DATE: October 13, 2016
SUBJECT:
Title
RESOLUTION DIRECTING STAFF TO ISSUE A REQUEST FOR PROPOSALS (RFP) FOR THE DEVELOPMENT OF A 19-ACRE RECREATIONAL VEHICLE (RV) PARK LOCATED AT E STREET AND BAY BOULEVARD IN THE CITY OF CHULA VISTA
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EXECUTIVE SUMMARY:
Chula Vista Marina/RV Park, Ltd. has a lease1 with the District at 460 Sandpiper Way, within the City of Chula Vista (City) that expires on November 30, 2021 to operate a 237-stall RV Park (Existing RV Park). In May 2010, the Board certified a Final Environmental Impact Report (FEIR) and approved a Port Master Plan amendment (PMPA) for the Chula Vista Bayfront Master Plan (CVBMP), which was the result of a decade-long planning effort. This entitlement process envisioned the replacement of the Existing RV Park. The Existing RV Park is located within a portion of the Chula Vista Bayfront that is the home to a future resort hotel and convention center (RHCC). The Chula Vista Bayfront Development Policies, which are incorporated by reference into the Port Master Plan, require all existing 237 recreational vehicle (RV) stalls be replaced prior to the Existing RV Park closing.
The CVBMP identified the19-acre site located at E Street and Bay Boulevard in the Sweetwater District of the Chula Vista Bayfront (Site) (Attachment A) as a possible replacement site for the 237 RV stalls. After lengthy discussions and negotiations with the Existing RV Park tenant, they notified the District on April 11, 2016 (Attachment B) that they have elected not to relocate to the new Site. Since the replacement of the 237 RV stalls is a requirement of the Chula Vista Bayfront Development Policies, staff recommends the Board direct staff to issue a Request for Proposals (RFP) for the development of a minimum 237-stall RV park at the Site (Project). Staff is seeking to attract high-quality RV park developers, owners, and operators through this RFP process to ensure a successful project on the Chula Vista Bayfront.
If the Board authorizes staff to issue the RFP, staff anticipates issuing the RFP in late October. In coordination with the District’s Marketing and Communications Department, a comprehensive national marketing strategy has been developed featuring print and online advertising based on Attachment C. To encourage a robust response from the RV community, staff will be attending the National Association of RV Parks & Campgrounds annual “Outdoor Hospitality Conference & Expo” November 8-11, 2016 to promote the RFP and meet one on one with potential developers. Responses would be due in late 2016, with interviews in early 2017, and staff anticipates returning to the Board in Spring of 2017 with a recommendation for a selection. Staff’s recommendation will be based upon specific criteria outlined in the RFP including: approach to project, proposer’s relevant experience, capability to perform, and revenue and expense projections. Once the Board selects a final proposer, staff will proceed with an analysis whether additional environmental review and Coastal Act approvals, such as a PMPA are required, as well as lease negotiations. It is anticipated that construction could commence in the summer of 2018 and be completed by late summer 2019, paving the way for the development of the RHCC.
RECOMMENDATION:
Recommendation
Adopt a Resolution Directing Staff to issue a Request for Proposals for the Development of a 19-Acre Recreational Vehicle (RV) Park located at E Street and Bay Boulevard in the City of Chula Vista.
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FISCAL IMPACT:
Although the Board’s action today does not have a direct fiscal impact, if the District issues a RFP, it is anticipated that any resulting project would increase rent paid to the District and costs of any additional environmental review would be borne by the selected final proposer.
Compass Strategic Goals:
As part of the District’s efforts to support a vibrant and active waterfront, staff is recommending the issuance of a RFP for the development of a 19-acre RV park within the Chula Vista Bayfront. Due to the upcoming expiration of a long-term lease, the future development of the RHCC and this Project being a catalyst for future development within the Chula Vista Bayfront, it is important to have a competitive process to ensure that the Site’s potential is maximized.
This agenda item supports the following Strategic Goal(s).
• A Port that the public understands and trusts.
• A vibrant waterfront destination where residents and visitors converge.
• A Port with a comprehensive vision for Port land and water uses integrated to regional plans.
DISCUSSION:
Background
The CVBMP is the result of a decade-long joint planning effort by the District, the City, Pacifica Companies, and a broad coalition of stakeholders. The CVBMP was collaboratively planned through an extensive public participation program that included over 100 community meetings. In May 2010, the Board certified the FEIR and approved a PMPA for the CVBMP (Resolutions 2010-78 and 2010-79). Subsequently, the approved PMPA for the CVBMP was unanimously certified by the California Coastal Commission (CCC) in August 2012. In August 2013, the Board adopted an Addendum to the FEIR for revisions to the H Street Extension and issued an appealable Coastal Development Permit for the same.
Chula Vista Marina/RV Park, Ltd. has a lease with the District to operate the Existing RV Park, which commenced on December 1, 1981 and expires on November 30, 2021. The Existing RV Park has 237 stalls and is located in the center of the proposed RHCC development; therefore, a minimum of 237 stalls must be replaced and the Existing RV Park will need to be closed prior to construction of the RHCC commencing. It was determined that the Existing RV Park could be replaced at the Site, which is located in the Sweetwater District of the Chula Vista Bayfront at E Street and Bay Boulevard. The Site presents an opportunity to develop an RV park that is close to Interstate-5 and is adjacent to existing and planned ecological buffers, a nature center and open space.
The Existing RV Park has successfully operated the 237-stall RV Park for over 30 years, with an average occupancy rate of approximately 70% year round. Amenities at the Existing RV Park include: a tiki bar and fire pit, a pool, fitness center, market and access to the District’s public amenities. After lengthy discussions and negotiations with the Existing RV Park, they notified the District on April 11, 2016 (Attachment B) that they have elected not to proceed with relocating the Existing RV Park to the new Site.
Request for Proposals - Destination RV Park
The CVBMP requires, at minimum, that the existing 237 RV stalls be replaced prior to the Existing RV Park closing; therefore, staff is recommending the issuance of an RFP. Replacement of the existing 237 RV stalls prior to the closure of the Existing RV Park will not only satisfy a CVBMP requirement, but will also solve a critical path item needed to commence construction of the RHCC project as the Project is required to be open and operational prior to the closure of the Existing RV Park.
Since the replacement of the 237 RV stalls is a CVBMP requirement and necessary for the RHCC development, staff recommends that the Board direct staff to issue a RFP for the development of the Site. The RFP would provide the opportunity for proposers to submit development concepts that will result in a quality RV Park that will be a sought after destination for RV travelers across the country.
RFP Scope
The RFP will solicit proposals from well-qualified development teams for the development of a 19-acre RV park, with a minimum of 237 stalls, at the Site. It is contemplated that the Project will be a high quality RV park and include, but is not limited to, amenities such as:
• Swimming pool(s) and hot tub(s);
• Markets;
• Barbeque and/or fire pits;
• Active common areas;
• Beautiful, native landscaping; and
• A fitness center.
The Site is optimal for visitors to the Chula Vista Bayfront as it sits within the northeastern portion, is in close proximity to The Living Coast Discovery Center, Sweetwater National Wildlife Refuge, future Sweetwater signature park, and Bayshore Bikeway, and also provides water views of San Diego Bay and the Pacific Ocean, as well as the Downtown San Diego skyline. Opportunities to enhance the public infrastructure, public access and natural ecological buffers will also be included as part of this development opportunity.
The District will accept proposals both from fee developers who would build the project for the District to own and operate through a third-party operator and developer/owners who would own and operate under a more traditional ground lease model. It is contemplated the District will receive a wide range of proposals. This unique opportunity will serve as the catalyst for development within the Chula Vista Bayfront and is available for an innovative developer to create a destination RV park experience. The RFP will specify that development concepts should present the vision for the Site and include proposed amenities and integration to the overall Chula Vista Bayfront development, which includes enhancements to public access, infrastructure and utility service. Staff believes that these elements will add value to the overall Project design.
Evaluation Criteria
Staff will evaluate proposals based on the specific list of criteria to be outlined in the RFP, which are summarized below.
Approach to Project
Details listing the Approach to Project shall include: site plans and renderings, narrative on site design, intended amenities, required public visual and physical access, acceptance of required and optional infrastructure and a proposed operating/management structure. A comprehensive construction schedule will also be required as part of the submittal documents.
The Chula Vista Bayfront is governed by a list of documents related to the development and preservation of the Chula Vista Bayfront. Proposers will be instructed to abide by the terms, guidelines and rules set forth in the governing documents related to the Chula Vista Bayfront as a whole and those specific to the Site when contemplating their approach. The governing documents include, but are not limited to the following:
• Port Act;
• California Coastal Act;
• Port Master Plan, with reference to the CVBMP, as presented in Planning
District 7, on file in the Office of the District Clerk as Document No. 56562;
• FEIR for the CVBMP, on file in the Office of the District Clerk as Document
No. 56552;
• Mitigation Monitoring and Reporting Program for the Chula Vista Bayfront
Master Plan, on file in the Office of the District Clerk as Document No.
56562;
• Chula Vista Bayfront Master Plan Natural Resources Management Plan, on
file in the Office of the District Clerk as Document No. 65065;
• Chula Vista Bayfront Development Policies, on file in the Office of the District
Clerk as Document No. 59407;
• Chula Vista Bayfront Master Plan Public Access Program, on file in the Office
of the District Clerk as Document No. 59408; and,
• Chula Vista Bayfront Master Plan Settlement Agreement, on file in the Office
of the District Clerk as Document No. 56523.
Proposer’s Relevant Experience
A summary of the respondent’s development experience in the last ten years will be requested. The ideal respondent will have experience developing an RV park from the ground up in the last ten years, but respondents who have redeveloped, managed and operated similar projects will be considered if they are able to demonstrate the necessary resources to construct the Project, including a clear and concise construction plan.
Capability to Perform
The RFP will require respondents to provide a preliminary financing plan. The plan shall identify if the respondent intends to self-finance, obtain private equity, pursue institutional debt, etc. If the respondent intends to self-finance the development costs, they will need to be able to demonstrate the individual(s) or entity has the capital available to do so. If the respondent intends to pursue private equity or institutional debt, they will be asked to provide letters of interest demonstrating their capability to perform.
Revenue and Expense Projections
Respondents will be required to provide a financial model that clearly outlines: pre-development costs, construction costs and anticipated revenue and expenses for the first ten years of operation. Proposals must clearly indicate whether the development assumes any cost sharing with the District and whether a public subsidy is being requested.
National Marketing Campaign
Similar to recent RFP issuances managed by Real Estate Development’s Business Development Team, staff’s goal is to reach out to as many qualified prospective RV park developers, owners, and operators as possible. In partnership with the Marketing and Communications team, staff has developed a robust national marketing plan for the RFP. Efforts include advertising the RFP in a variety of RV industry focused forums including: printed publications, e-newsletters, pay-per-click advertising and social media using materials similar to Attachment C. Staff will also be attending the National Association of RV Parks & Campgrounds annual Outdoor Hospitality Conference & Expo, November 8-11, 2016, which is dubbed as “the premier event of the RV park and campground industry.”
Next Steps
If the Board directs staff to issue the RFP, marketing efforts would commence immediately. The RFP is expected to be issued in late October and following the Outdoor Hospitality Conference & Expo, staff will host an information exchange and responses would be due in late 2016. Due to the holiday season, interviews would be held in early 2017 and staff anticipates returning to the Board in Spring of 2017 with a recommendation for a selection, based upon specific criteria outlined in the RFP including: approach to project, proposer’s relevant experience, capability to perform, and revenue and expense projections. Once a final proposer is selected by the Board, staff will proceed with an analysis whether additional environmental review and Coastal Act approvals, such as a PMPA, are required (at a minimum, a Coastal Development Permit will need to be approved) as well as lease negotiations. It is anticipated that construction could commence in the summer of 2018 and be completed by late summer 2019, paving the way for the development of the RHCC.
General Counsel’s Comments:
The General Counsel’s Office has reviewed the agenda sheet as presented to it and approves it as to form and legality.
Environmental Review:
The proposed Board action would authorize staff to issue an RFP for the development and operation of a 19-acre recreational vehicle (RV) park located at E Street and Bay Boulevard in Chula Vista, California to implement the CVBMP. This direction does not constitute an “approval” or a “project” under the definitions set forth CEQA Guidelines Sections 15352 and 15378 because no direct or indirect changes to the physical environment would occur and an RFP does not constitute a binding commitment to proceed with the project. The Board reserves its discretion to adopt any and all feasible mitigation measures, alternatives to the projects, including a no project alternative, a statement of overriding consideration, if applicable, and approve or disapprove the projects and any permits or entitlements necessary for the same Nonetheless, the potential environmental impacts of the CVBMP, including the development and operation of the RV park, were analyzed pursuant to the California Environmental Quality Act (CEQA) in the Chula Vista Bayfront Master Plan and Port Master Plan Amendment (PMPA) Final Environmental Impact Report (FEIR) (UPD #83356-EIR-658, SCH #2005081077), which was certified by the Board on May 18, 2010 (Resolution No. 2010-78), the Addendum to the FEIR, which was adopted by the Board on August 13, 2013 (Resolution No. 2013-138), and the CCC’s August 2012 CEQA findings. The proposed Board action is not a separate “project” for CEQA purposes but is a subsequent discretionary approval related to a previously approved project. (CEQA Guidelines § 15378(c); Van de Kamps Coalition v. Board of Trustees of Los Angeles Comm. College Dist. (2012) 206 Cal.App.4th 1036.). Accordingly, the proposed Board action is merely a step in furtherance of the original project for which environmental review was performed, and no further environmental review is required at this time. However, the development of the RV park will be subject to review for consistency with the CVBMP and FEIR, and may be subject to additional environmental review to determine the appropriate environmental document pursuant to CEQA.
On August 9, 2012, the CCC, in its Staff Report, made the following California Environmental Quality Act (CEQA) findings for the proposed project (i.e., CVBMP and PMPA): The proposed PMPA was the subject of an EIR under CEQA; the EIR was subject to public review and hearing and was certified by the Board of Port Commissioners and the Chula Vista City Council; the District is the lead agency and the City of Chula Vista is the responsible agency for purposes of CEQA; and, both the City and the District jointly certified a FEIR for the projects in their jurisdictions. The CCC further found that, in the FEIR, the District identified that even after adopting all feasible mitigation measures, there would be unavoidable significant environmental impacts. Moreover, the CCC found that the District determined that specific economic, social, and other benefits of the proposed project outweigh the project’s unavoidable adverse environmental effects; therefore, such impacts are considered acceptable. The CCC reviewed and evaluated the proposed PMPA and found that the impacts had been mitigated, and that the PMPA did not have the potential to result in significant individual or cumulative impacts to sensitive resources, recreation, or the visual quality of the environment of the coastal zone. The CCC further found that there were no feasible alternatives or feasible mitigation measures available which would substantially lessen any significant adverse effect which the PMPA may have on the environment. The CCC agreed that the benefits of the project include improvements to public access, recreation, visitor serving amenities, and that these outweigh any remaining impacts. The CCC therefore found the PMPA to be consistent with CEQA.
In addition, the proposed Board action complies with Section 87 of the Port Act, which allows for all visitor-serving commercial and industrial uses and purposes, and the construction, reconstruction, repair, maintenance of commercial and industrial buildings, plants, and facilities. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board action is consistent with the Public Trust Doctrine.
The proposed Board action does not allow for “development,” as defined in Section 30106 of the California Coastal Act, or “new development,” pursuant to Section 1.a. of the District’s Coastal Development Permit (CDP) Regulations. Therefore, issuance of a CDP or exclusion is not required at this time. However, the District’s projects require processing under the District’s CDP Regulations. If a project is formulated as a result of the RV park development, the Board will consider approval of the project after the appropriate documentation under District’s CDP Regulations has been completed and authorized by the Board, if necessary. The Board’s direction in no way limits the exercise of the District’s discretion under the District’s CDP Regulations.
Equal Opportunity Program:
There was no Small Business Enterprise (SBE) goal established for this phase of the development of this location. Respondents will be requested to submit an SBE plan.
PREPARED BY:
Stephanie Shook
Asset Manager, Redevelopment
Real Estate Development
Penny Maus
Department Manager, Business Development
Real Estate Development
Attachment(s):
Attachment(s):
Attachment A: Location Map
Attachment B: Letter dated April 11, 2016 from Chula Vista Marina/RV Park, Ltd.
Attachment C: Marketing Handout
1 Lease dated November 3, 1981, on file in the Office of the District Clerk as Document No. 14243, as amended.