Title
RESOLUTION NO. 2017-198 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING STAFF TO SUBMIT REQUIRED DOCUMENTATION TO THE COUNTY OF SAN DIEGO TO INITIATE THE ADOPTION PROCESS OF AN URBAN AGRICULTURE INCENTIVE ZONE
Body
RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
Body
SUMMARY
The State of California passed AB 551 in 2013 to allow jurisdictions to create Urban Agriculture Incentive Zones (UAIZ). UAIZ’s provide a tax incentive (by reducing property taxes) for landowners to use their vacant or blighted property for agricultural use for a minimum of five years. This is an effort to use otherwise vacant land, while creating an added benefit for the community. Tonight’s action would direct staff to initiate the zone adoption process with the County of San Diego and return for final adoption to the City Council in 2018.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Body
Environmental Determination
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
BOARD/COMMISSION RECOMMENDATION
On October 12, 2017, the Healthy Chula Vista Advisory Commission provided an advisory recommendation that Council approve (7-0) staff’s submittal of documentation to initiate the adoption process.
DISCUSSION
In keeping with the Healthy Community goal of the Strategic Plan, on January 5, 2016, the first Healthy Chula Vista Action Plan was adopted, providing a set of strategies to review, create and evaluate policies and programs within the City and to develop key community partnerships to promote wellness within our community. A key component of the plan included residents’ access to healthy food options.
Consistent with the adopted Healthy Chula Vista Action Plan and its strategies, staff is recommending the adoption of an Urban Agriculture Incentive Zone (UAIZ) within Chula Vista as allowed by Assembly Bill 551 passed in 2013 and recently amended in September 2017 (to extend the time period to create UAIZ’s).
AB551 Overview
AB 551 allows jurisdictions to identify and adopt an Urban Agriculture Incentive Zone (UAIZ), an incentive for landowners to enter into contract to use their otherwise “unused” property for agricultural use for a minimum of five years in exchange for a reduction in property tax. Rather than paying the standard applicable property tax rate (e.g. commercial tax rate for a commercial property), participating properties will be assessed at the annual average per acre value of irrigated cropland. For 2014, this amount was $12,500 per acre, or $0.29 per square foot. If this is less than the current assessed value of the land, then the owner will pay lower property taxes for the period of the contract. Interested landowners must enter into a contract prior to January 1, 2029, the sunset date of the State law.
AB551 identifies eligible properties for such contracts as parcels:
• Between 0.1 acre and 3 acres in size (4,560 and 130,680 square feet);
• All the property must be used for commercial or noncommercial agricultural use;
• Free of any dwellings and only have physical structures that support the agricultural use; and,
• Permitted to have an agricultural use.
County of San Diego Requirements
The first step in the adoption of a UAIZ is approval by the County of San Diego, in its role as the tax assessor and collector. The County has developed a process to evaluate and approve the UAIZ designation, as outlined below:
1. Identify eligible parcels within the proposed UAIZ boundary.
2. Map out the proposed UAIZ boundary.
3. Provide a copy of the proposed ordinance.
4. Provide the following UAIZ program information:
a. Scope of program
b. Methodology used to determine blighted/vacant property
c. Program (total) fiscal impact
d. Copy of the proposed regulations to implement, enforce, administer said program
e. Sample of proposed contract
5. Conduct a fiscal impact analysis for all affected taxing entities, including total amount of tax revenue reduction, through the county.
6. Send a written notice to all taxing entities who will be affected by establishing the UAIZ and its tax break, including the date/time of the Board of Supervisors meeting when the resolution will be approved.
Staff would return to City Council for final approval of the UAIZ once the County Board of Supervisors has reviewed and approved the documentation and process outlined above. Such actions for Council’s future consideration would include an ordinance and any additional zoning changes that would enable the implementation of the UAIZ, along with a full fiscal impact analysis. It is anticipated that staff will bring back these items to the Planning Commission and then City Council in early to mid-2018.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This item supports Section 3.1.1 - Implement policies and programs that support a healthy community, by providing healthier options.
CURRENT YEAR FISCAL IMPACT
Staff costs associated with the preparation of this staff report and for the UAIZ adoption process are offset by grant funds through the Centers for Disease Control’s Racial and Ethnic Approaches to Community Health (REACH Chula Vista).
ONGOING FISCAL IMPACT
Potential ongoing impacts will be assessed through the County review process and brought forward to City Council for consideration in 2018.
ATTACHMENTS
None.
Staff Contact: Stacey Kurz, Development Services Department