ~ ...c := :'!:: ~ 0 ~ 0 :-: C IoD '" '" " .- u- _ u > u 0; Q) x Q) => '" " " Q) Q) Q) "" UJ "" Vl UJ u.. u..O """" .. .. .. " c .. . 5-69 ;--.:7': -:\ -~ - ., ., 'I' ~'j .~ j:r'..~ ,j _ OTAYVALLEY ROAD REDEVELOPMENT PROJECT AREA :Five year Imy[ementation T[an for years 2000 - 2004 TABLE 2 PROJECT AREA PROFILE LAND AREA: Approximately 771 acres (includes public rights-of-way, 750 acres net BOUNDARY: East of 1-805 LAND USE: Land Fill Wetland Public Streets Light Industrial 265 acres 163 acres 21 acres 322 acres DATE ADOPTED: December 1983 DATE OF AMENDMENTS: 1 ,I Amendment 11 /08/94 TERM LIMIT: December 2023 TAX INCREMENT LIMIT: $115 million BONDED INDEBTEDNESS LIMIT: $45 million CURRENT TAX INCREMENT FLOW: $800,000 after Low-Mod Set-Aside' 'SOURCE: City of Chulo Vista Estimate of Tax Increment Flow, FY 1999-2000 . PAGE 12 5-70 """'....,-~ "', ',""~\r' ~ ,1" "$1",1 I: ~ "";il.' 'i'" , ;;..,;~~ ..~ .. HOUSING IMPLEMENTATION PLAN :five year ImyfRmentation 'Plan for years 2000 - 2004 CITY OF CHULA VISTA REDEVELOPMENT PROJECT AREAS BAYFRONT REDEVELOPMENT PROJECT AREA TOWN CENTRE I REDEVELOPMENT PROJECT AREA TOWN CENTRE II REDEVELOPMENT PROJECT AREA SOUTHWEST REDEVELOPMENT PROJECT AREA OTAYVALLEY ROAD REDEVELOPMENT PROJECT AREA INTRODUCTION . This Housing Implementation Plan for the Bayfront, Town Centre I, Town Centre II, Southwest, and Otay Valley Road Project Areas has been prepared by Agency staff for the Chula Vista Redevelopment Agency (Agency). Pursuant to Section 33413(d), because the Bayfront Redevelopment Proiect Area was adopted prior to January 1, 1976, the inclusionary housing provisions of Section 33413 do not apply to the Bayfront Redevelopment Project. The implementation plan is being prepared and adopted in accordance with the recently enacted AB 1290 legislation and addresses the housing production requirements. The key requirements of the legislation that this section of the implementation plan addresses are: . A description of the Agency's specific housing related goals and obiectives for the project area, including specific programs, possible projects, and expenditures for the next five years. . A discussion of the Low/Moderate-income housing Fund including the amount in the Housing Trust Fund, amounts to be deposited in the next five years and anticipated expenditures. . Proposed locations suitable for replacement housing units In instances where plan activities trigger the need for such units. . A description of how these goals, objectives, programs and expenditures will implement the low and moderate-income housing set-aside and housing production requirements of the law, including an annual housing program. HOUSING PLAN - CONSOLIDATED PLAN AND HOUSING ELEMENT II The City of Chula Vista has adopted a Consolidated Plan for Housing and Community Development (Consolidated Plan) per the requirements for communities receiving funds . PAGE I 5 -71 ('"'::;, ~': ~:);" ~:. ';-:T.~ !'J ~'~~r~L.J ~ ~ HOUSING IMPLEMENTATION PLAN :Jive }fear Imy{ementation 'Plan for }fears 2000 - 2004 from the U.S. Deportment of Housing and Urban Development (HUD). The Consolidated Plan, which was adopted for the period July 1, 1995 to June 30, 2000, includes: . Identification of the existing and projected housing needs and establishment of goals, policies, objectives and programs for the preservation, improvement and development of housing to meet the needs of 011 economic sectors of the community. . Description of the resources (human and financial), markets and strategies intended to meet the housing needs of the community. . Investment decision-making guides for elected officials, program administrators, community organizations and bonks, housing developers and concerned citizens. . Long-term (Five Year Strategy) and short term (Annual Plan) guides which describe the general priorities, plans and allocation of federal, state, local and private resources and funds. The Consolidated Plan provides the City with estimates of current and future housing needs. Specific activities intended to provide assistance to the community were identified in the Consolidated Plan including goals, policies and program objectives to address the current and future need. The policies, goals and objectives for both the City's Five. Year Strategy and One-Year Action Plans ore predicated on both the Consolidated Plan and the Chula Vista Housing Element. The Housing Element, adopted March 3, 1992 os port of the General Plan, contains on in-depth evaluation of the demographic, economical and social characteristics of the City along with projections and trends impacting housing and community needs. The brood goals established os port of the Housing Element are: . To promote and ensure the provision of adequate housing for 011 persons regardless of income, age, race, sex, marital status, ethnic background or other arbitrary factors. . To promote and ensure the provision of housing selection by location, type, price and tenure. . To promote and ensure the development of 0 balanced residential environment with access to employment opportunities, community facilities and adequate services. Taking these goals and Chula Vista's specific needs into consideration, the Housing Element describes 011 of the housing-related programs being implemented in Chula Vista, including: residential rehabilitation ac;tivities, new construction of affordable units, housing assistance programs for the aged and disabled, assistance programs for owners and renters, and fair housing and affirmative marketing. . PAOI 2 5-72 ~:r~ f\ ~:-Y.1I L ';";,:-.? fi\~ i~m;. ;,' l.i,.;~\.i"'-'-uY ~ HOUSING IMPLEMENTATION PLAN :Five year Imy[ementation 'Plan for years 2000 - 2004 Currently, the City is in the process of updating the Housing Elemenf for the July 1, 1999 to June 30, 2004 planning period. The City will also be revising and adopting a Consolidated Plan for the period beginning July 1, 2000 to June 30, 2005. It is anticipated that the City's housing needs, goals, and implementing programs will remain relatively the same as in previous years. The City of Chula Vista, in cooperation with the City's Housing Authority and the Chula Vista Redevelopment Agency, implements and administers the various housing programs developed through the Consolidated Plan and the Housing Element to address housing needs. Household Income Levels The Consolidated Plan identifies categories of community members needing assistance and establishes priorities based upon the findings compiled during the data gathering phase of the strategy development. The specific income groups being targeted are very low-income, low-income and moderate-income households, which are defined by using the San Diego County median income level as the basis. The County median is determined annually, and is adjusted for household size by HUD. Based on the 1999 median income of $52,500 for San Diego County (assuming a 4 person household), the income groups are as follows: INCOME LEVEL Very low Low Moderate PERCENT OF MEDIAN 0% to 50% 51 % to 80% 81%to 120% 4-PERSON HH INCOME $0 - $26,250 $26,251 - $42,000 $42,001 - $63,000 Specific activities intended to provide housing assistance to target income groups were identified in the Consolidated Plan and given priority rankings. Housina Needs The unmet housing need in Chula Vista is quantified in the Housing Element based on the Regional Housing Needs Statement (RHNS) prepared by the San Diego Association of Governments (SANDAG). The RHNS establishes the City's share of the region's new construction housing needs for 1999-2004. The City's regional share equates to a total of 10,754 new construction housing units or 11.3 percent of the Region's need. The following indicates the City's housing need by income group for 1999-2004. . PAGI 3 5-73 ~-z., ~ ^ \t:T ~~)f~FJ.~ HOUSING IMPLEMENTATION PLAN Jive year Imyfementation Plan for years 2000 - 2004 1- - -.. TABLE 1 - ---- I City of chula Vista ' I Regional Share Housing Allocation by Income Groups J 1999-2004 - - -- --- ----- --- -- - INCOME LEVEL REGIONAL SHARE ALLOCATION Very Low 2,258 units '10;"';" .. ..................__._m...._________ 1:828uniis -....-..,."......--.................... ------- ...............--......- Moderate 2,473 units AboveModerale--' . 4,195 units TOTAL 10,754 units HOUSING FUND (20% SET AsiDE) REQUIREMENTS I As port of the Agency's efforts to meet its unmet housing needs, tax increment housing set aside funds hove been and will continue to be used to create affordable housing units. Table 2 estimates the yearly tax increment to be deposited by the Agency by project area. TABLE 2 Low/Mod Housing Funds Available - Citywide Section 33490(a)(2) Prepared September 1999 -.-, LOW AND MODERATE INCOME HOUSING FUND 2000-01 2001-02 2002-03 2003-04 Starting balance of $4,942,300 Total Annual Deposits 20% Tax Increment Deposits bv Proiect Area: BayfrontITown Centre I $589,058! $612,246 $636,393 ..., '(jlay\jafieyRoad 1232,3391239:309 r ,.,. 2!6,~~~J 'fci;"';nC~ntrelrJ?11,~53j-:217,797' . 2?4,331 Southwest I 173,623 I 178,832 184,197 .. .. fnleresiandOlherT' ".'[-- "..,., ,., .,. Income 326,000 i 328,760 331,548 ' 334,365 337,209 TOTAL REVENUE i $1,532,473 I $1,576,943-$1,622,956 I $1,670,049! $1,718,266 $661,018 .... '25~,883 231,061 ' 189:723 $686,151 .,., ,.. 261,~$$ 23T,~9? 195,415 . PAOI 4 5-74 ~~ , :..,;r;w.' ;;:.; ,~ I:' :",_ J :.! HOUSING IMPLEMENTATION PLAN :Jive year Imy{ementation 'Pum for years 2000 - 2004 The total revenues to be deposited over the five-year period are estimated at $8,120,700. The beginning balance in the low and moderate-income housing fund as of July 1, 1999 was approximately $4,942,300. Therefore, the estimated amount of tax increment housing set-aside projected to be ovailable over the five-year period for the development and assistance of affordable housing proiects is $13,063,000. TABLE 3 Low/Mod Housing Fund Spending Plan - Citywide Section 33490(a)(2) Prepared September 1999 -l __J DESCRIPTION -~ ! 1999-2000: 2000-01 ' 2001-02 , 2002-03 ',.,,~ """-- ~""""""""'" 2003-04 Debt service on bonds used for affordable housing Affordable HouSing Projects Transterlo Hou-slng. Authority or other public entity Funds tobe accrued tor specific projects TOTAL EXPENDITURES' $6'17,773... ~1,~76 ,~.4.:3. $1, 622, 95l3....~1, 6 70, 0.~._$.!,7111,~66 . o o o o o ____.__-+----_m._________,.____-;.__________ ____,_._____..._____.__._.----------.;..______.___~_____ o $647,773 o $1,576,943 0' 0 $1,622,956 : $1,670,049 o $1,718,266 Allocation of Funds to Proarams The allocation of these funds is presented in Table 4. Based on existing programs and pro forma cost projections for new and rehabilitated units, up to 850 additional units could be created over the five-year period. Funds are allocated among newly constructed and rehabilitated units as follows: 825 new housing units; and 25 substantially rehabilitated housing units. The Agency anticipates assisting 60 low-income homeowners each year with the minor rehabilitation of their homes through the Community Housing Improvement Program (CHIP). . PaGE 5 5-75 l'"""> n f;!" IE""!" ~ \" ;.t,,;.;.: ~'.... !~ I1..v '~b'~',,~ HOUSING IMPLEMENTATION PLAN :rive year Irnp{ementation Plan for years 2000 - 2004 - - 1- -- - - - TABLE4 - - -- --I Annual Housing Unit Production - Citywide 1_ _ ____ _ Prl!~ared September.1~99 ____ __ ___ I DESCRIPTION 1 ,,' : ,2000 2001 2002 2003 I 2004 Five Year : Total Housing units tobe developed " ,I Rousiii'g-units lobe substaiiiiaiiy---.---t- rehabilitated 'TotaThousing-iiiiitStobe prfce ....--- . restricted (acquisition of price restriction covenants forexistinghousingl . Housiriguiilis to be otherWise assisted by the Agency (non-restricted) Housirig'uiiilstobedestroyecfas i'esuTi ,.",. of redevelopment 165 1 1l?~i_~l??_i____1l??_j.1651_ I i I 51 5 5: 51 5' ......-.--"-."-......--....... . .---.----..1.................--------.\ 825 25 170 170 170 170 170 i .....".".. 60 60 60 60 60 - ----.............--- 0 0 0, 0 , 0 , 850 300 o ExCESS / SURPLUS As defined in Colifornia Health and Safely Code Sedion 33334.12(g)(1), an agency has an excess/surplus at any time that unexpended and unencumbered monies in the Agency's low and moderate-income housing fund exceed the greater of $1.0 million or the total funds deposited in the low and moderate-income housing fund over the preceding four fiscal years. For the purposes of complying with the current mandate, the Agency must determine whether an excess/surplus existed as of July 1, 1999. This is determined by comparing the unencumbered balance of the low and moderate-income housing fund as of July 1, 1999, to the sum of the property tax increment housing set-aside deposited into the fund between fiscal years 1994-95 through 1997-98. If the amount of unencumbered funds in the account exceeds the sum of the deposits, the Agency has an excess/surplus. . PAOI 6 5-76 i7~'. ,'.r'?- ,5\ FrI' ~,~" x~:\ ~(.;s ~r , HOUSING IMPLEMENTATION PLAN Jive year Imp{ementation 'PGm for years 2000 - 2004 I~~~~~._. EX~:s:B~~r:lus .__= ---~ FISCAL YEAR Total Deposits in Housing Fund Sum of Funds for Previous 4 Fiscal Years Unencumbered Excess Balance Surplus , 1994-95 1995-96 1996-97 1998-98 1998.99 $758,747 1,022;438 '97~:1i5!C_".,.' 2,567,287 The Agency's unencumbered balance of the low and moderate-income housing fund does not exceed the total funds deposited in the housing fund between fiscal years 1994- 95 and 1997-98. Therefore, no excess/surplus currently exists. The annual plans included in this five-year implementation plan call for the entire available balance in the low and moderate-income housing fund to be expended annually. Therefore, it is not anticipated that the Agency will experience excess/surplus at any time point during the five-year planning period. REPLACEMENT AND INCLUSIONARY REQUIREMENTS Section 33413(a) of the California Health and Safety Code requires that whenever units housing persons of low and moderate-incomes are destroyed or removed from the low and moderate-income housing market as part of a redevelopment project, the Agency shall within four years of the destruction or removal of such housing, rehabilitate, develop or construct for rental or sale, to persons of low and moderate-income, an equal number of replacement units. At least 75% of these replacement units must be made available at an affordable housing cost for the same income level as the household that was displaced. The Agency has incurred an obligation to replace 157 units that were demolished as a result of redevelopment activities in the various project areas. This figure excludes units displaced in the Agency's Bayfront Redevelopment Project Area which was adopted July 16, 1974 and is not subject to the replacement housing requirement. Of the 157 units displaced, 104 were very low-income trailers (one bedroom), 27 units were low-income (one bedroom) and 26 units were low-income (two bedrooms). . PAGE 7 5-77 . . _._..._.--~-_...._. ,--,,,,,,--,--._-~,,,,~-,-,-"_."'-'""'-----""'--"-'..,-.----..--.... ~ ~ .~'\ ~Vi71~.r_) '; ., 'hi: {';\ ~~ ~~~ " . ,^..;\ - ~',~".< .. ~",;.:I ~.....{; ~b < HOUSING IMPLEMENTATION PLAN :Jive year Imy{ementation 'Plan for years 2000 - 2004 II The replacement units must meet the following minimum income standards: UNIT TYPE : INCOME LEVEL ' NUMBER OF UNITS : ' DEMOLISHED 1 bedroom Very low 78 Low 20 Low or Moderate 33 SUBTOTAL 131 2 bedroom Very low 0 Low 20 Low or Moderate 6 SUBTOTAL TOTAL 26 157 II The above units were replaced with the following 258 very low and low-income housing units built with Agency participation on a citywide basis. -- - 1- -- --- - -TABLE6-- -- - - ____ ____ Agenc~Assisted_ New ~<lI1struction.':lousing_ ___ _ ~ ""_w"""" =_ PROJECT _~L_BR 2 BR ,_3 BR , 4 BR I TOTAL Town Centre Manor 58 1 59 -OorolhySlreet----- - ,-22'-- -"., h 22 SilvercreSl-.-----------~-74~---T'.----:-----=-:------75 t~~~~~p~rtm;~~~-~=-=~~~:=-=--'6.+==--J~=-~=~~~ =------==~==~===r~~ Corda-va Village----' ----T-~-=----'i6---'i6T-8r--4b- TrOifeyTerraceTowiihomes-'---T----4h--'iO-----------18 TOTAL i 142: 35 ' 73 i 8 ! 258 The proiecfs listed above contain 192 very low-income and 66 low-income housing units. These units fulfill the Agency's replacement obligation for the 157 housing units displaced in the past. Moreover, a surplus of very low and low-income housing units was constructed beyond the requirement that 75% of the units removed after September 1, 1989 be replaced with units having an equal or greater number of bedrooms and be . PAGE 8 5-78 C ;,-:)' i::'::-' , ~:a" ~,j ,I HOUSING IMPLEMENTATION PLAN :five year Imylementation 'Plan for years 2000 - 2004 available at an affordable housing cost for the same income level as the household that was displaced. Proiected Housina Displacement and Development Activities In fhe next five years, there exists the possibility of 101 additional units being displaced due to potential redevelopment activity as follows: Proiect Area Town Centre I Town Centre II Southwest Otay Valley Road Total Number of Units displaced 3 low-income single family homes 48 low-income mobilehomes 48 low-income mobilehomes 2 low-income single family homes 101 low-income units The above 101 housing units add an additional development obligation to the Agency to replace these low-income housing units. Replacement Sites The following is a breakdown of possible housing replacement sites and housing developments in project areas for the next five years. . Town Centre I The Windmill Farms site is zoned Central Commercial/R-3 High Density Residential 2.65 acres. However, the Sweetwater Union High School District has purchased the property and it will not likely be developed for housing. The Agency will continue to seek redevelopment opportunities to create additional housing within the project area, particularly mixed use developments and moderate-income housing. At this time, no housing development is planned for this area. . Town Centre II The Sweetwater Union High School District has plans to relocate their headquarters. The current site is in zoned R1-P, low density housing, comprising 7.93 acres and con accommodate 18 housing units under this zoning. This housing should be affordable to moderate-income persons and has the potential to be developed in the next five years. . Southwest Possible sites for future housing developments may be located within the Woodlawn Pork, Broderick's Otay Acres and southwestern Dorothy Street communities. However, . PAGE 9 5-79 r; T" i\ ""-r ,,' "!'- < ." \ r/- j ,. J... __ HOUSING IMPLEMENTATION PLAN :Jive year Imycementation 'Pian for years 2000 - 2004 at this time, there are no plans to develop housing within this area in the next five years. . Otav Vallev Road All land in project area is zoned for light industrial development. There are no suitable housing sites within the project area. Affordable Housinq Production (Inclusionarvl Requirements Section 33413(b) (1) and (2) of the California Health and Safety Code imposes inclusionary requirements on all housing units built in Redevelopment Project Areas, whether developed by the Agency or by private entities. For the project areas adopted on or after January 1, 1976, the following restrictions apply: 1. At least 30% of all new or substantially rehabilitated housing units developed by a redevelopment agency must be affordable to persons af low and moderate- income. Not less than 50% of those units (15% of the total) must be available to very low-income persons. 2. For units developed by other public or private entities, at least 15% of the units must be affordable to low and moderate-income persons; not less than 40% of these units must be made affordable to very low-income persons. Affordable units created outside of the project areas may be counted toward this requirement on 2 for 1 basis. In other word, if the Agency develops two affordable housing units outside of a project area, only one of the two housing units can be counted toward overall Agency production. Within the City of Chula Vista, all of the project areas are subject to the housing production requirements excluding the Bayfront Project Area which was adopted July 16, 1974. These requirements must be met every ten years in the aggregate, but are planned for on a five-year basis. Past Housina Development Activities A total of 344 housing units were built between 1980 and 1990 in all the project areas by entities other than the Agency; generating an inclusianary hausing requirement far 21 very low-income units and 31 low or moderate-income units. No new housing development has taken place in the redevelopment project areas since 1991. The breakdown of the 344 built housing units by project area is as follows: . PAOI 10 5-80 r-, -:;!~\ T~ -;_:1' '; .J' ,.'..j :J ~,_!>.... ;J.~... _'. ii HOUSING IMPLEMENTATION PLAN Jive year Imy(ementation Ttan for years 2000 - 2004 PROJECT AREA TOTAL UNITS 15%OF TOTAL REQUIRED COMPLETED LOW/MOD LOW/MOD 89 68 14 32 114 82 PROJECT AREA : TOTAL , , UNITS , 15%OF TOTAL REQUIRED VERY LOW COMPLETED , SURPLUS/ VERY LOW i DEFICIT W_W<"""'_- Town Centre I , 235 Town-Celiirell'-~-f64-' ._-- biiiy--'laTley'"R'oad" ""! .m. " . ""- --6---- ::;OU[hW"8t-----'------"5-- 35 14 85 71 .-.~-j6----.~.-6---- ',15_~_-~--9 "-..------------- -.---..-.....--...........". o -~1~-- --b--~-T8 - -----18- TOTAL! 344 52 21 118 97 Between 1980 and 1990, the Agency provided financial assistance to 72 low and moderote-income units and no very low-income units. Since 1990, the Agency has provided assistance to six housing developments, creating an additional 199 very low ond low-income units as outlined in Table 6 above. Of those six housing developments, only Silvercrest Apartments, Park Village Apartments, and Trolley Terrace T own homes, totaling 121 units, are actually located within the project areas. Those housing developments located outside of the project areas may be counted towards the Agency's inclusionary housing requirement on 2 for 1 basis. Therefore, of the 78 units located outside the project areas, 39 units can be counted toward overall Agency production. At present, the Agency has a surplus of 82 low and moderate-income units and 97 very low-income units. Aaency Assisted/Price Restricted Housina for Next Five Years Based on low/mod housing funds available, it is anticipated that 850 units will be developed or substantially rehabilitated over the next five years. Of these units, it is estimated that 61 units will be developed/rehabilitated within the redevelopment project areas. The following projects are anticipated to be developed within the next five years: (j Trolley Trestle - The Agency approved financial assistance in FY 1998-99 to a local non-profit organization for the construction of fhis project. Trolley Trestle, . PAGE 11 5 - 81 ;"-., ~:~':....; " .: . :.,,' ,'. ..;'->>;1 \b.c" C"c t-.... Ii HOUSING IMPLEMENTATION PLAN :Jive year Imy[ementation Plan for years 2000 - 2004 located within the Southwest Redevelopment area, is an 11-unit housing development for those extremely low-income youths completing the San Diego County Foster Care Program. It is anticipated that construction will be completed by December 1999/January 2000. c:J Bavfront - The developer anticipates building 1,000 housing units within the Bayfront area. Five percent of the units or 50 units would be affordable to low- income households. c:J Villa Serena - The Agency provided assistance in FY 1998-99 to this 132-unit low- income senior housing development. It is anticipated that construction will be campleted in Summer 2000. c:J Rollina Hills Ranch - The developer has proposed construction of 32 low-income family units and 116 low-income senior units. c:J Eastlake Greens - The developer has proposed construction of 187 for sale town homes for low-income homebuyers. c:J Eastlake II/III - The developer has proposed construction of a 150 unit multifamily development, with 30 units to be affordable to very low-income households and the balance available to low-income households. c:J San Miauel Ranch - The developer has an obligation to develop 10 percent of the units within this master planned community for both low-income and moderate- income households. At this point in time, the required number of affordable units is estimated to be 70 units. c:J Otav Ranch - The developer has an obligation to develop 10 percent of the units within this master planned community for both low-income and moderate-income households. At this point in time, the required number of affordable units is estimated to be 232 units. c:J Pear Tree Apartments - The Agency has received proposals from several developers for financial assistance to acquire and substantially rehabilitate this 119-unit apartment project. All units are proposed to be affordable to low- income households, with the possibility of 10 to 20 percent of the units to be affordable to very low-income households. . PAOI 12 5-82 ~=. .~ ',..~. .... HOUSING IMPLEMENTATION PLAN :Jive year Imy[ementation Plan for years 2000 - 2004 The development of these projects within the next five years will create an additional surplus of low and moderate-income units for the Agency. The following inclusionary housing surplus should exist after five years: DESCRIPTION VERY LOW LOW/MOD INCOME INCOME Existing Surplus/Deficit 97 82 Agency Assisted Units Within Project Area (61 units @ 1:1 ratio) 11 50 Outside Project Area (787 units @ 2:1 ratio) 393 Less Inclusionary Requirement (61 units x .15) (2) (8) Less Displaced Low Income Units (101) Expected Surplus/Deficit 106 417 LINKAGE OF HOUSING SET AsiDE FUND ExPENDITURES WITH NEED The City of Chula Vista, through the development of Consolidated Plan and Housing Element of the General Plan, has determined that there is a need to provide and encourage the development of very low, low and moderate-income housing throughout major portions of the City. The planned use of the Housing Funds in the Project Areas will be undertaken in accordance with these policy documents, and will continue to be expended to fulfill these established goals and obiectives. The use of these funds will directly increase and improve the supply of affordable housing within the City of Chula Vista. . PAGE 13 5-83