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January 25, 2022
ITEM TITLE
Agreement: Approve an Agreement Between the City, Otay Land Company, and Dudek for Technical and Environmental Consulting Services for the Development of the University and Innovation District Overlay Zone
Report Number: 22-0018
Location: Village 9, Village 10, and the University Innovation District Department: City Manager
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Adopt a resolution approving a three -party agreement between the City, Otay Land Company, LLC, and Dudek for technical and environmental consulting services in preparing the University and Innovation District overlay zone to facilitate the development and appropriate funds for that purpose. (4/5 Vote Required)
SUMMARY
On February 25, 2020, City Council initiated amendments to the form-based codes of the sectional planning area (SPA) plans for Otay Ranch Village 9, Village 10, and the University and Innovation District (UID). This action facilitates the creation of a University Innovation Overlay Zone (UI Overlay Zone) to increase opportunity to attract educational users to the City of Chula Vista.
To develop the overlay zone and complete the necessary environmental analysis, technical consultants are required.
ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a “Project” as defined under Section 15378 of the P a g e | 2
state CEQA Guidelines; therefore, pursuant to Section 15060(c)3) of the State CEQA Guidelines, the activity is not subject to CEQA.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
On November 8, 2019 the University Subcommittee of the City Council provided guidance on the proposal to create the UI Overlay Zone with clear direction to create an expanded regulatory tool (Overlay Zone) that does not dictate where a University user should go, but one that leaves flexibility for that to be determined by the University user(s).
DISCUSSION
The UI Overlay Zone would be applicable to the SPA Plan areas of Otay Ranch Village 9, Village 10, and the University Innovation District -- an area of approximately 560 developable acres across 807.5 gross acres. It would expand the area available for establishment of academic and innovation users, currently limited to the UI District SPA Plan area.
This new regulatory tool would enable flexible redistribution of currently approved land uses based on existing entitled development capacities, while meeting all open space and off -site preservation commitments and mitigations. The increased area available for establishment of educational and innovation uses would incentivize establishment of educational user(s) in the area by allowing development based on user- identified preferred location and space needs anywhere within the three SPA Plan areas. The UI Overlay Zone would promote rapid response to potential users through a partnership between the City and HomeFed Corporation (the owners of Villa ges 9 and 10), and it would include a built -in review process to enable streamlined approvals to get university users established efficiently. Development would be consistent with the adopted vision; land use character and mix; transects; and open space an d mitigation requirements of the underlying three SPA plans.
To develop the overlay zone and complete the necessary environmental analysis, technical consultants are required. Dudek and their team acquired in -depth knowledge of the UID site and surroundin g proposed development through past work on SPA plans, technical studies, and environmental document preparation for the UID and Otay Ranch University Villages. Based on this knowledge and expertise and pursuant to Chula Vista Municipal Code (CVMC) Sectio n 2.56.070, staff is recommending the City Council waive the formal bidding process and hire Dudek as a sole source.
Proposed Timeline
The timeline for the next steps:
1. Winter/Spring 2022: draft the specific UI Overlay Zone and SPA Amendments
2. Summer/Fall 2022: update technical studies and prepare the environmental document
3. Fall/Winter 2022: proposed Overlay Zone ordinance brought forward to Planning Commission for recommendation then City Council Hearing for approval.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real p roperty-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
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CURRENT-YEAR FISCAL IMPACT
The $103,475 processing cost of the UI Overlay Zone and all supporting documents will be appropriated from funds contributed by HomeFed Village III Master, LLC and HomeFed Otay Land II, LLC per Development Agreement approved by City Council on July 13, 2021 by Ordinance No. 3505.
ONGOING FISCAL IMPACT
The cost of future processing of individual development projects in accordance with the UI Overlay Zone will be paid for by project applicants.
ATTACHMENTS
1. Three Party Agreement – Dudek
Staff Contact: Kelly Broughton, Deputy City Manager