DATE: December 5, 2017
SUBJECT:
Title
ORDINANCE AMENDING THE FY 17/18 BUDGET TO INCREASE THE CAPITAL IMPROVEMENT PROGRAM (CIP) APPROPRIATION BY $1.1 MILLION FROM PREVIOUS YEAR'S UNRESTRICTED RESOURCES FOR THE CHULA VISTA BAYFRONT - TRIANGLE PARCEL ACQUISITION PROJECT AND AMENDING THE 2014-2018 CAPITAL IMPROVEMENT PROGRAM (CIP) INCREASING THE PROJECT BUDGET BY $1.1 MILLION
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EXECUTIVE SUMMARY:
On April 14, 2016, the Board of Port Commissioners (Board) adopted a Resolution of Necessity to acquire a parcel in Chula Vista known as the Triangle Parcel from Rohr, Inc., through the District’s eminent domain powers. The Triangle Parcel is an integral part of the Chula Vista Bayfront development. The District subsequently filed an eminent domain action related to the Triangle Parcel. In settlement of the eminent domain action, the District has agreed to pay Rohr, Inc., four million dollars as just compensation for the taking. Currently, the District’s 2014-2018 CIP includes a project titled “Chula Vista Bayfront - Triangle Parcel Acquisition or Marina Parkway Realignment” (“Project”) with a project budget of $2.9 million. In order to finalize the acquisition of the Triangle Parcel, an additional $1.1 Million must be added to the FY 2017/18 CIP budget appropriation (recommended to come from previous year’s unrestricted resources) and the CIP must be amended to increase the Project and FY 17/18 budget by $1.1 million.
RECOMMENDATION:
Recommendation
Adopt an Ordinance Amending the FY 17/18 Budget to increase the Capital Improvement Program (CIP) appropriation by $1.1 Million from previous year's unrestricted resources for The Chula Vista Bayfront - Triangle Parcel Acquisition Project, and amending the 2014-2018 CIP increasing the Project and FY17/18 Budget by $1.1 Million.
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FISCAL IMPACT:
This action will increase the FY17/18 Budget Capital Improvement appropriation by $1.1 million from $35,858,600 to $36,958,600.
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 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:
On April 14, 2016, the Board of Port Commissioners (Board) adopted a Resolution of Necessity to acquire a parcel in Chula Vista known as the Triangle Parcel from Rohr, Inc., through the District’s eminent domain powers. The Triangle Parcel is an integral part of the Chula Vista Bayfront development.
The District subsequently filed an eminent domain action related to the Triangle Parcel. In settlement of the eminent domain action, the District has agreed to pay Rohr, Inc., four million dollars as just compensation for the taking.
Currently, the District’s 2014-2018 CIP includes a project titled “Chula Vista Bayfront - Triangle Parcel Acquisition or Marina Parkway Realignment” (“Project”) with a project budget of $2.9 million. In order to finalize the acquisition of the Triangle Parcel, an additional $1.1 Million must be added to the FY 2017/18 CIP budget appropriation (recommended to come from previous year unrestricted resources) and the CIP must be amended to increase the Project and FY17/18 budget by $1.1 million.
Additionally, on November 28, 2017, in accordance with Port Act, Section 30.5, the State Lands Commission approved the $4 million off-tidelands capital expenditure to acquire the Triangle Parcel.
Following this budget amendment and CIP amendment, the eminent domain action will be finalized and ownership of the Triangle Parcel will be acquired for use as part of the Chula Vista Bayfront development.
General Counsel’s Comments:
The Office of the General Counsel has reviewed and approved the agenda and the proposed Ordinance as to form and legality.
Environmental Review:
The proposed Board action increases the budget for the acquisition of the Triangle Parcel. The potential environmental impacts of the proposed Board action were analyzed in the Chula Vista Bayfront Master Plan (CVBMP) and Port Master Plan Amendment 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 proposed Board action implements the previously approved CVBMP and was fully contemplated in the FEIR as certified by the Board. The proposed Board action is not a separate “project” for California Environmental Quality Act 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.
In addition, the proposed Board action complies with Section 87 of the Port Act, which allows for 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 Board action is consistent with the Public Trust Doctrine.
In addition, 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 Regulations. Therefore, issuance of a Coastal Development Permit or exclusion is not required.
Equal Opportunity Program:
Not applicable.
PREPARED BY:
Simon Kann
Deputy General Counsel,
Office of the General Counsel
Attachment(s):
Attachment A: Proposed Ordinance