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May 14, 2024
ITEM TITLE
SPA Plan Amendment: Amendments to the Otay Ranch Village Eight East Sectional Planning Area Plan, Including Associated Regulatory Documents and Tentative Map Report Number: 24-0101
Location: Generally, south of the eastern extension of Main Street, east of Otay Ranch Village Eight West, west of State Route 125, and north of the Otay River Valley (APN: 644-070-21) (“Project Site”) Department: Development Services
G.C. § 84308: Yes
Environmental Notice : The Project is adequately covered in the Final Environmental Impact Report (“FEIR”) and Mitigation Monitoring and Reporting Program for the Otay Ranch University Villages (FEIR 13- 01; SCH #2013071077; adopted by City Council Resolution No. 2014-232 on December 2, 2014), only minor technical changes or additions to FEIR 13 -01 are necessary, and that none of the conditions described in Section 15162 of the CEQA Guidelines calling for the preparation of a subsequent document exist; therefore, the Director of Development Services has called for the preparation of a Third Addendum to FEIR 13-01 for consideration.
Recommended Action
That the City Council conduct a public hearing and take the following actions:
A. Adopt a resolution approving:
1. Third Addendum to FEIR 13-01 (IS22-0003) and amendments to the Chula Vista General Plan (GPA22-0002), the Otay Ranch General Development Plan (GDP22-0002), and the Otay Ranch Village Eight East Sectional Planning Area Pla n (SPA22 -0006) (including the related new Planned Community District Regulations) to reflect the proposed changes to zoning within Otay Ranch Village Eight East (ZC22-0003) and to other regulatory documents in accordance with the required findings and subject to the conditions contained therein; and
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2. A Tentative Subdivision Map incorporating the proposed changes to the Otay Ranch Village Eight East Sectional Planning Area (TM22 -0005) in accordance with the required findings and subject to the conditions contained therein; and
3. A Community Purpose Facilities Agreement; and
B. Place an ordinance on first reading to approve modifications to the Otay Ranch Village Eight East Planned Community District Regulations in accordance with the required findings and subject to the conditions contained therein (First Reading); and
C. Place an ordinance on first reading to approve a change in zoning from single family residential to multi-family residential (First Reading).
SUMMARY
HomeFed Otay Land II, LLC (“Applicant” or “Developer”) is proposing to amend the Otay Ranch Village Eight East Sectional Planning Area (“SPA”) Plan and the associated Planned Community District Regulations to modify the existing land use designation, zoning, and plan to eliminate medium -density single -family residential uses, reallocate the same previously approved 3,276 residential units across 18 parcels, replace the mixed-use land use with Village Core land uses, and expand the Village Core into the northern portion of the SPA plan (“Project”). The Project includes a new Tentative Map to modify the alignment of La Media Parkway, implements minor modifications to internal streets, and expands the planned multi-modal bridge at State Route 125 (“SR -125”) to accommo date pedestrians, bicycles, and Neighborhood Electric Vehicles.
Additionally, the Project includes a Community Purpose Facility (“CPF”) Agreement.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed Project for compliance with the California Environmental Quality Act (“CEQA”) and determined that the Project is adequately covered in the previously adopted Final Environmental Impact Report for the Otay Ranch University Villages (FEIR 13 -01; SCH #2013071077; and adopted by City Council Resolution No. 2014 -232 on December 2, 2014, with a First Addendum adopted by City Council Resolution No. 2016-254 on December 6, 2016, and a Second Addendum adopted by City Council Resolution No. 2021-120 on June 15, 2021), in that only minor technical changes or additions to this document are necessary, and that none of the conditions described in Section 15162 of the CEQA Guidelines calling for the preparation of a subsequent document exist. A Third Addendum to FEIR 13- 01 (IS22-0003) has been prepared for consideration with the proposed Project (Attachment 2). FEIR 13-01 is provided with hyperlinks at the end of the staff report for reference.
The Third Addendum to FEIR 13 -01 (“Third Addendum”) identifies all changed circumstances within the proposed Project that were not analyzed in the FEIR 13 -01 certified on December 2, 2014 . The analysis contained within the Third Addendum outlines how, while maintaining the same previously authorized 3,276 residential units, reducing the use intensity for approximately 918 dwelling units decreases anticipated household size, thereby lowerin g impacts to schools, traffic, and other public facilities.
Specifically, the proposed Project would result in a decrease in daily external traffic trip generation of approximately 4,000 trips due to the changes in land use. Anticipated travel behaviors fo r the proposed Project would be similar to those analyzed as part of FEIR 13 -01. The Third Addendum concludes that the P a g e | 3
proposed Project would not create any new significant environmental impacts nor exacerbate any significant impacts that were previously analyzed and accounted for in FEIR 13-01.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
On April 10, 2024, the Planning Commission voted 6-0 to adopt Resolution No. 2024-07, recommending that the City Council adopt a Resolution and two Ordinances approving the proposed amendments (Attachment 9).
DISCUSSION
The Village Eight East SPA Plan and Tentative Map were originally approved on December 2, 2014, by City Council Resolution Nos. 2014 -235 and 2014 -238, respectively. A subsequent amendment to the SPA Plan was approved on February 18, 2020 (City Council Resolution No. 2020-036), which authorized the transfer of 284 multi -family units from Village Eight East to Otay Ranch Village Eight West (“Village Eight West”), reducing the total number of units authorized in Village Eight East from 3,560 to 3,276.
The Applicant evaluated the viability of implementing the land uses authorized in the 20 20 SPA Plan and concluded that the approved plan does not accommodate innovative and modern home types that meet current market demands. The proposed Project’s land use plan provides for maximum flexibility to develop the site over time and provide the opportunity for home ownership and rental opportunities to meet changing demographics, the needs of the community, while maintain ing the same previously authorized 3,276 residential units in the SPA (Attachment 5). By providing additional for-sale homes and apartments in Village Eight East, the proposed Project will help address local housing needs. In addition, the Applicant and the City are cooperating with Caltrans as they consider the design of the SR -125 and Main Street/La Media Parkway interchange.
Proposed Amendments
Chula Vista General Plan and Otay Ranch General Development Plan The Chula Vista General Plan identifies Village Eight East as a mixed-use village comprised of single-family, multifamily, and mixed-use residential uses, as well as mixed-use commercial and other village-serving uses.
The Otay Ranch General Development Plan currently authorizes the uses as designated in Table One below, which compares the approved land uses from the existing SPA Plan to those proposed with the Project under consideration:
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Table One
Village Eight East SPA Plan
Land Use Entitlements vs. Proposed Amendments
2020 Land Uses 2024 Land Uses Comparison
Land Use Acres Units Acres Units Acres Units
Medium Residential 124.9 918 0 0 -124.9 -918
Medium High
Residential
2.1 25 132.2 1,664 +130.1 +1,639
High Residential/ School
Site
10.8 11.3 264 +0.5 +264
Village Core 65.2 2,333 62.7 1,348 -2.5 -985
Public Neighborhood
Park
7.3 0 7.3 0 0 0
Public Community Park 51.5 43.3 -8.2
Active Recreation
(AR-11)
22.6 22.6 0
Manufactured Open
Space
11.2 0 16.4 0 +5.2 0
Open Space Preserve 253.6 253.6 0
Community Purpose
Facility
4.0 0 1.2 0 -2.8 0
Other 21.6 22.3 +0.7
TOTAL 574.8 3,276 572.9 3,276 -1.9 0
Changes to the proposed Project’s overall acreage are related to changes to the right-of-way for SR-125.
The proposed Project will remain consistent with the Chula Vista General Plan’s Land Use & Transportation, Economic Development, Housing, Public Facilities & Services, and Environmental objectives and policies (Attachment 3). The proposed Project will also remain consistent with the Otay Ranch General Development Plan’s land use goals and objectives of integration and compatibility within the village and with adjacent communities and natural resources (Attachment 4).
Village Eight East SPA Plan
The original Village Eight East SPA Plan established the vision for Village Eight East and defined the land use character and mix of uses, design criteria, circulation system, and public infrastructure requirements for the Project.
The proposed Project would update the SPA boundary to accommodate revisions to the SR-125 interchange design. In addition, the proposed Tentative Map includes off -site grading impacts to accommodate ramps and the frontage road that are part of the interchange design , vehicular access and recycled water facilities to the City’s active recreation site (AR-11) on the east side of SR-125 and south of future Otay Ranch Village Nine (Attachment 7).
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The following appendices to the SPA Plan (Attachment 5) have been updated:
Design Plan (Attachment 5a)
The Village Eight East Design Plan guides planning and development by defining intended character and design elements of the planned community. Minor amendments are proposed that would allow more design flexibility for housing product types.
Public Facilities Financing Plan and Fiscal Impact Analysis (Attachment 5b) Preparation of a Public Facilities Finance Plan (“PFFP”) is required by the Chula Vista Municipal Code (“CVMC”). The purpose of the PFFP is to establish compliance mechanisms and standards to ensure public facilities, infrastructure and service s will exist, or concurrently be provided, to meet the demands of infrastructure and climate protection generated by new development. Consequently, amendments to a SPA Plan require an amendment or supplement to the PFFP. The proposed Project includes a supplemental PFFP that addresses the proposed changes.
The proposed Project’s supplemental PFFP is based on the updated phasing and information presented in the proposed amendments. The Applicant prepared analyses to supplement the technical reports associated with the original project to determine whether the proposed Project’s amendments would result in any changes to financing, constructing, or maintaining public facilities within Village Eight East. The technical analyses and updates demonstrate that the proposed Project will not result in changes to Mitigation Measures or Thresholds and Compliance Measures established in the original PFFP.
Pursuant to the requirements of CVMC 19.09.040, the Applicant prepared a fiscal impact analysis for the proposed Project (Attachment 5i). The Applicant utilized the City of Chula Vista fiscal year 2023- 2024 model and assumed full residential buildout with no commercial square footage – the most conservative scenario. The proposed Project includes development of 20,000 s quare feet of commercial uses; therefore, the anticipated fiscal outcome will likely be more positive than the most conservative scenario. The residential -only scenario indicates that the proposed Project will generate a fiscal surplus in Years 1 - 20 ( ranging from $452,114 to $3,573,827), representing cumulative revenue of $48,014,928 through Year 20.
Affordable Housing Program (Attachment 5c)
Minor amendments are proposed to reflect the proposed Project changes and changes to housing policies in the City of Chula Vista and the State of California. None of the proposed changes result in changes to Mitigation Measures or Thresholds established in the original PFFP. Air Quality Improvement Plan (Attachment 5d)
Proposed changes/updates to the Air Quality Imp rovement Plan (“AQIP”) are consistent with City requirements. The revised AQIP reflects changes in the Village Eight East SPA Plan and changes in state Building and Energy Codes. Code references and greenhouse gas reduction measures have been updated, but no proposed changes have any impact on existing Mitigation Measures or Thresholds established in the original PFFP.
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Water Conservation Plan (Attachment 5e)
Updates reflect the proposed changes in residential unit type, the net effect of which is a reduction in projected water use by approximately 38.1 percent compared to the original SPA Plan. None of the proposed changes to the Water Conservation Plan result in changes to Mitigation Measures or Thresholds established in the original PFFP.
Non-Renewable Energy Conservation Plan (Attachment 5f) Updates reflect proposed changes in the Village Eight East SPA Plan and to California Building and Energy Codes, which have no impact on Mitigation Measures or Thresholds established in the original PFFP.
Preserve Edge Plan (Attachment 5g)
Proposed changes include the minor reconfiguration of lots and land uses along the Preserve Edge adjacent to the parcels subject to the proposed amendments. The revised Tentative Map maintains the required 100 -foot Preserve Edge w ithin the Village Eight East footprint. None of the proposed changes to the Preserve Edge Plan result in changes to Mitigation Measures or Thresholds established in the original PFFP.
Fire Protection Plan (Attachment 5h)
Proposed amendments to the Fire Protection Plan for Village Eight East reflect the proposed Project changes, but the requirements of the original plan remain applicable with some minor adjustments.
The 100-foot Fuel Modification Zones will remain the same throughout the Village Eight East Project area. None of the proposed changes to the Fire Protection Plan result in changes to Mitigation Measures, Conditions of Approval, or Thresholds established in the original PFFP.
Planned Community District Regulations (Attachment 6) Proposed replacement zoning, development, and design standards and regulations to allow greater design flexibility and seamless implementation of the intended land uses in Village Eight East . As discussed more below, the new Planned Commu nity District Regulations would also implement a more modern and streamlined approach to the design and development review process in Village Eight East, which process would allow all design review applications to be approved by the City Zoning Administrator.
Zone Changes
The proposed Project would eliminate single -family zoning and the single -family residential land use designation in Village Eight East and change the mixed -use designation to Village Core. The Village Core would expand to include parcels north of Main Stre et in the northeastern portion of the proposed Project area. These changes would allow for more development flexibility with regard to housing types and use mix within Village Eight East.
Regulatory Changes
The proposed Project would update the zoning, development, and design standards and regulations to allow greater design flexibility and seamless implementation of the intended land uses in Village Eight East. The P a g e | 7
proposed Project would also implement a streamlined approach to the design and development review process within Village Eight East to allow all design review applications to be reviewed by the City’s Zoning Administrator.
The Planned Community District Regulations have been modified to maximize design flexibility and streamline processes (Attac hment 6). For example, required parking and common open space may be combined and implemented as joint -use facilities shared between adjoining parcels. Parcels on opposite sides of a public street as designated on the proposed Tentative Map would not be co nsidered adjoining for these purposes. Density would be calculated as a measure of the total number of dwelling units across a parcel or project area and would not be tied to home type. Building separations – and some building setbacks – would be dependent on state regulations in the California Building and Fire Codes. Required parking would be calculated consistent with standards established by the Institute of Transportation Engineers ( “ITE”).
Requiring development standards to be consistent with regulati ons established by other agencies allows developers to be more creative with home types and project designs while keeping the City (and future applicants) from having to navigate amendments to the development regulations every time an innovative design approach is proposed.
Additionally, the proposed Project would increase efficiency in the administration and implementation of the SPA Plan by allowing all proposed projects to be reviewed administratively and requiring only a limited number of uses to obtain conditional permits. The Design Review process would be administered by the Zoning Administrator, who would also be authorized to approve minor modifications to the development regulations within clearly established parameters. Zoning Administrator decisi ons are appealable to the Planning Commission.
A well-defined procedure for new projects would require applicants to utilize a specialized Design Review checklist for Village Eight East, which includes obtaining preliminary approval from the Developer prio r to submittal for City review. It would also require applicants to ensure densities are consistent with allowances across the different land use areas and commercial and residential standards are maintained with respect to allowed square footage and/or unit counts.
Tentative Map
The proposed Project would incorporate the changes as part of an amended Tentative Map, though the overall number of housing units allowed within the SPA would not change (Attachment 7). The proposed changes would redistribute residential land uses and housing units across the SPA. The proposed Tentative Map would also include updated street designs and layouts, including expanded infrastructure for trails, bicycle lanes, and separated tracks for alternative modes of transportation, as well as relocating and expanding a multi-modal bridge crossing SR-125.
Village Eight East would be redesigned to better complement Village Eight West and create a cohesive planned community between the two villages.
Village Eight East Community Purpose Facility Agreement The proposed CPF Agreement between the Applicant and the City of Chula Vista would authorize the transfer of 2.8 acres of the 4.0-acre Village Eight East CPF Obligation from Village Eight East to Otay Ranch Planning P a g e | 8
Area 20 (Attachment 8). There will be a 1.2 -acre CPF site within Village Eight East and is refl ected on the Tentative Map.
Compliance with Council Policy No. 400-02 (Public Participation) The Applicant held a community meeting on October 12, 2023, at the Cota Vera Welcome Center in Village Eight West with two City staff representatives in attendanc e. Neighborhood attendees from Village Eight West, approximately 12, asked questions related to the timing of construction for the SR -125 interchange, the reasoning behind the proposed changes to permitted housing types, the proposed permitted home types, plans for affordable housing in the community, and transit service. They spent a significant portion of the meeting sharing their concerns about the adequacy of parking in their respective neighborhoods. Some residents requested additional information rega rding the proposed trail connection along portions of the shared boundary between the two planned communities.
Property owners and residents within 500 feet of the proposed Project were notified by mail of the community meeting, and the Cota Vera Homeowner s Association provided residents within Village Eight West with a meeting notice via e-mail.
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 property -related financial conflict of interest under Californ ia 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.).
Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
All costs to process this request are borne by the Applicant, resulting in no current-year fiscal impact to the General Fund or the Development Services Fund.
ONGOING FISCAL IMPACT
Based on the Fiscal Impact Analysis Model, the proposed Project is estimated to generate between approximately $452,114 and $3,573,827 per year (increasing each year as more residential units are developed) in net positive fiscal impact to the City during the first 20 years of operation and a cumulative total net positive impact of approximately $48,014,928 over the same period.
ATTACHMENTS
1. Location Map
2. Third Addendum to FEIR 13-01
a. Comprehensive Project Information Form
b. Air Quality Greenhouse Gas Memo
c. Noise Memo
d. Geotechnical Report
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e. Paleontology Memo
f. Biology Memo
g. Storm Water Quality Management Plan
h. Drainage Study
i. Sewer Evaluation
j. Water Evaluation
k. Health Risk Assessment Screening Letter
3. General Plan Amendment Report
4. Otay Ranch General Development Plan Amendment Report
5. Otay Ranch Village Eight East Sectional Planning Area Plan a. Village Design Plan
b. Supplemental Public Facilities Financing Plan
c. Affordable Housing Program
d. Air Quality Improvement Plan
e. Water Conservation Plan
f. Non-renewable Energy Conservation Plan
g. Preserve Edge Plan
h. Fire Protection Plan Addendum
i. Fiscal Impact Analysis Summary Report
6. Otay Ranch Village Eight East Planned Community District Regulations
7. Tentative Map
8. Community Purpose Facilities Agreement
9. Planning Commission Resolution No. 2024-07
10. Disclosure Statement
HYPERLINKS
1. Final Environmental Impact Report No. 13-01, certified on December 2, 2014 a. Part 1
b. Part 2
c. Part 3
d. Part 4
e. First Addendum
f. Second Addendum
Staff Contact: Arturo Ortuño, Senior Planner, Development Services Desmond Corley, AICP, Principal Planner, Development Services Laura C. Black, AICP, Director of Development Services