Camarillo City Council
AGENDA REPORT
Date: December 11, 2024
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: David Sanchez, Community Development Director Subject: Award Professional Services Agreement to The Natelson Dale Group Inc. for the Preparation of Market Analysis for the Camarillo Commons Strategic Plan
BACKGROUND
Camarillo Commons Strategic Plan
On February 14, 2007, the City Council adopted the Camarillo Commons Strategic Plan (Strategic Plan) to establish a vision and development framework to guide land use activity, development, and reinvestment in the planning area. The Strategic Plan area consists of a 55-acre portion of the city located north of the U.S. 101/Ventura Freeway and Daily Drive, south of Ponderosa Drive, west of Arneill Road, and east of Mobil Avenue. The Strategic Plan area contains two of the city’s oldest shopping centers – Ponderosa North and Ponderosa Center, both of which were built in the 1960s. Other existing uses include the Post Office, Ventura County Fire Station #54, Harley’s Camarillo Bowl, churches, professional office and retail space, and the Raemere Street residential neighborhood. The Strategic Plan seeks to transform this underutilized, aging area into a pedestrian-oriented destination center with retail shops, restaurants, plazas, entertainment uses, and a greater variety of housing product types and densities.
The majority of the Strategic Plan area was within the jurisdiction of the city’s former Redevelopment Agency, and at the time the Strategic Plan was adopted, Tax Increment Funds (TIFs) were an available source of funding for the city through the Redevelopment Agency. TIFs were used to fund redevelopment projects by diverting future property tax revenue increases from a defined area to an economic development or public improvement project and included a 20% set aside for investment in housing programs and projects.
Implementation of the Strategic Plan relied, in part, on city efforts to incentivize redevelopment by filling funding gaps for infrastructure improvements, such as new connections in roadway, utilities, and drainage facilities and a consolidation of existing parking. In 2012, the State eliminated Redevelopment Agencies, and as a result, TIFs are no longer a source of funding available for redevelopment of the Strategic Plan area.
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With the loss of the Redevelopment Agency and TIFs, alternative funding strategies for infrastructure and parking improvements within the Strategic Plan area will need to be identified.
To date, progress has not been made toward redevelopment of Camarillo Commons.
Since 2007, only one new Commercial Planned Development Permit application (CPD- 219) and one Major Modification (CPD-36M(1)) was submitted within the planning area.
CPD-219 was approved in 2010 for a mixed-use project, located on a vacant lot used annually for the sale of holiday trees on Pickwick Drive. The entitlement for the project expired in 2015. CPD-36M(1) was approved in 2023 for a second-story office addition to the existing office building north of Burger King on Arneill Road. It is anticipated that construction of this project will commence within the next year.
Despite the lack of new projects in the Strategic Plan area, there has been interest expressed by property owners to redevelop the asphalt parking lot south of the bowling alley and office buildings on Mobil Avenue. Property owners have communicated that the land use plan and development standards of the Strategic Plan need more flexibility to make it economically viable to redevelop their properties.
Market Analysis for Strategic Plan Area
The Strategic Plan was developed using a market analysis to inform land use and policy recommendations. The market study, which was completed in 2005, included research on the market conditions at the time, as well as the potential market demand for particular uses in the area. Since 2005, there have been substantial changes in market conditions, such as construction costs, land values, and supply and demand that impact the economic viability for redevelopment within the Strategic Plan area. The area around Camarillo Commons is currently undergoing changes, including the renovation of Central Plaza, the construction of the Vista Campanario apartments on the former Stock Lumber site, and the renovation of Dizdar Park to add a new plaza, garden entry gateway, performance space, shade trees, seating, public restrooms, and playground. These projects are expected to improve the area surrounding the Strategic Plan area but were not analyzed by the market study and may help to facilitate reinvestment in Camarillo Commons.
In addition, a multitude of State laws have been enacted since adoption of the Strategic Plan that encourage housing construction and allow for housing development on commercially zoned properties. The city’s By-Right Residential Zoning Overlay covers a portion of the Strategic Plan area, including 14 nonvacant sites, and allows the ministerial approval of residential development that includes 20% or more units affordable to lower- income households. AB 2097 prohibits the city from imposing any minimum vehicle parking requirement on a development project that is located within a half mile of the Metrolink Station, and approximately half of the Strategic Plan area meets this criteria, allowing for flexibility in the application of parking requirements.
The City Council Goals and Objectives for Fiscal Year 2024/2025 include the following Community Redevelopment Goal and Objective:
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Goal: It is the goal of the City Council to provide opportunities to redevelop and develop commercial, industrial and residential areas to improve services, businesses and housing, and to deter and alleviate blight.
Objective: Focus on the potential incremental redevelopment of the Camarillo Commons Specific Plan area by:
a. Affirmatively engaging property owners in the Plan area; and b. Identifying incentives that the City could offer to property owners willing to proceed with redevelopment projects in the Plan area.
In order to further the City Council’s Goals and Objectives and facilitate incremental redevelopment of the Strategic Plan area, the market analysis must be reevaluated to study the current market conditions and their impact on the implementation of the Strategic Plan. An updated market analysis is needed to provide insight into the current circumstances affecting the redevelopment viability of the Strategic Plan area. Retaining a qualified consultant to conduct an updated market analysis is the first step in this process, which may inform adjustments to the mix of land uses, development standards, and implementation strategy for the Strategic Plan.
On June 27, 2024, staff presented a report on this matter to the Economic Development and Land Use Committee (EDLUC) with potential next steps being to perform an updated market analysis followed by re-evaluation of the Camarillo Commons Strategic Plan. The EDLUC concurred with these next steps.
DISCUSSION
Following the EDLUC meeting, staff issued a Request for Proposals (RFP) for the preparation of a market analysis for the Camarillo Commons Strategic Plan to include an existing conditions assessment, a constraints analysis, an analysis of market conditions, an outreach plan to engage key business and property owners, and recommendations of actionable strategies. Staff received proposals from five firms, all of which contained a proposed scope of work consistent with the requirements outlined in the RFP. The firms that submitted a proposal and the associated costs for the proposals are listed in the following table.
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Proposals
Consultant Cost
Economics Consulting Oregon, Ltd. $65,730
Hdl Companies $114,000
Kosmont Companies $93,900
The Natelson Dale Group, Inc. $86,200
RSG $118,040
After reviewing the five submitted proposals based upon the firm’s qualifications, related experience, completeness of their response, and the reasonableness of the proposed cost, staff selected The Natelson Dale Group, Inc. (TNDG) and RSG for interviews to further evaluate their project approach, methodology, and timeline for the preparation of a market analysis.
Although both firms demonstrated considerable related experience and professional and thorough responses to both the RFP and interview questions, staff recommends the approval of a Professional Services Agreement with TNDG because of their extensive technical expertise in providing the data necessary to inform the strategies to facilitate the success of the Strategic Plan, including the provision of a pro forma analysis and consultations with the development community that will be critical to understanding the feasibility of redevelopment in the Strategic Plan area.
Additionally, TNDG served as consultants to the City for the preparation of the Economic Development Strategic Plan (adopted in 2018), which included an analysis of the market demand for retail, office, industrial, and hotel land uses. TNDG also completed economic development impact analyses and strategic plans for the County of Ventura and Simi Valley. Based on their past success working on projects for the city and their understanding of local issues, TNDG has the experience to provide the technical data necessary to support a reevaluation of the redevelopment potential of the Strategic Plan area.
The proposed scope of work details an outreach plan that will include one-on-one communications with property owners in the Strategic Plan area, an assessment of existing conditions that includes a constraints analysis, an analysis of market conditions, the development of recommendations on land uses, scale, density, and potential market demand, a pro forma analysis, and a demonstration of how the recommendations can be leveraged to maximize potential results. Their proposed scope of work provides an understanding of how to gather the appropriate data and use that data to proactively inform land use planning goals and objectives. The scope of work also includes four in- person presentations to City committees and/or Council and staff, as well as coordination meetings with staff.
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The proposal from TNDG outlines a schedule to complete the market analysis in four months. The consultant team will be led by Roger Dale, who serves as the Managing Principal for the firm. He has been a project manager with TNDG for 36 years and personally managed the past city projects described above. His background includes real estate development, economic development, regional economic analysis, environmental and land use policy, financial forecasting, and renewable energy, and his project experience includes the preparation of regional-scale economic development strategic plans, real estate market forecasting, demographic research and modeling, fiscal impact analysis, cost/benefit analysis, redevelopment, business retention and attraction, and workforce development program assessments.
Staff recommends approving a standard professional services agreement for $86,200, with a contingency in the amount of $13,800, for a total not to exceed amount of $100,000.
FISCAL IMPACT
An appropriation of $100,000 is required for The Natelson Dale Group Inc services for the preparation of a market analysis in the Community Development Account No. 101- 1701-417.32-01 from available General Fund Unassigned Fund Balance.
CEQA DETERMINATIONS
City staff has determined, in accordance with Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, that the City Council’s review of whether to award a professional services agreement for the preparation of a market analysis for the Camarillo Commons Strategic Plan is not subject to CEQA review because it can been seen with certainty that there is no possibility that this review, or the recommended award of contract, will have a significant effect on the environment.
RECOMMENDATION
1. Find the award of a Professional Services Agreement to prepare a market analysis for the Camarillo Commons Strategic Plan exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline 15061(b)(3); and
2. Authorize an appropriation of $100,000 from Community Development Account No. 101-1701-417.32-01 from available General Fund Unassigned Fund Balance; and
3. Authorize the City Manager to execute CC Agreement No. 2024-193 with The Natelson Dale Group Inc. in the amount of $86,200; and
4. Authorize a contingency in the amount of $13,800, for a total not to exceed amount of $100,000; and
5.Authorize the City Manager to execute future amendments, documents, and Change Orders if required, up to the total not to exceed amount.
Market Analysis for Camarillo Commons Strategic Plan - PSA Award December 11, 2024
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ATTACHMENTS
1. Agreement 2024-193
2. RFP to Prepare Market Analysis for Camarillo Commons Strategic Plan
3. Proposal from The Natelson Dale Group
REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None