DATE: April 11, 2023
SUBJECT:
Title
CHULA VISTA BAYFRONT
A. ORDINANCE GRANTING A SIXTY-SIX (66) YEAR EASEMENT, IN SUBSTANTIAL FORM, TO SAN DIEGO GAS & ELECTRIC FOR THE CONSTRUCTION, OPERATION AND MAINTENANCE OF UNDERGROUND ELECTRICAL FACILITIES IN CONNECTION WITH PHASE 1A OF THE CHULA VISTA BAYFRONT PROJECT IN THE CITY OF CHULA VISTA, CALIFORNIA; AND
B. ORDINANCE GRANTING A FIFTEEN (15) YEAR EASEMENT, IN SUBSTANTIAL FORM, TO SAN DIEGO GAS & ELECTRIC FOR THE CONSTRUCTION, OPERATION AND MAINTENANCE OF UNDERGROUND ELECTRICAL FACILITIES IN CONNECTION WITH PHASE 1A OF THE CHULA VISTA BAYFRONT PROJECT IN THE CITY OF CHULA VISTA, CALIFORNIA
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EXECUTIVE SUMMARY:
The Board of Port Commissioners (“Board”) previously approved a Ground Lease between the San Diego Unified Port District (“District”) and RIDA Chula Vista, LLC (“RIDA”) and subsequently a Project Implementation Agreement among RIDA, the District, the City of Chula Vista, and the Chula Vista Bayfront Facilities Financing Authority at the May and June 2021 Board meetings, respectively. These agreements, among others, are to allow the construction of the following improvements within the Harbor District of the Chula Vista Bayfront (collectively, the “Project”): (i) a single-branded resort hotel with approximately 1,600 rooms (“Resort Hotel”); (ii) a convention center consisting of approximately 275,000 net usable square feet of associated meeting space (“Convention Center”); and (iii) surrounding streets and infrastructure improvements (“Phase IA Improvements”).
A sixty-six (66) year easement (the “Harbor District Easement”) (Attachment A - Form of Proposed Harbor District Easement) and a fifteen (15) year easement (the “Bayside Park Easement”) (Attachment B - Form of Proposed Bayside Park Easement) (collectively, the “Easements”) between the District and San Diego Gas & Electric Company (“SDG&E”) are needed to facilitate the construction and maintenance of gas and electrical facilities in the Chula Vista Bayfront Master Plan Project site as shown on Attachment C and in the specific locations described and depicted on the plat and legal description attached to each of the Easements as Exhibits A and B. The form and substance of the Easements have been agreed to between the District and SDG&E and the term for each will commence on the date the Easements are executed by the District and SDG&E. However, Exhibits A and B attached to the Easements may need to be updated to conform with the District’s standard requirements for the plat maps and legal descriptions for the areas identified in the Easements.
If the Board adopts the ordinances approving the Harbor District Easement and the Bayside Park Easement, it will authorize the Executive Director or his designated representative to (i) administratively approve and execute the Easements substantially in the form attached as Attachments A and B, and (ii) to administratively update the plat and legal description of the area identified in the Easements to conform with the District’s standard requirements. Note that the authorization in the ordinance for the Harbor District Easement shall be conditioned upon SDG&E providing notice to the District that it has scheduled the installation and other work related to the utility facilities to be installed pursuant to the Harbor District Easement.
In light of the foregoing, staff recommends the Board adopt an Ordinance granting the proposed Harbor District Easement and adopt an Ordinance granting the proposed Bayside Park Easement, in substantial form, to SDG&E for underground gas and electric facilities to provide utility service to the Project, subject to the foregoing conditions.
RECOMMENDATION:
Recommendation
Adopt an Ordinance:
A. Granting a 66-year Easement, in substantial form, to SDG&E for underground gas and electric facilities in connection with the implementation of the Chula Vista Bayfront Project; and
B. Granting a 15-year Easement, in substantial form, to SDG&E for underground gas and electric facilities in connection with the implementation of the Chula Vista Bayfront Project.
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FISCAL IMPACT:
There is no fiscal impact to the District from this agenda item.
Compass Strategic Goals:
This agenda item supports the following Strategic Goal.
• A Port with a comprehensive vision for Port land and water uses integrated to regional plans.
DISCUSSION:
The Project is the result of a decade-long joint planning effort by the District, the City, and a broad coalition of stakeholders. As part of the Phase IA Improvements, utility infrastructure will need to be located within the Harbor District to provide utility service to the Project.
The proposed Harbor District Easement will allow SDG&E to install and maintain facilities consisting of underground gas and electrical facilities for the transmission and distribution of electricity, gas, and related public utility purposes to provide long term service within the Harbor District.
The proposed Bayside Park Easement will allow SDG&E to maintain currently installed facilities consisting of underground gas and electrical facilities for the transmission and distribution of electricity, gas, and related public utility purposes to provide service to the existing Chula Vista Bayside Park. The Bayside Park Easement’s shorter term of 15 years is because the location of the relevant infrastructure is expected to be relocated in connection with future development of Harbor Park. The Bayside Park Easement allows for this relocation at the District’s cost upon providing notice to SDG&E.
Related to the Bayside Park Easement, the Board previously approved an easement dated March 8, 1983 and recorded in the Office of the District Clerk as Document No. 15668 as well as an easement dated September 5, 1985 and recorded in the Office of the District Clerk as Document No. 18561, both with SDG&E (collectively, the “Original Easements”). The Original Easements are all for the placement and maintenance of infrastructure currently located within the same area as is anticipated to be covered by the Bayside Park Easement. Both Original Easements will be terminated and superseded as of the commencement date of the Bayside Park Easement, provided that any obligations of SDG&E under the Original Easements accruing or arising on or prior to their termination or are otherwise required to be performed in connection with termination (such as removal), or which by their terms survive termination, shall remain enforceable by the District.
The form and substance of the Easements have been agreed to between the District and SDG&E and the term for each will commence on the date the Easements are executed by the District and SDG&E; however, the Board’s authorization for the Executive Director to execute the Harbor Drive Easement will be conditioned upon SDG&E providing notice to the District that it has scheduled installation of the relevant infrastructure. In addition, Exhibits A and B attached to the Easements may need to be updated to conform with the District’s form requirements for the plat map and legal description of the relevant Easement areas.
If the Board adopts the ordinances approving the Harbor District Easement and the Bayside Park Easement, and conditioned upon SDG&E providing notice to the District that SDG&E has scheduled the related infrastructure installations with respect to the Harbor Drive Easement, it will allow the Executive Director or his designated representative to (i) administratively approve and execute the Easements substantially in the form attached as Attachments A and B between the District and SDG&E, and (ii) to administratively update the plat and legal description of the area identified in the Easements to conform with the District’s standard requirements.
Staff recommends the Board adopt an Ordinance granting the proposed Harbor District Easement and adopt an Ordinance granting the proposed Bayside Park Easement, in substantial form, to SDG&E for underground gas and electric facilities to provide utility service to the Project, subject to the foregoing conditions.
General Counsel’s Comments:
The Office of the General Counsel has reviewed this agenda sheet and the attachments as presented to it and approves the same as to form and legality.
Environmental Review:
The proposed Board actions, including without limitation, consist of an ordinance granting one sixty-six (66) year easement and ordinance granting one fifteen (15) year easement to San Diego Gas & Electric for the construction, operation and maintenance of underground electrical facilities in connection with the implementation of the Chula Vista Bayfront project. The proposed Board actions were previously analyzed in the Final Environmental Impact Report (FEIR) for the Chula Vista Bayfront Master Plan (UPD #83356-EIR-658; SCH #2005081077; Clerk Document No. 56562), certified by the District 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), the Second Addendum to the FEIR, which was adopted by the Board on April 10, 2018 (Resolution No. 2018-0069), and the Third Addendum to the FEIR, which was adopted by the Board on December 8, 2020 (Resolution No. 2020-116). The proposed Board actions are not a separate “project” for CEQA purposes but are 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.) Additionally, pursuant to CEQA Guidelines Sections 15162 and 15163, and based on the review of the entire record, including without limitation, the FEIR and Addendums, the District finds that the proposed Board actions do not require further environmental review as: 1) no substantial changes are proposed to the project and no substantial changes have occurred that require major revisions to the FEIR and Addendums due to the involvement of new significant environmental effects or an increase in severity of previously identified significant effects; 2) no new information of substantial importance has come to light that (a) shows the project will have one or more significant effects not discussed in the FEIR and Addendums, (b) identifies significant impacts would not be more severe than those analyzed in the FEIR and Addendums, or (c) shows that mitigation measures or alternatives are now feasible that were identified as infeasible and those mitigation measures or alternatives would reduce significant impacts, and 3) no changes to mitigation measures or alternatives have been identified or are required. Pursuant to CEQA Guidelines §15162(b), the District finds that no further analysis or environmental documentation is necessary. Accordingly, the proposed Board actions are merely a step-in furtherance of the original project for which environmental review was performed and no supplemental or subsequent CEQA has been triggered, and no further environmental review is required.
The proposed Board actions comply with Sections 21, 35, and 87 of the Port Act which allow for the Board to pass resolutions, to do all acts necessary and convenient for the exercise of its powers, and for all visitor-serving commercial and industrial uses and purposes, and the construction, reconstruction, repair, and 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 actions are consistent with the Public Trust Doctrine.
The proposed Board actions were covered in the Coastal Development Permit (CDP) for the Resort Hotel and Convention Center, Parking, Infrastructure and Phase 1A Improvements (CDP-2019-03; Clerk Document No. 70152) approved by the Board on June 18, 2019 (Resolution No. 2019-080). The proposed Board actions are consistent with the project in the CDP. No additional action under the California Coastal Act is required at this time.
Diversity, Equity, and Inclusion Program:
This agenda sheet has no direct DEI impact to District workforce or contract reporting at this time.
PREPARED BY:
Amy Gerritsen
Program Manager, Real Estate
Attachment(s):
Attachment A: Location Map
Attachment B: Form of Proposed Harbor District Easement
Attachment C: Form of Proposed Bayside Park Easement