DATE: November 17, 2015
SUBJECT:
Title
RESOLUTION ADOPTING BPC POLICY NO. 774 TO ESTABLISH A POND 20 ECONOMIC DEVELOPMENT FUND
Body
EXECUTIVE SUMMARY:
From 2000 to 2015, the District conducted numerous public outreach meetings and professional evaluations to determine the highest and best uses for Pond 20. A Memorandum of Understanding (MOU) between the District, the City of Imperial Beach, and the City of San Diego served as a guiding document. The District has determined that mitigation banking and commercial development are the best uses for Pond 20. At the July 14, 2015 meeting of the Board of Port Commissioners (Board), the Board directed staff to designate approximately 11 acres for commercial development and approximately 80 acres for a wetland mitigation bank. Staff is in the process of reviewing responses to the Pond 20 Mitigation Bank RFP and intends to make presentation to the Board in December. The Pond 20 Economic Development Fund (EDF) will serve as a repository for the District’s net proceeds from development on Pond 20 after reimbursement to the District for all costs, expenses, and a reasonable return on wetland credits purchased or on commercial development projects from Pond 20.
A Board Policy is required to establish the distribution of EDF funds to be equally split between projects in the City of Imperial Beach and the City Council District in the City of San Diego adjacent to Imperial Beach, which comply with the Port Act, and accomplish economic development and public improvement projects.
RECOMMENDATION:
Recommendation
Adopt BPC Policy No. 774 to establish a Pond 20 Economic Development Fund.
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FISCAL IMPACT:
This agenda has no fiscal impact. Future Board approval of projects using the EDF may have fiscal impact to the District and will be addressed at the time of consideration of such projects.
Compass Strategic Goals:
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 healthy and sustainable bay and its environment.
• A Port with a comprehensive vision for Port land and water uses integrated to regional plans.
• A financially sustainable Port that drives job creation and regional economic vitality.
DISCUSSION:
For 15 years, the District conducted public outreach meetings and professional evaluation to determine the highest and best use of Pond 20, a 95.13-acre undeveloped site at the southern end of San Diego Bay. The property is adjacent to Imperial Beach, within the limits of the City of San Diego and within the District’s jurisdiction.
The District has designated uses for Pond 20’s three distinct parcels. Parcel A is approximately 3.10 acres on the western edge of the site, and Parcel C is approximately 7.90 acres on the eastern edge. Both Parcels A and C have been designated for commercial development. Parcel B is an approximately 80-acre central basin which has been designated for a wetland mitigation bank as identified on the attached map (Attachment A).
A wetland mitigation bank is a site where wetlands are restored, established, enhanced, or preserved to offset impacts to a separate wetland environment undergoing development by government or private industry. The developer purchases credits in the wetland mitigation bank as a replacement for the acres of wetland lost due to the development.
With the Board’s approval, given the very unique history of Pond 20, a Pond 20 Economic Development Fund (EDF) will be established in which to place the District’s net proceeds from commercial development and wetland mitigation banking as described below. This is not intended to create a precedent for other District properties. A copy of the draft policy is attached (Attachment B). The District will place in the EDF its net revenues from mitigation banking and commercial development on Pond 20 after all expenses for permitting, construction, maintenance, staff time, acquisition costs, and other expenses associated with Pond 20, as well as a reasonable rate of return to the District on the sale of wetland credits or from commercial development. It should be noted that some mitigation credits may be used directly by the District, as opposed to being sold, and would not generate revenue under the Policy. Funds will be deposited in the EDF and evenly divided into sub-funds for projects in the City of Imperial Beach and the San Diego City Council District adjacent to Imperia Beach which are consistent with the Port Act and also accomplish economic development and public improvement.
Eligible projects for the EDF must comply with the Port Act, and also generate jobs or economic benefit, or create a public improvement within the City of Imperial Beach or the adjacent portions of the City of San Diego.
Projects for EDF funding may be submitted to the District by the City Council of Imperial Beach, the City Councilmember from the City of San Diego’s adjacent City Council District, from members of the Board, and public entities.
District staff will work with applicants to review and clarify applications prior to consideration by the Board. Staff recommends the Board establish the Pond 20 EDF.
General Counsel’s Comments:
The Office of the General Counsel has reviewed and approved the proposed Board Policy as to form and legality.
Environmental Review:
The proposed Board action to adopt a Board Policy to establish a Pond 20 EDF does not constitute a “project” or an “approval” of a “project” under the definitions set forth in California Environmental Quality Act (CEQA) Guidelines Sections 15352 and 15378 because the Board’s authorization does not constitute a binding commitment to approve, adopt, or fund any of the projects submitted as a result of the Pond 20 Economic Development Fund. CEQA requires that the District adequately assess the environmental impacts of its projects. If a project is formulated and CEQA review is conducted, the Board reserves its discretion to adopt any and all feasible mitigation measures, alternatives to the project, including a no project alternative, a statement of overriding consideration, if applicable, and approve or disapprove the project and any permits or entitlements necessary for the same. Those decisions may be exercised in the sole and absolute discretion of the Board. Based on the totality of the circumstances and the entire record, the Board’s direction does not commit the District to a definite course of action prior to CEQA review being conducted. No further action under CEQA is required at this time.
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 Coastal Development Permit or exclusion is not required for the proposed Board action. If projects submitted as a result of the Pond 20 Economic Development Fund advance forward, the appropriate processing under the District’s CDP Regulations will be conducted before the District approval of the developments.
Equal Opportunity Program:
Not applicable.
PREPARED BY:
Ronald W. Powell
Manager, Government and Civic Relations
Attachment(s):
Attachment A: Proposed Pond 20 Site Plan
Attachment B: Draft Pond 20 Economic Development Fund Board Policy