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Home My WebLink AboutRDA Packet 2004/02/24 ~{I?- ~..-: -:;..::: :: CllY OF CHULA VISTA TUESDAY, FEBRUARY 24, 2004 COUNCIL CHAMBERS 6:00 P.M. PUBLIC SERVICES BUILDING (immediately following the City Council meeting) REVISED JOINT MEETING OF THE REDEVELOPMENT AGENCY I CITY COUNCIL OF THE CITY OF CHULA VISTA CALL TO ORDER ROLL CALL Agency/Council Members Davis, McCann, Rindone, Salas; Chair/Mayor Padilla 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" availabie 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. ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the Agency, staff, or members of the general public. The items will be considered individually by the Agency and staff recommendation may in certain cases be presented in the alternative. Those who wish to speak, please fill out a Request to Speak form availabie in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to the meeting. 1.a. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING TRANSMITTAL TO AFFECTED TAXING AGENCIES, AS REQUIRED BY LAW, OF THE PRELIMINARY REPORT FOR THE 2004 AMENDED AND RESTATED REDEVELOPMENT PLAN FOR THE MERGED CHULA VISTA REDEVELOPMENT PROJECT - This action is part of the proposed Redevelopment Plan Amendment process begun earlier this year to consolidate the Redevelopment Plan documents for the Otay Valley, Town Centre II and Southwest Redevelopment Project Areas and add approximately 494 acres of land into redevelopment. Approval of these resolutions would allow staff to transmit to taxing entities the Preliminary Report, which explains the reasons for the proposed Amendment and adopts the Owner Participation Rules for the consolidated redevelopment areas. [Director of Community Development] 1.b. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING AMENDED AND RESTATED RULES GOVERNING PARTICIPATION AND REENTRY PREFERENCES FOR PROPERTY OWNERS AND BUSINESS OCCUPANTS FOR THE MERGED CHULA VISTA REDEVELOPMENT PROJECT AREA STAFF RECOMMENDATION: Agency adopt the resolutions. OTHER BUSINESS 2. DIRECTOR'S REPORT 3. CHAIR REPORT 4. AGENCY COMMENTS CLOSED SESSION Unless Agency Counsel, the Executive Director, or the Redevelopment Agency/City Council states otherwise at this time, the Agency/Council will discuss and deliberate on the following item(s) of business which are permitted by law to be the subject of a closed session discussion, and which the Agency/Council is advised should be discussed in closed session to best protect the interests of the City. The Agency/Council 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 that the Agency/Council's return from closed session, reports of final action taken, and adjournment will not be videotaped. Nevertheless, announcements of actions taken in Closed Session shall be made by Noon on Wednesday following the meeting at the City Attorney's office in accordance with the Ralph Brown Act (Govt. Code § 54957.7) 5. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION -- Pursuant to Government Code Section 54956.9(a) City/Agency vs. IT Group, Inc., et. al. [USBC # 02 10118] ADJOURNMENT The meeting will adjourn to a regular meeting of the Redevelopment Agency on March 2, 2004, at 4:00 p.m., immediately following the City Council meeting in the City Council Chambers. AMERICANS WITH DISABILITIES ACT The City of Chula Vista, in complyin9 with the Americans with Disabilities Act (ADA), request individuals who require special accommodates to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least 48 hours in advance for meetings and five days for scheduled services and activities. Please contact the Secretary to the Redevelopment Agency for specific information at (619) 691-5047 or Telecommunications Devices for the Deaf (TDD) at (619) 585-5647. California Relay Service is also available for the hearing impaired. Redevelopment Agency, February 24, 2004 Page 2 PAGE 1, ITEM NO.: MEETING DATE: 02-24-0 REDEVELOPMENT AGENCY AGENDA STATEMENT ITEM TITLE: RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING TRANSMITTAL TO AFFECTED TAXING AGENCIES, AS REQUIRED BY LAW, OF THE PRELIMINARY REPORT FOR THE 2004 AMENDED AND RESTATED REDEVELOPMENT PLAN FOR THE MERGED CHULA VISTA REDEVELOPMENT PROJECT RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING AMENDED AND RESTATED RULES GOVERNING PARTICIPATION AND REENTRY PREFERENCES FOR PROPERTY OWNERS AND BUSINESS OCCUPANTS FOR THE MERGED CHULA VISTA REDEVELOPMENT PROJECT AREA SUBMlnED BY: COMMUNITY DEVELOPMENT DIRECTOR t:&~" i. Jf1 REVIEWED BY: EXECUTIVE DIRECTOR í) 4/5'HS VOTE: YESDNO0 BACKGROUND In November 2002, the Redevelopment Agency inifiated the process to amend the Merged Chula Visfa Redevelopment Plan (comprised of the Town Centre II, Otay Valley, and Southwest Redevelopmenf Plans) to focilitate extension of redevelopmenf and economic development tools throughout commercial and industrial areas in the wesfern part of Chula Vista (hereinafter referred to as the "2004 Amendmenf"). As a result of fhe decision to withdraw the Bayfront/Town Centre I amendment and the West Fairfield property, City/Agency sfaff defermined thaf it would be betler to ferminate the combined amendment pracess. Staff is proceeding wifh an updated amendment process fo add territory to fhe Merged Chula Vista Redevelopment Project Area (Town Centre II, Otay Valley and Southwest). As part of the 2004 Amendment process, the Redevelopment Agency is required by the California Community Redevelopment Law to prepare and submit to affected taxing agencies a preliminary report that (i) describes the reasons for the 2004 Amendment, (ii) describes fhe physical and economic condifions in the territory to be added to the Merged Chula Visfa Project Area (hereinafter referred fo as fhe "Added Area"), (iii) determines whether fhe Added Area is predominanfly urbanized (as defined by Law), (iv) assesses the proposed mefhod of financing redevelopment, and (v) describes how the projects proposed by the Agency would alleviate blight in the Added Area. Accordingly, consultants under the direction of sfaff and legal counsel have prepared fhe Preliminary Report. The Redevelopmenf Agency is asked to consider adopting a resolution that authorizes staff fo transmit fhe Preliminary Report to affected taxing agencies. /-1 .~-.. ----...-.----.-- ----..~- PAGE 2, ITEM NO.: MEETING DATE: 02-24-0 The Agency will also be considering a separate resolution approving the Amended and Restated Rules Governing Participation and Reentry Preferences for Property Owners and Business Occupanfs. Draft Rules were transmitled to the Town Centre and Added Area Project Area Commitlees last fall, and bofh Project Area Commitlees reviewed and recommended approval of these draft Rules. With the exception of minor fechnical refinements, the proposed final Rules are unchanged from fhe version reviewed by the PACs and are being presenfed to the Agency for consideration and approval. RECOMMENDATION That the Redevelopment Agency adopt the following resolutions: 1) Resolution authorizing transmitlal to the affected taxing agencies, as required by law, of the Preliminary Report for 2004 Amendment, in the form of an Amended and Restated Redevelopment Plan, fo the Merged Chula Vista Redevelopment Projecf Area. 2) Resolution adopting the final Amended and Restated Rules Governing Participation and Reentry Preferences for Property Owners and Business Occupants for fhe Merged Chula Vista Redevelopment Project Area. BOARDS/COMMISSIONS RECOMMENDATION: The Preliminary Report is an informational document and not subject to review or approval by the Project Area Commitlees or Planning Commission. As stated earlier, the draft Amended and Restated Rules Governing Participation and Reentry Preferences for Property Owners and Business Occupants were reviewed and approved by the Town Cenfre Project Area Commitlee (on September 17, 2003) and the Added Area Project Area Commitlee (on October 9,2003). DISCUSSION If adopted by the City Council later this year, the proposed 2004 Amendment would achieve the following: 1) Consolidate the previously merged Town Cenfre II, Otay Valley, and Southwest Redevelopment Plans into a single amended and restated redevelopment plan document fo be known as the Merged Chula Vista Redevelopment Plan, including updating the public improvement and facility projects list in the Plan; 2) Add approximately 494.37 acres of property located throughout the western part of Chula Vista to the Merged Chula Vista Redevelopment Project Area ("Added Area"); and 3) Reestablish eminent domain authority for a period of 12 years on all property (except for residentially-occupied property in a residential zone) in the Town Centre II Redevelopmenf Project Area; and I - ;J... - PAGE 3, ITEM NO.: MEETING DATE: 02-24-0 4) Reesfablish eminent domain authority for a period of 12 years on all property in the Otay Valley Redevelopment Project Area. The 2004 Amendment process was initiated over a year ago, and is nearing completion. Agency staff anticipates thaf the 2004 Amendment would be considered by the City Council after a noticed joint public hearing wifh the Agency to be conducted in late March or early April. In the meantime, several documents related to the 2004 Amendment have been prepared, including a Preliminary Report and final Amended and Restated Rules Governing Participation and Reentry Preferences for Property Owners and Business Occupanfs. These documenfs are described below: Preliminary Report Stafe Law requires that the Agency prepare a preliminary report and submit if to affected taxing agencies (County, school disfricts, and special districts) as part of the Agency's ongoing consultation process. Below is a summary of the Preliminary Report's five components: Section A- Reasons for fhe Amendmenf As described in Section A of the Preliminary Report, the 2004 Amendment is being proposed to achieve the following: 1) Consolidate fhe three exisfina redevelopment plans into a sinale document to expedife administration and implementation of redevelopment in the western part of Chula Vista. The Town Cenfre II, Otay Valley, and Southwesf Redevelopment Plans were prepared at different times over a 15-year period, based on practices and legal requirements in effect at the time. Consequently, the documents vary dramatically, and their merger for financial reasons in 2000 have highlighted these inconsistencies. Additionally, the fact that fhe Added Area would need fo be incorporated into the redevelopment plan creates an opportune fime to updafe and consolidate the existing Redevelopment Plans into a single document. 2) Add property to fhe Proiect Area to achieve a comprehensive redevelopment proaram alonq Broadway, Third Avenue and other commercial and industrial corridors locafed in the western part of the city. The Added Area consists of approximately 494 acres of property that is generally contiguous to the existing Project Areas. Adding this property enables the Agency fo more effectively implement projects such as revitalization of the Broadway corridor as part of the City's overall efforts to atlend to the acute economic development needs in older parts of Chula Visfa. 3) Extend eminent domain authority, consisfent with Aaency policy in other Proiect Areas, in the Town Centre II and Ofay Valley constituent areas. Eminenf domain authority, though 1-.3 PAGE 4, ITEM NO.: MEETING DATE: 02-24-0 rarely used by the Agency, is an essential component of the redevelopment program, particularly in portions of these areas where lot assembly is needed to consolidate undersized lofs under mixed ownership. However, the existing Redevelopmenf Plan's time limit on commencing eminenf domain has expired in the Town Centre II and Otay Valley constifuent areas. Consistent with Agency policy, the 2004 Amendment proposes to extend eminent domain on all property in the Town Centre II and Otay Valley constifuenf areas. In fhe Town Centre II constituenf area the 2004 Amendment would prohibit the use of eminent domain to acquire residentially occupied uses in a residential zone. Otay Valley has no residentially zoned property, and therefore, does nof have this exemption. Though residentially occupied property in residenfial zones would be exempt from eminent domain by fhe proposed 2004 Amendment, eminent domain would be available fo the Agency on residential property in non-residential zones. In most cases, residentially occupied uses are located in residential zones in the Project Area. However, there are eight Trailer parks (seven in the Added Area and one in Town Cenfre II) and two other residential parcels within the Added Area fhat are located in commercial or other non-residenfial zones, that could be subject to eminenf domain acquisition if the 2004 Amendment is approved. In its other redevelopmenf areas, the Agency's policy has been to retain eminent domain on residential property in areas where non-conforming residential uses exist. Though there are no plans to acquire or redevelop these non-conforming residenfial uses at this fime, it is conceivable that some nonconforming residential uses could be redeveloped in fhe future as the Agency looks fo implement the Redevelopment Plan in conformity with City General Plan land use policies and improve the western part of Chula Vista. Eminent domain is an important tool for the Agency as it seeks fo address blighting condifions, such as consolidating and redeveloping parcels that are undersized, lack parking and contain obsolete buildings that sfifle economic growth in fhe area. Section B - A Descripfion of Physical and Economic Bliqhfinq Condifions Exisfinq in the Added Area Secfion B of the Preliminary Report contains a defailed description of the physical and economic blighting condifions in fhe Added Area, and provides stafistical and photographic data as evidence of these condifions. The conditions in the Added Area include the following: . Unsafe/Unhealthy Buildinas - Due in large part to excessive lot coverage thaf inhibits safe onsite parking and circulation, over 50% of the buildings in the Added Area are unsafe, resulting in a disproportionate number of traffic accidents and serious building code violations. This condition is most severe in areas around Broadway and Third Avenue. . Factors Preventina Economically Viable Use Over 50% of the properties on Broadway were rated fair or poor for parking availability due fo insufficient lof acreage and setbacks. 1- t/ PAGE 5, ITEM NO.: MEETING DATE: 02-24-0 . Incompatible Uses - Approximafely 60% of the residential use parcels are located adjacent to industrial and/or commercial uses, resulting in a below market property values of these residences. . Abandoned Buildinas and Excess Vacant Lots/ Low Lease Rates - The average retail lease rate within the Added Area is $1.32, approximately 43% lower than areas outside the Project Area. . Excess of Businesses CaferinQ Exclusively fo Adults - Per square mile, the Added Area has 26 times more liquor stores and 41 times more bars than the entire City. . HiQh Crime Rates - the crime rafes among all reported crimes are more fhan 8 times higher than fhe citywide average. Section C - A Determinafion as to Whefher the Added Area is Predominantly Urbanized The Law requires that the Added Area be predominantly urbanized, generally meaning fhat not less fhan 80% of the land within the area has been developed, is an integral part of an urban area, or is characterized by having lots of inadequate form, shape, and size for proper usefulness and development. The analysis In Section C of fhe Preliminary Report indicafes that approximately 83% of the Added Area is urbanized; therefore, the Added Area is predominantly urbanized as defined by Law. Section 0 - Method of financina Though other sources of revenue may be employed from time-to-time, the Preliminary Report acknowledges that the primary mefhod of financing redevelopment of the Added Area would be tax incremenf financing, and includes a preliminary forecast of projected tax incremenf revenues from the Added Area in Section D. Over the 45-year period the Agency may collect tax increment revenue from the Added Area. The projections in Section D indicate that the Added Area could generate approximately $199 million in gross tax increment revenue during this period. After deducting the mandatory payments to affected taxing agencies required by Law, approximately $92 million could be deposited to the Agency's non-housing fund for redevelopment projects, and another $40 million could be deposited into fhe Agency's housing fund for affordable housing projects. Secfion E - Proposed Projects and ProQrams and How Such Acfiyifies would Address Bliaht As described in Section E of fhe Preliminary Report, the proposed 2004 Amendment, in the form of an Amended and Restated Redevelopment Plan, permits the Agency to undertake a variety of public infrastructure, community facilities, affordable housing, and other redevelopment projects in the Project Area. 1-5"' - PAGE 6, ITEM NO.: MEETING DATE: 02.24-0 Improvements to Merged Chula Vista Project Area public infrastructure are intended to alleviate traffic congestion and improve public safety, remove costly impedimenfs fo development, and upgrade infrasfructure fo contemporary standards to stimulate private development. Community facility improvements enhance the ability of fhe City to provide a commensurate level of services to Project Area and west Chula Vista residents and businesses. Improved service levels can elevafe the appeal of Project Area real estate, fhereby posifively affecting property values. Other Project Area blighting conditions that can be addressed through community facility improvements include reduction of crime rates by expanding the availability of facilifies for after-school programs. Affordable housing projects funded by Project Area tax increment revenue will result in improved housing conditions and expanded availability of affordable housing, addressing dire needs for both in the Project Area. Finally, other redevelopment projects, including assisting private property owners with renovations or redeveloping their parcels, enable the Agency to undertake a comprehensive effort to expand parking and make more efficient use of Project Area parcels fo eliminate safety ond other physical and economic constraints to private redevelopmenf. As required by Law, the Preliminary Report is to be submitled to all taxing agencies that levy faxes in the Project Area, as part of the Agency's consulfation process. The accompanying resolution authorizes staff to fransmit this documenf accordingly. Amended and Restated Rules Governina Participafion and Reenfrv Preferences for Property Owners and Business Tenants Redevelopment Law requires that the Agency have rules to govern owner participation and business occupant reentry for each redevelopment project area. The Agency currently has three different sets of owner participation rules for the Town Centre II, Otay Valley and Soufhwest constifuent project areas. Because these rules were adopted at differenf times (as each constituent project area was originally established) the exisfing rules are procedurally inconsistenf and unnecessarily cumbersome. In lighf of the Agency's current effort to adopt fhe 2004 Amendment which would create a single, consolidated Amended and Restated Redevelopmenf Plan for the Merged Chulo Vista Project Area, staff and consultants have prepared new, consolidated owner participation rules to remove these inconsistencies and the cumbersome administration that comes wifh three separate sets of rules. The atlached resolution adopfs amended Rules Governing Participation and Preferences by Property Owners and Business Occupants for the Merged Chula Vista Redevelopment Project Area. The owner participation rules provide guidelines for the participation of property owners, operafors of business and business tenants in the Project Area. In certain instances when the Agency undertakes redevelopment of a specific property in the Project Area, or a property owner, business operator or business tenant wishes to participate in the redevelopment process, the Rules oufline the procedures fo be followed to ensure that both the rights of the participant in the redevelopment process are preserved and fhe goals stated in the Redevelopment Plan are achieved. 1- fo PAGE 7, ITEM NO.: MEETING DATE: 02-24-0 As stated earlier, the draft Rules were circulated by staff to the Town Centre and Added Area PACs, both of which recommended adoption of fhe Rules wifhout further commenf. The only difference in the proposed Rules from the version presenfed to the PACs is that the proposed Rules are only applicable to the Merged Chula Vista Redevelopment Project Area. These new Rules will go info effect upon the approval and effective date of the Amended and Restated plan for the Merged Project Area. Staff will prepare a separate set of Rules for fhe Bayfront/T own Centre I Redevelopment Project Area at a future date. The adoption of the Rules is nof a project under CEQA because if cannot cause a direct or indirect physical change in the environment. The Rules are purely an administrative tool to decide who gates to participate in a project, not whefher a project is initiated or undertaken (see CEQA Guidelines Sections 15378 and 16160). Moreover, the Rules will not become effective until the completion of the CEQA process for the Amended and Restated Plan. FISCAL IMPACT The costs associated with the 2004 Amendment have been included in the Agency's budget, and involve consulfant and legal services, direct and indirect costs of publishing and mailing public hearing notices, and other incidental staff and overhead costs. Fufure tax increment revenues from the Added Area could offset these costs if fhe 2004 Amendment is adopted by the City Council. As mentioned on page 6, a portion of fhe gross tax increment revenue generated by fhe Added Area is required to be shared with affected taxing agencies that levy taxes in the Added Area. These paymenfs are mandated by Section 33607.5 of the Redevelopment Law, and equal approximafely 34% of the gross fax increment revenue generated over the 45-year time period the Agency may collect tax increment revenue from the Added Area. J,\COMMDEY\STAFF.REP\02-24-04\Prel;m;nacy Repart & OP Rule, - Feb 24 04 - Staff Repart_dac (-1 RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING TRANSMITTAL TO AFFECTED TAXING AGENCIES, AS REQUIRED BY LAW, OF THE PRELIMINARY REPORT FOR THE 2004 AMENDED AND RESTATED REDEVELOPMENT PLAN FOR THE MERGED CHULA VISTA REDEVELOPMENT PROJECT WHEREAS, on August 15, 1978, the City Council of the City of Chula Vista ("City Council") adopted Ordinance No. 1827 approving a redevelopment plan for the Town Centre II Redevelopment Project and has subsequently amended said redevelopment plan on May 19, 1987 by Ordinance No. 2207, on July 19, 1988 by Ordinance No. 2274, on November 8, 1994 by Ordinance No. 2610, and on August 22, 2000 by Ordinance No. 2817 ("Town Centre II Plan"); and WHEREAS, on December 29, 1983, the City Council adopted Ordinance No. 2059 approving a redevelopment plan for the Otay Valley Road Redevelopment Project and has subsequently amended said redevelopment plan on November B, 1994 by Ordinance No. 2611 and on August 22, 2000 by Ordinance No. 2818 ("Otay Valley Plan"); and WHEREAS, on November 27, 1990, the City Council adopted Ordinance No. 2420 approving a redevelopment plan for the Southwest Redevelopment Project and has subsequently amended said redevelopment plan on July 9, 1991 by Ordinance No. 2467, on November 8, 1994 by Ordinance No. 2612, and on August 22,2000 by Ordinance No. 2819 ("Southwest Plan"); and WHEREAS, by Ordinance No. 2819, the Town Centre II Plan, Otay Valley Plan, and Southwest Plan were merged to establish the Merged Chula Vista Redevelopment Plan to facilitate the sharing of financial resources pursuant to Sections 33485 through 33489 of the California Community Redevelopment Law, Health and Safety Code Section 33000 § §§1g. ("Law"); and WHEREAS, on January 13, 2004, the City Council adopted Ordinance No. 2947 amending the Merged Chula Vista Redevelopment Plan to eliminate the time limit on incurring indebtedness, pursuant to Senate Bill 211 codified in Health and Safety Code Section 33333.6(e)(2)(B); and WHEREAS, on February 3, 2004, the City Council adopted Ordinance No. 2949 amending the Merged Chula Vista Redevelopment Plan to extend the duration of the plan's effectiveness and time limit to collect tax increment revenue by one year, pursuant to Senate Bill 1045 codified in Health and Safety Code Section 33333.6(e)(2)(C); and WHEREAS, the Redevelopment Agency of the City of Chula Vista ("Agency") is proposing to amend the Merged Chula Vista Redevelopment Plan to consolidate the constituent redevelopment plans into a single redevelopment plan document referred to as an amended and restated redevelopment plan, add property to the Merged Chula Vista Redevelopment Project Area boundaries, and, subject to certain limitations, extend eminent domain authority in the Town Centre II and Otay Valley constituent project areas ("2004 Amendment"); and WHEREAS, Section 33344.5 of the California Community Redevelopment Law (California Health and Safety Code Sections 33000 § §§1g.) provides that the Agency shall prepare and send to each affecting taxing agency a preliminary report which shall include the information contained in Section 33344.5; and WHEREAS, a Preliminary Report has been formulated and received by the Agency in the form submitted herewith as Exhibit A. /- g' - NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of Chula Vista hereby authorizes transmittal to affected taxing agencies, as required by law, of the Preliminary Report for 2004 Amendment to the Redevelopment Plan for the Merged Chura Vista Redevelopment Project in the form attached hereto as Exhibit "A. Presented by Approved as to form by Laurie M. Madigan Community Development Director J"COMMOEVlRESOS,O2-24-04IP,elim;oo'Y Report & OP R"'.. - Feb 24 04 - Two Re'".doo 1-9 EXHIBIT A PRELIMINARY REPORT FOR THE 2004 AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE MERGED CHULA VISTA REDEVELOPMENT PROJECT 1- 10 Merged Chula Vista Redevelopment Project Area Preliminary Report February 24, 2004 Redevelopment Agency of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 Rosenow Spevacek Group, Inc. 217 North Main Street, Suite 300 Santa Ana, Califomia 92701-4822 Phone: (714) 541-4585 Fax: (714) 836-1748 E-Mail: info@webrsg.com 1- I { Table of Contents Introduction .......................................................................................... i Amendment Process ..............................................................................................ii Reasons for the Amendment ............................................................ A.1 Geographic Boundaries......................................................................................A-1 Existing Project Area...................................................................... A-1 Proposed Added Area..................................................""""""""" A-1 Background .........................................................................................................A-3 Consolidate Redevelopment Plans ................................................ A-5 Include Added Area........................................................................ A-5 Reestablish Eminent Domain in Otay Valley and Town Centre II ... A-? A Description of the Physical and Economic Conditions Existing in the Added Area ................................................................................. B-1 Legal Context of Blight........................................................................................B-1 Physical Blight............................................................................... B-2 Economic Blight ............................................................................. B-2 Inclusion of Non-Blighted Areas if Necessary for Effective Redevelopment.............................................................................. B-3 Blighting Conditions in the Added Area..............................................................B-3 Unsafe and Unhealthy Buildings .................................................... B-5 Factors Preventing Economically Viable Use """"""""""""""", B-13 Incompatible Uses........................................................................ B-1? Vacant and Abandoned Buildings """""""""""""""""""""""" B-22 Low Lease Rates ......................................................................... B-23 Excess of Businesses Catering Exclusively to Adults................... B-26 1-/2. JICOMMDEVITAPIAIPRDJECTSIBIG AMENDMENT1PRELIMINARY REPORT. FEB 9 04 - TEXT.DOC High Crime Rates......................................................................... B-28 Properties Included for Redevelopment Purposes...........................................B-30 Effective Planning and Implementation of the Project................... 8-30 Impact of Conditions on Ajacent Properties.................................. B-30 Imposition of Uniform Requirements over Geographically Defined Area ............................................................................................. B-30 Properties Share in the Benefits of Redevelopment ..................... B-31 Properties are Part of a Blighted Area.......................................... 8-31 A Determination as to Whether the Added Area is Predominately Urbanized ......... ............ ................. ............. ........ ............... ................ C-1 A Preliminary Assessment of the Proposed Method of Financing, Including the Economic Feasibility and the Reasons for the Division of Tax Increment .............................................................................. D-1 Financial Assistance from the City, County, State, and/or the Federal Government ................................................................................... D-1 Property Tax Increment.................................................................. D-2 Bondend Debt................................................................................ D-3 Lease or Sale of Agency-Owned Property...................................... D-3 Participation in Development.......................................................... D-3 Other Available Sources................................................................. D-3 Projected Tax Increment Revenues .................................................................. D-4 Reasons for the Provisions of Tax Increment in the Added Area..................... D-7 A Description of the Projects Proposed by the Agency and How They Will Improve or Alleviate Physical and Economic Conditions of Blight ..... ... ... .... .......... ... .. ... . ... ... .......... ... .. ... .... ... ....... .................. ................ E-1 Public Infrastructure Projects........................................................-. E-1 Community Facilities ...................................................................... E-2 Other Potential Redevelopment Projects........................................ E-2 Photo Survey.....................................................................Appendlx A-1 (-13 J,ICOMMDEVITAPIAIPRDJECTSIBIG AMENDMENnPRELlMINARY REPORT - FEB 9 04. TEXT DOC - n Introduction In an effort to improve its efforts to rev~alize west Chula Vista, the Redevelopment Agency of the City of Chula Vista ("Agency") has proposed an amendment to the previously merged Town Centre II, Otay Valley, and Southwest Redevelopment Plans ("Amendment"). If adopted by the City Council (after a public hearing scheduled later this Spring), the Amendment would accomplish the following: 1) Consolidate the Town Centre II, Otay Valley, and Southwest Redevelopment Plans into a single amended and restated redevelopment plan document to be known as the Merged Chula Vista Redevelopment Plan ("Plan"), including updating the public improvement and facil~y projects list in the Plan; 2) Add approximately 494 acres of property located throughout the westem part of Chula Vista to the Merged Chula Vista Redevelopment Project Area ("Added Area"); and 3) Reestablish eminent domain authority for a period of 12 years on all property (except for residentially-occupied property in a residential zone) in the Town Centre II constituent area of the Project Area. 4) Reestablish eminent domain authority for a period of 12 years on all property in the Otay Valley constituent area of the Project Area. As a part of the Amendment process, this Preliminary Report ("Report") has been prepared in accordance with the Califomia Community Redevelopment Law, Health and Safety Code Section 33000 §! ~. ("Law"). This Report describes the purpose of the Amendment, and the implications of the proposed Plan, and the Agency's proposed overall redevelopment program. Pursuant to the information required by Section 33344.5 of the Law, this Report has been divided into the following sections: SECTION A The Reasons for the Amendment. SECTION B A Description of the Physical and Economic Conditions Existing in the Added Area. SECTION C A Determination as to Whether the Added Area is Predominantly Urbanized. /-1'-/ ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 -1- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - SECTION D A Preliminary Assessment of the Proposed Method of Financing, Including the Economic Feasibility and the Reasons for the Division of Tax Increment. SECTION E A Description of the Projects Proposed by the Agency and How the Proposed Projects Will Improve the Project Area and Alleviate Blight. Amendment Process The Law permits redevelopment agencies to amend redevelopment plans to modify limitations and expand boundaries to facilitate the elimination of blighting conditions. The Law prescribes a specific process involving preparation of various documents, including this Report, consultation with affected taxing agencies, and participation and input from affected residents, business owners, property owners and other stakeholders. The Plan is scheduled for consideration by the Agency and City Council at a joint public hearing later this year. All Project Area property owners, business owners, and other govemmental agencies will be mailed notice of this joint public hearing. I-/~ ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 -11- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - " Reasons for the Amendment Geographic Boundaries The Added Area is located within the corporate boundaries of the City of Chula Vista, San Diego County ("County"), Califomia. Chula Vista is located in the South Bay area of the greater San Diego metropolitan area, 7 miles south of the City of San Diego Downtown and 7 miles north of the US-Mexico border. Chula Vista covers an area of approximately 32,572 acres, contains 64,440 housing units, and the City's population in 2002 was estimated at 191,090, making Chula Vista the second largest city in the County, according to reports from Geographic Applied Solution. Existing Project Area The existing Redevelopment Project Area consists of the previously merged Town Centre II, Otay Valley, and Southwest Redevelopment Project Areas. The total acreage of the existing Project Area is 1,896 acres, or 5.8% of the City; most of this property is in commercial and industrial use. Proposed Added Area The Amendment proposes to incorporate additional territory (known as the "Added Area") to the existing Redevelopment Project Area. The Added Area would increase the size of the merged Project Area by 494 acres (approximately 21 %), bringing the total to 2,390 acres. The parcels that comprise the Added Area lie along the major commercial and industrial roadways in the western part of Chula Vista (Broadway, Third Avenue, E Street, H Street, and other pocket areas in the northem part of the City) that is not already in the existing Redevelopment Project Area. A few residential properties are also included in the Added Area, in order to potentially consolidate the necessary land assembly and effectuate future redevelopment projects. A more thorough description of these properties is provided below. By including all the proposed properties, redevelopment efforts such as infrastructure and capital project improvements will be effective in developing the entire Project Area. The Added Area is comprised of commercially and industrially zoned property, though not all property in the Added Area is currently used for these purposes. The major land uses in the Added Area include commercial, industrial, and residential. Other land uses include vacant, recreational, institutional, and public right of way. Table A-1 presents a land use breakdown of the Added Area. 1- I fc ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 - A-1- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - EXISTING LAND USE TABLE A-1 ADDED AREA Land Use Count of Parcels Parcel Acreage Commercial 385 65.59% 305.84 61.86% Industrial 52 8.86% 49.46 10.00% Institutional 7 1.19% 7.39 1.49% Recreation 2 0.34% 1.04 0.21% Residential 54 9.20% 30.44 6.16% Miscellaneous 49 8.35% 48.65 9.84% Vacant 38 6.47% 24.78 5.01% Subtotal 587 100.00% 467.6 94.59% Publici Right of Way 0.00% 26.77 5.41% Total 587 100.00% 494.37 100.00% Source: Metroscan The boundaries of the Project Area are illustrated on Exhibit A-1. (-(7 ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 -A-2- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - i : . . . . ¡ ~ i v ~ i I ~ ~ ~ :ï ! i i II . i . : , i n I' 1TIl"I..,.,.... ,1lliJ I-If? Background The City of Chula Vista ("City") currently has five redevelopment constituent areas, which were legally established between 1974 and 1990. Unlike the neighboring cities of National City, Imperial Beach and Coronado that have virtually their entire city within a redevelopment project area, only 10% of the City of Chula Vista is currently located within a redevelopment project area. These five existing Redevelopment Project Areas comprise approximately 3,257 acres of property. The Amendment affects three of these five constituent areas-Town Centre II, Otay Valley, and Southwest, which as described in the next paragraph, were previously merged to fonn what is known as the Merged Chula Vista Redevelopment Project Area. The Amendment proposes a modest increase in the total amount of property within the City that would be included in a redevelopment project area, while reinstating eminent domain (except for residentially occupied property in a residential zone) within the Otay Valley and Town Centre 1/ constituent areas. What is now the Merged Chula Vista Redevelopment Project Area (Town Centre 1/, Otay Valley and Southwest) originated on August 15, 1978, when the Chula Vista City Council approved a redevelopment plan for the Town Centre 1/ Redevelopment Project Area. The original Town Centre II Project Area was enlarged on May 19, 19B7 to include several noncontiguous areas in west Chula Vista. The Town Centre 1/ Redevelopment Plan underwent additional amendments in 1988, 1994, and most recently in 2000, though none of these added territory to the Town Centre II Project Area. Major land uses in the Town Centre 1/ are the Chula Vista Shopping Center regional mall, the Civic Center, and other commercial and residential uses. The Otay Valley Redevelopment Plan was adopted on December 29, 1983 and includes commercial, industrial, and vacant properties along the south side of what is now referred to as Main Street, east of Interstate 805. The Otay Valley Redevelopment Plan has been amended twice since its adoption, though none of these amendments modified the boundaries of the original Otay Valley Project Area. The Southwest Redevelopment Project Area includes industrial, commercial, and residential properties in the southem part of the City, along Main Street (west of Interstate 805), Broadway and Third Avenue. The Southwest Redevelopment Plan was originally adopted on November 27, 1990, and amended shortly thereafter on July 9, 1991 to include a small amount of additional area. Several other amendments occurred between 1994 and 2002, though none of these modified the boundaries of the Southwest Project Area. On August 22, 2000, the City Council merged the Town Centre II, Otay Valley, and Southwest redevelopment areas by adopting a series of plan amendments. The area merger did not alter the existing redevelopment plans themselves, but authorized the use of tax increment funds throughout the three merged project areas. The proposed Amendment is intended to consolidate the three separate / -{ c¡ ROSENOW SPEVACEK GROUP. lNG, EDEVELOPMENT AGENCY OF THE CITY OF CHUlA VISTA FEBRUARY 9, 2004 -A-3- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - redevelopment plans into a single document for streamlined administration and consistency with current Law. More recently, the City Council amended the existing Redevelopment Plan to rescind the time limit to incur debt (in January 2004) and extend the duration of the Plan's effectiveness and time period to collect tax increment revenue by one additional year (in February 2004). The Added Area adjoins much of the existing merged Project Area and incorporates the majority of the remaining commercially zoned property along major west Chula Vista arterials like Broadway and Third Avenue. Though currently outside the existing merged Project Area, the Added Area faces many of the same land use problems of the existing Project Areas, such as obsolete strip commercial development that lacks parking and contains several incompatible land uses. These and other physical problems, coupled with serious economic problems including high crime rates and low lease rates, forestall revitalization of these areas. Section B of this Report elaborates on the specific blighting conditions in the Added Area. The members of the Agency Board are responsible for oversight and implementation of redevelopment programs in the Town Centre II, Otay Valley, and Southwest constituent redevelopment project areas that form the Merged Chula Vista Redevelopment Project Area. The Agency's redevelopment successes during the past years include rehabilitation of older commercial buildings in downtown, major renovations at the Chula Vista Shopping Center, streetscape and public infrastructure improvements along Main Street and Broadway, construction of new public facilities and development of affordable housing. At the same time, the Agency's efforts are increasingly becoming insufficient to meet the magnitude of the problems in the older parts of the City. With the development of new, contemporary neighborhoods and commercial developments east of Interstate 805, residents in the western part of Chula Vista face a lower standard of public infrastructure, obsolete and deteriorating neighborhood retail areas, concentration of car accidents, and higher crime rates. The City is investing a significant amount of resources in the western part of Chula Vista beyond redevelopment resources. The ongoing General Plan update places a high priority on establishing a new vision for older parts of the community, while the recent Chula Vista Economic Development Strategy delineates opportunities to enhance industrial and retail areas in the City. However, for the General Plan and the Economic Development Strategy to be successful, financial and land acquisition resources will be needed because the private sector alone has not demonstrated an ability to remedy the physical and economic conditions. Govemmental assistance is necessary to remove major impediments to development and trigger projects that will remove blighting influences and improve the affected areas. The specific goals of the Amendment are described below. /-";-0 ROSENOW SPEVACEK GROUP. INC. EOEVELOPMENT AGENCY OF THE CITY OF CHUlA VlSTA FEBRUARY 9, 2004 -A-4 - CHULA VISTA REOEVELOPMENT PROJECT AREA PRELIMINARY REPORT - Consolidate Redevelopment Plans The Amendment would enable the Agency's redevelopment work in the westem part of Chula Vista and the existing redevelopment project areas in particular. The three existing constituent redevelopment plans, Town Centre II, Otay Valley Road and Southwest were adopted between 1978 and 1991, and each plan was prepared by different staff and consultants and based upon the practices and statutes at that time. As a result, the policies and language within these plans differ dramatically. As a result, administration of the plans can be difficult due to these inconsistencies. For example, implementation of a project on Broadway or Third Avenue could involve review of two or three different redevelopment plans, a confusing and unnecessary process for staff and potential private sector developers and property owners. By consolidating the three separate redevelopment plans into a single plan, the Agency would be able to more efficiently administer project implementation, and provide the general public one relatively concise redevelopment plan (instead of three very different documents). Include Added Area The Amendment also allows the expansion of redevelopment tools into 494 acres of property that currently does not fall within the existing Project Area. Incorporating these additional properties in the westem part of Chula Vista into the redevelopment program provides incentives to property owners to renovate and redevelop their properties, while enabling the Agency to more consistently implement improvements along all of Broadway, Third Avenue and other blighted areas in the City where redevelopment tools do not exist. In some cases, inclusion of these additional parcels is necessary to effectively implement redevelopment programs in the existing Redevelopment Project Area. The Added Area is generally characterized by blighting conditions such as unsafe and unhealthy buildings, incompatible uses, factors that hinder the economically viable use, abnormally low lease rates and excess vacant lots and abandoned buildings, excess of businesses catering exclusively to adults, and high crime rates. Section B demonstrates in detail the physical and economic blighting conditions in the Added Area. Exhibit A-2 displays the boundaries for the Added Area. I-~' ROSENOW SPEVACEK GROUP, INC. EDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARV 9. 2004 -A-5- CHULA VISTA REOEVELOPMENT PROJECT AREA PRELIMINARY REPORT ......~í , , , \ \ 1 L__--t I 1- ; rl'. II] '\ \ I \ + Merged Chule Viste Redevelopment Project Aree I > ;;I Added IVee Boundar; Exhibit A-2 Added Hea .."",.OtyUm", Boundary Map 1- :J....J- ROSENOW SPEVACEK GROUP, INC. EDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9,2004 -A-B- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - Reestablish Eminent DomaIn in Otay Valley and Town Centre II The Amendment also proposes to reestablish eminent domain authority in the Otay Valley and Town Centre II constituent areas (except for residential uses on residentially zoned property). Though rarely used, eminent domain is an essential tool when the Agency participates in projects involving assembly of property, particularly in areas like Otay Valley and Town Centre II where assembly of undersized parcels in mixed ownership frustrates efforts to develop contemporary uses. In addition, the ability to condemn property is one practical way to compel owners to redevelop their property through the owner participation process. At the time of their adoption, both the Town Centre II and Otay Valley constituent areas permitted the use of eminent domain on all property. Consistent with statutory limitations, the time limit to commence eminent domain expired 12 years following their adoption in 1990 in Town Centre II and 1995 in Otay Valley. The Law permits Agencies to extend this time limit by a plan amendment. Accordingly, the proposed Amendment would establish a new 12-year time limit to commence eminent domain in the Otay Valley and Town Centre II constituent areas, commencing from the date the Amendment is adoptec!--except that condemnation authority would not apply to occupied residential uses located on residentially zoned property. (Note: the Otay Valley constituent area currently has no residentially zoned property.) Extension of this time limit provides the Agency the option to use eminent domain in the future, though there are no plans to acquire any property at this time. The Amendment would also establish eminent domain authority for 12 years in the Added Area, but again this authority would not apply to occupied residential uses located on residentially zones property in the Added Area. Though residential property in residential zones would be exempt from eminent domain by the proposed Amendment, eminent domain would be available to the Agency on residential property in non-residential (commercial and industrial) zones. In most cases non-residential uses are located in non-residential zones in the Project Area. However, there are eight mobile home parks (seven in the Added Area and one in Town Centre II) and two other residential parcels within the Added Area that are located in commercial or other non-residential zones, that could be subject to eminent domain acquisition if the Amendment is approved. In its other redevelopment areas, the Agency's policy has been to retain eminent domain in areas where incompatible residential uses exist; though there may not be plans to acquire or redevelop these residential uses today, over the next several years, it is conceivable that some residential uses could be redeveloped in the future as the City looks to implement the General Plan goals to improve west Chula Vista. Eminent domain is an important tool for the Agency as it seeks to address blighting conditions such as consolidating and redeveloping parcels that are undersized, lack parking and contain obsolete buildings that stifle economic growth in the area. / -;2.3 ROSENOW SPEVACEK GROUP, INC, EDEVELOPMENT AGENCY DF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 -A-7- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELlMINARV REPORT - n A Description of the Physical and Economic Conditions Existing in the Added Area This Section describes the blighting conditions that exist within the Added Area. The Added Area is characterized by both physical and economic blighting conditions as defined by Law. The conditions found in the Added Area include the following: . Unsafe/Unhealthy Buildings - Due in large part to excessive lot coverage that inhibits safe onsite parking and circulation, over 50% of the buildings in the Added Area are unsafe, resulting in a disproportionate number of traffic accidents and serious building code violations. This condition is most severe in areas around Broadway and Third Avenue. . Factors Preventing Economically Viable Use - Over 50% of the properties on Broadway were rated fair or poor for parking availability due to insufficient lot acreage and setbacks. . Incompatible Uses - Approximately 60% of the residential use parcels are located adjacent to industrial and/or commercial uses, resulting in a below market property values of these residences. . Abandoned Buildings and Excess Vacant Lotsl Low Lease Rates - The average retail lease rate within the Added Area is $1.32, approximately 43% lower than areas outside the Project Area. . Excess of Businesses Catering Exclusively to Adults - The Added Area has 26 times more liquor stores and 41 times more bars per square mile than the City as a whole. . High Crime Rates - Crime rates in (among all reported crimes) in the Added Area are more than 8 times greater than the citywide crime rates. This Section of the Report describes the preliminary findings of blight in the Added Area. Legal Context of Blight Sections 33030 through 33039 of the Law describe the conditions that constitute blight in a redevelopment project area. A blighted area is one that necessitates {-:¿'-/ ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARV 9. 2004 - B-1 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - the creation of a redevelopment project area, because the combination of conditions in an area consmute a burden on the community, and cannot be alleviated by private enterprise, govemmental action, or both. Section 33030 of the Law defines a blighted area as one that contains both ofthe following: An area that is predominantly urbanized and is an area in which the combination of physical and economic blighting conditions is so prevalent and so substantial that it causes "a reduction of, or lack of, proper utilization of the area to such an extent that it constitutes a serious physical and economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment." To be blighted a project area (in this case the "Added Area") must have at least one physical blighting condition and at least one economic blighting condition, as defined in Section 33031 (a) and (b), respectively. Physical Blight Section 33031(a) of the Law describes physical conditions that cause blight as one or more of the following: 8 Buildings in which it is unsafe or unhealthy for persons to live or work. Serious building code violations, dilapidation and deterioration, defective design or physical construction, faulty or inadequate utilities, or other similar factors can cause these conditions. 8 Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots. This condition can be caused by substandard design, inadequate size given present standards and market conditions, lack of parking, or other similar factors. 8 Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels or other portions of a project area. 8 The existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in mu~iple ownership. Economic Blight Section 33031 (b) of the Law describes economic conditions that cause blight as one or more of the following: 8 Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to, those properties containing hazardous wastes. 1- ;¿~ ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 - B-2 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT . Abnormally high business vacancies, abnormally low lease rates, high tumover rates, abandoned buildings, or excessive vacant lots within an area developed for urban use and served by utilities. . A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks and other lending institutions. . Residential overcrowding or an excess of bars, liquor stores, or other businesses that cater exclusively to adu~s, which has led to problems of public safety and welfare. . A high crime rate that constitutes a serious threat to the public safety and welfare. Section 33030(c) of the Law also states that a blighted area may be one that contains inadequate public improvements, facilities, or utilities when other blighting conditions are present. Inclusion of Non-Blighted Areas if Necessary for Effective Redevelopment Section 33321 of the Law states that non-blighted areas can be included if they are necessary for effective redevelopment, the law defines as follows: A project area may include lands, buildings, or improvements which are not detrimental to the public hea~h, safety or welfare, but whose inclusion is found necessary for effective redevelopment of the area of which they are a part. Blighting Conditions in the Added Area This section presents a detailed analysis of blighting conditions within the Added Area. RSG documented current conditions based on interviews with Community Development, Code Enforcement, Public Works, Fire, Building, Planning, and Police Department, and discussions with local realtors, analysis of local real estate and economic data, and review of various reports and studies. The following Table B-1 lists the individuals consulted. 1- 'V- ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 - B.3- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - ...... .0"'" """'" ".,......, "..0"""'" '1'."0" ""..O¡ """..". .."'...:... MERGED CHULA VISTA REDEVELOPMENT PROJECT AREA Name Title Organization Bart Benjamin Chula Vista Police Department Tracy C. Clark Retail Broker Voit Commercial Brokerage Michael Cullen Retail Broker Walsh Financial Commercial Xavier Del Valle Community Deveiopment Specialist Chula Vista Community Development David Eisenberg Sergeant Chula Vista Police Department Jim Geering Fire Marshal Chula Vista Fire Department Glen Googins Deputy City Attomey Chula Vista City Attorney's Office Leilani Hines Senior Community Development Specialist Chula Vista Housin9 Division Joan Hughes Senior Code Enforcement Officer Chula Vista Code Enforcement Lupita Lopez Residential Broker Century 21 All Reai Estate Steve Morris Crime Analyst Chula Vista Police Department Nancy Ross GIS Specialist Chula Vista Technology Information GIS Lucianda Sm~h Lead Programmer/Analyst Chula Vista 8usiness License John Still Commercial Broker Flocke & Avoyer Commercial Real Estate Miguel Tapia Principal Community Development Specialist Chula Vista Commun~y Development Karen Wooten Permit Processing Supervisor Chula Vista Buiiding Depariment In addition, RSG conducted a parcel-by-parcel field survey of the Project Area in February 2003 and again in October 2003. The purpose of the field survey was to locate and evaluate the exterior blighting conditions in the Added Area. Each parcel was evaluated based on the physical condition of the structure, the condition of the lot, the land use and the land use compatibility with surrounding uses. The following criteria were included in and evaluated during the survey: . Damaged/deteriorated wall materials . Damaged/deteriorated roofing . Damaged/deteriorated foundation 8 Damaged/deteriorated overhangs/posts . Damaged/deteriorated porch/stairs . Damaged/deteriorated rafterslframing . Damaged/deteriorated doorslwindows . Damaged/deteriorated wiring/utilities . Conditions that resulted in safety hazards . Lack of parking . Inadequate setbacks causing land use conflicts . Insufficient loading areas (-Ø1-7 ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 - B-4 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - . Ingress/egress problems . Vacancies exceeding 20% of the gross building area . Abandoned buildings . Incompatible uses On Iv serious phvsical or economic conditions were noted; properties needing repainting, new signage, or general cleanup, while prominent within the Added Area, were not identified as a part of the field survey because these conditions were not deemed to be a reliable and consistent measure of physical or economic blighting conditions. A property was considered blighted if some or all of the above criteria were present. The types of blighting conditions noted within the Added Area include unsafe and unhealthy factors that hinder the economically viable use, incompatible use, abandoned buildings and excess vacant lots, low lease rates, excess adult businesses and crime rates. Unsafe and Unhealthy Buildings Background Prior to the construction of Interstate 5, Broadway was the primary north-south route between Mexico and Southern Califomia. The commercial corridors and trailer home parks on Broadway and Third Avenue evolved in the early 1960 from the demand of increasing travelers and vehicle transportation to the Mexican border. Serving as transit corridors, the building size and site layout of the commercial stores supported travelers with small lots and setbacks. At about the same time, mobile home parks developed along Broadway and Third Avenue. When the City emerged into a bedroom community and experienced rapid population growth, Broadway and Third Avenue became increasingly well- traveled and denser commercial uses moved into the area. The density resu~ed in tighter spacing between buildings especially in and around the mobile home parks. The increase in population also resulted in the surge of number of passenger vehicles, which escalated the demand for parking. Coupled with the growth factor and demand for parking, the existing commercial areas lacked the lot size to accommodate contemporary building development standards such as setbacks and parking, and consequently, resu~ed in unsafe conditions today. The mobile home parks also pose a safety concem as the growth of population and housing costs conflict with the physical constraints of the site, jeopardizing setbacks and fire truck access. Defective Design The primary problem with Added Area properties is the fact that approximately 50% of the parcels are not designed in such a way to leave enough space around the building for parking and onsite circulation. So while the buildings themselves I~ :LV ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA FEaRUARV 9. 2004 - 8-5 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELlMINARV REPORT - may not be deteriorating in every case, the defective design of the buildings, including the excessive lot coverage and positioning of the building on the lot, results in serious safety hazards. These problems include a high concentration of car accidents and code violations in Added Area properties. Due to insufficient setbacks, parking is limited and vehicles are frequently observed parked on sidewalks and ingress/egress areas, posing serious hazards to other drivers as well as pedestrians. During the survey, RSG noted at least 50% of the commercial properties on both Broadway and Third Avenue contained one or more vehicles parked on portions of the sidewalks or in circulation paths. The correlation between the lack of circulation and parking is evident as business owners and residents must make compromises between parking and safe circulation. WIThout proper circulation space, drivers are forced to maneuver through narrow lanes, creating a higher tendency of traffic accidents. Due to the highly subdivided nature of properties in these areas, many parcels have separate ingress/egress to Broadway or Third Avenue. This compounds the problems in these areas. Not only do these conditions on many parcels, but also the relative excessive numbers of curb cuts for ingress/egress reduce the availability of street parking. Without sufficient parking spaces, customers leave the area to shop elsewhere where parking is readily available or are forced to park on circulation access or sidewalks. Another design deficiency that is common along Broadway and Third Avenue occurs when a car is forced to reverse to exit, and is blinded on cars parked on the street. As an existing car attempts to reverse into the traveling lane and is blocked by parked cars, this creates opportunities for car accidents to occur. The following illustration demonstrates this traffic hazard: I-.t~ ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARV 9. 2004 - B-6 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARV REPORT - EXITING CAR VIEW BLOCKED The lack of access space and shortage of parking both contribute and impact traffic conditions. The following table indicates that Broadway is the street with the highest traffic accident occurrence in the city based on the number of accidents per linear foot. ..'H~~I""'IO!I'J~~...,.r .":1.":&" SELECT ADDED AREA LOCATIONS Total Total Average Ratio to Accidents Distance FU Accident City (Feet) Citywide 831 856,327 1030.48 1.00 Streets with Highest # of Accidents Broadway 108 24,728 228.96 4.50 Palomar Street 31 12,176 392.77 2.62 HStreet 90 42,954 477.27 2.16 1/ Traffic accidents reported from July 1, 2002 through December 31,2002 Chula Vista Police Department The number of traffic accidents on Broadway is 4.5 times higher than the citywide average. Exhibit B-1 shows the location of the traffic accidents from July 1, 2002 through December 31, 2002. The number of traffic accidents is also concentrated on E Street, between Fourth and Second Avenue as shown in the 1-.3ÆJ ROSENOW SPEVACEK GROUP, INC, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 -8-7- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT exhibit. This condition persists in all parts of the Added Area, particularly along Broadway and Third Avenue. ....¡ .. , , , \ \ I L___".... F:, :-r" .. ,Ii rcc. ," \: ~ '\ LEGEND + M.ged Chula VIsta Radewlopmant Project "'e. . . TrellicA,""en!, Exhibit B-1 Traffic Accidents Within the Added Area I - .3--( ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 - B.8- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - Building Code Violations and Deteriorated Structures The number of serious building code violations per parcel in the Added Area is more than nine times higher than the average citywide, according to recent data procured from the City's Code Enforcement Department. More than one out of every five parcels in the Added Area had a code violation cited in 2001. More than 75% of the building code violations in the Added Area are concentrated along the Broadway corridor. Within the Added Area, parcels on Broadway alone had 113 of the 139 code violations within the Added Area during 2001. In total, 107 (18%) of the Added Area's 587 parcels had one or more of these code violations during 2001. By contrast, less than 2% of all parcels citywide had a code violation that same year. The density of code violations is attributed to its lack of parking and physical lot constraints that entices property owners to over utilize their property, thereby violating municipal code. According to Teresa Broussard, a Specialist at the City's Code Violation Department, one of the most common violations in the Added Area is building without permit. Attempting to operate a business effectively despite lot size limitations, business owners construct structures illegally knowing that they otherwise would not be approved. These conditions also exist in mobile home parks, where occupants are skirting building codes in an attempt to make their space livable in the face of costly housing prices. Ms. Broussard indicates that the types of code violations found in mobile home parks include building without permit. The conflict between the property owners' desire to improve the buildings and to meet today's building codes is evident from the high concentration of code violations. The number of code violation occurrences in subareas C-12, C-9, A, C-2, C-9, C-10, C, C-11, B-2, and C- 7 is greater than 5 times the citywide average based on the number of code violations to the number of parcels. A summary of building code violations is presented in the Table B-3 below. 1-.32- ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 - B-9 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - . :1111. tJ I ~ 'OW""'t' :a'j '"""~I 10' ~¡....r .'1:1.:81:11<. ADDED AREA Code Violation Total Number % of Violations Ratio Subarea Occurrences of Parcels to Parcels to City Citywide Average 1,123 47,923 2,34% 1,00 Added Area Statistics Highway 54/lnterstate 805 Area 3 60 5,00% 2.13 (Subareas A-1, A-2) North Third Avenue Area 4 37 10.81% 4.61 (Subareas B-1, B-2) South/Central Third Avenue Area 19 163 11.66% 4.97 (Subareas B, C, C-1, C-2, C-3, C-4, C-6) North/Central Broadway Area 94 276 34.06% 14.53 (Subareas A. C-7, CoB, C-9. C-10, C-11) South Broadway & West Fairfield 19 51 37.25% 15.90 (Subareas C-12, C-13) Total Added Area t39 587 23.68% to.t1 1/ Building code violations reported for year 2001 Source: Chula Vista Code Enforcement Department Exhibit B-2 presents the location of the code violation occurrence within the Added Area the year 2001, provided by Chula Vista Code Enforcement Department. 1-33 ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FE8RUARV 9. 2004 - 8-10 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARV REPORT - 'r ........¡ , I , \ \ 1 L......., - 1- ,. ... -J.~: , t ' í \' , I '\ LEGEND + Merged ChIlI. Vista Redevelopmant Project Are. . Code Violation Occurence Exhibit B-2 Code VIolation Within the Added Area (-3<! ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 . B-11 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - Structural deterioration is also evident in some portions of the Added Area, according to field inspections conducted by RSG over the past 10 months. The photo survey contained in the Appendix of this Report includes specific examples of buildings in disrepair that pose safety risks to occupants, including buildings on Trousdale Drive and Press Lane, the 200 block of Broadway, the 300 block of Broadway, the 400 block of Broadway, the 1100 block of Broadway, Third Avenue, and Glover Avenue. Common structural problems included weathered and neglected building exterior materials such as siding, roofing, window frames, and other critical structural elements. Prolonged decay of these conditions can lead to a weakening of structural integrity, increased fire susceptibility, weather- induced damage, and wood infestation. Fire Hazards Commercial and mobile home properties in the Added Area lack sufficient space for parking, which forces customers and residents to congest parcels with parked vehicles. This circumstance creates serious safety risks due to impaired access. Without proper access, firefighters and emergency equipment cannot fight the fire effectively and waste valuable time when forced to extend the fire hose. For example, a commercial medical office building on Third Avenue had cars parked on both sides of the on site circulation area, limiting the width of the throughway to less than ten feet. According to Jim Geering, the Fire Marshall at the Chula Vista Fire Department, the minimum fire truck circulation width is 20 feet. Thus, parking deficiencies can pose serious safety risks to building occupants when emergency vehicle access is limited. For mobile home parks that were developed decades ago, an increased demand for parking and additional improvements have resuRed in shortage of space and sacrifices buffering space between each unit and fire truck access. Trained RSG field surveyors visited each mobile home park in February 2003 and assessed the throughway width between mobile homes. RSG estimates that nearly 75% of the throughways in the Added Area's seven mobile home parks have less than 20 feet width as cars are parked on the side(s) of the street, limiting the width of the access. This condition is found in subareas A, B, C, and C-13. The pictures from the field survey in Appendix A exhibit this condition. The construction material and the distance between the mobile home park units are also more susceptible to the spread of fire. Mr. Geering also indicated that lightweight construction material is more susceptible to fire damage and spread of fire. The closer the structures are located next to each other, the faster the fire will spread. Since the mobile home units were not built with fire rated walls, the units will bum faster than other types of residential units. In some cases, occupants have worsened the fire safety of buildings by using highly flammable material like plywood to make exterior repairs. The combination of the lack of sufficient space for fire truck access, lightweight construction material, and the I -.,3 S- ROSENOW SPEVACEK GROUP. lNG, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 - a-12 - CHULA VISTA REOEVELOPMENT PROJECT AREA PRELIMINARY REPORT .. close proximity of the mobile home park makes the area more vulnerable to fire damage in the event of a fire. Why Redevelopment? Thus far, the efforts of private enterprise and govemment agencies have been unable to sustain a widespread effort to correct unsafe and unhealthy conditions in the Added Area. The cost to redesign the layout of the buildings in the Added Area is difficult to overcome because it often requires acquisition and redesign of properties in mixed ownership. Property owners do not have the financial power to acquire neighboring sites for expansion purposes especially when retail commercial lease rates on Broadway and Third Avenue are 43% below the city average retail rents, suggesting that there is insufficient revenue set aside for capital improvements or an incentive to undertake a small scale redevelopment effort in the face of depreciated market values. By expanding the Plan's authority to the Added Area, the Agency would have many tools to repair or redevelop unsafe and unhealthy conditions in the Added Area. For example, the Agency could also work with property owners to create shared parking areas where feasible, or redevelop blighted properties. The Agency could also research and identify traffic accident hot spots and invest in capital improvement projects that will decrease traffic problems such as adding signals or signage. Factors Preventing Economically Viable Use According to the Law, factors such as a lack of parking, inadequate size, and substandard design can be an indication of blight in a project area if such conditions prevent or substantially hinder the economically viable use of buildings or lots. Based on RSG's field survey and other studies conducted by the City, the Added Area contains many parcels that have serious parking and design problems that significantly hinder their economically viable use. The Added Area consists mainly of retail and commercial land uses, many of which lack off street parking and are difficult to access from the busy streets, especially along Broadway, Third Avenue, and Trousdale Drive. RSG estimates that over 50% of the parcels have insufficient lot size and/or setback to support onsite parking and rely on street parking. This condition is evident in subareas A, A-1, B, C, C-12, and C-13. The lack of setbacks constrains the expandability of the building, pedestrian improvements, and other infrastructure improvements. When parking is not readily available, potential customers are forced to spend more time locating a space, creating inconvenience and loss of sales. Generally, consumers look at convenience as an attribute when deciding if he/she will shop there. With the emergence of large retail centers with accessible parking in other parts of the City, retail shops on Broadway and Third Avenue cannot compete effectively in the City. 1-3l.ø ROSENOW SPEVACEK GROUP, INC. REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 - B-13 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - Most of the lots within the Added Area cannot accommodate contemporary retail development without first consolidating ownership of existing parcels. According to the Dollars and Cents of Shopping Center (2002), the median building size of the smallest anchored tenant was 17,640 square feet. Taking into account space for onsite parking and other setbacks, this translates into a minimum lot size of 0.B1 acres. The median size of commercial lots within the Added Area is 0.31 acres, approximately 38% of the lot requirement for an anchor tenant. In fact, the overwhelming majority of the Added Area's commercial lots (79%) do not meet this minimum standard. Consequently, without incentives to consolidate ownership and create larger parcels of contiguous ownership, the Added Area stagnates and provides only a limited range of retail needs. As described later in this Report, the limited range of retail in the Added Area is disproportionately shifted towards liquor stores and bars that further undermine the character of the Added Area as a retail destination. Broadway The majority of the buildings on Broadway were constructed around 1 969, thus prior to teday's retail standards. Therefore, many of the buildings' layouts do not accommodate for parking or traffic access. As Broadway evolved into a prominent retail corridor, many of the buildings became retail use to accommodate the demand despite the fact that many of the lots have no or little front setback for parking and ingress/egress. However, with the population growth in the city, parking demand spilled over onto and overcrowded the streets. The reliance on street parking and the lack of onsite parking continues to be problematic. Street parking alone cannot sustain the continuous growth of the city. In 2000, the City performed a survey of Broadway's parking condition. As Table B-4 indicates, approximately 50% of the sites rated either fair or poor, indicating lack of available parking on Broadway. BROADWAY PARKING CONDITIONS TABLE B-4 ADDED AREA Total Rated Parking Availability Rating Percent Subarea Parcels Good Fair/Poor Fair/Poor A 243 187 56 23.0% C-7 8 3 5 62.5% C-8 2 1 1 50.0% C-10 13 7 6 46.2% Total 266 198 68 25.6% Source: Broadway Revitalization Study, City of Chula Vista A parcel is rated fair when the property lacks on-site/off-site parking for business type; parking lots that are not adequately landscaped or maintained; parking lots that are beginning to deteriorate (asphait) while poor rating represents no on- onsite parking and relies only on street parking. Exhibit B-3 displays the parcels that were rated either fair or poor. / -3 Î ROSENOW SPEVACEK GROUP. INC. REOEVELOPMENT AGENCY OF Tl-IE CITY OF CHULA VISTA FEBRUARY 9, 2004 - 8-14 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT LEGEND + Merged Chula VISta Redevelopmont Project Area .. - Parcols Rated Fairor Poor forPar1<InQ Exhibit B-3 Broadway ParKing Condition Survey Map 1-3~ ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 - 8-15 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - The median lot size within the Added Area on Broadway is 0.31 acres and including the building, limits the available size for property owner to add parking to its business. Many owners have attempted to add parking on its front setback to accommodate for parking demand, but the lengths of the setbacks are so short that cars are parked on parts of the sidewalk and/or less than three feet from the entrance of the building. The lack of buffer between the automobile and building is a safety hazard because there is no buffer between the car and the building or people patronizing the store. When cars are parked partially on the sidewalks, the sidewalks are blocked and pedestrians are forced to share right of way with automobiles. Consequently, this creates a high volume of traffic accidents. As shown in Table B-2 earlier in this section, Broadway has the highest number of car accidents in the City. Third Avenue Commercial properties on Third Avenue also suffer from inadequate parking areas. At least 19 (25%) of the 75 of the parcels on Third Avenue were noted during the survey for insufficient parking, as evidenced by cars double-parked (blocking another car), parking in unmarked areas, parking on sidewalks, or blocked or constrained ingress/egress. For example, the medical center on Third Avenue had cars parked on both sides of the on site circulation area, limiting the width of the throughway to less than ten feet. As previously mentioned, the Fire Department has determined that throughways of at least 20 feet are needed for emergency vehicle access. Thus, parking deficiencies can pose serious safety risks to building occupants when emergency vehicle access is limited. The insufficient designated parking areas impact the economic well being of the businesses by creating inconvenience for customers. For example, a business on 690 Block of Third Avenue had approximately 32 feet total from the front of the parking space to the wall of another building. According to Architectural Graphic Standards (a thumb of rule guide book for architects), the ideal distance is 42 feet for a passenger vehicle to park and reverse to exit. During the survey, RSG noted that customers would have to reverse at least three times to maneuver the vehicle to exit. Trousdale Drive This street mainly consists of auto repair shops and other industrial facilities. During the survey, cars occupied both sides of Trousdale Drive and its neighboring streets, and little space was available on many properties for onsite parking and truck deliveries. Cars were also parked on pedestrian walkways or blocked other cars, signaling the lack of sufficient onsite parking. Sidewalks and pedestrian crosswalks were also nonexistent in many areas, which create a safety hazard as cars are sharing the same right-of-way as pedestrians. Why Redevelopment? As previously mentioned, the private sector alone cannot eliminate the blighting conditions due to its extraordinary costs. The common problem on Broadway 1-3CJ ROSENOW SPEVACEK GROUP, INC. REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 - B.16 - CHULA VISTA REOEVELOPMENT PROJECT AREA PRELIMINARV REPORT - and Third Avenue is insufficient lot acreage that limits onsite parking and traffic circulation space. According to recent development costs of similar projects, the construction costs of surface or subterranean parking range from $5,000 to $20,000 per space, demanding on the type of construction. Even if a property owner was able to acquire and clear nearby parcels, the paving and construction costs are expensive and infeasible. Industrial business owners cannot charge its customers for parking and cannot generate higher rental income by providing parking on a limited basis because the surrounding properties have a more direct influence on lease rates. Through the tools of redevelopment, the Agency can implement programs to provide incentives to ensure that future development in the Added Area provides sufficient parking and loading area. In areas such as Trousdale Drive where sidewalks are incomplete, the Agency could invest in sidewalk projects that would provide safer pedestrian areas. Incompatible Uses Incompatible uses in the Added Area were identified during the field survey and subsequently analyzed to ascertain the extent that incompatibilities hindered the economic development of the area. Based on field observations, some of which are specifically documented in the photo survey in the Appendix of this Report, incompatible uses were evident on 21 different Added Area streets, including the following: 1) Anita Street 2) Broadway 3) Casselman Street 4) Manor Drive 5) E Street 6) Garrett Avenue 7) H Street 8) I Street 9) J Street 10) Jefferson 11) K Street 12) Madison Avenue (- 40 ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 - B-17 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT .. 13) Mankato Street 14) Mcintosh Street 15) Oaklawn Avenue 16) Quintard Street 17) Roosevelt Street 18) Second Street 19) Third Avenue 20) Vance Street 21) Woodlawn Avenue Within the Added Area. incompatible uses occur between commercial uses and adjacent residential mobile home park properties in subareas A, B, B-1, and C. Land use incompatibilities in these areas stem from growth in west Chula Vista that has increased the intensity of traffic and development in these areas. Lots in these areas are undersized, so properties lot coverage is typically higher in these areas, which reduces setbacks and space for parking and buffers to adjacent residential uses. Because these lots were not subdivided to accommodate this type of development, conflicts between remaining residential uses occurred. Table B-5 lists the number of incompatible uses within the affected subareas. Overall, 82.2% of the residential use parcels within these four subareas were located next and/or adjacent to parcels of industrial and commercial use. INCOMPATIBLE USES TABLE B-5 ADDED AREA Number of Residential Use Number of % of Incompatible Subarea Parcels Incompatible Use Use to Parcels A 11 8 72,7% B 27 25 92.6% B-1 3 1 33.3% C 4 3 75.0% Total 45 37 82.2% Source: RSG Field Survey The conflict from residential use locating on a retail corridor (Broadway and Third Avenue) is evident among the mobile home parks. In one instance, an automobile parts store was built so close to a mobile home park that the exterior I -4t ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 - B-16 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT walls of the buildings nearly touch each another. An example of this condition is shown in the photo survey in the Appendix to this Report. Exhibit B-4 locates the parcels with incompatible use. (-4"2- ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 - 8-19 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARV REPORT - ...."7 , , , \ \ 1 L___., 1 : I ' '"1' ':1 1 ' ,. , , LEGEND + Merged Chule Vlste Redevelopment Projed Aree - Incompst,bI.U" Exhibit 8-4 Incompatible Use 'Within the Added Area ! -4-3 ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 .6-20 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - Other land use incompatibilities exist between small Added Area commercial properties and adjacent residential areas. Added Area properties generally abut existing single-family neighborhoods, and lack proper buffers between the residential uses. These land use patterns create additional conflicts between Added Area and adjacent properties that affect property values. According to a local residential real estate agent, Lupita Lopez of Century 21 All Real Estate, financing to purchase a home that is adjacent to a non- residential lot is more difficult as lenders are more reluctant to lend money to those types of properties. In addition, homes that are adjacent to Added Area commercial or industrial properties have lower values than similar homes that are in areas further from these negative influences. Residential units neighboring a commercial use also experience nuisance such as noise, traffic, and fumes, which impacts quality of life and property values. Table B-6 presents an analysis of single-family residential home sales for the 12-month period of October 2002 through September 2003. The analysis concluded that properties closer to the Added Area sold for 18% less than homes in the City, and 11 % less than comparable homes in the same zip code over this time period. HOME SALES PRICES NEAREST ADDED AREA TABLE B-6 MERGED CHULA VISTA REDEVELOPMENT PROJECT AREA Sales Median Difference Price from City Average 200' from Added Area 21 $ 300,000 -18% 300' from Added Area 35 320,000 -11% Chula Vista (Zip 91910) 646 372,000 5% Chula Vista (Zip 91911) 610 335,000 -6% City of Chula Vista (All Zip Codes) 1,256 354,000 0% Note: Comparison based on all home sales in Zip Codes 91910 and 91911 from August 2002 through September 2003 Source: Metroscan and DataQuick Real Estate News Why Redevelopment? Despite the fact that mobile home uses conflict with surrounding commercial uses, property owners have little incentive to independently redevelop their parks consistent with the General Plan because commercial uses permitted in the area do not command market rents as compared to the greater Chula Vista market area. Thus, providing economic assistance to property owners is one way in which the Agency can facilitate redevelopment of these incompatible uses. 1-4~ ROSENOW SPEVACEK GROUP, INC, REDEVELOPMENT AGENCV OF THE CITY OF CHULA VJSTA FEBRUARV 9. 2004 - B-21 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT .. The Agency would be required to set aside at least 20% of its annual tax increment revenues from the Added Area, which can be used by the Agency to increase the supply of affordable housing, ançJ therefore, offer more housing altematives to lower income residents of the Added Area, while relieving the pressure on residents to live among incompatible uses. The Agency could also address land use incompatibilities by installing buffers (such as such as walls or landscaping) to reduce nuisances between existing developed properties and encourage development of more compatible developments in the future that mitigate Mure land use conflicts. Vacant and Abandoned Buildings The Added Area contains several vacant or abandoned buildings, some of which have remained unoccupied for years despite the relative affordability of Added Area commercial rents. Table B-7 presents a list of the vacant and abandoned buildings in the Added Area based on field observations. VACANT AND ABANDONED BUILDINGS TABLE B-7 ADDED AREA Vacant Buildings Abandoned Buildings 110 Broadway 200 Broadway 600 E Street 380 Broadway 600 E Street 1400 Bay Street 470 Broadway 900 Third Avenue 390 Broadway 950 Third Avenue 600 Broadway 650 Third Avenue 530 Anita Street 360 E Street 1/ The location of the parcels are approximate address, since some of the parcels do not have street address. One block may be listed twice for having more than one parcel qualify in that cate90ry Source: Metroscan and RSG Survey Abandoned buildings in the Added Area are also targets for criminal activities like trespassing and vandalism. For example, the buildings on Industrial Boulevard between Moss Street and Naples Street are vacant with rusting roof, patched walls, boarded and broken windows, and showing other signs of deterioration. The deterioration signals a lack of interest for the property and is an easy target for trespassers and vandalism. The building is covered in graffiti on the exterior walls and the equipment on the roof. Most of the windows on the buildings are shattered, which poses a safety threat to trespassers. Specific examples of these conditions throughout the Added Area are contained in the photo survey in the Appendix to this Report. 1-4Ç ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 - B-22 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT Abandoned buildings are also a safety hazard to trespassers. For example, the 950 Block of Third Avenue contains two abandoned buildings, of which one suffers from serious fire damage and the other one shows signs of deterioration. The structure with the fire damage contains graffiti, which suggests trespassers' presence even though the property is fenced in. The portion of the roof has collapsed and foundation is missing in some areas, which questions the structural integrity of the building. Neglected, abandoned and vacant buildings are not only a problem for the affected parcels, but impair investment and create problems for surrounding properties as well. The "broken window syndrome" is evident in areas where neglected buildings exist. Cited in many safe neighborhood programs, this phenomenon establishes that neglected properties (including those with just one broken window) are more likely to attract further vandalism and vagrancy as perpetrators target neighborhoods where property owners appear to be less concemed about what occurs in these areas. These physical conditions create an environment that appears to be in disorder, raises fears, and demoralizes the community, while undermining commerce. It is indeed evident that even though not every building in the Added Area is abandoned, their presence is seen in terms of higher crimes, a limited appeal of the area and devalued properties. Why Redevelopment? The City cannot compel property owners to occupy vacant buildings, and often has limited means to enforce its codes on vandalism with disinterested or absentee landlords. When property owners are unable or unwilling to maintain their buildings and keep them occupied, the Agency could use the Plan's tools to provide assistance to these owners when appropriate. In addition, the Agency could work as a conduit between prospective tenants and the real estate community to help expedite absorption of vacant space. In other instances, the Plan permits the Agency to acquire properties, including eminent domain acquisition, as a means to remove these blighting conditions and nuisance properties from the Added Area. Low Lease Rates Based on leasing activities reported in the San Diego Daily Transcript for the latter part of 2002, Added Area retail properties face dramatically lower lease rates as compared to other retail properties in Chula Vista. The average retail lease rate within the Added Area is $1.32, approximately 57% of the city average (not including the existing constituent areas). Coincidently, the highest rental rate within the Added Area is $1.80, which is the same as the lowest rental rate of other parts of the City, as shown in the following table. I-t./~ ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 - B-23 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT RETAIL LEASE RATES ANAL YSIS 1/ TABLE B-8 ADDED AREA VERSUS CITY ADDED AREA OTHER PARTS OF CITY 2/ Address Lease Date Rent/SF Address Lease Date Rent/SF 111 Broadway 12/18/2006 $ 1.77 601 E. Palomar Street 1/8/2007 $ 2.38 1177 Broadway 11/15/2006 1.32 601 E. Palomar Street 1/8/2007 2.30 1172 Third Avenue 9/6/2006 1.32 601 E. Palomar Street 1/9/2007 2.54 45 N. Broadway 9/6/2006 1.80 303 H Street 10/27/2006 1.80 1172 Third Avenue 7/23/2006 1.09 563 Telegraph Canyon Rd. 9/11/2006 2.02 1655 Broadway 5/18/2006 0.99 1172 Third Avenue 9/6/2006 2.25 347 East H Street 4/19/2006 1.29 561 Telegraph Canyon Rd. 8/14/2006 2,21 1261 Third Avenue 4/3/2006 0.99 347 E. H Street 4/19/2006 3.06 Average $ 1.32 $ 2.32 1/ Lease survey includes the most recent eight leases under 5,000 sq. It. in each category 2/lnclude areas within the City that are not part of the Constituent Areas Source: San Diego Daily Transcript According to Tracy Clark of Voit Commercial Brokerage, the lower lease rates among retail properties in the Added Area are primarily due to the shallow and small configuration of existing lots that are under mixed ownership, which prevents the development of contemporary shopping centers that feature more accessible parking areas and anchor tenants to attract a diverse customer base. Generally, contemporary retail centers wrth anchored tenants have higher customer draw power due to their brand recognition and retail synergy, therefore justifying charging market rents. As stated earlier, approximately 79% of the Added Area parcels do not meet the minimum lot size necessary to be redeveloped into a contemporary retail use that can command better tenants, parking and rents. Michael Cullen of Walsh Financial Commercial brokerage also suggested that the lower rents in the Added Area are a resuR of the crime problems evident in the area, and speculated that redevelopment of the Added Area could counteract criminal activities, and thereby trigger more businesses to move into the area and increase patronage of Added Area retail properties. These changes could positively affect lease rates in the Added Area. As shown in Table B-9 below, depressed retail lease rates impair the private sector to invest in Added Area properties. Table B-9 presents a real estate construction pro forma using typical real estate market condrtions in the Added Area, including lease rates, undersized parcels and other factors. These economic conditions create a major disincentive for the private sector to redevelop their properties because the rents in the Added Area market area are not high enough for an investor to realize a retum on their construction costs. 1-- t./- 1 ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 - B-24 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - .:."".11:':0""'0 .":00'" .II"'I~ .."""'~"."".n.,","" 0'0"."""'. ADDED AREA Key Assumptions Total Per Bldg/SF Lot Area (Acres) 1 43.560 sf FAR 0,25 Improvement Size 10.890 Lease Rate (NNN)/SF/MO $1.32 Loan Amount 80% LTV 1,283,387 118 Income Pro forma Gross Potential Income 172,498 16 Vacancy and Collections Loss 7,00% 12.075 1 Gross Effective Income 160,423 15 Operatin9 Expenses Property Management 5.00% 8,021 1 Reserves 2.00% 3,208 0 NNN Charges 3.00% 4,813 0 Total Operating Expenses (Excluding NNN charges) 16,042 1 Net Operatin9 Income 144,381 13 Capitalization Rate 9% Property Value $ 1,604,234 $ 147 Cost Pro forma Acquisition Costs 1/ 55 ¡SF 2,395,809 220 Hard Costs Demolition Cost 5 ¡SF 217.801 20 Shell Construction $55.00 /SF 598,952 55 Tenant Improvements $10.00 /SF 108,900 10 Site Work $3.50 ¡SF 152,461 14 Off Site 50.000 5 Total Hard Costs $ 1.128114 $ 104 Soft Costs Architectural and Engineering 5.00% of hard cost 56,406 5 Permits and Fees $4.00 /SF 43,560 4 School Fees $2.10 /SF 22,869 2 Broker Fees $3,00 /SF 32,670 3 Interest 69,303 6 Loan Points 1.50% 19,251 2 Legal and Accounting 50,000 5 Contingency 5,00% of hard cost 56,406 5 DevelopmenUManagement 5.00% of hard cost 56,406 5 Total Soft Costs $ 406,870 $ 37 Total Costs $ 3,930,794 $ 361 Target Profits 10.00% of Cost 393,079 36 Required GAP Assistance $ 2,7t9,639 $ 250 11 Aoqui"ion price anticipate' buying impro..' properiy (Improved wOh . bui~ing) Source: Metro""n, RSG Table B-9 demonstrates these problems based on a small scale prototype development in the Added Area, using construction costs from RSG's experience in the market area. The major development cost involves acquisition of developed properties under mixed ownership. Unlike purchasing vacant land, (-L/t¡ ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 - 8-25 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - potential developers must also purchase existing nonconforming buildings on Added Area properties. Given the high density and lot coverage among many Added Area parcels (as shown by the lack of parking) developers are facing the economic challenge of purchasing properties with existing structures that are two to three times larger than what can be built at today's development standards. There is simply not enough rent-based project value for the private sector to offset these extraordinary costs. In the example used in Table B-9, a small one acre retail development could require a subsidy of more than $2.7 million--close to two times more than the value of the project based on current rental rates. Increasing the rent rates to cover this gap is not feasible, since redeveloping one of 494 acres in the Added Area would not trigger an increase in Added Area lease rates overall; rents in the market area have a significant influence on the rents that can be charged at specific projects. Based on these difficult redevelopment economics, it is not surprising that there has been little change to the Added Area. Why Redevelopment? The lack of private investment in the Added Area has created a disadvantaged and deteriorated retail corridor. Through redevelopment, the Agency could place investment in areas where private investment does not exist. In addition, the Agency could engage in capital improvement projects by proving designated parking areas and fund a Storefront Renovation Program that provides rebates to merchants and property owners who make improvements to the exterior of their building. These improvements would assist the commercial stores in the Added Area to become more attractive and competitive. Excess of BusInesses Catering Exclusively to Adults Relative to the City, the Added Area contains high concentrations of businesses that cater exclusively to adults. According to the Yellow Pages, the Added Area contains 32 bars and 25 liquor stores, all of which occur in much higher concentrations per square mile than the rest of the City. The number of bars per square mile is 43 times higher than the rest of the City; the number of liquor stores per square mile is also high at 26 times the City average, as shown in Table B-10 below. !-If., ROSENOW SPEVACEK GROUP, iNC, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 - B-26 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT BUSINESSES CATERED TO ADULTS TABLE B-10 ADDED AREA City of Chula Vista Added Area Area (sq. mi) 51.18 0.77 Liquor Stores # of Liquor Stores 25 10 # of Liquor Stores per sq. mi 0.49 12.95 # of Liquor Stores Ratio to City 26.50 Bars # of Bars 32 21 # of Bars per sq. mi 0.63 27.19 # of Bars Ratio to City 43.48 Source: Yellow Pages Because the majority of the Added Area consists of small lots that adjoin residential neighborhoods, the high number of these establishments that cater exclusively to adults impacts many residents. Consequently, social and economic problems arise. According to Sergeant David Eisenberg with the Chula Vista Police Department, the Added Area is "awash in alcohol" and he estimates that many of the patrons are not local residents. Proliferation of these businesses is often an unfortunate consequence of lower income areas, according to Sergeant Eisenberg, and perpetuates the criminal and economic problems in the Added Area. According to the City's Police Department data for 2002, reported crimes nearby these properties are higher than the City average and contribute to the fact that the Added Area has higher crime rates than the rest of the City. Evidence of the deviant behavior that surrounds these adults-only businesses is exemplified by comparing the location of the police "hot spots" where they receive the highest portion of their 911 calls. The high percentage of adult businesses in the area and the subsequent increase in crime that is associated with these types of businesses pose serious problems for public safety and welfare. Table 8-11 shows that the crime rate with 200 feet of Added Area bars and liquor stores is more than 16 times higher than the City crime rate and double the crime rate in the entire Added Area. / -~-Z) ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 - B-27 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT CRIME RATES NEAR BARS/LIQUOR STORES TABLE B-11 ADDED AREA Total Area Crimes Ratio to Crimes (Acre) Per Acre City City of Chuia Vista 7,180 32,572 0.22 1.00 Added Area 943 494 1.91 8.65 Within 200 Feet of Added Area Bars and Liquor Stores 222 60 3.70 16.79 1/ Part 1 and Part 2 crime reported from July 1, 2002 through December 31,2002 Source: Chula Vista Police Department Why Redevelopment? Redevelopment of the Added Area can address the proliferation of liquor stores and bars in many ways. For example, the Plan enables the Agency to use tax increment financing to partner with local investment on redevelopment projects. Increased public and private sector investment in the Added Area would indirectly create a more desirable location over time. Consequently, a wider range of retail and service businesses would consider locating in the Added Area and eventually counteract the proliferation of marginal and detrimental businesses. High Crime Rates RSG analyzed Chula Vista Police Department crime reports from July through December 2002 for the entire City and the Added Area. Based on this data and interviews with Police Department officials, it is clear that the Added Area faces severe crime problems. High crime rates are a burden on the City because they generate calls for service and demand a disproportionate level of attention by the Police Department. According to data provided by the Police Department, crime rates in the Added Area accounts for more than 8 times greater than the citywide average on a square mile basis as shown on Table B-12. /.5'1 ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 - 8-28 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - CRIME RATES 11 TABLE B-12 ADDED AREA AND SELECT LOCATIONS Total Area Crimes Ratio to Crimes (Acre) Per Acre City City of Chula Vista 7,1BO 32,572 0.22 1.00 A 535 113 4.72 21.40 C-7 18 3 5.29 24.02 B 97 66 1.46 6,64 C 55 55 1.01 4.57 C-9 1 2 0.66 3.00 B-2 8 12 0.66 2,98 C-13 8 24 0.34 1.53 A-1 11 33 0,33 1.51 B-1 2 6 0.32 1.47 C-12 21 74 0.28 1.29 Entire Added Area 943 494 1.91 8.65 11 Part 1 and Part 2 crime reported from July 1,2002 through December 31, 2002 Source: Chula Vista Police Department The types of crimes reported in the Added Area during this period include possession of illegal substance, robbery, assaun, domestic violence, burglary, theft, and vandalism. Sergeant David Eisenberg with the Police Department provided a detailed description of the nature of criminal activity in the Added Area. According to Sergeant Eisenberg, properties along Broadway and Third Avenue are highly impacted with crimes, in large part because the general area is surrounded by high concentrations of parolees, sex crime registrants, and narcotics registrants. Approximately 1,100 of these individuals reside in Chula Vista, and Sergeant Eisenberg estimates that the vast majority resides in and around the Added Area. Added Area businesses and residents are also affected by the presence of two long-standing gangs, including the Otay and Barrio Chula Vista, who target Added Area properties and patrons. These gangs and other criminals also engage heavily in narcotics activity that occurs along these corridors in the Added Area, and the Police Department has found some businesses in the Added Area that operate as "fronts" for illicit activities. Why Redevelopment? The Plan can be enher directly or indirectly effective in improving public safety by targeting specific "hot spots" to improve housing management, increasing property owner attention and maintenance, and removing abandoned and neglected buildings. The Agency can also help develop community facilities that 1-52- ROSENOW SPEVACEK GROUP. INC. REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 - 8-29 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT serve the needs of the Added Area and greater west Chula Vista area to provide more after school activities as positive option to gangs and narcotics. Properties Included for Redevelopment Purposes Conditions of blight predominate throughout the Added Area. If and to the extent that certain properties are not individually blighted, their inclusion in the Added Area is necessary for the following reasons and redevelopment purposes: (1) in order to effectively plan and carry out redevelopment of the entire Added Area; (2) because such properties are impacted by the conditions existing on adjacent properties, and correction of such conditions may require the imposition of design, development or use requirements on the standard properties in the event they are rehabilitated or redeveloped by their owners; (3) to impose uniform requirements over a geographically defined and identified area of the City; (4) because such properties will share in the physical and economic benefits that will accrue to the area through the elimination of substandard conditions, including the replacement or provision of new public improvements and facilities within or serving the Added Area; and (5) because such properties are part of a blighted area. Effective Planning and Implementation of the Project The development potential of certain sites within the Added Area may be limited or infeasible because of the need for additional space, vehicular access, par1<ing, setback requirements, and other similar planning factors. These limitations may be reduced or eliminated when adjacent properties are included in a proposed development site. In some instances, however, the adjacent properties may not evidence individual blighting conditions, but their inclusion in the Added Area is necessary in order to effectively plan and carry out redevelopment of the entire Added Area. Impact of ConcItions on Adjacent Properties On occasion, a standard building or group of buildings can be adversely impacted by the blighting conditions existing on adjacent properties and the correction or alleviation of these conditions may involve analyzing and treating the blighted and standard properties as a whole. Imposition of Unifonn Requirements over Geographically DefIned Area It is good planning and economically sensible to impose uniform development and use provisions on all properties within a geographically definable area; it also conforms to the common notion of fair play. 1- £""3 ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 - 8-30. CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT Properties Share In the Benefits of Redevelopment A very strong inducement to property owner cooperation in the redevelopment process is the potential of substantial public involvement in the fonn of public improvements. If the condition precedent to obtaining such public improvements is for property owners to cooperate with the redevelopment agency in the rehabilitation, development, maintenance and use of their properties, then it is equitable that all properties sharing the public benefit from such improvements should be required to confonn to the same conditions. Properties are Part of a Blighted Area As reported, there are many physical and economic blighting conditions in the Added Area, the incidences of which vary from block to block, but when the sum effect is examined the combined impact characterizes the area as blighted. The success of the different programs and public improvements proposed is dependent on the inclusion of all properties that are an integral part of the whole Added Area. I-~-V ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 - B-31 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT It A Determination as to Whether the Added Area is Predominately Urbanized Under Section 33030 of the Law, a blighted area is one that is, at the time of adoption, predominantly urbanized (not less than 80%), which is defined in the Law as follows: . Has been or is developed for urban uses; or . Is characterized by the existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness, and development that are in multiple ownership; or . Is an integral part of one of more areas developed for urban uses, which are surrounded or substantially surrounded by parcels, which have been or are developed for urban uses. Parcels separated by only an improved right-of- way shall be deemed adjacent for the purpose of this subdivision. The Added Area encompasses an area of approximately 494 acres, inclusive of public right-of-way. A total of 41 0 acres, or 83 % of the Added Area, is urbanized. Urbanized areas include parcels that either have been or are currently developed for urban uses. No part of the Added Area is characterized with irregular or inadequately shaped parcels pursuant to the definition contained in Section 33031(4) of the Law, nor is any part of the Added Area in agricultural use. Exhibit C-1 depicts the specific location of non urbanized parcels in the Added Area; the remaining Added Area properties are urbanized. -- I-~ ~ ROSENOW SPEVACEK GROUP, lNG, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 - C-1 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - \ ' " .."í .." / / I \ \ I L___., , . /' .' f"l! I I, \ , \ LEGEND ' Merged Chute Viole Redevelopment ProjectAree "" - Non ""'a",ad Pa",", +- Exhibit G-1 Urbanization Map . / - S-G.. ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 - C-2 - CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT n A Preliminary Assessment of the Proposed Method of Financi~ing the Economic Feasibility and the for the Division of Tax Increment The Agency anticipates that redevelopment of the Added Area would be financed by the following resources: 1) Financial assistance from the City, County, State of California and/or Federal Government; 2) Tax increment revenue; 3) Bonded debt; 4) Proceeds from lease or sale of Agency-owned property; 5) Loans from private financial institutions; and 6) Any other legally available source. The more typical sources of redevelopment financing that may be employed with the Added Area are described below. Financial Assistance from the City, County, State, and'or the Federal Government The Agency may obtain loans and advances from the City for planning, construction, and operating capital for administration until such time that sufficient tax increment revenue is raised to repay loans and provide other means of operating capital. The City may also defer payments on Agency loans for land purchases, benefrting the Agency's cash flow. Such assistance is anticipated to be employed to meet short-term cash flow needs, as the City's General Fund cannot carry extensive levels of Agency debt at the risk of threatening the City's own cash balances. As available, other funds such as state-apportioned road funds and federal Community Development Block Grants will be appropriately used to pay the costs of Project implementation. The Agency and City will also pursue other available grants and loans; additionally, the City or other public agencies may issue bonds on behalf of the Agency and provide in-kind assistance. /-~1 ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 - 0-1- CHULA VISTA REOEVELOPMENT PROJECT AREA PRELIMINARY REPORT Property Tax Increment The Agency may use property tax increment as provided for in Section 33670 of the Law, and is authorized in the Plan to employ tax increment financing to underwrite project costs. Tax increment revenue may only be used to pay indebtedness incurred by the Agency; indebtedness includes principal and interest on loans, monies advanced, or debts (whether funded, refunded, assumed, or otherwise) incurred by the Agency to finance or refinance, in whole or in part, redevelopment activities. Indebtedness may be incurred within time limits prescribed by the Plan; while, the Amendment does not alter these time limits to incur debt for the preexisting constituent areas of the Project Area (Town Centre II Original, Town Centre II Amendment, Otay Valley, Southwest Original, and Southwest Amendment), the Agency may subsequently rescind these time limits in accordance with Section 33333.6 of the Law. As for the Added Area, the Agency may incur debt for a period of 20 years following adoption of the Amendment. Project Area tax increment revenues are statutorily required to meet specific statutory obligations, as well as discretionary projects. As required by the Law, not less than 20% of the annual gross tax increment revenue is set aside into the Agency's affordable housing fund for the purposes of increasing, improving, and preserving the community's supply of low and moderate-income housing. The remaining 80% of the tax increment revenue will be used to pay for taxing entity obligations (pursuant to fiscal mitigation agreements as applicable to the preexisting constituent areas of the Project Area, and separately, statutory taxing agency payments required by Section 33607.5 of the Law), debt service costs, and other program expenditures. Program expenditures include commercial façade programs, infrastructure, capital facility, and economic development programs throughout the Project Area. Tax increment revenue may be collected for a period of 45 years following adoption of the Amendment within the Added Area, and for a shorter time period for the various preexisting constituent areas of the Project Area. In addition, these preexisting constituent areas of the Project Area are also subject to a limit on the amount of tax increment revenue the Agency may collect; these tax increment limits remain unchanged by the Amendment. The chart below summarizes the various time and financial limits in the Plan affecting the collection of tax increment revenue: (-~ ROSENOW SPEVACEK GROUP. INC, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 - 0-2- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT Constituent Area Time LImit to nme Limit to Cumulative Tax Incur Debt Collect Tax Increment Increment Revenue Umit Revenue (As Applicable) Otay Valley No Tme Lim~ 12/2912034 $115,000.000 Town Centre II Orioinai No Time Lin~ 8/1512029 Town Centre II Amended No Time Lim~ 7/1912039 $100,000,000 Southwest Oriainal NoTlI11eLim~ 1112712041 $150,000,000 ' Southwest Amended No Tine Lim~ 71912042 Proposed Added Area 20 Years Following 45 Years Following Not Applicable 2 Adoption of Adoption of Amendment Amendment 1/ Adjusted annually by the consumers' price index, 21 No tax increment revenue I",~ required for amendments to Project Areas after January 1, 1994. Time limits to incur debt for all but the Added Area were rescinded by the City Council in January 2004 pursuant to Section 33333.6 oflhe Law, Bonded Debt Under the Plan, the Agency would have a capacity to issue bonds and/or notes for any of its purposes, payable in whole or in part from tax increment revenue. Many redevelopment agencies in the state employ bond financing as an integral component of their overall redevelopment-financing program. The Plan permits the Agency the ability to incur such bonded debt, and contains a $175 million limit on the amount of bonded debt principal which may be outstanding at anyone time. Lease or Sale of Agency-Owned Property The Agency may sell, lease, or otherwise encumber its property holdings to pay the costs of project implementation. Participation in Development If the Agency enters into agreements with property owners, tenants, and/or other developers that provide for revenues to be paid or repaid to the Agency, such revenues may be used to pay project implementation costs. Other Available Sources Any other loans, grants, or financial assistance from the federal govemment, or any other public or private source will be utilized, as available and appropriate. The Agency will also consider use of the powers provided by Chapter 8 (Redevelopment Construction Loans) of the Law to provide construction funds for appropriate projects. Where feasible and appropriate, the Agency may use ) - ::.-C; ROSENOW SPEVACEK GROUP, INC, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9,2004 - 0-3- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - assessment district and/or Mello-Roos bond financing to pay for the costs of public infrastructure, facilities, and operations. Projected Tax Increment Revenues The primary source of project financing is anticipated to be tax increment revenue. This Report contains a preliminary forecast of tax increment revenues from the Project Area, based on several assumptions noted below: Note: Because the Amendment does not affect the financial limits of the existing Otay Valley, Town Centre II and Southwest constituent areas, this section only analyzes the tax increment revenues associated with the Added Area. 1) 2003-04 Base Year Value for Added Area: Assuming the Agency adopts the Amendment as scheduled this Spring, the Added Area would receive tax increment revenue beginning in December 2005 based upon the incremental growth in assessed values above the 2003-04 base year value. On February 4, 2004, the County Auditor Controller provided the Agency a base year report indicating that the 2003-04 local secured and unsecured values for the Added Area totaled $433,932,779. On January 29, 2004, the State Board of Equalization reported to the Agency that the Added Area had no nonunitary utility value in 2003-04. The base year values of the preexisting constituent areas of the Project Area are unaffected by the Amendment. 2) Assessed Value Growth Rates: RSG conservatively applied a 3% annual growth rate to secured assessed values, and no increase on unsecured or utility assessed values. If the Amendment is adopted, the Agency would collect gross tax increment revenue from the Added Area pursuant to Section 33670 of the Redevelopment Law for a 45-year period. The Law requires that the Agency deposit 20% of this gross tax increment revenue into the Agency's housing fund. In addition, the Agency would be required to share a portion of its nonhousing fund revenues with the affected taxing agencies pursuant to Sections 33607.5 of the Redevelopment Law ("Taxing Agency Payments'). These Taxing Agency Payments would start in the first fiscal year the Agency would receive tax increment revenue from the Added Area (assumed to be fiscal year 2005-06), and continue through fiscal year 2048-49. According to Section 33607.5 of the Law, beginning in the first payment year, the Taxing Agency Payments are equal to 25% of the Added Area's annual non housing tax increment revenue. These Taxing Agency Payments are subject to two subsequent increases. The first increase in Taxing Agency Payments would take effect in the eleventh payment year, when the Agency would be required to pay 21% of the incremental increase in nonhousing tax increment 1-'0 ROSENOW SPEVACEK GROUP, INC. REOEVELOPMENT AGENCYOFTHE CITY OF CHULA VISTA FEBRUARY 9. 2004 - D-4- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT revenues exceeding amounts in the tenth payment year. The Law further provides for a second increase in the Taxing Agency Payments that commences in the thirty-first payment year of 14% of the incremental increase in nonhousing tax increment revenues in excess of the thirtieth year. In total, the Agency will share approximately 34% of its gross tax increment revenues with the affected taxing agencies. Each taxing agency is entitled to their respective share of the Taxing Agency Payments. All agencies receive their share of the Statutory Payments, except for the City of San Diego, which, by Section 33607.5 of the Law, is only entitled to its share of the first 25% of the Taxing Agency Payments. The following is a list of affected taxing agencies in the Added Area, according to the County's base year report: 1) City of Chula Vista 2) San Diego County General Fund 3) Chula Vista Elementary School District 4) National City Elementary School District 5) Sweetwater Union High School District 6) Southwestern Community College District 7) San Diego County Superintendent of Schools 8) County Water Authority g) Metropolitan Water District The actual amount of the Taxing Agency Payments will vary based on the amount of tax increment revenues collected by the Agency each year. A forecast of Taxing Agency Payments has been included on Table D-1. Should actual tax increment revenues exceed or fall below these projections, actual Taxing Agency Payments would be higher or lower. Between fiscal year 2005-06 and 2048-49, RSG estimates that the Added Area could generate approximately $199 million in gross tax increment revenue. After deducting the Taxing Agency Payments described above, approximately $92 million would be deposited to the Agency's nonhousing fund for redevelopment projects, and another $40 million could be deposited into the Agency's housing fund for affordable housing projects. These projected Added Area revenues would augment Project Area revenues from the existing constituent areas and be available to fund projects throughout the Project Area. 1-(,1 ROSENOW SPEVACEK GROUP. INC. REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 -0-5- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT .. .""""""""".".""".""".".".",,.,,, .'",....... ADDED AREA Year Projected Assessed Values Incremental Gross Tax Housing Payments Net Secured Unsecured' Total Value increment Fund to Taxing Nonhousing Utility Revenue Ageooes Revenue 3,0% 0,0% BASE 393,758,665 40.174,114 433,932,779 2004-05 405,571,425 40.174.114 445,745.539 11.812.760 2005-06 417,738.568 40,174,114 457,912.682 23,979.903 239,799 47.960 47.960 143,879 2006-07 430,270.725 40.174.114 470,444.839 36,512.060 365,121 73.024 73.024 219,072 2007-08 443,178.846 40.174,114 483,352,960 49,420.181 494.202 98.840 98,840 296,521 2008-09 456.474.212 40.174,114 498,S48,326 62,715,547 827.155 125.431 125.431 376.293 2009-10 470,168.438 40,174,114 510,342,552 76,409,773 764,098 152.820 152.820 458,459 2010-11 484,273,491 40,174,114 524,447.605 90,514,826 905.148 181.030 181.030 543,089 2011-12 498,801.696 40,174,114 538,975.810 105.043.031 1,050.430 210.086 210,086 630,2S8 2012-13 513,765,747 40,174,114 553,939,861 120.007.082 1.200.071 240,014 240,014 720,042 2013-14 529,176,719 40,174,114 569.352,833 135,420.064 1,354,201 270,840 270,840 612,520 2014.15 545,054,081 40,174,114 585.228,195 151.295,416 1,512,954 302.591 302.591 907,772 2015-16 561,405,703 40,174,114 601,579,817 167,647,038 1,676,470 335.294 362.765 978.412 2016-17 578.247,875 40.174,114 618.421,989 184,489,210 1.844,892 368.978 424.744 1,051,170 2017-18 595.595,311 40,174,114 635,769,425 201.836,646 2.018,368 403.673 488.583 1,126.111 2018-19 613,463,170 40,174,114 653.637.284 219,704,505 2.197.045 439.409 554.338 1.203.300 2019-20 631,867,065 40.174,114 672.041.179 238.108.400 2,381,084 476,217 622,063 1.282,805 2020-21 650,823.077 40.174,114 690.997,191 257.064,412 2,570,644 514.129 691,821 1.364.695 2021-22 670,347.769 40.174,114 710.521,883 278.S89.104 2.765.891 553,178 7S3,672 1,449.041 2022-23 690,458.203 40.174,114 730,632,317 296.699.536 2,966,995 593,399 837,878 1.535.918 2023-24 711,171.949 40,174,114 751,346,063 317.413,284 3,174.133 634,827 913,905 1.825,402 2024-25 732,507.107 40,174.114 772,681,221 338.748,442 3.387,464 677,497 992,418 1.717.570 2025-28 754,482.320 40,174,114 794,656,434 360.723,655 3,607.237 721,447 1.073,287 1,812,502 2028-27 777,116.790 40,174.114 817,290,904 383,358,125 3,833.581 766,716 ' 1.156,582 1,910.283 2027-28 800,430,294 40,174.114 840,604,408 406,671,629 4,066.716 813,343 1.242,375 2,010,998 2028-29 824,443,202 40,174,114 884,617,316 430.684,537 4,306,845 861,369 1,330,743 2,114,734 2029-30 849,176,498 40,174.114 869,350,612 455.417,633 4,554,178 910,838 1,421,781 2,221,581 2030-31 874,651,793 40,174.114 914,825,907 480,893,128 4,808,931 961,786 1,515,510 2,331,635 2031-32 900.691,347 40,174,114 941,065,461 507.132,682 5.071.327 1,014,265 1,612,072 2,444,989 2032-33 927.918,088 40,174,114 968,092.202 534,159,423 5,341.594 1,068,319 1,711,530 2,561.745 2033-34 955,755,630 40,174,114 995.929.744 561,996,985 5,619.970 1,123,994 1,813,973 2,682.003 2034-35 984,428,299 40,174,114 1.024.602.413 590,669,634 5.906.696 1,191,339 1,919,488 2,805.869 2035-36 1,013,961,148 40.174,114 1.064.135.262 620,202,483 6,202,025 1,240,405 2,061,246 2,900.374 2036-37 1,044,379.983 40.174,114 1.084.554,097 650,621,318 6.506.213 1,301,243 2,207,256 2,997,715 2037-38 1,075,711.382 40.174,114 1,115,885.496 681,952,717 6.819,527 1,363,905 2,357,647 3,097,975 2038-39 1,107,982.724 40.174,114 1.148.156.838 714,224,059 7,142.241 1,428,448 2,512.549 3,201.243 2039-40 1,141,222.205 40.174,114 1.181,396.319 747,463.540 7.474.635 1.494,927 2,672.099 3,307.610 2040-41 1.175,4S8.871 40.174.114 1.215,632,985 781,700,206 7.817,002 1,563,400 2,836.435 3,417,167 2041-42 1.210,722.638 40.174.114 1,250.896,752 816,983,973 8,169.640 1.633,928 3.005.701 3.530.011 2042-43 1.247,044,317 40.174.114 1.287.218.431 853,285,652 8,532.857 1.706,571 3,180,045 3.646.240 2043-44 1.284.455,646 40.174.114 1,324.629.760 890,696,981 8,906,970 1,781,394 3,359.619 3.765.957 2044-45 1.322,969,316 40.174.114 1,363,1S3,430 929,230,651 9,292,307 1.858,4S1 3,544.581 3,889.284 2045-46 1,362.678,995 40.174.114 1,402,853,109 966,920,330 9,669,203 1,937.841 3.735,091 4.016.271 2046-47 1,403.559,365 40,174,114 1,443,733,479 1,009,800,700 10.098,007 2,019,601 3.931.317 4,147.089 2047-48 1,445.666,146 40,174.114 1,485,840,260 1,051,907,481 10,519,075 2.103,81S 4,133,430 4.281,830 2048-49 1,489,036,130 40,174,114 1,529,210,244 1,095,277,465 10,952,775 2,190.555 4.341,606 4.420,614 Total 198,735,736 39.747.147 67.030,560 91,958.029 Net Present Value (at 6% Oiscount Rate) 39,303,784 7.860.757 11,852,289 19,590.738 100% 20% 34% 48% 1-'2.. ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY g. 2004 - D-6- CHULA VISTA REDEVELOPMENT PROJECT AREA PREliMINARY REPORT Reasons for the Provisions of Tax Increment in the Added Area Tax increment financing will be an essential component of a successful redevelopment program in the Added Area. As demonstrated in Section B of this Report, many of the Added Area blighting conditions are attributed to a lack of financial incentives for redevelopment, such as redesign and reconstruction of obsolete properties. Market values and development constraints have caused infill properties to remain undeveloped for decades, even as the greater City of Chula Vista area has experienced an unprecedented housing boom. While there are other means to raise public funds without tax increment financing, these techniques would ultimately result in higher taxes or increased development costs, both of which are counterproductive to resolving the unique issues in the Added Area. For example, certain public improvements could be financed by creating an assessment district, but the property owners would probably not support creation of the district because many cannot afford the cost of additional taxes (two-thirds of the voters must approve formation of such a district). Tax increment financing provides a dedicated source of revenues for the Agency to invest into housing and redevelopment programs, without burdening property owners or residents with additional costs that they cannot afford. 1-'3 ROSENOW SPEVACEK GROUP. INC. REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARV 9. 2004 - 0-7- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT n A Description of the Projects Proposed by the ~ and How They Will Improve or Alleviate P pical and Economic Conditions of Blight The Plan incorporates a list of the infrastructure and public facilities projects proposed to be implemented by the Agency throughout the Project Area. In addition to these projects, the Agency will employ other tools necessary to alleviate the blighting conditions as demonstrated in Section B of the Report. The projects proposed by the Agency include the following: Public Infrastructure Projects Improvements to Project Area public infrastructure are intended to alleviate traffic congestion and improve public safety, remove costly impediments to development, and upgrade infrastructure to contemporary standards to stimulate private development. The proposed traffic/circulation improvement projects shall include, but are not limited to roadways, landscape, street lights, pedestrian walkways, bridges, interchanges, roadways, curbs, gutters, sidewalks, parking, street widening, street lights, traffic signals, over or underpasses, utility undergrounding, bicycle paths, street medians, trails, and trolley crossings. The proposed sewer and drainage improvement projects shall include, but are not limited to, monitoring systems, sewer parallels, drainage, sewer lines, wastewater treatment facilities, flooding systems, floor control dikes, and sewer systems. The proposed utility and communication improvement projects shall include, but are not limited to, electrical distribution systems, natural gas distribution systems; cable TV and fiber optic communication systems, water distribution systems, and windbreakers. Further compliance with General Plan, zoning standards, and environmental review may be necessary for these proposals to come forward. Projects include, but are not limited to the following: . StreetlEntrvwav Beautification. Construct streetscape improvements at key Project Area locations, including Fourth Avenue and Highway 54. . Main Street Improvements. Construct street improvements along Main Street to improve traffic flows and upgrade character of right-of-way. I-be¡ ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 -E-1- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT . Broadwav Revitalization. Implement a variety of street and other applicable improvements along Broadway, from H Street to L Street. Community Facilities Community facility improvements enhance the ability of the City to provide a commensurate level of service demands of Project Area and west Chula Vista residents and businesses. Improved serltice levels can elevate the appeal of Project Area real estate, thereby positively affecting property values. Other blighting conditions that can be addressed through the proposed community facilities improvement projects shall include, but are not limited to parks, open spaces, schools, school facilities, fire and police facilities, communication systems, libraries, fire protection, cultural centers, community centers, city maintenance facilities, plazas, recreational facilities, playgrounds, and civic center. Further compliance with the General Plan, zoning standards, and environmental review may be necessary for these proposals to come forward. Other Potential Redevelopment Projects: The Agency may consider participation in other redevelopment projects to reduce blight and achieve other redevelopment goals. Except where noted, most of the projects are in the conceptual stages and no formal proposals have been submitted to the city or Agency. Thus, each of these projects is subject to further discretionary actions and is not being approved specifically reviewed as a part of the adoption of the Amendments. Further compliance with the General Plan, zoning standards, and environmental review may be necessary for these projects as proposals come forward. These projects include, but are not limited to, the following: . Watt Commercial Proiect. Redevelopment of property at the comers of Third Avenue and E Street for retail and other commercial use. . Landis/Pacific Scene. Adoption of specific plan and development of approximately 152 residential units at the corner of Third Avenue and Davidson Street. . SUHSD Joint Proiects. The Agency and the Sweetwater Union High School District may consider one or more planning agreements to implement a series of improvements to current and future SUHSD properties that serve the Amended Project Area. The projects may include redevelopment of the existing District headquarters and corporate yard on Fifth Avenue with approximately 200 residential units, the Windmill Farms property at Third Avenue and Alvarado Street for District headquarters, residential and commercial uses. . Duke Eneroy Plant Relocation. Facilitate relocation and reuse and/or relocation of power generating facility within the Amended Project Area. I-Ic~ ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9,2004 -E-2- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - . Bavfront Commons. Develop approximately 2,000 residential units, 3 hotels, and 150,000 square feet of supporting retail commercial use within the Bayfront area. . BavfrontlPort Master Plan. Participate with Chula Vista and the Port of San Diego on development and implementation of Port Master Plan for Bayfront area. Other than the projects listed above, other redevelopment tools include the authority to acquire and rehabilitate property, relocate property owners, and assemble sites for development as mentioned in Section B. For example, the lack of parking, circulation space, designated pedestrian walkways, and proper setbacks within the Added Area could be addressed by acquiring vacant sites to develop designated parking where parking shortages exist or consolidate shared parking areas. These projects would relieve the reliance on street parking and create buffers for pedestrian walkways, provide building setbacks, and address insufficient circulation space. In retum, the improvement in circulation and public right of way will lessen the concentration of automobile accidents. The Agency could also fund improvement programs to strengthen the construction material that are susceptible to fire. Through redevelopment, the Agency would have the financial power to revitalize the Added Area by providing a designated source of funding to stimulate private investments, provide incentives for development to occur, and improve quality of life. 1-6' ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 - E-3- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT - n Photo Survey 1- '7 ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 -APPENDIXA-1- CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARV REPORT Unsafe and Unhealthy Buildings The following photographs depict examples of unsafe or unhealthy conditions among Added Area parcels. These conditions are evident throughout the Added Area, due to dilapidation, substandard building materials, inadequate setbacks and poor lot design. . Photo 1: Bay Bouievard. This abandoned structure suffers from years of neglect and deterioration as apparent in the photo exhibit above. The building is also a target for graffiti. The connection between the roof framing and the walls seem to have also broken apart. I-G:.ß' ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 APPENDIXA-1 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT Photo 2: 200 block of Broadway. The distance between the mobile home units is less than the 20 feet required by the Fire Department when cars are parked on both sides. This condition can hamper emergency vehicle access into parts of the mobile home park. I-(or::r ROSENOW SPEVACEK GROUP, INC. REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30,2003 APPENOIXA-2 CHULA VISTA REOEVELOPMENT PROJECT AREA PRELIMINARY REPORT Photo 3: 200 block of Broadway. The auto repair shop operators park their cars on the street or on the edge of the property line due to the lack of proper setbacks and off street parking. Vehicles must reverse out onto the street to leave the repair shop, but are often blindsided by parked cars on the street, blocking the views of passing vehicles. Broadway has a high accident rate due to the presence of these unsafe conditions. /-10 ROSENOW SPEVACEK GROUP. INC, REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 APPENOIX A -3 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT Photo 4: 300 block of Broadway. The windows on one side of the residential unit of this mobile home unit is completely boarded up. The Fire Department has stated that because mobile homes are generally constructed of lightweight materials, they are more susceptible to fire damage. This unit's plywood exterior is particuiarly vulnerable to fire damage. Photo 5: 400 block of Broadway. This residential unit suffers from serious deterioration to an exterior wall, with the wood siding peeling and coming apart. Part of the window frame is also deteriorating. 1- 7 ( ROSENOW SPEVACEK GROUP. INC, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 APPENDIXA-4 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT Photo 6: 1100 block of Broadway. The commerciai buiiding exhibits signs of deterioration to the façade, roof, and exterior wall material. The framing support for the roof is exposed and unprotected, which is susceptible to water damage and dry rot. Photo 7: 100 N. Glover Avenue. The buildings on this lot are diiapidated and in need of repairs to the doors, windows. walls, and roofing material. The lot is also overparked. 1-'7'2- ROSENOW SPEVACEK GROUP, lNG, REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA OCTOBER 30,2003 APPENOIX A -s CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT Photo 8: 700 block of Third Avenue. This residential unit suffers from deterioration to the roof to such an extent that a plastic sheet is used as a protection against rain. I-? 3 ROSENOW SPEVACEK GROUP. INC, REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENDIX A -6 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARV REPORT - Photo 9: 900 block of Third Avenue. The structure in the foreground is abandoned and completeiy boarded up. The building displays serious deterioration to the roof. exterior wall material, and foundation. The structure to the rear suffers from fire damage with large portions of the building burnt. Graffiti can also be seen, suggesting trespassing onto this unsafe and unhealthy property. 1-7t.f ROSENOW SPEVACEK GROUP, INC, REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENDIXA-7 CHULA VISTA REOEVELOPMENT PROJECT AREA PRELIMINARY REPORT Photo 10: Trousdaie Drive at Press Lane. This structure behind the buiiding to the right has fire damage (part of the exterior wall material and framing are burned). f -7Ç" ROSENOW SPEVACEK GROUP, INC, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENDIX A -8 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT Factors That Prevent or Substantially Hinder Viable Use The foliowing photos exhibit examples of factors that prevent or substantially hinder the viable use of buildings or lots. taken from the field survey in February 2003. RSG estimates that over 50% of the properties on Broadway, Third Avenue, and Trousdale Drive suffer from this blighting condition. Photo 11: Broadway at Mcintosh Street. The front setbacks of the buildings are so limited that cars are forced to park on the edge of the property line and on the sidewalk at times. , - 7(. ROSENOW SPEVACEK GROUP. INC, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENDIX A -9 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT Photo 12: 100 block of Broadway. This iot does not have sufficient parking as parked cars are blocking ingress/egress to the property. Photo 13: 400 block of Broadway. Most of the retail sites on Broadway have little or no setbacks, lacking onsite parking and relying solely on a limited amount of street parking, which not only creates a parking shortage as shown in the photo, but hinders pedestrian and vehicle visibility. 1-17 ROSENOW SPEVACEK GROUP, INC, REOEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENOIXA-10 CHULA VISTA REOEVELOPMENT PROJECT AREA PRELIMINARY REPORT Photo 14: 400 block of Broadway. Most of the mobile home park residents park their cars on both sides of the streets, limiting adequate space for traffic circulation and emergency vehicles to enter in the event of a fire. Photo 15: 600 block of Broadway. The parking of this repair shop is limited as cars are stacked next to each other, limiting the access of other vehicles. Note that a portion of the sidewalk is used for parking. 1- 7'1 ROSENOW SPEVACEK GROUP. INC, REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 APPENOIXA-11 CHULA VISTA REOEVELOPMENT PROJECT AREA PRELIMINARY REPORT Photo 16: 600 block of Broadway. Another set of retail stores that have no setback to each other or front setback to accommodate for onsite parking. The parking on the street serving these retail stores is also completeiy full. Photo 17: 800 block of Broadway. The lack of proper front setback creates a pedestrian danger when cars reverse to exit the store. 1- TCJ ROSENOW SPEVACEK GROUP. lNG, REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 APPENDIXA-12 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARV REPORT Photo 18: 300 block of E Street. This auto body shop use does not have sufficient parking for its inventory, So it parks the cars on the driveway blocking the ingress/egress to the property. Photo 19: First Avenue and C Street. The front setback of the site is so small that when a truck (as shown above) is parked, a third of the truck is on the sidewalk. Note the lack of space between the car and the front of the building. /-'80 ROSENOW SPEVACEK GROUP. INC, REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30,2003 APPENOIXA-13 CHULA VISTA REOEVELOPMENT PROJECT AREA PRELIMINARY REPORT Photo 20: 500 block of H Street. The retail strip in the photo above has no onsite parking as the front setbacks of these buildings are approximately five feet from the sidewalks. Photo 21: 600 block of E. Manor Drive. The parking lot of this retail store is completely full. However, as the car (on the right) reverses to exit, the car crosses part of the pedestrian walkway and presents a threat to pedestrians. 1-'1 , ROSENOW SPEVACEK GROUP. INC, REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 APPENOIXA-14 CHULA VISTA REOEVELOPMENT PROJECT AREA PRELIMINARV REPORT - Photo 22: 1400 block of Orange Avenue. lack of loading/unloading areas create a problem, where delivery trucks are forced to unload in the parking lot impeding vehicular movement within the site and limiting emergency vehicles ability to access buildings in the event of a fire. I-~ Z- ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 APPENDIXA-15 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARV REPORT Photo 23: 200 Palomar Street. The steep siope of this property is challenging for cars to enter and exit the site. This restaurant also only provides four to five parking spaces. Photo 24: 200 block of Quintard Street. This furniture store uses the limited amount of onsite parking for loading and unloading. When properties lack onsite parking and space for deliveries, customers and business operators are inconvenienced and loæl brokers indicate an associated detrimental affect on property values. l-f3 ROSENOW SPEVACEK GROUP, INC, REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENDIXA-16 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT Photo 25: 200 block of Quintard Street. Sidewalks, curbs and gutters are lacking on the south side of Quintard Street creating a safety hazard as cars are sharing the same right-of-way as pedestrians. The lack of curbs and gutters contribute to drainage problems in the event of rains. I-'¿t./ ROSENOW SPEVACEK GROUP, INC. REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENOIXA-17 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT Photo 26: 600 block of Third Avenue. This lot not only lacks sufficient parking to support the commercial uses but also forces customers to reverse into oncoming traffic in order to exit from the property, presenting a threat to on-coming traffic and pedestrians. (-'is- ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENOIXA-18 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT Photo 27: 700 block of Third Avenue. The parking lot of this site is poorly configured requiring autos to back into the pedestrian right of way and into heavy traffic in order to exit, presenting a threat not only to oncoming traffic but pedestrians as well. I-flfø ROSENOW SPEVACEK GROUP, INC. REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 APPENDIXA-19 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT Photo 28: 700 block of Third Avenue. This building was originally built for residential purposes but has since then been converted to a commercial use. Therefore the space exhibits inadequate parking and limited vehicular access required for commercial usage. These conditions aiso translate to a reduction in the economic well being of the business and iimits the highest and the best use of the property. 1-~7 ROSENOW SPEVACEK GROUP, INC. REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENDIX A -20 CHULA VISTA REOEVELOPMENT PROJECT AREA PRELIMINARY REPORT Photo 29: 900 Third Avenue. Due to the physical limitation of the site and lack of proper setbacks, people are forced to parailei park their cars or park on the side setback as shown in the photo above. Photo 30: 900 block of Third Avenue. Cars from the adjoining commerciai property are parked on this vacant land, as the commercial use does not have enough parking to accommodate the vehicles. (-r~ ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCV OF THE CITV OF CHULA VISTA OCTOBER 30, 2003 APPENDIX A -21 CHULA VISTA REOEVELOPMENT PROJECT AREA PRELIMINARY REPORT Photo 31: 1400 block of Third Avenue. This commerciai store uses the limited amount of onsite parking for loading and unloading purposes. This inconveniences customers and business operators, which relates to detrimental affect on property values as indicated by local brokers. I -t:¡c¡- ROSENOW SPEVACEK GROUP. INC, REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENDIX A -22 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT Photo 32: 300 biock of Trousdale Drive. This iot lacks sufficient parking to support the commercial uses. The white vehicle on the left side of the photo is parked on part of the pedestrian right-of-way. Photo 33: 300 block of Trousdale Drive. Sidewalks are iacking on the south side of Trousdale Drive creating a safety hazard as cars are sharing the same right- of-way as pedestrians. Cars are also parked on pedestrian walkways. ROSENOW SPEVACEK GROUP, INC. REOEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENDIX A -23 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT I - ifo - Photo 34: 300 block of Trousdale Drive. The trailer above is being stored in the public and pedestrian right of way indicating that the commerciai center lacks sufficient parking and/or storage space. The trailer also creates a safety hazard for pedestrians and vehicular traffic. ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENDIX A -24 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT I -'1 ( .. Incompatible Use As mentioned in Section B of the Report, many of the residential units are located next to and/or directiy across from auto repair shops, gas stations, or on busy commercial streets, subjecting the sensitive residential uses to nuisances and impairing property vaiues. Photo 35: Broadway at Casselman Street. A home is located next to an auto repair shop where excess auto parts are stored adjacent to the home's perimeter fence. The noise, fumes, and undesirable sight of the repair shop are a nuisance to the residents. ROSENOW SPEVACEK GROUP. INC, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 APPENDIX A -25 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT I -'1 "2... Photo 36: Broadway at Flower Street. The vacant residential unit shares a driveway with the neighboring auto repair shop. The house is located on a heavy retail concentrated street with a lack of buffers for noise and traffic. Photo 37: 200 block of Palomar Street. The residential unit is surrounded by a regional strip center. A chain link fence provides virtually no buffer between the commercial use and the residence. ROSENOW SPEVACEK GROUP, INC, REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENDIX A -26 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT I -93 - Photo 38: 400 of Broadway. The wall of the auto parts shop adjoins a mobile park home. This portion of Broadway has one of the highest rates of traffic accidents and code violations in Chula Vista. Photo 39: 400 Block of Woodlawn Avenue. The residential unit on the left is situated next to a gas station where traffic and gasoiine fumes are a nuisance. ROSENOW SPEVACEK GROUP, INC, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 APPENOIX A -27 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT ( -<jcf - Abnonnally High Business Vacancies and Abandoned Buildings The Added Area has an abundance of business vacancies and abandoned buildings, with a concentration in areas mentioned in Section B of the Report. The foliowing photos exhibit some of the vacant and/or abandoned buildings. Photo 40: Bay Boulevard. This abandoned residential unit is iocated between the Western Salt Facility and residential neighborhood. The building is covered in graffiti and parts of the exterior wall are failing apart. ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 APPENDIX A -28 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT ( -c¡s- .. Photo 41: Bay Boulevard. A vacant site that is a target for illegal dumping. Note the furniture on the right side of the photo. Photo 42: Broadway and Naples Street. The building is vacant and abandoned, and covered in graffiti. ROSENOW SPEVACEK GROUP, INC, REDEVELOPMENT AGENCY OF THE CITV OF CHULA VISTA OCTOBER 30. 2003 APPENDIX A -29 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARV REPORT (-'I" Photo 43: Broadway and Palomar Street. The industrial building next to the railroad tracks is vacant. The building is also deteriorating as it remains vacant. Some of the windows are also boarded up. Photo 44: 100 block of Broadway. This building is abandoned and does not have the proper setbacks, sufficient iot size, or design for modem retail operation. ROSENOW SPEVACEK GROUP. lNG, REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 APPENDIX A-3D CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT I - 97 Photo 45: 100 block of Broadway. The retail store is vacant. Photo 46: 200 block of Broadway. The former gas station is abandoned and vacant with the windows and doors completely boarded up. ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 APPENDIX A -31 CHULA VISTA REOEVELOPMENT PROJECT AREA PRELIMINARV REPORT ( -'1 r Photo 47: 300 block of Broadway. The building in the middle is completely boarded up with deterioration to the roof and framing. Graffiti can also be seen on the abandoned building. Photo 48: 300 block of Broadway. The building is vacant and blocked by the masonry wall, limiting its street visibility. essential for retail operation. ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 APPENDIX A -32 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARV REPORT 1- '1; Photo 49: 400 block of Broadway. Another vacant retail store. The Winston Tires business has relocated to a larger site elsewhere. Photo 50: 400 block of Broadway. The building above is vacant and a target for graffiti. ROSENOW SPEVACEK GROUP. INC. REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENDIX A -33 CHULA VISTA REOEVELOPMENT PROJECT AREA PRELIMINARY REPORT / -/00 - Photo 51: 1100 block of Broadway. The retail center next to Costco is vacant and is a target for graffiti. Photo 52: 600 E Street. The retail store is vacant with parts of signs on the ground. ROSENOW SPEVACEK GROUP, INC, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 APPENDIX A -34 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT /-101 - Photo 53: 700 E Street. The former gas station is vacant. Photo 54: Glover Avenue and E Street. The vacant retail store is completely boarded up. ROSENOW SPEVACEK GROUP. INC, REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENDIX A -35 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARV REPORT I -10"2... Photo 55: Third Avenue and Glover Avenue. This building is marked with graffiti and part of it is boarded up. The building is also tucked away in the back of the lot and lacks street visibility. Photo 56: 600 block of Third Avenue. Another vacant building with graffiti. ROSENOW SPEVACEK GROUP. INC, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENDIX A -36 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARV REPORT I -{O3 Photo 57: 1000 block of Third Avenue. The vacant building has no windows for retail operation. The building is also covered in graffiti. ROsENOW SPEVACEK GROUP, INC, REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENDIXA-37 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT I - I. 0 { High Crime Rates Photo 58: Broadway and H Street. Another site covered in graffiti. Photo 59: 500 block of H Street. Graffiti marking in a residential neighborhood. ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 APPENDIX A -38 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT /-IO.ç- .. Photo 60: 3300 Main Street. Another site covered in graffiti. Photo 61: 200 block of Quintard Street. Another buiiding with graffiti. ROSENOW SPEVACEK GROUP, INC, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30, 2003 APPENDIXA-39 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT /-(Dr:. Photo 62: 900 block of Third Avenue. Abandoned building with boarded up windows with graffiti. ROSENOW SPEVACEK GROUP. INC, REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OCTOBER 30. 2003 APPENDIX A -40 CHULA VISTA REDEVELOPMENT PROJECT AREA PRELIMINARY REPORT I -llJ 1 RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING AMENDED AND RESTATED RULES GOVERNING PARTICIPATION AND REENTRY PREFERENCES FOR PROPERTY OWNERS AND BUSINESS OCCUPANTS FOR THE MERGED CHULA VISTA REDEVELOPMENT PROJECT AREA WHEREAS, Section 33345 of the California Community Redevelopment Law, Health and Safety Code Section 33000 m ~. ("Law") provides that redevelopment agencies shall adopt rules governing participation and reentry preferences for property owners and business occupants in connection with the adoption of a redevelopment plan ("Rules"); and WHEREAS, by previous action duly and regularly taken, the City Council of the City of Chula Vista adopted redevelopment plans for the Otay Valley Road Redevelopment Project, Town Centre II Redevelopment Project, and Southwest Redevelopment Project (the "Redevelopment Plans"); and WHEREAS, each of the three Redevelopment Plans delineates a redevelopment project area (individually, "Project Area" and collectively "Project Areas"); and WHEREAS, by previous action duly and regularly taken, the Town Centre II Redevelopment Plan, Otay Valley Road Redevelopment Plan, and the Southwest Redevelopment Plan were merged in accordance with the provisions of the Law, with these Redevelopment Plans referred to as the Merged Chula Vista Redevelopment Project, but each of the three constituent plans retained its own governing rules relating to participation and reentry preferences for property owners and business occupants ("Separate Rules"); and WHEREAS, in an effort to provide uniform procedures throughout these three constituent redevelopment project areas that constitute the Merged Chula Vista Redevelopment Project, the Agency prepared, made available for public inspection, and circulated to the Town Centre and Added Area Project Area Committees draft amended and restated rules governing participation and reentry preferences for property owners and business occupants ("Draft Rules") in conjunction with the proposed 2004 Amendment to the Merged Chula Vista Redevelopment Plan; and WHEREAS, on September 10, 2003, the Town Centre Project Area Committee reviewed the Draft Rules and recommended that the Agency adopt said rules; and WHEREAS, on October 9, 2003, the Added Area Project Area Committee reviewed the Draft Rules and recommended that the Agency adopt said rules; and WHEREAS, the adoption of the Rules is not a project under CEQA because it cannot cause a direct or indirect physical change in the environment. The Rules are purely an administrative tool to decide who gates to participate in a project, not whether a project is initiated or undertaken (see CEQA Guidelines Sections 15378 and 16160). Moreover, the Rules will not become effective until the completion of the CEQA process for the Amended and Restated Plan. /-108 NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of Chula Vista hereby adopts final Amended and Restated Rules Governing Participation and Reentry Preferences for Property Owners and Business Occupants for the Merged Chula Vista Redevelopment Project Area, in the form attached herewith as Exhibit "A." and these Amended and Restated Rules shall supersede in their entirety the Separate Rules. Presented by Laurie M. Madigan Community Development Director J\COMMDEVIRESOS\O2-24-04\P'ellml"" Report & DP R,,'e, - Feb 24 04 - Two Re,o, doo / - 10 , EXHIBIT "A" AMENDED AND RESTATED RULES GOVERNING PARTICIPATION AND REENTRY PREFERENCES FOR PROPERTY OWNERS AND BUSINESS OCCUPANTS FOR THE MERGED CHULA VISTA REDEVELOPMENT PROJECT AREA 1-110 Merged Chula Vista Redevelopment Project Rules Governing Participation and Preferences by Property Owners and Business Occupants February 24, 2004 RedevelopmentAgency of the City of Chula VIsta 276 Fourth Avenue Chula VIsta, California 91910 Rosenow Spevacek Group, Inc. 217 North Main Street, Suite 300 Santa Ana, California 92701-4822 Phone: (714) 541-4585 Fax: (714) 836-1748 E-Maii: info@webrsg.com 1-1(( Rules Governing Participation and Preferences by Property Owners and Business Occupants Merged Chula Vista Redevelopment Project Table of Contents Section I. Purpose and Intent............................................................. 1 Section II. General Definitions ........................................................... 1 Section III. Opportunities for Owner Participation and Preferences to Business Occupants to Reenter in Business within Redevelopment Area ........................................................................... 2 Opportunities for Owner Participation ........................................................ 2 Preferences for Persons Engaged in Business in the Project Area ........ 2 Section IV. Methods of Participation and Limitations Thereon........ 3 Methods of Participation ............................................................................... 3 Limitation on Participation Opportunities................................................... 3 Establishing Preferences Among Owners.................................................. 4 Section V. Methods for Extending Reentry Preferences and Li m itati 0 ns Th ereon """"""""".""". .......................... ........................ 4 Methods for Extending Reentry Preferences ............................................. 4 Limitations on the Extension of Preferences ............................................. 5 Establishing Preferences Among Business Occupants Seeking Similar Preferences..................................................................................................... 5 Section VI. Participation Procedures................................................. 6 Notice and Statement of Interest.................................................................. 6 Participation Agreements ............................................................................. 7 /-IIL JICOMMOE,^TAPIAIPROJECTSIBIG AMENOMENnoWNER PARTICIPATION RULES - FEB 24 04 DOC - Section VII. Enforcement ................................................................... 8 Section VIII. Amendment of Rules ..................................................... 8 Map of Project Area ................................................................. Exhibit A Statement of Interest .............................................................. Exhibit B (-03 JICOMMDEV\TAPIAIPROJECTSIBIG AMENDMENnOWNER PARTICIPATION RULES - FEB 24 04 DOC Rules Governing Participation and Preferences by Property Owners and Business Occupants Merged Chula Vista Redevelopment Project Section I. Purpose and Intent These rules are adopted to implement the provisions of the Redevelopment Plan for the Merged Chula Vista Redevelopment Project ("Project") regarding participation and the exercise of preferences by property owners and business occupants within the Merged Chula Vista Redevelopment Project Area ("Project Area"). These rules set forth the procedures goveming such preferences and participation. The Hea~h and Safety Code of the State of Califomia Section 33000 m ~. requires the adoption of these rules by the Redevelopment Agency of the City of Chula Vista to permit participation by owners of real property and the extension of preferences to persons engaged in business within the boundaries of the Project Area to reenter the redeveloped area to the maximum extent feasible consistent with the objectives of the Redevelopment Plan for the Project. Section II. General Definitions As used herein, the following definitions apply: A. "Agency" means the Redevelopment Agency of the City of Chula Vista. B. "Business Occupant" means any person, persons, corporation, association, partnership, or other entity engaged in a lawful business within the Project Area for so long as such Business Occupant remains in business within the Project Area. C. "City" means the City of Chula Vista. D. "Disposition and Development Agreement" means a contractual agreement between a developer and the Agency that sets forth terms and conditions for the sale and the development of a property within the Project Area. E. "Long-Term Lease" means a lease of real property with a term of twenty (20) years or more, with at least ten (10) years remaining on such term. F. "Owner" means any person, persons, corporation, association, partnership, or other entity holding recorded fee title to or a long-term lease of real property in the Project Area for so long as such Owner holds such title or long-term lease. ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITV OF CHULA VISTA FEBRUARV 9. 2004 -1- MERGED CHULA VISTA REDEVELOPMENT PLAN /-1"1 OWNER PARTICIPATION RULES G. "Participant" means an Owner who has entered into a Participation Agreement with the Agency. H. "Participation Agreement" means an agreement entered into by an Owner with the Agency providing for such Owner to participate in the redevelopment of property within the Project Area in accordance with the provisions of the Redevelopment Plan and these Rules. I. "Plan" means the Redevelopment Plan for the Merged Chula Vista Redevelopment Project. J. "Project Area" means the Merged Chula Vista Redevelopment Project Area of the Agency, which is described in and is subject to the Redevelopment Plan, as depicted on Exhibit A attached hereto. K. "Rules" mean these Rules Goveming Participation and Preferences by Property Owners and Business Occupants. Section III. Opportunities for Owner Participation and Preferences to Business Occupants to Reenter in Business within Redevelopment Area Opportunities for Owner Participation An Owner of real property within the Project Area shall be extended an opportunity to participate in the redevelopment of the Owner's property in the Project Area, if such Owner agrees to participate in the redevelopment in conformity with the Plan and these Rules, and such Owner is qualified to undertake and complete the identified redevelopment project as determined by the Agency. Preferences for Persons Engaged in Business in the Project Area Business Occupants engaged in business in the Project Area shall be extended a reasonable preference to reenter in business within the proposed development site if they otherwise meet the requirements prescribed by the Plan and these Rules as determined by the Agency. ROSENOW SPEVACEK GROUP. INC, REDEVELOPMENT AGENCV OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 -2- MERGED CHULA VISTA REDEVELOPMENT PLAN I-lIS'" OWNER PARTICIPATION RULES - Section IV. Methods of Participation and Limitations Thereon Methods of Participation Participation methods include: (i) remaining in substantially the same location either by retaining all or portions of the property, or by retaining all or portions of the property and purchasing adjacent property from the Agency or joining with another person or entity for the rehabilitation or development of the Owner's property and, if appropriate, other property, or (ii) submitting to the Agency for its consideration another method of participation proposal pursuant to these Rules. An Owner who participates in the same location may be required, among other actions, to rehabilitate or demolish all or a part of his/her existing buildings. The Agency may also acquire the buildings only and then remove or demolish the buildings. Participation methods also include but are not limited to the Agency buying land and improvements at fair market value from Owners and offering other parcels for purchase and rehabilitation or development by such Owners, or offering an opportunity for such Owners to rehabilitate or develop property jointly with other persons or entities. Umitation on Participation Opportunities Owner Participation opportunities shall be subject to and limited by factors and requirements including: 1. The Participant(s) must demonstrate to the satisfaction of the Agency that the Participant is financially capable and has the qualifications and experience to perform any and all development, construction, modification, rehabilitation, modemization, construction, land assembly, and/or acquisition of the subject property or properties in order that it will conform to the Plan, any specific plan or design guide, applicable zoning, building, and safety laws and regulations, and the redevelopment proposal, if any, contemplated by the Agency with respect to the subject property. 2. The Participant's proposed improvements and/or redevelopment conform or will conform to: the goals and objectives established by the Agency; the Plan; any applicable specific plan or design guide; applicable zoning, building and safety laws and regulations; and the redevelopment proposal for the development site approved by the Agency. 3. The Agency retains its authority to determine in its sole discretion whether the Participant's(s') proposed development conforms to and furthers the goals and objectives of the Plan and any specific redevelopment proposals on the basis of all the facts and circumstances pertaining to the Participant's proposed development. ROSENOW SPEVACEK GROUP, INC, REDEVELOPMENT AGENCY OF THE CiTY OF CHULA VISTA FEBRUARY 9. 2004 -3- MERGED CHULA VISTA REDEVELOPMENT PLAN I-I(" OWNER PARTICIPATION RULES 4. The Agency shall consider whether the proposed owner participant development necessitates that the Participant and/or the Agency shall remove, relocate and/or install public utilities and public facilities determined necessary by the Agency for the proposed development. 5. Consideration of the elimination and/or change of land uses, particularly nonconforming land uses as specified in City codes. 6. The Agency shall consider the need to realign, abandon, vacate, widen, or open public rights-of-way and the indirect effects of such acts. 7. Consideration of any reduction in the total number of individual parcels in the Project Area. 8. Consideration of whether the proposal involves land assembly and development of areas for public and/or private development in accordance with the Plan. Establishing Preferences Among Owners If conflicts develop between the desires of Participants for particular sites or land uses, the Agency is authorized to exercise its reasonable discretion and establish priorities and preferences among the Participants and to determine a solution by consideration of the proposals, including, but not limited to: development experience and qualifications, financial ability to perform, length of time in the area, accommodation of as many potential participants as possible, and conformity with intent and purpose of the Plan. Participation, if and to the extent feasible, may be available for two or more persons, firms, or institutions, to join together in partnerships, corporations, or other joint entities. To the extent multiple Owners are included within a proposed development site, an Owner with a majority interest in the total proposed development site may be determined by the Agency to have a preference over an Owner with a minority interest in the proposed development site. Section V. Methods for Extending Reentry Preferences and Limitations Thereon Methods for Extending Reenby PI~1CeS Whenever a Business Occupant will be displaced by Agency action from the development site, the Agency will, prior to such displacement, determine: 1) whether such Business Occupant desires to relocate directly to another location within the Project Area, or 2) if suitable relocation accommodations within the Project Area are not available prior to displacement, whether such Business Occupant would desire to reenter in business within the development site or elsewhere in the Project Area at a later date should suitable accommodations become available. For those Business Occupants who desire to relocate directly ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARV 9, 2004 -4- MERGED CHULA VISTA REDEVELOPMENT PLAN 1-117 OWNER PARTICIPATION RULES to another location within the Project Area, the Agency will make reasonable efforts to assist such Business Occupants to find accommodations suitable to their needs. The Agency will make reasonable efforts to assist such Business Occupants to find reentry accommodations at locations and rents suitable to their needs. Umitations on the Extension of Preferences The following are the minimum requirements that must be met by any business to establish its eligibility for the reasonable preference to reenter in business in the Project Area after displacement: 1. The business use proposed shall be consistent with the land use standards of the Plan and any specific plan and development standards and criteria adopted by the Agency or the City. 2. The improvement on the business premises made or proposed to be made shall (unless otherwise approved by the Agency) meet, or shall be brought up to meet, a structural condition equal to or better than that required for a new structure or improvement of equivalent size, location, use and occupancy as required by the building and safety laws and regulations then applicable in the City, and shall conform to the Plan. 3. The Business Occupant shall demonstrate to the satisfaction of the Agency that Business Occupant is financially capable and qualified to perform any and all modifications or rehabilitation or modernization on the property at the new location in order that it will conform to the Plan and capable of meeting the financial requirements to occupy space in the new location. 4. The business shall agree in writing that in the use, occupancy and conduct of business in the premises, there shall be no discrimination based on any impermissible classification including but not limited to race, sex, mar~al status, color, creed, religion, national origin, ancestry, sexual orientation, physical handicap, or medical condition. Establishing PI efereIlCeS Among Business Occupants Seeking Similar Preferences If conflicts develop between the desires of Participants for particular sites or land uses, the Agency is authorized to exercise its reasonable discretion and establish priorities and preferences among the Business Occupants and to determine a solution by consideration of the proposals, including, but not lim~ed to: financial ability to perform, length of time in the area, accommodation of as many potential Business Occupants as possible, appropriateness of the type of business within the proposed premises or location, the feasibility of business success, and conformity with intent and purpose of these Rules and the Plan. Participation, to the extent feasible, may be available for two or more persons, firms or institutions, to join together in partnerships, corporations, or other joint entities. ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9. 2004 -5. MERGED CHULA VISTA REDEVELOPMENT PLAN /-Ilf OWNER PARTICIPATION RULES - Section VI. Participation Procedures Notice and Statement of Interest Before entering into any Participation Agreements or Disposition and Development Agreements relating to the acquisition, redevelopment, or rehabilitation of real property in the Project Area, the Agency shall first comply with these Rules relating to soliciting interest in owner participation from the Owner of the property that is the subject of the redevelopment proposal (i.e., the property that may be acquired, developed, or rehabilitated) and invite the Owner to submit a Statement of Interest for Participation (incorporated herein as Exhibit B) in the proposed development or in otherwise participate in the redevelopment project. The Agency shall send by first class mail, or other means determined by the Agency, a Statement of Interest in Participation to each Owner whose real property is the subject of the possible redevelopment project. Those desiring to submit a Statement of Interest in Participation must complete and retum the Statement to the Agency within thirty (30) days of receipt. Any Owner may also submit such a Statement at any time before such notification. All Statements of Interest in Participation received after the deadline for submission may be given consideration by the Agency, at their discretion, but in a priority secondary to those statements received by the deadline. Such Statement shall include information requested by the Agency and shall be in the form requested by the Agency. The Agency shall seek to develop reasonable participation for those submitting such Statements whether to stay in place or to move to another location. At its discretion, Agency staff may determine that a participation proposal as set forth in a Statement does not meet the criteria set forth in Section IV and reserves the right to deny participation to an Owner on such basis. Participants and Occupants may appeal a staff decision to the Agency board. If a Statement is timely received by the Agency (and also as to those Statements which are received after the stated deadline but the Agency, in its sole discretion, gives consideration), Agency staff shall evaluate the Statement and determine whether the Statement and the nature of the proposed participation described therein meets the requirements of the Plan and these Rules. If a Statement meets the requirements and also proposes participation that is feasible, the Agency shall contact the Owner and discuss the Owner's next submittal to the Agency, which will be a formal proposal for the project identified in the Statement. Agency shall provide the Owner with a list of information and materials to be included in the formal proposal which shall include, as a minimum, a complete project description, the development entity including the identity of all individuals and companies involved, a project pro forma including the sources and uses of funds, project financing, conceptual site plan including setbacks, layout of buildings, streets, parking, access, and circulation, a schedule of performance or time line ROSENOW SPEVACEK GROUP. INC. REOEVELOPMENT AGENCY OF THE CITV OF CHULA VISTA FEBRUARY 9, 2004 -6- MERGED CHULA VISTA REDEVELOPMENT PLAN I-I(~ OWNER PARTICIPATION RULES for the development, and description of any development impediments including environmental matters. Owner shall submit the formal proposal within forty-five (45) days after receipt of written notice from Agency that the Owner's Statement has been accepted for further consideration and that Owner is to submit the formal proposal. The Agency may in its sole discretion determine that a participation proposal as set forth in the Statement is not feasible or in the best interest of the Project or the community, or is otherwise limited by one or more of the criteria set forth in Section IV hereof. In such event, the Agency may select a developer from among prospective Participants submitting Statements and others invited to submit proposals. The Agency may also, upon review of timely submitted formal proposals, determine such proposal(s) is/are not consistent with the Plan or criteria in these Rules, or that one proposal is better suited, or that none of the formal proposals are consistent with the Plan or its goals and objectives or criteria in these Rules. The Agency retains and shall exercise the discretion vested in it by law to consider and determine whether the Statement or formal proposals for redevelopment submitted by an Owner or Owners for participation conforms to, and meets the goals and objectives of, the Plan and these Rules. The Agency shall exercise said discretion reasonably, in good faith, and without discrimination. The Owner's participation opportunity shall be deemed conclude and completed upon the occurrence of any of the following: (1) the Owner fails to timely retum a Statement of Interest in Participation; (2) the Owner submits a Statement of Interest in Participation but Agency staff or Agency determines such Statement is incomplete or inconsistent with the goals and objectives of the Plan and of the Agency with respect to the proposed project; (3) the Owner fails to timely submit a formal proposal; or (4) the Owner timely submits a formal proposal but the Agency staff or Agency determines that the formal proposal is inconsistent with the Plan or the criteria set forth in these Rules or another proposal better suits the property and goals and objectives of the Plan and of the Agency with respect to the proposed project. Participation Agreements General Owners wishing to develop or improve their properties within the Project Area may be required, as a condition to Agency approval of such development, to enter into a binding written Participation Agreement with the Agency, if the Agency determines it is necessary to impose upon such property any of the standards, restrictions and controls of the Plan, or of any design guide adopted by the Agency pursuant to the Plan. ROSENOW SPEVACEK GROUP. INC. REDEVELOPMENT AGENCV OF THE CITV OF CHULA VISTA FEBRUARV 9, 2004 -7- MERGED CHULA VISTA REDEVELOPMENT PLAN I - I 2...0 OWNER PARTICIPATION RULES Contents A Participation Agreement shall obligate the Owner, and the Owner's heirs, successors and assigns to acquire, rehabilitate, develop and use the property, as may be applicable, in conformance with the Plan and/or to be subject to such other provisions and conditions of the Plan as the Agency may require for the period of time that the Plan is in force and effect, excepting those provisions related to nondiscrimination and nonsegregation which shall run in perpetuity. Each Participation Agreement will contain such terms and conditions and will require the potential Participant to join in the recordation of such documents as the Agency may require in order to ensure the property will be acquired, rehabilitated, developed and used in accord with the Plan and the agreement. Participation Agreements will be effective only if approved by the Agency. Section VII. Enforcement In the event a property is not acquired, developed, rehabilitated, or used in conformance with the Plan, or is not the subject of an Agency determination of conformance or a Participation Agreement, then the Agency is authorized to (1) purchase the property, (2) purchase any interest in the property sufficient to obtain conformance, or (3) take any other appropriate action sufficient to obtain such conformance. Any acquisition of property by the Agency shall comply with applicable law pertaining to acquisition of property by a public entity. Section VIII. Amendment of Rules The Agency may amend these rules at any meeting of the Agency. No such amendment shall retroactively impair the rights of any parties who have executed Participation Agreements with the Agency in reliance upon these rules as presently constituted. ROSENOW SPEVACEK GROUP, lNG, REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARV 9, 2004 -8- MERGEO CHULA VISTA REOEVELOPMENT PLAN /-12..( OWNER PARTICIPATION RULES n Map of Project Area ROSENOW SPEVACEK GROUP, INC, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 -EXHIBIT A- MERGED CHULA VISTA REDEVELOPMENT PLAN / ...... I '- "'L.. OWNER PARTICIPATION RULES 1-11.3 n Statement of Interest ROSENOW SPEVACEK GROUP. lNG, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FEBRUARY 9, 2004 EXHIBIT B MERGED CHULA VISTA REDEVELOPMENT PLAN I -12 t{- OWNER PARTICIPATION RULES REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA STATEMENT OF INTEREST IN PARTICIPATION I hereby express my interest in participating in the Merged Chula Vista Redevelopment Project: 1. Name of Property OwnerfTenant: Phone: 2. Home Address: 3, Address of Property owned or rented in the Project Area: 4, Name of business in the Project Area: 5. I own ( ); am a tenant ( ); and wish to rehabilitate ( ); build ( ); sell ( ) my present property. If tenant, indicate: month-te-month ( ); or lease ( ); expiration date of lease: 6. My present type of business is: 7. Nature of proposed participation: [ADD ADDITIONAL SHEETS IF NECESSARY] I understand that submission of this Statement of Interest does not in any way obligate me to participate in the Project, nor is submission of this Statement a representation or warranty by the Agency that I shall be selected to participate in the redevelopment of any real property, Signed: Retum to: Title: Redevelopment Agency of the City of Chula Vista 476 Fourth Avenue Date: ChulaVista, CA91910 Attention: !-/-¿S-