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May 19, 2026
ITEM TITLE
Community Facilities District Annexation: Initiate Annexation of Eastlake Self Storage Project into CFD No. 97-2
Report Number: 26-0169
Location: Located generally adjacent to State Route (SR) 125, south of Eastlake Dr, and north of Otay Lakes Rd, as shown more particularly on the annexation map
Department: Development Services
G.C. § 84308 Regulations Apply: No
Environmental Notice : The activity was adequately covered in previously adopted Mitigated Negative Declaration (MND) IS16 -0004, State Clearinghouse Number 2019099048 , for the Eastlake Self Storage Project.
Recommended Actions
Adopt the following resolutions:
A. Setting forth the boundaries of the proposed Annexation No. 14 into CFD No. 97-2, Improvement Area “C”;
B. Setting forth the boundaries of the proposed Annexation No. 1 into CFD No. 97-2, Improvement Area “D”;
C. Declaring the intention of the City Council to authorize the proposed Annexa tion No. 14 into Improvement Area “C” of CFD No. 97 -2, levy a Special Tax, and set a time and place for the public hearing; and
D. Declaring the intention of the City Council to authorize the proposed Annexation No. 1 into Improvement Area “D” of CFD No. 97 -2, levy a Special Tax, and set a time and place for the public hearing.
SUMMARY
The purpose of this action is to initiate the process to annex the Eastlake Self Storage property to CFD No. 97-2, Improvement Areas “C” and “D”, for purposes of establishing a long -term funding mechanism to P a g e | 2
maintain and monitor mitigation land, and to set a time and place for the public hearing on July 14, 2026, to complete the annexation process.
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 was adequately covered in previously adopted Mitigated Negative Declaration (MND) IS16 -0004, State Clearinghouse Number 2019099048 , for the Eastlake Self Storage Project. Thus, no further environmental review or documentation is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
Background
The City Council formed CFD No. 97 -2 in July of 1998 to establish a long -term financing mechanism to monitor and maintain open space within the Otay Ranch Preserve (“Preserve”). CFD No. 97-2 was initially divided into two (2) Improvement Areas, designated as Improvement Area “A” and Improvement Area “B”.
In 2003, Improvement Area “C” was established to include lands not originally included within the territory of CFD No. 97-2. Improvement Area “C” provides funds for 1) Resource Monitoring Program and 2) Preserve Operations and Maintenance activities. All properties annexing in CFD No. 97 -2 since 2003 annex into Improvement Area “C”.
The requirement for a project to annex into CFD No. 97-2 is set forth as a condition of approval as part of the environmental review and entitlement process. There have been 13 previous annexations into CFD No. 97-2 to date, as listed below:
1. Otay Ranch Village 1 West (2000)
2. Otay Ranch Village 6 (2002)
3. Otay Ranch Village 11 (2003)
4. Otay Ranch Village 12 (2005)
5. Otay Ranch Village 7 (2005)
6. Otay Ranch Village 2 (2006)
7. Otay Ranch Planning Area 12 (2013)
8. Otay Ranch Millenia (2013)
9. Otay Ranch Village 8 West (2014)
10. Otay Ranch Village 3 (2016)
11. Bonita Glen (2020)
12. Otay Ranch Village 3, Neighborhood R-20 (2022)
13. Otay Ranch Village 8 East (2024)
Property to be Annexed
The property proposed to be annexed to CFD No. 97-2 Improvement Area “C” will be annexation No. 14. The project known as Eastlake Self Storage consists of 9.35 acres and was approved for a 1,200-unit self-storage P a g e | 3
facility in 2020. The environmental impacts of the project were evaluated in Mitigated Negative Declaration (MND) IS16-0004, State Clearinghouse Number 2019099048. Impacts to the Coastal Sage scr ub, an upland habitat, were disclosed and the project was required to dedicate mitigation land off-site and annex into CFD No. 97-2 which would provide long-term funding for the monitoring and management of the resource. The special taxes set forth in Table 1 and Table 2 below will be levied to fund these monitoring and maintenance activities.
Maximum Special Taxes Improvement Area “C”
The approved maximum special tax rates for Fiscal Year 2025 -2026 for Improvement Area “C” of CFD No. 97-2 are as follows:
Improvement Area “C”
Table 1 – Maximum Special Tax for Resource Monitoring
Special Tax Category Maximum Special Tax (Resource
Monitoring)
Category I – Residential (per square foot) $0.0096
Category I – Non-Residential (per acre) $157.06
Category II – Final Mapped Property (per acre) $157.06
Category III – Undeveloped Property (per acre) $101.37
Table 2 – Maximum Special Tax for Operations & Maintenance Special Tax Category Maximum Special Tax (Operation &
Maintenance)
Category I – Residential (per square foot) $0.0153
Category I – Non-Residential (per acre) $249.34
Category II – Final Mapped Property (per acre) $249.34
Category III – Undeveloped Property (per acre) $160.94
Additionally, the project has impacts on wetlands (riparian habitat) and is required to do an extensive restoration project of adjacent wetlands. The requirements for restoration are set forth in the Habitat Mitigation and Monitoring Plan, Eastlake Storage Mitigation Project, March 2025. This work has started and will be completed within nine (9) months. Once the work is completed the applicant will maintain it for a minimum of 5 years until accepted by the City of Chula Vista (“City”) and resource agencies based on success criteria. During the 5-year maintenance period a portion of the maximum tax will be levied to establish a reserve fund. Once the re-established wetlands are accepted by the City and resource agencies, they will be maintained by the City with funding from CFD No. 97-2. The requirements for management of the wetlands are detailed in the Long-Term Management Plan, Eastlake Self storage Mitigation Project, dated June 2025.
Because CFD No. 97-2 has not previously maintained wetlands resources, a new Improvement Area “D” was created to fund the on-going maintenance activities. Once the City takes over maintenance, the special taxes will be levied at a rate to fully fund the annual maintenance requirements in the Long -Term Management Plan, not to exceed the maximum special tax rat es set forth below. Eastlake Self Storage annexation to CFD No. 97-2 Improvement Area “D” is Annexation No. 1.
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Maximum Special Taxes Improvement Area “D”
The approved maximum special tax rates for Fiscal Year 2025 -2026 for Improvement Area “D” of CFD No. 97-2 are as follows:
Improvement Area “D”
Table 3 – Maximum Special Tax
Long Term
Management Fund
Requirement
Long Term
Management
Reserve &
Administrative
Expenses
Total Long-Term
Management Costs
$990 / acre $473 / acre $1,463 / acre
The rates for special taxes shown in Tables 1, 2 and 3 above are proposed to be increased each fiscal year, beginning Fiscal Year 2026 -2027, by a factor equal to the annual percentage change in the San Diego Metropolitan Area Consumer Price Index for All U rban Consumers (CPI-U, All Items) or zero percent (0%), whichever is greater. The special taxes are proposed to be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the administrator of CFD No. 97-2 may directly bill the special tax and may collect special taxes at a different time or in a different manner if necessary.
City staff has reviewed the proposed annexation boundary maps and has found them acceptable and ready for consideration by City Council. A reduced copy of the maps is provided as Attachments 1 & 2 to this report.
The amount of the special tax levy and annual process for levying the special taxes are set for th in the Rate and Method of Apportionment for Improvement Area “C” and Improvement Area “D”, Attachments 3 and 4 respectively, to this report.
Proposed Resolutions
If approved, the proposed resolutions would accomplish the following:
A) Two (2) separate resolutions adopting the boundary maps for CFD No. 97 -2 are the formal actions adopting the maps and setting forth the boundaries of proposed Annexation No. 14 to CFD No. 97-2, Improvement Areas “C” and the proposed Annexation No. 1 to CFD No. 97-2, Improvement Area “D”; and
B) Two (2) resolutions of intention to annex territory to CFD No. 97-2 are the jurisdictional resolutions declaring the intention of the City Council to authorize proposed Annexation No. 14 to Improvement Area “C” and Annexation No. 1 to Improvement Area “D” of CFD No. 97-2, and set the time and place for a subsequent public hearing to declare the results of a special election and formally authorize the levy of a special tax. The public hearing is planned to take place July 14, 2026, City Council meeting.
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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.). 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
There are no current year fiscal impacts to the General Fund or the Development Services Fund as a result of this action. All costs of this annexation to the districts are borne by the developer and the on -going administration will be funded entirely by the district.
ONGOING FISCAL IMPACT
There are no ongoing year fiscal impacts to the General Fund or the De velopment Services Fund as a result of this action. Funding for CFD No. 97 -2 is generated by special taxes levied annually on property owners.
The taxes are secured by each property and neither the General Fund or Development Services Fund has any obligation to provide funding.
ATTACHMENTS
1. Boundary Map for CFD No. 97-2, Improvement Area C, Annexation No. 14
2. Boundary Map for CFD No. 97-2, Improvement Area D, Annexation No. 1
3. Rate of Method of Apportionment (“RMA”) for CFD No. 97-2, Improvement Area C, Annexation No. 14 4. Rate of Method of Apportionment (“RMA”) for CFD No. 97-2, Improvement Area D, Annexation No. 1 Staff Contacts: Alyssa Moreno, Senior Management Analyst, Development Services Kim Elliott, Interim Facilities Financing Manager, Development Services Roy Sapa’u, Deputy City Manager/Director of Development Services