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October 7, 2025
ITEM TITLE
Chula Vista Auto Park BID: Adopt a n Ordinance to Repeal CVMC Chapter 5.05 - Chula Vista Auto Park Business Improvement District, Disestablish the Auto Park Business Improvement District, and Order the Disposal of Remaining Assets
Report Number: 25-0238
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 Regulations Apply: 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 an Ordinance to Repeal Chapter 5.05 of Chu la Vista Municipal Code , disestablish the Auto Park Business Improvement District, and order the disposal of remaining assets.
SUMMARY
The Chula Vista City Council established the Automobile Park Business Improvement District in 2009 to provide enhanced economic development and promotional and 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 lo ng been defunct; therefore, City staff recommends 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 activity which does not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
In 2009, the City Council approved the es tablishment 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 levy of 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 allowed 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.
On July 31, 2024, the City received a letter from Sunroad Enterprises, representing Toyota Chula Vista and BMW of Chula Vista, requesting to disestablish the Auto Park BID. The letter stated that the Auto Park BID had been defunct for several years, with no action being taken by the organization (Attachment 2). Sunroad Enterprises indicated that over the years some of the participating dealerships changed ownership, and in 2021 some of the new owners chose not to participate in the Auto Park BID or pay the assessment. The Auto Park BID was originally established to maintain a freeway sign constructed by the City, pay for marketing and advertising for auto dealerships within the Auto Park BID, and support various other activities that the Chula Vista Auto Park business owners no longer consider beneficial. Additionally, the City has plans to demolish the freeway sign that was originally erected to market the Chula Vista Auto Park.
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 A uto Park BID, the Association would refund each member dealership with their proportionate percentage of contributions to the Auto Park BID based on the amount of funds in the account at the time the Auto Park BID is disestablished. Proportionate percentag es 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%
Staff recommends that the City Council order the disbursement of remaining assets of the Auto Park BID in accordance with the proportional percentage identified in the above table.
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. On September 9, 2025, the City Council adopted a Resolution of Intention ( Attachment 3) to hold a public hearing to consider disestablishing the Auto Park Business Improvement District, at which time any and all persons interested in or objecting to the proposed disestablishment may appear and be heard. Pursuant to State Law, the City Council set a public hearing date of October 7, 2025. According to State Law, the public hearing must take place not less than 20, or more than 30 days after the adoption of the Resolution of Intention. The public hearing date of October 7, 2025 is twenty-eight (28) days after the City Council adopted its Resolution of Intention.
Staff also recommends that the City Council adopt an ordinance to repeal Chula Vista Municipal Code Chapter
5.05 and disestablish the Auto Park BID.
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 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.).
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 Chula Vista Auto Park Association, Inc. the entity set up to collect dues from the auto dealerships pursuant to a schedule in the Auto Park BID resolution adopted by the City.
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., dated July 31, 2024
3. City Council Resolution 2025-141
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Staff Contact: Kevin Pointer, Principal Economic Development Specialist David Graham, Director of Economic Development