Imperial Avenue Terminal Transit-Oriented Development Project- San Diego Foundation Collaboration Process

Summary

SCH Number
2024071101
Public Agency
San Diego Metropolitan Transit
Document Title
Imperial Avenue Terminal Transit-Oriented Development Project- San Diego Foundation Collaboration Process
Document Type
NOE - Notice of Exemption
Received
Posted
7/29/2024
Document Description
On July 18, 2024, the San Diego Metropolitan Transit System (“MTS”) authorized the Chief Executive Officer to proceed with negotiations with the San Diego Foundation and its selected lead developer, Cypress Equity Investments (CEI), for a potential TOD project at 1313 National Avenue and 1344 National Avenue site (IMT TOD Project). On April 20, 2023, the Board approved an Exclusive Negotiation Agreement (ENA) with the San Diego Foundation to negotiate terms for a proposed joint development project collaboration on property owned by MTS adjacent to its 12th & Imperial Transit Center – at 1313 National Ave and 1344 National Ave (National Ave Property). The ENA allowed MTS to negotiate the terms of a Collaboration Agreement that would provide a framework with the San Diego Foundation to conduct a competitive solicitation process to identify a developer or developers to enter into a joint venture with the San Diego Foundation to design, permit, and/or construct a joint development project on the National Ave Property. On June 15, 2023, the Board approved a Collaboration Agreement with the San Diego Foundation. This agreement set the Goals and Policy Objectives that both MTS and the San Diego Foundation were seeking to achieve with this IMT Joint Development Project, and identified the process that the San Diego Foundation, with MTS participation, would follow to identify and select a lead developer and prepare a development proposal for presentation to the MTS Board for approval. The Goals and Policy Objectives, as set forth in Recital N of the Collaboration Agreement, were intentionally broad so that the San Diego Foundation and MTS could engage in an interactive process with potential developers and with community stakeholders to identify the most effective and beneficial project that can be completed. These goals and policies include, but are not limited to, maximining affordable and workforce housing and multi-family residential rental units and completing Transit Center improvements to centralize existing transit facilities. The San Diego Foundation has completed its initial due diligence and its developer selection process, which included a Developer Competition through the issuance of a Request for Qualifications. The San Diego Foundation selected CEI as the lead developer for the IMT TOD Project concept after conducting an extensive evaluation process. CEI and the San Diego Foundation have developed a project concept that contains two components, which could be implemented independently, to be known as the North Project and the South Project. The North Project will be delivered with CEI as the lead developer and will be the first to commence construction. It is anticipated to comprise approximately 160 units (or approximately 280 bedrooms), all of which will be affordable to individuals/families earning 40% to 80% Area Median Income (AMI). The concept for this project includes one-, two- and three-bedroom units along with ground floor commercial, community, and open space uses. The North Project is anticipated to be delivered by December 2027. The South Project will be undertaken when market conditions are supportive and target the delivery of 200 – 400 workforce and market rate units. The developer of this project will be selected by San Diego Foundation and could be CEI or another developer(s). The North and South Projects can be conducted independently and on separate timeframes. This conceptual program is anticipated to help each of MTS and the San Diego Foundation realize its vision for the IMT Property by facilitating the near term start of much needed affordable housing, enabling integration of these projects with the Transit Center Expansion, all while preserving the flexibility to be responsive to market conditions and realize greater density and a broader income mix on the site.

Contact Information

Name
Kena M. Teon
Agency Name
San Diego Metropolitan Transit System
Job Title
Grants Administrator
Contact Types
Lead/Public Agency / Project Applicant

Location

Cities
San Diego
Counties
San Diego
Regions
Southern California
Cross Streets
1313 National Avenue and 1344 National Avenue
Zip
92101
Jobs
100
Other Location Info
The potential Imperial Avenue Terminal Transit-Oriented Development Project would be located at 1313 National Avenue and 1344 National Avenue, San Diego.
Other Information
A map of the potential project location is attached.

Notice of Exemption

Exempt Status
Other
Type, Section or Code
Pub. Resources Code, § 21065; 14 Cal. Code Regs., § 15378, subd. (a) and 14 Cal. Code Regs., § 15061, subd. (b)(3) (com
Reasons for Exemption
14 Cal. Code Regs., § 15061, subd. (b)(3) (common sense exemption – no possibility of significant effect on environment) Authorization to continue negotiations does not constitute a “project” subject to environmental review under CEQA because it does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. (Pub. Resources Code, § 21065; 14 Cal. Code Regs., § 15378, subd. (a).) Further, authorization of continued negotiations under the Collaboration Agreement is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. There is no possibility authorization of negotiations may have a significant effect on the environment, and therefore it is not subject to CEQA. (14 Cal. Code Regs., 15061, subd. (b)(3).) The Collaboration Agreement did not and does not commit MTS to any potential or concrete development proposal, which would be subject to compliance with CEQA, as required, for any future project consideration or approval. Moreover, the details of the IMT TOD Project concept are too speculative at this juncture to enable meaningful CEQA review.
County Clerk
San Diego

Attachments

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