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August 11, 2026
ITEM TITLE
Community Facilities District Annexation: Continued Public Hearing and Election Regarding Annexation of Eastlake Self Storage into Community Facilities District No. 97-2 Report Number: 26-0218
Location: Located generally adjacent to State Route (SR) 125, south of Eastlake Drive, and north of Otay Lakes Road, as shown on the annexation boundary map.
Department: Development Services
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 (CEQA) State Guidelines. Therefore, pursuant to CEQA Guidelines Section 15060(c)(3), no environmental review is required.
Recommended Actions
Conduct the public hearing, adopt the following resolutions, and place the ordinance on first reading:
A. Resolution making certain determinations and authorizing submittal of levy of special taxes to the qualified electors within proposed Annexation No. 14 to Community Facilities District No. 97-2 (“CFD No. 97-2”), Improvement Area “C”
B. Resolution declaring the results of the special election relating to the levy of special taxes within Annexation No. 14 to CFD No. 97-2, Improvement Area “C” C. Resolution making certain determinations and authorizing submittal of levy of special taxes to the qualified electors within proposed Improvement Area “D”, and Annexation No. 1 to Community Facilities District No. 97-2 (“CFD No. 97-2”)
D. Resolution declaring the results of the special election relating to the levy of special taxes within newly designated Improvement Area “D”, Annexation No. 1 to CFD No. 97-2 E. Ordinance authorizing the levy of a special tax in Improvement Area “D”, A nnexation No. 1 (First Reading)
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SUMMARY
The Eastlake Self Storage project (the “Project”) previously completed the City’s discretionary entitlement process, including public outreach , environmental review, Planning Commission review, and City Council approval of the project’s land use entitlements. The project consists of approximately 163,386 square feet of enclosed self -storage space within two three -story buildings and approximately 25,000 square feet of outdoor recreational vehicle and boat storage on a 9.35 acre-site. Since Project approval, the Applicant has continued implementing the approved entitlements, including obtaining environmental regulatory approvals and issuance of grading and public improvement permits.
The actions before the City C ouncil do not reconsider or reapprove the Project. Rather , they complete an outstanding requirement of the Project’s previously approved environmental mitigation program by establishing a long-term funding mechanism for environmental mitigation land through annexation into CFD No. 97 -2. The proposed special tax would apply only to the Project property and would fund perpetual monitoring, maintenance, reporting, and management of the projects required mitigation areas. No surrounding properties are subject to the proposed special tax.
On May 19, 2026, the City of Chula Vista (the “City”) City Council took the first step in the annexation and designation of a new improvement area within CFD No. 97-2 by declaring its intention to annex the territory into Improvement Area “C” and designate a new Improvement Area “D” and annexation thereto . A public hearing was held on July 14, 2026, and was continued to allow the applicant to address community concern regarding the previously approved driveway access off St. Germain Road. Following the continuation of this public hearing, the applicant worked collaboratively with Development Services and Fire Departments staff to revise the project design, eliminating the previously approved driveway connection to St. Germain Road while maintaining compliance with applicable fire and utility access requirements.
The recommended actions are the next steps in the formal proceedings to complete the two (2) annexations for the Project which includes: (a) conducting a public hearing , and (b) immediately following such public hearing, conducting an election of the qualified electors regarding the authorization to levy special taxes within each improvement area and, following the canvass of the ballots received, declaring the results of such election. Special taxes levied within Improvement Area “C” fund the costs of the Resource Monitoring Program as well as Preserve Operations and Maintenance consistent with the requirements of the Otay Ranch Resource Management Plan Phases I and II, plus a pro -rata share of Administrative Expenses of CFD No. 97-2.
In addition, the City is proposing the designation of the new Improvement Area “D” within CFD No. 97-2 to provide a dedicated funding mechanism for long -term wetland mitigation obligations within the Salt Creek Riparian Corridor of Otay Ranch Open Space Preserve and Annexation No.1 . Special taxes levied in Annexation No. 1 within Improvement Area “D” will fund the ongoing costs necessary to implement and carry out the Eastlake Self Storage Mitigation Project Long -Term Management Plan (“Long -Term Management Plan”) dated June 2025, prepared for the mitigation site located within the Salt Creek riparian corridor in the Otay Ranch Open Space Preserve (the “Mitigation Site”).
ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with CEQA and determined that the activity is not a “Project” as defined under Section 15378 of the CEQA Guidelines because the proposed activity consists of P a g e | 3
a governmental fiscal/administrative activity which does not result in a physical change in the environment.
Therefore, pursuant to Section 15060(c)(3) of the CEQA Guidelines, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
Project History and Prior Approvals
On December 8, 2016, the project applicant (the “Applicant”) submitted an application fo r development of the Project. The Project subsequently proceeded through the City’s standard entitlement process, including community outreach, environmental review, Planning Commission consideration, and City Council action.
A community meeting was held on May 15, 2017 , to sol icit public input regarding the proposed Project.
Public comments (Attachment 1) primarily focused on traffic generation, operational noise, security, visual compatibility with adjacent neighborhoods, the market need for additional self -storage facilities, and whether the site should remain undeveloped.
The initial Project design and conditions of approval were refined in response to public comments and technical analysis. Project modifications included:
preparation of a traffic analysis letter demonstrating that the project would generate traffic below the City’s threshold requiring preparation of a Traffic Impact Study; limiting customer operation hours through the Conditional Use Permit to 7:00 a.m. to 8:00 p.m., seven days per week, due to the project’s proximity to adjacent residential neighborhood; enhancement of building design and architecture to reduce visual impacts; preparation of a market demand analysis;
incorporation of enhanced perimeter security fencing consisting of decorative tubular steel fencing with masonry pilasters designed to provide security while remaining compatible with adjacent residential development; and
project access was also limited to Eastlake Drive with emergency-only access from St. Germain Road.
On March 17, 2 020, the City Council approved the project, including adoption of Mitigated Negative Declaration (IS16-0004), the Mitigation Monitoring and reporting Program, amendments to the General Plan and Eastlake II planning documents, Design Review Permit (DR16-0036), and Conditional Use Permit (CUP18-0010). A Notice of Determination was subsequently filed pursuant to CEQA.
Environmental Review
The approved Mitigated Negative Declaration (MND) evaluated the environmental effects associated with the proposed project and identified mitigation measures necessary to reduce potentially significant impacts to less -than-significant levels. Among those mitigation measures were permanent biological mitigation requirements and long -term management obligations . Those obligations require a dedicated long -term funding mechanism to provide ongoing monitoring, maintenance, reporting, adaptive management, and regulatory compliance for the life of the mitigation site. Long-term funding ensures that the required habitat P a g e | 4
monitoring, maintenance, and regulatory compliance continue after project construction is complete and for as long as required by the applicable environmental permits and approvals without fiscal impact to the public.
Project Implementation
Since approval of the Project, the Applicant has continued implementation of the approved entitlements.
Regulatory approvals associated with the mitigation program have been completed where required, and the City has issued grading and public improvement permits authorizing site work consistent with the approved project.
Following continuation of the public hearing on July 14, 2026, the Applicant met with City staff to evaluate design modifications that could satisfy applicable fire access requirements without the previously approved access road connecting to St. Germain Road. After review of the revised project design, the Fire Marshal determined that the revised project design satisfied applicable fire access requir ements without the previously approved access road connected to St Germain Road. The Applicant subsequently agreed to revise the project to remove the proposed access road while retaining the existing SDG&E easement in its current configuration.
On July 20, 2026, the Applicant participated in a community meeting with adjacent residents to discuss the revised project design and respond to questions regarding the Project.
The design refinements described above do not alter the purpose of the actions before the City Council, which remain limited to completion of the financing mechanism previously required as part of the Project’s required mitigation program.
Purpose of Subject Hearing
This public hearing is the next step in completing the implementation of a required component of the Project’s approved mitigation program identified in the discretionary entitlement and environmental review process.
Specifically, the proposed annexation into CFD No. 97 -2 establish es the long-term funding mechanism required to satisfy the Project's approved mitigation obligations. Revenues generated through the special tax on the Project are restricted in use to the perpetual monitoring, maintenance, reporting, adaptive management, administration, and stewardship of the appro ved mitigation lands in accordance with the project's environmental approvals and Long-Term Management Plan.
The proposed special tax would be levied solely on the property proposed for annexation into the CFD No. 97-2. No surrounding residential properties or members of the public are subject to the special tax as part of this action.
CFD No. 97-2 Background
The City Council formed CFD No. 97 -2 in 1998 to provide permanent funding for the Resource Monitoring Program (RMP) and the Preserve Operations and Maintenance (POM) activities within the Preserve in relation to required mitigation of upland habitats . CFD No. 97 -2 was initially divided into two (2) Improvement Areas, designated as Improvement Area “A” and Improvement Area “B”. In 2003, Improvement P a g e | 5
Area “C” was established to include lands not originally include d within the territory of CFD No. 97 -2. 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.
Improvement Area “D” is proposed to establish a dedicated financing mechanism for the long -term management of wetland m itigation habitats within the Salt Creek riparian corridor of the Preserve.
Improvement Area “D” is intended to accommodate future an nexations for projects requiring long -term funding for riparian and wetland mitigation management activities. The Project is the initial territory proposed for annexation int o Improvement Area “D”. The Improvement Area is intended to accommodate future annexations for projects with similar wetland and riparian habitat mitigation obligations requiring long-term funding for maintenance and management.
Establishing a separate Improvement Area allows future projects with similar wetland or riparian mitigation obligations to participate in the financing mechanism while maintaining separate rates and funding that are specific to those obligations.
Revenues generated through the special tax will fund the activities required per the Long-Term Management Plan for the mitigation sites as provided in the CFD Report (Attachment 2). These activities include, but are not limited to, monitoring, maintenance, reporting, and adaptive management activities , such as invasive species control, trash removal, site access control, biological monitoring, reporting, and as-needed remedial or adaptive management actions necessary to ensure the long -term sustainability, habitat function, and regulatory compliance of preserve and mitigation areas following c ompletion of initial mitigation and monitoring requirements.
Property to be Annexed
The subject property was previously owned by the City and was part of a land exchange option between the City and the property owner of a 3.94 -acre parcel in the Lower Swe etwater Valley for additional parkland for the Lower Sweetwater Community Park site. In 2011, the City Council authorized the option for the land swap, which was later exercised in 2014 consistent with the 2011 authorization.
The property proposed to be a nnexed to CFD No. 97 -2 will be included in Improvement Area “C” as Annexation No. 14, and the property will also be included in Annexation No. 1 of the proposed designated Improvement Area “D”. The Project consists of a 9.35-acre site approved for a 1,200-unit self-storage facility by the City Council in 2020 through the adoption of Ordinance No. 2020 -3485 (Amendments to Eastlake II Planned Community District Regulations) and approval of Resolution Nos. 2020 -62 (Mitigated Negative Declaration), 2020-63 (Design Review Permit) and 2020-64 (Conditional Use Permit).
Public notification and community engagement were conducted throughout the planning process. A formal Notice of Application was distributed on January 31, 2017, for the initial study, design review, and plan amendments. Following distribution of the notice, a dedicated community meeting was held for residents on May 15, 2017, at the Eastlake Shores Beach Club Pavilion to discuss the project. Public hearings noticed and held before the Planning Commis sion on February 12, 2020, and the City Council on March 17, 2020 , and April 7, 2020, provided additional opportunities for the public to review plans and provide input.
The environmental impacts of the Project were evaluated in Mitigated Negative Declaration (MND) IS16 - 0004, State Clearinghouse Number 2019099048. Specifically, impacts to the Coastal Sage Scrub, an upland P a g e | 6
habitat, and wetland and riparian habitats, were identified. To mitigate these impacts, the Project is required to dedicate off -site mitigation land and annex into CFD No. 97 -2 to provide long -term funding for the monitoring, maintenance, and management of those mitigation areas. The maximum special taxes for both annexations are as set forth below.
Maximum Special Taxes Improvement Area “C”
The initial maximum special tax rates were established when Improvement Area “C” was created. They have been adjusted annually as set for th in the original Rate and Method of Apportionment. The approved maximum special tax rates for fiscal year 2025-2026 for Improvement Area “C” of CFD No. 97-2 area 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
The rates for special taxes shown in Tables 1 and 2 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 Urban 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.
Maximum Special Taxes Improvement Area “D”
The maximum special tax rates for the new Improvement Area “D” are based on a budget prepared by a qualified biologist and approved by City environmental staff for the annual maintenance and monitoring of the wetland mitigation lands. The maximum special tax is calculated based on the annual budget for the authorized services, the establishment or replenish ment of a reserve fund, anticipated special tax delinquencies, and administrative expenses. For additional information regarding the annual expenses and the Rate and Method of Apportionment for Improvement Area “D”, please refer to the attached CFD Report dated June 2026, prepared by the special tax consultant, Harris & Associates.
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The approved maximum special tax rates for fiscal year 2025-2026 for all taxable property located w ith 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 Table 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 Urban 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 administr ator 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.
Description of Public Hearing Proceedings
The subject public hearing is being held in accordance with California Government Code Section 53339.5 et seq. The first step in the subject proceeding is the public hearing. If a majority protest exists for either (or both) annexations, the City cannot move forward with either (or both) annexations and will be prohibited from continuing proceedings for at least one (1) year. A majority protest exists if written protests are submitted by (a) the owners of one -half or more of the area of land in the territory included in the e xisting CFD No. 97 -2 or proposed annexation area; or (b) 50% or more of the registered voters (or 6 registered voters, whichever is greater) within either the existing CFD No. 97-2 or proposed annexation area. Otherwise, if a majority protest is not receiv ed, the City may submit the question to the qualified electors for each annexation, which would be the property owner. The property owner has waived time limitations and requirements to comply with the Elections Code, as authorized in the CFD Law. The recommended actions complete Annexation No. 14 to Improvement Area “C” and the designation of Improvement Area “D” and Annexation No. 1 thereto.
There are two (2) resolutions for each annexation action item, which if approved would do the following:
A) Resolution making certain determinations and authorizing submittal of the levy of special taxes to the qualified electors is the formal action making determinations relating to the annexation, setting forth specific information about the annexation, and calling an election relating to the levy of special taxes within the annexation.
B) Resolution declaring results of the special election provides for the approval of the certificate of the City Clerk, acting as election official, relating to the canvass of votes on the a nnexation and, if the qualified electors approve the annexation, the Resolution w ill formally approve and authorize the annexation, including designation of Improvement Area “D” and the levy of special taxes within each annexation.
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C) Additionally, for Improvement Area “D” only, an Ordinance authorizing the City Council, acting as the legislative body of CFD No. 97 -2 Improvement Area “D”, to levy an annual special tax on taxable property located within the boundaries of Improvement Area “D”.
DECISION-MAKER CONFLICT
Staff reviewed the property holdings of the City Council members and 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 Re form 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 these actions. All costs of th ese annexations to CFD No 97 -2, including the designation of Improvement Area “D”, are borne by the developer and the on-going administration will be funded entirely by CFD No. 97-
2. ONGOING FISCAL IMPACT
There are no ongoing year fiscal impacts to the General Fund or the Development Services Fund as a result of these actions. Funding for CFD No. 97-2 is generated by special taxes levied annually on property owners.
The taxes are secure d by each property and neither the General Fund nor Development Services Fund has any obligation to provide funding.
ATTACHMENTS
1. May 2017 Comments and Responses
2. CFD No. 97-2, Improvement Area “D” CFD Report
Staff Contact: Rebecca Bridgeford, Deputy Director, Development Services Roy Sapa’u, Deputy City Manager/Director of Development Services