HomeMy WebLinkAbout2002-02-19; Housing & Redevelopment Commission; 344; South Carlsbad Coastal Redevelopment Project AreaHOUSING AND REDEVELOPMENT COMMISSION - AGENDA BILL
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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
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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.
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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.
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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.
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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
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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.
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South Carlsbad Coastal Redevelopment Project
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