Chula Vista, CA

Chula Vista city leaders are considering purchasing a motel to house unsheltered residents. The city council is taking up the issue tomorrow (Tuesday). KPBS Reporter Matt Hoffman has more.

The Chula Vista City Council will consider purchasing a motel to house unsheltered residents Tuesday. If approved, the Palomar Motel on Walnut Avenue would become a permanent supportive housing project.

Chula Vista city officials said there are 31 units there. The city would use federal and state dollars to purchase and renovate the property. City staff estimates the cost would be around $14 million. Federal money would come from American Recovery Program Act (ARPA) funds, while state dollars could come from California's Homekey program — designed to spur more housing. Chula Vista officials would need to apply for state funding by July 28, but mayor John McCann said the ARPA money is already secured.

"We are looking to leverage 'Homekey' funds from the state and ARPA funds from the federal government — which wouldn’t touch our general fund," McCann said. "In addition this (motel) is in an industrial area, so it wouldn't interfere with any of the local neighborhoods, and it gives us an opportunity to get the homeless off the street. Our focus is to be able to do this in a cost-effective, innovative way."

A staff report prepared for the Chula Vista City Council said if Homekey funds cannot be secured, ARPA money could be used to pay for all the costs to rehab and purchase the motel. The report also said the owner of the Palomar Motel approached the city about purchasing the property. The report said permanent supportive housing is needed to continue addressing homelessness.

"While the opening of the city’s emergency bridge shelter is an important step in moving unsheltered persons toward self-sufficiency, it does not provide a long-term solution for those that are ready for permanent housing and in need of a greater level of ongoing services and support,” the report said.

The residents would be connected with services including health care, treatment and employment assistance. McCann said step one is buying the facility and then holding a request for proposals for a site operator.

Pedro Ibáñez, who lives near the motel and does maintenance work there, said there are times when the motel does not look very busy.

"If we can help — why not," Ibanez said about the potential to turn the property into supportive housing. "That way it’s going to be good for the community."

The motel’s conversion would be in two parts. The first phase involves renovating rooms to have full bathrooms and kitchenettes. Phase two would repurpose the land currently being used by a towing company into a safe parking lot to give people living in their vehicles access to services and restrooms.

Newsom signs legislation that exempts city from having to offer land to developers for affordable housing

Thanks to legislation signed this week by Gov. Gavin Newsom, the city of Chula Vista will be able to use its 383-acre University and Innovation District for that purpose rather than selling the property to developers for housing.

Assembly Bill 129 exempts the city from the state’s Surplus Land Act, which requires local governments to offer excess land for sale or lease to affordable housing developers first before allowing other uses. The legislation was brokered by two Democratic lawmakers from San Diego, Assemblymember David Alvarez and Sen. Steve Padilla.

Leaders of San Diego County’s second-largest city said Wednesday the move puts the city closer to realizing its 30-year-old dream of building a hotspot for education and business.

“This project represents a monumental step forward towards addressing a wide array of inequities that South Bay residents face daily,” said Padilla, a former Chula Vista mayor and council member. “Universities offer incredible economic opportunities for the surrounding communities in addition to the increased capacity and access they provide to higher education. This is an investment in the future of this region.”

Chula Vista sought an exemption for the site, located near State Route 125 and the Otay Ranch Town Center, because it envisions having universities serving at least 20,000 students and research and development companies that would collectively employ about 8,000 people. The city maintained that it acquired the land through agreements from housing builders that limited the type of developments that could be built on-site.

A state agency last year told the city that the land did not qualify for exemptions. It said the restrictions did not explicitly prohibit housing and that because Chula Vista was party to the agreements, the city had imposed those restrictions on itself.

Chula Vista found itself in a tough position.

So the city enlisted the help of Alvarez, whose 80^th District includes Chula Vista, to be excluded from the Surplus Land Act.

Under the bill, Chula Vista will have to restrict at least 25 percent of the housing planned on-site to lower-income households. The condition was added by the Assembly Committee on Housing and Community Development.

Steve Russell, president and CEO of the San Diego Housing Federation, had previously raised concerns that without an affordable housing component, the university and innovation district could actually hinder access to higher education for many students. The Federation had pushed to require the district to include some units dedicated to lower-income households.

“Chula Vista won’t just have an innovation district, but one that includes the people who work there, who can afford to live there,” he said. “The high-end engineers are going to be fine. They’re going to be able to afford housing, but there are folks who maintain those buildings, who work the desks, who are students. In the case of Chula Vista, many of whom do not have the resources and are being priced out of housing.”

Alvarez and Padilla also argued that Chula Vista is building significant housing, including affordable housing.

Last year, the city built 979 units or 10 percent of everything built in the county. From 2013 to 2020, Chula Vista reported a total of 1,008 new affordable units, said Stacey Kurz, director of the city’s Dept. of Housing and Homeless Services.

Chula Vista’s plea for an exemption left lawmakers pondering if they should revisit provisions of the Surplus Land Act, especially because it has seen “a parade of bills” seeking similar exemptions.

With state approval, city officials said they can now focus on resuming negotiations with HomeFed Corp., the master developer Chula Vista wants to implement its university and innovation district. The corporation also owns property adjacent to the university land.

“After decades of planning and work to secure 383 acres, we are now able to continue negotiations that will advance the University-Innovation District,” Mayor John McCann said in a statement.

In December, the city and HomeFed entered into a negotiating agreement. Chula Vista wants HomeFed to prepare the land so that the city has it in a developable condition. It wants the overall work to be completed in four to six phases of between 50 to 100 acres each.

“As a neighbor, we have hoped for years to support their efforts in building out their property, but held off on negotiations as they pursued efforts to resolve surplus land act requirements,” Hale Richardson, vice president of HomeFed, said in a statement. “Now that that’s addressed, we look forward to getting started.”

Negotiations could continue through October, according to the terms of the agreement.

Meanwhile, the city and Southwestern Community College, the only public institution of higher education in Chula Vista, are working to identify the academic programming needed to attract a university locally.

“What we’re looking at is conducting an academic programs study,” said Zaneta Encarnacion, chief of staff to the college’s superintendent. “So, looking at not just university recruitment through a land-use lens, but really looking at, what are the jobs that our region is going to need? Then looking at what degrees are needed by our residents.”

The institutions that offer those programs, but need more space to accept more students would be targeted, she added.

Local leaders Wednesday praised a decision by Gov. Gavin Newsom to exempt 383 acres in Chula Vista from the Surplus Lands Act, advancing longstanding plans to bring a four-year university to the South Bay city.

"This project represents a monumental step forward towards addressing a wide array of inequities that South Bay residents face daily," said state Sen. Steve Padilla, D-Chula Vista. "Universities offer incredible economic opportunities for the surrounding communities in addition to the increased capacity and access they provide to higher education. This is an investment in the future of this region."

Earlier this year, the state said the acres set aside for university district development in the eastern part of the city, near the Lower Otay Reservoir, must be made available for housing developers.

Assemblyman David Alvarez, D-Chula Vista, quickly began work in Sacramento to keep the area open for a proposed university. Newsom's decision this week will do just that.

"We now have the opportunity to create a regional university for the South Bay and open doors to future generations looking for new educational experiences," Alvarez said. "Individuals with a bachelor's degree have greater earning power and can earn about $32,000 more annually than those with a high school diploma."

Chula Vista is the only city in California with a population greater than 200,000 residents that does not have a non-profit or state university within its city limits. The population as of the 2020 census was 275,487 — making it the 15th largest city in the state. City leaders have lobbied for a four-year university since at least 1993, when the Otay Ranch General Development Plan was adopted.

"We are grateful for Assemblymember Alvarez and Senator Padilla for helping protect the city's vision for a 21st-century university in the South Bay," Chula Vista Mayor John McCann said. "After decades of planning and work to secure 383 acres, we are now able to continue negotiations that will advance the University-Innovation District."

The passage of the bill will allow the city to continue negotiations with a master developer.

According to city documents, the campus would contain a four-year university, a technology park and a global energy research center. The campus will "offer an opportunity to focus research and training on renewable energy sources and environmentally-friendly manufacturing and construction processes."

Chula Vista’s dream of getting a university seemed closer last week after Gov. Gavin Newsom signed legislation that exempts the city from having to offer its land to developers for affordable housing.

City officials hope the Otay Ranch site will be a 383-acre University and Innovation District that will serve at least 20,000 students and have research and development companies that would collectively employ about 8,000 people.

The plan, for now, is to attract an existing university to move to the location. The site is near the SR 125 Toll Road, considered far from current job and education hubs. It lacks access to the San Diego Trolley but MTS does run bus service in that area.

An attempt earlier this year for Chula Vista to build a facility on the site for San Diego State University is somewhat in limbo after the university accused the city of misrepresenting the project and the building design.

Q: Will San Diego County universities want to move some operations to the Otay Ranch site?

Lynn Reaser, economist

NO: Although great in concept, the plan is probably unrealistic. The city has been working for 30 years to attract a university to the site. Last year the city did entice San Diego State University to establish a Cinematic Arts and Academic Center and Library. However, the project has run into a snag and is unlikely to attract the 20,000-student-body campus envisioned by the city.

Phil Blair, Manpower

YES: They certainly need that flexibility. Student majors change, technology changes and interaction with the private sector changes. The university needs to be able to use any space it occupies to its highest potential depending on the focus and demand.

Gary London, London Moeder Advisors

YES: There are at least three good reasons why this is a good idea.: 1) Chula Vista is far more housing accessible than other communities; 2) its proximity to Mexico and the opportunity for cross-border curriculum; and 3) Chula Vista wants it, as demonstrated by years of pressure and land set-asides. There are big economic upsides for communities to house major university curriculum, including spin-off enterprises. I can’t see a downside.

Alan Gin, University of San Diego

YES: Southern San Diego County is one of the fastest growing areas in the region. It is underserved in terms of higher education, which creates an opportunity for one of the existing local universities to locate a satellite facility there. The proximity to the border may also allow for more students to attend from Mexico. Both of these factors are important as universities are facing a demographic cliff in the near future. Finally, the diversity of the area helps in terms of DEI (Diversity, Equity, and Inclusion) issues.

Bob Rauch, R.A. Rauch & Associates

YES: The model of setting up a satellite campus is a good one and it has been expertly executed by Arizona State University at multiple locations, inside and outside of the state of Arizona. The site being considered in Otay Mesa is good, but is far from current job and education hubs and lacks adequate transportation access. San Diego State University should look at all available options as the main campus will limit growth.

James Hamilton, UC San Diego

Not participating this week.

Austin Neudecker, Weave Growth

YES: I hope a reputable university will avail itself of the substantial opportunity to build a campus in southern San Diego. I grew up in this area and consider myself an advocate for its continued growth, especially in higher education. The rapid population growth, availability of land, strong high schools, proximity to the border, and availability of labor make the location nearly ideal. Admittedly, transportation options are lacking, but what large vacant plots differ?

Chris Van Gorder, Scripps Health

YES: But it all comes down to obtaining the necessary funding, which will drive timing. UC and CSU systems in the area have major building projects already under way with significant growth ambitions amid financial pressures from state budget shortfalls. If an entity can obtain necessary funding and taxpayer funding, as both are tax- and fee-supported public education government organizations, I’m sure having operations in Otay Ranch would be attractive.

Norm Miller, University of San Diego

NO: Naming some place an “innovation district” does not make it so, nor will it convince USD, UCSD or San Diego State to move there versus downtown or expand near existing campuses. Utilizing a Mexican-led accredited university at the Otay Ranch site like Universidad Autonoma de Baja California, with a campus already in Tijuana, and a cross-border partnership of some sort could accelerate the establishment and growth of a large-scale campus, if that is not too radical an idea.

Jamie Moraga, Franklin Revere

YES: The South Bay could provide opportunities for local universities beyond their current locations for satellite campuses. San Diego State University is planning to build a new TV and film studio in the South Bay, and the University of California is also looking at expansion opportunities there as well. San Diego County universities will make a move if there is demand, it makes financial sense, and if it provides a return on investment.

David Ely, San Diego State University

YES: Several local institutions have expressed interest in establishing a presence in Chula Vista, a large population center with unmet demand for college-level programs. The question is whether the target of more than 20,000 is achievable. For state institutions, funding for enrollment growth would need to be approved. Also, the California Department of Finance projects that the number of high-school graduates will decline over the next decade across the state and in San Diego County.

Ray Major, SANDAG

NO: But they should. South County is the perfect location for a university to start a binational program. Chula Vista is the second largest city in the region and is home to one of the largest populations of young people. The new border crossing at Otay Mesa East will allow the Cali-Baja region to significantly increase cross-border trade and new job opportunities. A university focused on the global supply chain and high-tech manufacturing would be hugely successful.

Caroline Freund, UC San Diego School of Global Policy and Strategy

Not participating this week.

Haney Hong, San Diego County Taxpayers Assoc.

NO: But I hope I’m wrong. We shouldn’t think about a new university just in terms of what teaching it might do; we want it to stimulate economic growth through innovative research that can lead to commercial ventures. To be worth the financial risk, whether private or public, a university will come if Chula Vista can make this site also appealing to entrepreneurs willing to take risk and investors with money.

Kelly Cunningham, San Diego Institute for Economic Research

NO: San Diego population has declined, like the rest of California, over the past four years, according to latest population estimates (Jan. 1, 2023) by the California Department of Finance. The number of children has declined even more as shrinking birth rates and households with children move away. Only foreign migration was positive although significantly slowing the past few years as well. The new campus site could draw from other universities, but enrollment overall would decrease.

Have an idea for an EconoMeter question? Email me at phillip.molnar@sduniontribune.com. Follow me on Twitter: @PhillipMolnar

SAN DIEGO – The City of Chula Vista is one step closer to realizing its dream of having a world-class university within its city limits. This week, Governor Gavin Newsom signed into law an exemption from the Surplus Lands Act for the City of Chula Vista's University-Innovation District (UID) development project on approximately 383 acres. Working in partnership with legislative leaders, Senator Steve Padilla (D-San Diego) and Assemblymember David Alvarez (D-San Diego) brokered negotiations resulting in this exemption making it possible for the City to advance long standing plans of developing a campus in the mentioned district.

“This project represents a monumental step forward towards addressing a wide array of inequities that South Bay residents face daily,” said Senator Steve Padilla. “Universities offer incredible economic opportunities for the surrounding communities in addition to the increased capacity and access they provide to higher education. This is an investment in the future of this region.”

"We now have the opportunity to create a regional university for the South Bay and open doors to future generations looking for new educational experiences," said Assemblymember David Alvarez. "Individuals with a bachelor's degree have greater earning power and can earn about $32,000 more annually than those with a high school diploma."

“We are grateful for Assemblymember Alvarez and Senator Padilla for helping protect the City’s vision for a 21st century university in the South Bay,” said Chula Vista Mayor John McCann. “After decades of planning and work to secure 383 acres, we are now able to continue negotiations that will advance the University-Innovation District.”

Chula Vista is the only city in California with a population greater than 200,000 residents that does not have a non-profit or state university within its city limits. A South Bay university presence would provide more equitable access to higher education.

The passage of this bill allows the City of Chula Vista to continue negotiations with a master developer to implement the University Innovation District.

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The 80th Assembly District includes the communities of Barrio Logan, Logan Heights, Sherman Heights, Bonita, Lincoln Acres, Otay Mesa and San Ysidro, along with the cities of Chula Vista, National City and Imperial Beach.

Steve Padilla represents the 18th Senate District, which includes the communities of Chula Vista, the Coachella Valley, Imperial Beach, the Imperial Valley, National City, and San Diego. Prior to his election to the Senate in 2022, Senator Padilla was the first person of color ever elected to city office in Chula Vista, the first Latino Mayor, and the first openly LGBT person to serve or be elected to city office. Website of Senator Steve Padilla: https://sd18.senate.ca.gov/