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September 9, 2025
ITEM TITLE
Business Improvement District: Declare an Intention to Hold a Public Hearing to Consider Disestablishing the Automobile Park Business Improvement District
Report Number: 24-0265
Location: Along Main Street/Auto Park Drive from I-805 to the west and Nirvana Street to the east; including all commercially zoned parcels between Nirvana Street and I-805, as well as all properties on Auto Park Drive that can accommodate transportation sales businesses.
Department: Economic Development
G.C. § 84308: No
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 of intention setting a public hearing on October 7, 2025, to consider disestablishing the Chula Vista Auto Park Business Improvement District.
SUMMARY
The Chula Vista City Council established the Automobile Park Business Improvement District in 2009 to provide enhanced economic development and promotional an d marketing activities. At the same time, the City Council also codified Chula Vista Municipal Code Chapter 5.05 —Chula Vista Auto Park Business Improvement District. The Business Improvement District has long been defunct; therefore , City staff recommends taking steps toward disestablishing the district and repealing Chula Vista Municipal Code Chapter 5.05.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the proposed activity consists of a governmental fiscal P a g e | 2
activity which does not result in a physical change in the environ ment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
In 2009, the City Council approved the establishment of the Chula Vista Auto Park Drive Business Improvement District (BID), pursuant to the Parking and Business Improvement Law of 1989, to promote the area as a premier employment and commercial hub and to support local transportation -related sales businesses. This approval allowed the City to levy assessments on businesses located in the area, generating funds for special marketing and promotional services, including:
Constructing and maintaining the new vehicle dealers’ freeway sign; Marketing and advertising to promote the area as a destination; Maintaining medians along Auto Park Drive;
Operating an employee parking shuttle;
Implementing a district banner program;
Funding organizational operations staff; and
Administering day-to-day staff activities.
At the same time the City Council established the Auto Park BID, it also codified Chula Vista Municipal Code Chapter 5.05 (Attachment 1) to provide revenue to defray the costs of service and programs which would benefit businesses in the Auto Park. The ordinance also established an advisory board consisting of business representatives from each of the participating automobile dealerships. The purpose of the advisory board is to manage the Auto Park BID Association . The establishment of the Auto Park BID all owed for funds to be raised through a monthly levy of assessments on transportation sales businesses within the District according to the formula described in Chula Vista Municipal Code Chapter 5.05.
The City has received a request from Sunroad CV Auto, In c., representing Toyota Chula Vista and BMW of Chula Vista to disestablish the business improvement district, citing that the Association, “has been defunct for many years with no action being taken by the Association” (Attachment 2). City acknowledges that the Auto Park business owners have not experienced the benefits anticipated with the establishment of the District. Staff therefore recommends taking steps toward disestablishing the district and repealing Chula Vista Municipal Code Chapter 5.05.
Based on financials ending April 30, 2025, there was approximately $169,105 in funds, collected and held by the Auto Park BID Association. The Association is comprised of membership by Chula Vista Honda, Chula Vista Ford, Mossy Nissan Chula Vista and Toyota Chula Vista. Following City Council action to disestablish the Auto Park BID, the Association would refund each member dealership with their p roportionate percentage of contributions to the Auto Park BID based on the amount of funds in the account at the time the BID is disestablished . Proportionate percentages of contributions for each dealership are identified in the following table:
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Dealership Proportionate Percentage
Chula Vista Honda 1.11%
Chula Vista Ford 1.64%
Mossy Nissan Chula Vista 41.19%
Toyota Chula Vista 56.06%
TOTAL 100.00%
Pursuant to Section 36550 of the California Streets and Highways Code, the City Council has the ability to disestablish a business improvement area by ordinance after adopting a resolution of intention prior to conducting a public hearing on the ordinance. In accordance with California State law, the public hearing must be held before the City Counci l not less than 20, or more than 30 days after the adoption of the Resolution of Intention. As such, City staff intends to docket the public hearing at the October 7, 2025 meeting of the Chula Vista City Council. During the same meeting, City staff intends to bring forward an ordinance for City Council consideration that would both repeal Chula Vista Municipal Code Chapter 5.05 and disestablish the Chula Vista Auto Park BID. The action that is subject to City Council consideration as part of this item is the adoption of a Resolution of Intention to set a public hearing date of October 7, 2025, to consider disestablishing the Chula Vista Auto Park Business Improvement District.
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.).
Staff is not independently aware and has not been inform ed 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
There is no current-year fiscal impact associated with this action. All funding collected by the Auto Park BID is currently held in a fund managed by the Auto Park BID Association.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact associated with this action.
ATTACHMENTS
1. Chula Vista Municipal Code Chapter 5.05
2. Letter from Sunroad CV Auto, Inc.
Staff Contact: Kevin Pointer, Principal Economic Development Specialist David Graham, Economic Development Manager