1. Goals
The "Seize The Future" Community Vision accepted by the City
Council in March of 2000 laid out an important set of principles that
the community agreed upon regarding our community as a whole and the
hillsides in particular. These principles include requiring a "Hillside
Comprehensive Plan" for the entire property (whether or not the
proposal is to develop the hillsides, conserve and restore them, or
a combination of the two) and focusing on the issue of maintaining and
restoring the natural systems in the hillsides. This second point is
especially important given the Vision's overall emphasis on Ventura
as an integrated ecosystem. These principles are contained on pages
96-99 of the Vision.
Based on the Vision and the other considerations now before the Comprehensive
Plan Advisory Committee, I believe Ventura's goals for the hillside
property should be very simple. They should be to:
1. Maximize the recreational opportunities that the hillside property
represents for the people of Ventura.
2. Ensure that the hillside property is managed in an ecologically
responsible manner that minimizes both risk and cost to the people
of Ventura.
3. Provide the landowners with a fair price for their land so they
will sell it willingly.
4. Ensure that sufficient workforce housing can be built elsewhere
in town without using the hillside property to do so.
2. The Deal
I believe that the deal proposed by Lloyd Properties in Measure A should
be viewed as a starting point for a community discussion about the hillside
property, and the Lloyds should now negotiate with the community. But
I have too many concerns to vote for it. My concerns about the deal
include the following:
First, we don't have a clear idea of what the true environmental, traffic,
and fiscal impact of the project really is.
The project will probably generate a net operating surplus in the
city's general fund each year, but I have major questions about capital
facilities. These questions have not been adequately answered in the
campaign. These concerns fall into several categories:
1. Fire Protection
The Open 80 Fiscal Analysis, prepared by reputable consultants for
Lloyd Properties, assumes the construction of a new fire station but
does not say where it will be located, how it will be paid for, and
how much of it the Lloyds will pay for. The city has a $4 million
capital plan for new and expanded fire facilities (the details have
not been made public yet) but only has $2 million in capital funds
to pay for them at this point.
2. Schools
The Lloyds have promised to pay the legally required amount of $7.5
million in impact fees for schools, but they have not offered to cover
the entire cost of additional school capacity created by their project
nor have they offered land for a school. As Ventura Unified's own
analysis revealed, almost all the schools affected by the Lloyd project
are currently operating at almost full capacity. According to two
analyses prepared by Ventura Citizens for Hillside Preservation based
on VUSD statistics, the actual cost of additional school facilities
for the Lloyd project students will be somewhere between $10 million
and $14 million. Although the school district is somewhat constrained
by state law, it is very unusual in a project of this size not to
offer something more than the legally required amount.
3. Traffic
The Lloyd project is likely to generate between 10,000 and 14,000
vehicle trips per day. Every single vehicle will either traverse or
cross Foothill Road. In its campaign rhetoric, Lloyd Properties has
simultaneously promised to maintain the rural character of Foothill
Road (Goal 2.3 of the Vision, page 98), while mitigating all traffic
impacts (which would almost certainly require major expansion of at
least parts of Foothill). The Open 80 Master Plan Act contains some
specific capital improvements along Foothill, but the overall question
of how to mitigate traffic cannot be answered until an EIR is done.
4. Open Space Endowment
The Lloyds have proposed a $5.5 million endowment (to be paid in increments
over time without adjusting for inflation) for the 3,000 acres of
open space they will preserve in perpetuity. This amount, which would
generate about $275,000 a year in operating funds to maintain the
open space, may or may not be enough to maintain hiking trails and
other recreational facilities and to restore and maintain the ecosystems
on the property. We don't know enough about the condition of the land
and the precise nature of the ecological restoration to know for sure.
Second, the high-end homes that would be constructed as part of
Open 80 would do nothing to assist the city in creating the workforce
housing (moderate-income rentals and ownership opportunities) that
is Ventura's most pressing housing need.
About 40% of Ventura's households make less than $44,000 per year
and at present cannot afford any ownership opportunities. Another
25% or so make between $44,000 and $66,000 and therefore can afford
ownership housing in the vicinity of $180,000-$300,000.
Our most pressing housing needs are for affordable rental units of
all kinds and ownership opportunities in the range of $200,000 and
$300,000.
The Lloyd project would provide only ownership opportunities at an
average price (according to the Open 80 Fiscal Analysis) of $550,000
In my view, this would only stimulate purchase by more out-commuters
who make higher incomes elsewhere. This is especially important because
teachers, public servants, and service workers are being priced out
of the Ventura market and a further influx of high-end residents or
commuters will only make this problem worse.
Third, in drafting Open 80, Lloyd Properties has included many "deal
points" favoring their project that should be negotiated but
cannot be in an initiative situation.
For example, Measure A guarantees the project 695 units of housing
between 2005 and 2010 (about a third of all housing allowed in the
city). This will take housing opportunities away from other developers,
from affordable projects, and so forth. I am also concerned about
their unilateral rewriting of our Hillside Management Program and
other city policies.
Fourth, Lloyd Properties has also taken the unprecedented step of
writing its own Development Agreement and placing it on the ballot.
A Development Agreement is a tool created by the state to serve as
a binding contract between a city and a developer. The idea is the
developer provides "more than their fair share" of infrastructure
improvements and in exchange receives a guaranteed right to move forward
with their project in exchange.
Although there is some dispute over the precise breadth of this Development
Agreement, I am reluctant to approve one that has not been negotiated
by city representatives. Like any contract, a Development Agreement
is supposed to be negotiated by both sides, so that each side can
be assured that its concerns will be dealt with. In the case of Open
80, this simply has not happened.
As Lloyd Properties points out, the Development Agreement does have
the benefit of locking in the houses-for-open-space deal for both
sides. But any number of other concerns typically dealt with in a
Development Agreement -- including a financial plan for the construction
of all capital facilities and public infrastructure required because
of the construction of a project -- are simply not dealt with in the
Open 80 Development Agreement. To the extent that they are dealt with,
we are required to either accept or reject Lloyd Properties proposal,
even though we know little about the true impact.
3. The Process
Perhaps my greatest concern is the process by which Measure A wound
up on the ballot -- with no independent review by the city or other
any entity not associated with the landowner. In this regard, I am disappointed
not just with the landowner but with our City Council as well. My concerns
include the following:
First, Measure A represents an end-run around the Comprehensive
Plan revision process that is moving forward right now under the direction
of the City Council.
In 1998, the City Council initiated a Comprehensive Plan revision
by initiating the "Seize The Future" visioning effort, which
was designed to create a "big-picture vision" for the future
of the city that the Comprehensive Plan would build on. To its credit,
Lloyd Properties participated in the vision process and then teamed
with other landowners on a master plan for all 6,000 acres of hillside
property as the vision called for.
Subsequently, however, Walker-Hearne split off from the property
owner group and Lloyd Properties moved forward with a plan just for
3,800 acres. This is not in the spirit of the vision, and in particular
it is a violation of Vision Strategy P2.1 (page 97). Lloyd Properties
could have continued to try to work through the Comprehensive Plan
revision process to achieve their goals, and then gone to the ballot
after the community had reached consensus about what to do with the
hillside property. But the firm chose instead to write the Open 80
Master Plan Act and the accompanying Development Agreement and place
them on the ballot via initiative immediately.
Admittedly, the Comprehensive Plan revision process has been frustrating
and slow. I understand why Lloyd Properties would like a quick decision
from the voters. But I do not understand why the City Council has
not discouraged Lloyd Properties from going straight to the ballot.
I believe the council should have taken whatever steps are necessary
to keep the discussion of their project inside the bounds of the Comprehensive
Plan revision, which the council itself initiated and which is still
in progress.
So now we are confronted with a complicated rewrite of many of our
planning policies and codes -- a rewrite done not by our own planners
or lawyers and reviewed by our own elected officials, but, rather,
a rewrite prepared by Lloyd Properties' own very capable lawyers without
public review and, obviously, for the benefit of the landowners, not
the residents. I think that this is a bad way to make important decisions
for our community. In many ways, a vote for Measure A is a vote to
transfer power not to the people, but to landowners and their lawyers
who operate in private. I do not think we should set this precedent,
especially with the Walker-Hearne landowners waiting in the wings.
Second, I am also disappointed in both Lloyd Properties and the
City Council for not doing more to inform the public.
A ballot initiative is not subject to the same rules of review as
a regular development proposal. It is not subject to environmental
review and no analysis of the project is required. Nevertheless, both
sides could have taken steps. Lloyd Properties could have released
information about the property and the project's prospective impacts
-- information the firm has obviously gathered in the course of shaping
the Open 80 Master Plan Act. The City Council could have ordered an
analysis of the project to assist voters in understanding it. Indeed,
the staff made a recommendation to do an analysis, but the council
voted against doing so. The decision earlier this week to review a
fiscal analysis commissioned by the Lloyds does not, unfortunately,
leave the city staff with much time to conduct a meaningful review.
I cannot emphasize enough how disappointed I am in the council in
refusing to conduct an analysis. Because of Measure P, the voters
have taken the place of the City Council as the decision-makers in
this case -- a course of action that is permissible under California's
initiative and referendum law. But the City Council refused to make
available to the voters the same information they would have demanded
for themselves if they were making the final decision.
As a result of all this, we are an extremely poorly informed set
of decision-makers. The property owners have released only three documents:
The Open 80 Master Plan (which describes the project, depicts how
the project might look, and explains some of Lloyd Properties' financial
promises), the Open 80 Master Plan Act (the 165-page text of the initiative),
and a fiscal analysis that was reviewed by city staff but never debated
publicly. (This afternoon (10/22), the property owners also released
parts of their traffic analysis, but only after much prodding by reporters.)
The city has released only one document: the City Attorney's brief
analysis of the legalistic aspects of the initiative. The only other
analysis by a public agency is a five-slide powerpoint presentation,
with no supporting staff report, presented by the staff of Ventura
Unified School District at the October 8 school board meeting.
I have worked very hard with Ventura Citizens for Hillside Protection
and others in Ventura to try to understand and analyze this project
and help to convey this information to voters. But it has been an
uphill battle even for knowledgeable citizens to gather enough information
to cast an informed vote. I cannot imagine how anyone could feel they
know enough about this project, the way it changes city policies,
and the impact it will have on our community to vote in favor of it.
4. The Implementation Challenge
If Measure A passes, I believe that the people of Ventura and the City
Council will face a very difficult struggle in implementing it in a
way that provides maximum benefit to the city. I have several concerns.
First, although Lloyd
Properties representatives have repeatedly stated that the company will
mitigate all impacts, I am not convinced that it will be either politically
possible or economically feasible to do so.
Impacts and potential mitigations will be identified by the Environmental
Impact Report that will be prepared if Measure A passes. But it is
important to remember that under the California Environmental Quality
Act, mitigation measures must be "feasible," meaning they
must not be so financially burdensome that the project cannot be constructed
as a result.
Typically, in preparing an EIR, a city would consider alternatives
to the project being proposed, including alternative project sizes,
to ensure a good "fit" between the projects, its impacts,
and its economically feasible mitigations. But this will not happen
in the case of the Open 80 Master Plan. The city will be able to consider
only one project -- the 1,390-home project contained in Measure A
-- no matter what its impact or how economically feasible its mitigation.
It is also important to remember that, under CEQA, a project can
still move forward even if all the significant impacts are not fully
mitigated. The City Council can do this by adopting a "Statement
of Overriding Considerations" concluding that the benefits of
the project are so great that they outweigh the significant impacts
that have not been mitigated. In fact, the Open 80 Master Plan Act
makes a point of restating this power very clearly -- even to the
point of stating that the people of Ventura "find" that
a Statement of Overriding Considerations should be seriously considered,
no matter what the impacts are.
It is certainly possible to imagine a scenario in which Lloyd Properties
claims that full mitigation would be so expensive that the project
would no longer be feasible; and then the City Council adopts a Statement
of Overriding Considerations, claiming that the passage of Measure
A essentially binds them to do so.
Second, I am concerned that the passage of Measure A will set up
a post-election negotiation with Lloyd Properties and the city over
the true cost and value of capital improvements that Lloyd Properties
plans to construct -- a negotiation that I believe the city may be
ill-equipped to take on.
Lloyd Properties has stated that it will pay $14.5 million in required
mitigation fees to the city. Half of that money would go toward traffic
mitigation, while the remainder would be divided among water and sewer
fees, park fees, and fees for general capital improvements. These
fees would be used for projects that benefit the entire city but are
necessitated in part by the construction of the Lloyd project. By
contrast, Lloyd would be expected to pay for or build all capital
improvements that are required by the construction of its project,
and benefit its project only.
However, in the Open 80 Master Plan, Lloyd Properties has also laid
out a very specific list of improvements the firm is willing to make
(including, for example, $250,000 to reconfigure the Hall Canyon-Poli-Seaward
intersection) that it claims to be "non-nexus offsite improvements"
. These properties are technically of benefit to the public because
they are associated with parks the Lloyds would donate -- meaning
Lloyd Properties clearly regards these improvements as projects of
citywide benefit, not projects required only to serve its project.
Furthermore, the Open 80 Master Plan Act specifically states that
the city will give Lloyd Properties credit against the impact fees
for public improvements that are not directly related to the project.
Thus, my concern is that Measure A sets up a situation where Lloyd
Properties will construct many public improvements that are necessary
because of its project (such as the Hall Canyon realignment) and then
seek to get credit against the impact fees for these projects because
they benefit the entire city. If the city is not extremely savvy in
negotiating this agreement, Lloyd Properties may get more than its
share of credit against impact fees, and it will be Lloyd Properties
-- rather than the city -- that will determine which projects will
be constructed with the impact fees.
In my view, this undermines the whole reason to have a Development
Agreement in the first place. Under Development Agreements, developers
are permitted to pay for "more than their fair share" of
public improvements (an exception to the general rule) in exchange
for a "vested right" to construct their projects. In a typical
Development Agreement, the developer and the city would agree up-front
on the citywide capital improvements that the developer will pay for.
In this case, we must negotiate all this after the Development Agreement
is approved by the voters.
Third, the Open 80 Master Plan will force the city into a series
of hasty revisions of the city's growth management program outside
the context of the Comprehensive Plan process.
Under the city's current Comprehensive Plan, the city has a 2010
population limit of 115,874, which is then translated in a specific
number of housing units available. Those units are allocated to developers
through the Residential Growth Management Plan process.
The Open 80 Master Plan Act guarantees the Lloyd Project 695 housing
allocations between 2005 and 2010 (and another 695 between 2010 and
2015), but it does not increase the 2010 population limit.
At present, there are 3,192 units available between 2002 and 2010,
an average of 399 per year. Thus, under the current system, Lloyd
Properties will be entitled to 35% of all housing units (695 out of
1,995) between 2005 and 2010. To accommodate this guarantee, the City
Council will have to choose between two politically unpopular decisions,
probably during 2003:
1. Take units away from affordable housing and other purposes, or
2. Increase the 2010 population limit.
I think it is important to note that the Open 80 Master Plan Act
does not propose how to make these unpopular decisions but, rather,
sets up a situation where the City Council must make them instead.
Furthermore, the city currently has no policies at all regarding
housing availability and growth management beyond 2010. That is part
of the job of the Comprehensive Plan revision.
I believe that one of our community's most difficult challenges in
revising the Comprehensive Plan is to manage residential growth between
2010 and 2020. According to the city staff, our community has only
300 acres of vacant land available for residential growth. What additional
land should be used for residential growth (if any) and what type
of housing it should accommodate are questions that the entire community
should debate broadly in the context of the Comprehensive Plan revision
process.
The Open 80 Master Plan Act essentially boxes this process in by
specifying that whatever the city's policies are, 695 units must be
allocated to the Lloyd project between 2010 and 2015. Thus, Open 80
not only circumvents the current Comp Plan revision process, it undercuts
that processes chances to reach consensus.
Fourth, I do not believe the City Council will have as much discretion
in approving the actual neighborhoods as Lloyd Properties claims.
The project is divided into six neighborhoods, each of which will
be processed individually by the city through the normal planning
process. Lloyd Properties has made much of the fact that the city
will have control over the specific development standards in these
neighborhoods and that the city can, in theory, deny these subdivisions
one by one.
I agree that the city will have approval power over the specific
development standards and that denial of any and all neighborhoods
is theoretically possible. But there are consequences. First, the
open space will be turned over in pieces only when the neighborhoods
are approved. It's true that if no neighborhoods are approved, the
open space will be turned over at the end of 20 years. But then the
city will get just the land, not the $5.5 million endowment to manage
it.
Lloyd Properties has also made much of the fact that the Development
Agreement states that, unlike all other development agreements I have
ever heard of, it does not give the firm the irrevocable right to
build the entire project no matter what. This may be technically true
based on a narrow reading of the Development Agreement. But it is
important to remember that the entire reason the development agreement
law was passed was precisely to do what this Development Agreement
claims not to do -- that is, give developers the irrevocable right
to build. I have a hard time believing that, several years from now,
if a neighborhood is turned down by the city, Lloyd or a subsequent
developer will refrain from filing a lawsuit based on a different
legal interpretation than what Lloyd is claiming now.
I also believe it is extremely unlikely that a future City Council
will choose to "undo" the Measure A deal by denying one
or more neighborhoods. I think it is far more likely that they will
brush aside concerns about the neighborhoods by stating that they
are simply following the voters' will in approving them. It is also
true that the most important approval process, historically, has been
the allocation of housing units under our Residential Growth Management
Program. No project that has received allocations has ever been denied
later permits. As I said before, Measure A allocates to the Lloyd
project all 1,390 housing units they need to build the project.