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HomeMy WebLinkAbout2002-02-19; Housing & Redevelopment Commission; 344; South Carlsbad Coastal Redevelopment Project AreaHOUSING AND REDEVELOPMENT COMMISSION - AGENDA BILL 1 AB# 3 y DEPT. HD. @ TITLE: ! MG. a- 19 -oa WORK PLAN FOR DEVELOPMENT OF A LAND USE STRATEGY FOR THE SOUTH CARLSBAD COASTAL DEPT. HIRED REDEVELOPMENT PROJECT AREA CITY ATTY. e* CITY MGR. 2L RECOMMENDED ACTION: ADOPT Resolution No. 35 I , APPROVING the revised Work Plan for Development of a Land Use Strategy for the South Carlsbad Coastal Redevelopment Project Area and authorizing staff to proceed with appropriate actions to obtain consultant services for the proposed project. ITEM EXPLANATION: On July 18, 2000, the City Council and Housing and Redevelopment Commission took the necessary action to adopt a redevelopment plan for the South Carlsbad Coastal Redevelopment Area. Adoption of this plan established the boundaries for this redevelopment project area, and effectively created a second redevelopment project area for the City of Carlsbad. As one of the Council Goals for 2000-2001, a management team goal was set forth to develop and initiate implementation of a work plan which would outline the steps to be taken by the Carlsbad Redevelopment Agency to develop a Land Use Strategy and Master Plan for the South Carlsbad Coastal Redevelopment Project Area. The Housing and Redevelopment Commission approved the work plan on May 15, 2001. Staff was proceeding with actions to implement the approved work plan as part of a CounciVManagement goal for 2001-2002. Unfortunately, on November 28, 2001, the State Board of Equalization approved a rule change which will have a very detrimental financial impact on the South Carlsbad Coastal Redevelopment Area. As a result of this action, which is summarized below, actions to implement the previously approved work plan were placed on hold. Staff has now revised the work plan for development of a land use strategy for the South Carlsbad Coastal Redevelopment Area, and is submitting that revised work plan at this time for Commission approval and authorization to proceed with efforts to implement this new plan. State Board of Equalization Rule 905 As a result of energy deregulation, the State Board of Equalization decided in 1999 that it would be appropriate for them to relinquish responsibility for assessment of privately-owned merchant power plants to the County Assessor. This allowed for local assessment and situs allocation of the revenues. This decision of the Board resulted in the City of Carlsbad’s decision to move forward and expend over $200,000 to establish a redevelopment area which included the Cabrillo Power Plant, to address blighting conditions created by the plant. On October 24, 2001, the State Board of Equalization reversed its earlier decision and indicated that the Board was responsible for assessing these power plants and was not permitted to allow for local assessment. They confirmed this decision on November 28, 2001. The Board, however, did not decide on how the revenues from the assessment were to be allocated. This issue was passed to the legislature for a decision by January, 2003 (the AB# 3YL-l Page 2 effective date of the rule change). The decision by the Board financially hurts the South Carlsbad Coastal Redevelopment Area because properties must be locally assessed in order for the redevelopment agency to receive tax increment funding. This is the key funding source for implementation of redevelopment activities. The Redevelopment Agency funding is protected for one (1) year. However, after January, 2003, the Agency will lose funding related to the power plant assessment unless legislation is passed which protects redevelopment agency revenue or the Boards decision on Rule 905 is reversed. It is important to note that the City is actively challenging the decision of the Board both legally and legislatively to protect the interest of the Redevelopment Agency and hopes to have satisfactory resolution of the matter by no later than the end of the year 2002. Land Use Strateqy It was originally staff's intent to develop a Master Plan and Redevelopment Implementation Program for the South Carlsbad Redevelopment Area which would indicate the manner in which the Redevelopment Agency would proceed with various activities within the area, including land use review and initiation of public projects. Unfortunately, due to the uncertainty of the financing mechanism for redevelopment activities, staff has reconsidered the original approach and is now proposing a process which simply allows for development of the Land Use Strategy at this time. The redevelopment implementation component of the Master Plan will proceed at a later date if the financing situation changes. At this time, staff proposes to proceed with the development of three (3) separate Specific Plans for the three planning areas within the South Carlsbad Coastal Redevelopment Area. These Specific Plans will be completed in phases with Phase I representing the area south of Poinsettia Avenue to the City limits (from the railroad tracks to the ocean). Two properties located outside the boundaries of the redevelopment area will be included within this Specific Plan area. The properties are located south of the Ponto Area and are in very close proximity to the redevelopment area. The development of these two properties are key from a future land use standpoint. The development which eventually occurs on these two properties will have a direct and significant impact on future redevelopment activities. Therefore, Redevelopment Agency staff is recommending that Planning Areas F, G and H of the Poinsettia Shores properties be included together with properties within Planning Area 3 of the South Carlsbad Coastal Redevelopment Area as part of the Phase I land use planning effort. The developers of these properties have agreed to participate in the development of the Specific Plan for this area. Phase II will include the power plant and related properties. Phase 111 will include the Carlsbad Boulevard area from Cannon Road to Poinsettia Avenue. At this time, staff is anticipating that it will take approximately 6 to 9 months to complete and process each of the three Specific Plans. Each planning effort will include public meetings and workshops to obtain feedback and to allow for review of the land use strategies. Staff is now recommending against the appointment of a formal Master Plan Advisory Committee. Staff believes that from a land use strategy standpoint each of the planning areas are unique. Therefore, we now believe that it would be best to simply hold public meetings/workshops and allow all interested persons to attend rather than limiting feedback to an Advisory committee. This will also allow non-residents to participate more fully if they own property or have a business in the area. \ 2 Page 3 Summary Staff is requesting that the Commission approve the revised Work Plan which will allow for the development and processing of three (3) separate Specific Plans for the three planning areas of the South Carlsbad Coastal Redevelopment Area. Staff is also requesting that the Commission authorize staff to proceed with appropriate efforts to obtain consultant services to complete the subject Specific Plans. The consultant assistance will be used by staff to complete the desired Specific Plans as appropriate. Staff will begin efforts with Planning Area 3 as Phase I and then proceed to development of the Specific Plans for Planning Areas 1 and 2 at a later date, as deemed to be appropriate. FISCAL IMPACT: The Work Plan will require funding for the consultant services and various other activities related to development of the proposed Specific Plans. Initial estimates indicate that costs associated with the development of the three Specific Plans will be approximately $150,000 to $200,000. Adequate funding is currently available and has been appropriated previously for this project through the Redevelopment Agency. EXHIBITS: 1. Housing and Redevelopment Commission Resolution No.= approving the revised Work Plan for Development of a Land Use Strategy for the South Carlsbad Coastal Redevelopment Project Area and authorizing staff to proceed with appropriate actions to obtain consultant services for the project. 2. Revised Work Plan for Development of a Land Use Strategy for the South Carlsbad Coastal Redevelopment Area. 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 21 28 HOUSING AND REDEVELOPMENT COMMISSION RESOLUTION NO. 351 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING THE WORK PLAN FOR DEVELOPMENT OF A LAND USE STRATEGY FOR THE SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT AREA AND AUTHORIZATION TO STAFF TO PROCEED WITH APPROPRIATE ACTIONS TO OBTAIN CONSULTANT SERVICES FOR THE PROPOSED PROJECT. WHEREAS, on July 18,2000. the City Council and Housing and Redevelopment Commission :wk the necessary actions to adopt a redevelopment plan for the South Carlsbad Coastal Redevelopment kea, and WHEREAS, as one of the City Council goals for fiscal year 2000-2001, a work plan was ieveloped and approved by the Housing and Redevelopment Commission on May 15,2001 to prepare a Land Use Strategy and Master Plan for the South Carlsbad Coastal Redevelopment Project Area; and WHEREAS, the State Board of Equalization took action in November, 2001 which created some inancial uncertainty for the South Carlsbad Coastal Redevelopment Area as a result of rule changes dated to the assessment of merchant power plants; and WHEREAS, the Carlsbad Redevelopment Agency has reconsidered the original work plan tpproved by the Housing and Redevelopment Commission and prepared a revised work plan in response o the financial uncertainty created by the State Board of Equalization as related to redevelopment mplementation. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Commission of he City of Carlsbad as follows: 1. The revised Work Plan prepared for development of a Land Use Strategy for the South 3arlsbad Coastal Redevelopment Area attached hereto, is hereby accepted and approved, and the 3xecutive Director of the Carlsbad Redevelopment Agency or designee is authorized to proceed with mplementation of the subject Work Plan. Ill ::\WORD\REDPROJ.DIR\SCCRA Workplanll AB Reso.doc 1 -. . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 I7 18 19 20 21 22 23 24 25 26 27 28 c - 2. Staff is authorized to proceed with appropriate actions to obtain consultant services for implementation of the approved Work Plan for development of a Land Use Strategy for the South Carlsbad Coastal Redevelopment Area. PASSED, APPROVED AND ADOPTED at a regular meeting of the Housing and Redevelopment Commission of the City of Carlsbad, California, on the 19th day of -002, by the following vote, to wit: AYES: Commission Members Lewis, Kulchin, Finnila, Nygaard NOES: None ABSENT: Commissioner Hall ABSTAIN None ITTEST: _e ::\WORD\REDPROJ.DIR\SCCRA Workplanll AB Reso.doc 2 SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT AREA WORK PLAN FOR DEVELOPMENT OF A LAND USE STRATEGY L Introduction On July 18, 2000, the City Council and the Housing and Redevelopment Commission took the action necessary to adopt a redevelopment plan for the South Carlsbad Coastal Redevelopment Project Area. Adoption of this plan established the boundaries for this redevelopment project area, and effectively created a second redevelopment project area for the City of Carlsbad. The following work plan has been developed in an effort to outline the steps to be taken by the Carlsbad Redevelopment Agency to develop a Land Use Strategy for the South Carlsbad Coastal Redevelopment Project Area. 11. Status of Current Activities/Efforts/Studies/Negotiations Because there are currently a variety of activities already occurring as related to redevelopment of the South Carlsbad Coastal Redevelopment Area, this section will provide a status report on existing, on-going effortslstudieslnegotiations for information purposes as related to 1) redevelopment of the Encina Power Plant, 2) realignment of Carlsbad Boulevard, 3) revitalization of the €?onto Area, and 4) various other projects including negotiations with San Diego Gas and Electric for development of their commercially-zoned property. Encina Power Plant A staff team has been discussing redevelopment of the Encina Power Plant site for a year or more with the current owners, Cabrillo Power (DynegyMG). To date, an agreement has not been reached with Cabrillo Power. However, the City has indicated its position and has a goal to enter into a Memorandum of Understanding for any improvements or redevelopment of the site. The City and Redevelopment Agency’s objective is to work towards the complete demolition of the existing Power Plant at its current location on the existing site and provide for construction of a new, physically smaller Plant towards the rear of the existing site. The City and Agency’s top preference is to have the new Power Plant constructed within the area between the railroad tracks and Interstate 5, which is east of the existing Plant site. With demolition of the existing Power Plant and construction of a new Plant to the rear of the existing site, excess development property will be created which is located in a prime coastal location. It is staff‘s opinion that this excess property could be used for both private and public land uses. Following is a list of ideas generated by staff for potential use of the excess property: Public Parking. Public Recreational (Passive or Active) Facilities Private Development with a Public Benefit, such as Marine Research with Aquarium Private Development with a Commercial Benefit, such as a restaurant or hotel. A combination of some or all of the above uses may be most appropriate for the excess property created by redevelopment of the Power Plant. Sun Dieao Gas & Electric Properties A staff team has been meeting with San Diego Gas and Electric to discuss future plans for the 48-acre parcel east of Interstate 5 which is zoned for commercial development, and includes property identified by the City as desirable for public use purposes. This staff team has been more specifically discussing a lot line adjustment and other activities which would potentially result in the slight reconfiguration of the 48-acre lot, and allow San Diego Gas and Electric to separate property ownership from Cabrillo Power for the parcels (east of Interstate 5) which are to remain under SDGE ownership on a long term basis. These discussions are separate from the negotiations noted above as related to Cabrillo Power and redevelopment of the Encina Power Plant site. Carlsbad Boulevard Realianment Proiect The Planning Department was the leader on a project to study the potential land uses for excess property created as a result of the potential realignment of Carlsbad Boulevard. Although a decision has not yet been made by the City Council to completely realign Carlsbad Boulevard, a decision was made approximately two (2) years ago to study the excess or surplus land uses that are possible options for consideration if the entire Boulevard is realigned at a later date. The Planning Department was tasked with completing this Land Use Study. The consultant hired to complete the subject Carlsbad Boulevard Land Use Study was instructed to study various options for land uses which include public facilities and recreational . opportunities as well as commercial development opportunities. This study has been completed. Staff is currently reviewing the findings and will~make a recommendation at a later date as to how best to process the results of the study and how best to incorporate the recommendations into the Land Use Strategy for the South Carlsbad Coastal Redevelopment Area. It is important to note that a condition of approval for the Poinsettia Properties project recently resulted in the installation of public improvements which resulted in a partial realignment of Carlsbad Boulevard at and around the intersection at Poinsettia Avenue. The enhancement of the intersection resulted in the creation of some excess property adjacent to the Carlsbad State Campground. The excess property has been a subject of staff negotiations with the State of California Parks Department regarding a trade of property at the campground site for other property that could be created if the City realigned the entire Carlsbad Boulevard. Redevelopment/Revitalization/Clean-Up of Ponto Area Currently, there are no ongoing discussions or projects which have been initiated by the City or Redevelopment Agency within the Ponto Area. However, there has been interest indicated by various property owners in the Ponto Area who would like to pursue development on their properties. An example is a recently processed Preliminary Review Application for a hotelhesort on the property owned by Mr. Dale Schreiber. Staff has indicated to Mr. Schreiber that he has the right to proceed with processing of a land use development application if he so desired. However, he would be required to comply with all existing land use regulations, including zoning and development standards. In addition, the proposed project could not effect other properties in an adverse manner as a result of road alignments, etc. Staff has suggested that Mr. Schreiber delay his project application until a Land Use Strategy is completed for all or a portion of the South Carlsbad Coastal Redevelopment Project Area in order to better coordinate with the long term goals and objectives for the Ponto Area, and to ensure that careful consideration is - given to the best circulation system for the area for development and revitalization purposes. i' Other property owners within the Ponto Area have also discussed potential new development at varying levels with City/Agency Staff. However, no formal land use development applications are currently pending City/Agency approval or other acti6n. It is important to note that for any development within the Ponto Area, a Specific Plan is required. This Specific Plan could be developed for individual properties, or for the whole area (which is proposed within this Work Plan). Pendina Private Developments Currently, within the South Carlsbad Coastal Redevelopment Project Area, there are several projects which have been approved for private development or are pending completion of the application review process. These projects include the Cannon Court project which proposes restaurant, hotel and retail on the property located north of Cannon Road and adjacent to Interstate 5. A Residence Inn Hotel was approved for the site located south of Cannon Road and adjacent to Interstate 5 and has been fully constructed as of this date. Currently, there are two properties located outside, but adjacent to, the boundaries of the South Carlsbad Coastal Redevelopment Area upon which have private developments proposed which will have a significant impact on the area from a land use standpoint. The subject properties are located south of the Ponto Area and west of the railroad tracks (off of Avenida Encinas), and are currently part of the Poinsettia Shores Specific Plan area. Staff has indicated to the potential developers for these properties that they will need to be included within the Land Use Strategy for the redevelopment area, and requested that development applications not be'pursued on these properties until such time as the land use planning effort is complete. Although these properties are not located within the redevelopment area boundaries, they can be included within the land use planning effort due to the significant impact they will have on surrounding land uses, future redevelopment of the area and development of this key coastal area, which is also a southern entryway into the City of Carlsbad. The developers have agreed to work with Staff to prepare the subject Specific Plan for the most southern portion of the South Cailsbad Coastal Redevelopment Area, and to include their properties within that Specific Plan. Coastal Rail Trail For many years, Public Works Staff has been working as the lead agency to develop the Coastal Rail Trail. Within Carlsbad, this Coastal Rail Trail will be an important consideration for incorporation into any new Land Use Strategy for the South Carlsbad Coastal Redevelopment area. 111. Development of a Land Use Strategy for the South Carlsbad Coastal RedeveloDment - Area The following plan outlines the steps to be taken to develop a Land Use Strategy for the newly adopted South Carlsbad Coastal Redevelopment Area. Essentially, the Land Use Strategy development process will occur in three phases in the form of three (3) Specific Plans for the three (3) Planning Areas noted on the attached map and described further within this work plan. Phase 1: Develop and Process a Specific Plan for Planning Area 3 which includes the redevelopment area south of Poinsettia Avenue to the city limits to the south and incorporates two properties outside the redevelopment areas boundaries, but within close proximity to the South Carlsbad Coastal Redevelopment Area. ,'"! "1 %.. Due to an immediate need for a comprehensive Land Use Strategy for properties located within Planning Area 3 of the South Carlsbad Coastal Redevelopment Area and adjacent to it, the Redevelopment Agency will initially pursue development of a Specific Plan for the area south of Poinsettia Avenue, west of the railroad tracks, east of the ocean, and north of the southem City limits (Planning Area 3). Product(s): A Specific Plan to include, but not limited to, a Vision for the area, a land use plan, circulation and roadway alignment, open space and resource preservation, public facilities, and design theme elements. Phase 2: Develop and Process a Specific Plan for Planning Area 1, which includes the Power Plant and related properties as well as other properties to the north and south, and east of 1-5. Following completion of the Specific Plan for Planning Area 3, the Redevelopment Agency will pursue development of a Specific Plan for the northern most portion of the South Carlsbad Coastal Redevelopment Area which includes the Power Plant and related properties as well as property east of 1-5 (Planning Area 1). Product(s): A Specific Plan to include, but not limited to, a Vision for the area, a land use plan, circulation and roadway alignment, open space and resource preservation, public facilities, design theme elements. Phase 3: Develop and Process a Specific Plan for Planning Area 2, which includes properties within the boundaries of the South Carlsbad Coastal Redevelopment Area between Cannon Road and Poinsettia Avenue, west of railroad tracks. Following completion of the Specific Plans for Planning Areas 3 & 1, the Redevelopment Agency will pursue development of a Specific Plan for the middle portion of the South Carlsbad Coastal Redevelopment Area which includes all properties within the redevelopment area boundaries from Cannon Road to Poinsettia Avenue, along the Carlsbad Boulevard (Planning Area 2). Product(s): A Specific Plan to include, but not limited to, a Vision for the area, a land use plan, circulation and roadway alignment, open space and resource preservation, public facilities, design theme elements. Public Engagement Process During development of the above noted Specific Plans, public meetings and workshops will be held with stakeholders, including property owners and residents in the area, and with Agencies with jurisdiction within the noted planning areas. At this time, no formal Advisory Committee is being proposed. Staff believes that open meetings with all appropriate stakeholders will ensure maximum participation by all persons interested in the land use strategy for each of the planning areas. Because each of the three planning areas are so unique, the individual Specific Plans will allow for more focused attention on each area as an effort is made to develop a vision and land use strategy for each area. IV. Timing for Implementation of Work Plan It is anticipated that it will take approximately 6 to 9 months to develop and process each of the three Specific Plans. The process is to be initiated in fiscal year 2001-2002 and to continue in phases as noted above. In future years, the three Specific Plans may be combined into one comprehensive Master Plan and Redevelopment Implementation Program. However, at this time, the three Specific Plans are needed for land use planning purposes and will be utilized by the Redevelopment Agency to allow development in the area to continue in a manner consistent with a desired theme and land use strategy. V. Summary The Redevelopment Agency proposes within this work plan to develop and process three (3) separate Specific Plans for the three (3) planning areas identified on the attached map. Upon approval of this Work Plan by the Housing and Redevelopment Commission, staff will initiate the appropriate activities to begin the process as set forth above. Copies of this Work Plan will be distributed to the various stakeholders for information purposes. ~ ~ ~~~ South Carlsbad Coastal Redevelopment Project 0 Project Area A NORTH 0.5 0 0.5 Miles Qrn3oa.W.M n Q N