HomeMy WebLinkAboutRDA Packet 1999/11/09
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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
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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
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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
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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
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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
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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
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By: /" J? , / 1:
./ Stephe'h P. Cushman
LAWRENCE M. CUSHMAN
"DEVELOPER"
Dated: November 12, 1992
~[
By: '. UJJJ\ W~
LawreJce M. Cushman "'"
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[C:IWP51IAGENCYICUSHMAN3.0PA]
Page 5 of 5
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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
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. 8580 LA MESA BLVD" SUITE 102, LA MESA, CALIFORNIA 91941. (619) 460-9000 . FAX (619) 460-9005 .
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~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
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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.
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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
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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.
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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.
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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.
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6
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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
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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
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(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
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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
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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
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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.. - "
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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.
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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
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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
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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
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.::.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
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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.)
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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.
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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
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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
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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
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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
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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
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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
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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.
.... .
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SECOR lA_dollal [aco'1"'ntnl
V1
10/2;/99 14:44 FAXBL686 629;
SDUPD REAL ESTATE op,.
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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
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SVl,rl) Ht..-\.L J:SIATE OPS.
l.gJ Ul<:l
CHULA VISTA PARCEL 1
The Port of San Diego 1
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, 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
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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
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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?
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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
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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
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TOWN CENTRE II
REDEVELOPMENT PROJECT AREA
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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
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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
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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
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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
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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
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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
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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
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SOUTHWEST
REDEVELOPMENT PROJECT AREA
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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
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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
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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
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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
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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
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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
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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
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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
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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.
The Implementation Plan may be amended by the Agency at any time following a noticed public
hearing.
. PAG! 10
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SOUTHWEST REDEVELOPMENT PROJECT AREA
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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
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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
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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
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: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
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. 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
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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
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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
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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
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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
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OTAYVALLEY ROAD REDEVELOPMENT PROJECT AREA
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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
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OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA
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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
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. 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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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~=. .~ ',..~. ....
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
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