On June 17 representatives of the city of Chula Vista held a walking tour for potential developers of six city-owned parking lots that are going on the market. The tour started at city hall on F Street and progressed down Church Street to Madrona Street. Mayor Mary Salas, Kelly Broughton, Director of Development Services, and Craig Ruiz, Principal Economic Development Specialist represented the city on the tour.

The lots being sold, for the most part, run parallel to Third Avenue and provide parking for people who shop, dine, or work in the downtown area. The city hopes to find buyers who have experience with small infill residential developments.

By July 10, developers and investors will be making bids that must at least equal the appraised value of the parking lots. The residential developments must conform to the Urban Core Specific plan and the sites will be sold “as is”; the City will not remediate.

During the walking tour, some of the potential buyers expressed concern about parking because the lots for sale were semi-filled with vehicles. One potential investor asked, “Would the developer have to provide parking for the parking spaces that are being displaced?” The answer was no. Kelly Broughton, Director of Development Services, said the developer would only need to provide parking for the tenants of the new developments.

In a June 16 interview, Eric Crockett, Interim Director of Development Services, explained that these lots are being sold as a result of Governor Jerry Brown’s decision in 2011 to do away with the Redevelopment agency. These lots are owned by the Redevelopment Agency, and the money from the sale will go to the state and then ultimately return to the county and the schools.

Crocket said, “The city owns 1200 spots on Third Avenue. We’re selling about 120 spots. Ninety percent of the parking will remain available.”

When asked if only developers or investors could bid on the land, Crocket responded, “In order that we can get some productive use of the property, we’ve put in some criteria. You have to be someone who can build with a vision of the Urban Core Specific Plans, so we’re talking about 3-story residential buildings, and you have to have a record of doing that type of development.

“We needed some selective criteria, what the state wants is just the appraised value, and we weren’t trying to do a bidding war. It’s important that we get a nice development that can benefit Third Avenue.”

Crocket said these developments are good for the city because “we’ll get more rooftops so people will start living downtown Third Avenue– and taxing entities will also continue to generate a revenue stream off that investment.”

When asked if this will create a parking deficit Crocket said, “Some business owners are concerned that they’re losing the parking spaces for employees. We’re talking with TAVA [Third Avenue Village Association] and business owners.

“A cultural change will be needed… The city may have to invest in rehabilitating the free parking garage on F Street. The parking garage isn’t a very attractive asset because of the homeless that are there, and it hasn’t been cleaned or updated in 30 years.”

Crocket also said the city will use the Parking District Enterprise Fund to buy three parcels on F Street and Third Avenue. He feels confident the other properties will be sold because so many people, around 30, signed up for the walking tour.

Several business owners along Third Avenue said they were unaware the lots were being sold and would not provide a comment until they knew the details.

The location of the sites for sale are: 201 Third Avenue, Church between Davidson and E Street, 281 and 287 Church Avenue, 281-287 Landis Avenue, 288 Center Street and 336, 338, 342 Church Avenue, and the north corner of Church Street and Madrona Street.