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HomeMy WebLinkAboutRDA Packet 2001/05/08 ~{~ -=-=- .. - ":.- -~ ON OF CHUlA VISTA TUESDAY, MAY 8,2001 COUNCIL CHAMBERS 6:00 P.M. PUBLIC SERVICES BUILDING (immediately following the City Council meeting) JOINT MEETING OF THE REDEVELOPMENT AGENCY I CITY COUNCIL OF THE CITY OF CHULA VISTA CALL TO ORDER ROLL CALL Agency/Council Members Davis, Padilla, Rindone, Salas; Chair/Mayor Horton CONSENT CALENDAR The staff recommendations regarding the following item(s) listed under the Consent Calendar will be enacted by the Agency/Council by one motion without discussion uniess an Agency/Council member, a member of the public or City staff requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak Form" available in the lobby and submit it to the Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Action items. Items pulled by the public will be the first items of business. 1. APPROVAL OF MINUTES - Staff recommends the Redevelopment Agency/ City Council approve the minutes of the regular meetings of the Redevelopment Agency and adjourned meetings of the City Council for April 24 and May 1, 2001. ORAL COMMUNICATIONS This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the Redevelopment Agency from taking action on any issues not included on the posted agenda.) If you wish to address the Agency on such a subject, please complete the "Request to Speak Under Oral Communications Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Cierk prior to the meeting. Those who wish to speak, please give your name and address for record purposes and follow up action. PUBLIC HEARING The following itemls) have been advertised and/or posted as public hearings as required by law. if you wish to speak to any item, pi ease fill out the "Request to Speak Form" available in the lobby and submit it to the Redevelopment Agency or the City Clerk prior to the meeting. 2. JOINT REDEVELOPMENT AGENCY / CITY COUNCIL PUBLIC HEARING: TO CONSIDER ADOPTION OF AN URGENCY ORDINANCE AND A NEW ORDINANCE TO PROHIBIT THE ESTABLISHMENT OR EXPANSION OF OUTDOOR STORAGE USES; AND TOLLING THE OPERATION OF EXISTING OUTDOOR STORAGE USES WITHIN THE REDEVELOPMENT PROJECT AREAS [Community Development Director] STAFF RECOMMENDATION: Redevelopment Agency/City Council continue the public hearing to May 29, 2001. 3. a. PUBLIC HEARING: CONSIDERATION OF AN EXTENSION OF AN EXISTING SPECIAL USE PERMIT FOR THE CONTINUATION OF AN AUTO DISMANTLING AND RECYCLING BUSINESS AT 800-834 AND 825 ENERGY WAY-Ecology Auto Wrecking is requesting the continuation of an existing Conditional Use Permit for automotive dismantling and the sale of auto parts, and scrap metal collection, compaction, cutting, shredding in preparation for the scrap market, and other related uses. The Agency approved a 13 year extension on 12/8/92, which moved the expiration date of the permit until 2005. On 1111 0/00, staff received an application for an extension of this permit until 2025. The Planning and Environmental Manager for the Community Development Department has determined that no new environmental impacts that have not been previously addressed will occur and the project is consistent with the previous environmental review. [Community Development Director] (Continued from the meeting of 5/1/01 I b. AGENCY RESOLUTION 1726 APPROVING THE EXTENSION OF THE SPECIAL USE PERMIT SUPO-01-01 UNTIL DECEMBER 31, 2017 FOR ECOLOGY AUTO WRECKING LOCATED AT 800-834 AND 825 ENERGY WAY AND DIRECTING STAFF TO PROCEED WITH AN EVALUATION OF THE POTENTIAL FOR ALTERNATE USES FOR PROPERTIES NOW HOUSING AUTO WRECKERS AND RECYCLERS PER THE DIRECTION OF THE ADOPTED FIVE YEAR IMPLEMENTATION PLAN FOR THE OTAY VALLEY ROAD REDEVELOPMENT PLAN STAFF RECOMMENDATION: Redevelopment Agency adopt the resolution. OTHER BUSINESS 4. DIRECTOR'S REPORT/SI 5. CHAIR/MAYOR REPORT(SI 6. AGENCY/COUNCIL COMMENTS Redevelopment Agency, May 8, 2001 Page 2 ADJOURNMENT The meeting will adjourn to the regular meeting of the Redevelopment Agency on May 15, 2001 at 6:00 p.m., immediately following the City Council meeting in the City Council Chambers. CLOSED SESSION Unless Agency Counsel, the Executive Director, City Councilor the Redevelopment Agency states otherwise at this time, the Agency/Council will discuss and deiiberate on the following item(sl 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, 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. 7. CONFERENCE WITH REAL PROPERTY NEGOTIATOR --Pursuant to Government Code Section 54956.8 a. Property: Assessor Parcel Nos. 568-270-2200; 760-106- 9205 (31,673 sq. ft. at 320 Third Avenue) Negotiating Parties: Redevelopment Agency (Chris Salomone) and CinemaStar/Trigild (Bill Huffman) Under Negotiations: Price and terms for acquisition b. Property: Assessor Parcel No. 568-270-10 (315 Fourth Avenue) Negotiating Parties: City Council (Sid Morris/Chris Salomone) Under Negotiations: Lease terms 8. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION -- Pursuant to Government Code Section 54956.9(a) Agency vs. Rados Bros. [Case No. GIC734557-1J ********* COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT The City of Chula Vista, in complying with the Americans with Disabilities Act IADAI. 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 (61 g) 691-5047 or Telecommunications Devices for the Deaf ITDDI at 1619) 585-5647. California Relay Service is also available for the hearing impaired. Redevelopment Agency, May 8, 2001 Page 3 MINUTES OF ADJOURNED REGULAR MEETINGS OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA April 24, 2001 6:00 p.m. Adjourned Regular Meetings of the City Council and the Redevelopment Agency of the City of Chula Vista were called to order at 7:58 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. ROLL CALL PRESENT: Agency/Councilmembers Davis, Padilla, Rindone, Salas and Chair/Mayor Horton ABSENT: Agency/Councilmembers: None ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/City Attorney Kaheny, Deputy City Clerk Norris CONSENT CALENDAR 1. APPROVAL OF MINUTES of April 3 and April 10, 2001. Staff recommendation: The Redevelopment Agency/City Council approve the minutes. 2. AGENCY RESOLUTION NO. 1719, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A CHANGE ORDER TO AN AGREEMENT WITH URS CORPORATION FOR THE CLEAN UP OF A CONTAMINATED HOLDING SITE LOCATED AT 4075 MAIN STREET WITHIN THE OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA, AND APPROPRIATING $208,336 IN UNANTICIPATED RECEIPTS FROM THE SHINOHARA ESTATE AND $4,804 FROM THE UNAPPROPRIATED FUND BALANCE OF THE OTAY VALLEY ROAD PROJECT AREA TO FUND THE PROJECT The Agency is interested in developing a 1.6-acre site in the Otay Valley Road Redevelopment Area as an expansion to the Auto Park to generate additional jobs and revenue in an area currently blighted. The site is unsuitable for development due to its use as a stockpile for contaminated bum-ash waste. Owned by the Shinohara Estate, the site was estimated to contain 34,000 cubic yards of contaminated material. During the clean up operation, substantially more sub-surface contamination was discovered than had been anticipated by previous fieldwork. The resolution appropriates funds, at a per- unit rate, to pay for the clean up of the additional burn ash discovered. (Continued from the meeting of 4/10/01 - Community Development Director) Staff recommendation: The Redevelopment Agency adopt the resolution. / - l CONSENT CALENDAR (Continued) 3. AGENCY RESOLUTION 1721, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING WAIVER OF THE TOWN CENTRE FINE ARTS FEE FOR THE GATEWAY OFFICE BUILDING PROJECT On June 6, 2000, the Agency granted a Disposition and Development Agreement (DDA) for development of the Gateway Chula Vista project. A provision of the DDA requires that the Agency make a detennination that the developer has satisfied the conditions precedent to granting a waiver of the Fine Arts fee. (Community Development Director) Staff recommendation: The Redevelopment Agency adopt the resolution. ACTION: Agency/Councilmember Rindone moved to approve staff recommendations and offered Consent Calendar Items # I through #3, headings read, texts waived. The motion carried 5-0. ORAL COMMUNICATIONS There were none. PUBLIC HEARING 4. a. PUBLIC HEARING TO CONSIDER APPROVAL OF SPECIAL USE PERMIT TCI- 01-01 CONVERTING OFFICE SPACE TO RESIDENTIAL AT 208 THIRD AVENUE The applicant requested a Special Use Pennit to allow the conversion of office space at 208 Third Avenue. The project is located within the Town Centre I Redevelopment Project Area and would convert two office units from office use to residential. The pennit request requires public hearings before the Town Centre Project Area Committee and the Redevelopment Agency. On March 14, 2001, the Town Centre Project Area Committee recommended approval. (Community Development Director) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Chair/Mayor Horton opened the public hearing. With no members of the public wishing to speak, she then closed the hearing. Agencymember/Deputy Mayor Davis expressed concern as to whether or not the existence of future businesses adjacent to the property would interfere with the residential use. Redevelopment Manager Estes replied that the proposed buyer indicated that he would not oppose any kind of entertaimnent uses. Deputy Mayor Davis asked staff to acquire a letter from the buyer stating that he would not object to the possibility of mixed uses in the area and also to include the stipulation as a provision of the Special Use Pennit. Page 2 Council/RDA Minutes /- <Â 04/24/2001 PUBLIC HEARINGS (Continued) ACTION: Agencymember/Deputy Mayor Davis moved to amend the Special Use Pennit as specified and offered Agency Resolution No. 1722, heading read, text waived AGENCY RESOLUTION 1722, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA GRANTING SPECIAL LAND USE PERMIT SUP #TCI-02-01 FOR AN OFFICE TO RESIDENTIAL CONVERSION AT 208 THIRD AVENUE The motion carried 5-0. ACTION ITEMS 5. AGENCY RESOLUTION 1723, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE COMMUNITY HOUSING IMPROVEMENT PROGRAM (CHIP) LOAN INTERNAL PROGRAM MANUAL On February I, 1977, Council approved the implementation of a Community Housing Improvement Program (CHIP) to provide low interest loans and grants for low -income residents to rehabilitate their homes. The CHIP loan program was infonnally discontinued in 1997 due to staffing constraints and overall workload issues; however, the CHIP grant program continued to provide assistance to both single-family homes and mobilehomes. An additional staff person has been hired to administer the CHIP program and update the loan program. The CHIP Loan Internal Program Manual will provide written guidance for staff and the CHIP Committee to follow in qualifying applicants and enforcing standards for the program. (Community Development Director) Housing Coordinator Arroyo explained that the objective of the manual is to reactivate the CHIP program as a component of revitalization efforts primarily focused on the western side of the City. Community Development Specialist Do outlined the components of the manual, stating that it would resolve important policy issues. ACTION: Agencymember/Deputy Mayor Davis offered Agency Resolution No. 1723, heading read, text waived. The motion carried 5-0. OTHER BUSINESS 6. EXECUTIVE DIRECTOR'S REPORTS There were none. 7. CHAIR/MA YOR REPORTS There were none. 8. AGENCY/COUNCIL COMMENTS There were none. Page 3 Council/RDA Minutes (- -3 04/24/2001 ADJOURNMENT At 9:15 p.m., Chair/Mayor Horton adjourned the Redevelopment Agency meeting to the regularly scheduled meeting of the Redevelopment Agency on May 1, 2001 at 4:00 p.m., immediately following the City Council meeting, in the City Council Chambers. Respectfully submitted, ~ Lorraine Beunett, Deputy City Clerk Page 4 CouncillRDA Minutes ! - <! 04/24/2001 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA May 1,2001 4:00 p.m. An Adjourned Regular Meeting of the City Council and a Regular Meeting of the Redevelopment Agency of the City of Chula Vista were called to order at 4:55 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Agency/Councilmembers: Davis, Padilla, Rindone, Salas and Chair/Mayor Horton ABSENT: Agency/Councilmembers: None ALSO PRESENT: Executive Director/City Manager Rowlands, Senior Assistant City Attorney Moore, City Clerk Bigelow CONSENT CALENDAR 1. REDEVELOPMENT AGENCY RESOLUTION NO. 1724 AND CITY COUNCIL RESOLUTION NO. 2001-129, AUTHORIZING THE CITY MANAGERlEXECUTIVE DIRECTOR TO SIGN PETITION PROPOSING THE ESTABLISHMENT OF A DOWNTOWN PROPERTY-BASED BUSINESS IMPROVEMENT DISTRICT (PBID) The proposed PBID is an assessment tool that will allow property and business owners to better manage the Third Avenue downtown district through a self-imposed annual assessment. The PBID will strengthen downtown's competitiveness by creating a cleaner, safer and more inviting destination through professional management. The PBID also establishes private sector control and accountability to carry out enhanced services and will help capitalize on the downtown's new momentum of development represented by Gateway Chula Vista, the new Police facility and Civic Center expansion, and other significant new redevelopment activities. (Community Development Director) Staff recommendation: Redevelopment Agency and City Council adopt the resolution. 2. AGENCY RESOLUTION 1725, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AMENDING THE OTAY VALLEY ROAD REDEVELOPMENT PROJECT PROCEDURES MANUAL SECTION III B (RULES AND REGULATIONS FOR THE FILING AND PROCESSING OF PLANS AND PROPOSALS FOR THE REDEVELOPMENT OF THE OT A Y V ALLEY ROAD PROJECT AREA, MAJOR PROJECTS) TO ADD SUB-PARAGRAPH 3, PRECISE PLAN PROJECTS, AND AMENDING THE OT A Y V ALLEY ROAD PROJECT AREA IMPLEMENTATION PLAN/DESIGN MANUAL ADDENDUM TO ADD SECTION 5.3(5), ALLOWING FOR THE ADMINISTRATIVE APPROVAL OF DESIGNS AND OWNER PARTICIPATION AGREEMENTS WITHIN AGENCY APPROVED PRECISE PLAN DEVELOPMENTS /- s- CONSENT CALENDAR (Continued) In May 1985, the Agency adopted a Projects Procedure Manual and an Implementation Plan/Design Manual Addendum as support documents to the Otay Valley Road Redevelopment Plan. These documents describe the processes the Agency Board should follow and staff should use in processing development plans that are presented. It was meant to be responsive to changing circumstances and to be amended as necessary to facilitate the smooth and efficient processing of proposals. To allow for ample Agency control of the project but facilitate the streamlined processing schedule desired by the developer, the Planning and Community Development Departments request that the Agency invoke its authority to delegate certain matters to staff; and, therefore, that following Design Review, Planning Commission and Agency approval of the Precise Plan, administrative approvals be allowed for the review of each development phase as long as it is consistent with the overall Precise Plan approved for the development. (Community Development Director) Staff recommendation: Redevelopment Agency adopt the resolution. ACTION: Mayor Horton moved to approve staff recommendations and offered Consent Calendar Items #1 and #2, headings read, texts waived. The motion carried 5-0. ORAL COMMUNICATIONS There were none. PUBLIC HEARING 3. a. PUBLIC HEARING FOR CONSIDERATION OF AN EXTENSION OF AN EXISTING SPECIAL USE PERMIT FOR THE CONTINUATION OF AN AUTO DISMANTLING AND RECYCLING BUSINESS AT 800-834 AND 825 ENERGY WAY Ecology Auto Wrecking is requesting the continuation of an existing Conditional Use Pennit for automotive dismantling and the sale of auto parts, and scrap metal collection, compaction, cutting, shredding in preparation for the scrap market, and other related uses. The Agency approved a 13-year extension on 12/8/92, which moved the expiration date of the pennit until 2005. On 11110/00, staff received an application for an extension of this pennit until 2025. The Plauning and Environmental Manager for the Community Development Department has detennined that no new environmental impacts that have not been previously addressed will occur and the project is consistent with the previous environmental review. (Community Development Director) b. AGENCY RESOLUTION NO. 1726 APPROVING THE EXTENSION OF THE SPECIAL USE PERMIT SUPO-OI-OI UNTIL DECEMBER 31, 2017 FOR ECOLOGY AUTO WRECKING LOCATED AT 800-834 AND 825 ENERGY WAY AND DIRECTING STAFF TO PROCEED WITH AN EV ALUA TION OF THE POTENTIAL FOR ALTERNATE USES FOR PROPERTIES NOW HOUSING AUTO WRECKERS AND RECYCLERS PER THE DIRECTION OF THE ADOPTED FIVE YEAR IMPLEMENTATION PLAN FOR THE OTAY VALLEY ROAD REDEVELOPMENT PLAN Page 2 Council/RDA Minutes (- ro 05/01/2001 PUBLIC HEARING (Continued) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Chair/Mayor Horton opened the public hearing and asked if anyone from the audience wished to speak. There was no response. ACTION: Mayor Horton moved to continue the hearing to May 8, 200 I. The motion carried 5-0. OTHER BUSINESS 4. EXECUTIVE DIRECTOR'S REPORTS There were none. 5. CHAIR/MA YOR REPORTS There were none. 6. AGENCY/COUNCIL COMMENTS There were none. ADJOURNMENT At 5:01 p.m., Chair/Mayor Horton adjourned the meeting to an Adjourned Regular Meeting of the Redevelopment Agency on May 8, 2001 at 6:00 p.m., immediately following the City Council meeting, in the City Council Chambers. Respectfully submitted, ~ ÓJJ ~' \ì ....L&.- Susan Bigelow, CMC/AAE, City Clerk Page 3 CouncillRDA Minutes 1- 7 05/01/2001 JOINT REDEVELOPMENT AGENCY / CITY COUNCIL AGENDA STATEMENT ITEM NO.: d- MEETING DATE: 05/08/01 ITEM TITLE: A PUBLIC HEARING TO CONSIDER ADOPTION OF AN URGENCY ORDINANCE AND A NEW ORDINANCE TO PROHIBIT THE ESTABLISHMENT OR EXPANSION OF OUTDOOR STORAGE USES; AND TOLLING THE OPERATION OF EXISTING OUTDOOR STORAGE USES WITHIN THE REDEVELOPMENT PROJECT AREAS SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR U} f~ ~ REVIEWED BY: CITY MANAGER Ç1, ~ 4/5TH5 VOTE: YE5D NO0 Staff recommends that the Redevelopment Agency/City Council continue the public hearing to May 29, 2001. REVISED REDEVELOPMENT AGENCY AGENDA STATEMENT ITEM NO.: ..3 MEETING DATE: 5/08/01 ITEM TITLE: PUBLIC HEARING: CONSIDERATION OF AN EXTENSION OF AN EXISTING SPECIAL USE PERMIT FOR THE CONTINUATION OF AN AUTO DISMANTLING AND RECYCLING BUSINESS AT 800-834 AND 825 ENERGY WAY RESOLUTION APPROVING THE EXTENSION OF THE SPECIAL USE PERMIT SUPO-01-01 UNTIL DECEMBER 31, 2017 FOR ECOLOGY AUTO WRECKING LOCATED AT 800-834 AND 825 ENERGY WAY SUBMITTED BY: COMMUNITY DEVELOP~ENT DIRECTOR ~Qì ~ REVIEWED BY: EXECUTIVE DIRECTOR ~fi'l)IV < 4/5THs VOTE: YES c=J NO ŒJ BACKGROUND Ecology Auto Wrecking is requesting the continuation of an existing use, Conditional Use Permit #PCC-73-27, effective date December 12, 1973, for automotive dismantling and the sale of auto ports, and scrap metal collection, compoction, cutting, shredding in preparation for the scrap market, and other related uses. The project was approved by the Redevelopment Agency for a thirteen-year extension on December 8, 1992, which moved the expiration dote of the Permit until 2005. On November 10, 2000 stoff received an applicotion for on extension of this permit until 2025. The Plonning and Environmental Manager for the Community Development Department has determined that no new environmental impocts that have not been previously oddressed will occur, ond the proiect is consistent with the previous environmental review. RECOMMENDATION That the Agency adopt the Resolution approving the proposed Special Use Permit Extension in accordance with the findings and subject to the conditions contained therein. BOARDS/COMMISSIONS RECOMMENDATION On April 25, 2001, the Planning Commission held a public hearing and, after receiving public testimony and stoff's report and recommendation, voted to recommend denial (7-0) of the proposed Speciol Use Permit Extension bosed on the inconsistency of a long-term extension of the use with the characterization of the use in the Otay Volley Road plonning documents as a "transitionol use"; the application for on extension was also considered premature ot this time due ..3 -I PAGE 2, ITEM NO.: 3 MEETING DATE: 5/08/01 to the Implementation Plan's requirement of an evaluation of alternate uses for properties now housing auto wreckers. (The Planning Commission minutes for April 25, 2001 regarding this item will be delivered under separate cover on Monday, May 7, 2001.) DISCUSSION 1. Site and Project Characteristics The proposed project is an extension of the existing Special Use Permit for the existing automotive recycling facilities located at 800-834 and 825 Energy Way, doing business as Ecology Auto Wrecking, Inc.. The site's discretionory history for this use goes bock to Conditional Use Permit # PCC -73-27, effective date December 12, 1973, which was extended at the direction of a Settlement Agreement relating to the Otay Valley Road widening, entered into by the City of Chulo Vista, the Redevelopment Agency, and the applicont, on December 8, 1992 for a period of 13 years until 2005. Under the terms of the Settlement Agreement the City of Chula Visto wos to issue 0 Special Use Permit (SUP) conditioned only by code required off street parking; landscape planting and irrigation; and fencing and other appropriate comparable cost screening measures to ameliorate adverse visual impacts. The Agreement further states that the applicant is not required to deviate substantially from the plans previously submitted, reviewed, and recommended for approval. The Settlement Agreement contemplates (but does not require) the possible continuation of this use on the property until December 31,2017. If a permit extension is denied by the City during this period, the applicant would have the right to rescind the agreement and recommence its original litigation. Applicant's only remedy would be to void its obligation to poy ony remaining assessments for its shore of road improvements. The net cost to the City for this remedy would be approximotely $22,000. 2. General Plan. Zonina. and land Use GENERAL PLAN ZONING CURRENT LAND USE Site: Research and Otoy Valley Rood Redevelopment Auto Recycling Limited Industrial (OVR) IP (Industrial Precise Pion) North: Open Spoce S80 Otay Disposol Site South: Research and OVR/IP Vocant limited Industrial East: Research and OVR/IP Construction Residue Limited Industrial Recycling/Vehicle Auctions West: Research and OVR/IP Auto Recycling/Contractors Yard Limited Industrial ..3-,;;¿ PAGE 3, ITEM NO.: 3 MEETING DATE: 5/08/01 3. Proposal No additionol physicol construction activities are proposed at this time. Applicont is requesting on extension of their existing Special Use Permit from 2005 until December 12, 2025. 4. Analysis The benefits of outo recycling of end life vehicles (ELVs) is monifested in obvious cost sovings in recycled parts, energy conservation, parts availability, reduction in abandoned vehicles and land filling, row material supply, and reduced insurance rates via reducing costs of repairs and providing a market for totaled vehicles. In addition, Ecology Auto is also an approved location as an authorized State of California and City of Chula Vista oil recycling center. The administration of the "Old Vehicle Buy Back program" for the County of San Diego/Air Pollution Control District occurs here. Annual review by City staff (Community Development and Code Enforcement performed a compliance inspection on May 24, 2000), as well os a complefe inspection of the site as part of this permit, indicates this operotion sets the standard locally for this use for stormwoter filtration, fire suppression measures, os well as hozardous waste extraction, and storage and handling of vehicles. As this permit is an extension of an existing permit that has a history of over 25 years, the project IS and has been supported by the Chula Vista General Plan, the Otay Valley Road Redevelopment Plan, and the City's Zoning Ordinance. It is recognized in the implementation plan that auto recycling is a necessory ond beneficial land use for a region. As discussed above, the existing Settlement Agreement relating to uses on this property contemplates (but does not require) possible continued auto wrecking uses on this site until December 31,2017. Onaoina Analysis Reaardina Desirability of Continued Outdoor Storaae Uses in the Area. In order to ploce this project in the larger lond use context for the area, the Agency should be aware of the following matters. The five-year implementation plan for the Otay Valley Road Redevelopment Project Area calls for an evaluation of the potential for alternate uses for properties now housing auto wreckers and recyclers prior to the consideration of SUP extensions for those uses. The majority of the SUP's will expire between 2004-2006. The Agency's goal is to determine whether a portion or all of the properties in this area can be redeveloped to 0 higher and better use more consistent with the goals of the project area to produce an office/light industrial park. The General Plan and Zoning for this area is Research and limited Industrial. A feasibility study would include an analysis of the demand for and location of existing auto wreckers/recyclers, perhaps to include a performance standard based on population/demographics, any environmentol remediotion needed to redevelop the area to light industriol uses and, finolly, the market ond likely absorption rote in attracting light industriol uses to the area. .,3-3 PAGE 4, ITEM NO.: .3 MEETING DATE: 5/08/01 Staff believes now is the appropriate time to conduct the study, since this permit is the firm application for extension of the Special Use Permits issued in fhe area, and while stoff presently recognizes the need for at least one recycler in the area, such a study may provide us with the basis for further discretion during consideration of future extensions. Additionally, the information provided by the study will provide valuable direction for the Generol Plan Update. To allow this study to occur without having to consider multiple untimely permit extension or new use applications, stoff will be bringing forward a "Tolling ordinonce" to the City/Agency on Moy 8. This ordinonce will be proposed for odoption on on urgency bosis. It is intended to preclude the necessity of consideration of similar discretionary permits prior to the study's completion. Staff's Recommendation Applicanfs request for extension comes ot on awkward time in the midst of a pending analysis designed to determine whether or not to transition auto wrecking and similar uses out of this developing area. The Planning Commission's recommendation to deny the permit reflects this tension. Stoff, nonetheless, recommends opprovol of the request (but only until December 30, 2017 not the applicant's 2025 request). Stoff's recommendation is based on applicant's record of business operation in the City, their compliance with terms of the existing permit, and the value of the proposed service to the region. At least some level of high quolity auto wrecking activity in the oreo is appropriate. Furthermore, applicont hos agreed to further condition their operotions to mandate their high quality of operations, and to indemnify the City against any liability resulting from their operations. In lioht of the circumstances described obove as well as the unusual nature of the existina Settlement Aareement staff thouaht it would be imoortant to indicate that althouah the aoolicant has reauested a 20-vear extension ond staff has recommended a 12-vear extension the Aaencv does have the ootion to aoorove a shorter-term extension Anv lenath extension could also be structured to include renewal ootions with soecified conditions for renewal If the Aaencv were to denv the extension reauest such a decision would need to be suooorted bv aoorooriate findinos in the record FISCAL IMPACT The extension causes no chonges to revenues now realized by the City/Agency because no new operations, equipment or construction are proposed. However, the upcoming study will analyze the fiscal impact of redevelopment to light industrial uses and these findings may be useful in assessing future extension requests. ATTACHMENTS 1. Location Mop showing Ecology Auto wrecking sites and parcels offected by the Settlement Agreement J:\COMMDEV\STAFF.REP\O5-01-01\ecology rdoos.doc ,3-c.J 5/8/01 RDA ITEM #3 §.{~ Community Development Department INFOØ.. .ITION II C,ty Of Chula V,.ta ~ - 276 Fourth Avenue ~ ChulaVista.Ca91910 0 CHUlAVICTA 619.691.5047.-619.476.5310 Fax MEM "I' cvcomdev@cl.chula-vlsta.ca.us TO: The Honorable Mayor and Councilmembers VIA: David D. Rowlands, City Manager FROM: Chris Salomone, Community Development Director l.J:}~ C,~ DATE: May 7,2001 RE: Excerpt of Draft Planning Commission Minutes - Ecology Auto Wrecking As indicated in the staff report for the Ecology Auto Wrecking Special Use Permit item on the May 8th Agency Agenda, attached are the draft minutes from the Planning Commission meeting of April 25th. The excerpt was not available at the time the packets were delivered on Friday. Please be advised that these are not the official minutes of the item as they have not been presented for their review and approval. Excerpt of Draft Minutes from Planning Commission Meeting Held on Wednesday, April 25, 2001 3. PUBLIC HEARING: SUPS-Ol-Ol¡ Consideration of an extension of an existing Special Use Permit for the Continuation of an Auto Dismantling and Recycling Business at 800-834 and 825 Energy Way and Resolution - Recommending that the Redevelopment Agency Board approve the proposed Special Use Penn it extension in accordance with the attached draft Agency Resolution based on the findings and subject to the conditions contained therein. Background: Brian Hunter, Planning and Environmental Manager, presented the Commissioners with additional documentation from Ecology Auto Parts. Chair Thomas stated that they would not have the time to read the document at this meeting and that it would only be accepted under submission as part of the minutes. Staff stated the document contained testimonials of the good work the applicant had performed in the community and throughout Southern California. Mr. Hunter reported the project is located at 800-834 and 825 Energy Way. The proposal consists of an extension of the existing Special Use Permit for the existing automotive recycling facilities doing business as Ecology Auto Wrecking, Inc. The original Special Use Permit dated December 12, 1973 was extended at the direction of a settlement agreement relating to the Otay Valley Road widening, entered into by both the Redevelopment Agency and the applicant, on December 8, 1992 for a period of 13 years until 2005. Under terms of the Settlement Agreement the City of Chula Vista was to issue a Special Use Permit (SUP) conditioned to require off street parking; landscape planting and irrigation; and fencing and other appropriate screening measures to ameliorate adverse visual impacts. The site has been visited on a regular basis in order see if they are complying with the conditions. The applicant has been in conformance. The overall benefits of the auto recycling business is the recycling of end of life vehicles which manifest cost savings in recycled parts, energy conservation, parts availability, reduction in abandoned vehicles and land filling. In addition, Ecology Auto is also an approved location as an authorized State of California and City of Chula Vista oil-recycling center. The administration of the "Old Vehicle Buy Back program" for the County of San Diego/Air Pollution Control District occurs there. Annual reviews indicate this operation set the standard locally for this use for stormwater filtration, fire suppression measures, as well as hazardous waste extraction, and storage and handling of vehicles. As this permit is an extension of an existing permit that has a history of over 25 years, the project is and has been supported by the Chula Vista General Plan, the Otay Valley Road Redevelopment Plan, and the City's Zoning Ordinance. The settlement agreement runs until December 31,2017 and staff supports an extension to this date rather than the 20 years the applicant originally requested. The reason the applicant has requested an extension of 20 years is they are in the process of purchasing the land on the south side of Energy Way and their loan has a maturity of 20 years. The existing settlement agreement further delineates the City of Chula Vista's responsibility and limits in this area. Community Development staff would like the Planning Commission to Planning Commission Meeting-Draft Minutes April 25, 2001 consider, in keeping with the project area goal of eliminating visual blight due to incompatible uses, staff's desire to conduct a study of Energy Way uses during the next several months. The five-year implementation plan for the Otay Valley Road Redevelopment Project Area calls for an evaluation of the potential for alternate uses for properties now housing auto wreckers and recyclers prior to the consideration of the SUP extensions for those uses. Commissioner O'Neill stated that in the recent past, the Commission, along with staffs recommendation, voted to deny the request to allow a batch plant in this area. The rationale was that the use was incompatible with the envisioned Otay Valley Redevelopment Area Implementation Plan. At the time, staff indicated that the City's direction was to eventually phase out the auto recycling businesses and not renew the permits when they expired. Therefore, he would like further explanation as to how does staff justify extending this permit, and at the same time deny other recyclers extensions on their permits. Brian Hunter responded that the legal settlement itself is a separate document and does not cover everything in that area. It does cover three or four separate properties. As such we have a different legal requirement with other existing permits. All of the permits, with the exception of one, expire between 2004 and 2006 and we expect them to come forward with a request for an extension on their permit. Another means to evaluate these permits would be solely on a performance standard, utilizing Ecology Auto as the standard by which to measure the rest. Staff recommendation: That the Planning Commission approve Resolution recommending that the Redevelopment Agency approve the proposed Special Use Permit Extension in accordance with the attached draft Redevelopment Agency approve the proposed Special Use Permit Extension in accordance with the attached draft Redevelopment Agency Board Resolution based on the findings and subject to the conditions contained therein. COMMISSION DISCUSSION: Commissioner Hall stated that the City pretty much knows in what direction they want to go in terms of encouraging light industrial businesses in this redevelopment area and he expressed concern with staff's position in even entertaining the thought of extending these permits beyond the year 2004 or 2006. Glenn Goggins stated that the Settlement Agreement does not prohibit the Commission, provided the appropriate findings are made, from denying a permit during this period of time. There are consequences to a denial, which would trigger a rescission right on the part of the parties to the Settlement Agreement whereby assuming certain conditions are met and they prevail in a lawsuit that they could reinstate, they might be in a position of having no obligation to make payments under the Assessment District Formation, which was the original nature of their protest. Therefore, there could be financial consequences to the City in that essentially it would become a "buy-out" of their obligation to pay assessment district fees. There would be consequences to them in that they wouldn't have their Special Use Permit any longer and could be grandfathered or otherwise affected by legitimate Land Use Decisions. The Settlement Agreements do not prevent the Commission from doing something other than what they are proposing or what staff is proposing to approve their agreement for the period of time. If the Commission were to approve a permit application to 2017 in accordance with staff's recommendation, there is no doubt that it would make it difficult with respect to that particular 2 Planning Commission Meeting-Draft Minutes April 25, 2001 operator to phase or amortize out their operation. They would have a valid permit for that period of time and you couldn't just declare that permit void. Commissioner Hall stated that the City would be establishing precedence that could in essence then allow others to come forward and say that they too want to be granted an extension like Ecology Auto to the year 2017. Glenn Googins stated that it does create an awkward situation, but from a legal standpoint each permit is viewed independently and you can make findings for one applicant and have a legitimate basis for not being able to make those findings for another applicant. Certain kinds of uses are found valuable and this use has been identified by the Commission as being a valuable use, however, certain kinds of uses are only valuable in certain quantities as well. Certainly you want to be fair and equitable, but there is also a basis for looking at each individual proposal on its own merit. You can also certainly approve the application for a duration less than the proposal and staff has already recommended a period of less than 20 years as was the original request from the applicant. Commissioner Willett stated that he has visited all of the auto wrecking facilities and he would recommend that Code Enforcement visit these facilities and have them come up to the same standards as Ecology Auto, especially in their filtration plants, the hazardous material, the fire protection system and access to the facilities. Additionally the aesthetic improvements that Ecology Auto has implemented is to be commended. Commissioner Thomas stated that he has no problem with the excellence and state-of-the-art facility that Ecology Auto is running, but his concern is that if we're waiting for a report in 2 or 3 years, and a dismantling facilities does not happen to be one of the identified highest and best use for that area, then we've tied our hand and can't do anything about it. Public Hearing Opened. Joe Budkin, 2827 Adams Avenue, San Diego, CA representing Ecology Auto stated that the rack record that Ecology Auto has established as a leader in the industry that of a business that is committed to excellence, a good operator and a good neighbor. Ecology Auto has been the leading innovator in their industry. Much of the operations and facilities that are used in order to absolutely extract all regulated and hazardous materials had to be designed by Ecology and built by them because none had existed prior to Ecology Auto. In respect to screening measures to ameliorate adverse visual impacts, Ecology Auto has taken the initiative to provide some additional south facing screening. They have also made some changes within their operation to insure that no equipment or stacks of crushed vehicles would extend above the screening so that the visual impact from the south from the Coor's Amphitheater and Water Park side is greatly ameliorated if not all together erased. Ecology Auto owns one of the parcels that their operation takes place on and leases the other. The lease on the property will be expiring in the foreseeable future. The most advantageous plan for Ecology is to purchase the property that is currently leased and there is a conceptual 3 Planning Commission Meeting-Draft Minutes April 25, 2001 agreement with the property owner to do so for a price tag in the neighborhood of two million dollars. That alone will radically alter the property tax revenues to the City and Redevelopment Agency incremental financing. But in addition, Ecology proposes to expend capital on the upgraded maintenance and repair of just the sort of facilities that we are talking about notably perimeter screening landscaping so that the operation continues to be a good neighbor. All of this is a great deal of money, and then in addition there is the money for the Otay Valley Road Assessment District 92-2 a $140,000, which is grossly incorrect. When you combine the two pieces of property that Ecology currently owns and the one that they lease the figure will exceed a million and one-half dollars of which approximately $60,000 a year until 2017 is still to be paid on installments and there are promissory notes due in lump sum on December 31, 2017. I would suggest in your deliberations, to keep in mind that the capital investment that Ecology is proposing to make should this permit be granted over a long enough term to amortize that sort of investment includes a substantial amount of money for the Otay Valley Road assessment district. The purpose and the reasoning for applying for a 20-year extension is so that this major capital investment can be financed with amortizing over 25 years. Should the Commission and the Redevelopment Agency choose to accept staff's recommendation to reduce our request expiration date to 2017 instead of 2025 the applicant will concur. Commissioner McCann inquired about the storm water filtration system. Joe Kellejian, 4360 Main Street, Chula Vista, CA representing Ecology Auto stated that Ecology sets the standard locally for storm water filtration, fire suppression measures as well as hazardous waste extraction, and storage and handling of vehicles. They have two different storm water filtration systems that have been approved. Their hazardous waste management is beyond reproach and in cooperation with the Chula Vista Fire Department, San Diego Fire Department, and County Health Services have worked on ways of extracting all the fluids out of the vehicle before it goes out to their facility. They have a tremendous following with the public and businesses in the South Bay and throughout the County of San Diego who depend on them for used auto parts. In addition to all the services they provide, they have contributed greatly to the community with social services and scholarship distributed to all the high schools in Chula Vista. Commissioner O'Neill inquired about the property being purchased and what sort of tax revenue these three sites would produce on sales tax based on the gross sales. Mr. Kelliejian responded that the property being purchased was the south side that held the foreign cars and those three parcels generated approximately a quarter of a million dollars in sale tax revenue. Commissioner Castaneda inquired to whether Ecology had a facility in the City of San Diego in the Otay Mesa area. Mr. Kellejian stated they have a large IS-acre facility in Qtay Mesa that they lease from the Street family. 4 Planning Commission Meeting-Draft Minutes April 25, 2001 Commissioner Castaneda stated the City of San Diego is looking at phasing out the auto recycling industry in Otay Mesa and asked about the status of their Conditional Use Permit. Mr. Kellejian responded that the Conditional Use Permit was almost ready. Commissioner Castaneda responded that the City of San Diego has offered the CUP but understood that the Street family would have to make a significant amount of improvement to their property in order to get it. He wasn't sure that they were willing to do that. He further stated that the City of San Diego is basically looking and heading in one direction with respect to the land that's been traditionally used over the past 20-30 years for auto recycling. Public Hearing Closed. Commissioner Thomas stated he was trying to stay focused on what the land use is. Granted Ecology is the number one leader in their industry, if the study shows that the highest and best land use is for the recycling industry than we will obviously want to use Ecology as the standard to fulfill the obligations of that report. He further stated it would not be a good idea to go into any type of long-term agreement until the reports came out that showed us the highest and best land use and allowed the city to make some long range goals based upon those reports. Since those reports were due to be completed within 2-3 years, Commissioner Thomas stated he was more inclined to recommend that instead of saying no to the whole project, that they vote to have the project come back after the reports have been completed, He was going to vote no against the proposal. Commissioner O'Neill stated that the applicant's concern regarding financing being more difficult to obtain because the SUP was not extended would be true if the applicant were a weaker operation. But that particular piece of property, if in fact there is a higher and better use and it's light manufacturing is going to be worth more than maybe not to their on-going operation but actual cash value of the land. It will turn out to be a good investment. Lyle Haynes, Assistant Community Development Director stated the timing of the application was awkward. They had to look at the application on the merits of their findings at this point in time. After all the options had been weighed they came to the conclusion that there were more reason to approve the project than to deny it. There has been a great deal of discussion about the timing if this project gets approved; now in advance of this study that we would be locking ourselves in. Mr. Haynes stated he believed even with the approval of Ecology there would still be a tremendous amount of redevelopment opportunities in that area that could be used for other alternative land uses. He further stated he believes by recommending approval of this Special Use Permit the Planning Commission is not precluding themselves from taking other action down the road if there are other types of projects that come in that provide higher and better uses in that area. 5 Planning Commission Meeting-Draft Minutes April 25, 2001 Commissioner Thomas asked what kinds of options you would have if you granted someone a Special Use Permit until 2017. Lyle Haynes responded that it was in a redevelopment area and that the option would be Eminent Domain. Commissioner Thomas stated that was not a good option. Commissioner Hall stated if they were to approve this Special Use Permit in mid term then the other neighbors in the same business would come forward and want the same thing. If we were to deny them we could be setting ourselves up for potential litigation challenges. Lyle Haynes in terms of the other applications that are coming in, they will be looked at on a case-by-case basis. We are going to be accelerating this study and will be in better position to be able to respond to future application as they come in when they are due to expire in 2005 and 2006. Commissioner O'Neill stated this application comes early on. The applicant's Special Use Permit does not expire until 2005. I think the applicant has come forward because they are trying to make a decision on purchasing the land. He did not think it had to be extended now as Ecology had four years left on their lease. MSC (Thomas/Castaneda) (7-0-0-0) that the Planning Commission denies the staff's recommendation and not approve the requested extension thus keeping the Special Use Permit intact until 2005. The request could come forward again after the Redevelopment Agency reports are completed stating the long-term goals of the city. 6