HomeMy WebLinkAboutRDA Packet 1996/07/23
Notice is hereby given that the Chairman of the Redevelopment Agency has called and will convene a special
meeting of the Redevelopment Agency on July 23, 1996, at 6:00 p.m., immediately following the regular City
Council meeting, in Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista,
California to consider, deliberate and act upon the following: ~
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6:00 p,m, q. .~é) . .cellon Public Services Building
(immediately following the City Conncil meeting)
'7"
Special Meeting of the Redevelooment Agencv of the Citv of Chula Vista
CALL TO ORDER
1. ROLL CALL: Agency Members Alevy -' Moot -, Padilla -'
Rindone -' and Chair Horton-
BUSINESS
The following item(s) will be considered, deliberaled, and acted upon by the Redevelopment Agency, lfyou wish
to speak to any item described in the Agenda before or during consideration of that item, please fill out the
"Request to Speak Form" available in the lobby and submit it to the Secretary of the Redevelopment Agency or
the City Clerk prior to the meeting. (Complete the green form to speak in favor of the staff recommendation;
complete the pink form to speak in opposition to the staff recommendation.) Comments are limited to three
minutes per individual,
2, REPORT RESULTS OF THE KEYSER MARSTON ANALYSIS OF AMENDING
THE BAYFRONT REDEVELOPMENT PLAN TO INCLUDE THE
SOUTH BAYFRONT (TIDELANDS) AREA--On 4/9/96, the Agency
authorized a contract with Keyser Marston Associates, Inc, to analyze the
possible amendment of the Bayfront Redevelopment plan to add the south
bayfront properties owned by the Port District. Staff recommends the Agency
accept the KMA report and direct staff to initiate the process to amend the
Redevelopment Plan. (Community Development Director)
ORAL COMMUNICATIONS
This is an opporlunity 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 Council on such a subject, please complete theyellow "Request to Speak Under Oral Communications
Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to
the meeting. Those who wish to speak, please give your name and address for record purposes and follow up
action. Your time is limited to three minutes per speaker.
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Agenda -2- July 23, 1996
OTHER BUSINESS
3. DIRECTOR'S REPORTlS)
4, CHAIR'S REPORT(S)
5, AGENCY MEMBERS COMMENTS
ADJOURNMENT
The meeting will adjourn to a closed session and thence to the Regular Redevelopment Agency Meeting on
August 6, 1996, at 4:00 p,m., immediately following the City Council meeting, in the City Council Chambers,
* * * * *
CLOSED SESSION
Unless Agency Counsel, the Executive Director, or the Redevelopment Agency states otherwise at this time, the
Agency will discuss and deliberate on the following item(s) of business which are permitted by law to be the subject
of a closed session discussion, and which the Agency is advised should be discussed in closed session to best protect
the interests of the City. The Agency is required by law to return to open session, issue any reports of.fi!1glaction
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's return from closed
session, reports of.fi!1gl action taken, and adjournment will not be videotaped. Nevertheless, the report of final
action taken will be recorded in the minutes which will be available in the Office of the Secretary to the
Redevelopment Agency and the City Clerk's Office,
6. PROPERTY DISPOSITION: Pursuant to Government Code Section 54956.8
. 14 acre Agency-owned parcel - Lower Sweetwater Valley site
Parcel #s 563-350-13 and 566-131-01
7, CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION: Contemplated initiation
of litigation by the Redevelopment Agency pursuant to Government Code Section 54956.9(c)
. Chula Vista Auto Park developers - South Bay Chevrolet and Fuller Ford/Honda/Kia v,
City/Redevelopment Agency based on administrative claims filed on November 15, 1995, and subsequent
requests for Preference Proceedings under the Disposition and Development Agreement.
8. REPORT OF ACTION(S) TAKEN IN CLOSED SESSION
******
COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT
The City of Chula Vista, in complying with the Americans With Disabilities Act (ADA), request
individuals who require special accommodations to access, attend, and/or participate in a City meeting,
activity, or service request such accommodation at least forty-eight hours in advance for meetings and
five days for scheduled services and activities, Please contact the 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,
[(md) c:lwp51Idocoment\ra-agdIO7-23.96.agd]
REDEVELOPMENT AGENCY AGENDA STATEMENT
Item ;;2..
Meeting Date ~ 7/';¡3(qlJ
ITEM TITLE: Report Results of the Keyser Marston Analysis of
Amending the Bayfront Redevelopment Plan to Include the South
Bayfront (Tidelands) Area
SUBMITTED BY: Commoo'<y O,",lopm,'" O"~s .
REVIEWED BY: Executive DirectoΠ~ ~ /1 (4/5ths Vote: Yes - No_I
BACKGROUND: The Redevelopment Agency, at its meeting of April 9, 1996, authorized a
contract with Keyser Marston Associates, Inc, (KMA) to analyze the possible amendment
of the Bayfront Redevelopment plan to add the south bayfront properties owned by the
Port District. Staff was concerned about the eligibility of the South Bayfront study area
for redevelopment assistance under recent changes in State Community Redevelopment
Law which require new redevelopment areas to meet stringent blight and urbanization
criteria. A final report has been received from KMA which indicates that, with additional
data and staff analyses, this area can qualify for redevelopment assistance and can be
added to the Bayfront Redevelopment Project Area. Furthermore, the act of amending the
Bayfront Redevelopment Plan to add territory will provide the opportunity to extend the
project termination date (currently 1999) and debt limitation.
The Agency is requested to review and accept the KMA Report, and provide direction to
staff concerning amendment of the Bayfront Redevelopment Plan. The Agency is also
requested to consider initiation of a cooperation agreement with the Port District and
ROHR for your replanning of the tidelands.
RECOMMENDATION: That the Agency accept the KMA report and direct staff to initiate
the process to amend the Redevelopment Plan including the preparation of a cooperation
agreement with the Unified Port District and ROHR for the replanning of the study area.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable,
DISCUSSION:
In order to be included in the Bayfront Redevelopment Project Area, the tidelands must
meet new criteria established by recent amendment of the Community Redevelopment
Law intended to preclude cities from providing redevelopment assistance to areas that are
predominantly undeveloped and which do not meet stringent blight criteria, Because of
the amount of vacant land in the tidelands and the amenities in the area including a marina
and two public parks, the Agency authorized KMA to determine whether the study area
could meet blight and urbanization criteria,
BIiQht Criteria
The official definition of blight is provided in Section 33030 of the Community
Redevelopment Law, This definition translates into a "four-part blight test"
outlined below:
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Page 2, Item ~
Meeting Date ~ "r !n,11b
First, the area must be severely impacted by one qualifying physical and one
qualifying economic condition,
Second, the combination of these conditions must cause a reduction of, or
lack of proper utilization of the area,
Third, the lack of proper utilization must constitute a serious physical and
economic burden on the community.
Fourth, the burden cannot be reversed or alleviated by private enterprise or
governmental action, or both, without redevelopment,
A finding of blight does not have to be determined for every property, but blighting
conditions must predominate and affect the whole area,
The KMA report indicates that two of the four qualifying physical conditions listed in the
California Redevelopment Law characterize the study area. These are:
1. Factors that prevent or substantially hinder the economically viable use or capacity
of buildings or lots, The condition can be caused by substandard design, inadequate
size given present standards and market conditions, lack of parking, or other
factors,
2, Adjacent or nearby uses are incompatible with each other and which prevent the
economic development of those parcels or other portions of the project area,
The economic blight of the study area is characterized by lack of development, high
vacancy rates in existing buildings, and possible soil contamination issues related to the
industrial land uses which have historically characterized this area,
The KMA report indicates that, because blight characteristics do not widely apply to the
study area, it will be important to describe, in detail, how the area meets the legal test of
blight, Appropriate and thorough analysis of blighting conditions will be necessary in order
to make a publicly convincing as well as legal determination of blight,
Predominantly Urbanized Area
Community Redevelopment Law also requires that redevelopment areas be classified as
predominantly urbanized. That means that (1) not less than 80% of the land in the project
area has been or is developed for urban uses; (2) the area is characterized by parcels of
irregular form, shape and size and under multiple ownership; or (3) is an integral part of
one or more areas developed for urban uses. The study area qualifies as predominantly
urbanized under (1) and (3) above. The whole study area, according to the KMA report,
can be determined to be urbanized. Approximately one half of the area is developed with
urban uses while is other half is considered an integral part of an area developed for urban
uses (greater downtown Chula Vista).
Issues Related to the Use of RedeyeloDment
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Page 3, Item ~
Meeting Date 67fT-aí!!/! 7j:J.:3I%
Staff must identify how redevelopment activities will specifically be applied to reduce or
eliminate identified blight.
An argument will also have to be developed as to why public actions alone, that is, actions
by the City and Port District working in cooperation with ROHR industries which might
include rezoning, beautification, and a consolidation of industrial land uses north of H
Street, cannot improve the area without redevelopment assistance,
Plan AdoDtion Issues
The current Bayfront Redevelopment Plan is scheduled to terminate in 1999, It was the
intention of the Agency to amend the Plan in conjunction with approval of a development
agreement for the Mid-Bayfront which is now on hold. However, if the Redevelopment
Plan is amended to add territory, it would also be appropriate to extend the termination
date to the maximum allowed under current law (currently 2014). It would also behoove
the Agency to investigate the possibility of increasing the financial limitations of the Plan
(currently set at $50 Million) in order to meet the needs of future developments in both the
original project and added territory.
It is recommended that the Agency direct staff to proceed with the additional analysis and
processing to amend the Redevelopment Plan to add the tidelands area. It is also
recommended that, as part of this process, the Agency staff work with Port District and
Rohr staff to prepare a cooperation agreement to replan the study area, The agreement
should address joint staff efforts, sharing of expenses, selection of consultants and
revenue sharing issues,
FISCAL IMPACT: The Agency previously authorized the expenditure of $ 7 ,000 for the
KMA study. Since additional work on the Bayfront Plan Amendment will be done by staff,
no additional funds are being requested for this activity. However, if the Agency wishes
work to proceed with the plan amendment, considerable staff time will be spent on the
preparation and processing of documents which is expected to take five months to
complete.
The plan amendment may require an Environmental Impact Report which would require
consultant services and cost approximately $50,000,
a k: c: c ommd evlkassma nlrepo ,ts Ikma, rpt
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KEYSER MARSTON ASSOCIATES I N C. ADmo", 'NO
REAL ESTATE
500 SOUTH GRAND AVENUE. SUITE 1480 REDEVELOPMENT
Los ANGELES, CALIFORNIA 90071 ECONOMIC DEVELOPMENT
213/622-8095 FA< 213/622-5204 FiSCAL IMPACT
Los ANGELES
RICHARD L. 80m
MEMORANDUM CALVIN E. HOLLIS. II
KATHLEEN H. HEAO
SAN DIEGO
GERALO M. TROMBLE
ROBERT J. WETMORE
PAUL C. MARRA
SAN FRANCISCO
TO: Mr. Fred Kassman, Redevelopment Coordinator A. JERRY KEYSER
T'MOTHY C. KElLY
City of Chula Vista KATE EARLE FUNK
DEN"E E. CONLEY
DEBBIE M. KERN
FROM: Keyser Marston Associate, Inc,
SUBJECT: Opinion on the Use of Redevelopment for the
South Bayfront Area
DATE: June 13, 1996
Keyser Marston Associates, Inc, (KMA) has reviewed pertinent documents and
held discussions to gather information to make preliminary findings with regard
to the use of redevelopment within the South Bayfront area (Study Area).
The primary purpose of this Memorandum is to provide you with our opinion on
whether the area would meet the "blighted area" and "urbanized area" tests
necessary to qualify the area for the use of redevelopment. In addition, we have
also provided a discussion on issues related to the use of redevelopment to be
considered and addressed,
Based on preliminary study, KMA believes that the area could be found to be
both a blighted area and a predominantly urbanized area in accordance with the
California Community Redevelopment Law as amended in 1993 by Assembly Bill
1290, We have outlined an argument to show how the Study Area would qualify
as a blighted area based on the legal definition of blight and our knowledge of
the Study Area gathered from a field visit, review of maps and reports, and
conversations with City and Port of San Diego officials, The blight argument
outlined in this Memorandum is preliminary since it is not based on a detailed
d.. -y
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Page 2
study or analysis of data, but would be the basis from which to more fully
document existing conditions and qualify the area for the use of redevelopment.
The findings of our preliminary study have been reviewed by special legal
counsel, Kane, Ballmer & Berkman.
REASONS FOR THE USE OF REDEVELOPMENT WITHIN THE SOUTH
BAYFRONT AREA
The purpose of redevelopment is to aid in the alleviation of blighting influences
and impediments to development to return underutilized urban areas to fully
functioning viable areas for the benefit of the community, The carrying out of a
redevelopment plan is intended to promote the public peace, health, safety, and
welfare of the community.
To help describe the reasons for the use of redevelopment within the Study
Area, it will be important to make clear what are the goals and objectives and to
explain how redevelopment is necessary to achieve the goals and objectives,
The development of goals and objectives should be a cooperative effort among
the City of Chula Vista (City), the Port District of San Diego (Port District),
residents and businesses within and surrounding areas, and community
organizations,
As stated in the Chula Vista Local Coastal Program, the City considers the
Coastal Zone an important development area due to its location and potential to
create a unique image for Chula Vista, The General Plan of the City of Chula
Vista describes the vision for the Baytront:
"The continuing redevelopment of the Bayfront will create a water-oriented
focal point for the entire City, With an emphasis on public recreation
activities, tourism and conservation, it will emerge as the premier water-
front experience in the South Bay, The development standards and
quality will equal those of similar redevelopment projects in the northern
section of San Diego Bay, The diversity of uses will exceed that of many
similar projects and contribute to its vitality by all citizens."
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KEYSER MARSTON ASSOCIATES INc.
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MAP 1
REGIONAL LOCATION
~ Regional Location!
- Exhibit 1
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Study Area ::;:;:::;: IJNITEO - - ;;:.---
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Source: Chula Vista Local Coastal Program. Land Use Plan, Approved October 13. 1992
Redevelopment Analysis é2-~
Chula Vista Redevelopment Agency
MAP 2
COASTAL ZONE
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/ 'LEGEND
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Source: Chula VIsta Local Coastal Program - Land Use Plan, Approved October 13. 1992
~:e~':::'~::~:'nt Agency ¿;¿ - 7
Page 3
The Local Coastal Program goes on to define specific Bayfront development
goals including:
. Create a water-oriented focal point for the entire City of Chula Vista which
includes uses which are attractive to visitors and residents alike.
. Provide for the extension of the downtown urban core into the Bayfront to
emphasize a strong east-west connection.
. Provide a continuous open space network which links the Bayfront to the
planned "Chula Vista Greenbelt" incorporating the Sweetwater River Valley to
the north and the Otay River Valley to the south,
. Promote integrated land uses in the Bayfront and create an identifiable image
for the Bayfront.
. Provide good regional access to encourage visitors to the Bayfront,
. Provide for the long-term protection of important natural resources, including
those within the National Wildlife Refuge,
. Promote opportunities for public coastal access, open space, park and
recreational uses adjacent to the natural resources of the Bayfront,
. Retain Rohr Industries as a major employer and industrial business in Chula
Vista, but limit the extent of any new general industrial and commercial uses to
assure development of unique visitor oriented uses within the coastal zone,
Although the Study Area is not subject to the Chula Vista Local Coastal Program
(since planning jurisdiction belongs to the Port District), it is clear that these
same goals could be applied to the Study Area, An explanation could be
provided that describes the entire Bayfront area (North, Mid, and South) as one
identifiable area sharing common characteristics, problems, and issues,
A contributing reason for adding the Study Area would be to effectuate the
redevelopment of the existing Bayfront Redevelopment Project Area, The
redevelopment efforts of the existing Bayfront Redevelopment Project could be
made more successful with the integration of the whole Bayfrontlshoreline area,
However, redevelopment is not intended to merely help to achieve the City's
planning visions, The area must be determined to be a "blighted area" and that
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KEYSER MARSTON ASSOCIATES INc.
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Page 4
the actions of the private sector acting alone or in partnership with the public
sector could not be expected to reverse or alleviate blighting conditions without
the extraordinary powers and authority of redevelopment:
BLIGHT ARGUMENT
In order for an area to qualify for the use of redevelopment, the area must be
found to be a blighted area, the redevelopment of which is necessary to
effectuate the public purposes declared by law,
The definition of a blighted area is provided in Section 33030 of the California
Community Redevelopment Law ("CRL"; Heath and Safety Code Section 33000
et seq,).
"A blighted area is one that contains both of the following:
(1) An area that is predominately urbanized, as that tenn is defined in Section 33320,1,
and is an area in which the combination of conditions set forth in Section 33031 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 ba expected to ba reversed or alleviated by
private enterprise or governmental action, or both, without redevelopment,
(2) An area that is characterized by either of the following:
(A) One or more conditions set forth in any paragraph of subdivision (a) of Section 33031
and one or more conditions set forth in any paragraph of subdivision (b) of Section
33031,
(B) The condition described in paragraph (4) of subdivision (a) of Section 33031.
A blighted area also may be one that contains the conditions described in subdivision (b)
and is, in addition, characterized by the existence of inadequate public improvemants,
parking facilities, or utilities,"
This definition is translated into a "four-part blight test." First, the area must be
severely impacted by one qualifying physical and one qualifying economic
condition, Second, the combination of these conditions must cause a reduction
of, or lack of proper utilization of the area, Third, the lack of proper utilization
must constitute a serious physical and economic burden on the community,
Fourth, the burden cannot be reversed or alleviated by private enterprise or
governmental action, or both, without redevelopment. A finding of blight does
é2 - 9 KEYSER MARSTON ASSOCIATES I N C.
Page 5
not have to be determined for every single property but blighting conditions must
predominate and effect the area as a whole in order to qualify,
Part One of the test is to determine if certain physical and economic conditions
exist. Exhibit A to this Memorandum describes what conditions can be found in
the Study Area based on a review of maps and documents, discussions with key
persons, and a limited visual inspection, No data analysis has been conducted
in connection with this opinion,
Part Two of the test is to determine if the physical and economic conditions have
lead to a lack of proper utilization of the area, The Study Area appears to
experiencing a lack of proper utilization because of physical constraints and
economic conditions, In particular, a large number of parcels have suffered from
long term vacancy,
Part Three of the test is to determine if physical and economic conditions and
lack of proper utilization represents a burden on the community, Community
refers to both the City as a public body responsible for providing basic urban
services and the general public who live and work in the City, There are several
indicators that can describe and document the burden on the community, These
typically include a higher proportion of costs necessary to provide and maintain
urban services, a disproportionate share of revenues are generated from the
area, a major employer (such as Rohr Industries) or user has vacated or
downsized operations, the area is an environmental liability for the community,
and other similar factors, In order to demonstrate that the Study Area represents
a burden on the community these types of factors will need to be analyzed,
Part Four of the test is to determine if redevelopment is the last resort to solving
the Study Area's problems, It is important to document and demonstrate the
inability of the tenants, City of Chula Vista, and the Port District to rectify the
problems through private and public investment. Neither the Port District nor the
City seem to be in the financial position to invest significantly in the Study Area,
The Port's leasing program has not been successful in development of the area.
(Documentation that funds are not available in the Capital Improvement Program
for both the Port District and the City to remedy problems should be presented),
Physical Blight Conditions
Two of the four qualifying physical conditions as listed in the CRL characterize
the Study Area, They include:
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KEYSER MARSTON ASSOCIATES INC.
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Page 6
CRL Section 33031(a)(2) - "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."
CRL Section 33031(a)(3) - "Adjacent or nearby uses that are incompatible with
each other and which prevent the economic development of those parcels or
other portions of the project area,"
The factors that prevent or substantially hinder the economically viable use or
capacity of buildings or lots within the Study Area are often considered physical
constraints to development. Physical development constraints are difficult to
remove often leaving land underutilized contributing to a weakening of the
economic health of the area, There are a number of adverse physical conditions
which have impacts on development potential. The most notable factor within
the Study Area is the poor parcel configuration of both vacant and developed
land, Of the 9 vacant parcels identified on the "Port of San Diego" map (Map 3),
Parcels 1, 2, 13, and 14, and 5 have odd-shapes, Parcels 7 and 10 are
considered smaller in size, and Parcel 6 is considered long and narrow, Parcel
9 could be considered the only optimal parcel configuration, Although all
parcels are owned by the Port District, any assembly considered important to
create viable parcel configurations is difficult due to the varied types of long term
land uses on surrounding properties,
Related to Study Area parcel configuration, is the orientation, accessibility, and
visibility of the individual parcels, Most parcels are considered isolated,
confined, and/or poorly situated, The Study Area in general lacks spatial identity
caused somewhat by poor access, The Chula Vista Local Coastal Program
explains the limited physical and public access to Chula Vista's shoreline, The
lack of adequate access is due, in part, to the types of land uses which currently
occur along the shoreline, The Rohr facilities, boat yard, SDG&E property, the
National Wildlife Refuge, and undeveloped property all have resulted in very
limited direct public access opportunities, Maps 5 & 6 help illustrate plans
contemplated to improve access and create a more visible and identifiable area,
The mix of land uses also presents a barrier to economic development. The
Study Area contains uses generally considered incompatible, The Study Area is
characterized as an industrial area, but contains recreational uses, commercial
uses, and an RV park, The presence of the heavy industrial Rohr facility
cJ -/3 KEYSER MARSTON ASSOCIATES INc.
MAP 3
ILLUSTRATION OF BLIGHTING CONDITIONS
SOUTH BAYFRONT STUDY AREA
CHULA VISTA
The Port of San Diego ..
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solete Rohr industrial facilities
SAIl DIEGO BAY
Limited access and visibility to shoreline .
due to land use barriers
Poor parcel configuration
Source: Keyser Marston Associates, Inc.
Redevelopment Analysis c2-(cj
Chule VIsta Redevelopment Agency
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Source: Chula VIsta Local Coastal Program - Land Use Plan, Approved October 13, 1992
Rodovolopment Analysis c:2-/~
Chula VISta Redevelopment Agency
- .
MAP 6
FORM AND APPEARANCE
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Source: Chula VIsta Local Coastal Program - Land Use Plan. Approved October 13, 1992
Redevelopment Analysis
ChuJe VIsta Redevelopment Agency c:;). - f f
TABLE 1
CHULA VISTA TIDELANDS PROPERTY DATA
CHULA VISTA TIDELANDS
PROPERTY DATA
PARCa. TENANT I LOCAitCN I US;: 1 I SIZE (s.f.) I
1 Vacant I G St./Marina ~arkwav I 1M I 72.736
2 Vacant G St./Marina ~arkwav I 1M 201,439
3 SoUthwest Marine dba I G St,/Ouay Ave, 11M I 411.758 L.
SoUth Bay Boat Yard 371.344 W.
4 Flohr Industries I Marina ~arkway I IA I 1.361.817
5 Vacant Marina ~arkwav lisP 652,819
8 Vacant G St,/Marina ~ar1<wav I IA 471,496
7 Vacant I G St,/Sandg;ger Way I IA I 140.358 I
S Valle Dorado. LId, I Sandg;ger Way I fA 345.713 I
9 Vacant G St,lSandgiger Way I 1M I 320.776 I
10 Vacant G St,/Ouav Ave, I 1M 84.847 I
11. Chula VIsta FlV Park 460 Sandgiger Way I CR 578.929
11b Chula VlSta'Marina 5S0 Marina ~arkwav I CR I 223,599 L, I
4.881 w.
12 Calif, Yacht Marina 640 Marina ~arltwav I CR 164.978 L. I
625,523 w,
13 Vacant Marina Way I CR 91 ,~6 I
14 Vacant I Marina Way I CR 170,899
15 W, and J. Haus I 200 Marina ~arkwav I ~R 471 I.
1MASÌ'ER PtAN US!! OeSIGNAitCN
1M . IndUStriallMarin..related
IA . IndUStrial/Aviation-related
lap . Indumal/Business Pari<
CR . Comm81'ciaURecreationa
PR . Public Recreationll'ark
s.. R- ROt. Se""'"
S.D,U.P,D. on ROWfH SI..
Prggeny Cegamnent
November 1:3. 1995
Source: Redevelopment Agency of the City or Chula VIsta
Redevelopment Analysis
ChuJa VIsta Redevelopment Agency ~ - ( ?
TABLE 2
SOUTH BAYFRONT DEVELOPMENT OPPORTUNITIES
SOUTII BA'YF1tONT DEVnOPMEN"I' OPPORTrJN1T1E:t
NORTHE~ SECTION A clus
Port'District Vacant Land 29.56
POrt District Vacant Buildings 7.9
RV P3rk 1:;.3
Southwest Marine (1and area only) 9.45
RDA Properties (for sale to Port District) -U..
TOTAL Aou:AGE AVAILABLE 65.11
.. ":,
SOUTBERN' SECTION AClUS
Port District Vacant Land 21.2
Rohr Open Sto~ (south of H Street e:aension) .u"Q:
TOTAL Aou:AGE AVAILABLE :34.2
TOTAL. NORTII AND SOUTH SECTIONS 99-'
TOTAL. MID BAn'RONT 104.01
. .
". .'
.
'Includes 5.S = of RDA propertY at foot of F Street and 7,2 = of RDA property
at I-5 and E Stt=t.
Source: Redevelopment Agency of the City of Chula Vista
Redevelopment Analysis D)-Ie¿
Chula Vista Redevelopment Agency
- ,
Page 7
discourages non-industrial types of uses, particularly visitor commercial types of
development.
Economic Blight Conditions
Because little development has occurred and land remains vacant, it is
suspected that the Study Area suffers from depreciated or stagnant property
values, (This should be borne out by further discussions with the Port
concerning their leasing efforts.) Also, investment is considered impaired
because of the physical constraints to development.
The most notable condition that would help to qualify the area as blighted based
on economic conditions would be the presence of hazardous wastes, The Study
Area possibly contains hazardous wastes, Although no studies seen to have
been conducted, the historical use of the Rohr facility for heavy manufacturing,
has likely produced hazards wastes that may have migrated to surrounding
properties,
The hazardous waste issue is a sensitive one because of liability and the
importance of Rohr Industries, However, this condition could be a very strong
indicator of blight and evidence of the need for redevelopment because of the
inability of the private sector/public sector to remedy the condition,
The 1994-95 Annual Report document of the Port District mentions that many
users on Port District property have generated waste discharges either on the
land adjacent to San Diego Bay or into the waters of the bay which threaten the
bay environment. The Annual Report document further describes the increasing
responsibility of the Port District for environmental remediation and the resulting
financial impact,
To determine the level of environmental contamination, a Phase I Environmental
Assessment or similar study should be conducted, The potential risks of
hazardous waste contamination impairs property values, and inhibits
development due to concerns of investors regarding liability and the high cost
associated with assessment and remediation.
The Study Area could also be characterized by high business vacancy,
excessive vacant lots and low lease rates, Only one or two vacant buildings are
located within the Study Area, however, because this vacant property is a
prominent feature and has suffered from long term vacancy, its impact is
c;2-¿)o
KEYSER MARSTON ASSOCIATES INc.
Page 8
noteworthy, The Study Area is also characterized by a large number of vacant
parcels within an urban area served by utilities, These parcels have remained
undeveloped and unleased due to a wide range of factors, some of which are
beyond the ability of the private and public sector to overcome (such as
circulation problems, limited visibility, and land use incompatibilities), According
to a real estate report commissioned by the Port District, the Study Area has
lower than average lease rates which could indicate a poor investment
environment.
Approach To Blight Analysis
Because the Study Area is small, with only approximately 15 properties, Keyser
Marston Associates would recommend that the blight analysis focus on both the
problems related to individual parcels and the area as a whole, A map similar to
Map 3 attached to the Memorandum would help to illustrate the blighting
influences. Additionally, a discussion of the problems would help one
understand the generally complex nature of the problems, particularly those
problems centered around the diversity of land uses,
Real estate information should be examined to provide an indication of how the
area is performing in the local and regional economy. Assessed values should
also be analyzed to determine what type of trend has been occurring in the area,
Other valuable information to be gather and analyzed include comparable
leasing rates, comparable building activity, vacancy levels, and other similar
data to better understand the economic environment of the Study Area,
Blight Perception
The blight argument outlined in this Memorandum is based on the existence and
influence of major impediments to development. The common perception of
blight is of deteriorated structures and badly maintained properties, Because
these characteristics do not widely apply to the Study Area, it will be important to
describe how the area meets the leaal test of blight. Appropriate and thorough
analysis of blighting conditions will be necessary as part of the process of
including this area in a redevelopment project to make a publicly convincing, as
well as legal, determination of blight.
c2-é2(
KEYSER MARSTON ASSOCIATES INc.
~.- _._. -.-.- - --.--. ..-
Page 9
PREDOMINATELY URBANIZED AREA
In order for an area to qualify as predominately urbanized, it must contain at
least one of three conditions in accordance with Section 33320.1 of the
Community Redevelopment Law which provides that:
Predominately Urbanized means that not less than 80 percent of the land in the
Project Area:
(1) Has been or is developed for urban uses; or
(2) is characterized by the condition described in paragraph (4) of
subdivision (a) of Section 33031 (parcels or irregular form, shape and
inadequate size under multiple ownership); or
(3) Is an integral part of one or more areas developed for urban uses
which area surrounded or substantially surrounded by parcels which have
been or are developed or urban uses,
The Study Area qualifies as predominately urbanized under (1) and (3) above.
The whole of the Study Area (100%) can be determined to be an urbanized
area, Approximately one-half of the Study Area is developed with urban uses
while the other one-half is considered an integral part of an area developed for
urban uses, The Chura Vista Local Coastal Program provides an indication that
the Study Area is an integral part of the urban area, This Coastal Program is a
plan for the orderly growth, development, redevelopment and conservation of the
Chula Vista Local Coastal Zone, of which the Study Area is one part. The
Program includes development objectives, policies and standards as adopted by
the City of Chula Vista and certified by the California Coastal Commission. The
Bayfront area contains urban uses, such as restaurants, hotels, recreational,
industrial, and offices, The Study Area is near downtown Chula Vista and
serves as an important employment (Rohr Industries) and recreation (marinas,
parks and boat launch) area. Conditions described under (2) above do not
apply to the Study Area since it is under one ownership,
d--dd--
KEYSER MARSTONASSOCtATES INc.
-- -- --....-
MAP7
AERIAL VIEW
Source; Redevelopment Agency of the City of Chula Vista
Redevelopment Analysis d-c23
Chula Vista Redevelopment Agency
-
Page 10
ISSUES RELATED TO THE USE OF REDEVELOPMENT
Proposed Redevelopment Programs, Projects, and Activities
Should the City decide to go forward with the legal process of including the
Study Area in a redevelopment project area, the intent as to the types of
projects, program and activities proposed as part of the redevelopment effort will
have to be determined and presented, What specific project or program would
the City and Redevelopment Agency want to accomplish, and why? A nexus
between the proposed projects, programs, and activities and the eliminate of
blight must be made,
Market and Planning Constraints to Development
The real estate study prepared for the Port District highlighted the inflexibility of
the Port District's leasing policies and real estate practices which reduce the
competitiveness of the available Port District property, The Study also focused
on the policies for the "rate of return" and found that changes in leasing and real
estate policies would generate additional Port District revenue, These policies
and practices can be considered developmenUleasing constraints that can be
lifted without the use of redevelopment.
The Study also highlighted the obsolete land use designations as a major
problem impacting a significant amount of vacant Port District property. A large
amount of vacant Port District property in Chula Vista is designated for aviation
related industries under the Port District Master Plan, This use is considered by
the study to be inappropriate because the market for this type of use is limited,
Portions of the Study Area are also designated for marine related industrial.
Both types of designations limit the amount and type of developmenUleasing
activity, Land use planning restrictions are considered constraints that can be
addressed without the use of redevelopment.
These factors have implications for the determinations under "Part Four" of the
blight test. The question becomes - if land use planning was more closely tied
to market demand, and if Port District leasing and real estate practices were
improved-- would the Study Area redevelop on its own, without the powers and
authorities as provided for in the Community Redevelopment Law? Additional
market analysis and interview with leasing agent representing the Port District
will be required to describe which non-market and non-planning constraints will
require the use of redevelopment authority to overcome,
c:2-~Ý
KEYSER MARSTON ASSOCIATES INc.
-- -- - ---- - --.-.-----
Page 11
Tax Increment Revenue and the Necessity for a Redevelopment Plan
Assuming eminent domain authority would be unnecessary in the Study Area
since the Port District owns and is unable to sell the land, the remaining benefit
for the use of redevelopment is essentially the ability to collect tax increment
revenue to be used to remedy blighting conditions with the project, as amended,
Amending the existing Baytront Redevelopment Plan to add the Study Area
would allow tax increment revenues to be applied to either area, However, the
Study Area should not be added for the sole purpose of spending tax increment
money in the existing Baytront Project Area unless it accomplishes the blight
elimination objectives for the added area, It may be possible to link
improvements to the existing Project Area with blight alleviation in the added
area, to the extent that one area effects the other,
As mentioned above, it will be important to clarify what is the intent of the
Redevelopment Agency. Programs must be determined and there must be a
nexus to the elimination of the identified blighting conditions,
The Redevelopment Plan should be treated as a mechanism by which the City,
the Agency, the Port District, and the tenants can come to an agreement on how
the area should develop, The allocation of tax increment revenues should be
incidental to the Redevelopment Plan,
Potential Developer
If there is currently a development proposal for portions of the Study Area, this
could give the impression that the private sector is able to redevelop on its own,
unless the proposal is infeasible because of a number of physical constraints
mentioned in this Memorandum, for which they should be documented as part of
the blight analysis.
ISSUES RELATING TO THE ROLE OF THE PORT DISTRICT
Cooperation from the Port District
Should the City choose to include the Study Area in a redevelopment project, the
support and cooperation of the Port District is essential. A development
c-J. - ¿;¿ ~-
KEYSER MARSTON ASSOCIATES INc.
Page 12
agreement or cooperation agreement between the Redevelopment Agency of
the City of Chula Vista and the Port District could be drafted that clearly states
the objectives and plans for the redevelopment of the Port District property,
Regardless of any type of agreement, the partnership between the Port District
and the City will need to be described,
land Use Planning
Although the Study Area is located within the City of Chula Vista, the Port
District has land use planning powers over the Study Area since it is entirely
located within its jurisdiction, Representatives of the Port District have made it
clear, in this case, that should a redevelopment plan be adopted for the Port
District property, the Port District is to maintain all land use planning control.
Despite the land use planning authority of the Port District, the South Bayfront as
well as the whole Bayfront area is an important resource to the City of Chula
Vista, Likewise because of the sensitive environmental habitats within the area,
Federal and state agencies, are involved in the land use planning process,
Issues relating to what land use mixes should be permitted in the Study Area will
need to be resolved,
PLAN ADOPTION/AMENDMENT ISSUES
Should the City choose to include the South Bayfront area in a redevelopment
project, for maximum flexibility, the area should be added by amendment to the
existing Bayfront Redevelopment Plan,
An amendment to add territory could also give the Agency the opportunity to
increase time and financial limits of the existing Project Area if necessary, For
such an amendment, the required finding of significant remaining blight could be
made, notably, the continued lack of proper utilization,
c2-d~
KEYSER MARSTON ASSOCIATES INc.
-r" - - _.... ~..._._-
Page 13
OTHER ISSUES
The following list includes other considerations relating to the use of
redevelopment:
. Involvement by other public agencies (including the Federal Fish and Wildlife
Service and the Coastal Commission),
. Optimal land use plan for both the City and the Port District,
. The effect of Rohr Industries.
. The National Wildlife Refuge and other environmental planning issues,
After review and consideration of the opinion and issues presented in this
memorandum, Keyser Marston Associates would be glad to meet with City staff
for discussion,
JA:gbd
Attachment.
96398.CHV
11220,0012
c:2-¿;)7
KEYSER MARSTON ASSOCIATES INc.
_..- _..
:1
CHULA VISTA
Redevelopment Analysis
PHOTO 1 VACANT LAND
PHOTO 2 VACANT LAND
¿;¿-d-~
-- _.-
CHULA VISTA
Redevelopment Analysis
PHOTO 3 ROHR FACILITY
PHOTO 4 VACANT LAND
é}-o¿q
- - -- --, --
CHULA VISTA
Redevelopment Analysis
PHOTO 5 VACANT BUILDING
PHOTO 6 CHULA VISTA MARINA
c:2-~
- - _.- --.
CHULA VISTA
Redevelopment Analysis
PHOTO 7 OBSOLETE ROHR FACILITY
PHOTO 8 VACANT LAND
<::2--31
-.-. _.- -,. - -------
CHULA VISTA
Redevelopment Analysis
PHOTO 9 VACANT lAND: PARCEL 5
PHOTO 10 VACANT LAND: PARCEL 5
ó2-3d.-
-- --- -... - - -..-.-..-
CHULA VISTA
Redevelopment Analysis
PHOTO 11 VACANT LAND: PARCEL 5
c;;2 -33
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CITY OF
CHUlA VISTA
OFFICE OF THE CITY ATTORNEY I
-,------------,._----------
July 19, 1996
VIA FAX 259-9884
Hard copy to follow via U. S. Mail
Jennifer Appel, Esq.
The Law offices of Gregory A. Lutz
1307 Stratford Court
De,l Mar, Ca. 92014
Re: Chula Vista Auto Park--Requested Reference Proceeding
Dear Ms. Appel:
Because of the exceptionally heavy agenda that was before the
Redevelopment Agency Board on July 16, our office was unable to
present your matter to the Agency for its consideration. The next
Redevelopment Agency meeting is scheduled for August 6, 1996.
Giving us a few days to implement Redevelopment Agency direction,
we should be able to have a response to your request for a
reference proceeding by no later no than August 9 at 5:00 p.m. In
order to prevent your need to file an action by the deadline
identified in Jana S. Seegrist's letter to you dated January 5,
1996, I again hereby agree to extend that deadline under Government
Code §945.6 up until August 16, 1996.
Please be advised that this extension does not affect or extend any
other applicable statutes of limitations. I apologize for the
unavoidable delay in responding to your request on this issue.
Please do not hesitate to call me with any questions or comments
you may have with respect to this letter.
Very truly yours,
~
ogi
y A torney
GRG:lgk
cc: Ann Moore, Acting City Attorney
sid Morris, Assistant city Manager
Chris Salomone, Director of Community Development
Fred Kassman, Redevelopment Coordinator
Jana Seegrist, Risk Analyst
c: Iltlappe1.1
276 FOURTH AVENUE' CHULA VISTA' CALIFORNIA 91910 . (619) 691-5037 . FAX (619) 585.5612
1~ ""c...._...
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