CHULA VISTA – Chula Vista could lease out some city-owned land to generate revenue as the city continues struggling with low tax revenue and a shaky economy.
The city owns eight parcels that are not being used and are considered surplus, and is about to acquire three more parcels for no money under agreements related to construction of the South Bay Expressway, said Rick Ryals, the city's real-property manager.
At the request of the City Council, Ryals recently reviewed those 11 sites to see whether any would be suitable to sell.
Several parcels are too small for development or are being used for drainage or community landscaping, and others could be used for city expansion in the future, Ryals said. He ended up with three that could be sold.
|
Chula Vista's surplus property
 Vacant lot at Fourth Avenue and Oxford Street, 0.17 acre
Vacant lot at H Street and Interstate 805, 7.62 acres
Lot with landscaping at Brandywine Avenue and Olympic Parkway, 0.24 acre
Vacant, sloped lot on Otay Lakes Road, 0.52 acre
Vacant lot at 194 Orange Ave., 0.7 acre
Vacant lot with drainage channel at Loma Court, 0.24 acre
Women's Club, 357 G St., 0.32 acre
Old Public Works Yard, 707 F St., 5.98 acres
Vacant lot north of Eastlake Parkway and west of state Route 125, 9.55 acres (in process of being transferred to city)
Vacant lot south of Eastlake Parkway and west of state Route 125, 5.18 acres (in process of being transferred to city)
Vacant lot at the northwest corner of the county landfill, 54 acres (to be transferred to city under 1999 agreement)
|
|
Of those, one has been used for storing dirt and construction materials for city projects. The other two will become city property when the City Council accepts the deeds July 15. The parcels are near the South Bay expressway, a tollway that opened last year.
Under agreements with the tollway developers, much of the surplus land automatically reverts to Chula Vista. The developers benefit because they don't have to pay property tax on small parcels that would be difficult to develop.
One site that could be sold is at Interstate 805 and H Street. The other two are north and south of Eastlake Parkway, west of the tollway.
Ryals said the city has been approached by owners of plant nurseries for growing operations, such as raising palm trees. He said the city hopes to lease out the land for commercial use until property values rise, at which time they could be sold.
“As everyone is aware, real estate values are extremely depressed at the current time,” Ryals said in a memo to the City Council. “In Chula Vista, residential values are down between 30 and 40 percent over the last two years.”
Ryals doesn't know how much money the leases will generate, saying the details haven't been finalized.
Councilman John McCann initiated the staff review of city properties during the council's budget-reduction discussions in February. McCann said he supports selling or leasing land if it isn't needed for a public purpose.
“If we aren't using the property and we can turn that into a revenue-generating opportunity, it will help balance the city's budget and give us more money for city services,” McCann said.
The parcel near H Street is used for temporary storage of dirt and construction materials for city capital projects. The land isn't suitable for development because of its proximity to the freeway and its limited access through a residential neighborhood, Ryals said. City staff members are considering whether to lease out the whole site or a portion of it. Another future option might be selling the land to Caltrans, which has identified it as a potential park-and-ride site, Ryals said.
The parcels near the South Bay Expressway are vacant.
Chula Vista's surplus land also includes:
The Women's Club at Garrett Avenue and G Street, which is used for about 160 functions a year. The events generate about $30,000 a year for the city, so the building is generally paying for its upkeep and shouldn't be sold, Ryals said.
The old Public Works Yard at 707 F St., which the Redevelopment Agency hopes to use for a future project. Officials are negotiating with Beverly Hills-based Galaxy Commercial about apartments with offices, said redevelopment manager Eric Crockett.
A 54-acre site next to the Otay Landfill. Under a 1999 agreement with Allied Waste Industries, Chula Vista is entitled to take ownership of that land in return for supporting a landfill expansion, Ryals said. Crockett said the city is beginning the process of taking title to it for future redevelopment.
There are also several parcels designated as open space and drainage channels, and a few that the city could use for expanding public facilities.
The city also owns some downtown parking lots that officials hope to redevelop in the future; those aren't considered surplus properties because they're in use.
San Diego, which also faces budget shortfalls, recently identified 17 surplus city sites worth millions of dollars. In May 2007, San Diego Mayor Jerry Sanders received council approval to sell the land.
One of those parcels in San Ysidro was sold last month for $3 million to the U.S. government for redevelopment of the border crossing. The 1½-acre site includes the existing Border Patrol building. San Diego accepted that price, even though it was $200,000 less than a previously appraised value, because of the declining real estate market.
Tanya Mannes: (619) 498-6639; tanya.mannes@uniontrib.com
