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HomeMy WebLinkAbout2008/08/05 Item 7 CITY COUNCIL & REDEVELOPMENT AGENCY AGENDA STATEMENT ~lff:. ellY OF ~ CHLJLA VISTA AUGUST 5, 2008 Iteml ITEM TITLE: A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS FOR AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA REDEVELOPMENT AGENCY AND THE URBAN LAND INSTITUTE SUBMITTED BY: REVIEWED BY: B. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA REDEVELOPMENT AGENCY AND THE URBAN LAND INSTITUTE IN THE AMOUNT OF $120,000, AND APPROPRIATING FUNDS THEREFOR ~ /. J/- / ?PI' ASSISTANT DIRECTOR OF REDEVELOPMENT "'D HOUSING CITY MANAGER/EXECUTIVE DIRECTOR,,/9/1L 4/5THS VOTE: YES 0 NO D SUMMARY In the coming years, Chula Vista' s vacant bayfront may soon transform into a world class destination. The H Street corridor provides an opportunity to connect the bayfront and the Chula Vista community and revitalize it along the way. Staff is recommending that the Redevelopment Agency (Agency) enter into a contract with the lirban Land Institute (ULl) Five-Day Advisory Services Program (Program) to provide an unbiased implementation program for redevelopment of the H Street Corridor between Interstate 5 and Third A venue (Corridor). ENVIRONMENT AL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project'. as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no further environmental review is necessary. 7-1 August 5, 2008, Item--L Page 2 of 4 RECOMMENDATION Councill Agency adopt the resolutions. BOARDS/COMMISSION RECOMMENDATION On January 24, 2008, the Chula Vista Redevelopment Corporation directed staff to consider using the expertise of the ULI Advisory Council to advise the Redevelopment Agency in its redevelopment efforts. On July 10, 2008 City Council approved the Climate Change Working Group Measures Draft Implementation Plan. Measure #6 of this Plan, "Smart Growth" at Trolley Stations, identified a work program that included the ULI Program. DISCUSSION Background Recent demographic changes and population growth in California have brought about renewed interest and need for revitalization and redevelopment of cities' urban centers. Recognizing the need for revitalization of its own urban area several years ago, Chula Vista embarked upon a visionary framework for revitalization through the adoption of the updated General Plan (December 2005) and Urban Core Specific Plan ("UCSP", April 2007). While the real estate market has since cooled, Chula Vista continues its efforts to revitalize the older western portion of the city with the progress of the Bayfront Master Plan and development of a major hotel/convention center. The Bayfront represents the largest opportunity in the; city for future development. With sweeping views of the San Diego Bay, large parcels of undeveloped land and recent steps to secure the Gaylord Entertainment hotel-convention center, the Bayfront may provide the needed "catalyst" for redevelopment. As the Bayfront Master Plan and the cornerstone hotel/convention center move closer to reality, renewed private investment will seek to capitalize on the opportunities to compliment uses and serve the visitors and residents of the Bayfront. With the Bayfront's front door at H Street. the Corridor is quickly emerging as a potential "backbone" for redevelopment. H Street is ideally situated as a major gateway to the city's commercial and fmancial centers and a direct link of the Bayfront and the city's historic heart of the community, the Third Avenue commercial district (see Attachment I). Large land owners located along the Corridor include the South County Court House, Scripps Hospital, and the Chula Vista Center, a regional shopping mall. All are interested in expansion and redevelopment opportunities. Recent development activity such as the development of the Gateway Center, with Class A office space, and the opening of coffee shops, restaurants and professional offices along the Corridor demonstrates the demand and interest for the area that can only grow with the potential of the Bayfront. Urban Land Institute Advisory Services Program While recent discussions with land ovvners and development activity in the Corridor has provided renewed hope for revitalization, it is imperative that the City is poised to take advantage of its opportunities when the market returns and plans for the Bayfront solidify. A cohesive strategy to address market potential, planning and design or financing and development 7-2 August 5, 2008, Item2 Page 3 of 4 is needed to take the visionary framework of the UCSP to concrete implementable actions that can facilitate appropriate and quality redevelopment along the Corridor. Staff is proposing to contract with the ULI for the Program to prepare such a strategy (contract included as Attachment 2). ULI is a well established international non-profit research and education organization, which provides leadership in the responsible use of land and in creating sustainable communities. As the preeminent, multidisciplinary real estate forum, with a membership of over 35,000 members and associates from 90 countries, ULI has access to experts representing the entire spectrum of land use and development disciplines. Through ULI's unique program, an interdisciplinary team of its member experts help sponsors find creative, practical solutions for issues such as downtown redevelopment, land management strategies, evaluation of development potential, growth management, community revitalization, and bro'Wnfield redevelopment. The unique team-based approach to bring city, business, development, and community interests together with ULI niche experts provides an opportunity that is unparalleled. The Program has assembled well over 500 ULI-member teams to help sponsors find solutions and build consensus around land use and development challenges. For Chula Vista, the program is specifically designed to help answer questions related to the land use and development issues we face along the Corridor and will: .:. Bring recognized real estate expertise from across the United States to provide an assessment of the market feasibility and economic potential of the Corridor as a connection between the Bayfront and Third A venue commercial district; .:. Gather data on the many quality-of-life objectives of the community and the ongoing business and economic operations; and .:. Fulfill General Plan and other city objectives to forge an integrated, action-oriented implementation plan for the Corridor. The interdisciplinary team "vill consist of eight to nine members; typically several developers, a landscape architect. a planner. a market analyst, a finance expert. and others with the niche expertise needed to address the issues/challenges most relevant to the Corridor. To complete the assignment, the team takes on an intensive agenda which includes: .:. .-'ill in-depth briefing day composed of a tour of the site and meetings with City representatives: .:. Hour-long interviews of typically 80 to 100 key community representatives: and .:. A day and a half of formulating recommendations. The final days are dedicated to the panel preparing findings and conclusions, which are presented to the sponsor on the final day through an oral presentation. i\fter the panel is completed, a written report (sample included as Attachment 3) will serve as an implementation plan for redevelopment of the Corridor. Additionally, the City has the opportunity to build upon the ULI Program. In early 2008, the H Street Corridor, as a smart growth and transit focus area, was one of three project areas selected by the San Diego Association of Governments (SA..l\IDAG) for a Smart Growth 3-D Visual 7-3 August 5, 2008, Item ':f- Page 4 of 4 Simulation grant. Through the grant, the City will be able to provide a three-dimensional, conceptual visualization of the implementation plan developed by ULI. Being able to visualize a plan helps one to better understand building massing assumptions, the integration of frontage property appearance, and pedestrian access along the Corridor. Bidding Process Waiver Chula Vista Municipal Code section 2.56.070 requires that contracts for all supplies, equipment and services when the estimated cost exceeds $100,000 shall be awarded by the City Council to the lowest responsive bidding process. Exceptions to this requirement may be granted where there is a commodity or service available from only one known source as the result of unique performance capabilities, compatibility requirements or market conditions. The competitive bidding requirements may be waived by the City Council when they are impractical, impossible or the city interests would be materially better served by a different procurement process. Staff is recommending that the formal bidding process be waived for the ULI Program. This recommendation is based on the following capabilities that are uniquely being offered to the Agency by ULI: .:. ULI is uniquely qualified with capabilities to draw from over 35,000 members located in 90 countries who represent the entire spectrum of land use and development disciplines; and .:. The Program is the only one of its kind and has the unique experience of completing more than 500 Advisory Service panels, in 47 states, 12 countries, and 4 continents. ULI has demonstrated their breadth of expertise and experience through their Program and numerous panel completions. These service capabilities were found to be necessary in order to meet the goals of the General Plan. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the Redevelopment Agency Board and City Council members and has found no property holdings within 500-feet of the boundaries of the Corridor which is the subject of this action. FISCAL IMPACT There is no fiscal impact to the City's General Fund as a result of adopting this resolution. This action will appropriate $120.000 of the Redevelopment Agency's existing Fund Balance to the services and supplies budget of the Redevelopment Agency Merged Project Area Fund. ATTACHMENTS 1. Map of H Street Corridor 2. Two Party Agreement 3. Sample Report 4. Supplemental Report - Update on Process Since 7/22/08 Prepared by: Stacey Kur:::, Senior Project Coordinator, Redevelopment & Housing 7-4 ~ ~JJ:1J ~ H~~ III I --1 [TTlllT----n , I: =d~~ =~t:~ I i ::I 3 ::1::1 I i ~~. [l ~ ~ ~ ~ I ~ ' ~ I ~ ..J ~'H in IlliUiLjI ,'~~ i ! I r [I . """ I' rii -I ll~; I - I "I f '~ ~ rI4~nO~ ~ ~ F I I t= - 81BffilIHHffi "1 I ill 11II111111 = f-- L aA'r/ 4ll!:I J ----' =~8 ~ '~ ~E~ - El~ en -~ =1=::1: - == =i= r:r eMpeoJ8 T I 8 III .. III .. .- GI >.. . I'll C c-'- _ GI ::I U .c U L ;-- L- III U~ L m~ I r ~1~ II- -:1' ...= - ...= == iE ll1IDfil T ~,' en-= ~ e.=~ [ UJij I - I-- t::: ,- 1IIIIIIIIl III 1I11 I 1I111111 II111111111111111 Illflr-11mllll!11 I 111111 IIIDIllDJI II~I 1 I I r l~~ m 5 aJeJsJaJul Irq--- n Attachment 1 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL Dated: ? \ ~(/' [;0 Agreement between City of Chula Vista and ULI, the Urban Land IIlstitute for Advisory Services 7-6 Attachment 2 Parties and Recital Page(s) Agreement between City of Chula Vista and ULI - the Urban Land Institute for Advisory Services This agreement ("Agreement"), dated for the purposes ofreference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph I, is between the City-related entity as is indicated on Exhibit A, Paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, Paragraph 3, and the entity indicated on the attached Exhibit A, Paragraph 4, as Consultant, whose business form is set forth on Exhibit A, Paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, Paragraph 6 ("Consultant"), and is made with reference to the following facts: Recitals Whereas, the H Street Corridor is a critical component of the revitalization of the City of Chula Vista; and Whereas, General Plan LUT Objectives 2, 52, 53, and 57 identify the H Street Corridor as a critical component for focusing redevelopment effor;ts to encourage a mix of uses within walking distance of a transit station that contain significant public gathering space and vibrant mixed use area; and Whereas, the Urban Land Institute (ULI) has extensive knowledge of complicated land use and planning matters and has conducted Advisory Services Seminars for a number of other agencies which uniquely qualifies ULI to provide advisory services through their 5-day Advisory Services Seminar; and Whereas, waiving the consultant selection process is in the best interest of the City because ULI has prior experience working with a number of other agencies in conducting Advisory Services Seminars and has extensive knowledge of complicated land use and planning matters and has the specific professional resources uniquely qualified and suited to conduct the Advisory Services Seminar; and Whereas, ULI warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of ULI to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement. (End of Recitals. Next Page starts Obligatory Provisions.) Page I 7-7 Obligatory Provisions Pages NOW, THEREFORE, BE IT RESOLVED for valuable consideration the City and Consultant do hereby mutually agree as follows: I. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled "Scope of Work and Schedule", not inconsistent witb the General Duties, according to, and within tbe time frames set forth in Exhibit A, Paragraph 8, and deliver to City sucb Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of tbe essence of tbis agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defmed Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph IO(C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. Page 2 7-8 F. Insurance Consultant must procure insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work under the contract and the results of that work by the Consultant, his agents, representatives, employees or subcontractors and provide documentation of same prior to commencement of work. The insurance must be maintained for the duration of the contract. Minimum Scope ofInsurance Coverage must be at least as broad as: (I) Insurance Services Office Commercial General Liability coverage (occurrence Form CGOOOI). . (2) Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). (3) Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. (4) Professional Liability or Errors & Omissions Liability insurance appropriate to the Consultant's profession. Minimum Limits of Insurance Contractor must maintain limits no less than: I. General Liability: (Including operations, products and completed operations, as applicable) $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this projectllocation or the general aggregate limit must be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Workers' Compensation Employer's Liability: 4. Professional Errors & Liability: Liability or Omissions Statutory $1,000,000 each accident $1,000,000 disease-policy limit $1,000,000 disease-each employee $1,000,000 each occurrence Page 3 7-9 Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer will reduce or eliminate such deductibles or self-insured retentions as they pertain to the City, its officers, officials, employees and volunteers; or the Consultant will provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim3dministration, and defense expenses. Other Insurance Provisions The general liability, and where applicable, the automobile liability policies are to contain, or be endorsed to contain, the following provisions: (I) The City of Chula Vista, its officers, officials, employees, agents, and volunteers are to be named as additional insureds with respect to liability arising out of automobiles owned, leased., hired or borrowed by or on behalf of the Consultant, where applicable, and, with respect to liability arising out of work or operations performed by or on behalf of the Consultant, including providing materials, parts or equipment furnished in connection with such work or operations. The general liability additional insured coverage must be provided in the form of an endorsement to the contractor's insurance using ISO CG 2010 (11/85) or its equivalent. Specifically, the endorsement must not exclude Products/Completed Operations coverage. (2) The Consultant's General Liability insurance coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance of the contractor and in no way relieves the contractor from its responsibility to provide insurance. (3) Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code. t41 Consultant's insurer will provide a Waiver of Subrogation in favor of the City for the required general liability policy. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are written on a claims-made form: (I) The "Retro Date" must be shown, and must be before the date of the contract or the beginning of the contract work. (2) A copy of the claims reporting requirements must be submitted to the City for review. Page 4 7-10 Acceptability of Insurers Insurance is to be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best's rating of no less than A V. If insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers ("LESLI") with a current A.M. Best's rating of no less than A X. Exception may be made for the State Compensation Fund when not specifically rated. Verification of Coverage Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on insurance industry forms, provided those endorsements or policies conform to the contract requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. Consultant will provide City 30 days advance written notice of intent to cancel subject insurance or advise the City in writing immediately upon knowledge of insurer's intent to cancel. Subcontractors Consultants must include all subconsultants as insureds under its policies or furnish separate certificates and endorsements for each subconsultant All coverage for subconsultants are subject to all of the requirements included in these specifications. ' G. Security for Performance (I) Performance Bond In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond in the form prescribed by the City and by such sureties which are authorized to transact such business in the State of California, listed as approved by the United States Department of Treasury Circular 570, htto:llwww.fms.treas.2:ov/c570. and whose underwriting limitation is sufficient to issue bonds in the amount required by the agreement, and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise by laws or regulations. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority. to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the limits so required. Form must be satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Exhibit A, Paragraph 18. Page 5 7-11 (2) Letter of Credit In the event that Exhibit A, at Paragraph IS, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Exhibit A, Paragraph IS. (3) Other Security In the event that Exhibit A, at Paragraph IS, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. H. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 9, and with the further understanding that delay in the provision of these materials beyond thirty (30) days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 17, but in no event more frequently than monthly, on the day of the period indicated in Exhihit A, Paragraph 17, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 10, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set Page 6 7-12 forth in Paragraph 18 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph II. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 17(C) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 12, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 13. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in performance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defmed Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the Consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 13 ("Liquidated Damages Rate"). Time extensions for delays beyond the Consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Force Majeure The performance of this Agreement by either party is subject to acts of God, war or threat of war, govemment regulation, acts or threats of terrorism, disaster, fITe, strikes, civil disorder, public health crises, curtailment of transportation facilities or other circumstances beyond the Page 7 7-13 control of the parties unreasonably delaying or making it inadvisable, illegal or impossible for either party to perform its obligations hereunder. This Agreement may be terminated without penalty for anyone (I) or more of such reasons by written notice from one party to the other; provided that the party delayed or unable to perform shall promptly advise the other party of such delay or impossibility of performance, and provided further that the party so delayed or unable to perform shall take reasonable steps to mitigate the effects of any such delay or nonperformance. 7. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer If Consultant is designated on Exhibit A, Paragraph 14, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 14 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which. Consultant knows or has reason to know Consultant bas a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant bas diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does no~ to the best of Consultant's knowledge, have an economic interest whicb would conflict with Consultant's duties under this agreement D. Promise Not to Acquire Conflicting Interests Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant Page 8 7-14 learns of an economic interest of Consultant's that may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 14. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreemept. . Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for twelve months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for twelve months after the expiration of this Agreement, except with the written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party that may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 8. Hold Harmless Consultant shall defend. indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) arising out of or alleged by third parties to be the result of the negligent acts, errors or omissions or the willful misconduct of the Consultant, and Consultant's employees, subcontractors or other persons, agencies or firms for whom Consultant is legally responsible in connection with the execution of the work covered by this Agreement, except to the extent that those claims, damages, liability, costs and expenses (including without limitations, attorneys fees) arise from the sole negligence or sole willful misconduct of the City, its officers, employees. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. With respect to losses arising from Consultant's professional errors or omissions, Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense {including Page 9 7-15 without limitation attorneys fees) except to the extent that those claims arise Erom the negligence or willful misconduct of City, its officers or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys fees and liability incurred by the City, its officers, agents or employees in defending against such claims, whether the same proceed to judgment or not. Consultant's obligations under this Section shall not be limited by any prior or subsequent declaration by the Consultant. Consultant's obligations under this Section shall survive the termination of this Agreement. 9. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before tbe effective date of such termination. In the event of City's termination of this Agreement, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, provided that City shall first pay Consultant just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breacb. 10. Errors and Omissions In the event that the City Administrator determines th~t the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement II. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all fmished and unfinished documents and other materials described hereinabove shaH, at the option of the City, become City's sole and exclusive property, provided that City has first paid just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising onder this Agreement except as set forth herein. Page 10 7-16 12. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the sarne (whether by assignment or notation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 16 to the subconsultants identified thereat as "Permitted Subconsultants". 13. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties (collectively "materials or properties") produced under this Agreement shall be the sole and exclusive property of City, provided that City has paid Consultant just and reasonable compensation for the services rendered in producing such materials or properties. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such materials or properties produced under this Agreement. Consultant shall retain a perpetual, royalty-free license to use any such reports, studies, data, statistics, forms, or other materials or properties for educational, non-commercial purposes. 14. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of sarne and shall hold the City harmless with regard thereto. 15. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of sarne. Page II 7-17 Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 16. Attorney's Fees Should a dispute ansmg out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 17. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or documen~ a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 18. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker andlor Salesman If the box on Exhibit A, Paragraph 15 is marked, the Consultant andlor their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons, C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreemen~ together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, Page 12 7-18 modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing LawNenue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City ofChula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. (End of page. Next page is signature page.) Page 13 7-19 Signature Page to }\greernentbe~een City of Chula Vista and ULI - the U rhan Land Institute for Advisory Services IN. WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: Redevelopment Agency of the City of Chula Vista By: Cheryl Cox, Chair Attest: Donna Norris, Interim City Clerk Approved as to form: Bart Miesfeid, Interim City Attorney - Urban Land lnsh?" BY:C.~ Cheryl Cummins President, The Americas By: ~~~/ ~ Senior Vice President, CommURitY'"J By: ~ -~/ Thomas W. Eitler 2:' Director, Advisory Services 7/2/vr Dated: 7/1/:>(, Exhibit List to Agreement (X) Exhibit A. Page 14 7-20 Exhibit A to Agreement between City of Chula Vista and ULI - the Urban Land Institute for Advisory Services 1. Effective Date of Agreement: 2. City-Related Entity: ( ) City of Chula Vista, a municipal chartered corporation of the State of California (X) Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California ( ) Industrial Development Authority of the City of Chula Vista, a ( ) Other: , a [insert business form] ("City") 3. Place of Business for City: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 4. Consultant: ULI - the Urban Land Institute 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership ( ) Corporation (X) Non-Profit Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 1025 Thomas Jefferson Street, N.W. Page 15 7-21 Suite 500 West Washington, D.C. 20007-5201 Phone: (202) 624-7000 Fax: (202) 624-7140 7. General Duties: ULI shall conduct a 5-day Advisory Services Panel Seminar and provide a final report of recommendations to the Redevelopment Agency of the City of Chula Vista. 8. Scope of Work and Schedule: A. Detailed Scope of Work: ULI sball provide a volunteer panel that collectively bas a varied and broad experience and knowledge applicable to the issues of the H Street Corridor study area (west of Third Avenue). Once the contract has been executed, ULI and the City will work together to frame the assignment and identify the particular issues to be addressed by tbe panel, whicb may include but not be limited to assessment of the Corridor's economic potential and urban design, and development of an implementation strategy. ULI shall arrange for the panel members to visit the location upon which its recommendations are sought for a period of not less than five days (tbe "panel session"), starting on panel start date, to be determined by ULI and tbe City. During tbe panel session, ULI shall directly and thr'lugh its staff: . study the designated area; . consnlt witb public and private officials, representatives of otber relevant organizations, and other individuals familiar witb the issues involved; and . prepare its conclusions and recommendations whicb will be presented to the City and its invited guests in oral form at the close of the on-site assignment. ULI shall provide the City with a written summary of its conclusions and recommendations. The City ,viII be provided 200 copies of the report. ULI shall absorb the travel and living expenses of its panel and staff while on site. B. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: Deliverable No.1: N/A Page 16 7-22 Deliverable No.2: NfA Deliverable No.3: NfA D. Date for completion of all Consultant services: December 31, 2008 9. Materials Required to be Supplied by City to Consultant: The Redevelopment Agency of the City of Chula Vista shall supply, at its expense, the following items to ULI: . Furnish to each panel member, not less than 10 days in advance of the panel session, such pertinent background data in the form of reports, plans, charts, etc., as may be presently available or readily developed for the preliminary study of the panel, prior to its inspection on site. Two copies are to be sent to the ULI Project Manager. . Arrange, insofar as possible, to have appropriate persons, including public officials and private individuals, representatives of relevant organizations, and others, available for the purpose of consulting with and furnishing information to the panel on specific matters relevant to the assignment as may be necessary and advisable during the period of the panel's visit. 10. Compensation: A. ( ) Single Fixed Fee Arrangement. For performance of all of the Defmed Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee AmOWlt: , payable as follows: Milestone or Event or Deliverable Amount or Percent of Fixed Fee ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereWlder shall be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amoWlt or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof Page 17 7-23 demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. (X) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defmed Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. !. Upon signing of contract Presentation of panel's recommendations Upon City receiving final report Fee for Said Phase $ 57,500 $ 57,500 $ 5,000 Phase 2. 3. ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder sball be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City sball receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor sball have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. ( ) Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule herein below according to the following terms and conditions: Page 18 1-24 (I) ( ) Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). (2) ( ) Limitation without Further Authorization on Time and Materials Arrangement At . such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Rate Schedule Category of Employee Name of Consultant Hourly Rate $ $ $ $ $ ( ) Hourly rates may increase by 6% for services rendered after [month], 20_, if delay in providing services is caused by City. Ii. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (X) None, the compensation includes all costs. Cost or Rate $ $ $ $ $ $ $ $ () Reports, not to exceed $ () Copies, not to exceed $ () Travel, not to exceed $ () Printing, not to exceed $ () Postage, not to exceed $ () Delivery, not to exceed $ () Long Distance Telephone Charges, not to exceed $ () Other Actual Identifiable Direct Costs: Page 19 7-25 , not to exceed $ , not to exceed $ $ $ 12. Contract Administrators: City: Stacey Kurz, Senior Project Coordinator, Redevelopment and Housing Consultant: Matthew Rader, Senior Associate, Advisory Services Program 13. Liquidated Damages Rate: ( ) $ ( ) Other: per day. 14. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer.' ( ) FPPC Filer ( ) Category No. I. Investments and sources of income. ( ) Category No.2. Interests in real property. I ( ) Category No.3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of tbe department. ( ) Category No.4. Investments in business entities and sources of income that engage in land development, construction or the acquisition or sale of real property. ) Category No.5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. 1. If Consultant, in the performance of its services under this agreement: (1) conducts research and arrives at conclusions with respect to its rendition of information, advice, recommendations or counsel independent of the control and direction of the City or of any City official, other than normal contract monitoring; and (2) possesses no authority witb respect to any City decision beyond the rendition of information, advice, recommendations or counsel, Consultant should not be designated as an FPPC Filer. Page 20 7-26 ( ) Category No.6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. ( ) Category No.7. Business positions. ( ) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: IS. ( ) Consultant is Real Estate Broker and/or Salesman 16. Pennitted Subconsultants: ~ 17. Bill Processing: A. Consultant's Billing to be submitted for the following period of time: ( ) MontWy ( ) Quarterly ( ) Other: B. Day of the Period for submission of Consultant's Billing: ( ) First of the Month ( ) 15th Day of each Month ( ) End of the Month ( ) Other: C. City's Account Number: 65140-6301 18. Security for Performance Page 21 7-27 ( ) Performance Bond, $ ( ) Letter of Credit, $ ( ) Other Security: Type: Amount $ (X) Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to ULI sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: ( ) Retention Percentage: (Xl Retention Amount: $5,000 % Retention Release Event: (Xl Completion of All Advisory Services ( l Other: Page 22 7-28 Attachment 3 7-29 September 22-2'1, 20U2 An Advisory Services Panei Report ULI-the Urban Land Institute 1025 Thomas Jefferson Street, KW Suite 500 West Washington, D,c. 200U'I-5201 7-30 LI-the Urban Land Institute is a non- profit research and education organiza- tion that promotes responsible leadership in the use of land in order to enhance the total environment. The Institute maintains a membership represent- ing a broad spectrum of interests and sponsors a wide variety of educational programs and forums to encourage an open exchange of ideas and shar- ing of experience. ULI initiates research that anticipates emerging land use trends and issues and proposes creative solutions based on that research; provides advisory services; and pub- lishes a wide variety of materials to disseminate infonnation on land use and development. Established in 1936, the Institute today has more than 17.000 members and associates from 60 coun' tries. representing the entire spectrum of the land use and development disciplines. Professionals rep- 2 1-31 resented include developers, builders, property O~'11ers, investors, architects, public officials, plan- ners, real estate brokers, appraisers, attorneys, engineers, financiers, academics, students, and librarians. ULI relies heavily on the experience of its members. It is through member involvement and infonnation resources that ULI has been able to set standards of excellence in development practice. The Institute has long been recognized as one of America's most respected and 'Widely quoted sources of objective information on urban planning, growth, and development. This Advisory Services panel report is intended to further the objectives of the Institute and to make authoritative infonnation generally avail- able to those seeking knowledge in the field of urban land use. Richard M. Rosan President @2002byULI-the Urban Land Institute 1025 Thomas Jefferson Street. N.W. Suite 500 West ~;ashington. D.C. 20007.5201 All rights reserved. Reproduction or use of the whole or any part of the contents without written permission of the copy- right holder is prohibited. CLl Catalog Number: ASS050 Cover photo by Leslie A. Smith. An Advisory Services Panel Report he goal of ULI's Advisory Services Program is to bring the finest expertise in the real estate field to beal' on complex land use plan- ning and development projects, programs, and policies. Since 1947, this program has assem- bled well over 400 ULI-member teams to help sponsors find creative, practical solutions for issues such as downto\'m redevelopment, land management strategies, evaluation of develop- ment potential, growth management, community revitalization, brownfields redevelopment, military base reuse, provision of low-cost and affordable housing, and asset management strategies, among other matters. A wide variety of public, private, and nonprofit organizations have contracted for ULI's Advisory Services. Each panel team is composed of highiy qualified professionals who volunteer their time to ULI. They are chosen for their knowledge of the panel topic and screened to ensure their objectivity. ULI panel teams are interdisciplinary and typi- cally inciude several developers, a landscape architect, a planner, a market analys~. a finance expert, and others with the niche expertise needed to address a given project. l-LI teams pro'ide a holistic look at development problems. Each panel is chaired by a respected ULI mem- ber "With pre\'ious panel experience. The ag'enda for a five-day panel assignment IS in- tensive. It includes an in-depth briefing day com- posed of a tour of the site and meetings \vith spon- sor representatives: a day and a half of hour-long interviews oftypicaliy 80 to 100 key community representatives: and a day and a half oi formulat- ing recommendations. Many long nights of discus- sion precede the panel's conclusions. On the final day on site, the panel makes an oral presentation of its findings and conclusions to the sponsor. At the request of the sponsor, a written report is prepared and published. Because the sponsoring entities are responsible for significant preparation before the panel's l~sit. including sending e).."tensive briefing materials to each member and arranging for the panel to meet San Pedro, California. Septernber 22-27.2002 with key local community members and stake- holders in the project under consideration, partie. ipants in ULI's five-day panel assignments are able to make accurate assessments of a sponsor's issues and to provide recommendations in a com- pressed amount of time. A major strength of the program is ULl's unique ability to draw on the knowledge and expertise of its members, induding land developers and own- ers, public officials, academicians, representatives of financial institutions, and others. In fulfillinent of the mission of the Urban Land Institute, this Advisory Senices panel report is intended to pro- l~de ohjective ad,ice that will promote the re- sponsible use of land to enhance the emironment. Rachelle L, Lelitt Senior 'lice President. Policy and Practice Mary Beth Corrigan Vice President, Advisory Services Nanc~' Zivitz Sussman Senior Associate. Advisory Services Meghan Welsch Associate. Advisory Services Jason Bell Panel Coordinator. Advisory Services N anc)' H. Stewart Director. Book Program David james Rose Manuscript Editor Betsy VanBuskirk Art Director Martha Loomis Desb:top Puhlishing Specialist/Graphics Kim Rusch Graphics Diann Staniev-Austin Director. Publishing Operations 3 7-32 he ULI Advisory Services program staff and panel members would like to take this opportunity to extend special thanks to all of the following persons and groups. The following elected officials: the Honorable James K. Halm, Mayor, and staff members Troy Edwards, Abigail Zimmerman, and Wendy Wang; the Honorable Janice Hahn, Councilwoman, 15th District, and staff members Mike Molina, Grieg Asher, and Elise Swanson; the Honorable Jane Harman, Congresswoman, 36th District, and staffmember Evelyn Fierro; and the Honorable Alan Lowenthal, State Assemblyman, 54th Dis- trict, and staff members Helene Ansel, Norman Fassler-Katz, and Broc Coward. The three panei cosponsors: the City of Los _4...nge--! les Community Redevelopment Agency. the City of Los Angeles Harbor Department, and the San Pedro Peninsula Chamber of Connnerce. The city commissioners and staff members from the Community Redevelopment Agency. the Har- bor Department, and the Plauning Department. From the Community Redevelopment Agency: commissioners David Farrar. ehairman: John Schafer, Shu Kwan Woo. Douglas R. Ring, John A. Ornelas. Marva Smith Battle-Bey. and Madeline Janis-Aparicio and staff members John McCoy. Ed Donnelly. Rafique Khan. Susan Totaro. Betty' Pace, and Mo."y _AJice Crowe. From the Harbor Department: commissioners Nicholas G. Tonsich. president; Elwood Lui. Thomas A. \\larren. James E. Acevedo, and Camilla Tovmsend Kocol and staff members Larry' Keller. Bruce Seaton, Julia Nagano. Stacey G. Jones, David Mathewson, Tony Gioiello. and Kanya T. Dorland. From the Planning Department: Mitchell B. Menzer. president of the commission. and Shana Murphy and Jeff Pool. staff. 4 7-33 The San Pedro Peninsula Chamber of Commerce: Jayme Wilson, Jim Cross, and Leslie Smith as well as the chamber's individual supporters: Jerico De- velopment, Crail-Johnson Foundation, the Victory Group, Cross America Inc., San Pedro Fish Mar- ket and Restaurant, Spirit Cruises, Tri-Marine International, the Whale & Ale, Little Company of Mary-San Pedro Hospital, Harbor Insurance Agency, C&S Insurance, Sheraton Los Angeles Harbor Hotel, Butterfield Communications) Mary- lyn Ginsburg, Greer/Daily/Minter, the Kathennan Company. Tom McCain, DDS, Harbor Brake Ser- vice, HarborFront Properties, Harbor View Office Building, Hussey Insurance Agency, Park West- ern Estates, PriorityOne Printing, Via Cabrillo Marina 2500. Williams' Bookstore, and Linda Honey, CFP. EA. The staff of the Sheraton Hotel San Pedro. espe- cially Stephen Robbins and Kim Patalano. The panel also would like to thank the Los ...4...nge- les Harbor Watts Economic Development Corpo- ration. cochaired by Dennis C. Lord and John Papadakis. ror coordinating the project. The panel would especially like to recognize the efforts of the follo,-,ing people during the panel's on-site visit: John Papadakis. Jayme Wilson, and Da\id Farrar. The panel is particulariy indebted to the more than 100 (;ommunit~v residents, neighborhood council representatives. government and business lead- ers. and property owners who provided unique and valuable insights during interviews and the community rorum.. The individual perspectives gained from these interviews were crucial to the process. These stakeholders are a major asset in advancing the interests of San Pedro. An Advisory SUlYices Panel RB1Ion ULI Panel and Project Staff Foreword: The Panel's Assignment Overview and Summary of Recommendations 6 i Market Potential 10 13 18 26 Planning and Design Development Strategies and Implementation Conclusion 00 0'J About the Panel 34 San Pedro, California, September 22-27, 2002 5 7-34 J. Kevin Lawler Managing Partner N-K Ventures, LC West Palm Beach, Florida Ed Freer, ASLA Principal Designer SmithGroup JJR Madison, Wisconsin Diana Gonzalez Founder DMG Consulting Services, Inc. Miami, Florida Edwin R. (Ray) Kimsey, Jr. Vice President and Principal Niles Bolton Associates Atlanta, Georgia Charles A. Long Founder Charles A. Long Associates Reno, Nevada Lisa Mitchelson Portfolio Manager SSR Realty Advisors Boston. Massachusetts 6 7-35 Jennifer Meoli Stanton Director of Market Planning and Advisory Services Faison Charlotte, North Carolina Leslie Holst Senior Associate Policy and Practice Jason Ben Panel Coordinator Advisory Services An Advisory Services Panel Report Make only bold plans" has been the battle cry of many visionary planners. Over the past decade, the San Pedro, California, wa- terfront and downtown have been the sub- ject of numerous plans-some bold, some less so. Collectively, these plans do not "connect," and many of them are in direct conflict with each other. The challenge for San Pedro-the community, its wa- terfront, and the city of Los Angeles-is to con- solidate and connect these plans into a framework for unified development of the waterfront and downtown. San Pedro has a rich and robust history as the port community of Los Angeles. After years of planning for the indi,idual segments of the com- munity, the ULI panel's mission was straightfor- ward: to forge an integrated, action-oriented plan to reconnect the community with its waterfront, while meeting the many quaIity-of-life objectives of the community and the ongoing business and economic operations of its longstanding partner in the community's economic destiny-the Port of Los Angeles. Part of the city of Los Angeles, the waterfront community of San Pedro is home to one of the world's busiest harbors, the Port of Los Angeles. Increasing international trade has sustained ship- ping volume at the port, while industrial acti,ities such as oil refining benefit from long-established infrastructure, a skilled workforce, and access to national and regional markets. Even though the port has expanded significantly over the past three decades, San Pedro's down- tovm commercial district and nearby residential areas have not. They have been affected by the same economic and social changes shaping central urban areas throughout the country. Currently, the central business district is in continuing tran- San Pedro, California, September 22-27, 2002 Sacramento* San Francisco _.. Oakland . San Jo~ Fresno. . Los Angeies San Pedro. -;'ong Beach 7-36 "~ '"'. .San Diego ''"' \ " / ) ~ .J 7 .,,,,,,",",,..,~., Lo~ A"9ole. Courn:y O"'",!oCount.y Fuik<r'Mn S"udy.~.= .- ::'/", 'C v- ". - , sition with a surrounding neighborhood of very low- to moderate-income residents and nearby moderate- to high-income residential areas. Through its Community Redevelopment Agency (CRA), the city of Los Angeles established two re- vitalization areas: the Beacon Street Project Area in 1969 and the Pacific Corridor Redevelopment Area in 2002. The tight urban fabric of the Beacon Street area, a longstanding city district along Har- bor Boulevard, was cleared for redevelopment dur- ing the 1970s. This clearance, together with the expansion of the port facilities, replaced a long- standing urban district along Harbor Boulevard "ith a large vacant area that disconnected the downtown from the waterfront. Office and retail vacancies in the Beacon Street area. remain high, 30 years after clearance. A cen- trally located, multistory office building, !mown as the old Logicon Building or the Pacific Trade Cen- 8 7-37 ter, has been vacant for the past ten years. More- over, a highly visible downtown parcel, H-2, has been vacant since the 1970s. In the central business district, local retail estab- lishments gradually closed and were first replaced by thrift shops and other budget stores. Pioneer- ing coffee shops, restaurants, art gallelies, and professional offices are now replacing them. A Los Angeles County Courthouse, the Harbor Depart- ment Headquarters, and other municipal and pri- vate offices now anchor the downtown, creating an important component of weekday business ac- tivity. Private developers have restored a number of attractive historic buildings and many of these dovmtown sites, including the restored landmark Warner Grand Theater, are frequently used for movie and television location shoots. Pacific Avenue, the commercial core of the Pacific Corridor area, has local services such as mechan- ics, barbershops, locksmiths, appliance stores, and banks. These commercial entities extend for 20 blocks in a business corridor that is distinct from the central downtown distlict. Stretching four miles from the Vincent Thomas Bridge to the Cabrillo Beach breakwater, the San Pedro waterfront is adjacent to the downtown and residential areas. Under the jurisdiction of the Los Angeles Harbor Department, the waterfront contains a variety of active maritime-related uses, two museums. several marinas, and a hea\ily used public beach and boat launch. The fishing fleet and related support activitie8 remain an important feature, although much less so than during their peak almost 50 years ago. In addition, there are isolated areas of successful visitor-oriented com- mercial enterprise, industrial sites, and abar,- doned, vacant, or underutilized sites. Other important features include a very busy Cruise Center, the Ports 0' Call Village commer- cial development, and a modern marina. Plans for expansion of the marina as part of Cabrillo Phase II are now under consideration. The Ports 0' Call properties are operated by a limited number of leaseholders under a master lease 'l;vithin a long. An Advisory SelYices Panel Report term agreement. The Harbor Department con- trols the southern segment of Ports 0' Call. As San Pedro was slow to experience the urban renaissance that took root in many central cities and waterfronts dnring the 1990s, the port and the CRA pursued more intense planning and develop- ment initiatives independent of one another. These efforts resulted in a series of unrealized plans and failed public/private ventures. In 1999, a memo- randum of understanding between the Harbor De- partment and the eRA was signed to coordinate downtov,'11 and waterfront development. However, the relationship envisioned by this agreement has not been achieved, as the two agencies were un- able to establish an effective working relationship. In June 2001, MayorJames K. Hahn and Council- woman.J anice Hahn, both residents of San Pedro, entered office, creating a renewed sense of opti- mism, cooperation, and opportunity. Currently, local elected officials and community stakeholders share a strong interest in creating a broad con- sensus for transforming the dO"\Vlltov,rr. and the waterfront. San Pedro has three active neighborhood COl.ulcils, all of which are interested in downwwn and water~ front redevelopment efforts. These councils pro- vide an opportunity for local community participa- tion in the decisions of the city of Los .Angeles. In San Pedro. Califomia. September 22-27. 2002 addition, the Port Community Advisory Commit- tee, representing a range of business, labor, and community groups, serves as an advisory body to the Harbor Department Board of Counnissioners. The CRACs decisions concerning downtown San Pedro are guided by input provided by the Port Community Advisory Committee. A panel of community stakeholders developed plans for a waterfront Grand 'Promenade. In June 2002, the Hal'bor Counnission approved the concept of the promenade. This promenade plan is set forth in the Waterfront Access Task Force for the Com- munity and Harbor (WATCH) plan addressed later in this report. 9 7-38 he panel's approach focuses on providing prescriptive solutions that are intended to endure long after this report is published. To determine potential workable solutions, the panel has addressed not only the questions posed by the sponsors, but also, and perhaps more important, consciously has chosen to address what it believes is a realistic and actionable basis on which to proceed. The panel is keenly aware that both passion and politics have been in the forefront in recent months. The panelists are deeply impressed with the level of community involvement and consensus that the' WATCH plan has engendered. It is a credit to the San Pedro community that there is an active, heart- felt initiative to reconnect the corrununity to its waterfront. However, the panel is equally cognizant of the fact that the waterfront i8 not the sole issue affecting the San Pedro community. Other issues of concern include the following: . maintaining the community's character; . increasing public safety; . achieving longstanding efforts to revitalize the dOwntO,^,ll; . finding acceptable housing solutions, both for the existing stock and for the introduction of new housing; and . fostering economic prosperity by attracting employment opportunities and preserving the community's standard of li,ing. All these issues and more are ones that have been often repeated in the various planning documents the panel has reviewed as well as during the more 10 7-39 than 75 interviews the panel conducted while on site. In the panel's opinion, singularly focusing on the waterfront and the Grand Promenade is extraor- dinarily risky. The concept of the Grand Prome- nade itself is powerful, and undeniable in its basic merit. A singular or myopic focus on the Grand Promenade as "the solution" for San Pedro, how- ever, is far too narrow in the panel's view, The panel strongly endorses the concept of the Grand Promenade---€xtending from bridge to breakwa- ter. On the other hand, the panel has serious res- ervations concerning the specific plan presented in the WATCH plan as it incorporates much of the existing land uses and the arrangement of uses along San Pedro's community waterfront. Similarly, the expressed belief that the Port of Los Angeles is the singular problem of the commu- nity strikes the panel as too facile. To the panel, it seems undeniable that the port and the San Pedro community in fact have been longstanding part- ners in each other's destiny and economic welfare. The notion that the port "owes" the San Pedro community economic "reparations" for its alleged ills over the past 100 years seems strange and misplaced to the paneL Neither endorsing nor condemning the port, the panel sta.rts its work with the understanding that the San Pedro community and the port have been and ""ill continue to be linked in a common destiny. Despite the strong linkages between the port and the San Pedro community, there has been a grow- ing gap in their respective economic conditions over the past 30 years. The loss of the shipbuild- ing industry, and the demise of the southern Cali- fornia fishing fleet and the canneries that both were once an integral part of the San Pedro waterfront, are often cited as reasons. At the same time, the port has responded to evolving global market con- ditions and opportunities with steadily increased An Advlsnry Services Panel Report containerization and the continuing gromh and popularity of the cruise ship industry. All of this is, of course, old news to the San Pedro community. Equally old news is the deterioration of the cen- tral core of the downtown and the once-thriving local service retail establishments along Sixth and Seventh streets and Pacific Avenue. Similar de- clines in retail occupancies have occurred along the waterfront on port-owned property, specifi- cally at the Ports 0' Call Village. The panel has examined the market issues-which will be addressed in more detail later in this report -and concluded that market and development op- portunities indeed exist. They do not, hO\"'8Ver, in. valve the restoration of the old, nor do they entail the introduction of a major bMe of national chain retailers. The size of the market base limits the scope of the retail that is realistically supportable in the community. In contrast, opportunities abound in the housing sector. It is clear that San Pedro is being discov- ered for its stock of entry-level housing (by south- ern California market standards) and its unique community character and scale. The panel was slLrprised to discover tnat. in a thriving. supply. deficient metropolitan market. so little new hous- ing has been developed in the community and that the CRAs development plans (such M the Beacon Street Redevelopment Project) do not capitalize on this strong and readily available opportunity. The community's underdeveloped tourism and recreational base also mystifies the panel. Cruise ship passenger traffic is steadily increMing at the port and many weekend "day-trippers" are at. tracted to the restaurants at the waterfront, yet there appear to be no strong efforts to expand on this opportunity. Signage pointing the way to the waterfront and other local attractions is poor or nonexistent. Fe",- new facilities have been added and no attempts at "branding" the San Pedro com- munity were evident during the paners visit. An obstacle to increasing tourism is the limited ac- cess to and the generally undennaintained charac- ter of the waterfront. That visitors find their way there in the face of confusing access, poorly main- tained physical structures such as the Ports 0' Call San Pedro, California, September 22-27,2002 Village, and virtually no attention to grounds maintenance is a testament to the powerful draw of the waterfront. , In the panel's view, it is not a question of market potential or development opportunities, Though certainly not unlimited, clearly discernible oppor- tunities are readily at hand, The panel believes the essential market-driven issues are the following: . the need to improve access to and circulation \\ithin the community, including "gateway" en- tries at the northern and southern ends of the dO'wnto\V1l area; . the need to "unlock" real estate sites for devel- opment . the need for the adoption of high-quality devel- opment standards; and . the need to invest-and to invest significantly- in public improvements that raise the quality and character of San Pedro's public areas in its dO"IA71town core and waterfront. Though the issue of "gateways" into the downtown and waterfront areas is not "lAithin the panel's charge or study area, the panel strongly urges 11 7-40 community leaders to address it. If access and circulation are difficult, it will impede the develop- ment of key sites. An area of immediate need, it requires attention now, before new public and private development initiatives advance and then are constrained. How to forge a cohesive, well-integrated frame- work for the successful development of the water- front and the core downtown area is the challenge. At present, the City of Los Angeles Harbor De- partment controls the waterfront. The city's Com- munity Redevelopment Agency has the mandate for two redevelopment areas: the original Bea- con area and the more recently adopted Pacific Corridor area. The boundaries of these areas ad- join in some places, but they do not overlap. The combination of the boundary jurisdictional issues and the basic differences in organizational mission and style makes it understandable why a panel was requested. W'hen the Harbor Watts Economic Development Corporation, the Port Community , Advisory Committee, the San Pedro DO'il'lltown and vVaterfront Task Force, neighborhood coun- cils, the chamber of commerce, and business and labor u..'1ions are added to the mix. even more lay- ers and interests emerge. It would be easy to suggest yet another overarch. ing organization or even an entity with specifically focused "joint powers" to address these issues. Yet. in the panel's opinion. what the community needs is to streamline and simplify. 12 7-41 This report provides two very specific recommen- dations regarding how to organizationally mobilize to implement the panel's key findings. These are: . the creation of a new limited-purpose entity- the San Pedro Community Waterfront Trust- a nonprofit association whose sole purpose is to hold, improve, and maintain dedicated public lands on the waterfront, including a promenade for the use of all citizens; and . the transfonnation of the San Pedro Downtown and Waterfront Task Force into a pennanent organization to coordinate the implementation of waterfront and downtov,'1l development in San Pedro. These recommendations are described in more de- tail in subsequent parts of this report. Additional suggestions include sharpening the focus, the methods of operation, and timetable of the two largest eAisting organizations-the Port of Los Angeles and the CRA-regarding directed devel- opment initiatives in the waterfront area and the core dO,",l1tOi,.V'1l. There is an entrenched mosaic of organizations with direct responsibility for or tangible interests in the future direction of and development activi- ties along the waterfront and in the adjoining core community "uplands." The panel's approach is simple: to build on the strengths of the existing organizations and to supplement only where there is a logical or unfilled need that is not likely to be well satisfied by existing institutions. An Advisory SelYiGes Panel Report an Pedro's history as a port hub, a fishing village, and later as a Iivelwork town domi- nated by the port is still in evidence as it has transformed into a multifaceted resi- dential bedroom community, San Pedro's identity is still closely tied to the port, In the context of the greater Los Angeles area, the port makes a tremendous economic impact throughout the region, International trade rela- tions through the port are a vehicle for jobs, a source of direct revenue for the city of Los Ange- les, and an important component of the California and U.S. economies. It is a symbiotic relationship in which both the port and the community of San Pedro dramatically benefit or suffer at each other's hands. San Pedro is also connected to greater Los ,..tUlge- ies. YetI San Pedro has not shared in the dynamic growth of the overall metropolitan area. With a population of 9. '7 million, Los _4..ngeles is now th~ lar.gest Clty m the United States. The city has an unemployment rate of less than 5 percent. which fueis an ongoing demand for quality housing from an ever-rising tide of new residents flocking to a relatively healthy Job base. San Pedro, however, has not captrn"ed its share of new residents or businesses. San Pedro commuters drive to mili- tary bases; office workers drive to dovvntovm Los Angeles, Long Beach, Torrance. and other south- ern California business centers; and service work- ers drive to the airport. San Pedro is well located. providing residents ",ith convenient access to the major employment centers in gyeater Los Ange- les, but it is not positioned to capture the residen- tiaL retail, or office market overuow. San Pedro's strengths are clear and marketable, and should be built upon. The town has interesting architecture and beautifully restored buildings. such as the Warner Grand Theater. a 19308 a.."'1: deea mOvie theater that is often used as a set in the production of iihns. The museums. the Korean San Pedro, California. September 22-27, 2002 Bell-given to Los Angeles in 1976 by South Korea to symbolize the friendship between the two countries-the ships, the fascinating visual show of a working port, the distinctive restaurants, and the flourishing arts community are assets that enhance the quality oOlfe and define the character of tlus place. Most important, San Pedro has per- sonality. To recognize San Pedro's market potential is to embrace the fact that approximately 40 percent of San Pedro's residents are Hispanic and that this segment of the community is as integral to San Pedro as the Port of Los Angeles. Greater Los Angeles has nearly double the number of Hispanic residents of any other city in the nation-4.5 mil- lion. This demographic reality is reflected in the San Pedro community. WIthin walking distance of do",-,-utov,rn, 68.5 percent of residents are Hispanic. The presence of thi, ethnic group continues San Pedro's rich history as the home of hardworking immigrant farnihes. If the town's founding families and community leader, regard the Hispanic com- munity as an obstacle. or regard it as irrelevant. then San Pedro will not realize its captive buy- ing power. San Pedro"s dOlNLlto'livn was once thriving, with family-o~'Tled businesses and destination retail a':. Ports O' Call Village at the harbor. As the compo- sition of residents living in San Pedro changed, a radical transfonnation or the retail industry was happening simultaneously. San Pedro's history as a fishing village and a company town dominated b~' harbor workers gave way as immigrants moved in and low-incomE housing was built, and affluent second- and third-generation residents, seeking a suburban lifestyle, crossed Western Avenue. Downtowns in every city across the country lost customers to malis as the population shifted to 7-42 13 't e-':+--- ." suburbs. Nowadays, as American lifestyles con- tinue to change, malls are feeling the squeeze fi'om big-box retail, with Wal-Mart leading the charge. San Pedro's average household income is below the national average. Nonetheless, approximately half of all residents within walking distance of downtown have household incomes more than $50,000 and 41 percent are white-collar workers. ~4Jso. upscale city singles between 25 to 35 years I of age have discovered San Pedro. finding it an attractive and fun place to live. San Pedro is grovving at less than 1 percent a year. It is not declining, nor is it surrounded by outward growth alATay from tOlATTl. High-income gTolAih is creeping ever slowly around the edges of \.V"estern Avenue, along the coast. and inward. Existing retailers in dOVllltO"Vn San Pedro can pro- vide a base upon which to reestablish the business district as a pedestrian destInation. F or this to hap- pen, the area needs to be repositioned as a bou. tique shopping area, with specialty tenants cater- ing to tourists and local residents be~'ond Gaffey Street. CmTently, foot traffic from the waterfront to downto"rn is not significant. San Pedro's do'WTI- town can be tied to its waterfront, provided that waterfront retail uses are complementary and en- hance the overalL San Pedro retail experience. DOwntOVlIl lies outside San Pedro"s main traffic corridors-Gaffey Street and Pacific Avenue. Its restaurants and stores are visited as destinations 14 7-43 or because of the cross-flow of pedestrian traffic. Major retailers that serve moderate-income pa- trons can capture this the market more effectively on Gaffey Street than on Seventh Street. Tourist- oriented retail can capture cruise ship travelers most effectively at the waterfront, especially if it is located in a pleasant, open departure area. Therefore, if downtown is going to be revitalized into a vibrant, active destination, the chamber of commerce must coordinate planning, marketing.. and management efforts with the port. San Pedro's restaurants are core retail anchors. The unique and friendly gathering places that fea- ture ethnic foods constitute an advantage for San Pedro in the competition with predictable chain restaurants. With their diverse atmospheres and clienteles, restaurants such as Papadakis Taverna, the Fish Market, VIllale & Ale, Ante's Croatian Restaurant, and Sacred Grounds coffee shop could not be re-created elsewhere. Successful restaurants in San Pedro add to the authenticity, character. depth, and allure of the reo tail environment. They are also pivotal to attract- ing customers from the cruise ships, from the other side of Western Avenue. and from throughout the greater Los Angeles area. Ports O' Call Village is obsolete, yet 72 percent of San Pedro's residents say it has good restam'ants. No trendy themed chain restaurant is better for San Pedro's retail market position than its long-term. family-o'Wlled and -operated gathering places. San Pedro can build upon this traditionallegac)'. Indeed. the seemingly strong sales volumes of the existing restaurants are the most credible marketing tool available for attracting significant upscale retailers. Because the city is biessed ",rith a vibrant arts com- munity, San Pedro's galleries also are leading the way to creating a unique retail destination. The area across from the Los Angeles County Court- house shows what first needs to happen for the do\V-ntown to rebuild into a pedestrian-friendly retail corridor. Dovmtown merchants that serve niche lifestyle interests, such as the local \Vine shop, can drav;- from both area residents and tourists, An Advisory Services Panel Report luring them from the concentration of entertain- ment uses and restaurants at the port. Upscale retailers seek locations where they can hit the bull's-eye of maximum density of high-income residents. These retailers view San Pedro from the context of covering the Los Angeles market. San Pedro's residential market is not yet strong enough to justify a retailer to open a separate lo- cation on this peninsula, and the tourist market has not been established to effectively compete with the destination offerings in Long Beach. For example, when a Border's Books & Music or a Barnes & N able evaluates the greater Los Ange- les market, it zeroes in on how to locate closest to the greatest volume of college-educated, high-in- come households with high purchase rates. In the absence of ideal locations within the strong- est residential base, retailers locate where other retailers are already achieving high sales volumes. San Pedro does not yet have the residential or the tourist base to support retail as the lead economic revitalization tool. How'ever, population and in- come gro,-,,'th signals to retailers that an opportu- nity to locate in an up-and-corning residential and tourist market exists. By revitalizing its housing stock and welcoming new residents. San Pedro '\Ivill be taking powerful steps toward effecting re- tail economic development. Retail revitalization from the inside out. is more likely to be successful in San Pedro because it is already slowly happening. Business incentIve pro- grams to encourage startups should be in place to foster entrepreneurship and to stimulate demand among potential tenants for vacant space do"",.1. tovm and at the waterfront. Vacant buildings around downtovm and in \iev.' of the connection between the waterfront and aowntoWTl may be prime retail locations one day. Funds to purchase and provide buildout expenses and financing for key locations to connect downto'Wll to the water- front should be considered. Curb appeal is difficult to maintain in a retail envi- ronment filled Viith public streets and independent San Pedro. California, September 22-27. 20C2 owners, To the extent that retail in San Pedro can be treated as though it were investment property, managed, maintained, and operated as a cohesive shopping center, the prospects for attracting and retaining quality retailers will improve. Safety, cleanliness, consistent signage, frontage condi- tions, parking availability, and marketing cannot make a retail district successfuL but their absence can cause it to fail. Professional management would need to include walking safety patrols and the provision of fre- quently cleaned public restrooms. Training and quality audits for service, display, merchandising, and coordinated marketing programs would help to unify retailers. If the waterfront, local cultural attractions, and the downtown are marketed in unison, they will all benefit from the increased perception of critical mass and from cross traffic. Furthermore. the downtown district should be clearly demarcated at both of its entry points. There are no postcards, T-shirts, or coffee mugs emblazoned 'With images of San Pedro; it is not obvious how to best spepd a day and a dollar in San Pedro. . Housing starts are an alternative tool retailers use to assess a market when sales volumes or de- mographics de not match spending power. The Los Angeles housing market is so undersupplied that national housing reports currently list the va- canc~- rate as .'virtually none." Studies completed in 2002 for San Pedro estimate that the housing demand could support over 3.000 new units, yet 15 7-44 there may have been fewer than 350 net new units added in the past ten years. Only 27 permits were issued in 2001, "ith the first six months of 2002 on par "ith this pace. Housing growth stimulates commercial gro"th. San Pedro's housing market is out of synch with the greater Los Angeles market. The residential buying power necessary to attract and support viable retail downtown and at the waterfront lies on the other side of Western Avenue. The devel- opment of market-rate intill housing in quantities large enough to counter the disproportionate share of low-income and special needs housing that has been allocated to San Pedro can happen only if there are parcels large enough to create an im- pact. An infusion of families to counter the nega- tive perception of gangs and transients is possible only if the housing stock and the community are attractive and well maintained and there are ade- quate educational opportunities. With a 40 percent vacancy rate in the San Pedro office and industrial market area, office develop- ment is not recommended as a strategy for eco- nomic development at this time. Thougn not a priority~ new office development constitutes a potential option if certain conditions are met. Re- sponsible office development in today"s economy involves preieasing or preselling to stable, credit- worthy businesses with the potential to provide livable-wage jobs for local residents. Economic development recruiters could use tax incentives and other resources to attract large- footprint tenants who would gain some advantage by locating near the port. Potential tenants in- clude vendors, suppliers, investors, lenders, seI'. vices providers, and companies that already do business with the port. Relatively proximate to Los Angeles International and Long Beach air- ports, San Pedro is a commutable distance to other major employment centers in Los Angeles, providing an additional advantage to prospective office tenants. 16 7-45 San Pedro's waterfront can and should be the cat- alyst for the community. There are numerous ex- amples of successful waterfront projects all along the West Coast, indeed allover the world. Most of the successful uses are a combination of parks, public facilities, and commercial services. An active container pOlt does not preclude the po- tential for active recreational areas. Charleston, South Carolina, for example, is the second-largest container port on the East Coast; it also has become one of the nation's most upscale tourist destinations, celebrating its military, industrial, social, and ar- chitectural history. The most appropriate uses for San Pedro's waterfront are those that preserve the authenticity ofthis community, provide active recreational opportunities for residents, and offer retail uses and visual entertainment for cruise ship tourists. In the panel's view, this is a worbing waterfront that can celebrate the harbor and its heritage. The waterfront should not become a sterile envi- ronment. It also ShOUld not be dominated b)' chain retailers that can be replicated at Long Beach or anyv...here else. The waterfront car. be an economic engine in many ways. Because children constitute 25 percent of San Pedro's population: the waterfront needs to be a place where things can be touched and climbed on, and this fact should be reflected in any devel- opment plans. The follovving is a partial list or po- tential active and passive recreational. retail. and entertainment uses ror deveiopment on pOrt land: . parks ana trails: . museums and aquariums: . public art galleries: . intel~retive historical and educational opportu- nities: . boating, windsurfing, and hang gliding: . vrildlife viewing: . festival/staging: All AdYisOlY SelYices Panel Repon . tourism-oriented retail and restaurants \-vith outdoor seating; . athletic facilities; . fishing/fishing charters; . retired naval ships, ~rr.ecks, and submarines: . botanical gardens; . a cooking school; . carriage rides; San Pedro, California, September 22-27, 2002 . a chapel; . a band shelVamphitheater; . markets-fish, produce, flowers, candy; . a resort hotel; . shipbuilding; and . a marinaJnautical shoplbass pro shop. 17 7-46 lanning and design are central to many of the issues confronting the community of San Pedro, and they also provide potential solutions. The historical physical planning grid was an effective link to the oceanfront envi- ronment for early businesses and residents. Over time, industrial, port, and transportation uses have disconnected the waterfront from the historical downtown of San Pedro. Reclaiming the physical relationship between the San Pedro community and the waterfront is essential to physical revital- ization, in the panel's opinion. Nwnerous studies have been conducted over re- cent years. The Pacific COlTidor Redevelopment Project Report, the Beacon Street Redevelop- ment Project, and even the San Pedro General Plan are all examples. The Pacific Corridor Rede- velopment Project Report, adopted in May 2002, estahlished a clear mission and comprehensive goals for most of the traditional downtown San Pedro community. Calling for neighborhood pres- ervation and rehabilitation, it identifies thematic elements to tie the downtown to the harbor. These plans have been thoughtful, and many of the con- clusions reached are similar to those of the paneL However, the planning process has been discon- nected, with uneven implementation. Recent visioning exercises through community workshops, and advisory groups have made signif- icant progress in breaking dovm barriers among the various stakeholders. These efforts also have identified divergent opinions. It is time to build on the substantial consensus reached through studies like the WATCH plan and to continue to resolve points of contention. As the panel learned during its visit, the "aligrnnent" or political interests and the desire of community members to trust one an- other, city institutions, and elected leaders have never been better. Immediate planning initiatives should lay the foun- dation for the final implementation of the following: 18 7-47 . COlmect the dOvvlltowl1 grid directly to the wa- terfront; . introduce clear gateways to the community \\ith wayfinding signage while establishing a strong entry along Harbor Boulevard; . establish distinctive subdistricts along the prom- enade, including a cruise tenninal, a maritime museum and civic center, a festival park, a fish- ing village, and a marina; . create a new Crescent traditional neighborhood development; . define the downtown commercial area, with Sixth Street a8 the "main street/' Pacific Avenue as the "market street," and Seventh Street as the "artists' walk": . establish "addresses'~ for residential neighbor- hoods and preserve and strengthen community connections: . connect cultural amenities vvith open space and recreation resources; . develop parcel H -2 as mixed-use downtov..'1l hous- ing "ith ground-floor retail: and . encourage residential infil1. Clearly, the powerful concept of the promenade. engendered by the WATCH planning process. has established an effective symbol for opening acces.:: for the San Pedro com!nunity to the sea. The prom- enade concept allows for the introduction of a mix of compatible, nonindustrial uses, both pubhc and private, along the waterfront. including recreation, retail, and restaurants as well as an e,:panded cruise terminal facility. a maritime mu- seum, public art, and the commercial fishing vil- lage. To be successful, this concept can be imple- mented with consideration given to the following priorities: An Advisory Services Panel Report P~ys,cai and Vi"ua' Cr~"c~nt Dis,;r'c; Fl5~lng "I~~; Entry/G~uway Main Cha~n~1 ~ T~c""n"l i9iand \r~-c,,"Y ._,,~< K"Y: Resid~ntial '1istociC C"n"Ocal BU5ine5s J;5t~i.;t with Prop05<::d Mix~d Jse Communi'tyWatl'lriront Park "u~liG Ac:cef>s c=:::=J Jn~titutionai or <'iJ~lic Buildin'3~ . Agree on the desirability and validity of the promenade-eA"tendllg from bridge to break- water-to be implemented in a series of phases over the next decade. . Begin detailed design of a specific section of the promenade immediately. . Identify the right construction "starting point." The portion of the promenade between the World Cruise Center and the Los Angeles Maritime Museum would provide significant synergy among the activities at the terminal, the mu- seum, and the restaurants and shops downtov.'1l. San Pedro, Califomia, September 22-27, 2002 :'owntow~ J~v~lopment SiU; . Execute the first segment "ith skill and keen attention to detail. The quality of design and materials used will be critical. . Ensure that this initial phase is concentrated and focused. Even though work might start on remediation, demolition, and construction at dis- connected points along the promenade, the first new phase must deliver a clear, coherent scheme that stands on its 0\\11. . Make the initial section work "ith improve- ments on Sixth and Seventh streets and Pacific 19 7-48 --' C~"t"e 5t...,,~t ] UR~SidenCial Nei~n~or!1ood UULJ EntrylGauw3y 1A --- I;ictocyr_ane"\ \ (W~:lnd'ng ! i! 0 (0) 0 0'f'C Av, ~DD DO 0>." IDDOOOO[ OD~[~\][ ~~8[jQJ~ ~ ~R'dCacL'" I~... _ I Parkmg I _ ~ ~ - L.!\. :ar:me I~useum Disuict F~ Station 20 7-49 Avenue to deliver a series of visual experiences that "tell the story" of San Pedro. . Make the design flexible to overcome technical and operational impediments) such as access to ships. . Deliver recognizable 'idistricts'" such as the sug- gested Downtovm, Museum, and Crescent dis- tricts, adding variety to and unique signatures for each segment. . Program the promenade to link existing resources such as the maritime museum, the aquarium, the fishing fleet, the beach, and the pier. These existing elements should be simultaneously im- proved and expanded. . Maintain an appropriate civic character while delivering the unique, authentic experience of an active seaport with a significant historical legacy. . Use the promenade and Angels Gate as icons to help establish a "San Pedro brand identity." In addressing the development of the waterfront, the panel has delineated the following develop- ment districts: District lA, District IB, the Mu- seum District, and the Crescent District. For the panel's purposes, the central business district runs from Harbor Boulevard to Pacific Avenue. The l'orth Opportunities Diagrams Ion pages 19, 20, and 21) delineate these districts and provide an overall view of the panel's recommendations. Separated from the downtovm by Harbor Boule- vard, District lA stretches from approximately Third Street to the cruise terminal. F or District lA, the panel recommends: . redeveloping Harbor Boulevard as a strong entry so that it does not cut off the dO\\'T1toiNI1 from the waterfront; . developing a mixed-use project in the area south of the cruise terminal: . internalizing the parking structures for the mixed-use development and the cruise terminal, An Advisory Services Panel Repon lining the structures with commercial and retail uses to screen parking; and . designing public access to the promenade and the 'waterfeont that is sensitive to the security needs of the cruise terminal. The Museum District encompasses the area sur- rounding the Los Angeles Maritime Museum be- tween approximately Third and Ninth streets. For the Museum District, the panel suggests: . locating local museums in one area, giving them an identity; . a110'Wing the Los Angeles Maritime Museum to expand its collection into a new building along the promenade; . considering opening the old ferry terminal that is currently a part of the Los Angeles Maritime Museum, if the museum has the opportunity to expand; and . weaving pedestrian waterfront access along and around the existing Los Angeles Maritime Mu- seum building. providing a waterfront prome- nade wherever possible. District IB extends from the edge of the Museum District at approximately Ninth Street to the edge of the main channel, including Ports 0' Call. District IE reinforces the entry to the port. The panel recommends: . developmg a port museum or other public build- ings; . displaying an entry sculpture that will provide a signature statement and an opportunity for new art; . creating a waterfront park where people can watch the boats-and where c..ruise ship passen- gers can watch the people in the park: and . erectmg a collectIon of public interpretation pavilions in the park to showcase information on the port, local history, or the fishing industry. The Crescent District follows Crescent Avenue to the Cabril10 Marina. The panel has based Its recommendations for the Crescent District on the assumption that the port's plans for the Cabrillo II San Pedro. California, September 22-272002 ,:>~y5;'/II"MVi5ual Nc'qhborhoo,," Lin~"q"e Cr~;>cent Di.,tc;c~ Fi..hjnq F",~-c / marina MIl proceed in the near terTIl. However, the panel believes that this land is too valuable for land-based boat sales aud would be better used for residential development. The South Opportunities Diagram (on page 22) shows the panel's contin- ued promotion of the promenade and waterfront access where possible along the east/west channel. It also contains the panel's recommendations for developing housing below the bluff in a manner that creates a waterfront subdistrict. Residential development should include the following: . a street plaza; . a public green; . linkages to the waterfront and park; . ties Into existing circulation pattern; . building mass designed with sensithity to views; and . a pedestrian-friendly layout. The panel suggests that the fishing fleet be main- tained, 'With the addition of a retail fishing store to complement the commercial fish market. The panel did not specifically address Warehouse l. However, the panel believes that the financial merits of the adaptive use of this building should 21 7-50 -.~("" C\'la.""~\ '>N~~~ ;o..~\'I\"~ f"~"'" "'~~? ' be evaluated; if reuse is not cost-beneficial, the structure should be removed to permit a complete redevelopment of the area and the watern'ont. , For the H-2 site, the panel recommends the devel- opment of a three- to four-story mi.xed-use build- ing with street-level commercial space topped by residential units. In the illustrations on page 23. the panel suggests a design that focuses on an entry courtyard, with covered arcades lining the commercial space on three sides of the structure with an architectural style and roof lines that re- flect those of the local area. A three- to four-story building of this type can pro;ide a transition from the current stock of historic two-story structures to the large commercial buildings from the 1970s. In terms of the sequencing of physical develop- ment. the panel recommends focusing first on the promenade and facade improvements in the cen- tral business district. New commercial uses in Dis- trict lA should be developed next, connecting the cruise terminal to the bottom of SlAih Street. De- velopment in District 1B should upgrade existing restaurants and shops and introduce new ones at Ports 0' Call Village. Then the development of civic buildings, such as an annex for the maritime museum and a waterfront park, should follow. Z2 7-51 J> ,~ o _ Em:;y5tatu~ K~: "ropos."dF;;rKlana R"e;id"ntiill ~n1;ry/G;;t"""ily It is difficult for ;isitors to locate downtown San Pedro and the waterfront. As depicted in the left- hand illustration on page 24, the entrance to the historic central business district and the water- front lies well outside these areas. Opportunities exist along the primary vehicle circulation routes -Harbor Freeway, Gaffey Street, and Harbor Boulevard-to use signage to create "gateways" leading visitors to the downtown and the water- front. Vehicle access along Pacific Avenue is not welcom- ing. There are few, if any, signs directing motor- ists to the waterfront and its amenities. Improve- ments in access and wayfinding can make San Pedro easier to visit. Consideration should be given to the quality and location of signs to achieve the greatest impact. Botb primary and secondary gateways pro,iding vehicular and pedestrian access to the San Pedro downtown and waterfront are identified in the right-hand illustration on page 24. Signage should be used at these intersections to direct visitors to the downtown, the waterfront, and parking areas, giving consideration to pedestrian circulation routes. The themes for the area should be noted on the signage. An Advisory Services Panel Report Public infrastructure improvements designed to link the dOlmtowl1 and the waterfront should in- clude pedestrian crosswalks, signalization im- pro\"emems, clear signage for directions, way- finding and branding, parking upgrades, facade improvements along Sixtn and Seventh streets, open space development, and tree planting, The paners vision for ~hese improvemems as they relate to Harbor Boulevard is deplcted in the illustration on page 25. Clustering improvements along the main roads in the centra! business district that lead to the water- front can provi.de greater visual impact, and the use of signage can characterize San Pedro as a place Viith an identity. Facade improvements, storefront avvnings, and other elements that can tie together the restaurants and the shops can create a welcoming atmosphere. Guidelines pro- motmg good design should be set using the man)' examples of building facade and streetscape im- provements that exist in dOVvl1tOv,rn San Pedro as benchmark.s to evaluate proposals. Residentia! development, especiall)' new market- rate housing. is an effective tool to stimulate exist. ing commercial and residential areas and act as a San Pedro, Caliiornia, September 22-27,2002 ~'~"~--- catalyst for new retaiL office, and tourism uses. The statutory prohibition on housing as an ele- ment of the California State Tideland Trust iE a se- riou, obstacle to the inclusion of housing along the waterfront. However. the planning benefits of this inclusion. especially in the suggested Crescent District, are significant. Delivering a new intown neighborhood ~ith traditiona! neighborhood char- acter and at a scale appropriate for a true pedes- trian environment, linked to the adjacent recre- ational and marine uses, would be a significant symbolic step forward in San Pedro's rebirth, At the same time, developing both market-rate rental and for-sale housing in the downtown dis- trict. especially as a component of a mixed-use de- 23 7-52 _/(~~~ '==-~'~ '-_ "",,--, L ~ '=- ~- "\\' F7 "'i=i~~j I~ Jb I ~ III \ ~ I I \\~ ' !L'r\V lL ~~~( ~ --' \ ...."..~ \\ ~\\ ~-";/,/I, / / 1,Ij / ~ / 'I / i '-'~!'I~ ~;;..v ~"" I ~Gt...., :,;.",W.,.~",O""""'" l: !,' """''',,''.''"''''.:''"'",10' veloprnent on the H -2 site. and as new discrete m- fill elements and on the upper floors of renovated commercial buildings, can all activate ground-floor retail uses throughou: the dO~Tnto~l1 area. This proposed new urban infill and expansion, both at. the waterfront and in the dO~71tO'W'Tl com- mercial district. must maintain the authem:icity of the San Pedro experience to excite visitors and comfort residents, A strong deSIgn recogniz- able to San Pedrds longtime populace can incor- porate these new elements into the existing fab- ric and intensi..fy, rather than destroy. the area's unique ambience. The panel strongly recommends that tired for- mulas for predictable generic waterfront develop- ment should be avoided. I~ feels that a fresh, yet classic look can greatly enhance the atmosphere 24 7-53 ~ U LJl,. J IL.Jt.J ''']0 DO DC '-J 0 0,0 DC ""~ II i"'\CCl r -'~'C,' ,- , ILl UJ IJ J' . ,. -loot 'JD~C ""'-"':=J 0 [ \\] """"'~ ,\ .._,,,,..., ~ ~J ,_ ~~ - ~ ,~ "~"'~'" ~",I':'~"""'" '""o"..."'EO""I'u...... "~"'.""o','",..,k"'""".. (')""'."...",,"'.""'...."''"00 and character of a new development while retain- ing the historical roots of the community. Revitalization of the downtown business district, focused primarily on the link between the water- front and improvements to SiJ..'th and Seventh streets and Pacific Avenue, must be supported by strong and purposeful design guidelines. Some el- ements of the necessary guidelines are already in place, but responsibility for integrating elements into a clear. concise document within an appro- priately defined district, including both the exist- ing commercial areas and the waterfront, should be placed in the hands of a single coordinating agency. Appropriate revisions to zoning specifi. cations as well as the new design guidelines need to be implemented through the creation of an overlay district. An Advisoll SelVlces Panel Report Buffer Pedestrian Walkway '~"'~ /~. i.'\V f[j~~U ( i ;! I L1 J f- Harbor Finally, the execution of the proposed open space and new development of the waterfront will pro- vide clear evidence that a new culture of trust and open communication has become an integral part or the communityls character. San Pedro. California, Septernber 22-27,2002 7-54 ~ ~?" "f,~I~;, Boulevard -7 r ,~ -''1 (jfl "U\'.' / ((') v, iii," / ,J if,. \\ f \ K \, \ (\ :1, ~ )1 " 1,1 i fJl ^ ~, .~ ~~;t:;t.~;;~;;I~t~G\I' Combined P edestria n! Ree reatio n Path 25 uccess in developing the San Pedro water- front and revitalizing the downtown will depend more on institutional strategies and attitudinal alignment than on real es- tate per 5e, in the panel's opinion. San Pedro has been characterized as the "last southern Califor- nia beach community to revitalize." According to many of the organizations and individuals inter- viewed by the panel, institutional baniers have impeded redevelopment. Although these baniers have started to fall, trus portion of the report ad- dresses a strategy and implementation blueprint to reconnect the waterfront with the community. At the core of any publicly sponsored development initiative is a corrunon vision and a unified frame- ,I work for acruevement. The panel endorses the communit)"'s VlBion of reconnecting the San Pedro community to the waterfront. In this section on development strategies and implementation, the panel presents an outline of a framework for the community to achieve this \ision. During the panel's visit. community leaders and stakeholders repeatedly expressed frustratior, regarding prior failed development efforts as well as institutionally imbedded conflicts tha: thwart progress for unified development. Based on the panelists' professional experience and ob- servations, the folloVling are offered as guidelines for success: . Establish a trust to ensure public access to the waterfront. . Eliminate confusion among stakeholders. . Reduce the number of committees with over- lapping and missions and members. 26 7-55 . Focus more on specific actionable steps and less on process. . IntegTate all planning and development to spe- cifically address the connection between the waterfront and the community. . Build on the community's strengths, using the port as an educational opportunity-marine his- tory, arts, and cultural resources-and promot- ing existing tourism as well as the availability of reasonably priced real estate, These general guidelines can serve as the mortar that holds together the building blocks of a sus- tainable development strategy. At the most basic level, the panel recommends a development strat- egy that includes the following four anchors. Successful ousiness ventures rely on strong part- nerships of mutual benefit and respect. Real estate development on the waterfront car, create new buildings and healthier businesses-but these eco- nomic efforcs "ill fail if the)' are not based on a relationship or trust and respect between the port and the community. The port and the commu- nity need to commit to a process that is open and participative. Such transparency is vital to build- ing trust. The panel recorrunends, as the first step to round- ing this relationsrup. the establishlnent of the San Pedro Communit)" Waterfront Trust to hold the public areas ofthe waterfront for the benefit of the public at large. The process for capturing eco- nomic value at the waterfront will succeed or fail depending on the underlying strength and 8US- tainabilit)' of the partnersrup between :;he port and the community. The port's mandate for these lands, to be held in ~rust for the public, is essentially port deveiop- ment oriented. Trus mandate serves the port well An Advisory Services Panel Repor! \"Then it focuses on its basic mission of cargo, trans- shipment, and customer service to the interna- tional trading community. On the other hand, it is the panel's opinion that the port is inexperienced and not well equipped to focus on public redevel- opment of land that is more appropriately used for open space and recreation as well as for cultural, cOlmnercial, and residential uses. The panel believes that the revitalization and the long-term economic health of San Pedro rely on early and aggressive development of market-rate housing adjacent to the waterfront and dO'WTltoVi11. Currently, housing land values substantially ex- ceed land values for retail or other commercial uses. By promoting the development of housing, the community will capture substantial economic value that could be used to fund other activities. In addition, an influx of residents will create de- mand for goods and services, contributing to the economic viability of retailers both on port propM erty and in downtovm San Pedro. The panel believes that the port's commitment to cease cargo handling and storage operations on the west side of the channel goes beyond a desire to repair its relationship with the community of San Pedro. This is a good business decision as well, because a vibrant waterfront and downto"ll will enhance the porfs economic strength by cre- ating significant real estate value, increasing the \~ability of businesses operating on the water- front, and improving the port'S community image. These are legitimate business objectives that con- tribute to the port's bottom line. This economic re- ality warrants the pro\~sion of port funding for the promenade and the waterfront recreation area. U pfront investment from the port is particularly important, as this is the foundation upon which all further investment by other parties will depend. It is beyond the panel's scope of work to quantify the level of upfront investment that may be re- quired. The panel suggests that the port's commit- ment, at a minimum, should comprise the follow- San Pedro, California, September 22-27, 2002 ing: the public lands it controls on the west side of the channel for the bridge-to-breakwater prome- nade; and at least 75 percent of the capital funding for the mitial improvements for the first phase of the promenade and the lands for major develop- ment sites in the Crescent Area. The panel's impression is that San Pedro hail been stuck in a Kafkaesque world of endless planning. Many things have contributed to this scenario: a lack of cooperation between the port and the com- munity; fear that development "ill contribute to the notion that San Pedro is a social dumping ground; and concern that development "ill fur- ther destroy the character of the downtown. Circumstances, however, have changed: the rela- tionship with the port hail the potential to grow: there is consensus on the need to preserve the character of the d01N1ltown; and the panel believes that market forces can be harnessed to produce investment that maintains downtown's authentic- ity. The development and implementation strate- gies are designed to capitalize on these changed circumstances and to move as quickly as prac'Lica- ble to capture investment and value. The implementation of these foW' strategic initiaM tives \\111 require cooperation among- the Dort. the chamber of commerc~, the eRA, and the ~ommu- nity. The continued ieadership of Councilwoman Hahn, representmg the 16th District, and the mayor will be critical. This leadership ~~ll be par- ticularly important in the early stages to 8llS1ITe that sustainabie relationships and cooperation are firmly established. The San Pedro communit\: has an advama2'e in having an organiza-cion al~ead~' in place th;t is charged with the coordination or existing plans ror the waterfront, dovvntO\VT, redevelopment. and in- tegTation of the panel's findings and recommenda- tions. This entity-the San Pedro \^,raterront and Dow'1ltmvn Task Force-would be the appropriate organization, in the panel's opinion, to Ol,Tersee a coordinated development process for the water- front and the downtown. TIllS organization can serve as the pubiic forum where transparency can 27 7-56 be incorporated into the implementation process to build trust and accountability. The charter of this group and its membership will need to be ad- justed to reflect this expanded oversight role. The panel suggests that, as a first step, the port, the city, and the CRA formally ratify this new role for the task force. This task force has been instru- mental in promoting the integration of any cohe- sive waterfront and downtown development plan. Originally, the task force was anticipated to last six to eight months. However, the panel recom- mends the extension of its life and the expansion of the sponsor base with the addition ofrepresen- tation from the Los Angeles Visitor and Conven- tion Bureau and the Department of Cultural Af- fairs. The three initial goals already defined by the task force should be broadened to include ongoing coordination of city and council resources related to the development and maintenance of the water- front and dovmtown projects. The organizational corollary to the task force is a new permanent organization-the San Pedro COr.1lllunity Waterfront Trust. The panel strongl)' recommends that this new entity be formed "' a private, nonprofit organization with fiduciary responsibility for the deveiopment and the ongo- ing operation of the promenade and public open- space areas. The trust would create a new framework for the management and development of the public areas of the waterfront. This new framework is essen- tial for success to be achieved in the private devel- opment of the waterfront and in the re\italization of the downtown. Having a trust will foster feelings of certainty about the future, which is important when eliciting in- vestment from the real estate community. It also would create the conditions necessary for maxi- mizing community support and outside funding for the promenade and the recreation area. The trust would be directed by a board composed of seven members who represent the port, the 28 7-57 city, and community interests. The board is ex- pected to consist of the following: . the port-two members; . the city (mayor or appointed mayoral represen- tative, or councilmember from the 15th Dis- trict)-two members; . the maritime museum/aquarium-one member; and . the community-two members. In addition to the governing board, the day-to-day operations of the trust will be supe!'\~sed by three senior staff consisting of a chief executive officer, a chief financial officer, and a chief operating officer. The senior staff would be hired by the board mem- bers and would serve at their discretion. The panel suggests that the port lease those areas outlined in the recommended waterfront devel- opment area, consisting of the right-of-way for the promenade and the public open spaces. on a long-term, nominal basis of 50 years or more ""ith renewals. The port will retain control or all its lands outside of the public rights-of-way for the promenade and the watersidE: uses and physica. structures such as the bulkheads and the exist- ing marina. The panel encourages the parties to let :he mu- seum and aquarium foundations participate in the trust. As the partnership evolves, opportunities for synergy ",rith the truSt and the foundationi3 will be grea:. It is recommended that the trust staff contrac: the design of the improvements for the water- front promenade ami significant public: areas. In addition. the trust would oversee the day-te.-day operations and maintenance responsibilities to outside vendors. The panel emisions ~he port to be a logical SOlITce of sta.>1:up funding for the trust. .ith trust staff immediately commencing private funding efforts and identification of other funding sources. The ac- tivities of the trust would be funded through port and community contributions and assigned devel- opment revenues. A cost-sharing agreement be- An Advisory Services Panel Report tween the port and the trust 'Will need to be an early part of the implementation process. This agreement would create incentives for the trust to seek outside funding for the development and maintenance of the promenade and recreation area. The trust will direct subsequent private fundrais- ing efforts for capital to extend the promenade. and the port will match all raised funds. Outside funding potentially can come from the fed- eral and state levels, such as the California State Coastal Conservancy. Other foundation support may provide significant grant and fundraising op- portunities. especially if tied to programming at the maritime museum and the aquarium. Funding may be available through the following public and private sources: . the Public Improvement Arts Program, or Per- cent for Arts progJ'am, which requires 1 percent of the capital improvement cost of all construe- tion, improvement, or remodeling undertaken by the city to be allocated for public art; . existing capital improvement bond issues; . the Los Angeles Convention and Tourism Bureau; . extant economic development resources for business development; . private investment; . an expanded business improvement district and . public and private grants. The trust can also be the vehicle for harnessing community financial participation. The recently completed Fisherman's Memorial was funded by over $200,000 of community donations. San Pedro has deep roots. It is a community that, given the opportunity, could strongly embrace the chance to financially support the revitalization of its water- front. This can involve sponsorship of selected seg- ments of the promenade by individual community organizations and entail named parks, benches, or other landscape features as has been pursued in Charleston, South Carolina. San Pedro, California, Septernber 22-27, 2002 The port needs to move quickly to establish a capi- talline item for the construction of Phase !, con- sisting of the promenade and arrival plaza. This upfront commitment of the Phase! rights-of-way and funding for the promenade and the recreation area south of the maritime museum is necessary to create value for both the retail and housing de- velopments. Without this commitment, establish- ing the momentwn of ongoing private real estate development at the waterfront ",rill be a challenge. Early funding of District lA, which extends from the cruise ship terminal to the maritime museum. including the arrival plaza, is a vital prerequisite to capitalizing on real estate development oppor- tunities. This initial port investment must consider how to address the ongoing funding commitment neces~ sary to maintain and develop the land controlled by the trust. The panel recommends that the port assign development revenues from the retail and housing development areas to the trust, thus sub- stantially lowering its Ijet obligation. Housing de- velopment, in particular, is likely to provide both substantial value and significant funding. Funding formulas should also include incentives for maximizing outside resources so that the trust "ill aggressively pursue federaL state. foundation, and community support. Furthermore, the fund, ing agreement must recognize the need to create long-term, ongoing, and sustainable funding for the trust. The process for proceeding \Vith private develop- ment of the retail and housing sites needs a credi- ble framework. in the panel's opinion. This devel- opment process must be predictable-to the development community and to the San Pedro community. The panel suggests that the San Pedro Downtown and Waterfron: Task Force assume prim..")' responsibility for coordinating this process. Tbe panel recommends new private development in three principal areas: a new retail. commercial, and restaurant center proximate to the cruise ship terminal; new housing in the Crescent Area: and 29 7-58 30 housing and adjacent development in the do'/m- town. The panel envisions the responsibility for puhlic sponsorship of the private development projects to be the port's, the waterfront taskforce's,' and the CRA's. The panel specifically does not rec- ommend the San Pedro Community Waterfront Trust to engage in or sponsor private real estate development; instead. this new entity will focus solely on public improvements and operations of public lands. and should not get distracted by pri- vate land development. To coordinate private development projects, the panel recommends taking five actions. As the panel's design recommendations indicate, a key contributor to the success of waterfront de- velopment will be its physical character and "con- nection" to the downtown. Before retaining devel- opers, the port and the community must adopt uniform design standards for the waterfront and the downtown. These standards need to comple- ment one another. They also should address issues such as functional connections of private property to the public use areas of the waterfront as well as architectural vernacular. building features, park- ing, building massing, and open space. These de- sign and development standards are intended to 7-59 create a compatible look and address an overall design character, rather than uniformity. Before any development proposals are made public, the panel recommends the creation of a common framework for evaluation and selection of development proposals and negotiation of agreements. This will eliminate uncertainty as to how the process works and the end result. Shortly after adopting design standards, the re- sponsible organizations-the port, the task force, and the CRA-should issue requests for qualifica- tions (RFQs) for private development of their re- specth"e areas of responsibility. The RFQ process allows developers to be evaluated based on their experience, ability to attract tenants. financial capacity, design capability, and ability to work with the community. This avoids a developer "beauty contest." It also is a lower-cost process for develOp- ers and is more likely, as a consequence, to elicit a greater response from the development community. After a transparent selection process haE been completed, the chosen developers should be asked to prepare specific site development plans. Based on agreed-upon terms and guidelines adopted prior to the selection process, these plans would be consistent with well-stated public objectives and baseline financial terms. This vvill fulfill the objective of a "seamless inter- face between the waterfront and the dovmtown" and will capture the ta., increment value of new private development necessary to ensure long- term financing and sustainability. Housing will be a principal economic engine of waterfront development and dO"'Iltown revitali- zation. Tbe panel calls specific attention to the housing sector in order to maximize its economic contribution to the waterfront revitalization and An Advisory Services Panel Repon reconnection process. It recorrunends that the fol- lowing four steps be taken. The Crescent Area housing development on the waterfront property has the potential to provide substantial revenue for use in developing the public amenities of the promenade and recreation areas. Other California ports have found ways to address the impediment cited by the Port of Los Angeles that the California State Tidelands Trust Act, passed in 1911, prevents the residential de- velopment of tidelands property. Because the de- velopment of housing is so important to the over- all economic viability of the waterfront, the panel recommends that the port immediately pursue all practical efforts to remove this burden. These include the following: a revolving fund to purchase underutilized industrial and commercial sites in and around the dOVi,'1ltovi11 and reconvey them for market-rate residential development; a revolving fund to preserve single-family mar- ket-rate housing throughout the Pacific Corridor Redevelopment .Atiea: and assembling sites for the development of market-rate housing in the do\vnto,-,'TI. These three programs focus on producing and pre- serving market-rate housing and~ thus, may neces- sitate the use of nonhousing redevelopment funds. Market-rate housing in the do~vnto~rn is vital to increase the spending power and thus spur addi- tional commercial development in the downtown. Development of the B-2 site as a market-rate, mid-rise. and mixed-use residential property can be an important early step toward repopulating the dO\\'UtovlI'.. The market evaluation section of this report gives little support to the notion that an office use is likely in the old Logicon huilding. The CRA should acquire and demolish this structure so that the San Pedro, California, September 22-27,2002 site could be used for development or housing sim- ilar to that recommended for the H-2 site. Consistent, thoughtful design guidelines are an important development prerequisite for the do,,",- town. The panel strongly recommends that these be adopted as a zoning qverlay to ensure the pres- ervation of dO\\'1ltown's character as new private investment occurs. The city of Los Angeles and the San Pedro Cham- ber of Commerce are cUlTently working together to revive the former Business Improvement Dis- trict IBID), which has been inactive for several years. TIllS BID can be a potent vehicle for the San Pedro revitalization strategy. Its main func- tion was to ensure frequent trash pich."Up in the downtown. Now, trash pickup and puhlic safety should be only a starting point. Current efforts should revitalize and expand the boundary of the BID and the scope of the San Pedro Old Town Business Improvement District to include the waterfront development area and a marketing program to handle the branding of San Pedro. The BID should also perform traditional tasks-street cleaning, trash removal, lighting, ehhanced public safety, signage, and physical maintenance. The panel recommends re,i,ing the BID \lith an urgent need to expand its scope and to include all stakeholders at the table. The effort to reestablish 31 7-60 the BID should move quickly ahead and comprise the follol<ing: . promotional events, marketing, signage, and branding ought to be undertaken; . the service area should be expanded to include Pacific Avenue; . retailers on the waterfront should be required to participate; . the chamber of commerce, the eRA, and the BID should work together to get an access plan implemented by CALTRA:iS and the city; and . the museum and aquarium ought to be in- cluded in the BID to coordinate promotion and marketing. 32 7-61 Currently, businesses in San Pedro's downtown lack the economic resources to support a BID with an expanded scope. The panel recommends that the chamber pmsue a three-year grant from the city to fund the startup costs of the rejuvenated BID with the commitment that it be self-support- ing thereafter. The addition to the BID of the re- tail businesses developed at the waterfront can contribute significantly to its long-term viability. Adding the prescribed waterfront retail, the mu- sewn, and the aquarium to the BID will make it more effective at branding and promoting the attractions of San Pedro. An Advisory Sel1ices Panel Report he waterfront has always been central to San Pedro's economic vitality. N ow, San Pedro has a unique opportunity to capitalize on powerful market forces to create a new, publicly oriented waterfront and new private de- velopment. The ability to take advantage of this opportunity will depend initially upon the removal of the institutional constraints that have thwarted redevelopment efforts in the past. The panel was impressed with the apparent commitment among all the parties to corrunon goals. ft is acutely clear to the panel that the time for ac- tion is now. It is also apparent that there is a driv- ing urgency in the community at large and in the elected and civic leadership to get development underway. The panel heard the same thing from virtually all quarters: cease the planning and get on with development. The panel was also repeat- edly informed by citizens and civic leaders that "the stars are aligned" for action to occur. In the real estate development industry. "going with the flow" generall~' begets success. Those whu develop, finance, and invest in private devel- opment projects, however. have learned that tim- ing is only part of equation. Equally important in the crucible of success is laying the proper founda- tion for action-and laying such a foundation re. quires careful planning, aligning or resoure", to execute. and properl:v' assessing risks. San Pedro. California. September 22-27, 2002 The panel cautions: focusing on completing a proj- ect for the sake of timing opportunity or expedi- ency could undermine a long-term sustainable rein vestment. The history of hastily executed projects is generally a tale of long-term trouble. The panel is equally concerned that the initial projects-be they public, private, or public/pri- vate joint ventures-set the standard. This stan- dard would include: . high-quality design; . integration with the existing rabric of the com- munity; and . high visibility in order to change the current investment climate. , Successful execution of early projects will change the investment climate in San Pedro and attract even more investment. Though the panel concurs that the time for action is now, it cautiom that there remain significant organizational, regulatory, and financial details to refine, as well as project-level detail planning yet to occur. The panel is confident, however, that with the proper leadership, the city of Los Angeles, the eRA, the port, and the San Pedro community can now fully engage the development process. 33 7-62 Panel Chair West Palm Beach, Flon:da Lawler is the managing partner of N-K Ventures, LC, a development company founded in 2001 that specializes in urban mixed-use/residential develop- ment projects. Located in West Pahn Beach, the firm focuses on projects in southeast Florida. Prior to forming N-K Ventures, Lawler was a partner in the Washington, D.C., and Miami offices of a national financial senices firm, where he was responsible for real estate transactional advisory services for private, corporate, and public clients. Lawler has over 25 years of experience in advis. ing private and public clients on large-scale com- t mercial and residential development projects; port- folio transactions: and financing and commercial leasing matters throughout the United States and overseas. Ir, total, he haE been an adviser in more than $5 billion of real estate development. finance, and investment transactions over' his consulting career. Lawler currently works ror the cities of Daytona Beach and Miramar. servllig as a real es- tate financial adviser on several large-scale publici privatE development projects. Lawter is an active member of eLL In addition to serving in the Institute:s '1eadership group," he serves on the policy and practiCE: committee and is a member oithe Multifamily Council (Gold Flight). Lawler has served on ten Advisory Services pan- els and several project analysis teams. and has been a '~ce chair of ULI's Southeast Florida Dis- tricI Council. In October 2000, ULI recogruzed his service "ith the Robert O'Donnell Award. He has lec,ured on real estate development and fi- nance at George Vlashington University Business SchooL the vVharton School, Harvard Business School. Georgetown Uruversity, and the Univer- sity of Miami. Lawler is a graduate of Michigan 34 7-63 State University and received an MCP degree from the Kennedy School of Government at Har- vard University. lv! adison, Wisconsin Freer, the principal designer with SmitbGroup JJR, has expertise in urban design, community plan- ning, and waterfront redevelopment. Residing in and practicing out of SmithGroup JJR's water- front studio in Madison, Wisconsin, he offers a substantial portfolio dealing with waterfront com- munities in the upper Midwest, with a focus on the Great Lakes. Freer has worked on projects from conceptualiza- tion through construction, ~ith extensive involve- ment during all phases. He has also generated community support for design initiatives so that early enthusiasm maintains momentum and ulti- mately achieves public endorsement. As principal designer, Freer is currently working on the follo"ing: waterfront development projects in the metropolitan St. Paul, Minnesota, area; down- town Sanford, Florida; New Rochelle, New York; Racine. vVisconsin; and a number of small cities on the Mississippi River. As a result of his professional experience, Freer has been invited to lecture at a number of uni- versities; has become a resource member of the Mayor's Institute on City Design; has pariicipated in the U.S. Depariment of Commerce's Sympo- sium on Economic Development of Tourism and Destination Resorts, Athens, Greece; and has taken pari in the 27th International Making Cities Livable Conference, Vienna, Austria. He received degrees in environmental design and landscape architecture from the State University of New York and Syracuse University. An Advisory SelYlces Panel RllIIort MiaTni, Florida In 1995, Gonzalez started DMG Consulting Ser- 'l;1.ces, Inc., a management consulting firm special- izing in economic development and project imple- mentation. Since 1996, DMG has served as the in-house consultant for the Beacon Council, Miami-Dade County's official economic develop- ment organization. Projects managed by DMG for the Beacon Council include the Homestead Reuse Plan, the South Miami-Dade Marketing Program, and the development and coordination of the Miami-Dade Defense Alliance. Prior to entering the private sector, Gonzalez was employed by Miami-Dade County as the director of the Department of Development and Facilities Management. This agency provided central sup- port services in the areas of real estate acquisi- tion and leasing,. facility management. and build- ing construction. Gonzalez received her bachelor of arts degree from the University of Florida. She began her career vdth Miami-Dade County immediatel;- after re- ceiving her masr,er:s degree trOIT; 2\ ortheastern Cniversit:- in 1979. In 1989. she attended ~he Senior Executlve Program m State and Loca! Government at the John F. Kennedy Schoo; of Government. Begmning as a management interr.. Gonzalez worked ror most of her county career in the c:api- tal improvement and cieveioprnent fields. County land acquisitions, architect and engineer selec- tion, and capital budget expenditure oversight were some of her responsibilitieE in the Capital Improvements Diyision. In 1989, the division was merged "ith the county.,s facilities and construc- tion management divisions and she was named director of the new DepaJ."":ment of Development and Facilities Management. A.tlanta. Georgia Kimsey is vice president and a principal of Nile~ Bolton Associates (NBAl, a. professional design fi.rm providing architecture, interior design, iand- San Pedro. California. September 22-27. 2002 scape architecture, and urban planning services. A licensed architect in seven states, Kimsey re- ceived a bachelor of arts degree and a master of architecture degree from Yale University and has been with NBA for 22 years. NEll. developed a national reputation for work in mixed-use developments, multifamily housing, transportation architecture, department stores, universities, clubhouses, hotels, and resorts. vVith exposure to diverse project types and geographic locations, Kimsey has had extensive experience in working with both private and public organiza- tions. He is cUlTently principal-in-charge of the San Jose State University Campus Village, a $171 million mixed-use project. Kimsey has been active in numerous business and civic associations, induding the Urban Land Insti- tute, the American Institute of Architects, and the Atlanta Partnership of Education. As president of the Buckhead Busbess Association, he was the lead facilitator for a community visioning char- rette for Atlanta's prerrner business and retail neighborhood. Kimsey served or the CLl Advi- sory Services panel for the California sta;;e capital in Sacramento and has been a vice chair of 1;L1"s residential and multifarni.l~' councils. Reno. ~Vevada Long specialize, ir publiciprivate partnerships, economic development. and real estate finance. His consultam practice serves public and private cUent8 in Nevada and California. Long was city manager of Fairfield. California, where he negotiated the first municipal partici- pation agTeement with a regional shopping mall. Since leaving tne public sector in 1996. Long has worked on a \"\-ide range of issues. including base reuse. developer negotiations, project feasibility analysis, marketing. redeveiopment. strategic planning, and public finance. Long has lectured for the School of Public Admin- istracion at Golden Gate University and has taught economic development and organizational change internationally. He also has served on ULI Ad\'1- 35 7-64 sory Services panels and is a faculty member for the Urban Land Institute, teaching the advanced real estate development process course. Long has a.,~ MPA degree from the School of Public Policy at the University of California at Berkeley and a bach- elor's degree in economics from Brown University. Boston, Massachusetts Mitchelson manages approximately $800 million in real estate portfolios on behalf of three pension- fund clients. She serves as her clients' primary contact and participates in all matters pertaining to their portfolios, including the development and implementation of investment strategies, and the monitoring of performance relative to client objec- tives. Previously, Mitchelson held the position of managing director of portfolio management for GE Capital Investment Advisors (GECIA). Mitchelson has 17 years of real estate experience. At GECIA, she also served as a vice president in the asset management group. a position in which ,I she oversaw more than $500 million in commercial and multifamily assets. Her responsibilitieE in- cluded developing strategic propert)' business plans, reviev.'ing and approving property operat- ing budgets, negotiating ieases, performing hold! sell a..'1alyses, and managing asset dispositions. Mitchelson jomed a predecessor entity of GECIA in 1987, having begun her real estate career as a financial analyst for Cia.,"€mon~ Corporation in 1985. There. she performed financial analysis relating to acquisitions, dispositions. asset management, prop- erty management and real estate syndications. Mitchelson :is a certified property manager and a member of the Institute for Real Estate Manage- ment. She holds a bachelor:i:; degree in business administratior.L, \vith a concentration in financE:, from Northeastern University. Cha1"lotte. North Carolina Stanton is the director or market planning and ad- visory serviceE for Faison, identifying acquisition and development opportunities for investors, ere- 36 7-65 ating business plan strategies for challenging real estate projects and portfolios, preparing store rollout plans for retailers, and doing due diligence on real estate decisions for retail and corporate real estate clients. From 1998 to March 2002, Stanton was ,ice presi- dent of Research and Market Planning Services at Trammell Crow Company. She operated the firm's Research and Market Planning Services unit, providing strategic planning, site selection, real estate portfolio analysis, marketing presen- tations, and merchandising plans for internal and external fee clients, including developers, retail- ers, capital investors, property managers, and brokers. Stanton was director of research at Faison from 1995 to 1998, and served on Faison's Capital Con- trol Board reviewing investment opportunities. She also produced Faison's Market Focus report, a detailed review of economic, demographic, and real estate market performance and opportunities in ten major U.S. cities. From 1987 to 1993. Stanton was associate profes- sor at Elizabethto\1:Tl College and Indiana Univer- sity of Pennsylvania. teaching MBA- and senior- level courses on consumer behavior, marketing. advertising management. and retail strategy. She was project manager for Business Resources Group. a consortium of academic and industry pro- fessionals that provides research projects, busi- ness plans, seminars, workshops, and training ser- vices to business and government clients. Stanton received a PhD and an MS in consumer be- ha\ior and retail management from Purdue C ni- versity in 1987, and a bachelor's degree in psychol- ogy, sociology, and communications from the State University of New York at Cortland in 1983. An Advisory SelYices Panel Repo~ Attachment 4 Urban Land Institute (ULI) Advisory Services Program H Street Corridor Public Outreach Efforts In response to Councilman Castaneda's request for participation from property owners, either written, verbal or financial staff did the fOllowing: Property Owners On July 25, 2008 a letter was mailed to eighty nine (89) property owners fronting H Street between Interstate 5 and Third Avenue (Exhibit "A"). The letter summarized the Urban Land Institute (ULI) Advisory Services Program and our intent to recommend Agency approval of the contract with ULI on August 5th. A self addressed stamped post card was provided asking each owner to indicate their level of interest in participating in the ULI process (Exhibit "B"). Businesses During the week of July 28, 2008 Redevelopment & Housing staff visited businesses along H Street. These initial contacts were made to provide business owners and managers with a brief summary of the ULI Advisory Services Program and our intent to recommend Agency approval of the contract with ULI on August 5th All contacted businesses were provided with the letter and postcard in Exhibit "B" so they can indicate their level of interest in participating in the ULI process. Public Comments: In response to comments made by the public during Public Comments, staff has done the following: Patricia Aguilar, "...the area between srcJ and 4th along H Street is a sensitive area.. .and should be treated with sensitivity to the people in that area". We have attempted to address this issue bv includinq lanquaqe within the resolution that puts this concern on the record for the Advisorv Service Panel: "WHEREAS, the Urban Land Institute will review the 2005 General Plan and 2007 Urban Core Specific Area Plan development standards and guidelines, including the provision of building setback and massing when conducting their analysis; and WHEREAS, the Community is concerned about the interface of Mid-rise and High Rise Development along the H Street Corridor that abuts single family neighborhoods" 7-66 Attachment 4 Earl Jentz, "... it is to expensive, timing is wrong" The preparation of an H Street Study was part of the Community Development strateqic plan since March 28. 2006 at an estimated cost for consultants of $450.000. The anticipated completion of the study was the second quarter of 2007. With the re-orqanization of Community Development the H Street Study was included in the strateqic plan for Redevelopment and Housinq on May 24. 2007 with an estimated completion date of June 30. 2008. The cost is non-neqotiable and the same cost for any iurisdiction. The proposed contract is well below the oriqinal estimate of $450.000. Peter Watry, "...residents should be at the center of the H Street Plan". To address this concern staff has developed a process that places the community as the lead in defininq the study. On Monday July 28th key community leaders, identified for their leadership in community groups, development activity and/or interest in the H Street Corridor were invited to participate on a Working Group and learn about their role in the process. July 28. 2008 Workinq Group Attendees ' Pat Aguilar Crossroads, Peter Watry Crossroads Ken Wright Northwest Civic Association Frank Zimmerly Northwest Civic Association Lisa Cohen Chamber of Commerce Lisa Johnson Chamber of Commerce Glen Googins Third Avenue Village Association, VP Carolina Gregor SANDAG Michael Daney MTS Tom Henry Henry Development/Phair Company Chris Lewis Chula Vista Redevelopment Corporation Harold West West Builders Earl Jentz Balboa Realty Kevin O'Neill O'Neil Construction The attendees were asked to take the lead to frame the assignment for the Advisory Services Panel. Staff has arranged five different meeting times over the next two weeks for the "working group" to prepare the Statement of the Problem, identify the issues through 12 questions that will be answered by the ULI panel, identify 80-100 resource people for panel interviews and help in the preparation of a briefing book to be 7-67 Attachment 4 provided to the panelists. Staff's intent in forming this Working Group is to allow the Community to frame the issues for ULI, thereby placing the residents "at the center of the H Street Plan". Staff has attempted to address all concerns so that this important study can be conducted in October 2008. 7-68 Attachment 4 Exhibit A Map of H Street Property Owners Contacted 7-69 Exhibit B Letter of Interest & Postcard C'TY OF CFll'U """'6 Redevelopment & Housing July 25, 2008 Dear Property/Business Owner; Over the past several years the City of Chula Vista has embarked upon creating a visionary framework for revitalization through the adoption of the updated General Plan and Urban Core Specific Plan (UCSP). As a property/business owner along H Street your future investment and participation in the Chula Vista community is critical to the success of this vision. The "H Street Corridor" is quickly emerging as a potential "backbone" for revitalization, with its direct connection to the city's Bayfront and the historic heart of the community, the Third Avenue commercial district. While the real estate market has cooled, Chula Vista continues its efforts to revitalize the older western portion of the city with the progress of the Bayfront Master Plan and development of a major hotel/convention center. As these efforts move closer to reality, renewed private investment will seek to capitalize on the opportunities to compliment uses and serve the visitors and residents of the Bayfront. It is imperative that the City is poised to take advantage of its opportunities when the market returns. A cohesive strategy to address market potential, planning and design or financing and development is needed to take the visionary framework of the UCSP to concrete implementable actions that can facilitate appropriate and quality redevelopment along the Corridor. In order to move forward in creating such a strategy, staff is proposing to contract with the Urban Land Institute (ULI) to condl..\ct a 5-day Advisory Services Program (a summary of ULI and the Program is attached). ULI is a well established international non-profit research and education organization, which provides leadership in the responsible use of land and in creating sustainable communities. The City is extremely interested in your participation in the process. Staff is anticipating the ULI panel to be conducted during the fall of this year and staff is scheduled to recommend the Program for approval to the City Council on August 5, 2008, meeting start 4:00 p.m. We have enclosed a self-addressed stamped card asking for you to confirm your level of interest in participating in the ULI Program. Please complete and mail the card to us immediately, as we will be providing the information to City Council on August 5th If you are interested in learning more about the process, we would encourage your attendance at the Council meeting and for you to contact Stacey Kurz, Senior Project Coordinator in the City's Redevelopment & Housing Department by em ail atskurz@ci.chula-vista.ca.us or by phone at (619) 585-5609. Sincerely, / // "<;;p'" ,:______?..;7 Eric C. Crockett Assistant Director Redevelopment & Housing Attachments ClTY OF CHULA nSL~ Redevelopment &Housing Urban Land Institute (ULI) Advisory Services Program H Street Corridor Summary (7/25/08) ULI is a well established international non-profit research and education organization, which provides leadership in the responsible use of land and in creating sustainable communities. Asthe preeminent, multidisciplinary real estate forum, with a membership of over 40,000 members and associates from 90 countries, ULI has access to experts representing the entire spectrum of land use and development disciplines. Through ULI's unique program, an interdisciplinary team of its member experts help sponsors find creative, practical solutions for issues such as downtown redevelopment, land management strategies, evaluation of development potential, growth management, community revitalization, and brownfield redevelopment. The unique team-based approach to bring city, business, development, and community interests together with ULI niche experts provides an opportunity that is unparalleled. The Program has assembled well over 500 ULI-member teams to help sponsors find solutions and build consensus around land use and development challenges. For Chula Vista, the program will be specifically designed to help answer questions related to the land use and development issues we face along the H Street Corridor and will: .:. Bring recognized real estate expertise from across the United States to provide an assessment of the market feasibility and economic potential of the Corridor as a connection between the Bayfront and Third Avenue commercial district; .:. Gather data on the many quality-of-life objectives of the community and the ongoing business and economic operations; and .:. Fulfill General Plan and other city objectives to forge an integrated, action-oriented implementation plan for the Corridor. The interdisciplinary team will consist of eight to nine members; typically several developers, a landscape architect, a planner, a market analyst, a finance expert, and others with the niche expertise needed to address the issues/challenges most relevant to the Corridor. To complete the assignment, the team takes on an intensive agenda which includes: .:. An in-depth briefing day composed of a tour of the site and meetings with City representatives; .:. Hour-long interviews of typically 80 to 100 key community representatives ("resource persons"); and .:. A day and a half of formulating recommendations. The final days are dedicated to the panel preparing findings and conclusions, which are presented to the sponsor on the final day through an oral presentation. After the panel is completed, a written report will serve as an implementation plan for redevelopment of the Corridor. For additional information about ULI please visit their website at wwwuli.orq, information on the 5-Day Advisory Progr~'!!ffn be found under "Programs & Services" H Street Corridor Urban Land Institute CUll) Advisory Services Program As the (circle ail that appiy) property owner / business owner / resident located at , Chula Vista, I am (check all that apply): Not interested in participating. Do not notify me of future events. Interested in participating. Please notify me of future events. Additionally, I would be interested in: Being a resource person for ULI and participating in the panel interviews. Sponsoring events (i.e. donations of food, beverages, meeting space, financial contribution, etc.). Please send future correspondence to: Name: Business/Organization (if applicable): Mailing Address: Phone: What is the best way to contact you? Email: D Ernail DMail D Phone Please return this questionnaire immediately. If you have any questions please contact Stacey Kurz. City of Chula Vista - Redevelopment and Housing at (6 79) 585-5609. ~:T\()'-CH"'Llt-Y)'TA~. . "". Redevelopment e~ Ilousing 276 Fourth A venue Chula Vista, California 91910 City of Chula Vista Redevelopment & Housing Attn: Stacey Kurz 276 Fourth Avenue Chula Vista, California 91910 7-72 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE FORl\1AL CONSULTANT SELECTION PROCESS FOR AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA REDEVELOPMENT AGENCY AND THE URBAN LAND INSTITUTE WHEREAS, the H Street Corridor is a critical component of the revitalization of the City of Chula Vista; and WHEREAS, General Plan LUT Objectives 2, 52, 53, and 57 identify the H Street Corridor as a critical component for focusing redevelopment efforts to encourage a mix of uses within walking distance of a transit station that contain significant public gathering space and vibrant mixed use area; and WHEREAS, the Urban Land Institute (ULI) has an established Advisory Services Program and is uniquely qualified to bring real estate experts from around the country to provide an unbiased implementation program for redevelopment of the H Street Corridor; and WHEREAS, staff recommends the City Council waive the formal consultant selection process of Municipal Code Section 2.56.110 because of the Urban Land Institute's unique experience and expertise; and WHEREAS, the Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality 1\ct (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no further environmental review is necessary; and WHEREAS, staff recommends the Redevelopment Agency enter into an agreement with the Urban Land Institute for Advisory Services; and NOW, THEREFORE, BE IT RESOLVED based on the findings above, the City Council of the City of Chula Vista does hereby waive the formal consultant selection process for an agreement with the Urban Land Institute for Advisory Services. Presented by Approved as to form by Eric Crockett Assistant Director of Redevelopment & Housing 7-73 REDEVELOPMENT AGENCY RESOLUTION NO. 2008- RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA REDEVELOPMENT AGENCY AND THE URBAN LAND INSTITUTE IN THE AMOUNT OF $120,000, AND APPROPRIATING FUNDS THEREFOR WHEREAS, the H Street Corridor is a critical component of the revitalization ofthe City of Chula Vista; and WHEREAS, General Plan LUT Objectives 2, 52, 53, and 57 identify the H Street Corridor as a critical component for focusing redevelopment efforts to encourage a mix of uses within walking distance of a transit station that contain significant public gathering space and vibrant mixed use area; and WHEREAS, the Urban Land Institute (ULl) has an established Advisory Services Program and is uniquely qualified to bring real estate experts from around the country to provide an unbiased implementation program for redevelopment of the H Street Corridor; and WHEREAS, staff recommends the City Council waive the formal consultant selection process of Municipal Code Section 2.56.110 because of the Urban Land Institute's unique experience and expertise; and WHEREAS, the Environmental Review Coordinator has reviewed the proposed activity , for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section l5060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no further environmental review is necessary; and WHEREAS, staff recommends the Redevelopment Agency enter into an agreement with the Urban Land Institute for Advisory Services; and WHEREAS, the Urban Land Institute will review the 2005 General Plan and 2007 Urban Core Specific Area Plan development standards and guidelines, including the provision of building setback and massing when conducting their analysis; and WHEREAS, the Community is concerned about the interface of Mid-rise and High Rise Development along the H Street Corridor that abuts single family neighborhoods; and WHEREAS, the Urban Land Advisory Services Program will look to the ULI membership of approximately 40,000 real estate and planning professionals to form a pro-bono Advisory Services Panel; and WHEREAS, the Advisory Services Panel will be comprised of either eight or nine real estate or planning professionals; and WHEREAS, the Advisory Services Panel is to develop an implementation plan on policies of the 2005 General Plan and 2007 Urban Core Specific Area Plan; and 7-74 Resolution No.7 Page 2 WHEREAS, staff recommends $120,000 of funds be appropriated to the FY 2009 services and supplies budget of the Redevelopment Agency Merged Project Area Fund; and NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency authorizes the Executive Director to enter into an agreement with the Urban Land Institute for Advisory Services, and appropriates $120,000 of available fund balance to the FY 2009 services and supplies budget of the Redevelopment Agency Merged Project Area Fund. Presented by Approved as to form by 7 Eric Crockett Assistant Director of Redevelopment & Housing 7-75