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HomeMy WebLinkAboutPlanning Comm min 1991/04/24 Tape: 317 Side: 2 MINUTES OF A REGULAR BUSINESS MEETING OF THE CITY PLANNING COMMISSION OF CHULA VISTA, CALIFORNIA 7:00 p.m. Council Chambers Wednesday, April 24, 1991 Public Services Building ROLL CALL COMMISSIONERS PRESENT: Chair Grasser Horton, Commissioners Carson, Casillas, Decker, Fuller, Martin and Tugenberg COMMISSIONERS ABSENT: None STAFF PRESENT: Assistant Planning Director Lee, Contract Planner Miller, Redevelopment Coordinator Kassman, Senior Civil Engineer Ullrich, City Traffic Engineer Rosenberg, Assistant City Attorney Fritsch PLEDGE OF ALLEGIANCE - SILENT PRAYER The pledge of allegiance to the flag was led by Chair Grasser Horton and was followed by a moment of silent prayer. INTRODUCTORY REMARKS Chair Grasser Horton reviewed the composition of the Planning Commission, its responsibilities and the format of the meeting. APPROVAL OF MINUTES None ORAL COMMUNICATIONS - None ITEM 1: PUBLIC HEARING: DRAFT ENVIRONMENTAL IMPACT REPORT EIR-90-07, SCRIPPS HOSPITAL EXPANSION Contract Planner Miller stated the EIR had circulated through the State Clearinghouse for the required 45-day review period and also complied with the local 30-day review period. Letters of comment were received from several members of the public, as well as the Chula Vista Planning Commission Minutes -2- April 24, 1991 Elementary School District and the Regional Water Quality Control Board. A letter from the State Department of Conservation relating to seismology issues had been hand delivered to the Commission at the meeting. Ms. Miller said all of the environmental impacts identified in the Initial Study were significant but mitigable. As a project alternative, retention of the Arby's Restaurant on site was analyzed; however, the alternative did not accurately reflect the current proposal being put forth by Arby's, First Interstate, and ReadiCare nor the proposal by Wayne Wencke to double the commercial complex on site. Contract Planner Miller noted June Collins of Dudek & Associates, the preparer of the EIR, was present to answer any questions. Commissioner Carson clarified there would be a supplemental EIR prepared to address the fault situation. Contract Planner Miller answered the letter from the Department of Conservation asked that staff look into expanding the scope of the EIR to include seismology issues specifically relating to fault traces located near the site. If directed by the Commission, it would be included. Commissioner Carson, referring to noise mitigation on page 5, asked if the wall to be constructed would be painted with anti-graffiti paint. Ms. Collins, of Dudek and Associates, responded that they had an updated letter from the noise consultant dated April 3, 1991, which stated the noise calculations were redone for that area reflecting the latest design and information for the parking structure. He had determined that with the configuration of the parking garage with an open side where the junior high school was located, the noise level would be at 65dB at the face of the junior high school, so a solid block wall would no longer be needed in that Commissioner Carson asked if in the marketing survey, there was any information received as to where the residents were going for their service. Were there figures to show that the clients who would use the hospital would be paying clients, not government subsidized? Contract Planner Miller asked that the Scripps Hospital representative answer during the public hearing. Commissioner Carson, referring to page 31, relocations of the site. What potential sites had been identified for the skating rink and theater? Where would ReadiCare go? Ms. Collins answered that the applicant had proposed sites for the theater and skating rink. There is a potential for a theater within the Chula Vista Mall expansion. Neither the applicant nor the EIR addressed potential relocation sites for the ReadiCare Center. Commissioner Carson asked if any of the businesses were facing foreclosure. Planning Commission Minutes -3- April 24, 1991 Redevelopment Coordinator Kassman stated the skating rink had a site in escrow on "L" Street just west of Broadway and would be relocating to that site if the Scripps project moved forward. The movie theater has proposed to operate an eight-plex movie theater as part of a proposal by the Homart Development Company to expand the Chula Vista Mall. The Community Development Department was in the process of hiring an EIR consultant to prepare the necessary environmental documents for that project. There have been discussions regarding the other businesses on the site, and possibly some tentative agreements reached. As far as the financial condition of the businesses, some were strong and some were less strong. All businesses had been appraised by a licensed business relocation specialist and those appraisals would be the basis for making offers for relocation and for the payment of good will. Mr. Kassman was not aware of any of the businesses being in the process of foreclosure or bankruptcy. Commissioner Carson asked if Mr. Kassman had any suggestion as to a site for ReadiCare and Interstate Bank. Mr. Kassman replied negatively, but stated there would be ample time to search for a site once the project was approved. Commissioner Decker asked what would happen if Scripps went into a Chapter 11 or Chapter 13 and the project was half built? Redevelopment Coordinator Kassman answered that the possibility had not been considered, but the Owner Participation Agreement between the Redevelopment Agency and Scripps, as the developer of the site, would include financial performance criteria and measures normally a part of an Owner Participation Agreement or Disposition and Development Agreement for a project of this size. Before the property is sold to Scripps, they would have to issue letters of credit and perform other requirements to indicate they had the financial ability to carry out the project. Commissioner Decker noted their financial strengths may be brought out more in the "Background" portion of the EIR. Commissioner Decker asked why the noise analysis was measured at peak periods. Ms. Collins answered the reason for the measurements was to get existing ambient noise levels at an average time of day, not a peak time. Commissioner Decker believed it would be better to measure the noise level for 24 hours, then average it to give a more realistic ambient noise level. Commissioner Decker, regarding potential hazards, noted there was nothing in the EIR regarding radiological agents being used on the site. Planning Commission Minutes -4- April 24, 1991 Ms. Collins answered it could be documented in the EIR. There are a wide variety of State requirements associated with the collection and disposal of radioactive waste. Commissioner Tugenberg asked about the ingress and egress to the hospital site onto Fourth Avenue and its effect on the intersection of Fourth and "H". Joe Olivo, of Willdan Associates, the Traffic Consultant for the EIR, responded that the ingress and egress from the hospital if on Fourth and "H" would only affect the tums. The conclusion was that it would not significantly change the level of service at that signalized intersection. Commissioner Tugenberg commented that southbound traffic blocks the street so left tums going north on Fourth Avenue into the medical center cannot be made. Therefore, traffic backs up into the intersection of Fourth Avenue without having an entrance into the hospital. He suggested that consideration be given to a median strip being placed in Fourth Avenue to not allow left tums. City Traffic Engineer Rosenberg responded that the left tums were legal. Staff recognized the installation of a median may be required. A growth monitoring study had just been completed, and the level of service today at Fourth and "H" is in conformance with the threshold standards, although marginal. The median would be included if necessary as part of the mitigation for the project. This being the time and the place as advertised, the public hearing was opened. Jim Eischen, 7855 Ivanhoe Ave., Suite 420, La Jolla, representing RTM, Inc. RTM owns the Arby's Restaurant that would be affected by the Scripps project. He noted that Arby's was fonvarding an alternative redevelopment proposal. Mr. Eischen was concerned about the Alternatives analysis. In the Draft EIR there was an assumption that expanded or continued commercial use on the subject 8-acre parcel would somehow displace business from the mall across the street and from the Third Avenue businesses. He said there was no evidence to support that assumption in the Draft EIR. The subject redevelopment plan fully contemplated commercial retail use of the subject 8-acre parcel, and the word "urban core" was intended to convey that notion that eventually Chula Vista would develop a set of businesses, a certain urban core of businesses. The Draft EIR might focus on the fact that this was going to be disrupted, because 8 acres of commercial retail property were going to be utilized for the hospital. Mr. Eischen believed displacing those businesses was a significant impact under California law and a more thorough evaluation of project alternatives should be included in the ultimate EIR. He said RTM was interested in a configuration that retained some of the existing businesses on the site as a means of mitigating complete displacement of all the businesses. Planning Commission Minutes -5- April 24, 1991 Gail MacCleod, 6363 Greenwich Drive, Suite 230, San Diego 92122, consultant representing the "H" Street Business Coalition which consists of the Arby's Restaurant, First Interstate Bank, and the ReadiCare. She submitted a prepared statement to the Planning Commission and said the EIR omitted specific market studies and other City-prepared information regarding the Scripps proposal. She referenced a memo from City staff to the Redevelopment Coordinator pointing out that the State Office of Health Facility Planning Development had identified that there are an overbuilt number of hospital beds in this area and whether there is a market here for that amount of medical office space. The redevelopment plan itself identified that market studies have been done showing the need for additional commercial uses. She said this proposal was in conflict with the redevelopment plan which had intended this site for retail commercial. The EIR erroneously concluded no significant impact based on mis-information that all the businesses were financially troubled. She said her clients' businesses were thriving, and the applicant was not working with these owners to find them a suitable site. The ReadiCare gave non-emergency care, away from emergency rooms and they provide a service. Arby's provided opportunities for management and training. A letter from the Consulting Architect to the City Planning Department said "There are fundamental assumptions by the designer regarding the use of the site which are questioned in this report. Our comments are carefully considered and are prompted by the high visibility of the site and its importance to the City." "The arrangement and relationship of the buildings as proposed raises a concern over the ability of the Phase 1 to stand on its own should the ultimate phase not be developed. The failure of the total master plan to be realized will result in a rather poor integration of the buildings and an underutilization of the overall site." The architect continued with "The impact of the bed tower and medical office building occupying the site by themselves needs to be fully considered, given the uncertainties of the market and the future ability of the applicant to carry forward the full project." The architect raised the question: "What is the effect if the project is not fully built out in terms of utilization of the land and impact on businesses to be relocated from that site." Then he points out "There are some marginal businesses, but there are also businesses that appear to be economically healthy." Ms. MacCleod pointed out that they were her three clients. She said the EIR pointed out the area would be in an underutilized state for 10 to 15 years and anything could happen in that period of time. Ms. MacCleod said they would be submitting to the Redevelopment Agency a proposal that this site will not be so underutilized for this 10 to 15 years by keeping the three viable businesses identified. John Linn, Chula Vista City School District, stated they did not object to expansion of Scripps; however, they felt if this expansion was to continue they would ask the Commission to assist the District by including in the recommendation to the Council that the Scripps Hospital be annexed to the District's Community Facility District No. 5. Through the annexation to that Mello-Roos Facility District, it would enable them to continue to build the schools in Chula Vista. They do not qualify for State funding, and he did not foresee them qualifying in the near future. Schools are built either through the local taxes, general obligation bonds, and/or through Mello-Roos. Planning Commission Minutes -6- April 24, 1991 Currently, they were building schools with Mello-Roos. He requested that Scripps be a part of their Mello-Roos program. Commissioner Decker said the School District assumed there would be an increase in the number of students over a period of time. He was curious as to how the number was calculated. A hospital would obviously draw employees from all over the metropolitan area, who would in turn live somewhere else. Mr. Linn answered that a study had been done by SANDAG which indicated that commercial and industrial growth increases population in the area, and that population may not be related to housing necessarily. All of the schools in the western area are over populated at this time and are using a number of relocatable classrooms. This is without additional housing in the west side of town. It relates to the number of jobs and housing density. Commissioner Decker asked if it would be more useful for the EIR to have some more exact numbers as to the breakout of anticipated employees, and what their salary ranges were expected to be, which would indicate where they may live. Mr. Linn answered that the more information they had, the better they could relate to that information and comment on it. Commissioner Casillas said there was a study done which attached the growth in school enrollment and requirements of schools. Mr. Casillas asked the name of the study. Mr. Linn replied it was the study done by SANDAG, who did the study for all the districts in the Chula Vista and South Bay area. The study related the impact of additional industrial and commercial. Commissioner Casillas asked if that would address Mr. Decker's question as to a formula. Mr. Linn believed it would. Wayne Wencke, P. O. Box 95, Rancho Santa Fe, CA 92067, representing the Master Ground Lease Ownership position on the entire property, said they were concerned that the EIR was inadequate in presenting all the alternative uses that have been proposed. He said those needed to be considered because their proposals, particularly the strict retail, did not involve any mitigation or very minimal mitigation measures. Mr. Wencke also stated that while financial concerns were not a direct concern of the EIR, it was important that the additional revenues indirectly from their site could actually be applied to mitigating other environmental issues in other parts of the redevelopment area in the City to mitigate those measures and offset them where they would have unmitigable measures. He also said asbestos had been found on the site and, in terms of the toxics report, there has been no mention of that. A certified technician Planning Commission Minutes -7- April 24, 1991 needed to study that. It also needed to be included in the report with appropriate mitigation measures. He again noted that the alternative proposals on the site would involve minimal environmental review, because they were consistent with the site as it exists today and would not change the nature of the site, would not involve the need for a conditional use permit, or an EIR. Commissioner Decker asked about the identification of asbestos on the site, if it was in the present buildings or in the ground. Mr. Wencke answered it was in present structures on the site. Commissioner Decker said those structures would be demolished. Mr. Wencke replied it depended on which buildings were demolished and which ones were kept. The alternative uses needed to be acknowledged and then the buildings to be demolished identified. Their proposal would be to clear the entire site while still retaining existing tenants. They have to be acknowledged in the EIR, and those other issues need to be raised depending on which alternate uses were selected. They had to do a study on the asbestos on the site. Jeff Bills, 435 "H" Street, CV 92010, administrator of Scripps Memorial Hospital. Responding to Commissioner Carson's question regarding the number of patients seeking health care outside of the basic area of Chula Vista, Mr. Bills said they had found that approximately 35% of the patients who were admitted to hospitals in 1990 and 1989 who have zip codes in the service area served by Scripps Memorial Chula Vista actually bypassed any hospital in the South County and went north for their hospital care. This did not include the patients who came to the emergency department, and were transferred north to other hospitals that had available beds. The reason that these patients go to these hospitals has been primarily a historical trend in the past due to the lack of available sub-specialist physicians and also the lack of available services in the South County. They would we continue to care for patients that fall under government subsidy categories--MediCare, MediCal, and CMS patients. Answering Commissioner Decker's question regarding danger associated with radioactive material, Mr. Bills said there was no nuclear medicine built into the expansion. Commissioner Decker was concerned with potential Chapter 11 or Chapter 13 down the line when the project was partially completed. He was concerned with their financial strength. Where did they plan to get their patients--expansion of South Bay to the east? He thought this type of material would have been in the EIR. Mr. Bills said that being a member of the Scripps System, which includes four acute hospitals and two convalescent hospitals with a major purchasing program, they had built major efficiencies into the operation into the organization. They believed their ability to capture additional volumes by expanding the service area of the hospital was critical to their success and Planning Commission Minutes -8- April 24, 1991 could be done. They were actively looking for ways to involve sub-specialists in our organization, physicians that will allow them to eliminate the out migration and capture the growth associated with this market. Commissioner Tugenberg asked if the out migration was 35 % and if the reason for the out migration to Kaiser was because they were members of an HMO. Mr. Bills replied that Kaiser probably makes up about 10 or 11% of the out migration. Since the managed care entity was growing at a very rapid rate, projections on medical office building space and hospital bed space are no longer viable in today's market. Those kinds of projections don't relate to the fact that employers are negotiating exclusively with health care providers for care and the markets become more competitive than ever before. Managed care would make up about 70 to 80% of most hospitals' business. Commissioner Tugenberg clarified that out of 35% of the out migration, 10 to 15% is for Kaiser. That left 20% unaccounted for that go north. He asked if Mr. Bills thought they would capture part of that 15% that were now HMO members of Kaiser. Mr. Bills answered that managed care patients have a tendency to switch when employers negotiate new health care agreements. He said every hospital in San Diego County planned to be more competitive in the growing managed care market and looks to gain an increase in market share. Commissioner Carson asked what site they had looked at for ReadiCare and where would they be located. Mr. Bills said they had not looked for sites for ReadiCare primarily because originally the City Council, acting as a Redevelopment Agency, had asked them to find a successful relocation of the youth-serving facilities which include the roller skating rink and the theaters. They had done that. In terms of the other tenants on the site, they had not started to do that until the Owner Participation Agreement was completed. Commissioner Casillas asked of the number of patients that were going out, were any of the rest of them going to any of the other Scripps facilities? Mr. Bills answered it was a very small percentage. Commissioner Casillas asked if given the availability of these other sub-specialists, Scripps would attempt to cut that out migration and keep them here. What would some of the sub- specialties be. Planning Commission Minutes -9- April 24, 1991 Mr. Bills gave examples of neurosurgery and neurology, specialized oncologists, pediatric, surgeons and sub-specialty areas of surgery and dermatology, and family practice. Answering Commissioner Casillas' query, Mr. Bills said they had transferred patients to Community Hospital of Chula Vista, because Scripps may be full. But the 35 % out migration was exclusive of those who are cared for either at Scripps or Community. No one else wishing to speak, the public hearing was closed. Commissioner Tugenberg said he would like to see in the final EIR specifically the impact on the build-out of the hospital as it affects tax generation monies. How it would affect the commercial establishment across the street, the Chula Vista Shopping Center and Third Avenue, as opposed to the tax generation that exists from that property now. Contract Planner Miller answered that they could add a section on "Community Tax Structure" and that would be the section that would analyze impacts to tax revenues on the City. Commissioner Tugenberg asked that it contain tax revenues and how the pay scale affects the multiples in purchasing, and how it affected the general economy of the City. Commissioner Decker concurred and said if the project goes through, some would be pulled out of the tax base, but there would be pros with employment. Commissioner Casillas said he would like to see something done that addressed the total picture (what's here now, the inventory, and projections for requirements in the near future) including the new construction at Community Hospital and the new facility on Third Avenue (Rees Stealy). He stated there would be very significant increases in the medical-type office. He was concerned with the absorption rate and if it was really needed. Commissioner Decker pointed out that hospitals generally utilized affiliated doctors. He thought it may be worthwhile if there could be shown some indication as to the affiliation to the hospital. Commissioner Fuller said she understood that originally the City had reviewed a number of proposals with the intent of keeping the area as a commercial site as designated in the General Plan. After going through all the alternatives, the Project Area Committee recommended the retention of those businesses that front "H" Street. If the EIR was approved and the project went ahead with Scripps, who would make the determination that there will either be Phase 1 as Scripps has indicated it, or Phase 1 that will include some participation with those businesses. Redevelopment Coordinator Kassman indicated the ultimate determination would be made by the Redevelopment Agency, probably in June. He believed Scripps had planned a meeting with the "H" Street Coalition representatives to discuss a proposal. Depending on what came out of that Planning Commission Minutes -10- April 24, 1991 proposal, assuming the two uses would be compatible, the Redevelopment Agency would ultimately have to select one proposal over the other. If the Scripps proposal was chosen, the project could move forward; if the "H" Street Coalition proposal was desirable, further environmental investigation would be necessary. Chair Grasser Horton directed staff to take into consideration all of the information heard from the public and the direction from the Commission. ITEM 2: CONSIDERATION OF REQUEST FOR A WAIVER OF THE REQUIREMENT TO WIDEN FIRST AVENUE AND OXFORD STREET Senior Civil Engineer Ullrich stated that subsequent to the item being placed on the agenda, the Engineering Department had been in contact with the applicant and had agreed upon the improvements necessary for his project. He asked the Commission to file the item. In answer to Commissioner Fuller's query, Mr. Ullrich said the applicant would install a street light on the corner of First and Oxford as well as the improvements on First Avenue. Commissioner Tugenberg was concerned that part of Oxford Street would be widened and part not. Senior Civil Engineer assured him that the applicant would not be required to widen Oxford. OTHER BUSINESS; None Chair Grasser Horton asked when the Final EIR for Scripps Memorial Hospital would be going back to the Commission. Assistant Director Lee indicated there would be a special meeting on May 15, which was their normal workshop timeframe. DIRECTOR'S REPORT: None ADJOURNMENT AT 8:10 p.m. to the Regular Business Meeting of May 8, 1991 at 7:00 p.m. in the Council Chambers. Nancy Ripl~, Secre(ary Planning Commission (PC4-24-91)