Otay Ranch Town Center
Amendments
City Council
Item 7.3
November 12, 2024
2VICINITY MAP
Village 11
Eastern Urban
Center
(Millenia)
University
Village 6
Village 7
Village 2
Eastlake
Village 5
Freeway
Commercial
PROJECT SITE
3PROJECT SITE
FC
-
2 (North)
(Not Part of Project)
Birch Road
FC
-
1 (South)
Otay Ranch
Town Center
4 April 2003: Otay Ranch Freeway Commercial Sectional
Planning Area Plan, Tentative Map, which
entitled approximately 1,214,000 non-
residential square footage, adopted
May 2015: Amendment, rezoned Freeway Commercial
North (FC-2) from commercial to mixed-use
residential to add 600 residential units and
two hotels
May 2019: Amendment, added 300 residential units to
Freeway Commercial North (FC-2)
April 2022: Current project application submitted to City September 2024: Planning Commission Hearing
SPA PLAN
H
P
RM
R/MU
C/MU
FC1
MU/R
H
P
RM
R/MU
C/MU
FC1
5ZONING MAP COMPARISON
Current Project2019 Plan
H – Hotel
Legend – Proposed Zoning Districts
RM – Residential (Multi-Family)
R/MU – Residential Mixed-Use
P – Public Park
C/MU – Mixed-Use Commercial
FC1 – Freeway Commercial
MU/R – Mixed-Use Residential
Legend – Proposed Zoning Districts
6EXISTING CONDITIONS
Macy’s
(Not Part of Project)
Birch Road
Project Site
7TENTATIVE MAP
8KEY PROJECT UPDATES
Macy’s
Mixed-Use Residential Lots
Legend – Site Plan
Existing Retail Buildings
1 1 Extension of Town Center Drive
2 2 Proposed Entry Plaza
4 4 Enhance Existing Outdoor Plaza
5 5
5 5 Proposed Parks
6 Proposed Private Street
6 Design Review Permits
• Authorizes Zoning Administrator to
review and approve projects requiring
Design Review
• Decision may be appealed to Planning
Commission
3 3
3 Closure of Kestrel Falls Road
2019 Land Uses Proposed Land Uses Comparison
Land Use Acres Units Acres Units Acres Units
FC-1 Freeway Commercial (South)
Freeway Commercial 78.29 0 61.7 0 -16.59 0
Residential Mixed-Use 0 0 13.86 840 +13.86 +840
Public Park 0 0 2.73 0 +2.73 0
FC-2 Freeway Commercial (North)
Hotel 7.6 0 7.6 0 0 0
Residential (multi-family) 15.5 292 15.5 292 0 0
Residential (mixed-use) 10.4 608 10.4 608 0 0
Public Park 2 0 2 0 0 0
Mixed-Use Commercial 0.3 0 0.3 0 0 0
Other 2.9 0 2.9 0 0 0
TOTAL 117 900 117 1,740 0 +840
9LAND USE COMPARISON
Land Use Entitlements vs. Proposed Amendments
* Slopes areas within the park boundaries greater than 4:1 are ineligible for park credit; therefore, the Project is credited for only 2.56 of parkland usable acres.
*
10REGIONAL SERVING COMMERCIAL
• Current SPA allocates 960,000 square feet of regional serving commercial uses at Otay Ranch Town Center.
• Existing mall is approximately 669,700 square feet.
• Existing unbuilt entitled commercial space of 290,300 square feet.
• Project is requesting the removal of 144,000 square
feet of commercial space in the Project Site.
Commercial Square Footage
11PUBLIC PARTICIPATION
Council Policy No. 400-02
July 19, 2022 – Community meeting held at Otay Ranch
Town Center
Questions/ Concerns:
• Market status of proposed residential units
• Potential commercial uses
• On-site vehicular circulation
• Potential impacts to parking, noise and public
infrastructure
12 Fourth Addendum to FEIR No. 02-04
Identifies circumstances within the proposed project not analyzed in FEIR No. 02-04 (April 1, 2003):
• Project proposes to reduce the entitled commercial square footage from 960,000 to 816,000 square feet (reduction of 144,000 square feet) • Residential land use change:
o Impacts to land use compatibility and compliance was determined to be less than significant and no mitigation required
o Existing parking can accommodate existing and future parking with an excess of 101 spaces
o Project will generate the same amount of daily traffic as the original entitled commercial center
• No new significant environmental impacts
ENVIRONMENTAL REVIEW
13PLANNING COMMISSION
Planning Commission Recommendation
September 25, 2024 – Planning Commission
recommended approval to City Council (Vote: 7-0)
Items discussed with the Commission:
• Traffic and parking impacts
• Regional commercial space reduction
• Parkland obligation
• Current temporary recreational use
City received 65 written comments in opposition
and 2 written comments in support.
14DEVELOPMENT AGREEMENT
Phase 1 Residential Development trigger of the Development Agreement requires that grading activities commence within the first seven (7) years from the date of execution for the entire Phase 1 Development, which must include construction of a minimum of 100 residential units.
If grading activities do not start by this time, the Development Agreement shall immediately and automatically terminate.
The City shall have the right to initiate a rezoning action to revert zoning for lots 1, 2, 3, 4, 5, 6 and 9 to Freeway Commercial (“FC”) zoning.
Phasing Plan
15DEVELOPMENT AGREEMENT (CONT.)
Phase 2 Residential Development trigger of the Development Agreement requires that no less than 435 residential units shall be fully entitled and permitted, with grading completed and vertical construction starting for the entire Phase 2 Development and have all of Phase 1 residential units completed construction and obtained Certificates of Occupancy, within twelve (12) years from the date of execution.
If this is not achieved in 12 years, the Development Agreement shall immediately and automatically terminate.
The City shall have the right to initiate a rezoning action to revert zoning for lots 1, 2, 5, and H to Freeway Commercial (“FC”) zoning.
Phasing Plan
16DEVELOPMENT AGREEMENT (CONT.)
Phase 3 Residential Development trigger of the Development Agreement requires that all 840 residential units be fully entitled and have all grading and building permits issued by the City within fifteen (15) years from the date of execution.
If this is not achieved in 15 years, the Development Agreement shall immediately and automatically terminate.
The City shall have the right to initiate a rezoning action to revert zoning for lots 7 and 8 to Freeway Commercial (“FC”) zoning.
Phasing Plan
17 In accordance with CVMC Chapter 19.48.025, the Project requires a dedication of 3.01 acres for Community Purpose Facilities (“CPF”) for a maximum of 840 units and 1.56 acres for a minimum density of 435 units.
A CPF Agreement shall be entered into prior to the
recordation of the first Final Map.
Potential options in the CPF Agreement:
• Provide excess of 10% deed restricted residential
units on the number of units built in the Project
DEVELOPMENT AGREEMENT (CONT.)
Community Purpose Facilities
18 • Provide indoor community space on the Mall Property at a ratio of 7,800 square feet of affordable CPF space per 1 acre of required community purpose facility obligation. • The affordable CPF space would be provided an allowance for tenant improvements that would result in a rent-free space on the Mall Property.
DEVELOPMENT AGREEMENT (CONT.)
Community Purpose Facilities
19 • The Project is required to provide up to 6.57 usable acres of developed parkland if the project constructs 840
multifamily residential units.
• If built in phases, the amount of parkland provided in each phase shall be proportional to the units built as
indicated in the below chart.
DEVELOPMENT AGREEMENT (CONT.)
Parkland Obligations
20 • After construction of the 350th residential unit, the remaining parkland obligation of up to 4.01 usable
acres will be satisfied via payment of in-lieu park
benefit fees.
DEVELOPMENT AGREEMENT (CONT.)
Public Benefit Contribution
• A Public Benefit Contribution of $5,000 per residential unit will be provided to the City
Parkland Obligations
21ECONOMIC IMPACT ANALYSIS
22ECONOMIC IMPACT ANALYSIS (CONT.)
Table II-1: Recurring Annual Impact – Direct, Indirect, and Induced Economic Impacts – County of San Diego (1)
Existing
Scenario
Proposed
Scenario
Difference -
Gain/(Loss)
I. Employment (Full-Time Equivalent)
A. Freeway Commercial – Existing 2,643 2,643 0
B. Freeway Commercial – Remaining 1,053 531 (522)
C. Residential Mixed-Use 0 15 15
D. Total Employment 3,696 3,189 (507)
II. Personal Income
A. Freeway Commercial – Existing $179.6 M $179.6 M $0.0 M B. Freeway Commercial – Remaining $71.5 M $36.0 M ($35.5) M C. Residential Mixed-Use $0 M $0.7 M $0.7 M
D. Total Personal Income $251.1 M $216.3 M ($34.8) M
III. Economic Output
A. Freeway Commercial – Existing $664.5 M $664.5 M $0
B. Freeway Commercial – Remaining $264.8 M $133.5 M ($131.3) M C. Residential Mixed-Use $0 M $2.4 M $2.4 M
D. Total Economic Output $929.3 M $800.4 M ($128.9) M (1) Defined as follows:
Direct impact includes all direct effects the buildout and stabilization of each scenario on the region. Indirect impacts are changes caused by business-to-business purchases as they respond to new demands of directly affected industries.
Induced effects are the increased sales within the region from household spending of employees within each sector.
23ECONOMIC IMPACT ANALYSIS (CONT.)
Table II-2: Recurring Annual Impact – Total Direct, Indirect, and Induced Economic Impacts – City of Chula Vista (1)
Existing
Scenario
Proposed
Scenario
Difference -
Gain/(Loss)
I. Employment (Full-Time Equivalent)
A. Freeway Commercial – Existing 2,070 2,070 0
B. Freeway Commercial – Remaining 825 416 (409)
C. Residential Mixed-Use 0 11 11
D. Total Employment 2,895 2,497 (398)
II. Personal Income
A. Freeway Commercial – Existing $128.4 M $128.4 M $0
B. Freeway Commercial – Remaining $51.1 M $25.7 M ($25.4) M C. Residential Mixed-Use $0.0 M $0.5 M $0.5 M
D. Total Personal Income $179.5 M $154.6 M ($24.9) M
III. Economic Output
A. Freeway Commercial – Existing $466.2 M $466.2 M $0
B. Freeway Commercial – Remaining $185.7 M $93.6 M ($92.1) M C. Residential Mixed-Use $0.0 M $1.6 M $1.6 M
D. Total Economic Output $651.9 M $561.4 M ($90.5) M (1) Defined as follows:
Direct impact includes all direct effects the buildout and stabilization of each scenario on the region. Indirect impacts are changes caused by business-to-business purchases as they respond to new demands of directly affected industries.
Induced effects are the increased sales within the region from household spending of employees within each sector.
CONSIDERATIONS
Actions Necessary to Approve the Project:
1. Adopt a Resolution (Resolution A) to:
• Certify the Fourth Addendum (IS22-0002) to FEIR 02-04); and • Amend the Chula Vista General Plan (GPA22-0001), the Otay Ranch General Plan Development Plan (GDPA22-0001), the
Otay Ranch Freeway Commercial Sectional Planning Area Plan (SPA22-0001); and
• Approve Tentative Map (TM22-0002)
CONSIDERATIONS
Actions Necessary to Approve the Project:
2. Place the following ordinances on first reading:
• Ordinance B – Modifications to the Otay Ranch Freeway Commercial Planned Community District Regulations; and
• Ordinance C – Change in zoning from commercial to mixed-use residential; and
• Ordinance D – Development Agreement allowing the Project to be constructed in phases; the Community Purpose Facility obligation, Parkland obligation and a Public Benefit Contribution.
CONSIDERATIONS
Actions Necessary to Deny the Project:
Adopt a Resolution (Resolution E) to deny a Fourth Addendum (IS22- 0002) to the Final Second Tier Environmental Impact Report (FEIR 02- 04), Amendments to the Chula Vista General Plan (GPA22-0001), the Otay Ranch General Plan Development Plan (GDPA22-0001), the Otay Ranch Freeway Commercial Sectional Planning Area Plan (SPA22- 0001), including Associated Regulatory Documents, a Zone Change (ZC22-0001), a Tentative Map (TM22-0002), and a Development Agreement.
27REGIONAL SERVING COMMERCIAL
EXAMPLE
Commercial Square Footage
28REGIONAL SERVING COMMERCIAL
• As an Example - As currently built, the existing mall has a Floor Area Ratio (FAR) of 0.196.
• 14.23 acres currently vacant in proposed rezone area. • 14.23 * 0.196 = 121,492 square feet of commercial
space that could be developed today.
• The rezoning of these acres is a lost opportunity for regional serving commercial to be built.
Commercial Square Footage