chula vista bayfront development opportunity marketing brochure

Development Opportunity

NORTH AMERICA

CALIFORNIA

Chula Vista Bayfront development ‒ the last great waterfront development opportunity on the West Coast535 acres

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Contents

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Executive Summary

Bayfront Master PlanRegional Market & Economic Overview

Site Ownership, Governance & Anticipated Contractual Structure

Solicitation Information

Introduction ..............................................................7Purpose of Solicitation ............................................8Chula Vista Bayfront Overview ..............................11 Comparable Mixed Use Properties .......................12Comparable Resort Projects ..................................13Site Attributes .........................................................15

Project Background ................................................44Site Overview ..........................................................47Phase One Infrastructure .......................................48 Harbor District .........................................................50Sweetwater District .................................................54Otay District ............................................................56

Regional Overview ..................................................27Economic Overview ...............................................28Chula Vista / South Bay ..........................................30 Ports of Entry ...........................................................32Transportation .........................................................33Tourism ....................................................................34Ecotourism ..............................................................36Tourism Market Statistics .......................................38H-3 Parcel: Destination Resort Feasibility Analysis ..................................................40H-18 Parcel: Destination Retail / Commercial ......42

Site Ownership........................................................19Port and City Partnership ......................................20Design Review, Entitlement and Permits ..............21 Other Key Stakeholders .........................................23

Access to Solicitation .............................................58

Chula Vista Bayfront Siteplan

SAN DIEGO

CORONADO

SAN DIEGO BAY

PACIFIC OCEAN

POINT LOMA

SAN DIEGO INTL AIRPORT

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Executive Summary

The San Diego Unified Port District (the “Port”) and the City of Chula Vista are seeking a visionary development team to create a world-class convention destination resort hotel on the Chula Vista Bayfront (CVB). Located on world famous San Diego Bay, the approximately 535-acre CVB Master Plan has been approved by the California Coastal Commission. This is the last great waterfront development opportunity in southern California and is intended to create a legacy destination for the public.

After 20 years of hard work and planning, the site is now “shovel ready” with favorable market conditions to transform the CVB vision into reality, leaving a generational legacy of vibrant waterfront development that honors the environment, contributes to the local economy and is enjoyed by residents of Chula Vista, the surrounding region and visitors from around the world.

To access the solicitation, visit www.cvbayfront.com

Introduction

SAN DIEGO BAY

CHULA VISTA

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Executive Summary

Purpose of Solicitation

In June 2014, the Port will be seeking Expressions of Interest and Qualifications from teams of qualified investors, developers and designers of convention hotels to develop Phase I of the CVB, which includes developing a 1,400- to 1,600-room convention destination resort hotel with approximately 400,000 square feet of meeting/conference/exhibition space and associated parking (collectively referred to herein as the “Project”) on the 36.5 acre waterfront parcel known as H-3 (the “Site”).

Through the solicitation process, the Port is seeking to engage a development team that has a demonstrated track record and capacity to design, build, finance and operate large-scale convention destination resort hotel projects. The Port expects to select the best qualified development team to design, finance, construct, own and ultimately operate the Project. This Request for Qualifications (RFQ) is the first of a two-stage RFQ and Request for Proposal (RFP) solicitation process intended to identify the best team that provides the Port with the professional expertise, ability, and capacity to deliver a landmark resort hotel that establishes a legacy presence for this unique site on San Diego Bay. In addition to the convention destination resort hotel, the Port could consider the selected developer from this two-step solicitation process for a first right of refusal for the development or master development of other sites within the CVB, including the 24.6 acre H-23 site, which is adjacent to the H-3 site to the southeast.

Specific areas of qualification will include:

• The capabilities, as demonstrated through case studies, past performance references and team qualifications to plan, design, and construct a world class resort hotel and convention center that incorporates best practices in environmental sustainability;

• Ability to finance a development of this scale;

• Capability to engage the public in community outreach activities;

• Thoughtful narrative describing team vision and approach to this development and key issues that need to be addressed to ensure its long term viability.

The Port has partnered with the City of Chula Vista (the “City”) to form a Joint Exercise of Powers Authority (JEPA) to create a Financing Authority to fund the master plan infrastructure and any demonstrated “bridge” funding necessary to design and construct the convention center portion of the H-3 parcel development. Details are provided in the Site Ownership, Governance, & Anticipated Contractual Structure section starting on page 19 of this document.

Subject Site Characteristics The Site consists of approximately 36.5 acres of partially developed land located within the Chula Vista Bayfront, west of Marina Parkway, north of Chula Vista Harbor and fronting San Diego Bay. The site is currently occupied by a recreational vehicle (RV) park, which is in the process of being relocated. The site is located just 1/3 mile from the Interstate 5 freeway and the existing H Street light rail station and future Bus Rapid Transit (BRT) station. This provides the Project with excellent freeway visibility and easy access via multiple modes of transportation. The Port will operate a shuttle system within the CVB that connects to the light rail and BRT stations.

Development ObjectivesThe Port and the City seek to create a vibrant mixed-use destination waterfront district that becomes the coastal focal point for visitors, residents and business in the San Diego South Bay. By striking a healthy balance between preserving environmentally sensitive habitat, providing new parks, promenades and boating facilities for passive recreation and more active uses such as shopping, dining, marine commercial,

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and convention activities, the district will be a truly unique southern California experience.

The convention destination resort hotel on the H-3 parcel, permitted to reach a height of up to 240 feet, is expected to be the hub of district life by hosting daily conferences, exhibitions, entertainment, festivals, dining, events, and other activities that attract visitors from afar and residents from the region. Superior environmentally-sustainable architectural design should be provided that is visually appealing from both land and the bay. The City and Port desire for the convention destination resort hotel to be completed and become operational concurrent with the completion of the Phase I site infrastructure.

The development will benefit from improvements to the marina adjacent to the resort hotel site, which will create an active commercial harbor with retail shops, restaurants and public space at the water’s edge. In addition to development on Port lands, complementary mixed-use residential will be developed on adjacent private lands by Pacifica Companies, a private development firm. The location provides for more than 200 acres of parks and other open space areas, including a signature public park, bike paths, walking trails, interpretive signage and shoreline promenades. These valuable amenities will act as a draw to the site and promote active and passive recreation and eco-tourism.

The location’s regional proximity to downtown San Diego and the Mexico border as well as the water access frontage to a population and development growth area of San Diego County, provides a strong user base and an excellent long-term geographic position.

Executive Summary

CVB’s regional proximity provides a strong user base and an excellent long-term geographic position

Sweetwater DistrictCommercial/Recreation

25 acres

Harbor DistrictMixed Use121 acres

Otay DistrictCommercial/Recreation

53 acres

H-3 Parcel

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Executive Summary

The CVB is located at the southern portion of the San Diego Bay and is approximately midpoint between downtown San Diego and the Mexico border. With panoramic views stretching from Baja California to San Diego and across the San Diego Bay to the Pacific Ocean, the Bayfront offers a unique opportunity to develop a special place that will draw from local and regional populations as well as from the broader U.S. and international visitor groups that have historically traveled through San Diego or Mexico.

Surrounded by 3,000 acres of wildlife preserve and valuable natural resource lands, the Chula Vista Bayfront Master Plan (CVBMP) was crafted to best protect and enhance environmental resources while encouraging high quality commercial development for a vibrant and viable waterfront project. The 535-acre Master Plan consists of three planning areas: the central Harbor District (in which the subject site of this solicitation is located), the northern Sweetwater District, and the southern Otay District, (the Chula Vista Harbor, and Boat Channel are subareas within the plan). The Sweetwater District proposes the lowest intensity development and focuses on lower scale, environmentally sensitive and ecologically themed uses. In contrast, the Harbor District is intended to provide a significant link from the City to the Bayfront and includes the highest intensity

development. The Otay District proposes moderate intensity mixed-use development. Each district contains substantial amounts of open space and public amenities and is seamlessly connected by greenbelt linkages that include pathways for pedestrians and bicyclists.

The site planned for the resort convention hotel and convention center, known as the H-3 parcel, is a 36.5 acre parcel located in the central Harbor District. Parcel H-3 is located directly north of the marina. The Harbor District encompasses the greatest diversity of uses, including the majority of the planning district’s developed commercial uses and areas accessible by the public. As a result of a land exchange, an interior portion of the Harbor District falls under the City’s jurisdiction and is intended for private residential, general office, retail and hotel development – all of which has been planned in conjunction with the CVBMP.

Proposed development in the Harbor District is the highest intensity of the plan and encourages an active, vibrant mix of uses and public spaces. Land use designations within this subarea include Open Space, Wetlands, Park/Plaza, the Convention Destination Resort Hotel site, Retail Development around the Marina, other Commercial uses, and a Promenade around the Marina.

Chula Vista Bayfront Overview

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Executive Summary

Comparable Mixed Use Properties

The location and scale of the CVB provides a unique opportunity for a visionary development team to create a distinctly branded resort of significant scale similar to development projects such as:

Baltimore Inner Harbor – Baltimore, MarylandBaltimore Inner Harbor is a historic seaport, tourist attraction and landmark of the city of Baltimore, Maryland. In 2009, the Urban Land Institute described the development as “the model for post-industrial waterfront redevelopment around the world.” The Inner Harbor consists of the end of the Northwest Branch of the Patapsco River and includes any water west of a line drawn between the foot of President Street and the American Visionary Art Museum. The development provides a wide area of tourist attractions and demand generators such as museums, restaurants, nightlife, cultural events and venues. The renewal of the Inner Harbor began in 1958 with the adoption of a 33-acre development known as the “Charles Center” and continued until 1965 as Baltimore renewed the center of its business district by rebuilding Charles Center with office buildings, hotels, and retail shops. Around this same time, the redevelopment program was expanded to include 240 acres surrounding the Inner Harbor. Since then the area has continued to grow in popularity and tourist attractions, as it is now considered a major hub for recreational, dining, retail, and entertainment activities in the area.

National Harbor – Prince George’s County, MarylandNational Harbor is a 300-acre multi-use waterfront development on the shores of the Potomac River in Prince George’s County, Maryland, just south of Washington, DC near the Woodrow Wilson Bridge. With an estimated total price tag of approximately $2 billion, the project is being developed in phases, with projected completion of all phases slated for late 2014. Phase 1 of National Harbor opened in April 2008. In addition to the Gaylord National Resort & Convention Center (opened April 2008), the development offers five additional hotels, waterfront condominium buildings, offices, retail stores, nightlife establishments, a marina, and a new location for the National Children’s Museum. An outlet shopping center opened at National Harbor in November 2013. The opening of the Gaylord property as part of the development is believed to be a demand generator in and of itself, attracting large groups and conventions from around the United States. National Harbor hosted Cirque du Soleil in 2008, 2010, and 2012. A $925 million MGM-branded casino is expected to open at National Harbor mid-2016, following a state commission that awarded Maryland its sixth and final casino license in December 2013.

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Executive Summary

Comparable Resort Projects

Name: Gaylord Palms

Location: Kissimmee, FL

Rooms: 1,406

Description: Gaylord Palms Resort & Convention Center opened in 2002 and acts as the de facto convention center for Osceola County, FL. With approximately 400,000 square feet of meeting space, Gaylord Palms offers the second largest meeting space of any hotel in the state of Florida. There are currently tentative plans to expand the property, potentially including an additional atrium containing up to 500 more rooms, an entertainment center, and two new restaurants.

Name: Gaylord National Resort & Convention Center

Location: National Harbor, MD

Rooms: 2,110

Description: The Gaylord National Resort & Convention Center is a large hotel and convention center serving as the anchor of a new mixed-use (office, residential, retail) development in National Harbor, MD. The $870 million dollar property is the largest non-gaming hotel and convention center on the East Coast of the United States. The property offers over 2,000 guestrooms and approximately 500,000 square feet of meeting space. Before the grand opening on April 1, 2008, it had over 1.3 million room nights booked.

Name: Hotel del Coronado

Location: Coronado, CA

Rooms: 757

Description: The Hotel del Coronado, also known as “The Del” and “Hotel Del”, is a beachfront luxury resort in the city of Coronado, across the San Diego Bay from San Diego. The Victorian resort is the second largest wooden structure in the United States and was designated a National Historic Landmark in 1977. The property is also designated a California Historical Landmark.

SAN DIEGO BAY

36.5 ACRE HOTEL /

CONVENTION SITE

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Executive Summary

High visibility and accessibility • The development site has three entrances from

the heavily traveled north-south Interstate-5 freeway and is approximately a 15-minute drive from both the San Diego International Airport and the U.S.-Mexico border. Thirty million people enter the United States annually from the nearby border crossing and most pass this site.

• An average of 160,000 vehicle trips pass the entrance to the site per day.

• While the Bayfront site will have its own sense of place focused on the water, it will be connected directly with the City of Chula Vista and the San Diego Trolley system through road extensions and shuttles.

International context • With panoramic views stretching from Baja

California to downtown San Diego and across the San Diego Bay to the Pacific Ocean, the Bayfront offers a unique opportunity to develop a special destination capable of drawing from local and regional populations as well as broader U.S. and international visitors.

• Beautiful views to the north across the bay provide a visual connection with San Diego, and the Bayfront site’s proximity to this top 10 vacation and convention destination will make it a natural beneficiary of San Diego’s continued growth.

Harmonious balance between development and environment

• The initial development, comprising both commercial and residential elements, will be centered around the marina and will be connected

with a large 22-acre waterfront park to the north and west of the resort/hotel conference center.

• A substantial public realm will weave throughout the site providing access and a consistent feel throughout the Bayfront.

• A series of parks will stretch from north to south along with a waterfront public promenade; bike paths will provide an additional link throughout the Bayfront.

• The site is located directly in the Pacific Flyway. Dozens of species of local and migrating birds can be viewed from this site. In the winter, thousands of birds can be seen in the bay.

Waterfront and recreational actives • Bayfront access directly across from site

• Harbor tours and water taxis to downtown San Diego are envisioned

• Sailing and kayaking on the bay

• Fishing and whale watching readily accessible

• Boat launch ramp

• Series of pathways throughout the entire Bayfront site for walking, running and biking in a unique ecological preserve of parklands and provide a connection to the Bayshore Bikeway

Ability to create a distinctive brand presence • Large site provides many opportunities to create

a distinctive brand and amenities following the overall master plan and permissible uses

• Surrounding parklands provide a unique setting to support active and passive recreation and eco-tourism

• Ability to integrate resort activities and amenities with surrounding uses

Stakeholder alignment • The Port and City have worked in partnership

on this project for the past ten years and there is political alignment and support for the project

• The Port and City have entered into a JPA to fund the infrastructure to support Phase 1 development

• The CVB Master Plan has been fully approved by the California Coastal Commission

• A Bayfront Cultural and Design Committee (BCDC) has been established to review and provide input to developer solicitation documents and project designs

• Environmental and labor organizations have entered into a Settlement Agreement with the Port and the City that provides a reasonable process to ensure a healthy balance between future development and wildlife habitat, project financial feasibility and quality local job creation

Site Attributes

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Executive Summary

Western view from the 10th floor of proposed hotel

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LOOKING NORTH: view from 10th floor of proposed hotel

LOOKING SOUTH: view from 10th floor of proposed hotel

15Minutes from

Chula Vista Bayfront to downtown San Diego

Proposed development in the Harbor District is the highest intensity of the plan andencourages an active, vibrant mix of uses and public spaces. Land use designations within this subarea include Open Space, Wetlands, Park/Plaza, Commercial / Recreation, and Promenade. Up to 2,850 hotel rooms are proposed in the Harbor District at two separate sites. The exact number of rooms may be allocated among either site.

Unparalleled location with expansive ocean vistas

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The majority of the 535-acre CVB is on land held in trust by the Port for the people of California. The Port manages the tidelands and lands lying under the inland navigable waters of San Diego Bay, and promotes commerce, navigation, fisheries, and recreation. The Port is prohibited from selling its properties but may enter into long-term ground leases of up to 66 years. Land uses in the CVB are governed by the Port’s Master Plan (the CVBMP) for the project area.

Site Ownership


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The project’s progress to date represents a strong and distinctive example of successful long term collaboration between the Port and the City. This collaboration was instrumental in achieving unanimous approval of the CVBMP by the California Coastal Commission (“Coastal Commission”) in 2012. That approval was achieved through a decade-long joint planning effort between the Port, the City and community participants including environmental stakeholders. This process included clearing several regulatory hurdles.

Since Coastal Commission approval, the ongoing Port/City collaboration has continued to move the project forward, with activities that include:

• Extensive site preparation including a phasing plan and basis of design for the Phase I infrastructure, the demolition of the 550 mw power plant and the construction of the “H” street extension that connects the Harbor District directly to Interstate 5;

• Extensive feasibility and cost analysis for Phase I development in the Harbor District;

• Development of draft Design Guidelines for the CVB site;

• Establishment of a Financing Agreement between the Port and City to address financing and maintenance of site infrastructure;

• Development of the framework, authority, and duties of the CVB Financing Authority.

The Port and City are committed to moving the project forward as quickly as possible and will actively support the selected development team in the permitting process. Similarly, the entities are further committed to implementing the infrastructure improvements in a time frame that does not impact the schedule for the construction of the Project.

Port and City Partnership


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The Port has adopted a Programmatic Environmental Impact Report (EIR) that contemplates the maximum potential development allowable in the approved CVBMP within the Harbor District. Future development projects within the Harbor District will only be subject to the completion of a Secondary Study for environmental conformance with the EIR. The Port will perform a consistency determination of proposed projects within the Harbor District that ensures their compliance with the approved CVBMP and will ultimately issue a Coastal Development Permit. Mapping and building permits will be processed and approved through the City. The proposed Project will follow a design review process that responds to input from the City, Port, and stakeholder groups.

Anticipated Form of ContractThe contractual structure between the Port and the selected development team will be in the form of an Option to Lease Agreement. Under this agreement the development team will enter into a ground lease for up to 66 years with the potential for lease extensions. The details of this option to lease will be further outlined in the RFP.

Joint Powers Authority / Public FundingThe Port and City have established a Joint Exercise of Powers Agreement to create the “Financing Authority”, specifically for the purpose of implementing the CVBMP that will have representation from both the Port and the City. The Financing Authority will act as the legal entity and mechanism to fund the implementation of the required public improvements. The Financing Authority has the power to issue debt to fund project improvements.

The Financing Authority has created a debt service repayment capacity through collected ground lease rents, fees, taxes and other revenues collected from future project development for the purpose of funding project infrastructure requirements.

Once a development partner for the H-3 parcel has been selected, demonstrated necessary bridge funding for the design and development of the convention facility may be provided by the Financing Authority upon its approval.

The long term financial objective is for the convention destination resort hotel to become a positive source of revenue for the City and Port through the generation of sales tax, hotel room tax, property tax, ground lease payments, job creation, and indirect economic impacts.

The Financing Authority is prepared to finance, and the Port is prepared to manage, the design and construction of the necessary CVB infrastructure and public spaces. Upon selection of the development team for the H-3 site, the Port will collaborate with the development team to ensure that necessary infrastructure improvements are completed concurrent with, or in advance of, the completion of the hotel and conference center. The Port will consider delegating the responsibility of constructing the infrastructure to the selected developer, should that approach be deemed cost effective and in the best interest of the delivery of the overall project.

In addition to the convention destination resort hotel, the Port could consider the selected developer from this two-step solicitation process for a first right of refusal for the development or master development of other sites within the CVB, including the 24.6 acre H-23 site, which is adjacent to the H-3 site to the southeast.

Design Review, Entitlements and Permits


Page title here

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California Coastal CommissionThe California Coastal Commission was established by voter initiative in 1972 (Proposition 20) and later made permanent by the Legislature through adoption of the California Coastal Act of 1976. The Coastal Commission, in partnership with coastal cities and counties, plans and regulates the use of land and water in the coastal zone. Development activities, which are broadly defined by the Coastal Act to include (among others) construction of buildings, divisions of land, and activities that change the intensity of use of land or public access to coastal waters, generally require a coastal permit from either the Coastal Commission or the local government.

The mission of the Coastal Commission is to: Protect, conserve, restore, and enhance environmental and human-based resources of the California coast and ocean for environmentally sustainable and prudent use by current and future generations.

The Coastal Act includes specific policies (see Division 20 of the Public Resources Code) that address issues such as shoreline public access and recreation, lower cost visitor accommodations, terrestrial and marine habitat protection, visual resources, landform alteration, agricultural lands,

commercial fisheries, industrial uses, water quality, offshore oil and gas development, transportation, development design, power plants, ports, and public works. The policies of the Coastal Act constitute the statutory standards applied to planning and regulatory decisions made by the Commission and by local governments, pursuant to the Coastal Act.

Settlement Agreement with Environmental StakeholdersIn order to resolve any potential litigation or other action challenging development within the Master Plan area, the Port and the City negotiated a settlement agreement with a coalition of six environmental advocates and a coalition of trade union advocates consisting of The Environmental Health Coalition, The San Diego Audubon Society, San Diego Coastkeeper, Coastal Environmental Rights Foundation, Southwest Wetlands Interpretative Association, Surfrider Foundation, San Diego Chapter and Empower San Diego. Generally, the agreement prescribes and/or encourages construction and operating practices as well as mitigation measures concerning protection for the surrounding wildlife habitat, energy conservation and other matters.

Other Key Stakeholders


Over 260 days of sunshine per year and an average daily temperature of 70 degreesSan Diego

3.2Million residents call San Diego Bay home

TWOProfessional sports teams:

San Diego Padres &San Diego Chargers

Regional GDP of $202B

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Regional Market & Economic Overview

With a 27,000 square-mile footprint and a population in excess of 6.5 million people, the bi-national San Diego Mega-Region is composed of San Diego and Imperial Counties and the state of Baja California, Mexico. With a world-class infrastructure and talent to innovate, design, develop and manufacture the products that will lead the next wave of global economic growth, the region boasts two major international airports, three land ports of entry, and two major seaports. The region generates an annual GDP of $202 billion, primarily from several key industries including advanced manufacturing, tourism, military and defense, applied biotechnology, information technology, telecommunications, agribusiness, clean-tech, and logistics. The region is ranked 5th worldwide in attracting venture capital and is home of two national professional sports teams, the San Diego Padres and the San Diego Chargers.

San Diego CountySan Diego County is home to 3.2 million residents and is expected to add nearly 800,000 new residents by year 2030, and reach a population of 4.4 million by year 2050. The San Diego regional workforce is well-educated, with 35% holding bachelor or post-graduate degrees.

Regional Overview

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Economic Overview

BioTechThe region has more than 600 life science companies and more than 80 research institutes employing more than 48,000 people with high average wages making it the nation’s second-largest life sciences cluster. The research institutes – along with the University of California, San Diego – provide the sector with breakthrough technologies that fuel company growth and product development. Major pharmaceutical companies including Pfizer, Johnson & Johnson and Merck maintain a presence in the region to foster collaboration with major research institutes, universities and smaller biotech companies. The region attracts graduate students and postdoctoral trainees from around the world. Many stay in the area to pursue academic research or positions in the industry.

Information Technology / TelecommunicationsInformation and communication technology companies like Kyocera, Qualcomm, Intuit, and ESET employ more than 72,000 people and are leading the way in our future information sharing, on-line entertainment, military and defense systems, and cyber security. San Diego was recently ranked the top U.S. city in which to launch a startup by Forbes magazine.

Technology and innovation incubators like EvoNexus and CONNECT are nurturing some of tomorrow’s great new forward-thinking businesses in innovative industries. CONNECT is a regional program that catalyzes the creation of innovative technology and life sciences products in San Diego County by linking inventors and entrepreneurs with the resources they need for success. Since 1985, CONNECT has assisted in the formation and development of more than 3,000 companies. EvoNexus is a community-supported technology incubator that has graduated 28 new companies and created more than 1,000 jobs since 2009 while attracting $520 million in venture capital.

Military / DefenseAs the world’s largest concentration of military installations, assets and combat power, San Diego provides more than 311,000 jobs in the military and defense industries. The industry contributes $21 billion annually in direct spending to the regional economy. As the west coast headquarters of the Space and Naval Warfare Weapon Systems Command, businesses specializing in research, command, control and communications, intelligence, surveillance, and reconnaissance play vital roles in the San Diego regional economy. The businesses leading the regional defense indus-try include Lockheed Martin, Raytheon, Cubic Corporation, and BAE Systems.

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Clean-TechSan Diego is one of California’s most concentrated centers of Clean-Tech employment with more than 850 companies. Between 1995 and 2010, employment in the sector increased 73 percent, while total regional employment grew 26 percent. These companies represent 10 percent of the total green jobs in the state, 13 percent of renewable energy jobs in the state and 11 percent of energy efficiency and green building jobs.

San Diego is leading the way in preparing skilled workers for jobs in the green economy. The region was the recipient of a $4 million state grant to train people for careers in the biofuels industry. Industry partners in the program include the largest clean technology employers in the region—General Atomics, Sempra Energy, Sapphire Energy, Synthetic Genomics and Verenium.

Maritime / Blue-TechSan Diego’s maritime industry is claiming its place as one of the region’s unique technology clusters. “Blue-Tech” is a term being used to describe technology innovation in maritime industries. Even traditional maritime activities are being transformed by technology. As one of the region’s largest maritime operators, the Port of San Diego employs more than 46,000 people, provides cargo and cruise ship terminals, 17 waterfront parks, and hundreds of visitor-serving uses such as hotels, retail, and restaurants. Maritime technology is growing new industry clusters such as aquaculture, biomedicine, desalination, ocean energy, robotics and submarines, and climate

science. More than 6,000 new jobs in these industries are projected by year 2020. Regional leaders include Cubic Corporation, General Atomics, Poseidon Resources, and Seabotix.

Sports and Active Lifestyle IndustrySan Diego County’s Sports and Active Lifestyle (SAL) industry cluster is a vibrant contributor to the region’s economic and employment landscape. Providing more than 23,000 jobs within 1,200 businesses, the industry thrives on the region’s year-round temperate weather and healthy lifestyle of its residents. Composed of companies experienced in sports products and training equipment, apparel and footwear, nutrition, endurance sports, and motor sports, the San Diego region is the second largest concentration of businesses specializing in sporting and athletic goods in the country.

Higher Education and Research San Diego County boasts several institutions of higher education that conduct groundbreaking research, train the region’s workforce, and provide a human capital infrastructure that enables the region to compete globally for investment and jobs.

• The University of California in San Diego, with an enrollment of more than 27,000 students, has been ranked one of the top ten public universities in the country specializing in math, sciences, and innovative technology and medicine.

• San Diego State University is ranked as a leader in international business, rehabilitation counseling, public health, and clinical psychology, boasts a student enrollment of more than 35,000 and has received more than $1 billion in research grants in the past 13 years.

• The University of San Diego, with a student enrollment of more than 8,000, offers 42 high quality undergraduate, 39 graduate, JD, and three doctoral degree programs.

• California State University, San Marcos, has a student population of more than 10,000 with a curriculum focused on writing, critical thinking and collaboration.

• Southwestern College offers an Associate of Arts degree in 50 different majors, an Associate of Science degree in 80 different majors, and numerous professional development programs. With a student enrollment in excess of 19,000, the college is one of the nation’s top producers of associate degrees for Hispanic students

Regional research facilities like the Salk Institute, Scripps Institute of Oceanography, and the Sanford-Burnham Medical Research Institute are advancing possibilities for biofuels and treatments for diseases like Alzheimer’s, cancer, and autism through plant biology and genome therapy.

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The South Bay region is composed of the cities of Chula Vista, National City, Imperial Beach, Coronado, and the San Ysidro and Otay Mesa communities of the City of San Diego. According to the 2010 Census, the South Bay region includes more than 450,000 residents. South Bay is home to major employers and visitor attractions like Naval Base San Diego, the SleepTrain Amphitheatre, Border Field State Park, Aquatica Water Park, and the San Ysidro Port of Entry.

The City of Chula Vista is the largest city in the South Bay and the second largest city in the county with more than 250,000 residents. As one of Southern California’s fastest growing cities, Chula Vista is expected to add another 60,000 residents (25 percent) by year 2025, according to the San Diego Association of Governments Regional Growth Forecast. The City of Chula Vista boasts one of South Bay’s highest median annual household incomes at more than $65,000.

Downtown Chula VistaLocated less than one mile from the Chula Vista Bayfront, the Third Avenue Village traverses the historic heart of downtown Chula Vista. Its indoor/outdoor dining opportunities, unique shops, nightlife, weekly farmers market, museums, performing arts theatre, and lively street festivals create a year-round hub of interesting activities within a pedestrian-friendly environment.

In 2007, the Chula Vista City Council adopted a Specific Plan, combined with a programmatic Environmental Impact Report, to create a vision and the incentives for attracting new investment and revitalization to approximately 1,700 acres of its urban core. The plan envisions a broad mix of uses and business opportunities, as well as a range of housing types. The urban center is envisioned to be the “heart” of the community where people gather to attend special events, farmers markets, street performances, and outdoor dining. Comprehensive design guidelines are included in the plan to encourage superior architecture and high quality pedestrian-friendly connections based on sustainable design principles and form-based code. The city is now well-positioned to provide an efficient and predictable entitlement process that reduces risk to attract development and investment.

MaquiladorasThe South Bay is home to many Maquiladoras, also known as maquilas or twin plants that are assembly or manufacturing facilities commonly located in Mexico, with a parent company in the United States. These companies import goods, machinery, and technology and export the final assembled product. The Maquiladora Industry has played an essential role in positioning Mexico as Latin America’s largest exporter and 13th largest exporter in the world. Moreover, Maquiladoras

Chula Vista / South Bay

Chula Vista looking south to Mexico

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have become a significant source of revenue and employment for both Mexico and the United States. Maquiladoras function in a bi-national apparatus and benefit from NAFTA’s trade agreements. Manufacturing companies with annual foreign sales of $50,000 or greater, can benefit from their San Diego/Baja location by deferring tariffs until the final product shipment. Nearly one million people work in over 3,000 Mexican Maquiladoras. The Manufacturing industry is the number one source of employment in Northern Mexico and employs 49 percent of the total population of Baja California.

The United States accounts for more than $800 million annually in direct investment in the manufacturing industry of Baja California. Many corporate headquarter and regional offices are conveniently located in South County to administer and aid business operations in Baja California. Corporate offices in South County manage R&D, final assembly, human resources, sales and accounting. The labor-intensive manufacturing work is typically done in Baja California. Companies in the United States can send raw materials, equipment, and supplies to Mexico for assembly or processing without paying import duties until final product shipment.

Twin plants become more competitive in world markets due to the combination of American advanced technology and the lower costs of Mexican labor and supplies. Additionally, South County companies may realize benefits from the State offering hiring and equipment sales/use tax credits, accelerated depreciation on qualifying equipment, priority status on Industrial Development Bond applications, and preference points on state contracts. South County is also home to a Federal Foreign Trade Zone and State Recycling Market Development Zone offering additional business incentives.

Major South Bay Projects

Cross-Border Terminal

Construction recently began on the new Cross-Border Terminal located in Otay Mesa near the Tijuana International Airport. The

project will include a 500-foot bridge connecting the United States to the Tijuana Airport terminal allowing ticketed passengers easy access to international destinations. The terminal bridge is expected to boost tourism and investment by foreign manufacturing companies wanting to open distribution warehouses in Otay Mesa. Expected to be open by the end of 2015, the project is funded by United States and Mexican investors.

University and Innovation District

Within its Eastern Urban Center, the City of Chula Vista is currently in the planning phase of creating a University and Innovation District composed of a new four-year educational institution or multi-institutional university and urban mixed-use town center. The City has set aside 375 acres for the university campus and an adjacent 85 acres for a mixed-use village and technology park. The university could provide an enrollment of approximately 17,000 students and hundreds of jobs for the region. The neighboring technology park is expected to attract thousands of high paying jobs.

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The San Diego region has three land Ports of Entry (POE): San Ysidro, Otay Mesa, and Tecate, while a fourth is planned at Otay Mesa East and a crossborder passenger connection to the Tijuana International Airport will begin construction in 2014. The San Ysidro Land POE is known as the world’s busiest international border crossing, while the Otay Mesa POE is the main commercial gateway for international trade between California and Mexico. The San Ysidro POE handled 27.75 million border travelers traveling from Tijuana to San Diego in 2012. It is estimated that a similar number of crossings take place from San Diego to Tijuana, which means there were approximately 55.5 million crossings through the POE last year. The number of travelers almost equals that of the Los Angeles International Airport (LAX), which accommodated 63.6 million air passengers in 2012.

More than half of the trips through the POE are for shopping and recreation; some ten million are trips to and from work. 90 percent of all personal trips across the border are local in character, either starting or finishing in San Diego County or Tijuana/Tecate.

Planning is underway to redesign and expand the San Ysidro Intermodal Transportation Center (SYITC), which currently supports more than 22,000 daily transit boardings and arrivals. The San Diego Trolley and local buses provide public transit access to and from the border station. The San Diego Association of Governments (SANDAG) and the County of San Diego are working to make the SYITC an iconic devel-opment and welcoming gateway to California that complements border crossing improvements underway. In addition to creating a terminal hub for connecting the region’s light rail, bus rapid transit, local bus, pedestrian, and automobile transportation modes, the center is envisioned to include retail, dining, hotel and office uses.

U.S. Olympic Training CenterChula Vista is home to the country’s only warm-weather U.S. Olympic Training Center. The Training Center is the first to be master-planned from the ground up and is dedicated to the development and performance of America’s future Olympic and Paralympic athletes. The year-round, warm-weather facility was a gift to the U.S. Olympic Committee from the San Diego National Sports Training Foundation, a group of dedicated business and community leaders and volunteers who raised the funds to build the Center.

The Chula Vista Olympic Training Center (CVOTC) rests on a 155-acre complex adjacent to the Lower Otay Reservoir. The Center has sport venues and support facilities for archery, beach volleyball, BMX, canoe/kayak, cycling, field hockey, rowing, rugby, soccer, softball, tennis, track & field, triathlon, and cross-training abilities for various winter sports. The CVOTC offers support to athletes including housing, dining, training facilities, local transportation, recreational facilities, athlete services and professional development programs.

The CVOTC, which opened in June 1995, has benefited thousands of Olympic hopefuls, numerous community groups, and hosted countless visitors from around the globe.

Ports of Entry

U.S. Olympic Training Center

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The San Diego region has a robust transportation infrastructure. The county’s continually expanding modern light rail system (The San Diego Trolley) covers 51 miles of track and is served by 53 stations. The H Street station is conveniently located adjacent to the project Site. Amtrak and the Coaster provide more than 30 trains daily between downtown San Diego and the coastal cities to the north, including Los Angeles.

An extensive bus rapid transit network will begin service in 2015 and will complement San Diego’s vast freeway system, one of the best in the country. The South Bay Bus Rapid Transit (BRT) project will offer passenger high-quality transit that is fast, frequent, and comfortable. The project will provide new upgraded vehicles and enhanced stations resulting in a premium transit service. The 11 stations’ architectural design will reflect the surrounding community’s character, and will serve major activity centers in downtown San Diego and the South Bay, including offices, shopping, recreational facilities, residential communities, park-and-ride lots, as well as the Otay Mesa Port of Entry on the border with Mexico. A BRT station will be located adjacent to the H Street light rail stop at the gateway to the CVB and its main entrance to the Harbor District.

The San Diego International Airport, conveniently located just 13 miles (17-minute drive) from the CVB, served 17.7 million passengers on 188,000 flights in 2013. Of those annual passengers, approximately 55 percent are visitors (98 percent domestic) and 44 percent are business travelers. Following the recently completed renovation and expansion of Terminal 2, separated arrival and departure decks, parking structure, and new nonstop service to Tokyo, London, Toronto, Mexico City, and other international destinations, San Diego International Airport is poised to expand its business and leisure travel capacity for decades to come. Annual passenger volume is forecast to exceed 30 million by year 2030. Construction is currently underway to relocate and expand a state-of-the-art rental car facility and corporate jet terminal, and increase capacity of the airport’s short-term parking areas.

Transportation

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One of the top visitor and convention destinations in the world


San Diego’s year-round ideal weather, popular attractions and entertainment options draw visitors and conventions in all seasons. The U.S. Weather Bureau described San Diego’s weather as the closest thing to perfect in America. Fodor’s called San Diego a “vacationer’s paradise.” With more than 70 miles of coastline, spectacular hotel and convention spaces, arts and cultural attractions, and an array of enter-tainment options throughout the region, San Diego is positioned as one of the top visitor and convention destinations in the world.

The area is a hub for various tourism attractions such as Balboa Park, San Diego Zoo, San Diego Safari Park, Sea World and LEGOLAND. Additional activities in the region include beaches, casinos, racetracks, concert and sports facilities, numerous shopping venues, dozens of golf facilities, and the San Diego Convention Center. These attractions are popular destinations for international/domestic tourists and business travelers. Throughout periods of economic growth and decline, these sources have proven to be the major drivers behind tourism activity and, ultimately, hotel demand. The region attracts 32 million visitors spending $8 billion annually. SeaWorld, spread across 190 acres on beautiful Mission Bay, offers its 4.6 million annual guests the opportunity to experience 32 different animal habitats, interactive special experiences like swimming with dolphins, shows, rides, a 320-foot tall observation tower, beautiful landscaping, and educational opportunities through its partnership with the Hubbs-SeaWorld Research Institute. The year-round park is one of the many attractions

that make the San Diego region one of North America’s top leisure destinations.

The world famous San Diego Zoo, and its larger sister destination, Safari Park, host more than seven million visitors annually. Located on 1,800 acres, the Safari Park houses a large array of wild and endangered animals. The park has the world’s largest veterinary hospital and is often noted for its successful California condor breeding program that returned the endangered species to the wild. The park offers visitors a unique opportunity to explore animals such as giraffes, rhinoceros, and antelope in free-range enclosures. Its companion 100-acre park, the San Diego Zoo, pioneered the concept of open-air cage-free exhibits that recreate natural habitats. Some of its more famous inhabitants include the giant panda, the koala, and monkeys from the rainforests of Asia and Africa.

Millions of visitors to the San Diego region enjoy the diverse dining opportunities and outdoor cafes, live music and entertainment, nightclubs, festivals, hotels and retail boutiques in the Gaslamp Quarter. On the National Register of Historic Places, the 16 square-block district offers beautifully restored ornate historic buildings with late 19th- and early 20th-century charm in a modern city environment. Providing some of the country’s top-ranked nightclubs and restaurants, the Gaslamp Quarter’s streets are filled with vibrant street life year-round.

Craft Brewery Industry and TourismOne of the fastest growing business sectors in the San Diego region this decade has been

craft brewing. Since 2011, the total number of craft breweries in the region has more than doubled. In addition, San Diego’s craft brewers contribute to the region’s tourism industry dollars by hosting year-round events, festivals and facility tours. Host to the 2012 World Beer Cup (the “Olympics of Beer”) and frequently ranked in the top three craft brew cities in the country, San Diego’s craft brewing community is growing rapidly, as is beer tourism. Unlike seasonal attractions, brewery tourism occurs year-round, and most of the major industry events in the region occur during non-peak visitor months.

Many of the larger San Diego breweries offer facility tours, provide event space, and have active event calendars. Additionally, more than a dozen independent tour guide companies provide brewery tours. In 2012, the region hosted more than ten major beer festivals including two Beerfests and San Diego Beer Week that attracted more than 100,000 attendees.

A 2012 study found that among brewery patrons surveyed, 38 percent were tourists. Of particular interest to the hospitality industry, the majority of brewery tourists indicated in their responses that they were staying overnight (58.5 percent) for an average of 3.16 nights. As of December 2013, there were 88 craft breweries in San Diego County with 33 more planning to open in 2014. Some of the region’s most notable award-winning breweries include Stone, Karl Strauss, Ballast Point, and AleSmith.

Tourism

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One of the top visitor and convention destinations in the world

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Vast areas for outdoor recreation and natural beauty like its local mountains, deserts and habitat preserves place the region among the top in the country for ecotourism. Ecotourism is a large and growing component of the region’s tourism economy. The San Diego—Baja California region is home to some of the world’s most spectacular biological diversity, made possible by the variety of ecosystems found here. San Diego’s natural wonders include the magnificent waters of the San Diego Bay, as well as the lush environs of San Diego parks and mountains. San Diego County is the most botanically diverse county in the contiguous United States. A total of 1,573 native plant species and 570 non-native species have been identified and documented to date, with 26 endemic to San Diego County. There are four wildlife refuges in San Diego County, and two of them, Sweetwater Marsh and the Tijuana Slough National Wildlife Refuge, are located along South San Diego Bay. Both offer the opportunity to see various endan-gered and threatened plant and animal life and are among several resources for diverse, up-close ecotourism experiences.

Ecotourism in the South BayChula Vista and the South Bay provide many destinations for the visitor seeking unique experiences in nature.

The 216-acre Sweetwater Marsh National Wildlife refuge borders the CVB site to the north. This pristine bayfront wetlands refuge features the Living Coast Discovery Center, which offers an inter-active wildlife learning experience with the region’s native animals and plants. A birder’s paradise, the site is located directly in the North American flyway and over 200 species of birds have been sighted on the refuge. The Living Coast Discovery Center offers everything from birding tours, daily shark and ray interactions, Nature Discovery Tours, and even overnight adventures. For a truly memorable experience, the Living Coast Discovery Center invites adventurers to spend a Sunday morning kayaking in San Diego’s Back Bay in search of the illusive Giant Green Sea Turtles.

Ecotourism

One of the top rated regions in the country for eco-tourism

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Tourism Market Statistics

San Diego’s convention and visitor industry employs more than 160,000 people and delivers more than $17 billion annually to the regional economic impact. The visitor industry is expected to grow 1.6 percent in 2014 and hotel demand is expected to grow by 2.8 percent in 2014 and 2.5 percent annually in 2015-16, according to a recent report prepared by Tourism Economics for the San Diego Tourism Authority. The report forecasts average occupancy to grow to 74 percent by 2016 with average annual Average Daily Rate (ADR) growth of 4 percent through 2017. Through the third quarter of 2013, total visitor expenditure was 4.9 percent higher than the same period in 2012. In the near term, visitor expenditures will continue to rise with visits, as inflation remains modest. Spending is expected to grow 5.4 percent in 2014 largely due to the strong performance of overnight visits relative to day visits. Longer term, spending will moderate, but remain above 5 percent annually in 2015 and 2016—driven by a balance of growth in visits and inflation.

Moving forward, room demand is forecast to experience an increase of 2.8 percent in 2014 based on improving economic conditions as well as the return of marketing initiatives of San Diego Tourism Authority.

According to PKF consultants, in 2013 the San Diego market posted increases of 1.6 percent, 1.2 percent, and 2.9 percent in ADR, Occupancy, and Revenues per Available Room (RevPAR), respectively. Year End 2013 RevPAR outperformed PKF’s 2013 projection of 1.4 percent by 1.5 percentage points, with San Diego’s South Bay, La Jolla, and Bay Area markets showing the largest RevPAR year-over-year growth.

For 2014, the PKF report projects that occupied rooms will continue to pace with supply growth of approximately 1.1 percent, along with an accelerated ADR growth of 3.4 percent, resulting in forecasted RevPAR growth of 3.4 percent.

The San Diego Convention Center has demonstrated a high level of success in capturing convention demand, remaining one of the key convention center venues on the West Coast, and across the United States. This being said, the Convention Center experienced a soft 2013, with a similar projection for 2014, followed by a projected ramp up in 2015. An expansion of the San Diego Convention Center is being planned, with the expansion project currently on track for a late 2014 groundbreaking. There have been few additions to the San Diego lodging market in 2012 and 2013, with limited openings slated for 2014. Several projects in the planning stages continue to be on hold or have been withdrawn due to continued difficulties associated with obtaining financing and the high replacement costs relative to going concern value for new construction. The Legoland Hotel and the Pier South Resort Autograph Collection properties were the only two properties to enter the San Diego market in 2013. For 2014, the 137-room Springhill Suites Oceanside opened in February, with the 89-room Holiday Inn Express Hotel Circle and the 182-room Hampton Inn Mission Valley slated for later 2014. Additionally, numerous projects are in the planning phase for 2015 and beyond, including multiple projects in Downtown and the Bay areas. The previously referenced PKF report also mentions that additional hotel projects are expected to enter the pipeline in the Downtown and North Coastal areas over the next several years.

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17Billion dollar annual impact

The San Diego Convention Center is one of the key convention center venues on the West Coast. The waterfront facility features 2 million square feet of exhibit space, meeting areas, ballrooms and outdoor space.

The visitor industry is expected to grow by 1.6% in 2014

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H-3 Parcel: Destination Resort Feasibility Analysis

In June 2013, Jones Lang LaSalle (JLL) prepared a second analysis for this solicitation, evaluating the market viability for a convention destination resort hotel focusing specifically on the subject site on the Chula Vista Bayfront. This study reviewed existing comparable hotels in the downtown San Diego submarket and their respective meeting space compared to hotel room inventory. The report also projected room demand compared with current and known new supply through year 2023. Based on existing San Diego County hotel room inventory and new hotels either under construction or likely to be constructed, JLL’s report forecasts a need for approximately 1,500 new rooms in the 2016-2018 period and an additional 400 rooms in 2021-2023.

JLL also evaluated the viability of delivering a single destination hotel on the site versus a dual-branded hotel. The study concluded that a dual-branded hotel is not likely feasible due to weaker anticipated induced demand. Based on industry standards and site-specific and regional market data, the JLL report recommends a single-destination hotel and meeting space program that approximates the following in the chart at right.

This conceptual program outlined at right is for illustrative purposes based on comparable convention hotels located in downtown San Diego. The short-listed development teams will be expected to provide and justify their own proposed development concepts and programs during the RFP phase of the selection process.

Hotel / Resort Space Size

Total Guestrooms 1,500

Standard 1,380

Suites 120

Food & Beverage Facilities in square feet (restaurants, cafes, cocktail lounges and bars, kitchens and storage)

70,508

Convention Center in square feet 405,000

Meeting Space 225,000

Exhibit Space 180,000

Recreational Facilities in square feet (swimming pools, sauna, lockers, fitness center, spa, children’s area, support and storage)

47,000

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Regional Market & Tourism Overview

H-3 PARCEL

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H-18 Parcel: Destination Retail / Commercial

The 9.5 acre H-18 parcel is a prime retail site adjacent to Interstate 5 that is expected to be offered for development in a separate solicitation in the summer of 2014. This site will present an exciting opportunity to create a vibrant gateway to the CVB by developing a significant visitor-serving or maritime related destination retail/commercial experience.

Retail / Commercial Space Size

Parcel (in acres) 9.5

Potential Gross Building Area (in square feet) 100,000

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H-18 PARCEL

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Bayfront Master Plan

On August 9, 2012, after completing a decade-long planning effort and clearing several regulatory hurdles, the CVBMP was unanimously approved by the California Coastal Commission. With this approval, the way was finally cleared to move the vision of redeveloping the Chula Vista Bayfront (CVB) into a world-class destination, providing people a unique place to live, work and play on the largest remaining waterfront project entitled in southern California.

Since Coastal Commission approval, the ongoing Port/City collaboration has continued to move the project

forward, with the demolition of the SDG&E power plant and the initiation of construction of the H Street extension, which will connect downtown Chula Vista directly with the water-front. With the release of this RFQ, the Port and City are initiating Phase I development. This includes development in the Harbor District, connecting the Sweetwater District to the Harbor District and development on the Sweetwater, Harbor and Buffer parks.

Buffer Park 41.1 ac

Project background

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Prior to the release of the RFQ, the Port retained JLL to conduct a comprehensive update analysis on the feasibility of, and strategies for, initiating Phase I development on the CVB. The real estate and financial analysis includes the identification of market demand for various uses; infrastructure and vertical development cost estimates, feasibility of a convention hotel, financing strategies, and recommendations for development solicitations.

In parallel with the real estate and financial analysis, the Port retained HKS architects and CCI partners to develop conceptual design guidelines to frame overall site development. The real estate analysis and development of design guidelines were performed in collaboration with the Port, the City and other key stakeholders, including the Bayfront Cultural and Design Committee (BCDC).

The analysis concluded that with a strong hotel market in San Diego County, historically low interest rates and softening equity requirements, the Port is entering an optimal time to initiate developer solicitations for a convention destination resort hotel on parcel H-3, which is the cornerstone of the Harbor District and the catalyst for future development.

The CVB Master Plan was unanimously approved by the California Coastal Commission in 2012, providing a vision to redevelop the CVB waterfront into a world-class destination.

Looking North to downtown San Diego

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Site Overview


The Chula Vista Bayfront Site is located on southeast San Diego Bay in the jurisdiction of the City of Chula Vista. The site is bounded by the Sweetwater National Wildlife Reserve to the North; the Chula Vista Wildlife Preserve to the South; Interstate 5 to the east and San Diego Bay to the west.

Of the total site area of 535 acres, 199 acres are developable and 336 are dedicated to the public realm consisting of parks and natural open spaces. The site is segregated into three planning Districts which include the 130 acre Sweetwater District to the north; the 280 acre Harbor District in the center and 125 acre Otay District to the south.

The master plan provides for light development in the Sweetwater and Otay Districts with the greatest density provided for the Central Harbor District. Each District has certain unique characteristics, which are further detailed in this section but the overall planned developable areas contemplate a variety of uses that include:

• Hotels

• Retail

• Residential

• Commercial

• Recreational Vehicle (RV) Parks

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Phase One Infrastructure

Bayfront Masterplan

Phase 1 InfrastructureDevelopments contemplated in the first phase include:

• The convention destination resort hotel and related parking in the Harbor District on lot H-3

• The RV Park in the Sweetwater District on lot S-1

• The Living Coast Discovery Center Parking on lot SP-3

• Approximately 80,000 square feet of retail on Lot H-9 at the north end of the marina adjacent to the H-3 hotel/convention site

• Retail development on 9.5 acres on Lot H-18 by the freeway just south of H street

Infrastructure that will be constructed to support these development projects include:

• H Street from the freeway down to the waterfront

• E Street from the E Street ramp at I-5 in the Sweetwater District to the terminus of H Street in the Harbor District.

• F Street from E Street to the Living Coast Discovery Center parking area in the Sweetwater District

• Marina Parkway continuing north of H Street as an easement for the hotel on H-3 and connecting to E Street at the juncture of the Harbor Park and Signature Park

• 21-acre Signature Park and 41-acre Buffer Park in the Sweetwater District

• 22-acre Harbor Park surrounding the western portions of the H-3 hotel/convention site and E Street

The Port plans to complete the construction of the Phase 1 infrastructure prior to the opening of the H-3 convention destination resort hotel.

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Proposed Phase One Infrastructure

Chula Vista Bayfront - Proposed Phase IA - Infrastructure

ParksStreetsRV ParkRetail

Hotel/ConventionPacifica Residential

Fire Station


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HARBOR DISTRICT

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The waterfront site designated for a convention destination resort hotel that is the subject of this solicitation is located in the Harbor District on parcel H-3. This District is approximately 280 acres in size and includes a marina that encompasses approximately 59 acres of water. Future development of the District will provide a significant link from the City to the Bayfront at F, H and J streets. The Harbor District proposes the highest intensity development and encourages an active, vibrant mix of uses: a convention destination resort hotel and adjacent hotels; a bike path; parks and other open space areas; a continuous waterfront promenade; residential uses; mixed-use retail, office, and cultural space; and new roadways and infrastructure

Existing uses in the Harbor District include a boat yard, yacht club, marinas, restaurants, waterfront parks and supporting parking facilities.

Resort Hotel and Convention CenterThe development of a Resort hotel and convention center on parcel H-3 is the cornerstone of the devel-opment for the Harbor District. The 36.5-acre site is located prominently along the waterfront to the immediate north of the marina.

Public AmenitiesPublic amenities in the Harbor District will provide Parks / Plazas and Promenades, which include the existing Bayside Park that will be improved and connected to Signature Park. This park will be an attractive open space for the public that will incorporate hardscape to allow for more active uses and events. A minimum 25-foot wide pedestrian shoreline promenade is planned to hug the marina as well as the parks, connecting the pedestrian and bicycle greenbelt linkage to other subareas.

MarinaAn essential component of the CVBMP is the creation of an active and vibrant commercial harbor that encourages public access to the water and activity on the water. To support this, the existing marina will be reconfigured to accommodate about 700 boat slips and the perimeter of the marina positioned for phased development of up to 225,000 square feet of retail.

Freeway RetailParcel H-18, along the freeway and just East of the H-23, is being considered for the development of visitor-serving or maritime-related retail. This lot is 9.5 acres in size and lies at a very prominent gateway position at the intersection of Interstate 5 and H Street. The Port and City are committed to only allowing uses on this prominent site that will provide a direct amenity to the new hotel and residential development.

Pacifica Companies – Residential DevelopmentApproximately 35 acres of the 280 acres in the Harbor District are within the jurisdiction of the City of Chula Vista as the result of a land exchange agreement between the Port and the Pacifica Companies. That exchange agreement provides the Pacifica Companies with fee simple title to the land to develop up to 1,500 residential units, 15,000 square feet of ancillary retail, a 250-room hotel and up to 450,000 square feet of commercial office space. The parcels that belong to the Pacifica Companies and that are within the jurisdiction of the City will be built by the Pacifica Companies under a separate agreement with the City, but adhering to the planning guidelines described above.

Harbor District

Convention Destination Resort Hotel on H-3 parcel, 36.5 acres and 415,000 square feet of

convention space and related parking

Hotel on H-23 parcel, 24.6 acres

Harbor Retail on H-9, H-12, H-21 parcels, 18.0 acres up to 225,000 square feet

of retail, and marina support

Mixed Use Commercial / Retail on H-18 parcel, 9.5 acres, up to 100,000 square feet

Commercial Boating Center on H-1 parcel, 2.1 acres

Residential on HP-5, H-13, H-14 parcels, 22.9 acres, up to 1,500 residential units and

15,000 square feet of ancillary retail

Hotel / Office on H-15 parcel, 9.5 acres for a development of up to 250 rooms

and commercial / recreation / office development of up to 450,000 square feet

Fire Station on H-17 parcel, 1.8 acres, up to 5,000 square feet

Proposed development uses in the Harbor District:

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Harbor District

Harbor District Infrastructure Improvements

Roadway improvements include the extension of H Street that will connect the E Street extension in the Sweetwater and Harbor districts. The H Street extension will terminate at the waterfront and end with a pedestrian connection and a new pier. Modifications to Marina Parkway and new access roads are also proposed for the Harbor District.

Hotel / Convention Site ConditionsThe Site consists of approximately 36.5 acres of partially developed land located within the Chula Vista Bayfront, west of Marina Parkway, north of Chula Vista Harbor and approximately 450 feet east of San Diego Bay.

Current development at the site consists of a recreational vehicle (RV) park in the southwest quadrant (which is in the process of being relocated to another location within the CVB approximately half a mile to the Northeast), the foundations of three large commercial buildings with associated paved parking lot in the southeast quadrant, and a paved parking/storage lot in the northeast quadrant. The northwest quadrant is currently undeveloped.

Topographically, the site is relatively level with elevations across the site ranging from approximately eight feet to 12 feet above mean sea level. The site is located bayward of the historic mean high tide line, and as

such has approximately seven to 14 feet of undocumented hydraulic fill over bay deposits and alluvium. Groundwater is expected at approximately one to four feet above mean sea level. The site is not known to be located on any active or potentially active fault trace as defined by the California Division of Mines and Geology.

United Technologies Aerospace Systems Company (UTAS) has operated a manufac-turing facility adjacent to the H-3 site since the early 1940’s. The Port and UTAS are working in cooperation, as a part of a Relocation

Agreement between the Port, UTAS and the City of Chula Vista, to address environmental conditions resulting from discharges from UTAS’ operation. Furthermore, the Regional Water Quality control board has issued UTAS a Cleanup and Abatement order for these discharges. Groundwater contamination under the H-3 parcel is known to exist and other impacts may exist. The Port has conducted several studies on H-3 which can be found at: http://geotracker.waterboards.ca.gov/.

Harbor District proposed marina

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Lot No. Use Units Building Size

Maximum Height

HP-5, H-13 and H-14

Mixed UseResidential Development

22.9 acres

Residential 1,500 units 200 Feet

Ancillary Retail 15,000 sf 45 Feet

H-15 Hotel and Commercial 9.5 acres

Hotel 250 Keys 130 Feet

Commercial 450,000 sf 130 Feet

Current park in the Harbor District

Pacifica Companies development on H-13, H-14 and H-15

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SWEETWATER DISTRICT

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The Sweetwater District will be acquired by the Port as part of a land exchange agreement that is currently in escrow. It is approximately 130 acres in size. Land use designations include Open Space, Habitat Replacement, Wetlands, Parks, Commercial, Recreation and a Promenade.

Undeveloped land along the northern and western boundaries of the district will be established as a 400-foot wide buffer/setback area to preserve and protect the Sweetwater Marsh Wildlife Refuge from planned development and to provide a gradual transition from undeveloped native landscape to developed area.

The Sweetwater District proposes the lowest intensity development within the CVBMP and focuses on lower scale, environmentally sensitive and ecologically themed uses.

Of the 130 acres, 25 acres are available for development.

General Planning GuidesFrom west to east, the buffer/setback area consists of a 200-foot wide “no touch” zone, a 100-foot

“limited use” zone and a 100-foot wide “transitional use” zone.

In addition a 21-acre Signature Park is proposed with greenbelt linkages to park areas in the Harbor District to the south. The park is envisioned as a passive use meadow-type open space with amenities such as landscaping, lighting, drinking fountains, restrooms and picnic areas.

At the northern end of the district, planned development includes a proposed RV park, as well as a surface parking area and access road for the Living Coast Discovery Center. Adjacent to the RV Park is a low-intensity commercial/recreation/marine related office development of approximately 120,000 square feet with a maximum height of 45 feet.

Roadway improvements in this district include the extension of E Street into the Harbor District and rerouting of F Street to connect to the E Street extension. Each of the new roadways will include pedestrian and bicycle connections to the rest of the planning district.

Sweetwater District

Mixed-Use Commercial on S-3 parcel, 6.1 acres, 120,000 sf, maximum height 45 feet

RV Park, on S-1 parcel 18.7 acres

A 5.9-acre commercial parcel, S-4 which is designated for a 120,000 sf office development is no longer available

Proposed development uses in the Sweetwater District:

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OTAY DISTRICT

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Otay District

Commercial Use on O-1 parcel, 20 acres

RV Park on O-3A, O-3B parcels, 14.2 acres

Commercial Use on O-4 parcel, 18.7 acres

Proposed development uses in the Otay District:

The Otay District uses will be designed in consideration of the adjacent sensitive habitat areas. This area is currently characterized by commercial uses. The development of the Otay District is planned to occur in the next 10-15 years. Of the approximately 125 acres within the district, 53 acres are designated for development.

General Planning GuidesThe proposed development for the Otay District consists of a mix of uses, including commercial and low-cost visitor serving recreational uses. The extreme northern and southern parcels are designated for Commercial Business Park use.

Land use designations for this area include Open Space, Habitat Replacement, Wetlands, Commercial Business Park and Promenade.

A new 24-acre passive South Park is proposed and will include amenities such as pedestrian trails, bicycle paths, landscaping, berms and lighting picnic areas. The park is to be passive in nature, be low-impact and contain minimal structures. Additionally there will be an approximately 25-acre “no touch” buffer green area at the water’s edge.

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The anticipated solicitation release date is June 30, 2014. Qualified and interested development teams are requested to visit the Port’s bid solicitation website at

www.cvbayfront.com

to register and download all documents and background information related to the solicitation and qualifications submittal process. The website also provides all studies, design guidelines, and other relevant reports about the site and the CVBMP.

Access to Solicitation

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Bob Hunt +1 206 607 1754 [email protected] Hartmann +1 303 390 5249 [email protected]

Chris Hargett +1 619 686 6295 [email protected] Nishihira +1 619 686 6469 [email protected]

©2014 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

601 Union Street, Suite 1100, Seattle, Washington 98101 +1 206 607 1700 office +1 206 607 1701 fax jll.com/seattle

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