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HomeMy WebLinkAboutAgenda - Agenda Packets - Regular Meeting 2/16/2006REDEVELOPMENT OPERATIONS MANAGER STEVEN PASAROW AMENDED AGEND A REGULAR MEETING OF THE SAN jACNTC C[TY COUNCIL FEBRUARY 16, 2006, 7:00 p. San Jacinto Unified School District Board Room 2045 South San Jacinto Avenue, San Jacinto, California ORGANIZATION Call to Order Roll Call Invocation 1.4 Pledge of Allegiance Special F7esentations 1.5.1 Business Spotlight of the Month / Bedrock Ready Mix / Economic Development Specialist 1.5.2 Recognition of Public Works Employees Alex Garcia and Daniel Astorga for acting quickly to save property and people from a serious fire on December 27, 2005 PUBLIC COMMENTS: Now is the time for the public to address the Council on any subject within the jurisdiction of the City Council not listed on the agenda. A limitation of three (3) minutes shall be set for each person desiring to address the City Council. CONSENT CALENDAR The matters listed under Consent Calendar are considered routine and will be enacted by one motion by City Council Members in the form listed. There will be no separate discussion on these items prior to the motion unless members of the City Council, staff or the public requests a specified item be removed and/or discussed. If an item is pulled, it will be heard at the end of number '5. Staff Reports.' 3.1 Warrants at 02/16106 / Approve / Finance Director City Council Agenda February 16, 2006 Page 2 of 5 3.2 June 30, 2004 Special Meeting Minutes / Approve / City Clerk 3.3 Treasurer Report at September 2005 / Receive and Fe / Finan Director 3.4 Treasurer's Report at October 2005 / Receive and Fiie / Finance Director Treasurer's Report at November 2005 / Receive and File / Finance Director Notice of Completion — Lake Park Well and Main Approve / City Engineer eet 'Waterline / 3.7 Idyllwild Drive Sidewalks — Project No. 04-076 / Approve and Adopt plans and specification and authorize City Clerk to proceed with bid advertisement subject to Riverside County EDI\ approval / City Engineer Storm Drain Easement — Accept 20' Storm Drain Easement from Thomas E Mitchell, William B Mitchell, J Men McKnight and Kay M McKnight I Approve acceptance of storm drain easement between Ramona Expressway and Ramona Boulevard east of Potter Road subject to satisfactory completion of storm drain improvements / City Engineer 3.9 Client Conflict Waiver Letter re: BB&K representation RCA (Riverside County Regional Conservation Authority, a Joint Powers Authority) / Approve and Authorize City Manager to execute waiver letter / City Attorney 3.10 Resolution No. IA Resolution objecting to the public sale of tax- defaulted property and agreeing to the purchase of said property / Approve and Adopt / City Attorney and Finance Director 3.11 Ordinance No. 06-03 / An ordinance establishing procedure for the processing of vesting tentative maps / Approve introduction and first reading of Ordinance No. 06-03 and by further motion read by title only: An Ordinance of the City of San Jacinto, California, Ame ding Section 16.14.080, of the San Jacinto Municipal Code concerning Vesting Tentative Maps / City Attorney and Community Development Director 3.12 Conditional Use Permit 12-05 — Applicant: Russell Rumansoff dba Herron & Rumansoff Architects, Inc, 530 S Johns Place, Hemet, CA 92543 / Ratify Planning Commission's decision based on the Findings City Council Agenda February 16, 2006 Page 3 of 5 of Fact and Conditions of Approval / Community Development Director PUBLIC HEARING:- 4.1 Resolution No. IA Resolution certifying the results of an election and adding property commonly known as APN No. 431-212-012) Community Facilities District (CFD) No. 2003-1 — Annexation No. 26 for police and fire services / Approve and Adopt / Special Tax Consultant and City Attorney Ordinance No. 06-04 / Zoning Ordinance Amendment regarding Floor Area Ration / Approve introduction and first reading of Ordinance 06-04 and by further motion read by title only: An Ordinance of the City Council of the City of Sdn Jacinto, California, Approving a Zone Text Amendment to Modify the Text. of Article 4.04 Pertaining to Residential Development Standards of the San Jacinto Zoning Ordinance, Ordinance 340 / Community Development Director 4.3 Resolution No. / A Resolution Annexing. Territory aka KB Homes Coastal Inc — Tract Nos. 30033, 30034, 30035 : 30036 and 30084 into Assessment District No. 2003-01 (AD 2003-1) Annexation No. 17 into Road, Street and Highway Maintenance AD 2003-1; and confirming the levy of assessments therein / Approve and Adopt / Special Tax Consultant and City Attorney STAFF REPORTS At the end of the scheduled City Department items, anyone wishing to discuss a consent calendar item should come forward upon invitation of the Mayor: state their name, address, and the consent calendar item number pulled. Speakers should limit comments to three (3) minutes. 5.1 WFRCOG — TUMF presentation / Rick Bishop, Executive Director Rick Bishop and Ruthann Taylor Berger presenters 5.2 Market Assessment and Economic Development Strategies for the Ramona Expressway / Sanderson Corridor "Gateway Area" / Receive and File; Direct staff to solicit proposals for the preparation of a specific plan to identify lands uses, infrastructure, design and financing; Use said document as a guide for the development of a specific plan for said area; Direct staff to identify a funding mechanism to finance the preparation of the specific plan and include the stakeholders during the process of preparing the specific plan / City Council Agenda February 16, 2006 Pau 4 of 5 Community Development Director Consultant Local Appointments List / 1) Consider Mayor's selection to Local Appointments List with confirmation by Council for the outside agencies and 2) Consider Mayor's selection of Standing Committees, and absent unanimous consent, approve by majority vote the desired slate / City Clerk Resolution No. / A Resolution to establish a new local aci e, money market account / City Treasurer and Finance Director Legislative Update / Approve fetter for distribution to the City's legislative caucuses at the state and federal levels regarding telecommunications / Authorize Mayor to execute letter / City Manager 5.6 Mount San Jacinto Community College Regional Learning Center / Approve letter of support and Authorize City Manager to execute letter I City Manager 5.7 Request to use temporary sewage holding tank T22665 / Deny Buie Communities request / City Engineer 5.8 FY 2005-06 Mid-year Budget Adjustments and / Approve and Appropriate changes of $,1,498,369 in Expenditures and estimated Revenues of $1,139,715 / Finance Director 5.9 Valley Economic Development Council Planning Retreat / Jeff Ballinger, Chairman of the Board MAYOR / COUNCIL MEMBER REPORTS / DISCUSSIONS 6.1 Agency and/or Subcommittee Reports / Receive and File / City Clerk City Council Agenda February 16, 2006 Page 5 of 5 CLOSED SESSION CONFERENCE WiTH LEGAL COUNSEL-ANTiCiFA Significant exposure to litigation pursuant to subdivision 54956.9: One (1) or more oases GATION Section ADJOURNMENT If you challenge any action of the City Council in court, you may be limited to only those issues you or someone else raised at the public hearing described in this notice, or in IA n cormspohdence delivered to the City Council (c/o the City Clerk) at. or prior to. the public hearing, CHALLENGE TO LAND USE DECISIONS: Any person seeking to challenge E decision regarding land use made by the City Council as a result of a proceeding in which by law a hearing is required to be given, evidence is required to be taken, and the discretion in the determination of facts is vested in the City Council, shall be required to commence that action 90 days following the date on which the decision of the City Council becomes final as provided in Code of Civil Procedure Section 1094.6. Please refer to Code of Civil Procedure Section 1094.6 to determine how to calculate when a decision becomes final. It is the intention of the City of San Jacinto to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please contact City Hall at (951) 537-6358, at least 48 hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible. I, Dorothy L. Chouinard, City Cferkof the City of San Jacinto, do hereby certi that I caused to be posted the foregoing agenda this RP-, clay of I:e6rualy„ 2006 as required hy taw. Dorothy L. Chouinard, City Cfrrk t<vrr MINUTES REGULAR MEETING of the SAN JACINTO REDEVELOPMENT AGENCY of the CITY OF SAN JACINTO FEBRUARY 16, 2006, 7 .20 p.m. and 10:09 p.m. 5.1 was opened to run concurrently with the Regular City Council Meeting San Jacinto Unified School District Board Room 2045 South San Jacinto Avenue, San Jacinto, California ORGANIZATION 1.1 Call to Order Chairman Dale Stubblefield called the Regular Meeting of the RDA to order at 7:20 p.m. to hear 5.1 concurrently with the Regular Meeting of the City Council and recessed the RDA meeting following 5.1. 1.2 Roll Call Present: Jim Ayres, Chris Carlson Buydos, Robert Ritchie, Dale Stubblefield Absent None PUBLIC COMMENTS Chairman Stubblefield reopened the meeting at 10:09 p.m. 3. CONSENT CALENDAR 3.1 June 30, 2004 Regular Meeting Minutes / Approve / City Clerk 3 2 November 4, 2004 Special Meeting Minutes / Approve / City Clerk 3.3 February 2, 2006 Regular Meeting Minutes / Approve / City Clerk M/S/C (Robert Ritchie / Ken Shaw) moved to approve 3.1 and 3.3 as presented. Motion carried 4/0 with Chairman Stubblefield abstaining (absent). Ayes: Ayres, Buydos, Ritchie, Shaw Nays: None Absent: None Abstain: Stubblefield Redevelopment Agency Minutes February 16, 2006 Page 2 of 3 M/SiC Robert Ritchie I Ken Shaw moved to approve 3.2 as presented. Motion carried 5/0. Ayes: Nays: Absent: Abstain: Ayres, Buydos, Ritchie, Shaw, Stubblefield None None None PUBLIC HEARING None CITY DEPARTMENTS 5.1 Market Assessment and Economic Development Strategies for the Ramona Expressway / Sanderson Gateway Area / Receive and File; Direct staff to solicit proposals for the preparation of a specific plan to identify lands uses, infrastructure, design and financing; Use said document as a guide for the development of a specific plan for said area; Direct staff to identify a funding mechanism to finance the preparation of the specific plan and include the stakeholders during the process of preparing the specific plan / Community Development Director and Consultant 5.2 FY 2005-06 RDA Mid—Year Budget Adjustments / Approve and Appropriate $54,165 in Expenditures / Finance Director M/S/C (Buydos / Ayres) moved to approve FY 2005-06 Mid-Year Budget Adjustments including appropriation of $54, 165 / Motion carried 5/0. Ayes: Nays: Absent: Abstain: Ayres, Buydos, Ritchie, Shaw, Stubblefield None None None CHAIRPERSON / MEMBER REPORTS / DISCUSSIONS None OPEN SESSION ANNOUNCEMENTS CLOSED SESSION None Redevelopment Agency Minutes February 16, 2006 Page 3 of 3 8. ADJOURNMENT With no further business coming before the Redevelopment Agency, Chairman Stubblefield adjourned the meeting at 10:10 p.m. City of San Jacinto By Dale Stubblefield, Chairman ATTEST: Dorothy L. Chouinard, Agency Secretary Approved as read Approved as amended AGENDA !TEM February 16, 2006 Redevelopment Agency Board of Directors FROM: Tim Hults, Community Development Director SUBJECT: Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson, Corridor Gateway Area RECOMMENDATION: Staff recommends that the Redevelopment Agency Board of Directors: a. Receive and file the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area; and b. Direct staff to move forward on soliciting proposals for the preparation of a specific plan to identify the land uses, infrastructure, design, and financing for the Ramona Expressway/Sanderson Corridor Gateway Area; and c. Utilize the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area, as a guide for the development of a specific plan for the area; and d. Direct staff to identify a funding mechanism to finance the preparation of the specific plan; and e. Include the Stakeholders during the process of preparing the specific plan. BACKGROUND: The Ramona Expressway/Sanderson Avenue Corridor, also known as the Gateway Area,encompasses approximately 1,700 acres along both sides of the Ramona Expressway, from east of Sanderson to the City boundaries. This Gateway Area provides unique opportunities for current and future development. In March 2005, to facilitate development in this area, staff recommended the solicitation of proposals for a specific plan and economic study. The Council directed staff to move forward only on the economic study. Economics Research Associates (ERA) was selected to prepare a Market Assessment and Economic Development Strategy for the Ramona Expressway/Sanderson Avenue. Economics Research Associates prepared the Market Assessment and Economic Development Strategy('Assessment"). During the preparation process, Stakeholder meetings were conducted to solicit input and provide comments on the Assessment. The Assessment was also presented to the Stakeholders, during a meeting on No vember 16, 2005 and again on January 5, 2006. A presentation of the Assessment was made to the City Council and the Redevelopment Agency, during the January 6, 2005 Meeting. DISCUSSION Corridor Information The Gateway Area consists of approximately 1,700 acres, along two of San Jacinto's major streets. The area is primarily dairy farms, agricultural uses, with some vacant land. Several projects have been approved, including commercial and light industrial uses. Several other development proposals are in the Planning review process. Both the Ramona Expressway and Sanderson Avenue are major corridors through the City, both east/west and north/south, respectively. As such, they provide a unique opportunity for commercial, business park, civic, and residential uses. Freeway options are being considered for the area, including the realignment of Highway 79 to freeway operation, which will greatly improve accessibility to the corridor from both the north and south. A preferred alternative for this alignment has been selected. Also, the Mid-County Parkway is a proposed 32-mile limited access freeway corridor that will connect San Jacinto to the 215 Freeway in Perris and 115 in Corona. As a freeway corridor, Mid-County Parkway will provide opportunities for commercial development. The alignment has not been decided and the City has not yet made a recommendation. A major hurdle for the area is the San Jacinto River Levee Project, which involves the extension of the existing levee on the south side of the river, from east of State Street, westerly to almost Warren Road. This project, once completed will protect downstream properties from flooding and remove about 3,140 acres of land form the floodplain, creating new economic development opportunities. The City is working with the Riverside County Flood Control and Water Conservation District on the levee project. Proposed General Plan The City of San Jacinto is currently updating its General Plan to provide direction for the City's future development. The General Plan includes elements that identifies and discusses land uses, circulation, community services and facilities, resource management, public safety, noise, and housing. The proposed Plan also specifically identifies the Ramona Expressway/Sanderson corridor for a planned development called the Gateway Area Specific Plan. No specific land uses on a parcel basis are included within the Gateway Area Specific Plan. While the proposed General Plan provides the overall planned uses, goals, and objectives, it is anticipated that a Specific Plan would include details for development, including specific land uses, circulation, zoning standards, design elements, and project processing. The proposed General Plan includes the following percentages for development: • 15% Regional Commercial • 30% Office Park • 35% Business Park • 20% Estate Residential To facilitate development in the Ramona/Sanderson area, once the General Plan is adopted, will require the preparation of a specific plan or a General Plan amendment to identify property specific land uses. The draft General Plan has been circulated and is scheduled for the February 23, 2006 Planning Commission Meeting. At this time, considering the near completion of the General Plan, significant modifications, including re-evaluating the Ramona/Sanderson/Gateway area would delay completion of the Plan. The General Plan, once adopted ; can be amended up to four times per year. Another option could be amending the General Plan to accommodate land uses for the area. A consultant would need to be hired to evaluate the desired land uses. The Assessment could be used as a guide for an amendment. Market Assessment and Economic Development Strategies To prepare the Assessment and Strategies, ERA compiled demographic statistics, market trends, and other data to provide a foundation for the Assessment. In addition, ERA met with property owners and stakeholders, in order to have a better understanding of their interests and concerns surrounding the potential development of the area, as well as, to provide an opportunity to participate in the process. 3 ERA's role in preparing the Market Assessment and Economic Development Strategy is to recommend realistic and market based strategies that will accomplish the following five economic development objectives for the City: • Ensure that the Corridor will be able to provide the retail goods and services needed by the San Jacinto Valley residents for at lease the next 20 years. • Provide one or more areas within the Corridor that will serve to accommodate high quality jobs in the future. • Ensure that the development in the Corridor will generate tax revenues to fund municipal services like fire suppression, police protection, road maintenance, and park upkeep. Taking advantage of the Corridor's history and geography, create a community core that citizens of San Jacinto can take pride in. Enhance long-term value appreciation for San Jacinto land, homes, and businesses. Elements included in the Assessment are: Corridor Opportunities and Constraints Forecast San Jacinto's Economic Outlook • Examination of the Market for Residential Products • Commercial/Office/Business Park Development Opportunities • Project Retail Needs of Residents and Employees ERA's Recommendations Reserving Land for Commercial Development — The central issue in the Ramona/Sanderson Corridor is the risk of strong, single-family housing demand pre-empting other land uses important to the community's future, in terms of jobs, taxes, and a unique sense of place. ERA considered demand growth related to population, income, and employment increases and noted an approximate build- out period by 2025, with additional growth expected after. The following acreage is recommended to be reserved for commercial development/civic use. Mid-point 2025 Demand Forecast Recommended Planning Acreage Retail Commercial 298 375 Office Business Park 175 225 Medical Campus NA 50 Hotel & Motel 10 20 Town Center - Civic Center NA 50 Community Center and Ball Fields NA 50 Total Commercial and Civic Uses (Acres) 770 Page 4 of 9 Of the estimated 1,700 acres within the Corridor, ERA recommends 770 acres or around 45 percent be planned for future commercial, business park, civic, or community uses. Assuming that 500 additional acres will be required for transportation or other infrastructure and open space systems, approximately 430 acres remain available for the development of high quality residential neighborhoods. The percentage breakdowns, based upon the estimated 1,700 acres would be as follows: • Retail Commercial (includes hotel and motels) 23% • Office Business Park (includes medical campus) 16% Town Center/Community Center/Ball Fields 6% • Residential 25% • Infrastructure 30% When compared to the proposed General Plan designations and percentages, residential acreage is increased from 20% to 36% and would provide a greater range of residential uses. Retail commercial would increase from 15% to 33% and office/business park would be reduced from 65% to 23%. Excluding the infrastructure, the percentages are: • Retail Commercial (includes hotel and motels) 33% • Office Business Park (includes medical campus) 23% Town Center/Community Center/Ball Fields 8% Residential 36% Mr. Lee indicated that in meeting with the property owners, his recommendations on land uses were in line with what many were considering. Create a New Town Center — ERA recommends incorporating a Town Center within the Corridor. Several locations were identified, as options. The City has not discussed development of a Town Center for a number of years. This recommendation opens the door for discussion to take place. Staff recommends that a separate report be prepared to discuss the Town Center options and information included in ERA's report be considered. Transportation and Flood Control — There are three major infrastructure improvements planned for the Corridor, including Realignment of Highway 79, the Mid County Parkway, and the San Jacinto River Levee. Each of these has an effect on the development of the Corridor. ERA included discussion on these items in their Report. The alignment for the Mid County Parkway has not been determined. ERA recommends the southern alignment, along the aqueduct. The City has not determined a preferred alignment, therefore this recommendation, by ERA should be considered in future discussion and is not part of this staff report. Page 5 of 9 Create a New Community and Ball Field Complex — ERA recommends moving forward with development of a complex, which would enhance the desirability of San Jacinto as a residential community, and the tournaments would bring income to local hotels and restaurants. This is consistent with the recently developed Park Master Plan. Negotiation with Major Land Owners - ERA's analysis indicates that the City of San Jacinto should reserve much of this Corridor for future commercial and civic development and additional lands will be needed to accommodate the regional circulation system. While more detailed land planning analysis is needed to determine the exact acreages, ERA's evaluation suggest that there may be sufficient land in the Corridor to accommodate possibly 400 to 450 acres of residential development. The area within the Corridor but south of ERA's recommended alignment for the Mid County Parkway and the Colorado River Aqueduct appears to be well suited for residential development in accordance to the desires of the property owners. The residential character of properties to the south of this area has been established. The parcels fronting on Ramona Expressway on both the north and south sides should be reserved for future commercial or civic uses. The large parcels on the north side of Ramona Expressway should be planned to accommodate much of the future commercial and civic needs of the city; however, they are sufficient large to accommodate some residential neighborhood development as well. The Assessment provides more detail on ERA's recommendations for a Town Center. Need for a Specific Plan — Implementation of the concepts that ERA has advanced above will require the preparation of a Specific Plan and an associated Environmental Impact Study (EIR). Ideally, the City will have officially endorsed a preferred alignment for the Mid County Parkway and have negotiated some deals with the property owners to know on whose property the Town Center and community center/ball fields will be located. Rather than carrying innumerable alternatives, which would be costly, the Specific Plan then can focus on the location and design character of a Town Center, the local circulation system and the location and allocation of the different land uses. The Plan should include design guidelines for a Town Center. Stakeholder Meetings and Comments Several meetings were conducted throughout the process, to provide property owners an opportunity to comment. Mr. Lee met with most of the property owners, early in the process to review their development plans and desires for their properties. 6 Staff conducted several Stakeholder meetings to receive input on the Assessment. Notes from the November and January meetings area included as Attachments B and C. Additional comments are included as Attachment D. Mr. Robert Reicher with Market Profiles, who prepared a Market Study for one of the Stakeholder's provided comments, included as Attachment E. Specific Plan The preparation of a specific plan for the area would identify land uses, on a parcel specific basis. This was a key issue for the Stakeholders. Without land use designations, it is difficult to provide specific comments, because the actual effect on a parcel by parcel basis cannot be determined based upon the Assessment. The specific plan would include the completion of an environmental impact report to address all of the environmental issues facing the plan. In addition circulation, design, and development processing would also be addressed. In addition, a specific plan will facilitate and potentially expedite development in the area. Streamlined development application processing could be included in a specific plan. Preparation of a specific plan would provide the most cohesive and comprehensive plan for future development and would serve the best interests of the City in the long term. The Ramona Expressway/Sanderson Avenue corridors are San Jacinto's major thoroughfares and with the proposed Highway 79 realignment and Mid-County Parkway, a specific plan can explore the opportunities, using the Assessment, as a guide for future development. In addition, the General Plan recommends the preparation of a specific plan for the area. JUSTIFICATION: The Market Assessment and Economic Development Strategy has been completed by Economics Research Associates. This Assessment can be used as a guide for preparation of a specific plan and/or identifying land-uses for the area. The Assessment was not developed as a governing document, but a study of a specific area. Therefore, a recommendation to receive and file the Assessment is proposed. The Ramona Expressway/Sanderson Avenue/Gateway Corridor is the City's premier entry and provides significant current and future commercial development opportunities. As a growing city, San Jacinto has a unique opportunity to plan this corridor to accommodate not only current growth, but also for the future. As single-family developments are constructed and occupied, the 7 demand for commercial and job creating developments will increase. Land must be designated to accommodate these uses to support the City. Should the Corridor be developed with single-family uses, it will limit future commercial and job creation opportunities. Potential commercial/business developments that would locate in a major transportation corridor, would have limited other locations to consider city-wide. Preparation of a specific plan will further evaluate this corridor, utilizing the Assessment as a guide. In addition, the environmental constraints and the transportation alignments can be further analyzed for compatible land uses. This will provide San Jacinto a unique opportunity that many cities do not have and that is to master plan an area in a comprehensive and cohesive manner. In addition, design standards for development can be incorporated in the specific plan and can include architectural guidelines, landscaping requirements, signage, site improvements, as well as, expedited processing. BUDGETARY IMPACT: Funding was allocated for the Assessment preparation. Funding for the Specific Plan was included in last year's budget from Redevelopment Agency and General funds, with project costs proposed to be divided evenly. These funds were not carried forward to this Fiscal Year. The staff recommendation, should the Council wish to move forward is to develop a financing/funding plan for the proposed specific plan. ALTERNATIVES: Alternative No. a. Receive and file the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area; and b. Direct staff to move forward on soliciting proposals for the preparation of a specific plan to identify the land uses, infrastructure, design, and financing for the Ramona Expressway/Sanderson Corridor Gateway Area; and c. Utilize the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area, as a guide for the development of a specific plan for the area; and d. Direct staff to identify a funding mechanism to finance the preparation of the specific plan; and e. Include the Stakeholders during the process of preparing the specific plan. 8 Staff recommends approval of this alternative, because the preparation of a specific plan provides the most comprehensive and cohesive option for planning development along the Ramona Expressway/Sanderson Corridor. The use of the Assessment will provide a guide for the highest and best uses for the San Jacinto's future. Alternative No. 2 Receive and file the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area and delay the current General Plan process to incorporate land uses for the Ramona Expressway/Sanderson Avenue Corridor in the General Plan, as opposed to the Specific Plan designation. Staff does not recommend approval of this alternative, because it will delay adoption of the General Plan and not provide for a comprehensive plan for the area. The General Plan process has been underway for a number of years and is close to completion. It is in the City's best interest to adopt the General Plan in accordance with the current schedule. Alternative No. 3 Receive and file the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area and process a General Plan Amendment, once the General Plan is adopted to identify land uses for Ramona Expressway/Sanderson Avenue Corridor and remove the Specific Plan designation. Staff does not recommend approval of this alternative, because it only addresses land use on the surface and does not provide for a comprehensive and cohesive plan for the area. Should Council consider this option, a consultant would need to be hired to process the amendment and develop a land use plan to be included in the General Plan. ATTACHMENTS: THE FOLLOWING ATTACHMENTS ARE INCLUDED IN THE CITY COUNCIL STAFF REPORT ATTACHMENT A Market Assessment and Economic Development Strategy for the Ramona Expressway/Sanderson Avenue Gateway Corridor ATTACHMENT B January 5, 2006 Stakeholder Meeting Notes ATTACHMENT C November 16, 2005 Stakeholder Meeting Notes ATTACHMENT D Other General Comments ATTACHMENT E Letter from Mr. Robert Reicher, Market Profiles ATTACHMENT F Meeting Notification Letter 9 Table V-5. Estimated Potential Demand for Office and Business Park Development in San Jacinto and Ramona-Sanderson Corridor 2005-2015 2015-2025 2005-2025 Change in Employment in Riverside County 238,465 228,297 466,762 Demand for Employment Space Employment Using Light Industrial/Flex 29,400 30,218 59,618 Employment Using Office 38,210 30,717 68,927 Total Net Occupied Employment Space (sq.ft.): Industrial @400 sf per employee 11,760,168 12,087,012 23,847,180 Office @250 sf per employee 9,552,508 7,679,305 17,231,813 Total Net Employment Space (sq.ft.): Industrial (95% occupancy) 12,379,124 12,723,171 25,102,295 Office (95% occupancy) 10,055,271 8,083,479 18,138,750 San Jacinto Share of Riverside County (°/0) Light Industrial/Flex 5% 7% 6% Office 8% 10% 9% Total Potential Leasable Space in San Jacinto (sq. ft.) Leasable Light Industrial/Flex Space Leasable Net Office Space Gross Office/Business Park Land Area in San Jacinto (sq. ft.) Gross Light Industrial/Flex Space (FAR @ 0.3) Gross Office Space (FAR @ 0.3) Allowance for Local Circulation/ Amenities 30% Gross Space (sq.ft.) Allowance Light Industrial/Flex Space Allowance Office Space Total Potential Office/Business Park Development in San Jacinto (sq.ft.) Light Industrial/Flex Development Potential Office Development Potential Total Estimated Commercial Development Potential in San Jacinto Total Potential Office/Business Park Development in San Jacinto (acres) Light Industrial/Flex Development Potential Office Development Potential I Total Estimated Office/Bus. Park Development Potential in San Jacinto Ramona-Sanderson Corridor Share of San Jacinto (%) Light Industrial/Flex Share Low High Office Share Low High Demand Range for Office/Business Park in Ramona-Sanderson (acres) Light Industrial/Flex Low High Office Low High Total Office/Bus. Park Development Potential in Ramona-Sanderson (acres) 618,956 890,622 1,509,578 804,422 808,348 1,612,770 2,063,187 2,968,740 5,031,927 2,681,406 2,694,493 5,375,899 618,956 890,622 1,509,578 804,422 808,348 1,612,770 2,682,144 3,859,362 6,541,505 3,485,827 3,502,841 6,988,668 6,167,971 7,362,203 13,530,173 62 89 150 80 80 160 142 169 311 50% 60% 45% 55% 55% 65% 55% 65% 53% 63% 50% 60% 31 49 80 37 58 95 36 44 80 44 52 96 160 to 191 Economics Research Associates Project 16070 V-10 Market Assessment and Economic Development Strategies for the Ramona-Sanderson Corridor • Total employment space needed to meet the new demand is the product of the new jobs generated utilizing light/industrial or office space and the average space allocated to the office and industrial employee. An estimated market capture rate was applied for the city of San Jacinto as a share of the total office demand generated in Riverside County, resultin.c., in the potential square footage of office and light industrial/flex space demand for the city. • The office/light industrial square footage demand is then divided by the average floor area ratio to estimate gross square foot demand. In this case, ERA applied an FAR of 0.3. • An allowance for local circulation and amenities of 30 percent was applied to determine gross acreage demand. • From the total potential gross demand for office and business park development in San Jacinto, a "high" and "low" market capture rate was applied for the Gateway Area to estimate the potential acreage demand for the project area. Based on this model, ERA estimated that San Jacinto could potentially capture approximately 142 acres of office/business park development from 2005 to 2015 and an additional 169 acres of office/ business park development in the 2015 to 2025 period. The total for the next 20 years would be 311 for the city as a whole. From this total, ERA estimated a range of between 67 to 81 acres of potential business park development in the Gateway Area from 2005 to 2015, and 93 to 110 acres of new business park development from 2015 to 2025 in the project area. The estimated office/business park acreage demand for the Gateway Area is therefore 160 to 191 acres. Medical Campus In addition to the business park demand potential presented in the above model, ERA also reviewed the potential for a medical campus locating in the San Jacinto Valley. With the regional access afforded by the new freeway interchange, and the growing local population, the Valley will become significantly more attractive to large medical institutions. The city of Riverside has experienced growth in its biomedical and pharmaceutical supply industries in recent years, as more of these companies have become interested in locating in the Inland Economics Research Associates Project 16070 Market Assessment and Economic Development Strategies for the Ramona-Sanderson Corridor ERA Empire due to lower costs, existence of good educational institutions, and the access to the regional market. As large parcels of land in the city of Riverside becomes more scarce, it will become increasingly difficult for a large campus such as a medical facility to locate there. We understand a major health service provider is currently seeking a 50-acre parcel to locate a medical campus including hospital and medical office buildings possibly in the San Jacinto Valley. The City of San Jacinto should move strategically to ensure this medical complex has the opportunity to locate within the Gateway Area. Economics Research Associates Project 16070 V-12 Market Assessment and Economic Development Strategies for the Ramona-Sanderson Corridor ERA SECTION VI. RETAIL IEVELOPMENT POTENTIAL TAXABLE RETAIL SALES San Jacinto The taxable retail sales trends for the city of San Jacinto are outlined in Table VI-1. As indicated, total retail sales have been growing in the city since 1993. In 2003, total retail sales were approximately $75 million. Sales were distributed into various retail categories, with the greatest share in service stations, eating and drinking facilities, grocery stores, and other retail store types. San jacinto's taxable retail sales composed only 0.3 percent of the county's total retail sales. On a per capita basis, San Jacinto's retail sales were under $4,000 in 2003, signaling a great deal of leakage of sales to other neighboring communities, including Hemet, Moreno Valley, Temecula, and others. Hemet Hemet's taxable retail sales are significantly more robust than San Jacinto's, as shown in Table 1/1-2. In 2003, Hemet's taxable sales totaled $686 million. Total sales have increased steadily since 1993 at an annual rate of over six percent. Hemet's sales comprise about three percent of Riverside County's retail sales. The presence of auto dealers in Hemet has contributed substantially to taxable retail sales in the city. In 2003, auto dealers made up 30 percent of total sales tax revenue, bringing in $203 million in taxable sales. Other important retail categories included general merchandise and drugstores (25 percent), and food and beverage (10 percent). Riverside County In Riverside County, taxable sales in 2003 were over $16 billion, as shown in Table VI-3. Taxable sales revenue has been growing at an average annual rate of nine percent since 1993. The most important retail segments in Riverside County are auto dealers and supplies (23 percent), general merchandise and drugstores (17 percent), and other retail stores (13 percent). Economics Research Associates Development Opportunities in Ramona-Sanderson Corridor ERA Table VI-1. City of San Jacinto Taxable Retail Store Sales (Thousands of Dollars) Rate of 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Growth Apparel Stores Gen. Merchandise & Drug Food Stores Eating & Drinking Places Furnishing & Appliances Bldg Materials & Farm apt Auto Dealers & Supplies Service Stations Other Retail Stores Total City of San Jacinto Annual Growth Total Riverside County Share of' County $129 $81 $143 n/a n/a n/a $85 $172 $273 $344 $502 14.55% 541 704 585 423 439 387 1,464 1,922 2,038 2,084 rila 14.44% 7,341 9,437 10,055 10,162 10,561 10,471 9,989 10,549 11,180 11,629 13,420 6.22% 6,559 6,642 8,093 8,613 8,492 8,702 9,598 11,016 11,462 12,993 16,457 9.64% 1,990 2,068 1,695 1,877 1,490 1,363 1,821 1,600 1,647 1,630 1,487 -2.87% 4,875 3,471 4,030 5,404 4,009 3,654 3,791 3,351 3,227 3,793 3,910 -2.18% 3,421 4,259 5,059 4,276 3,949 4,696 4,652 4,895 4,512 4,031 5,748 5.33% 12,134 10,706 10,663 11,505 12,738 13,845 17,768 18,868 19,807 18,912 22,474 6.36% 7,987 6,728 6,262 5,6)) 4,858 5,290 6,488 6,758 6,818 8,038 11,040 3.29% $44,977 $44,096 $46,585 $47,882 $46,536 $48,408 $55,656 $59,131 $60,964 $63,454 $75,038 5.25% -2.0% 5.6% 2.8% -2.8% 4.0% 15.0% 6.2% 3.1% 4.1% 18.3% $6,716,703 $7,131,216 $7,435,414 $8,003,051 $8,508,010 $13,140,854 $15,076,945 $16,979,449 $18,231,555 $19,498,994 $21,709,135 $6,288,751 0.7% 0.6% 0.6% 0.6% 0.5% 0.4% 0.4% 0.3% 0.3% 0.3% 0.3% 0.0% Source: Caliliunia Board ol'Equalization, Research & Statistics Economics Research Associates V1-2 Development Opportunities in Ramona-Sanderson Corridor '1 able VI-2. City of lIemet Taxable Retail Store Sales (Thousands of Dollars) Ride of . 1993 1994 1995 1996 1997 1998 1991) 2000 2001 204)2 2003 Growth Apparel Stores Gen. Merchandise & Drug Food Stores Eating & Drinking Places Furnishing & Appliances Bldg Materials & Farm Egmt Auto Dealers & Supplies Service Stat ions Other Retail Stores Total City or Ilemet Annual Growth Total Riverside County Share of County $8,532 $93,837 $23,789 $38,845 $6,709 $15,709 $94,267 $35,036 $30,577 $7,210 $101,067 $21,256 $41,552 $6,023 $11,620 $99,198 $35,891 $31,191 $7,054 $107,286 $20,358 $43,497 $6,127 $12,483 $106,768 $33,700 $30,802 $7,152 $108,279 $24,055 $42,134 $6,501 $15,075 $109,279 $37,262 $30,578 $6,895 $114,031 $26,666 $43,083 $7,581 $31,793 $109,592 $37,856 $33,003 $7,688 $123,424 $26,795 $46,071 $10,081 $39,387 $123,914 $32,321 $38,380 $8,623 $132,178 $27,613 $51,261 $11,714 $51,320 $171,993 $37,584 $45,859 $8,921 $141,368 $28,877 $54,206 $12,839 $52,883 $217,124 $45,071 $45,433 $9,679 $154,268 $30,167 $57,869 $12,730 $53,005 $194,446 $48,314 $45,189 $9,987 $165,074 $32,482 $60,749 $14,415 n/a $212,132 $47,255 $110,786 $10,146 $172,750 $34,732 $66,717 $15,494 $73,107 $203,173 $58,392 $51,036 1.6% 5.7% 3.5% 5.0% 7.9% 15.0% 7.2% 4.8% 4.8% $347,301 $355,008 $368,075 $380,315 $410,500 $448,061 $538,145 $606,722 $605,667 $652,880 $685,547 6.4% 2.2% 3.7% 3.3% 7.9% 9.2% 20.1% 12.7% -0.2% 7.8% 5.0% $6,716,703 $7,131,216 $7,435,414 $8,003,051 $8,508,010 $9,276,448 $10,685,724 $12,190,474 $13,173,281 $14,250,733 $16,030,952 9.1% 5.2% 5.0% 5.0% 4.8% 4.8% 4.8% 5,0% 5.0% 4.6% 4,6% 4.3% 70.2% Source: Cal ilbrnia Board of Equalization, Research & Statistics Economics Research Associates VI-3 Development Opportunities in Ramona-Sanderson Corridor Table VI-3. Riverside County Taxable Retail Store Sales. (Thousands of Dollars) Retail Category Apparel Stores Gen. Merchandise & Drug Food Stores Eating & Drinking Places Furnishing & Appliances Bldg Materials & Farm Equip Auto Dealers & Supplies Service Stations Other Retail Stores Total Riverside County Annual Growth 1993 $395,084 $1,267,240 $673,556 $849,961 $267,674 $584,512 $1,129,747 $739,399 $809,530 1994 $406,973 $1,350,233 $658,486 $884,970 $299,746 $633,273 $1,283,950 $741,435 $872,150 1995 $423,007 $1,391,979 $657,498 $919,233 $327,517 $714,133 $1,387,403 $767,675 $846,969 1996 $474,384 $1,429,338 $696,627 $979,535 $337,433 $709,568 $1,498,842 $835,767 $1,041,557 1997 $488,625 $1,498,212 $734,532 $1,030,655 $328,893 $831,063 $1,565,935 $855,454 $1,174,641 1998 $498,753 $1,628,149 $758,829 $1,117,921 $367,812 $998,256 $1,824,833 $793,252 $1,288,643 1999 $495,945 $185,651 $828,641 $1,233,274 $447,594 $1,186,636 $2,161,678 $983,739 $3,162,566 2000 $538,578 $2,062,738 $889,894 $1,364,808 $517,578 $1,366,076 $2,615,997 $1,196,693 $1,638,112 2001 $565,295 $2,275,736 $930,232 $1,465,467 $526,083 $1,503,737 $2,924,508 $1,223,753 $1,758,470 2002 $610,388 $2,459,046 $967,171 $1,559,215 $594,049 $1,581,792 $3,314,133 $1,249,646 $1,915,293 2003 $746,015 $2,671,971 $1,028,392 $1,713,632 $691,051 $1,868,995 $3,662,151 $1,536,240 $2,112,505 $6,716,703 $7,131,216 $7,435,414 $8,003,051 $8,508,010 $9,276,448 $10,685,724 $12,190,474 $13,173,281 $14,250,733 $16,030,952 6.2% 4.3% 7.6% 6.3% 9.0% 15.2% 14.1% 8.1% 8.2% 12.5% Source: Cal ilbrnia Board of Equalization Economics Research Associates VI-4 Development Opportunities in Ramona-Sanderson Corridor E RA Per capita sales are presented in Table V11-4 for Riverside County. Overall, total per capita spending was nearly $10,500 in the county. Per capita spending on retail has grown at an annual rate of over five percent. Certain sectors, such as farm and building supplies, auto dealers and suppliers, other retail stores, and furnishings have increased at a greater than average rate. The growth in categories associated with home improvements (building supplies and furnishings) supports the corresponding growth in housing construction that has occurred in the county during the last decade. San Jacinto and Hemet's share of Riverside County taxable sales are reviewed in Table VI -5. RETAIL MARKET TRENDS Inland Empire In the Inland Empire, the retail market has been very strong as homebuilding activity continues at a rapid pace. As one of the fastest growing areas in the country, the Inland Empire region is quickly being recognized as one of the top retail markets. Total retail space in the region is approximately 85 million square feet. In 2004, about 4.2 million square feet of retail space were built. In addition, there are approximately three million square feet of retail slated for completion by the end of the year. Vacancy rates are stable at about 6.25 percent, as the new supply is easily absorbed by retailers. Retail rental rates are comparatively more affordable than in the Los Angeles and Orange County markets. High performing stores in new developments achieve rents of about $32 to $40 per square foot. Community power centers are leasing for approximately $18 per square foot.' Much of the major new retail developments in the Inland Empire have occurred along the major freeways. 1-15 has new large retail centers planned and under construction at almost every exit. In Wildomar, a Wal-Mart Supercenter development is planned and scheduled for completion in mid-2006. Victorville's Pavillion development is an $80 million lifestyle center planned to open in early 2006, with anchor tenants including Pierl, Linens n Things, and Michael's stores. Finally, Transcan Development is developing Canyon Crossings at the 1-215 and Highway 60 interchange in Riverside California, which will have 740,000 square feet of retail space and will be completed late this year. 'Western Real Estate Business, "Market Highlight." August 2005. Economics Research Associates VI-5 Development Opportunities in Ramona-Sanderson Corridor ERA Table V1-4. Per Capita Retail Store Sales in Riverside County. 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Riverside County Population 1,272,180 1,308,032 -1,344,894 1,382,796 1,421,765 1,461,833 1,503,029 1,545,387 1,607,197 1,671,478 1,738,331 Per Cauita Sales Apparel Stores $311 $311 $315 $343 $344 $341 $330 $349 $352 $380 $429 Gen. Merchandise & Drug $1,026 $1,063 $1,066 $1,065 $1,085 $1,147 $127 $1,375 $1,416 $1,576 $1,583 Food Stores 2 $1,588 $1,510 $1,467 $1,511 $1,550 $1,557 $1,654 $1,728 $1,736 $1,805 $1,775 Eating & Drinking Places $668 $677 $683 $708 $725 $765 $821 $883 $912 $970 $986 Furnishing & Appliances $210 $229 $244 $244 $231 $252 $298 $335 $327 $370 $398 Bldg Materials & Farm Egint $459 $484 $531 $513 $585 $683 $789 $884 $936 $984 $1,075 Auto Dealers & Supplies $888 $982 $1,032 $604 $1,101 $1,248 $1,438 $1,693 $1,820 $2,062 $2,107 Service Stations $581 $567 $571 $604 $602 $543 $655 $774 $761 $778 $884 Other Retail Stores $636 $667 $630 $753 $826 $882 $2,104 $1,060 $1,094 $1,192 $1,215 Total Riverside County $6,368 $6,490 $6,537 $6,347 $7,049 $7,417 $8,216 $9,080 $9,354 $10,116 $10,451 Annual Growth 0.7% -2.9% 11.1% 5.2% 10.8% 10.5% 3.0% 8.1% 3.3% I Adjusted from taxable sales by 3% to reflect non-taxable drug sales 2 Adjusted taxable sales by 3 times to reflect total food store sales Source: California Board or Equalization, ERA Economics Research Associates VI-6 Development Opportunities in Ramona-Sanderson Corridor ERA Table VI-5. SAN JACINTO SHARE OF COUNTY TAXABLE STORE SALES IN 2003 (Thousands of Dollars) City of City of Riverside San Jacinto's Share ilemet's Share San Jacinto Valley San Jacinto Hemet County Of County Of County Share of County Apparel Stores General Merchandise Food Stores Eating & Drinking Places Furnishing & Appliances Bldg Materials & Farm Egmt Auto Dealers & Supplies Service Stations Other Retail Stores $502 n/a $13,420 $16,457 $1,487 $3,910 $5,748 $22,474 $11,040 $10,146 $172,750 $34,732 $66,717 $15,494 $73,107 $203,173 $58,392 $51,036 $746,015 $2,671,971 $1,028,392 $1,713,632 $691,051 $1,868,995 $3,662,151 $1,536,240 $2,112,505 0.1% 1.4% 1.4% n/a 6.5% 6.5% 1.3% 3.4% 4.7% 1.0% 3.9% 4.9% 0.2% 2.2% 2.5% 0.2% 3.9% 4.1%. 0.2% 5.5% 5.7% 1.5% 3.8% 5.3% 0.5% 2.4% 2.9% Total Taxable Sales $75,038 $685,547 $16,030,952 0.5% 4.3% 4.7% Source: Cali Ibrnia Board of Equalization Economics Research Associates V1-7 Development Opportunities in Ramona-Sanderson Corridor t RA Riverside County According to Costar, Riverside County has over 36 million square feet of leasable retail space currently. The vacancy rate is only 6.8 percent, with available vacant square footage totaling 2.5 million. In the first two quarters of 2005, Riverside County absorbed more than 1.4 million square feet. Average annual absorption from 2000 to 2005 was 877,000 square feet. Average lease rate in Riverside County is currently $15.34 triple net. San Jacinto accounted for 96,000 leasable square feet, with a vacancy rate of about 31 percent. Lease rates were comparable to the county, at an average rate of $15.32 triple net. Average annual absorption from 2000 to 2005 was about 2,900 square feet. One of San Jacinto's largest retail developments is the 70,000-square-foot Farmer's Corner mall, which was recently bought by the Roxbury Company of Century City. Tenants at the mall include the Acapulco restaurant, Tap Daddy's Bar and Grill, and over 30 other specialty retail stores and restaurants. Unfortunately, since its construction in 1980, the mall has struggled to attract customers. Some of the mall's lackluster performance is blamed on the building's design, which was initially intended to be a farmer's market and then was adapted to a conventional commercial center. In addition to the Farmer's Corner mall, San Jacinto also has several community shopping centers, a 12-screen movie theater, and several fast food restaurants. As indicated in the taxable sales data, neighboring Hemet has a significantly larger share of the Valley's retail development, mostly concentrated along Florida Avenue. This includes the Hemet Mall, the regional 250,000-square-foot shopping center anchored by Gottschalk's, Sears and J.C.Penney, as well as power centers with tenants such as Target, Home Depot, Lowe's, and others. Both Gottschalks and J.C. Penney have reported sales far beyond those achieved in other regional centers in Southern California, with demand continuing to grow. New "sit-down" restaurants have recently been developed along the Florida Avenue corridor as well. Last year, the new Applebee's restaurant in Hemet achieved revenues far beyond what had been projected for that location. Similarly, the new Chili's restaurant that opened in May of this year in the same area has performed beyond expectations to generate more sales than the restaurants in Temecula and San Diego, with more than four complete turnovers a day and serving over 1,100 people on weekend days. This performance demonstrates that San Jacinto is currently under-served in terms of commercial facilities. Economics Research Associates VI-8 Development Opportunities in Ramona-Sanderson Corridor ERA PLANNED 11EVELOPMENT IN SAN JACINTO VALLEY in addition to the recent development in the San Jacinto Valley described above, there are other new projects in construction and planning stages in Hemet and San Jacinto. Among these projects in the pipeline in San Jacinto is the Super Walmart development, currently under construction at the corner of San Jacinto Avenue and Commonwealth. The project is on a 26-acre site and will contain about 260,000 square feet of retail, including 230,000 square feet for WalMart, as well as fast-food restaurants, a pharmacy and other supporting retail. Currently, Hemet has several projects in the pipeline, including the possible expansion of the Hemet Mall, and new store openings for major tenants like Marshall's, Petsmart, and Office Depot on their way to Florida Avenue. There is also a planned project for 60,000 square feet of mixed use development across from Hemet Mall which would include some retail uses. DEMAND ANALYSIS ERA developed a demand model to forecast retail demand in the San Jacinto Valley from 2005 to 2025. The model is built based on the following assumptions: • In the demand model, we adjusted for the impact of real income growth considering both macro economic conditions, such as business cycles, and micro economic changes, such as the homebuilding boom and simultaneous climb in Riverside County home prices driving up the average income of future residents. • The aggregate retail demand is then calculated by multiplying the market area population by the expected per capita retail sales for difference points in time. Subtracting the 2005 sales from the projected 2015 and the 2015 sales from the 2025 sales calculate the growth in retail demand for the two time periods. • The sales gain by category is then converted into retail square footage demand by dividing by an estimated sales per square foot per year factor for each category. • The retail square footage demand is then divided by an average floor area ratio (FAR) to estimate gross retail commercial acreage demand. In this case, we applied an FAR ratio of 0.2. • We then assigned an estimated market capture rate by retail category for the city of San Jacinto, resulting in the potential acreage demand in the city. Economics Research Associates VI-9 Development Opportunities in Ramona-Sanderson Corridor We then assigned an estimated "low" and "high" market capture rate by retail category for the Gateway area based on the captured retail demand in San Jacinto, giving us a range of potential acreage development in the project area. This analysis is detailed in Table VI-6 for the 2005 to 2015 time period and Table VI-7 for the 2015 to 2025 time period. Based on ERA's model, from 2005 to 2015, there will be demand for an additional 4.3 million square feet (500 acres) of retail space in the San Jacinto Valley. ERA estimated that the city of San Jacinto would capture about 29 percent of the demand for new retail space. Therefore, San Jacinto's share of the new retail development amounts to 147 acres. A significant portion of the new development is expected to occur in the Gateway Area. In the low capture scenario, the Gateway area would capture about 52 percent of total potential development in San Jacinto. In the high capture scenario, the Gateway area would receive 62 percent of San Jacinto's future retail development. The range of development occurring in the Gateway Area in the next ten years is between 114 acres and 136 acres. From 2015 to 2025, the additional demand for retail space in the San Jacinto Valley will total almost 5.3 million square feet. The city of San Jacinto's capture of that demand is approximately 31 percent for this period. Therefore, the total acreage of retail development captured in San Jacinto is about 187 acres. Of this total, ERA estimated that between 57 percent and 66 percent of the city's future retail development would occur in the Gateway Area. Based on this estimate, the potential for retail space in the project area from 2015 to 2025 is between 159 to 186 acres. From 2005 to 2025, San Jacinto's new retail development potential will total 500 acres. The Gateway Area could potentially capture between 273 to 322 acres of the future demand for retail space in the city. Economics Research Associates VI-10 Development Opportunities in Ramona-Sanderson Corridor Table V1-6. Retail Land Demand Forecast: 2005 to 2015 Trade Area - Cities of San Jacinto and Ileinct (San Jacinto Valley) 2005 2015 Growth in Demand from 20 5 to 2015 San Jacinto Valley Population 106,585 190,780 Real Income Adjustment 1 030 1.384 Trade Area San Jacinto Sanderson-Ramona Incremental Low Share of San Jacinto High Share of San Jacinto Total Market Area Demand Net Acreage Demand Share Net Acres 65% 60% 45% 45% 45%, 75% 45% 45% Apparel Stores Gen. Merchandise & Drug Food Stores Eating & Drinking Places Furnishing & Appliances 13Idg Materials & Farm Lunn Auto Dealers & Supplies Service Stations Other Retail Stores Per Capita 2004 ($000) $0.429 1,583 1.775 0,986 0.398 1,075 2.107 0,884 1.215 ($ 000) $47,114 $173,808 $194,841 $108,223 $43,643 $118,034 5231,279 $97,020 5133,413 (5 (t00) $113,333 418,098 468,693 260,331 104,983 283,934 556,346 233,382 320,927 Sales Sales/SF (5 00)1) $66,219 $225 244,290 230 273,852 450 152,108 300 61,340 220 165,899 275 325,066 NA 136,363 1300 187,514 250 So Ft Acres FAR 294,307 34 0.2 977,158 112 0.2 608,560 70 0.2 507,028 58 0.2 278,820 32 0.2 603,269 69 0.2 226,575 26 0.2 104,894 12 0.2 750,056 86 0.2 Stuart, of Trade Area 25% 30% 33% 30% 28% 30% 25% 30% 28% Demand Share 5 75% 20 70"A 10 55% 8 55% 5 70% 9 55% 5 85% 2 55% It 550/s Net Acres 6 24 13 10 1 1 6 2 13 8 34 23 17 9 21 7 4 24 Total Retail Stores $10.451 $1,147,375 52,760,1126 $1,612,651 4,350,667 499 29% 147 52% 76 62% 91 Allowance for Service Commercial and Entertainment Uses of 20%i 15 18 Allowance for Circulation and Access @ 30"42 23 27 Total Retail Acreage Demand 2005 to 2015 (low to high range) 114 136 Includes service commercial uses such as beauty salons, barbershops, Mycleaners, repair stores, educational and health services, pm essional and business services, etc. 2 Includes local streets, easements, landscaping and tuft features, etc. Source: Flizstats; pontos and Cents orShopping Centers; Economics Research Associates Table V1-7. Retail Land Demand Forecast: 2015 to 2025 Trade Area - Cities of San Jacinto and Hemet (San Jacinto Valley) 2015 2025 Growth in Demand from 2015 to 2025 San Jacinto Valley Population 190,780 242,442 Real Income Adjustment 1.384 1,860 Trade Area San Jacinto Sanderson-Ramona Sy Ft Acres FAR Net Acreage Low Share of San Jacinto High Share of San Jacinto Demand Demand Apparel Stores Gen. Merchandise & Drug Food Stores Eating & Drinking Places Furnishing & Appliances Bldg Materials & Farm Enna Auto Dealers & Supplies Service Stations Other Retail Stores II 41 30 23 12 25 9 4 31 Per Capita 2004 ($000) $0.429 1.583 1.775 0,986 0.398 1.075 2,107 0.884 1.215 Total Market Area Demand (5 000) ($ 000) $113,333 $193,555 418,098 714,045 468,693 800,454 260,331 444,605 104,983 179,294 283,934 484,914 556,346 950,152 233,382 398,580 320,927 548,093 Incremental Sales Sales/SF ($ 000) $80,222 $225 $295,947 $250 $331,761 $450 $184,274 $300 $74,3 II $220 $200,980 $275 $393,806 NA $165,198 $1,301 $227,166 $250 Share of Trade Area 27% 30% 35% 33% 30% 30% 30% 30% 30% Share Net Acres 70% 8 GS% 26 50% 15 50% 12 65% 8 50%_ 13 75% 7 50% 2 50% 16 Share Net Acres 80% 9 75% 31 60% 18 60% 14 70% 8 60% 15 85% 8 60% 3 60% 19 356,542 41 0.2 1,183,790 136 0.2 737,247 85 0.2 614,246 71 0.2 337,779 39 0.2 730,838 84 0,2 274,487 32 0.2 126,978 15 0.2 908,664 104 0.2 Total Retail Stores $111.451 $2,760,026 $4,713,692 $1,953,666 5,270,571 605 31% 187 57% 106 66% 124 Allowance for Service Commercial and Entertainment Uses at 20% I 21 25 Allowance Mr Circulation and Access 30% 2 32 37 Total Retail Acreage Demand 2015 to 2025 (low to high range) 159 186 Total Retail Acreage Demant 20(15 to 2025 (low to high range) 273 Includes service commercial uses such as: beauty salons, barbershops, chycleaners, repair stores, educational and health services, professional and business services, etc. Includes local streets, easements, landscaping and entry features, etc. Source: Economics Research Associates Big and medium box retailers and automobile dealerships are able to locate on the south side in accordance to the required parcel depths. Automobile dealerships favor a long frontage and do not require much parcel depth. • It consolidates the two community dividers, the new Mid County Parkway and the existing aqueduct, into a single corridor thereby minimizing the number of barriers to community cohesion. • It uses the aqueduct to buffer the negative influences of the freeway on the south side and creates a good separator between the commercial uses on the north side of the Mid County Parkway and the predominately residential uses on the south side of the freeway and aqueduct. • It places the new Highway 79 and Mid County Parkway interchange, and the commercial properties around this interchange, further south in the San Jacinto Valley and closer to more of the valley population. • The eastern terminus of this Mid County Parkway leads to a strong potential location for the Town Center—Civic Center complex. The parkway alignment and the location of the Town Center could be designed so that as a driver approaches from the west, he or she can see the Town Center at the end of the parkway with the San Jacinto Mountains serving as a memorable backdrop. It would allow San Jacinto to convey a sense of place that few newer communities in Riverside County have been able to achieve. While not in the geographic center of the city, this location for a Town Center would be easily accessible to San Jacinto residents from the west, south and southeast. iaure 11-1 Possible To — — n Center Locations Economics Research Associates Project No. 16070 11-4 Market Assessment and Economic Development Strategy for the Ramona-Sanderson Corridor but it should certainly include the major properties around the Highway 79 and Mid County Parkway interchange. The cost of a high quality Specific Plan and EIR is expected to be in excess of $500,000, and it is fairly common for municipalities to recover that cost from the property owners or develops as the properties develop. As an alternative, the cost of the Specific Plan can be part of the residential entitlement for land negotiation. IMAGES OF A FUTURE SAN JACINTO TOWN CENTER ERA Economics Research Associates Project No. 16070 Market Assessment and Economic Development Strategy for the Ramona-Sanderson Corridor 11-8 ERA Economics Research Associates Project No. 16070 11-9 Market Assessment and Economic Development Strategy for the Ramona-Sanderson Corridor 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 4 0.0% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 SECTION III. ECONOMIC OUTLOOK AND DEMOGRAPHIC TRENDS In this section, ERA analyzes the regional economic context for future development potential in San Jacinto, including employment trends, key industries, and employment forecasts. In addition, ERA presents an overview of construction trends and demographics in San Jacinto and Riverside County, including historical population, race, educational attainment, income, and population projections. REGIONAL ECONOMIC OVERVIEW Riverside County is part of the greater Inland Empire economy, which also includes San Bernardino County. The Inland Empire currently employs approximately 1.15 million (non- agricultural employment), a significant increase from 988,000 in 2000. Riverside County's unemployment rate dropped from a high of 12 percent in 1993 to below six percent in 2004. As shown in the chart below, Riverside County's unemployment rate was consistently above the state level until 2002 and has been below the State average since. Figure III-1. Unemployment Trends in Riverside County. Unemployment Rates in Riverside County and California, 1990-2004 m Riverside County EI California Source: California Employment Development Department; Economics Research Associates, 2005. Economics Research Associates Project No. 16070 Market Assessment and Economic Development Strategy for the Ramona-Sanderson Corridor tail Trade 13% Advanced Services 32% Information and Financial Activities 5% Government 18% Other Services 3% Akagriga...—___i Natural Resources and Construction 10% Manufacturing 10% VVholesale Trade, Transportation and Utilities 9% The economy of the Inland Empire is diverse, with employment distributed among many industry sectors. The chart below illustrates the current industry mix in the Inland Empire: Figure 111-2. Inland Empire Employment by Industry. Employment in Inland Empire, 2004 Source: California Employrrent Developrnent Department; Economics Research Associates, 2005. As shown, the largest labor markets are in advanced services including professional and business services, educational and health services, and hospitality and leisure services (32 percent), government (18 percent), retail trade (13 percent), and manufacturing (10 percent). Inc. Magazine ranked the Riverside-San Bernardino metropolitan area as the 6 th best place for doing business in the country in 2005. The ranking was based on personal income data and employment growth trends. According to the -U.S. Bureau of Economic Analysis, personal income in the Inland Empire has grown at a rate of five percent annually, well above most metropolitan areas. Due to a combination of relatively lower land costs, availability of land, skilled workforce, and an extensive transportation network, the Inland Empire has been able to attract many new companies and induce the expansion of local companies over the last 15 years. According to the California Employment Development Department, Riverside County has added more jobs in the last 15 years than any other Southern California county. The following table illustrates job gains in Riverside County compared to other counties in California from 1990 to 2004: Economics Research Associates Project No. 16070 111-2 Market Assessment and Economic Development Strategy for the Ramona-Sanderson Corridor 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Figure 111-3. Ethnic Composition for Key Cities and Riverside County Ethnic and Racial Composition of Key Cities ERA San Jacinto Hemet Perris Moreno Valley Riverside County cm White le African Arrerican o Native American o Asian and Pacific Islander 0 Other Race Source: US Census 2000; Economics Research Associates, 2005. Figure 111-4 Hispanic and Latino Population in Key Jurisdictions, 2000. Hispanic/ Latino Population as Percent of Total by Jurisdiction 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 57.3% 36.2% 38.4% 40.9% 3 .4 0 0 I l I Riverside Hemet Moreno Valley Perris San Jacinto California County Source: US Census 2000; Econorrics Research Associates, 2005. Economics Research Associates Project No. 16070 Market Assessment and Economic Development Strategy for the Ramona-Sanderson Corridor Age The chart below (Figure -5) illustrates the distribution of the population of each jurisdiction by age group. As shown, seniors are more generously represented in the San Jacinto Valley than in the county as a whole. This is largely due to the presence of many retirement communities in the valley. Nearly a third of the population in Hemet is made up of seniors in the 65 and over age groups. San Jacinto's share of seniors is at 17 percent, compared to 13 percent and 11 percent in the county and state, respectively. By contrast, Moreno Valley and Perris have a greater representation of children under 15 than the other jurisdictions. Children compose 31 and 34 percent of the population in Moreno Valley and Perris, respectively. Children under 15 make up 26 percent of the population of Riverside County and 23 percent of the statewide population. In San Jacinto, this group represented 27 percent of the population, about the same level as the county Figure 111-5 Distribution of Population by Age, 2000. Distribution of Population by Age Group 100% -- 90% 80% 70% - 60% 50% 40% 30% 20% - 10% - 0% Riverside County Hemet Moreno Valley Ferns San Jacinto California m Under 15 al 15-19 o20-24 o25-29 30-34 35-39 is 40-44 45-54 I 55-64 al 65-74 075 Source: US Census 2000; Econorrics Research Associates, 2005. Economics Research Associates Project No. 16070 LII-8 Market Assessment and Economic Development Strategy for the Ramona-Sanderson Corridor 100% - 90% 80% - 70% - 60% 50% 40% - 30% 20% - 10% - Source: US Census 2000; Economics Research Associates, 2005. fa No schooling Ei Less than 9th 0 9th to 12th 0 High school diploma El Some college o AA IR BA 0 Prof/ masters Riverside County Hermt Educational Attainment by Jurisdiction Moreno Valley Perris San Jacinto California EA Educational Attainment In tern-is of educational attainment, the jurisdictions of Western Riverside County vary from one another. Countywide, about 50 percent of residents 25 or over had a high school diploma or equivalent, compared to 43 percent in the state. Nearly 27 percent of the state's adults had a bachelor's degree or advanced degree, compared to about 17 percent in Riverside County. The individual communities profiled below showed similar patterns to the county. The percentage of adult residents over 25 with a bachelor's degree or higher ranged from 7 percent in Perris to 14 percent in Moreno Valley. In San Jacinto, about 9 percent of the population over 25 had a bachelor's degree or further education. Figure 111-6 Educational Attainment by Jurisdiction, 2000 However, recent trends indicate that the educational level of residents in Western Riverside County is rising, as middle-income households from coastal counties (Orange County, San Diego County, and Los Angeles County) relocate into the Inland Empire, due to the lower cost of new housing and expanding employment opportunities in the region. Economics Research Associates Project No. 16070 111-9 Market Assessment and Economic Development Strategy for the Ramona-Sanderson Corridor 100% • 90% 80% • 70% 60% 50% 40% 30% 20% 10% 0% Income Distribution According to the 2000 Census, the various communities of Riverside County varied in household income distribution. As shown below, Hemet and San Jacinto had a higher percentage of low-income residents than the county of Riverside and the state of California. In 1999, approximately 36 percent of Hemet households and 33 percent of San Jacinto households had incomes under $20,000. By contrast, 21 percent of Riverside County and 20 percent of California households had incomes under $20,000. Similarly, Hemet and San Jacinto had a smaller percentage of wealthy households earning over $100,000, at three and four percent, respectively, compared to the county (12 percent). Figure 111-7. Distribution of Household Income by Jurisdiction, 1999 Distribution of Household Income by Jurisdiction Riverside Herret Moreno Valley Perris San Jacinto California County Less than $10,000 m $10,000 -$19,999 0 $20,000- $29,999 0 $30,000- $39,999 is $40,000- $49,999 El $50,000- $59,999 $60,000 - $74,999 Q $75,000- $99,999 gi $100,000 - $149,999 ts $150,000 + Source: US Census 2000; Economics Research Associates, 2005. Median household income was significantly lower in Hemet and San Jacinto than in neighboring Moreno Valley and in the overall county. In 1999, median household income in Hemet was $26,800 and $30,600 in San Jacinto, compared to $42,900 in Riverside County. The median household income in Moreno Valley was higher than the county's at $47,400, and very close to the state median of $47,500. Economics Research Associates Project No. 16070 III-10 Market Assessment and Economic Development Strategy for the Ramona-Sanderson Corridor $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $4/,40U $42,900 $35,500 Median Household Income by Jurisdiction Riverside Hemet Moreno Valley Perris San Jacinto California County OR A Figure 111-8. Median Household Income by Jurisdiction, 1999. Source: US Census 2000; Economics Research Associates, 2005. However, with new homes selling in the $300,000 to $400,000 range in the San Jacinto Valley, median household incomes have risen since 2000 and will continue to increase rapidly in the decade ahead. Population Growth Forecasts Forecasts by the Southern California Association of Governments (SCAG) show that the region's rapid growth is expected to continue well into the next 20 years. By 2030, SCAG estimates that Western Riverside County will add another million residents for a total population of 2.4 million, with 400,000 new homes and 470,000 new jobs fueling this growth. The growth rate in Riverside County will outpace San Bernardino, San Diego, Orange County and Los Angeles County from 2000 to 2025. Most of the population increase is forecast to come from domestic migration and high birth rates. In 2003, WRCOG attributed 20 percent of the population growth in the county to natural increase, and 80 percent to net migration. All of the communities within Western Riverside County are expected to see significant growth, with the exception of Norco and Canyon Lake. Economics Research Associates Project No. 16070 Market Assessment and Economic Development Strategy for the Ramona-Sanderson Corridor ATTACHMENT B Key Items from the January 5, 2006 Ramona Expressway/Sanderson Avenue Informational Meeting On Thursday, January 5 th , at the San Jacinto Community Center, Bill Lee from the Economic Research Associates gave an overview of the final findings of the Ramona Sanderson Market Assessment to stakeholders and property owners in attendance. Representatives from Rosenow Spevacek Group (RSG) attended the meeting to provide information and facilitate the meeting. The main issues raised during the meeting included the following: • Specific location of the Town Center/Civic Center. o Several locations were shown in the Assessment. The actual location is dependent upon City discussion and action. • Alternative Freeway locations, including why was the southern alignment favored? o Mr. Lee noted reasons for recommending the southern alignment, including the existing aqueduct as a barrier and combining physical constraints in one location and providing a physical separation to potential residential uses to the south. • Does the study assumes that land is consolidated when is actually divided into different lots? o The study considered that the area encompasses lots that are owned by different property owners. • Was there a recommended location for the medical facilities? o The Assessment indicated a future need for medical facilities, however, no specific locations were identified. • What type of commercial business does the Study recommend? o The Assessment recommends varying commercial businesses, which could include major and minor retail, power centers, and destination commercial. • Will the General Plan be updated? o The General Plan is in the process of being updated, with Planning Commission hearings scheduled for the end of February. • Does the General Plan include specific land uses? o No, the General Plan identifies the area as "Specific Plan", which would require the development of a specific plan to specify parcel by parcel land- uses. • Are there any new developments taking place within the Study Area? o Yes, the City has continued to process applications for development. • Comments where made that the acreage for commercial and office areas was too aggressive. o Mr. Lee noted that the land uses were projected over a period of time and considering the build out potential for the area. • What would happen if property owners within the Study Area want to develop their land now? o At this time, they could submit an application for processing. • Would the City Council consider rolling the Study into the General Plan? o This would be something that only the City Council could respond. However, since the City has been in the process of updating it's General Plan for approximately five years, at this time, staff would not recommend a delay to accommodate land uses for the area. • What is the difference between Specific Plan, the General Plan, and the Study? o A specific plan would identify parcel specific land uses, infrastructure needs, financing, land use criteria, and processing. The General Plan provides the general land uses on a city-wide basis, as well as, general goals and objectives for the City. The Market Assessment provides an economic analysis and recommendations, specifically for the Ramona/Sanderson Gateway Area. • Should the City Council decide to undergo a Specific Plan for the entire Study Area, how would that process work? o The City would hire a planning firm to conduct the specific plan process. The cost to prepare the plan would need to be determined. • Is the input by property owners within the Study Area in comparable to the findings of the Study? o Mr. Lee indicated that based upon his meetings, the percentage of land uses was in line with what most of the property owners he met with were interested in. • Concerns about how the final alignment of the Ramona Expressway is going to affect property owners. o The City has not decided which alignment would be recommended. • Should a Specific Plan be decided for the entire Study Area how would the City incorporate those property owners that want to hold on to their land? o The specific plan process would include the property owners and provide them an opportunity to comment. The final outcome would be based upon the specific plan process. • A comment was made that the aggressive long term commercial strategy in the Assessment is not in the best interest of property owners that want to develop their land sooner. o The Assessment was conducted to determine the highest and best uses for the City of San Jacinto and not necessarily on a parcel specific basis. • Can property owners negotiate with the City Council the ratios allocated for specific land use in the Study Area? o The Assessment is a document to be used as a guide for future development and therefore, Mr. Lee noted the opportunity for negotiation. ATTACHMENT C Ramona Expressway/Sanderson Avenue Market Asssement November 16, 2005 Stakeholder Meeting Notes Mr. Bill Lee from Economics Research Associates (ERA) presented a summary of his findings included in the Market Assessment and Economic Development Strategy for the Ramona Expressway/Sanderson Avenue. Copies ERA's PowerPoint presentation and the Draft Executive Summary were distributed. The following provides a summary of some of the questions and discussion items: • Several questions were posed regarding the methodology of the Assessment. o Mr. Lee provided an overview, based upon the information included in the Study. • Does the Commercial percentage include the 3,000 acres that Hemet is annexing? o The general area was taken into consideration in the Study. Does the Assessment project build out? o The Assessment projects out a thirty year period. • Town Center discussion, location, negotiation opportunities, dedication of land. o Mr. Lee included several potential sites for a Town Center and he provided an overview of his methodology. Staff noted that the City Council has not discussed a location for a Town Center and that this discussion opens the door. The City has not taken a position on a Town Center location, at this time. • ERA recommended the southern Mid-County Parkway alignment — was there a consideration of lost RDA tax increment? o Mr. Lee noted that he believed the benefits outweigh the loss of revenue. The City has not taken a position on the alignment. • Economic viability of the land, long-term vs. absorption. o Mr. Lee indicated that in his Assessment, he did take a long term view of the Corridor and potential opportunities. • A comment was noted that zoned land doesn't mean that it will ultimately be built. The Assessment references the economics for the area, not specific land use designations. Many property owners expected that there would be some reference to specific land uses. Therefore, they could provide limited comments, since they really did not know the impacts to their specific property. The Stakeholders requested an opportunity to review the Study. Staff concurred with the request. The Assessment would be presented to the City Council after the first of the year. Specific dates were being reviewed. ATTACHMENT D Other general comments, provided to staff on the Assessment. • The amount of commercial included in the Assessment seems higher than the area can support in the short term. o The Assessment projects out development over a thirty-year period. • If the City moves forward with designating land uses, based upon the Assessment and the property owners must hold their property, how will the City compensate them? o The City, as part of its normal business, identifies land uses in the form of Zoning and the General Plan, based upon the needs of the City. The City does not provide compensation for properties being held for future development. • The property owner that owns the property adjacent to the Mobil Station requests a commercial designation. • If the City determines a specific plan is the process to follow, who will pay for preparation of the plan? o The City Council will consider financial alternatives. • Will applications in process continue to be processed? o The City Council has not indicated a hold on development applications. The City is currently processing development applications within the Corridor. 1 ATTACHMENT E Market Profiles & Real Estate Research and Consuhants for over 30 years January 20, 2006 Honorable City Council City of San Jacinto c/o Mary E. Lanier ROSENOW SPEVACEK GROUP, INC. 309 West Fourth Street Santa Ana, CA 92701 RE: ERA REPORT RAMONA EXPRESSWAY/SANDERSON AVENUE CORRIDOR Dear Lady and Gentlemen: The following letter summarizes a review of the Economics Research Associates (ERA) report, which was performed pursuant to a contract awarded to ERA by the City of San Jacinto, regarding the Ramona-Sanderson Corridor. The review was based on the more than 30 years of experience of our firm and my personal experience over a similar period in conducting real estate-related research and consulting throughout the area. For your reference, attached to this letter is a copy of my professional resume. In preparation of this analysis, we have read the ERA report, analyzed its methodology and conclusions, and compared those conclusions to the ones in a report prepared by Market Profiles (MP) in 2005 on the same subject. ERA estimates a total of 1,700 acres in their study area, while MP's report was based on a 1,400-acre total. The ERA report is organized into seven sections, including an Introduction (Section l), Executive Summary and Recommendations (Section II) and Economic/Demographic Trends (Section III). The remaining four sections address each of the potential land use elements, with four of the five sections (IV, V, VI and VII) presenting detailed statistics- based analyses of demand for non-residential uses. The Residential demand section (IV) is presented as an "overview", based largely on summary statistical data that does not address the dynamics of the market that typically are found through primary research. The most significant findings of the ERA report are contained in Section II (Executive Summary and Recommendations). In that section, ERA presents its recommendations for allocations of land to various uses, including commercial, civic, transportation and flood control, and residential. In addition, Section II contains an extensive analysis of the Civic facilities, as well as Transportation and Flood Control and Community Center that the city requires. A portion of Section II recommends strategies for "negotiations with major land owners" 200 North Tustin Avenue, Suite 102, Santa Ana, Ca. 92705 (714) 546-3814 Fax (714) 546-0953 Market Profiles of California and essentially says that residential entitlements should be conditioned on the dedication of large areas of land for future commercial and civic needs of the area. Following are key observations regarding the ERA recommendations. Li Table 11-1 in the ERA report shows that there is total projectable demand (based on their 2025 mid-point forecast) for 473 acres' of "Commercial and Civic Uses." At that point, ERA states that the city's population will grow to nearly 90,000, although "additional growth" is expected after 2025. O Apparently on the basis of this "additional growth", ERA projects an additional 297 acres of need for non-residential uses in the Gateway area, and thus recommends that a total of 770 acres (45 percent of the 1,700-acre total) be reserved for future development of non-residential uses. O In addition to the 770 acres of non-residential uses, ERA "assumes" an additional 500 acres for "transportation or other infrastructure and open space systems," leaving just 430 acres (25 percent) for residential development. In comparison, the MP report allocated approximately 990 acres (71 percent of the study area) to residential uses across a range of densities. While the ERA report presents a great deal of statistical background, it appears that the findings and recommendations are based more on City-directed policy considerations than on a true demand-based analysis of the area. Further, the ERA recommendations ignore certain planning principles that typically govern the placement of various land use elements. D The policy goals (characterized as "economic development objectives") are contained in Section 1, and it appears that they are the basis for ERA's heavy emphasis on providing for "retail goods and services . . . jobs . . . tax revenues . . . and creating a community core", rather than providing for the documented market-based needs of the community for housing. In fact, ERA says in its own statement (on page IV-5) that : "The issue in the Ramona Sanderson Corridor is the risk [emphasis added] of strong single-family demand pre-empting other land uses important to the community's future in terms of jobs, taxes and a unique sense of place." O The projected acreages for non-residential uses appear to be totally policy-directed (rather than market-based), even in the context of ERA's own demand projections. As the report states (Table 11-1), by 2025 there could be demand for up to 473 acres of non-residential uses, with an additional 293 acres reserved for "future uses." This is an increase of 63 'Excluding from the calculation 150 acres for uses apparently not anticipated over the next 20 years (i.e., Medical Campus, Town Center and Community Center). Page 2 I120/2006 Market Profiles of California percent of acreage in such uses, even though ERA implies that additional household growth in the area might be just 25 to 30 percent 2 . U By placing the commercial uses at the northernmost end of San Jacinto Valley (at the base of foothills), it creates a trade area for those businesses (particularly the retail ones) that is semi-circular in shape (rather than the typical circle), due to the largely undevelopable state of most of the land to the north of the plan area. Thus, the businesses that ERA expects to attract must be willing to agree that such a plan can draw from an area to the south (probably extending into Hemet and Menifee) and possibly west (into Romoland and Penis), wide enough to be able to justify their locating within the study area. D Given that there will be significant new commercial activity built throughout the area (including well in excess of 1 million additional square feet along the better-positioned 215 Corridor), the prospects for locating significant numbers of retailers at the northern extremity of the area are difficult, at least in the time frame that ERA suggests. Retailers have demonstrated a strong preference to locate near major transportation corridors, and — although the subject area will be at the intersection of two major traffic arteries — the 215 Corridor will carry significantly more traffic than either of the improved roadways. D At typical planning parameters (in FAR terms), ERA is calling for land that will allow for development of more than 4 million square feet of commercial retail space 3 within the study area. ERA reports that San Jacinto's share of Riverside County's taxable retail sales in 2003 was just 0.3 percent. The projected 4 million square feet of new space is equal to approximately 20 percent of all current retail space in the two-county Inland Empire area, and is about twice the total in the world-class South Coast Plaza shopping center in Orange County. We appreciate the opportunity to offer these comments, and would be pleased to expand on them as requested. Thank you for your interest. Sincerely, MARKET PROFILES INC. Robert Reicher Principal 2 This figure is based on ERA's projected expanded areas for such population-based services as Retail Commercial and Office Business Park, as summarized in Table 11-1. 3 To put that into perspective, in the entire Inland Empire (all of Riverside and San Bernardino Counties), ERA estimates that there currently is a total of 85 million square feet of retail space, and that a total of about 4.2 million square feet of retail space was built throughout Inland Empire during 2004. Page 3 1/20/2006 ROBERT REICHER PRINCIPAL Mr. Reicher has been active in the real estate development industry since 1970. Prior to joining Market Profiles, he has held positions as Manager-in-Charge of real estate consulting for Deloitte & Touche, as well as Principal with Economics Research Associates, Director of Operations for The Goodkin Group and Director of Research for a major multi-market developer/builder. Mr. Reicher has been involved in the planning, processing, development, building and marketing of major residential, resort and commercial/mixed use developments, ranging from free-standing residential income properties to large-scale, multi-use resorts and planned communities across the U.S., as well as in Canada, Japan and other Pacific Rim countries. Among Mr. Reicher's areas of experience and expertise are the following: • Market and financial feasibility studies of residential, retail/commercial, office, industrial, resort/hotel, and mixed use projects. • Creation of development, advertising and marketing plans for planned community and resort projects at various stages of project life cycle • Consumer and trade focus group studies and surveys • Acquisition and disposition analysis for major commercial and industrial property transactions and 1031 exchanges • Preparation of project pro formas and other due diligence materials for debt and equity offerings or transaction decision-making • Creation of marketing plans for workout of troubled projects • Strategic business plans for start-up entities and ongoing operations or restructuring of existing companies • Structuring and negotiation of major property purchase and financing packages • Expert witness and consulting for complex commercial litigation involving office, hotel, resort, and retail properties • Valuation of undeveloped land and developed commercial properties • Fiscal impact and economic impact analysis of proposed developments • Public/private development programs for local governments Mr. Reicher holds a BS degree from University of California Los Angeles and MBA in Marketing from University of Southern California. His expertise in residential and commercial real estate has been utilized in an expert witness capacity before various boards, commissions and courts. He also is a licensed Real Estate Broker in the State of California. i Market Profiles ATTACHMENT F February 7, 2006 COUNCIL MEETING DATE FEBRUARY 16, 2006 MARKET ASSESSMENT AND ECONOMIC DEVELOPMENT STRATEGIES FOR THE RAMONA-SANDERSON CORRIDOR Dear Sir or Madam: The City Council will consider action on the completed Market Assessment and Economic Development Strategies, prepared by Economics Research Associates (ERA) for the Ramona/Sanderson Corridor, during their regularly scheduled meeting on February 16, 2006 City Council Meeting at 7:00 p.m. at: City of San Jacinto City Council Meeting San Jacinto Unified School District Board Room 2045 South San Jacinto Avenue San Jacinto, CA 92583 The Staff Report, with attachments, is anticipated to be available on Friday afternoon, February 10, 2006. Those on the email list will be sent an electronic copy. If you would like a copy sent or emailed, please contact Zoe Urrutia at (714) 541-4585 extension 126. Please feel free to contact me at (949) 701-1606, if you have any questions, or need additional information. Sincerely, ROSENOW SPEVACEK GROUP Mary E. Lanier Senior Associate AGENDA ITEM 5,3 I February 6, 2006 The Honorable Mayor and Members of the City Council FROM: Dorothy L. Chouinard, City Clerk SUBJECT: Local Appointments List / Agency / Committee / Subcommittee / Appointments RECOMMENDATION: ) Consider Mayor's selection to Local Appointments List with confirmation by Council for the outside agencies. 2) Consider Mayor's selection of Standing Committees, and absent unanimous consent, approve by majority vote the desired slate. BACKGROUND: Subcommittee and agency representatives' appointments are made annually. Historically, at the second meeting in December the mayoral appointments are made for 1) representatives to other agencies; and 2) City Council subcommittees. December's second meeting was adjourned to January 5, 2005 and subsequently, the appointments agenda item was continued until a full council would be present. DISCUSSION: In the "City of San Jacinto City Council Orientation Handbook" the Council Committees are Planning Commission, Community Preservation Committee, Estudillo Mansion Committee, Accessibility Appeals Board and Cultural Advisory Commission, which are appointments made during different times of the year. The subcommittees' appointments are made annually, unless a vacancy occurs. It is not unusual for the subcommittees to change on an annual basis as needs arise. BUDGETARY IMPACT: None ATTACHMENTS: None Page 1 of 1 AGENDA REGULAR MEETING of the SAN JACINTO REDEVELOPMENT AGENCY of the CITY OF SAN JACINTO FEBRUARY 16, 2006 Immediately Following the Regular City Council Meeting San Jacinto Unified School District Board Room 2045 South San Jacinto Avenue, San Jacinto, California ORGANIZATION 1.1 Call to Order 1.2 Roll Call PUBLIC COMMENTS Now is the time for the public to address the Agency on any subject not listed on the agenda. Any person may address the Agency on any subject pertaining to Redevelopment Agency business not listed on the Agenda during this portion of the Meeting. A limitation of three (3) minutes shall be set for each person desiring to address the Agency Directors. CONSENT CALENDAR The matters listed under Consent Calendar are considered routine and will be enacted by one motion by Agency Members in the form listed. There will be no separate discussion on these items prior to the motion unless members of the Redevelopment Agency, staff or the public requests a specified item be removed and/or discussed. 3.1 June 30, 2004 Regular Meeting Minutes / Approve / City Clerk 3.2 November 4, 2004 Special Meeting Minutes I Approve / City Clerk 3.3 February 2, 2006 Regular Meeting Minutes / Approve / City Clerk PUBLIC HEARING None Redevelopment Agency Agenda February 16, 2006 Page 2 of 2 CITY DEPARTMENTS 5.1 Market Assessment and Economic Development Strategies for the Ramona Expressway / Sanderson Gateway Area / Receive and File; Direct staff to solicit proposals for the preparation of a specific plan to identify lands uses, infrastructure, design and financing; Use said document as a guide for the development of a specific plan for said area; Direct staff to identify a funding mechanism to finance the preparation of the specific plan and include the stakeholders during the process of preparing the specific plan / Community Development Director and Consultant 5.2 FY 2005-06 RDA Mid —Year Budget Adjustments / Approve and Appropriate $54,165 in Expenditures / Finance Director CHAIRPERSON / MEMBER REPORTS / DISCUSSIONS None OPEN SESSION ANNOUNCEMENTS CLOSED SESSION None ADJOURNMENT It is the intention of the City of San Jacinto to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please contact City Hall at (951) 537-6358, at least 48-hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible. If you challenge any action of the Redevelopment Agency Board in court, you may be limited to raising only those issues you or someone raised at the public hearing described in this notice, or in written correspondence delivered to the Redevelopment Agency (c/o Redevelopment Secretary) at, or prior to, the public hearing. I, Dorothy L. Chouinard, Secretag of the San Jacinto Redevelopment Agency, do hereby certify that I caused to be posted the foregoing agenda the 10 ,6 day of Te6rualy, 2006, as required by law. Dorothy L. Chouinard, Agency Secretary AGENDA ITEM 3.1 February 16, 2006 TO: The Honorable Mayor and Members of the City Council FROM: Bernie Simon`— Finance Director SUBJECT: Approve Warrant Register for Warrants, Prepaid Checks, and Payroll Checks — Government Code 37200 RECOMMENDATION: By motion, approve the warrant register for the warrants, prepaid items, and payroll checks issued since the. last Council meeting, for the period ending February 16, 2006 BACKGROUND: The Council, acting in its oversight role, formally reviews disbursements made through the A/P warrant registers and payroll checks. DISCUSSION: All warrants, pre -paid checks, and payroll checks require Council approval. The following are the warrant and check numbers for this cycle: Warrant/Prepaid.# s Cycle Dates Payroll Checks Cycle Date 74001-74218 February 16, 2006 17601-17616 February 16, 2006 Payroll information is available for Council review in the Finance Department. ALTERNATIVES: 1) Approve Warrant Register 2) Decline to Approve FISCAL IMPACT: Adequate funds have been budgeted to cover the subject expenses. ATTACHMENTS: 1 — Detailed listing of invoices paid and warrant register. Approvals City Manager: ('-d`) Finance Director: Page 1 of 1 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74001 1/23/06 California state controller REQUEST 1/23/06 Fees for audit 04/05 010-1400-414.30-90 100.00 100.00 74004 1/27/06 A.a. chamberlain & assoc. REQUEST 1/12/06 Reim water dep # 00005110 050-0000-229.08-70 500.00 500.00 74005 1/27/06 Abm janitorial services 2535190 01/06 cleaning services 010-1400-414.34-05 520.00 520.00 74006 1/27/06 AI's kubota tractor 199645 201090 201091 Supplies Supplies Supplies 010-7100-410.33-30 010-7100-410.33-30 010-7100-410.33-30 32.27 65.42 26.92 124.61 74007 1/27/06 Allen tire company 186869 Auto repair 010-7100-410.33-50 21.97 21.97 74008 1/27/06 American forensic nurses 21298 21313 21422 Analysis Analysis Analysis 010-3100-431.34-05 010-3100-431.34-05 010-3100-431.34-05 36.95 400.00 260.00 696.95 74009 1/27/06 Anady's trophies 55144 55162 Supplies Supplies 010-2500-425.21-10 010-2510-425.40-12 166.37 576.46 742.83 74010 1/27/06 Arrow printing 4539 4539 Supplies Supplies 010-1100-411.21-10 010-7400-425.21-10 59.80 19.94 79.74 74011 1/27/06 Ballard gas #1159 157140 Propane 010-3110-431.35-12 582.80 582.80 74012 1/27/06 Bio-tox laboratories 14446 14456 14457 Analysis Analysis Analysis 010-3100-431.34-05 010-3100-431.34-05 010-3100-431.34-05 339.06 83.53 35.00 457.59 74013 1/27/06 Blind man, the 96787 Blinds 010-3100-431.33-50 176.71 176.71 74014 1/27/06 Board of equalization REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 010-3100-431.33-10 069-3100-431.40-45 010-1700-417.21-10 010-3200-431.40-45 024-3100-431.33-30 010-1400-414.21-10 050-1400-414.21-10 055-1400-414.21-10 059-1400-414.21-10 050-9000-450.33-30 23.37 44.18 9.47 358.23 11.45 9.07 7.03 7.03 7.03 2,409.06 27,969.00 Page 1 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74014... 1/27/06... Board of equalization... REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 010-7101-410.33-30 096-1700-417.36-25 010-1110-411.21-10 010-1100-411.21-10 010-4150-410.33-30 082-3200-431.40-45 099-1700-417.30-16 010-1110-411.34-05 010-1111-411.30-90 055-4170-450.21-80 064-3100-431.40-45 010-7100-410.33-30 134.04 370.84 13.33 6.39 457.25 23,641.92 7.36 10.02 93.18 7.86 231.73 109.16 27,969.00... 74016 1/27/06 Ced consolidated electrical 2983-442472 2983-442477 Supplies Supplies 010-2500-425.33-10 010-2500-425.33-10 106.56 61.09 167.65 74017 1/27/06 Chevron 7898195974512 7898195974601 11/05 gasoline 12/05 gasoline 024-3100-431.21-70 024-3100-431.21-70 172.20 70.78 242.98 74018 1/27/06 Fitzpatrick contstruction REQUEST 1/17/06 Exterior gate repair 010-3100-431.33-10 168.75 168.75 74019 1/27/06 Hemet industrial supply 27658 Supplies 010-7100-410.21-80 56.54 56.54 74020 1/27/06 Hemet valley tool & supply 20516 Supplies 010-7100-410.21-80 79.74 79.74 74021 1/27/06 Home depot credit services 4022378 8127668 0023205 7122023 Supplies Supplies Supplies Supplies 010-7100-410.33-30 010-7100-410.33-10 010-7100-410.33-10 010-7100-410.33-10 172.24 43.10 179.50 119.45 514.29 74022 1/27/06 I.b. reprographics 57411 52067 61634 Digital master copy Digital master copy Comp of Ip well report 010-4100-410.21-10 080-9100-450.40-01 010-1200-412.21-10 35.58 236.26 46.26 318.10 74023 1/27/06 Infosend inc. 20514 20514 20514 Postage Postage Postage 050-1400-414.21-10 055-1400-414.21-10 059-1400-414.21-10 169.79 169.79 169.78 509.36 a.. -'2 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74024 1/27/06 Inland chevrolet CVCS195755 Auto repair 010-4150-410.33-50 555.50 555.50 74025 1/27/06 Long beach uniform co. 725256 734150 733665 740564 Uniform supplies 010-3100-431.21-35 010-3100-431.21-35 010-3100-431.21-35 010-3100-431.21-35 1,114.20 201.17 299.17 386.37 2,000.91 Uniform supplies Uniform supplies Uniform supplies 74026 1/27/06 Micro mobile 14511 Supplies 056-4150-410.33-50 93.62 93.62 74027 1/27/06 Mission uniform services, inc. 17981489 Carpet/mat supplies 010-4150-410.21-35 16.92 16.92 74028 1/27/06 Overnight industrial 29811 29850 Supplies Supplies 010-1400-414.21-10 010-2500-425.21-10 38.68 113.17 151.85 74029 1/27/06 Paetec communications, inc. 1928239 Telephone 010-3100-431.35-16 881.16 881.16 74030 1/27/06 Perma 1/12/06 Administrative fee 010-4150-410.33-30 50.00 50.00 74031 1/27/06 Pip printing 81068 Supplies 010-3100-431.36-10 17.00 17.00 74032 1/27/06 Pju telecomm 13517 13569 Telephone Telephone 010-2500-425.33-30 010-2500-425.33-30 64.50 64.50 129.00 74033 1/27/06 Reliable FBV26800 FBV26800 FBR20700 FBR20700 FBR21000 Office supplies Office supplies Office supplies Office supplies Office supplies 010-2500-425.21-10 010-1400-414.21-10 010-1200-412.21-10 010-4100-410.21-10 010-1110-411.21-10 286.04 74.41 23.29 72.01 24.77 480.52 74034 1/27/06 Riverside, county of REQUEST 1/17/06 Recordation fees 010-4100-410.21-10 64.00 64.00 74035 1/27/06 Shaw, ken REQUEST 1/17/06 Reim of flower purchase 010-2510-425.40-12 25.00 25.00 74036 1/27/06 Stk architecture, inc. 15934 15935 11/05 professional sery 11/05 professional sery 082-3200-431.40-01 082-3200-431.40-01 1,422.12 385.00 1,807.12 74037 1/27/06 Trans union Ilc 12562416 12562416 12562416 12/05 credit check fees 12/05 credit check fees 12/05 credit check fees 050-1400-414.21-10 055-1400-414.21-10 059-1400-414.21-10 37.54 37.54 37.55 112.63 74038 1/27/06 United communities network 2994 2994 12/05 main st clean up 12/05 vir lee/city hall 010-7100-410.34-05 010-2500-425.33-10 987.00 1,050.00 5,037.00 Page 3 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74038... 1/27/06... United communities network... 2976 Johnson-455 e 7th st 099-9700-470.40-01 3,000.00 5,037.00... 74039 1/27/06 Valley chronicle, the 3516644 3516645 Advertisement Advertisement 010-2510-425.40-09 010-2510-425.40-09 115.20 115.20 230.40 74040 1/27/06 Valley service connection 2967 2964 2966 2974 Requlsky-1600 s. san jaci Wawless-2150 san jac #9 Ruditis-144 old mt. road 11/05 322 main clean up 099-9700-470.40-01 099-9700-470.40-01 099-9700-470.40-01 010-2500-425.33-10 1,950.00 1,590.20 2,000.42 504.00 6,044.62 74041 1/27/06 Vista paint 52011530 Supplies 010-7101-410.33-30 116.81 116.81 74042 1/27/06 Vulcan materials company 481233 481234 Supplies Supplies 010-4150-410.33-30 010-4150-410.33-30 219.04 290.76 509.80 74043 1/27/06 Walker, george & ruth REQUEST 1/17/06 REQUEST 1/17/06 REQUEST 1/17/06 Reim credit acct#00022021 Reim credit acct#00022022 050-0000-308.09-10 050-0000-308.09-10 050-0000-308.09-10 96.34 127.11 86.92 310.37 Reim credit acct#20019034 74044 1/27/06 Xerox corporation 193502624 14172072 13671605 14291112 Supplies 11/05 lease on copier 10/05 lease on copier 11/05 lease on copier 010-3100-431.34-05 010-3100-431.34-05 010-3100-431.34-05 010-3100-431.34-05 92.67 527.86 182.81 182.81 986.15 74045 2/2/06 Layne christensen company REQUEST 02/01/6 Final billing 052-9000-450.40-01 173,850.00 173,850.00 74048 2/3/06 Abm janitorial services 2443815 2535184 2535180 3443811 12/05 cleaning service 01/06 cleaning service 01/06 cleaning service 12/05 cleaning service 010-3110-431.33-10 010-3110-431.33-10 010-3100-431.33-10 010-3100-431.33-10 148.00 148.00 842.00 842.00 1,980.00 74049 2/3/06 Adams, tiffany REQUEST 1/06/06 Reim water dep # 10021106 050-0000-229.08-70 250.00 250.00 74050 2/3/06 Al's kubota tractor 202793 Supplies 010-4150-410.21-80 5.00 5.00 74051 2/3/06 Alvarez, arthur REQUEST 1/06/06 Reim water dep # 20005045 050-0000-229.08-70 9.45 9.45 74052 2/3/06 American citi corp. 1066 1066 12/05 car washes 12/05 car washes 010-3300-431.33-50 010-1400-414.33-50 25.95 4.99 30.94 74053 2/3/06 Anady's trophies 53962 Plaques - vest/prince 010-3100-431.21-10 77.58 77.58 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74054 2/3/06 Andre landscaping service, inc. 10541 10554 10560 10561 10596 01/06 maintenance 01/06 maintenance 01/06 maintenance 01/06 maintenance 01/06 maintenance 010-7100-410.34-05 301-8833-500.34-05 010-6500-425.34-05 010-7100-410.34-05 302-8833-500.34-05 25,971.32 2,300.00 500.00 480.00 550.00 29,801.32 74055 2/3106 Apple -one employment services CA-4847887 CA-4851451 12/31/05 temp employees 01/07/06 temp employees 010-3300-431.30-90 010-3300-431.30-90 942.40 843.99 1,786.39 74056 213/06 Applied earthworks inc. 1248-07 12/05 historic strc repor 028-6500-425.40-01 2,178.42 2,178,42` 74057 2/3/06 Arrow printing 4541 4544 4544 4544 Office supplies Office supplies Office supplies Office supplies 010-3310-431.21-10 010-1700-417.21-10 096-1700-417.21-10 010-3300-431.21-10 205.80 103.44 103.44 103.44 516.12 74058 2/3/06 Astarabadi, lemia REQUEST 1/06/06 Reim water dep # 10029084 050-0000-229.08-70 2.74 2.74 74059 2/3/06 B & w pipe & supply 70387 70753 70882 71853 Supplies Supplies Supplies Supplies 010-7100-410.33-30 010-7100-410.33-30 010-7100-410.33-30 010-7100-410.33-30 11.00 214.51 62.41 68.96 356.88 74060 2/3/06 Bailey, dorothy REQUEST 1/06/06 Reim water dep # 20009101 050-0000-229.08-70 20.78 20.78 74061 2/3/06 Barrow construction inc. REQUEST 1/20/06 REQUEST 1/20/06 REQUEST 1/20/06 Romo-704 santa fe Redford-379 w 2nd street Ramos-575 hewitt street 099-9700-470,40-01 099-9700-470.40-01 099-9700-470.40-01 2,695.00 10,877.00 6,995.00 20,567.00 74062 2/3/06 Beach construction, inc. REQUEST 1/31/06 Material draw 096-9700-470.40-01 14,660.00 14,660.00 74063 2/3/06 Berkewel, mary ward REQUEST 1/06/06 Reim water dep # 30026082 050-0000-229.08-70 50.00 50.00 74064 2/3/06 Best best & krieger Ilp DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 12/05 legal services 12/05 legal services 12/05 legal services 12/05 legal services 12/05 legal services 12/05 legal services 096-1111-411.30-90 050-1111-411.30-90 010-1111-411.30-90 010-1700-417.30-90 065-0000-201.08-83 065-0000-201.08-10 565.50 446.97 22,353.85 11,881.42 339.00 1,389.95 40,912.08 Page 5 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74064... 2/3/06... Best best & krieger Hp... DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 12/05 legal services 12/05 legal services 12/05 legal services 12/05 legal services 12/05 legal services 12/05 legal services 12/05 legal services 12/05 legal services 065-0000-201.08-13 065-0000-103.12-68 033-8850-500.30-90 033-8850-500.30-90 026-7190-500.30-91 026-7190-500.30-91 026-7190-500.30-91 400-4150-500.30-90 900.45 415.50 423.84 527.34 517.50 517.50 517.50 115.76 40,912.08... 74066 2/3/06 Bio-tox laboratories 14572 14583 Analysis Analysis 010-3100-431.34-05 010-3100-431.34-05 703.60 288.08 991.68 74067 2/3/06 Blind man, the 96672 Blinds - 160 w 6th street 010-3100-431.33-10 536.60 536.60 74068 2/3/06 Boot barn IVC0000911 IVC0001046 IVC0001046 Boot purchase - baeza Boot purchase - d. frankl Boot purchase - j.grinder 050-9000-450.21-35 050-9000-450.21-35 010-7100-410.21-35 150.00 111.50 266.66 528.16 74069 2/3/06 Business press, the 12/26/05 Subscription 096-1700-417.21-10 59.00 59.00 74070 2/3/06 Caballero, jose REQUEST 1/06/06 Reim water dep # 00027001 050-0000-229.08-70 50.00 50.00 74071 2/3/06 California overnight 4954000 4954000 4954000 4954000 4954000 4954000 4954000 4954000 Postage Postage Postage Postage Postage Postage Postage Postage 026-7190-500.30-90 026-7190-500.30-90 033-8850-500.30-90 400-4150-500.30-90 400-4150-500.30-90 033-8850-500.30-90 010-3300-431.21-10 010-1700-417.21-10 6.62 3.19 3.19 3.19 4.14 4.12 11.22 24.25 59.92 74072 2/3/06 Cardenas, rosa REQUEST 1/06/06 Reim water dep # 10024074 050-0000-229.08-70 24.66 24.66 74073 2/3/06 Ced consolidated electrical 2983-442554 Supplies 050-9000-450.33-30 11.08 11.08 74074 2/3/06 Chavez, cesar REQUEST 1/06/06 Reim water dep # 00006065 050-0000-229.08-70 7.02 7.02 74075 2/3/06 Chavez, pedro REQUEST 1/06/06 Reim water dep # 00022078 050-0000-229.08-70 4.98 4.98 74076 2/3/06 Chayse, gila REQUEST 1/06/06 Reim water dep # 10029079 050-0000-229.08-70 50.00 50.00 0 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74077 2/3/06 Civic stone 2612 12/05 service 099-9700-470,40-01 948.67 948.67 74078 2/3/06 Clark, cher REQUEST 1/06/06 Reim water dep # 50022018 050-0000-229.08-70 17.34 17.34 74079 2/3/06 Clark, jeff REQUEST 1/06/06 Reim water dep # 20030073 050-0000-229.08-70 16.97 16.97 74080 2/3/06 Clark's towing and recovery S13657 Towing fees 010-4150-410.33-50 50.00 50.00 74081 2/3/06 Cnh homes REQUEST 1/24/06 REQUEST 1/24/06 Reim credit acct#00002383 Reim credit acct#00002013 050-0000-308.09-10 050-0000-308.09-10 15.16 25.23 40.39 74082 2/3/06 Contreras, ignacio REQUEST 1/06/06 Reim water dep # 20007108 050-0000-229.08-70 3.26 3.26 74083 2/3/06 Cordrey, april REQUEST 1/24/06 Reim water dep # 00001079 050-0000-229.08-70 1.39 1.39 74084 2/3/06 Corky's pest control, inc. STMT 01 /11 /06 01/06 pest control 010-3100-431.33-10 125.00 125.00 74085 2/3/06 David leonard associates 1-1-06 1-2-06 1-3-06 Planning srvc-villages Planning srvc-park hill Planning srvc-rancho estr 010-1700-417.30-90 010-1700-417.30-90 010-1700-417.30-90 437.50 274.12 275.92 987.54 74086 2/3/06 David taussig & associates, inc. 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 4,554.19 Page 7 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74086... 2/3/06... David taussig & associates, inc.... 5110112 5110112 5110112 5120133 5120134 5120202 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 12/05 annexation no. 23 12/05 annexation no. 24 12/05 special tax admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 034-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 25.00 25.00 25.00 477.95 497.48 1,330.92 87.40 87.00 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.64 4,554.19... 74090 2/3/06 Davis, jennifer REQUEST 1/24/06 Reim water dep # 00000350 050-0000-229.08-70 41.21 41.21 74091 2/3/06 Deleon, nohemi REQUEST 1/06/06 Reim water dep # 40019039 050-0000-229.08-70 24.79 24.79 74092 2/3/06 Dewey's electric 12/02/05 160 6th st-electrical sry 010-3100-431.33-10 347.40 347.40 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74093 2/3/06 Divines real estate REQUEST 1/06/06 Reim water dep # 20022090 050-0000-229.08-70 38.60 38.60 74094 2/3/06 Doherty, bill REQUEST 1/06/06 Reim water dep # 10016055 050-0000-229.08-70 50.00 50.00 74095 2/3/06 Drew, sirod REQUEST 1/06/06 Reim water dep # 40016023 050-0000-229.08-70 4.05 4.05 74096 2/3/06 Dudek & associates, inc. 20056176 10/29/05-11/25/05 010-1700-417.30-90 1,827.32 1,827.32 74097 2/3/06 E.s. babcock & sons, inc. AA60698-0278 AA61056-0278 AA61224-0278 AA61698-0278 AA61782-0278 Analysis Analysis Analysis Analysis Analysis 050-9000-450.33-30 050-9000-450.33-30 050-9000-450.33-30 050-9000-450.33-30 050-9000-450.33-30 60.00 90.00 48.00 30.00 20.00 248.00 74098 2/3/06 Eastern municipal water district REQUEST 1/26/06 Water sewer agrmt fee 082-3200-431.40-01 4,400.00 4,400.00 74099 2/3/06 Encinias, louise REQUEST 1/06/06 Reim water dep # 10001116 050-0000-229.08-70 20.77 20.77 74100 2/3/06 Esgil corporation 01-06-0031 12/05 plan check services 010-3300-431.34-05 5,794.10 5,794.10 74101 2/3/06 Evans, catherine REQUEST 1/06/06 Reim water dep # 10016033 050-0000-229.08-70 11.35 11.35 74102 2/3/06 Excell security systems 11979 01/06-03/06 monitoring 010-3110-431.33-10 89.95 89.95 74103 2/3/06 Federal express 3-288-24470 Postage 033-8850-500.30-90 15.54 15.54 74104 2/3/06 Fm lock and safe 44706 Change/install lock 010-3100-431.33-10 693.18 693.18 74105 2/3/06 Fonseca, jose REQUEST 1/24/06 Reim water dep # 00001970 050-0000-229.08-70 42.75 42.75 74106 2/3/06 Gernay, simona REQUEST 1/06/06 Reim water dep # 30028054 050-0000-229.08-70 27.96 27.96 74107 2/3/06 Gfb-friedrich & assoc., inc. 0512-17 0512-18 0512-19 0512-20 0512-21 0512-22 0512-22 0512-22 12/05 Ilpd no2 annex 39 12/05 Ilpd no2 annex 11 12/05 Ilpd no2 annex 50 12/05 Ilpd no2 annex 51 12/05 Ilpd no2 annex 52 12/05 Ilpd no2 master map 12/05 Ilpd no2 master map 12/05 Ilpd no2 master map 026-7190-500.30-90 026-7190-500.30-90 026-7190-500.30-90 026-7190-500.30-90 026-7190-500.30-90 026-7190-500.30-90 026-7190-500.30-90 026-7190-500.30-90 130.00 65.00 3,622.37 1,749.72 1,884.27 56.67 56.67 56.66 7,621.36 74108 2/3/06 Gonzales, gilbert REQUEST 1/25/06 Reimbursement -fuel purcha 056-4150-410.21-70 49.52 49.52 74109 2/3/06 Green, debbie REQUEST 1/06/06 Reim water dep # 10030070 050-0000-229.08-70 11.99 11.99 Page 9 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74110 2/3/06 Gutierrez, jose REQUEST 1/25/06 Reim water dep # 00002273 050-0000-229.08-70 111.03 111.03 74111 2/3/06 Hall, christopher REQUEST 1/17/06 Per diem -offices assoc. 010-3100-431.31-20 160.00 160.00 74112 2/3/06 Hammerlund, jack REQUEST 1/06/06 Reim water dep # 10013020 050-0000-229.08-70 30.99 30.99 74113 2/3/06 Hearing impaired foundation REQUEST 1/24/06 Reim water dep # 00002065 050-0000-229.08-70 44.73 44.73 74114 2/3/06 Hemet rubber stamp 47925 48052 48052 48052 48134 48324 Office supplies Office supplies Office supplies Office supplies Office supplies Office supplies 010-3100-431.21-10 055-1400-414.21-10 050-1400-414.21-10 059-1400-414.21-10 010-3100-431.21-10 010-3100-431.21-10 104.70 7.72 7.72 7.73 17.78 112.54 258.19 74115 2/3/06 Hess, chris REQUEST 1/06/06 Reim water dep # 20001076 050-0000-229.08-70 32.76 32.76 74116 2/3/06 Hinchliff, nick & ellen REQUEST 1/06/06 Reim water dep # 10003152 050-0000-229.08-70 24.62 24.62 74117 2/3/06 Hogle-ireland 9230 9230 9230 9230 9230 9230 9230 12/04/05-12/31/05 planchk 12/04/05-12/31/05 planchk 12/04/05-12/31/05 planchk 12/04/05-12/31/05 planchk 12/04/05-12/31/05 planchk 12/04/05-12/31/05 planchk 12/04/05-12/31/05 planchk 010-1700-417.30-90 010-1700-417.30-90 010-1700-417.30-90 010-1700-417.30-90 010-1700-417.30-90 010-1700-417.30-90 010-1700-417.30-90 546.25 150.00 926.25 150.00 142.50 213.75 237.50 2,366.25 74118 2/3/06 Home depot credit services 3109389 5103638 8564476 5116340 Supplies Supplies Supplies Supplies 010-3110-431.33-10 010-3110-431.33-10 010-3300-431.21-10 010-3100-431.33-10 135.37 102.11 50.03 6.12 293.63 74119 2/3/06 Horizon water 1/09/06 MODULAR 1/09/06 VIRGINA 01/06 drinking water 01/06 drinking water 010-3300-431.34-05 010-1700-417.34-05 7.50 15.00 22.50 74120 2/3/06 Huizar, jose & maria REQUEST 1/06/06 Reim water dep # 10008057 050-0000-229.08-70 8.29 8.29 74121 2/3/06 Islas, victor REQUEST 1/06/06 Reim water dep # 50026007 050-0000-229.08-70 6.46 6.46 74122 2/3/06 J & j automotive 20887 20895 Auto repair Auto repair 010-3100-431.33-50 010-3100-431.33-50 31.95 31.95 177.10 Pas '.0 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74122... 2/3/06... J & j automotive... 20896 20897 20708 Auto repair Auto repair Auto repair 010-3100-431.33-50 010-3100-431.33-50 010-4150-410.33-50 41.95 41.95 29.30 177.10... 74123 2/3/06 J & r concrete prod. inc. 27023 Supplies 050-9000-450.33-30 306.44 306.44 74124 2/3/06 James, ray REQUEST 1/06/06 Reim water dep # 10010060 050-0000-229.08-70 11.99 11.99 74125 2/3/06 Kearny realty REQUEST 1/06/06 Reim water dep # 30029009 050-0000-229.08-70 16.63 16.63 74126 2/3/06 Kimmel-france management REQUEST 1/24/06 Reim water dep # 00002284 050-0000-229.08-70 112.69 112.69 74127 2/3/06 Kustom signals, inc. REQUEST 12/5/05 REQUEST 12/5/05 Digital system Pro laser iii 024-3100-431.40-45 024-3100-431.40-45 7,164.36 4,010.60 11,174.96 74128 2/3/06 Lane, curtis & marianne REQUEST 1/24/06 Reim water dep # 00000326 050-0000-229.08-70 124.24 124.24 74129 2/3/06 Lattimer, allison REQUEST 1/06/06 Reim water dep # 10002061 050-0000-229.08-70 6.60 6.60 74130 2/3/06 Leach, archie REQUEST 1/06/06 Reim water dep # 10015082 050-0000-229.08-70 7.49 7.49 74131 2/3/06 Lebeau, joyce REQUEST 1/06/06 Reim water dep # 10014036 050-0000-229.08-70 22.11 22.11 74132 2/3/06 Lizza, virginia REQUEST 1/06/06 Reim water dep # 20002004 050-0000-229.08-70 6.83 6.83 74133 2/3/06 Lofgren, bradley REQUEST 1/06/06 Reim water dep # 10001018 050-0000-229.08-70 50.00 50.00 74134 2/3/06 Lopez, aurelio REQUEST 1/06/06 Reim water dep # 00004043 050-0000-229.08-70 4.60 4.60 74135 2/3/06 Lumbattes, pat REQUEST 1/06/06 Reim water dep # 20006087 050-0000-229.08-70 13.26 13.26 74136 2/3/06 Malcolm smith motorsports 99457450 Auto repair 024-3100-431.33-50 979.86 979.86 74137 2/3/06 May, martha REQUEST 1/06/06 Reim water dep # 20011079 050-0000-229.08-70 24.66 24.66 74138 2/3/06 Mcclure, recil REQUEST 1/06/06 Reim water dep # 20021091 050-0000-229.08-70 3.29 3.29 74139 2/3/06 Mcfadden, david REQUEST 1/06/06 Reim water dep # 20032068 050-0000-229.08-70 11.45 11.45 74140 2/3/06 Mcgargill, mark REQUEST 1/06/06 Reim water dep # 30024096 050-0000-229.08-70 50.00 50.00 74141 2/3/06 Mcnatt, John REQUEST 1/06/06 Reim water dep # 10002204 050-0000-229.08-70 8.58 8.58 74142 2/3/06 Michell, benito REQUEST 1/06/06 Reim water dep # 20018082 050-0000-229.08-70 10.91 10.91 74143 2/3/06 Mission uniform services, inc. S 80545 17981488 17981488 17981490 Uniform supplies Uniform supplies Uniform supplies Uniform supplies 010-4150-410.21-35 050-9000-450.21-35 055-4170-450.21-35 010-7100-410.21-35 3.53 37.51 17.73 24.57 409.11 Page 11 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74143... 2/3/06... Mission uniform services, inc.... 17981491 17981500 17982397 17982397 17982398 17982400 17982408 S 02056 S 80097 Uniform supplies Uniform supplies Uniform supplies Uniform supplies Uniform supplies Uniform supplies Carpet mats Uniform supplies Uniform supplies 010-4150-410.21-35 010-1400-414.33-10 050-9000-450.21-35 055-4170-450.21-35 055-4170-450.21-35 010-4150-410.21-35 010-1400-414.33-10 050-9000-450.21-35 050-9000-450.21-35 51.60 17.49 41.94 13.64 16.92 51.60 17.49 57.54 57.55 409.11... 74144 2/3/06 Munoz, charlene REQUEST 1/24/06 Reim water acct# 00001468 050-0000-229.08-70 66.39 66.39 74145 2/3/06 Munoz, silva REQUEST 1/06/06 Reim water dep # 30019074 050-0000-229.08-70 16.92 16.92 74146 2/3/06 National association of shcool 14985MI Membership fees 010-3100-431.30-90 30.00 30.00 74147 2/3/06 National safety compliance, inc. 32266 Annual administration fee 010-1210-412.30-90 150.00 150.00 74148 2/3/06 Nextel communications REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular equipment 12/05 cellular equipment 010-1100-411.35-17 010-1110-411.35-17 010-1200-412.35-17 010-1400-414.35-17 010-1700-417.35-17 010-3300-431.35-17 010-4150-410.35-17 010-4200-410.35-17 010-7100-410.35-17 029-8662-410.35-17 050-9000-450.35-17 055-4170-450.35-17 096-1700-417.35-17 102-1400-500.35-17 010-1400-414.35-17 010-1400-414.35-17 480.82 72.70 89.28 124.59 132.49 437.14 245.16 132.49 209.76 105.20 245.78 60.94 112.31 59.47 34.47 34.47 2,909.24 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74148... 2/3/06... Nextel communications... REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 12/05 cellular equipment 12/05 cellular equipment 12/05 cellular equipment 12/05 cellular equipment 12/05 cellular equipment 12/05 cellular equipment 12/05 cellular equipment 12/05 cellular equipment 010-1400-414.35-17 010-1400-414.35-17 010-3300-431.21-10 010-3300-431.21-10 010-3300-431.21-10 010-3300-431.21-10 010-3300-431.21-10 010-3300-431.21-10 25.85 51.71 15.51 15.51 15.51 69.36 69.36 69.36 2,909.24... 74150 2/3/06 Parkins, richard iii REQUEST 1/06/06 Reim water dep # 00002016 050-0000-229.08-70 12.59 12.59 74151 2/3/06 Party planners 980 1094 Estudillo mansion pa sys 10/05 & 01/06 services 010-2510-425.40-09 010-1700-417.34-05 500.00 325.00 825.00 74152 2/3/06 Patton automotive 018845 Auto repair 010-1700-417.33-50 31.86 31.86 74153 2/3/06 Pierce plumbing 32620 32642 32659 32664 Supplies Supplies Supplies Supplies 010-7100-410.33-10 010-7100-410.33-10 010-7100-410.33-10 010-7100-410.33-10 58.58 45.80 55.60 5.38 165.36 74154 2/3/06 Pins and needles embroidery 4191 Uniform supplies 010-3100-431.21-35 25.86 25.86 74155 2/3/06 Pip printing 81131 82047 82394 82454 82454 Office supplies Office supplies Office supplies Office supplies Office supplies 026-7190-500.30-90 033-8850-500.30-90 010-3300-431.21-10 033-8850-500.30-90 033-8850-500.30-90 126.99 1.45 2.16 2.15 2.16 134.91 74156 2/3/06 Pju telecomm 13403 13502 13582 Telephone Telephone Telephone 010-3100-431.33-10 010-3100-431.33-10 010-1700-417.30-90 62.00 82.00 21.25 165.25 74157 2/3/06 Platinium plus for business REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 Chevron -gasoline Lowes-chain for gate Plat plus- c.c. fees 010-1400-414.33-50 010-1400-414.21-10 010-1400-414.30-90 10.00 29.15 35.57 74.72 74158 2/3/06 Platinium plus for business REQUEST 2/3/06 Jiffy lube - auto maint 010-1200-412.33-50 35.23 535.87 Page 13 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74158... 2/3/06... Platinium plus for business... REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 Staples - office supplies Icma - office supplies Icma - office supplies 010-1200-412.21-10 010-1200-412.21-10 010-1200-412.21-10 54.83 77.33 368.48 535.87... 74159 2/3/06 Platinium plus for business REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 Leauge of ca - conference Southwest air - airfare Southwest air - airfare Southwest air - airfare Southwest air - airfare Leauge of ca-registration Us conf of mayors-registr Issi solutions -office sup San jac florist -flowers Davids flowers - flowers R.t.a. - natural fuel Us conf of mayors-registr Plat plus - finance fees 010-1100-411.31-20 010-1100-411.31-20 010-1100-411.31-20 010-1100-411.31-20 010-1100-411.31-20 010-1100-411.31-20 010-1100-411.31-20 010-1400-414.40-45 010-1200-412.31-20 010-2510-425.40-12 010-2500-425.33-50 010-1100-411.31-20 010-1400-414.30-90 495.00 166.90 326.30 290.30 326.30 495.00 800.00 2,463.91 91.58 344.75 12.28 800.00 112.99 6,725.31 74160 2/3/06 Porter, mary REQUEST 1/06/06 Reim water dep # 60002062 050-0000-229.08-70 13.32 13.32 74161 2/3/06 Press enterprise 3020285 3020286 3020284 Advertisement Advertisement Advertisement 026-7190-500.30-91 026-7190-500.30-91 026-7190-500.30-91 110.55 106.70 13.43 230.68 74162 2/3/06 Preston, james REQUEST 1/06/06 Reim water dep # 10001061 050-0000-229.08-70 23.39 23.39 74163 2/3/06 Prokop, thomas REQUEST 1/06/06 Reim water dep # 00008065 050-0000-229.08-70 16.63 16.63 74164 2/3/06 Quality auto parts D806783 D813735 Supplies Supplies 050-9000-450.33-30 050-9000-450.33-50 16.15 19.27 35.42 74165 2/3/06 Quick wrap bags 70895 Supplies 010-3300-431.21-10 64.31 64.31 74166 2/3/06 Quintero, mary REQUEST 1/06/06 Reim water dep # 30031054 050-0000-229.08-70 50.00 50.00 74167 2/3/06 Quiroz, dorothy REQUEST 1/06/06 Reim water dep # 40029014 050-0000-229.08-70 50.00 50.00 74168 2/3/06 Ramirez, paula REQUEST 1/06/06 Reim water dep # 40021091 050-0000-229.08-70 4.38 4.38 74169 2/3/06 Ramona tire 156583 Auto repair 050-9000-450.33-50 183.68 183.68 Pad:: City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74170 2/3/06 Reliable FBY73898 FBX57100 FBX57100 XPT74600 XTX85900 Office supplies Office supplies Office supplies Office supplies Office supplies 010-1400-414.21-10 010-2500-425.21-10 010-1400-414.21-10 010-1400-414.21-10 010-4200-410.21-10 -17.00 12.81 60.44 13.23 18.94 88.42 74171 2/3/06 Rice, mark REQUEST 1/06/06 Reim water dep # 20002105 050-0000-229.08-70 2.02 2.02 74172 2/3/06 Riverside county of, REQUEST 1/18/06 Information cd-midwest co 010-3300-431.30-90 4,000.00 4,000.00 74173 2/3/06 Riverside county sheriffs SH0000004396 11/05 booking fees 010-3100-431.30-19 3,532.80 3,532.80 74174 2/3/06 Riverside, county of REQUEST 1/26/06 12/05 parking citations 010-0000-304.03-35 198.00 198.00 74175 2/3/06 Riverside, county of HS0000001466 HS0000001495 HS0000001496 09/05 animal services 10/05 animal services 11/05 animal services 010-3320-431.34-05 010-3320-431.34-05 010-3320-431.34-05 12,769.81 11,310.42 11,932.35 36,012.58 74176 2/3/06 Rod's automotive performance 151107008 160104004 Auto repair Auto repair 024-3100-431.33-30 024-3100-431.33-30 68.00 70.00 138.00 74177 2/3/06 Rodgers, james REQUEST 1/06/06 Reim water dep # 00025056 050-0000-229.08-70 3.78 3.78 74178 2/3/06 Ronning, darlene REQUEST 1/06/06 Reim water dep # 50002211 050-0000-229.08-70 12.56 12.56 74179 2/3/06 Rosenow spevacek group inc. 0017463 0017464 0017465 0017466 0017467 0017468 12/05 indian gaming 12/05 general implem svcs 12/05 senior -crisp 12/05 rfp ramona sandersn 12/05 planning 12/05 tt33579 099-1700-417.30-90 010-1700-417.30-90 096-1700-417.30-90 096-1700-417.30-90 010-1700-417.30-90 010-1700-417.30-90 325.00 720.00 1,235.00 2,967.50 2,825.00 65.00 8,137.50 74180 2/3/06 San jacinto petty cash, city of REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 Council member/luncheon Council member/luncheon City manager/gasoline Office supplies Office supplies/finance Csmfo meeting/finance Office supplies/comm devp 010-1100-411.31-20 010-1200-412.31-20 010-1200-412.31-20 010-2500-425.33-10 010-1400-414.21-10 010-1400-414.31-20 010-3300-431.21-10 15.00 15.00 10.00 10.30 13.15 17.00 2.68 169.85 Page 15 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74180... 2/3/06... San jacinto petty cash, city of... REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 Parking fee/comm devip Superind meet/streets dep Community devip/gasoline Community devip/gasoline Cmrta meeting/comm devip Office supplies/finance Office supplies/finance Postage/ comm devip 010-3300-431.31-20 010-4150-410.31-20 010-1700-417.21-70 010-1700-417.31-20 010-1701-417.31-20 050-1400-414.21-10 055-4170-450.33-50 096-1700-417.21-10 2.25 15.00 12.76 2.25 20.00 7.96 6.47 20.03 169.85... 74182 2/3/06 San jacinto unified school REQUEST 12/09/5 Pass through 097-0000-239.00-00 551,195.00 551,195.00 74183 2/3/06 Shepler, richard REQUEST 1/06/06 Reim water dep # 00057555 050-0000-229.08-70 88.20 88.20 74184 2/3/06 Shred it 50125591 50151319 50165875 50172814 Paper destruction Paper destruction Paper destruction Paper destruction 010-3100-431.21-10 010-3100-431.21-10 010-1700-417.34-05 010-3300-431.34-05 85.00 85.00 75.00 75.00 320.00 74185 2/3/06 Singh, jagroop REQUEST 1/06/06 Reim water dep # 30026078 050-0000-229.08-70 13.48 13.48 74186 2/3/06 Skyline homes REQUEST 1/25/06 Reim water dep # 00001915 050-0000-229.08-70 323.14 323,14 74187 2/3/06 Smart & final 386856 B Office supplies 010-2500-425.21-10 102.89 102.89 74188 2/3/06 So. california edison co. REQUEST2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQU EST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQU EST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 12/05 electricity 12/05 electricity 12/05 electricity 12/05 electricity 12/05 electricity 12/05 electricity 12/05 electricity 12/05 electricity 12/05 electricity 12/05 electricity 12/05 electricity 01/06 electricity 010-2500-425.35-14 010-3100-431.35-14 010-4150-410.35-14 010-7400-425.35-14 025-7100-410.35-14 025-7250-410.35-14 025-7251-410.35-14 025-7252-410.35-14 025-7260-410.35-14 301-8833-500.35-14 050-9000-450.35-14 010-2500-425.35-14 1,645.97 1,089.19 14.24 623.26 1,461.09 796.05 14.10 1,234.06 774.07 28.20 12,992.21 15.41 41,120.66 Pa. City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74188... 2/3/06... So. california edison co.... REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 01/06 electricity 01/06 electricity 01/06 electricity 01/06 electricity 01/06 electricity 01/06 electricity 01/06 electricity 01/06 electricity 010-4150-410.35-14 010-6100-425.35-14 025-7250-410.35-14 025-7252-410.35-14 025-7260-410.35-14 301-8833-500.35-14 302-8833-500.35-14 050-9000-450.35-14 31.04 195.27 16.30 1.91 11,161.67 566.40 416.40 8,043.82 41,120.66... 74190 2/3/06 Staples credit plan 75829 Office supplies 010-1700-417.21-10 133.03 133.03 74191 2/3/06 State of california dept of justice 551109 552681 555581 Analysis Fingerprints apps Analysis 010-3100-431.34-05 010-3100-431.34-05 010-3100-431.34-05 140.00 296.00 35.00 471.00 74192 2/3/06 Stater bras 1210119 Office supplies 010-1100-411.31-20 19.80 19.80 74193 2/3/06 Stericycle, inc. 0003446965 Analysis 010-3100-431.34-05 102.20 102.20 74194 2/3/06 Strattons janitorial service 4500 Qrt carpet cleaning 010-3100-431.33-10 300.00 300.00 74195 2/3/06 T & s investments inc. REQUEST 1/24/06 Reim water dep # 00002266 050-0000-229.08-70 53.83 53.83 74196 2/3/06 Taabs printing 101127 101127 101127 Office supplies Office supplies Office supplies 050-1400-414.21-10 055-1400-414.21-10 059-1400-414.21-10 66.98 66.98 66.97 200.93 74197 2/3/06 Tapia, anastasia REQUEST 1/06/06 Reim water dep # 30029063 050-0000-229.08-70 8.66 8.66 74198 2/3/06 Thomson west 894954 Subscription 010-3300-431.21-15 142.00 142.00 74199 2/3/06 Tierra west appraisal 05456 Appraisal reports 099-1700-417.30-90 3,500.00 3,500.00 74200 2/3/06 Tri-lake consultants, inc. 3682 3690 3914 3916 3915 3690 3690 11/26/05-12/30/05 misc 11/26/05-12/30/05 misc 11/26/05-12/30/05 misc 11/26/05-12/30/05 pin chk 11/26/05-12/30/05 pin chk 11/26/05-12/30/05 misc 11/26/05-12/30/05 misc 010-1700-417.30-90 010-1700-417.30-90 065-0000-201.06-47 065-0000-201.06-47 065-0000-201.06-47 065-0000-201.08-10 065-0000-201.08-85 1,867.50 5,600.00 25,573.96 3,185.29 51,429.61 520.00 320.00 89,336.36 Page 17 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74200... 2/3/06... Tri-lake consultants, inc.... 3690 3690 3690 11/26/05-12/30/05 misc 11 /26/05-12/30/05 misc 11/26/05-12/30/05 misc 065-0000-201.08-59 010-1700-417.30-90 065-0000-201.08-83 400.00 120.00 320.00 89,336.36... 74201 2/3/06 Umali, carlo REQUEST 1/19/06 Reimbursement 096-1700-417.21-10 49.00 49.00 74202 2/3/06 United communities network 2975 2977 3023 G. sanders - 1600 san jac J. warren-3440 cottonwood Admin fees 099-9700-470.40-01 099-9700-470.40-01 099-9700-470.40-01 746.97 1,575.79 4,250.00 6,572.76 74203 2/3/06 Valenzuela, carol REQUEST 1/06/06 Reim water dep # 40021007 050-0000-229.08-70 10.72 10.72 74204 2/3/06 Valenzuela, vicente REQUEST 1/06/06 Reim water dep # 00004035 050-0000-229.08-70 12.56 12.56 74205 2/3/06 Valenzuela, victor REQUEST 1/06/06 Reim water dep # 60023031 050-0000-229.08-70 10.53 10.53 74206 2/3/06 Valley wide recreation REQUEST 1/20/06 P/r reim for dec 2005 029-8660-410.30-12 1,866.13 1,866.13 74207 2/3/06 Verizon california REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 12/05 telephone 12/05 telephone 12/05 telephone 12/05 telephone 12/05 telephone 12/05 telephone 12/05 telephone 12/05 telephone 12/05 telephone 12/05 telephone 010-2500-425.35-16 010-3100-431.35-16 010-4150-410.35-16 010-3110-431.35-16 010-4200-410.35-16 010-1700-417.35-17 010-6100-425.35-16 010-7400-425.35-16 025-7252-410.35-16 050-9000-450.35-16 370.92 769.67 30.73 36.98 145.18 29.86 64.78 519.62 263.85 261.59 2,493.18 74208 2/3/06 Western highway products 603603 Supplies 024-4150-410.21-36 259.36 259.36 74209 2/3/06 Willard, scott REQUEST 1/06/06 Reim water dep # 40031073 050-0000-229.08-70 2.75 2.75 74210 2/3/06 Willard, scott & colleen REQUEST 1/06/06 Reim water dep # 40031047 050-0000-229.08-70 6.89 6.89 74211 2/3/06 Wilson, russ REQUEST 1/17/06 Per deim training conf 010-3100-431.31-20 380.07 380.07 74212 2/3/06 Woods, david REQUEST 12/20/5 Reim water dep # 00001317 050-0000-229.08-70 128.21 128.21 74213 2/3/06 Wortman, randell REQUEST 1/17/06 Per deim training conf 010-3100-431.31-20 160.00 160.00 74214 2/3/06 Wren, jean REQUEST 1/06/06 Reim water dep # 10025021 050-0000-229.08-70 22.89 22.89 Pay_ r8 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74215 2/3/06 Yerger, lisa REQUEST 1/24/06 Reim water dep # 00001910 050-0000-229.08-70 109.39 109.39 74216 2/3/06 Z-best pizza REQUEST 1/20/06 09/01/05-01/31/06 cc meet 010-1100-411.31-20 288.20 288.20 74217 2/3/06 Zeppenfeldt, edward REQUEST 1/06/06 REQUEST 1/06/06 Reim water dep # 30017019 Reim credit acct#30017019 050-0000-229.08-70 050-0000-308.09-10 50.00 36.96 86.96 74218 2/3/06 Zowarka, sue REQUEST 1/06/06 Reim water dep # 10026067 050-0000-229.08-70 11.99 11.99 Total Checks 1,152,764.00 Page 19 AGENDA ITEM February 16, 2006 TO: The Honorable Mayor and Members of the City Council FROM; Habib Motlagh, City Engineer SUBJECT: Idyllwild Drive Sidewalks — Project No. 04-076 RECOMMENDATION: Staff recommends that the City Council, by motion, adopt the plans and specifications and authorize the City Clerk to proceed with bid advertisement for construction of Idyllwild Drive Sidewalks, subject to County EDA approval. BACKGROUND: This project will construct infill sidewalk on both sides of Idyllwild Drive from San Jacinto Avenue to Tiger Lane. The currently approved budget is $375,000 ($255,000 pending Council approval of CDBG reprogramming). The project also includes miscellaneous sidewalk repair and replacement throughout the City. The elimination of sidewalk gaps in this residential district bounded by school and other public facilities will enhance the City's recently completed Wateka, Tahquitz, and First Street sidewalk project, thus, providing better access to Sallee Park and San Jacinto High School. The following is the proposed timeline for the construction of this project; • Bid advertisement March 2006 • Bid opening April 2006 • Bid award April 2006 • Start of construction May 2006 • Project completion July 2006 Page 1 of 2 This schedule is tentative, and is subject to County EDA approval of the plans and specifications. The project advertisement cannot proceed until this approval is secured. The specifications were submitted to County EDA on February 2, 2006. FISCAL IMPACT: The project is included in fiscal year 2005-06 and is identified as project No. 04- 076, which includes $80,000 in SB 821 grant funding and $255,000 in CDBGG funds (subject to Council approval of CDBG reprogramming). ATTACHMENTS: ■ Project Map Page 2 of 2 AGENDA ITEM 5° February 'l6, 2006 TO: Mayor and City Council FROM: Tim Hults, Community Development Director SUBJECT: Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area RECOMMENDATION: Staff recommends that the City. Council: a. Receive and file the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area; and b. Direct staff to move forward on soliciting proposals for the preparation of a specific plan to identify the land uses, infrastructure, design, and financing for the Ramona Expressway/Sanderson Corridor Gateway Area; and c. Utilize the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area, as a guide for the development of a specific plan for the area; and d. Direct staff to identify a funding mechanism to finance the preparation of the specific plan; and e. include the Stakeholders during the process of preparing the specific plan. BACKGROUND: The Ramona Expressway/Sanderson Avenue Corridor, also known as the Gateway Area encompasses approximately 1,700 acres along both sides of the Ramona Expressway, from east of Sanderson to the City boundaries. This Gateway Area provides unique opportunities for current and future development. in March 2005, to facilitate development in this area, staff recommended the solicitation of proposals for a specific plan and economic study. The Council directed staff to move forward only on the economic study. Economics Research Associates (ERA) was selected to prepare a Market Assessment and Economic Development Strategy for the Ramona Expressway/Sanderson Avenue. Economics Research Associates prepared the Market Assessment and Economic Development Strategy ("Assessment"). During the preparation process, Stakeholder meetings were conducted to solicit input and provide comments on the Assessment. The Assessment was also presented to the Stakeholders, during a meeting on November 16, 2005 and again on January 5, 2006. A presentation of the Assessment was made to the City Council and the Redevelopment Agency, during the January 6, 2005 Meeting. DISCUSSION Corridor Information The Gateway Area consists of approximately 1,700 acres, along two of San Jacinto's major streets. The area is primarily dairy farms, agricultural uses, with some vacant land. Several projects have been approved, including commercial and Tight industrial uses. Several other development proposals are in the Planning review process. Both the Ramona Expressway and Sanderson Avenue are major corridors through the City, both east/west and north/south, respectively. As such, they provide a unique opportunity for commercial, business park, civic, and residential uses. Freeway options are being considered for the area, including the realignment of Highway 79 to freeway operation, which will _.greatly improve accessibility to the corridor from both the north and south. A preferred alternative for this alignment has been selected. Also, the Mid -County Parkway is a proposed 32-mile limited access freeway corridor that will connect San Jacinto to the 215 Freeway in Perris and 115 in Corona. As a freeway corridor, Mid -County Parkway will provide opportunities for commercial development. The alignment has not been decided and the City has not yet made a recommendation. A major hurdle for the area is the San Jacinto River . Levee Project, which involves the extension of the existing levee on the south side of the river, from east of State. Street, westerly to almost Warren Road. This project, once completed will protect downstream properties from flooding and remove about 3,140 acres of land form the floodplain, creating new economic development opportunities. The City is working with the Riverside. County Flood Control and Water Conservation District on the levee project. 2 Proposed General Plan The City of San Jacinto is currently updating its General Plan to provide direction for the City's future development. The General Plan includes elements that identifies and discusses land uses, circulation, community services and facilities, resource management, public safety, noise, and housing. The proposed Plan also specifically identifies the Ramona Expressway/Sanderson corridor for a planned development called the Gateway Area Specific Plan. No specific land uses on a parcel basis are included within the Gateway Area Specific Plan. While the proposed General Plan provides the overall planned uses, goals, and objectives, it is anticipated that a Specific Plan would include details for development, including specific land uses, circulation, zoning standards, design elements, and project processing. The proposed General Plan includes the following percentages for development: • 15% Regional Commercial • 30% Office Park • 35% Business Park • 20% Estate Residential To facilitate development in the Ramona/Sanderson area, once the General Plan is adopted, will require the preparation of a specific plan or a General Plan amendment to identify property specific land uses. The draft General Plan has been circulated and is scheduled for the February 23, 2006 Planning Commission Meeting. At this time, considering the near completion of the General Plan, significant modifications, including re-evaluating the Ramona/Sanderson/Gateway area would delay completion of the Plan. The General Plan, once adopted can be amended up to four times per year. Another option could be amending the General Plan to accommodate land uses for the area. A consultant would need to be hired to evaluate the desired land uses. The Assessment could be used as a guide for an amendment. Market Assessment and Economic Development Strategies To prepare the Assessment and Strategies, ERA compiled demographic statistics, market trends, and other data to provide a foundation for the Assessment. In addition, ERA met with property owners and stakeholders, in order to have a better understanding of their interests and concerns surrounding the potential development of the area, as well as, to provide an opportunity to participate in the process. 3 ERA's role in preparing the Market Assessment and Economic Development Strategy is to recommend realistic and market based strategies that will accomplish the following five economic development objectives for the City: • Ensure that the Corridor will be able to provide the retail goods and services needed by the San Jacinto Valley residents for at lease the next 20 years. • Provide one or more areas within the Corridor that will serve to accommodate high quality jobs in the future. • Ensure that the development in the Corridor will generate tax revenues to fund municipal services like fire suppression, police protection, road maintenance, and park upkeep. • Taking advantage of the Corridor's history and geography, create a community core that citizens of San Jacinto can take pride in. • Enhance long-term value appreciation for San Jacinto land, homes, and businesses. Elements included in the Assessment are: • Corridor Opportunities and Constraints • Forecast San Jacinto's Economic Outlook • Examination of the Market for Residential Products • Commercial/Office/Business Park Development Opportunities • Project Retail Needs of Residents and Employees ERA's Recommendations Reserving Land for Commercial Development — The central issue in the Ramona/Sanderson Corridor is the risk of strong, single-family housing demand pre-empting other land uses important to the community's future, in terms of jobs, taxes, and a unique sense of place. ERA considered demand growth related to population, income, and employment increases and noted an approximate build - out period by 2025, with additional growth expected after. The following acreage is recommended to be reserved for commercial development/civic use. Mid -point 2025 Demand Forecast Recommended Planning Acreage Retail Commercial 298 375 Office Business Park 175 225 Medical Campus NA 50 Hotel & Motel 10 20 Town Center - Civic Center NA 50 Community Center and Ball Fields NA 50 Total Commercial and Civic Uses (Acres) 770 Page 4 of 9 Of the estimated 1,700 acres within the Corridor, ERA recommends 770 acres or around 45 percent be planned for future commercial, business park, civic, or community uses. Assuming that 500 additional acres will be required for transportation or other infrastructure and open space systems, approximately 430 acres remain available for the development of high quality residential neighborhoods. The percentage breakdowns, based upon the estimated 1,700 acres would be as follows: • Retail Commercial (includes hotel and motels) 23% • Office Business Park (includes medical campus) 16% • Town Center/Community Center/Ball Fields 6% • Residential 25% • Infrastructure 30% When compared to the proposed General Plan designations and percentages, residential acreage is increased from 20% to 36% and would provide a greater range of residential uses. Retail commercial would increase from 15% to 33% and office/business park would be reduced from 65% to 23%. Excluding the infrastructure, the percentages are: • Retail Commercial (includes hotel and motels) 33% • Office Business Park (includes medical campus) 23% • Town Center/Community Center/Ball Fields 8% • Residential 36% Mr. Lee indicated that in meeting with the property owners, his recommendations on land uses were in line with what many were considering. Create a New Town Center — ERA recommends incorporating a Town Center within the Corridor. Several locations were identified, as options. The City has not discussed development of a Town Center for a number of years. This recommendation opens the door for discussion to take place. Staff recommends that a separate report be prepared to discuss the Town Center options and information included in ERA's report be considered. Transportation and Flood Control — There are three major infrastructure improvements planned for the Corridor, including Realignment of Highway 79, the Mid County Parkway, and the San Jacinto River Levee. Each of these has an effect on the development of the Corridor. ERA included discussion on these items in their Report. The alignment for the Mid County Parkway has not been determined. ERA recommends the southern alignment, along the aqueduct. The City has not determined a preferred alignment, therefore this recommendation, by ERA should be considered in future discussion and is not part of this staff report. Page 5 of 9 Create a New Community and Ball Field Complex — ERA recommends moving forward with development of a complex, which would enhance the desirability of San Jacinto as a residential community, and the tournaments would bring income to local hotels and restaurants. This is consistent with the recently developed Park Master Plan. Negotiation with Major Land Owners - ERA's analysis indicates that the City of San Jacinto should reserve much of this Corridor for future commercial and civic development and additional lands will be needed to accommodate the regional circulation system. While more detailed land planning analysis is needed to determine the exact acreages, ERA's evaluation suggest that there may be sufficient land in the Corridor to accommodate possibly 400 to 450 acres of residential development. The area within the Corridor but south of ERA's recommended alignment for the Mid County Parkway and the Colorado River Aqueduct appears to be well suited for residential development in accordance to the desires of the property owners. The residential character of properties to the south of this area has been established. The parcels fronting on Ramona Expressway on both the north and south sides should be reserved for future commercial or civic uses. The large parcels on the north side of Ramona Expressway should be planned to accommodate much of the future commercial and civic needs of the city; however, they are sufficient large to accommodate some residential neighborhood development as well. The Assessment provides more detail on ERA's recommendations for a Town Center. Need for a Specific Plan — Implementation of the concepts that ERA has advanced above will require the preparation of a Specific Plan and an associated Environmental Impact Study (EIR). Ideally, the City will have officially endorsed a preferred alignment for the Mid County Parkway and have negotiated some deals with the property owners to know on whose property the Town Center and community center/ball fields will be located. Rather than carrying innumerable alternatives, which would be costly, the Specific Plan then can focus on the location and design character of a Town Center, the local circulation system and the location and allocation of the different land uses. The Plan should include design guidelines for a Town Center. Stakeholder Meetings and Comments Several meetings were conducted throughout the process, to provide property owners an opportunity to comment. Mr. Lee met with most of the property owners, early in the process to review their development plans and desires for their properties. 6 Staff conducted several Stakeholder meetings to receive input on the Assessment. Notes from the November and January meetings area included as Attachments B and C. Additional comments are included as Attachment D. Mr. Robert Reicher with Market Profiles, who prepared a Market Study for one of the Stakeholder's provided comments, included as Attachment E. Specific Plan The preparation of a specific plan for the area would identify land uses, on a parcel specific basis. This was a key issue for the Stakeholders. Without land use designations, it is difficult to provide specific comments, because the actual effect on a parcel by parcel basis cannot be determined based upon the Assessment. The specific plan would include the completion of an environmental impact report to address all of the environmental issues facing the plan. In addition circulation, design, and development processing would also be addressed. In addition, a specific plan will facilitate and potentially expedite development in the area. Streamlined development application processing could be included in a specific plan. Preparation of a specific plan would provide the most cohesive and comprehensive plan for future development and would serve the best interests of the City in the long term. The Ramona Expressway/Sanderson Avenue corridors are San Jacinto's major thoroughfares and with the proposed Highway 79 realignment and Mid -County Parkway, a specific plan can explore the opportunities, using the Assessment, as a guide for future development. In addition, the General Plan recommends the preparation of a specific plan for the area. JUSTIFICATION: The Market Assessment and Economic Development Strategy has been completed by Economics Research Associates. This Assessment can be used as a guide for preparation of a specific plan and/or identifying land -uses for the area. The Assessment was not developed as a governing document, but a study of a specific area. Therefore, a recommendation to receive and file the Assessment is proposed. The Ramona Expressway/Sanderson Avenue/Gateway Corridor is the City's premier entry and provides significant current and future commercial development opportunities. As a growing city, San Jacinto has a unique opportunity to plan this corridor to accommodate not only current growth, but also for the future. As single-family developments are constructed and occupied, the 7 e. demand for commercial and job creating developments will increase. Land must be designated to accommodate these uses to support the City. Should the Corridor be developed with single-family uses, it will limit future commercial and job creation opportunities. Potential commercial/business developments that would locate in a major transportation corridor, would have limited other locations to consider city-wide. Preparation of a specific plan will further evaluate this corridor, utilizing the Assessment as a guide. In addition, the environmental constraints and the transportation alignments can be further analyzed for compatible land uses. This will provide San Jacinto a unique opportunity that many cities do not have and that is to master plan an area in a comprehensive and cohesive manner. In addition, design standards for development can be incorporated in the specific plan and can include architectural guidelines, landscaping requirements, signage, site improvements, as well as, expedited processing. BUDGETARY IMPACT: Funding was allocated for the Assessment preparation. Funding for the Specific Plan was included in last year's budget from Redevelopment Agency and General funds, with project costs proposed to be divided evenly. These funds were not carried forward to this Fiscal Year. The staff recommendation, should the Council wish to move forward is to develop a financing/funding plan for the proposed specific plan. ALTERNATIVES: Alternative No. 1 a. Receive and file the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area; and b. Direct staff to move forward on soliciting proposals for the preparation of a specific plan to identify the land uses, infrastructure, design, and financing for the Ramona Expressway/Sanderson Corridor Gateway Area; and c. Utilize the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area, as a guide for the development of a specific plan for the area; and Direct staff to identify a funding mechanism to finance the preparation of the specific plan; and Include the Stakeholders during the process of preparing the specific plan. 8 Staff recommends approval of this alternative, because the preparation of a specific plan provides the most comprehensive and cohesive option for planning development along the Ramona Expressway/Sanderson Corridor. The use of the Assessment will provide a guide for the highest and best uses for the San Jacinto's future. Alternative No. 2 Receive and file the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area and delay the current General Plan process to incorporate land uses for the Ramona Expressway/Sanderson Avenue Corridor in the General Plan, as opposed to the Specific Plan designation. Staff does not recommend approval of this alternative, because it will delay adoption of the General Plan and not provide for a comprehensive plan for the area. The General Plan process has been underway for a number of years and is close to completion. It is in the City's best interest to adopt the General Plan in accordance with the current schedule. Alternative No. 3 Receive and file the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area and process a General Plan Amendment, once the General Plan is adopted to identify land uses for Ramona Expressway/Sanderson Avenue Corridor and remove the Specific Plan designation. Staff does not recommend approval of this alternative, because it only addresses land use on the surface and does not provide for a comprehensive and cohesive plan for the area. Should Council consider this option, a consultant would need to be hired to process the amendment and develop a land use plan to be included in the General Plan. ATTACHMENTS: ATTACHMENT A ATTACHMENT B ATTACHMENT C ATTACHMENT D ATTACHMENT E ATTACHMENT F Market Assessment and Economic Development Strategy for the Ramona Expressway/Sanderson Avenue Gateway Corridor January 5, 2006 Stakeholder Meeting Notes November 16, 2005 Stakeholder Meeting Notes Other General Comments Letter from Mr. Robert Reicher, Market Profiles Meeting Notification Letter 9 ATTACHMENT A Economics Research Associates MARKET ASSESSMENT AND ECONOMIC DEVELOPMENT STRATEGIES FOR THE RAMONA-SANDERSON CORRIIrOR Prepared for CITY F SAN .ACINT Submitted by Economics Research Associates December 13, 2005 ERA Project No. 16070 388 Market Street, Suite 1580 San Francisco, CA 94111 (415) 956-8152 FAX (415) 956-5274 www.econres.com Los Angeles San Francisco San Diego Chicago Washington DC New York London T t LE OF CONTENTS Section Page INTRODUCTION I- 1 EXECUTIVE SUMMARY AND RECOMMENDATIONS 1 Reserving Land for Commercial Development II- 1 Create a New Town Center il- 2 Transportation and Flood Control II- 3 Create New Community and Ball Field Complex II- 5 Negotiation with Major Land Owners II- 6 Need for a Specific Plan II- 7 Images of a Future San Jacinto Town Center II- 7 III ECONOMIC OUTLOOK AND DEMOGRAPHIC TRENDS III- 1 Regional Economic Overview III- 1 Employment Projections III- 3 Population and Household Trends III- 4 IV CORRIDOR LOCATION AND RESIDENTIAL MARKET OVERVIEW IV- 1 Regional Context IV- 1 Gateway Area IV- 1 Regional Housing Market IV- 2 Local Housing Market IV- 2 Demand Analysis IV- 5 V OFFICE AND BUSINESS PARK DEVELOPMENT POTENTIAL V- 1 Regional Office Market . V- 1 Industrial/Flex Market V- 2 Selected Business Parks in Region V- 6 Demand Analysis V- 8 VI RETAIL DEVELOPMENT POTENTIAL VI- 1 Taxable Retail Sales VI- I Retail Market Trends VI- 5 Planned Development in San Jacinto Valley VI- 9 Demand Analysis VI- 9 TABLE OF CONTENTS (Continued) Section Pag.e VII HOTEL DEVELOPMENT POTENTIAL VII- I Air Passenger Volume VII- I Room Revenue VII- I Regional Hotel Trends VII- 2 Hotel inventory VII- 4 Hotels in Planning and Construction VII- 8 Demand Analysis SECTION I. INTRODUCTION The City of San Jacinto retained Economics Research Associates (ERA) to provide a market based assessment of the future of the 1,700-acre Ramona -Sanderson Corridor located. in the northern portion of the city. With the planned upgrading of Highway 79 to freeway status and the construction of the new Mid County Parkway, this corridor has exceptional strategic value in shaping the future of San Jacinto. Because of its strategic location, this area is also known as the Gateway Area. ERA's role is to recommend realistic and market based strategies that will accomplish the following five economic development objectives for the City: • Ensure that the Corridor will be able to provide the retail goods and services needed by San Jacinto Valley residents for at least the next 20 years. • Provide one or more areas within the Corridor that will serve to accommodate high quality jobs in the future. 9 Ensure that development in the Corridor will generate tax revenues to fund municipal services like fire suppression, police protection, road maintenance and park upkeep. a Taking advantage of the Corridor's history and geography, create a community core that citizens of San Jacinto can take pride in. • Enhance long-term value appreciation for San Jacinto land, homes and businesses. This assignment was conducted by the San Francisco office of ERA. William "Bill" Lee, Executive Vice President, served as project manager and chief consultant. Sujata Srivastava, Senior Associate, assisted with research, analysis and report preparation. Economics Research Associates - Project No. 16070 1-1 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor ERA The Ramona -Sanderson Corridor or Gateway Area Economics Research Associates - Project No. 16070 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor 1-2 SECTION 11. EXECTUVIE SUMMARY AND 1=.1 COMMENDATIONS RESERVING LAND FOR COMMERCIAL DEVELPMENT The central issue in the Ramona -Sanderson Corridor is the risk of strong single-family housing demand pre-empting other land uses important to the community's future in terms of jobs, taxes and a unique sense of place. ERA's market analysis focused successively f-arr. the Inland Empire to Riverside County and then to the San Jacinto Valley, the city of San Jacinto and finally to the Ramona -Sanderson Corridor. It considered demand growth related to population, income and employment increases. ERA projects that the city of San Jacinto will have a population of nearly 90,000 by 2025. This level of population growth, plus the economic growth and maturation of Western Riverside County, will generate demand for commercial and civic land and facilities. The mid -point demand forecasts for the 2025 planning horizon for the different commercial uses within the Ramona -Sanderson Corridor are shown below. However, San Jacinto will not be built -out by 2025, and additional growth is expected after 2025. ERA, therefore, recommends that the City reserve the following acreage for commercial development or future civic use. Table 11-1. Recommended Commercial Planning Acreage in Corridor Mid -point 2025 Demand Forecast Recommended Planning Acreage Retail Commercial 298 375 Office Business Park 175 225 Medical Campus NA 50 Hotel & Motel 10 20 Town Center - Civic Center NA 50 Community Center and Sall Fields NA 50 Total Commercial and Civic Uses (Acres) 770 Economics Research Associates Project No. 16070 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Of the estimated 1,700 acres within this Corridor, ERA recommends that 770 acres or around 45 percent be planned for fature commercial, business park, civic or community uses. Assuming that 500 additional acres will be required for transportation or other infrastructure and open space systems, approximately 430 acres remain available for the development of high quality residential neighborhoods. CREATE A NEW TOWN CENTER Since the city is headed for a total population of over 100,000, the current downtown area will not be able to function effectively as the commercial hub and administrative center of a community of this size. ERA recommends that San Jacinto plan for the creation of a new 50- acre Town Center —Civic Center complex. :lather than having this complex be at the center of a commercial shopping mall, we recommend teat the City acquire this 50-acre parcel and manage its development over time for civic and vibrant town center types of uses. A well - planned and well -designed Town Center, which could include higher density housing and mixed -use development, will enhance the value of surrounding properties for commercial or residential development. It will also be a source of community pride and contribute to the long -tern appreciation of local home values. Table 11-2. Recommended Planning Program for Town Center — Civic Center Recommended Planning Acreage City Hall — 60,000 to 100,000 SF 10 Town Square and Public Plazas 2 Future Performing Arts Facility 3 Public Parking in Support of Restaurant and Shop Development 6 Commercial Parcels for Disposition to Developers 10 Mixed Use/Residential Parcels for Disposition to Developers 10 Circulation 9 Total Town Center (Acres) 50 Economics Research Associates Project No. 16070 II-2 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor This Town Center would work well, if developed in tandem with a life-style retail center, which would be a private development. if planned with the life-style retail component, the total land area should be around 80 acres. The existing downtown could become "Old Town" with its historic and Hispanic flavor reinforced. Some images that suggest key elements of the Town Center are included at the back end of this section. TRANSPORTATION AND FLOOD CONTROL The commercial and civic developments recommended above are premised on some major infrastructure improvements. These include the following: 1) the realignment and upgrading of Highway 79, 2) the construction of the Mid County Parkway, 3) extension of the Ramona Expressway commercial corridor to the west, and 3) the construction of San Jacinto River Levee Project. Realligarnent of Highway 79 The realignment and upgrading of highway 79 to full freeway operation will make this Gateway Area much more accessible from the southern part of the San Jacinto Valley, enhancing the area's commercial market reach. The alignment through this Ramona - Sanderson Corridor has been largely set, and construction is expected to begin in 2010. ERA has no issue with this project. Mid County Parkway The Mid County Parkway is a proposed 32-mile limited access freeway corridor that will ease congestion along the east -west roads between the San Jacinto and Corona in Western Riverside County. The project is expected to reduce congestion and reduce travel times in the overburdened existing corridors, including SR 91, SR 74 and SR 60. Travel time between SR-79 and I-15 will be reduced from 45 minutes to 30 minutes, according to official estimates. The exact alignment of the Mid County Parkway is not yet decided, with various alternatives still being considered. According to Riverside County Transportation Commission, construction is also expected to begin in 2010. ERA has reviewed two or three alignment alternatives for this project and would like to recommend the southern alignment as the one that best facilitates commercial and Town Center development in this corridor. Our reasons are as follows: • It facilitates the transition of Ramona Expressway to a strong commercial boulevard with good commercial frontage on both sides. Shopping centers or Town Center requiring considerable parcel depth can locate on the north side of this new boulevard. Economics Research Associates Project No. 16070 II-3 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Big and medium box retailers and automobile dealerships are able to locate on the south side in accordance to the required parcel depths. Automobile dealerships favor a long frontage and do not require much parcel depth. • It consolidates the two community dividers, the new Mid County Parkway and the existing aqueduct, into a single corridor thereby minimizing the number of barriers to community cohesion. • It uses the aqueduct to buffer the negative influences of the freeway on the south side and creates a good separator between the commercial uses on the north side of the Mid County Parkway and the predominately residential uses on the south side of the freeway and aqueduct. ® It places the new Highway 79 and Mid County Parkway interchange, and the commercial. properties around this interchange, further south in the San Jacinto Valley and closer to mere of the valley population. • The eastern terminus of this Mid County Parkway leads to a strong potential location for the Town Center —Civic Center complex. The parkway alignment and the location of the Town Center could be designed so that as a driver approaches from the west, he or she can see the Town Center at the end of the parkway with the San Jacinto Mountains serving as a memorable backdrop. It would allow San Jacinto to convey a sense of place that few newer communities in Riverside County have been able to achieve. While not in the geographic center of the city, this location for a Town Center would be easily accessible to San Jacinto residents from the west, south and southeast. Figure II-1. Possible Town Center Locations Economics Research Associates Project No. 16070 11-4 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Ramona ExpressI ay Commercial Corridor The Ramona Expressway commercial corridor, as currently contemplated, does not extend beyond Warren Road to the west once the new Mid County Parkway is completed. San Jacinto's commercial development interests would be better served if this corridor extended further west, ideally to Perris but perhaps more realistically by one interchange to the west of VN'arren Road. Levee System The San Jacinto River Levee Project involves the extension of the existing levee on the south side of the river from east of State Street westerly to almost Warren Road. As one of the City's ton priorities, the project will protect downstream communities from water contamination and remove about 3,140 acres of land from the floodpiain, creating new economic development opportunities for the city with much of that opportunity lying in the Gateway Area. Since 2002, the City has been working with the Riverside County Flood Control and Water Conservation District for Stage 4 of the levee project. According to the agreement between the two parties, the District will fund half of the project's planning, approval, design, financing and construction, up to a maximum of $7 million. The total project cost is estimated at $25 million, and all costs above those covered by the District will be the City's responsibility. The City is pursuing additional grant monies and is considering the formation of a Community Facilities District (CFD) as a potential financing mechanism for the levee project. Based on the initial analysis conducted by Webb Associates, the annual assessment will range from $170 to $340 per dwelling unit per year. Considering assessment burden rates in this range, the financial benefits to the property owners of removing their properties from the flood plain well exceed the cost burden. ERA's :recommendation is that the City move expediently to implement the CFD so the levee project can be completed in a timely manner. CREATE NEW COMMUNITY AND BALL FIELD COMPLEX Since land in San Jacinto is still fairly abundant and inexpensive, ERA recommends that the City move to reserve an approximately 50-acre parcel for the future development of a community center and ball field complex. The community center could include a gymnasium. Economics Research Associates Project No. 16070 11-5 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor aerobics and workout rooms; class or small conference rooms and possibly a swimming pool. The ball fields would likely include soccer fields, softball fields and 'baseball diamonds. The complex would be designed for local play and to host regional tournaments. The complex would enhance the desirability of San Jacinto as a residential community, and the tournaments would bring income to local hotels and restaurants. NEGOTIATION WITH MAJOR LAND OWNERS ERA's analysis indicates that the City of San Jacinto should reserve much of this Corridor for future commercial and civic development and additional lands will be needed to accommodate the regional circulation system. While more detailed land planning analysis is needed to determine the exact acreages, our evaluation suggest that there may be sufficient land in the Corridor to accommodate possibly 400 to 450 acres of residential development. The area within the Corridor but south of ER A's recommended alignment for the Mid County Parkway and the Colorado River Aqueduct appears to be well suited for residential development in accordance to the desires of the property owners. The residential character of properties to the south of this area has been established. The parcels fronting on Ramona Expressway on both the north and south sides should be reserved for future commercial or civic uses. The large parcels on the north side of Ramona Expressway should be planned to accommodate much of the future commercial and civic reeds of the city; however, they are sufficient large to accommodate some residential neighborhood development as well. For these parcels, ERA recommends that the City negotiate an exchange of residential entitlement for land acreage. If the landowner would dedicate 50 acres for a future Town Center, he or she would be entitled to construct 500 housing units. Since the landowner would be able to construct housing in the reasonably near term future and the Town Center location would enhance the long-term value of the surrounding property, we believe the property owners would have strong incentive to participate in such a deal. The City would then be in position to create the Town Center which best reflects the vision of the community, and remnant parcels not needed for civic or community uses could later be sold to developers at a substantial gain. We would recommend a similar deal for the 50 acres required for the community center and ball field complex. Economics Research Associates Project No. 16070 II-6 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor ERA NEED FOR A SPECIFIC PLAN Implementation of the concepts that ERA has advanced above will require the preparation of a Specific Plan and an associated Environmental Impact Study (EIR). Ideally, the City will have officially endorsed a preferred alignment for the Mid County Parkway and have negotiated some deals with the propert:✓ owners to know on whose property the Town Center and community center/ball fields will be located. Rather than carrying innumerable alternatives, which would be costly, the Specific Plan then can focus on the location and design character of the Town Center, the local circulation system and the location and allocation of the different land uses. The Plan should include design guidelines for the Town Center. Not all of the properties in this 1, 7 00-acre Corridor need to be included in the Specific Plan, but it should certainly include the major properties around the Highway 79 and Mid County Parkway interchange. The cost of a high quali ✓ Specific Plan and EIR is expected to be in excess of S500,000, and it is fairly common for municipalities to recover that cost from the property owners or develops as the properties develop. As an alternative, the cost of the Specific Plan can be part of the residential entitlement for land negotiation. IMAGES OF A FUTURE SAN JACINTO TOWN CENTER Economics Research Associates Project No. 16070 II-7 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor ERA Economics Research Associates Project No. 16070 II-8 Market Assessment and Economic Development Strate_y for the Ramona -Sanderson Corridor ERA Economics Research Associates Project No. 16070 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor 11-9 SECTION LIL ECONOMIC O13.1TLO K AND IEMOGRAN IC TR i S In this section, ERA analyzes the regional economic context for future development potential in San Jacinto, including employment trends, key industries, and employment forecasts. In addition, ERA presents an overview of construction trends and demographics in San Jacinto and Riverside County, including historical population, race, educational attainment, income, and population projections. REGIONAL ECONOMIC OVERVIEW Riverside County is part of the greater Inland Empire economy, which aiso includes San Bernardino County. The Inland Empire currently employs approximately 1.15 mtliien (non- agricultural employment), a significant increase from 988,000 in 2000. Riverside County's unemployment rate dropped from a high of 12 percent in 1993 to beicw six percent in 2004. As shown in the chart below, Riverside County's unemployment rate was consistently above the state level until 2002 and has been below the State average since. Figure 11I-1. Unemployment Trends in Riverside County. 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Unemployment Rates in Riverside County and California, 1990-2004 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 a Riverside County ❑ California Source: California i3rplcyrent Development Department; Ecenomcs Research Associates, 2005. Economics Research Associates Project No. 16070 III-1 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor The economy of the inland Empire is diverse, with employment distributed among many industry sectors. The chart below illustrates the current industry mix in the Inland Empire: Figure 1it-2. inland Empire Employment by Industry. Government 18% Other Services 3%-, Wholesale Trade, Transportation and Utilities Employment in Inland Empire, 2004 Natural Resources and Construction 10% Manufacturing 10% Advanced Services 32% information and Financial Activities 5% etail Trade 13% Source: California Employment Developrrent Department; Economics Research Associates, 2005. As shown, the largest labor markets are in advanced services including professional and business services, educational and health services, and hospitality and leisure services (32 percent), government (18 percent), retail trade (13 percent), and manufacturing (10 percent). Inc. Magazine ranked the Riverside -San Bernardino metropolitan area as the 6th best place for doing business in the country in 2005. The ranking was based on personal income data and employment growth trends. According to the U.S. Bureau of Economic Analysis, personal income in the Inland Empire has grown at a rate of five percent annually, well above most metropolitan areas. Due to a combination of relatively lower land costs, availability of land, skilled workforce, and an extensive transportation network, the inland Empire has been able to attract many new companies and induce the expansion of local companies over the last 15 years. According to the California Employment Development Department, Riverside County has added more jobs in the last 15 years than any other Southern California county. The following table illustrates job gains in Riverside County compared to other counties in California from 1990 to 2004: Economics Research Associates Project No. 16070 III-2 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Table III-1. Employment Change in Selected C nties, 1990-2(104. Location Riverside San Bernardino Orange County San Diego Employment 1990 498,300 599,600 1,306,200 1,159,300 Los Angeles 4,259,700 Santa Clara 818,900 Source: California Emptoyrnent Development Department; ERA. Employment 2004 763,800 790,200 1,518,900 1,420,000 4,494,000 774.200 Net Employment Change 265,500 190,600 212,700 260,700 234,300 (44,700) % Change 53.3% 31.8% 16.3°/0 22.5% 5.5% -5.5% Riverside County's employment exploded during this period, growing by over 53 percent and adding 265,500 net jobs. San Bernardino also experienced significant growth, with the employment increase totaling 190,600 jobs or 32 percent. San Diego and Orange County economies also expanded, while the Los Angeles economy remained stable and Santa Clara County lost jobs during the period. Much of the growth can be attributed to the attractiveness of the Inland empire. to new businesses and expansions due to significantly lower land costs compared to coastal counties, as well as, competitive advantages including availability of land, skilled workforce, and greater housing affordability. In addition, the Inland Empire benefits from an extensive network of freeways and transportation infrastructure that provides access to the greater Southern California regional market. The region's economic growth has spurred job creation in Western Riverside County, as well. WRCOG estimates that the subregion (includes 14 communities and cities in the county west of the San Jacinto and Santa Rosa Mountains) gained 59,000jobs from 2000 to 2005 and currently employs 447,000 people. EMPLOYMENT PROJECTIONS Official SCAG employment projections show continued growth in Riverside County, as shown in the table below: Table III-2. Projected Employment in Riverside County Total Employment % Change 5-yr Year Change period 2000-05 76,566 14.9% 2005-10 123,249 20.8% 2010-15 115,216 16.1% 2015-20 113,435 13.7% 2020-25 114,862 12.2% Source: Southern California Association of Governments Average Annual Increase 15,313 24,650 23.043 22,687 22,972 Economics Research Associates Project No. 16070 1II-3 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor According -to SCAG, employment is forecast to steadily increase from the current year to 2025. In the 2005 to 2010 period, SCAG projects employment gains of 123,250 jobs, a 21 percent increase. From 2010 to 2025, the average annual employment increase in Riverside County is approximately 23,000. PLPULATION AND HOUSEHOLD TRENDS Population Growth Riverside County is currently the fastest growing county. in California, and the second fastest growing county in. the -United States. The Western Riverside County sub -region has experienced tremendous growth in the last decade. Between 1990 and 2000, Western Riverside County's population grew by 30 percent to reach a total of 1,132,000. The table below summarizes historical population trends in key cities in Western Riverside County, compared to the overall county's patterns. Table III-3. HistoricalPonuiation Growth in San Jacinto and Riverside County Riverside County Growth Rate 1990 1995 2000 2005 1995-2005 San Jacinto 16,210 19,633 23,779 28,028 3.62% Hemet 36,094 46,073 58,812 78,557 5.48% Perris 21,460 27,868 36,189 47,815 5.55% Moreno Valley 118,779 130,046 142,381 157,703 1.95% Rest of Riverside County 950,771 1,104,991 1,284,226 1,538,128 3.36% Total Riverside County 1,170,413 1,344,894 1,545,387 1,850,231 3.24% San Jacinto Share of County 1.38% 1.46% 1.54% 1.51% 0.37% Source: Census Bureau, California Dept. of Finance and ERA As shown, Riverside County's population has increased at an annual average rate of 3.2 percent annually from 1995 to 2005. The cities of San Jacinto, Hemet and Perris have grown at much higher rates during the last five years. In San Jacinto, the population increased at an average annual rate of 3.6 percent, while Hemet and Perris experienced growth at a rate of 5.5 percent and 5.6 percent, respectively. Currently, the population of San Jacinto is estimated at 28,028, while the entire county's population totals 1.85 million. San Jacinto, being. largely undeveloped, accounts for only 1.5 percent of the total county population. Economics Research Associates Project No. 16070 11I-4 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Ccustructie i Activity As shown in TahEe ll7g-4, residential construction has been extremely active in Riverside County for the Last decade. From 1994 to 2004, over 181,000 permits were issued for residential construction in the county. The vast majority of these, or 88 percent, were single- family permits. In the ten-year period, an average of 16,500 permits were issued annually, of which 14,500 were permits for single-family homes. The average annual growth rate in construction permits during this period was 15 percent for Riverside County, San Jacinto has also experienced significant growth in housing construction in the last decade. A total of over 3,000 permits were issued from 1994 to 2004, for an annual average of 274 units per year. Almost all of the new 'units built during this period were single-family units, which composed 98 percent of permits issued in San Jacinto. The rate of residential construction has accelerated sharply during the past four years. It was 205 units in 2001 but increased to 345 units in 2002, 463 units in 2003 and 995 units in 2004. Demographic Characteristics Racial and Ethnic Diversity The racial and ethnic composition of residents by jurisdiction in 2000 is shown in Figure M- 3. The communities vary significantly in the ethnic and racial mix, with nearly 80 percent of Hemet's residents identifying themselves as White, compared to about 40 percent of Perris residents. San Jacinto has a diverse mix of races and ethnicities, with about 31 percent non- White residents. The Hispanic and Latino population in the key jurisdictions is presented in Figure 1I1-4 below. As shown, 41 percent of San Jacinto's population is Hispanic/Latino, a representation much higher than in the county or state. Hemet has a much lower representation of Hispanics/Latinos at 23 percent, while Perris has a much higher percentage of 57 percent. Economics Research Associates Project No. 16070 III-5 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Table III-4. Rcsitkntial Building Permits, 1994 to 2004 Annual Average Increase Jurisdiction 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Total 94-04 94-114 San Jacinto Single Family 61 101 54 77 184 376 153 205 343 463 943 2,960 269 31% Multi Runily 0 0 0 0 0 0 0 0 0 52 52 5 Total 61 101 54 77 184 376 153 205 343 463 995 3,012 274 I knit Single Family 116 113 141 91 200 299 565 451 338 798 804 3,916 356 21% lvkdti Family 0 0 0 114 0 0 71 8 44 4 68 309 28 Total 116 113 141 205 200 299 636 459 382 802 872 4,225 384 Penis Single Family 83 20 114 113 85 186 9 145 491 1,269 1,573 4,088 372 34% Multi Emily 0 0 0 0 0 80 70 0 186 0 0 336 31 Total 83 20 114 113 85 266 79 145 677 1,269 1,573 4,424 402 Moreno Valley Single Family 291 202 158 234 245 259 323 602 1,152. 2,011 2,109 7,586 690 22% Multi Family 0 24 0 108 0 0 0 0 70 448 1;505 2,155 196 1gal 291 226 158 342 245 259 323 602 1,222 2,459 3,614 9,741 886 Riveaside County Single Family 7,690 6,803 7,021 8,678 10,758 12,659 13,630 16,556 20,591 25,137 29,478 159,001 14,455 14'%n Multi Family 596 143 478 1,106 1,735 1,920 1,780 2,458 2,0'73 5,224 4,748 22,261 2,024 'total 8,286 6,946 7,499 9,784 12,493 14,579 15,410 19,014 22,661 30,361 34,226 181,262 16,478 Source: Construction Industry Research ch Board Economics Research Associates Project No. 16070 Report. 11.2.2005 Markel Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor 111-6 Figure )i1-3. Ethnic Composition far Key Cities and Riverside County 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Ethnic and Racial Composition of Key Cities San Jacinto Hemet Perris Moreno Ve ley Riverside County White j African American 0 Native American 0 Asian and Pacific Islander 0 Other Race Source: US Census 2000; Economics Research Associates, 2005. Figure II 4 Hispanic and Latino Population in Key Jurisdictions, 2000. 70.0% Hispanic! Latino Population as Percent of Total by Jurisdiction 57.3% 50.0% 50.D% 40.0% 36.2% 38.4% 30.0% 20.D% 10.0% 0.0% 23.0% 40.9°A 32.4% Riverside Herne Moreno Valley Parris San Jacinto California County Source: US Census 2000; Economics Research Associates, 2005. Economics Research Associates Project No. 16070 1I1-7 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Age The chart below (Figure Ill-5) illustrates the distribution of the population of each jurisdiction by age group. As shown, seniors are more generously represented in the San Jacinto Valley than in the county as a whole. This is largely due to the presence of many retirement communities in the valley. Nearly a third of the population in Hemet is made up of seniors in the 65 and over age groups. San Jacinto's share of seniors is at 17 percent, compared to 13 percent and 11 percent in the county and state, respectively. By contrast, Moreno Valley and Perris have a greater representation of children under 15 than the other jurisdictions. Children compose 31 and 34 percent of the population in Moreno Valley and Perris, respectively. Children under 15 make up 26 percent of the population of Riverside County and 23 percent of the statewide population. In San Jacinto, this group represented 27 percent of the population, about the same level as the county. Figure 1Il1-5 Distribution of Population by Age, 2000. 100% 90% 80% 70% 60% 5 0 % 40% 30% 20% 10% 0% Distribution of Population by Age Group Riverside County Hemet Mo eno Valley Perris San Jacinto California ❑ Under 15 ® 15-19 ❑ 20-24 0 25-29 ■ 30-34 ® 35-39 ® 40-44 0 45-54 ® 55-64 ® 65-74 ❑ 75+ Source: US Census 2000; Econorrics Research Associates. 2005. Economics Research Associates Project No. 16070 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor I1I-8 Educational Attainment In terms of educational attainment, the jurisdictions of Western Riverside County vary fzorn one another. Countywide, about 50 percent of residents 25 or over had a high school diploma or equivalent, compared to 43 percent in the state. Nearly 27 percent of the state's adults had a bachelor's degree or advanced degree, compared to about 17 percent in Riverside County. The individual communities profiled below showed similar patterns to the county. The percentage of adult residents over 25 with a bachelor's degree or higher ranged from 7 percent in Perris to 14 percent in Moreno Valley. In San Jacinto, about 9 percent cf the population over 25 had a bachelor's degree or further education. Figure II1-6 Educational Attainment by Jurisdiction, 2900 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Riverside County Educations! Attainment by Jurisdiction Hemet Moreno Valley Perris San Jacinto California ❑ No schooling ® Less than 9th ❑ 9th to 12th ❑ High school diploma ■ Some college ❑ AA ®BA ❑ Prof/ masters Source: US Census 2000; Economics Research Associates, 2005. However, recent trends indicate that the educational level of residents in Western Riverside County is rising, as middle -income households from coastal counties (Orange County, San Diego County, and Los Angeles County) relocate into the Inland Empire, due to the lower cost of new housing and expanding employment opportunities in the region. Economics Research Associates Project No. 16070 III-9 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Income Distribution According to the 2000 Census, the various communities of Riverside County varied in household income distribution. As shown below, Hemet and San Jacinto had a higher percentage of low-income residents than the county of Riverside and the state of California. In 1999, approximately 36 percent of Hemet households and 33 percent of San Jacinto households had incomes under $20,000. By contrast, 21 percent of Riverside County and 20 percent of California households had incomes under $20,000. Similarly, Hemet and San Jacinto had a smaller percentage of wealthy households earning over $100,000, at three and four percent, respectively, compared to the county (12 percent). Figure III-7. Distribution of } ousehoid Income by Jurisdiction, 1999 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Riverside County Distribution of l- ousehoCd income by Jurisdiction Hemet Moreno Valley Perris San Jacinto California Less than $10,000 a $10,000 - $19,999 ❑ $20,000 - $29,999 ❑ $30,000 - $39,999 ® $40,000 - $49,999 ❑ $50,000 - $59,999 a $60000 - $74,999 0 $75,000 - $99,999 a $100,000 - $149,999 a 6150,000 + Source: US Census 2000; Economics Research Associates, 2005. Median household income was significantly lower in Hemet and San Jacinto than in neighboring Moreno Valley and in the overall county. In 1999, median household income in Hemet was $26,800 and $30,600 in San Jacinto, compared to $42,900 in Riverside County. The median household income in Moreno Valley was higher than the county's at $47,400, and very close to the state median of $47,500. Economics Research Associates Project No. 16070 III-10 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Figure 111-8. Median household Income by ,Jurisdiction, 1999. S50,000 S45,000 S40,000 S35,000 S30,000 525,000 $20,000 S15,000 310,000 $5,000 Median ifousePnaid Income by Jurisdiction Riverside County Hemet Moreno Valley Source: US Census 2000; Economics Research Associates, 2005. Ferris San Jacinto California However, with new homes selling in the $300,000 to $400,000 range in the San Jacinto Valley, median household incomes have risen since 2000 and will continue to increase rapidly in the decade ahead. Population Growth Forecasts Forecasts by the Southern California Association of Governments (SCAG) show that the region's rapid growth is expected to continue well into the next 20 years. By 2030, SCAG estimates that Western Riverside County will add another million residents for a total population of 2.4 million, with 400,000 new homes and 470,000 new jobs fueling this growth. The growth rate in Riverside County will outpace San Bernardino, San Diego, Orange County and Los Angeles County from 2000 to 2025. Most of the population increase is forecast to come from domestic migration and high birth rates. In 2003, WRCOG attributed 20 percent of the population growth in the county to natural increase, and 80 percent to net migration. All of the communities within Western Riverside County are expected to see significant growth, with the exception of Norco and Canyon Lake. Economics Research Associates Project No. 16070 111-11 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Considering the recent rapid acceleration in residential construction and the level of residential developer interest currently, ERA. considers the official SCAG population forecasts for San Jacinto to be unrealistically low. Therefore, ERA forecast the population of San Jacinto for the next twenty years using the assumptions outlined below: • ERA estimated that there would be approximately 1,700 units added per year from 2005 to 2010 for a total of 8,500 units. • As land becomes more scarce and expensive, the rate of construction is expected to slow slightly from 2010 to 2015 to 1,300 units per year, and continue slowing to an annual average of 500 housing units per year in the 2020 to 2025 period. f Overali, San Jacinto will add approximately 22,250 units during the next 20 years. • Assuming a stabilized vacancy rate of five percent, about 21,100 households wl"s_l be added from 2005 to 2025. • The average household size in San Jacinto is currently 2.84, and is projected to increase slightly over the next two decades, as young families buying new homes have more children. • These new households will add approximately 61,500 people over the next 20 years. Table 111-5. Population Projection Assumptions for San Jacinto 2005-10 2010-15 2015-20 2020-25 2005-25 Number housing units added annually 1,700 1,300 950 500 4,450 Total new housing units 8,500 6,500 4,750 2,500 22,250 Total new households` 8,075 6,175 4,513 2,375 21,138 Average household size 2.8 2.9 3.0 3.0 2.9 Population in new households 22,933 17,908 13,538 7,125 61.503 I Assumes vacancy rate of 5 percent in market equilibrium. Source: ERA Based on the assumptions outlined above, ER.A's forecast shows that San Jacinto's population will increase from 28,000 in 2005 to 68,900 in 2015 and nearly 90,000 in 2025. This represents a total population increase of219 percent at an average rate of six percent annually. Economics Research Associates Project No. 16070 ill-12 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Table 111-6. Population Projection Assn ions for San Jacinto Jurisdiction 2005 2010 2015 2020 2025 San Jacinto 28,028 50,961 68,869 82,406 89,531 Hemet 78,557 105,100 121,911 138,496 152,911 Perris 47,815 63,440 70,014 76,501 83,589 Moreno Valley 157,703 169,895 187,816 205,503 224,856 Rest of Riverside 1,538,128 1,696,036 1,921,917 2,141,372 2,393,147 Riverside County Total 1,850,731 2,085,432 2,370,526 2,644,278 2,949,643 San Jacinto share of County 1.5% 2.4% 2.9% 3.1 % 3.0% San Jacinto Valley share of County 5.8% 7.5% 8.0% 8.4% 8.2% Source: CAS Census; SCAG: ERA. As shown in the projections in Tulle 111-6, the population in Riverside County is projected to reach 2.4 pillion by 2015 and 2.9 million by 2025. San Jacinto's population of nearly 90,000 in 2025 will compose approximately three percent of the county's population, compared to 1.5 percent currently. The San Jacinto Valley, which includes the cities of Hemet and San Jacinto, will compose over eight percent of the county population in 2025. The San Jacinto Valley population will exceed 200,000 in about ten years, surpassing a market size threshold required by many national retailers. Economics Research Associates Project No. 16070 1I1-13 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Sn' CTI IV. . CORRIDOR LOCATION AND RESIDENTIAL MARKET OVERVIEW REGIONAL CONTEXT San Jacinto is located in Western Riverside County, approximately 80 miles east of Los Angeles and 90 miles north of San Diego. The city is linked to the greater Southern California region by Ramona Expressway, providing east -west access to 1-215, and Highway 79, providing north -south access to I-10 and Highway 74. San Jacinto possesses both natural and cultural assets. Founded in 1870, San Jacinto is one of Riverside County's oldest cities. Although many structures are no longer standing due to past earthquakes, San Jacinto still possesses historic buildings, such as the Estudillo Mansion, which dates back to 1885. Listed in the National Register of Historic Places, the Estudillo Mansion is significant as the residence of Francisco Estudillo, the proprietor of the large land holdings known as the Estudillo Land Grant, which contained much of what is now known as San Jacinto. The City is now working on restoration of the Estudillo Mansion with the help of the National Park Service and the State Office of Historic Preservation. The San Jacinto Museum, operated by the City, is located on the Estudillo Mansion property. In addition to these historical and cultural assets, San Jacinto also has some natural assets, including Mount San Jacinto, one of the three tallest peaks in Southern California. GATEWAY AREA The Ramona -Sanderson Corridor or Gateway Area is located at the intersection of Highway 79 and the Ramona Expressway. As one approaches the city from the north on Highway 79, the San Jacinto Valley provides an expansive and scenic panorama. Approaches from the northwest on Gilman Springs Road and from the west on Ramona Expressway offer impressive views of the San Jacinto Mountains. The Gateway Area is both a scenic and strategic location for the city. The upgrading of Highway 79 to full freeway status, the construction of the Mid County Parkway and the planned San Jacinto River Levee project, which will free up previously floodplain land for development, greatly enhance the importance of this corridor for the future of San Jacinto. Economics Research Associates Iv-1 Development Opportunities in Ramona -Sanderson Corridor REGIONAL, HOUSING MARKET The Inland Empire is one of the nation's fastest growing regions, and as such, the housing market has been booming in recent years. As shown in Table IV-1, the region's median home prices have continually escalated since 2000, and are expected to keep rising as employment increases and land becomes more scarce. The median price for a single-family home in the Inland Empire has increased from $138,740 to $384,910 in the last five years, representing a price increase of 186 percent (in inflation -adjusted dollars). The increases in Riverside and San Bernardino Counties have been stronger than in other Southern California Counties. However, the median price of a single-family home continues to be significantly lower in the Inland Empire than in neighboring coastal counties. The median price in Orange County was $716,300 in August 2005, more than $330,000 higher. In Los Angeles County, the median price of $564,340 was $180,000 higher than in Riverside and San Bernardino Counties. Given this differential in pricing, it is evident that the Inland Empire housing prices continue to be snore affordable than in other coastal communities. However, the gap between the Inland Empire and the state seems to be closing. Whereas homes in the Inland Empire used to be at just over half of the state median, they are now 68 percent of the median in California. LOCAL HOUSING MARKET Trends in Median Home Price Table IV-2 describes the median housing prices for the month of August for all types of ownership product (including new single-family homes, new condominiums, and resales of both) in some of the key jurisdictions in Riverside County. As indicated, San Jacinto had a median home price of $323,000 in August 2005, compared to $390,000 in Riverside County. The communities of Western Riverside County had slightly lower median prices than other cities in other parts of the county such as Riverside, Temecula, Winchester, and Corona. The median in the city of Riverside was nearly the same as the county's, while the median in Corona was substantially higher at $528,000. The median price increases from August 2004 to August 2005 have been strong for all of Riverside County, and particularly for the communities in the San Jacinto Valley. San Jacinto and Hemet experienced median price increases of 29 percent and 23 percent, respectively, compared to 16 percent in the county. The median home price in San Jacinto is catching up to Economics Research Associates IV-2 Development Opportunities in Ramona -Sanderson Corridor Table IV-1. Median Sales Price Trends in Inland Empire, August 2000-August 2005 Jiff isdiction August August August August August August % Change 2 2000 2001 2002 2003 2004 2005 00-05 Riverside and San Bernardino Counties $138,740 $157,700 $179,910 $228,560 $310,120 $384,910 186.3% Orange County $323,440 $373,780 $437,360 $523,600 $649,590 $716,300 128.5% Los Angeles County $229,200 $249,590 $300,980 $374,720 $455,590 $564,340 154.1 % California $255,580 $276,590 $334,100 $404,870 $474,370 $568,890 129.7%o Inland Empire as %of Stale 54.3% 57.0"/% 53.8% 56.5% 65.4% 67.7"/o Based on closed escrow sales of single-family, detached homes only (no condos). 2 Inflation -adjusted increase in median single-family home price. Source: California Association of Realtors. Table IV-2. Home Sale Activity in Western Riverside County, Year End 2004 t Jurisdiction Units sold Median Price Median Price Price Change 2004 2004 2003 Western Riverside County San Jacinto 997 $242,000 $175,000 $67,000 38.3% Ilenef 2,740 $237,000 $178,182 $58,818 33.0"/n Perris 1,717 $258,000 $185,000 $73,000 39.5% Moreno Valley 4,876 $270,000 $196,500 $73,500 37.4% Other Cities Riverside 6,596 $305,000 $238,000 $67,000 28.2% Corona 4,752 $435,000 $332,000 $103,000 31.0% Temecula 3,669 $407,000 $319,750 $87,250 27.3% Winchester 721 $393,500 $295,000 $98,500 33.4% Riverside County 53,854 $320,000 $250,000 $70,000 28.0% San Jacinto as % of County '1.9% '75.6% 70.0% 95.7% Reporting resale of single family residences and condos as well as new homes and condos. Source: Dataquick Information Systems, 2004. Economics Research Associates Report. 10.2.2005 Development Opporlunities in Ramona -Sanderson Corridor 1V-3 the county. Whereas the median price in San Jacinto in 2004 was about 75 percent of the median in the county, it is now at 83 percent, reflecting the closing gap between San Jacinto's and the county's housing prices. Similar trends can be observed with annual sales price increases in 2003 and 2004, as seen in Table IV-3. In San Jacinto, nearly 1,000 housing units were sold in 2004, representing less than two percent of total sales in the county. The median price for all home sales (including resales) in San Jacinto increased from $175,000 in 2003 to $242,000 one year later, representing a price difference of 38 percent, compared to 28 percent in the county. Similar increases in median prices occurred in other Western Riverside County communities. Table IV-3. Home Sale Activity in Western Riverside County, August 2005' Jurisdiction Units sold Median ?rice Median Price ?rice Change August 2005 August 2005 august 2004 $ Western Riverside County San Jacinto 180 5373.250 $250,000 $73,250 293% Hemet 293 $307,000 $249,000 $58,000 23.3% Perris 250 $340,000 $260,000 $80,000 30.8% Moreno Valley. 509 $359,000 $287,000 $72,000 25.% Other Cities Riverside 702 .°;390,000 $320,000 $70,000 21.9% Corona 543 $528,000 $450,000 $78,000 17.3% Temecula 319 $470,000 $410,000 $60,000 14.6% Winchester 74 $444,250 $415,250 $29,000 7.0% Riverside County 5,610 $389,500 $335,000 $54,500 16.3% San Jacinto as % of County 3.2% 83.0% 74.6% 134.4% Reporting resale of single family residences and condos as well as new homes and condos. Source: Dataquicic Information Systems, 2004. Projects in Planning and Construction According to the City of San Jacinto, there are numerous housing development projects in planning and construction phases throughout the city. Table IV-4 outlines the number of housing units in the various stages of development in the Gateway Area and in the overall city. As shown, there are approximately 8,700 units in planning stages and 3,280 units in construction currently, for a total of almost 12,000 units citywide. ERA estimates that approximately 60 percent of the units planned will be completed between 2005 to 2010, Economics Research Associates Report. 10.2.2005 Development Opportunities in Ramona -Sanderson Corridor IV-4 representing over 5,200 units. When added to the units currently in construction, ERA estimates that San Jacinto will have 8,500 new homes by 2010. Table 1V-4. Housing Units in Planning and Construction in San Jacinto, 2005. Planned Housing Unit Development I Units in Total Housing Planned Units Construction Units Gateway Area 525 0 525 Other Areas 8,170 3,280 11,450 Total San Jacinto 8,700 3,280 11,980 Percent to be completed 2005-10 (estimate) 60% 100% 71% Total units built 2005-10 (estimate) 5,220 3,280 8,500 Units in planning and construction based on City of San Jacinto's tentative maps dated August 2005. Source: City of San Jacinto; Economics Research Associates. DEMAND ANALYSES Housing demand is currently very strong in San Jacinto Valley, and the number of residential units permitted in San Jacinto has just this past year exceeded the number in Her let for the first time since 1999. In the previous section ERA estimated that the city will have demand for 22,250 units over the next 20 years. During the next few years, demand will continue to be for single-family units. However, as land becomes scarcer and the San Jacinto achieves a higher degree of urbanization, town houses, condominiums and apartments will become more popular. ERA's estimated housing demand distribution by product type is presented in Table IV-5. The issue in the Ramona -Sanderson Corridor is the risk of strong single-family housing demand pre-empting other land uses important to the community's future in terms of jobs, taxes and a unique sense of place. Table IV-5. Projected Distribution of Housing Demand by Product Type 2005-10 2010-15 2015-20 2020-25 2005-25 Number housing units added annually 1,700 1,300 950 500 4,450 Total new housing units 8,500 6,500 4,750 2,500 22.250 Single Family Percentage 95% 88% 80% 68% 87% Townhouse Percentage 5% 9% 13% 18% 9% Multi Family Percentage 0% 3% 7% 14% 4% Single Family Detached Units 8,075 5,720 3,800 1,700 19,295 Townhouses 425 585 618 450 2,078 Apartments or Condominiums 0 195 333 350 878 Source: ERA Economics Research Associates Report. 10.2.2005 Development Opportunities in Ramona -Sanderson Corridor IV-5 SECTION V. OFFICE AND l; USINESS PARK DEVELOPDEVELOPMENT POTENTIAL This section describes the local and regional office and industrial real estate markets, and estimates current and future demand for office and business park development in San 'Jacinto and the Ramona -Sanderson Corridor. REGIONAL OFFICE MAJRK T Inland Empire Region The inland Empire office market is strong due to a combination of low interest rates, relatively low cost of land, and an abundance of reasonably priced labor. Commercial development in the region has increased rapidly to keep pace with the explosion in population growth, which has generated demand for all types of goods and service in the region. Office, medical, and industrial condominium development have increased in popularity in the southwest subregion of the Inland Empire, where land costs have increased by about 30 to 40 percent in the last year.' In the multi -tenant office sector, the vacancy rate is currently three percent (with a range of two to four percent in the last year). Class A buildings have asking gross lease rates ranging from S2.20 to $2.75 per square foot per month; which is similar to lease rates in the San Francisco Financial District. The most recent reports by real estate brokers indicate that the Inland Empire regional office market is the second tightest market in the country, and 2.5 million square feet of space is planned for construction. The cities of Riverside, San Bernardino, and Corona are experiencing a great deal of office construction. According to CB Richard Ellis, there were three major office projects completed in the second quarter of 2005, including one Class A building and two Class B buildings, for a total of over 108,000 square feet in San Bernardino. Other projects in construction include Canyon Crossing Corporate Center in Riverside, Brier Business Center in San Bemardino, and Lakeview Center and Airport Corporate Center in Ontario. The Grove, a new 350,000-square-foot office campus located in the Hunter Business Park of Western Real Estate Business, "Market Highlight" August 2005. Economics Research Associates Project 16070 V-1 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor Riverside will be completed in 2007, and will become the largest new office campus in that city. There is reportedly over 1.5 million square feet of speculative Class A office space under construction in the city of Riverside. Riverside County In 2005, the total office inventory in Riverside County was 18.2 million square feet (see Table V-1). About 17.1 million square feet was occupied, representing a vacancy rate of 6.2 percent. From 2000 to 2003 the vacancy rates remained at about six to seven percent. Then in 2004 the regional office vacancy rate turned upward slightly to reach 8.3 percent as new space came onto the market. In the last year, with strong absorption the vacancy rate has come down again to about six percent. When averaged over the preceding five years, office absorption (net increase in occupied space) in Riverside County has averaged 469,000 square feet annually. The 2003 absorption was only 193,000 square feet, but by 2004 it had climbed to 722,000 square feet. Over the past four quarters, absorption totaled 820,000 square feet. The Riverside County office market is clearly heating up; however, it has not yet reached San Jacinto. According to Costar, a proprietary data source, San Jacinto's current office inventory totals only 128,000 square feet, a negligible share of the regional market (Table V-2). There are no vacancies, and there has been little construction in the last few years. The only new office project that ERA was able to uncover is a 28,000-square-foot building currently in construction at the corner of Seventh and State. INDUSTRIAL/ILEX MARKET ERA also reviewed the industrial/flex market in Riverside County to assess the potential demand for flex and light industrial space in San Jacinto. As indicated in Table V-3, Riverside County currently has about 3.9 million square feet of flex space, of which 11 percent is vacant. Over the last five plus years, average annual absorption was 91,000 square feet. Total absorption for the first two quarters of this year was 16,000 square feet. Riverside County has substantial warehouse development, but limited industrial/flex or research and development (R & D) space. The City of San Jacinto is not interested in the development of warehouse distribution use, and the demand for such use is not covered in this report. The average lease rate for industrial/flex space is now approximately $10.69 per square foot, triple net. Economics Research Associates Project 16070 V-2 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor Table V-1. Total Existing Office Space in Riverside County Total Total Total No. of Total Total Vacancy Total Vacant Vacant Occupied Total Net Average Period Bldgs RBA Vacancy % Available Avail "A SF Absorption Rate (1's) 2000 I Q 991 15,712,338 1,193,840 7.6% 1,1 75,301 7.5% 14,518,498 262,530 $15.24 2000 2Q 992 15,754,788 959,429 6.1% 963,07'7 6.1% 14,795,359 276,861 $ 15.28 2000 3Q 994 15,773,738 1,013,473 6.4% 886,462 5.6% 14,760,265 (35,094) $15.10 2000 4Q 995 15,777,508 981,759 6.2% 852,794 5.4% 14,795,749 35,484 $15.30 2001 IQ 999 15,888,600 966,444 6.1% 884,796 5.6% 14,922,156 126,407 $15.73 2001 2Q 1,003 16,114,720 1,253,846 7.8% 1,144,763 7.1% 14,860,874 (61,282) $16.51 2001 3Q 1,004 16,127,102 1,191,422 7.4% 1,023,607 6.3% 14,935,680 74,806 $16.23 2001 4Q 1,007 16,170,246 1,168,892 7.2% 1,017,454 6.3% 15,001,354 65,674 $17.07 20021Q 1,017 16,296,028 1,021,878 6.3% 949,409 5.8% 15,274,150 2'72,796 $17.54 2002 2Q 1,017 16,296,028 1,069,545 6.6% 989,306 6.1% 15,226,483 (47,667) 817.65 2002 3Q 1,019 16,365,726 1,026,962 6.3% 941,92'7 5.8% 15,338,764 112,281 $17.67 2002 4Q 1,023 16,526,084 1,156,051 7.0% 1,051,120 6.4% 15,370,033 31,269 $18.22 2003 IQ 1,026 16,583,034 1,097,302 6.6% 991,370 6.0% 15,485,732 115,699 $18.56 2003 2Q 1,027 16,595,431 1,073,478 6.5% 991,458 6.0% 15,521,953 36,221 $19.75 2003 3Q 1,030 16,704,924 1,155,478 6.9% 1,154,083 6.9% 15,549,446 27,493 $20.05 2003 4Q 1,034 16,840,189 1,276,879 7.6% 1,194,100 7.l% 15,563,310 13,864 $20.58 20041Q 1,040 16,928,406 1,337,447 7.9% 1,187,148 7.0% 15,590,959 27,649 $21.33 2004 2Q 1,060 17,197,140 1,433,049 8.3% 1,204,506 7.0% 15,764,091 1'73,132 $21.75 2004 3Q 1,064 17,260,940 1,126,199 6.5% 929,796 5.4% 16,134,741 370,650 $21.71 2004 4Q 1,067 17,308,704 1,023,870 5.9% 845,412 4.9% 16,284,834 150,093 $21.81 2005 1Q 1,079 17,530,091 1,054,533 6.0% 848,736 4.8% 16,475,558 190,724 $22.58 2005 2Q 1,087 17,703,994 985,093 5.6% 878,228 5.0% 16,718,901 243,343 $22.35 2005 QTD 1,112 18,240,058 1,129,826 6.2% 973,582 5.3% 17,110,232 235,931 $22.45 Source: CoStar Economics Research Associates Project 16070 V_3 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor Table V-2. Total Existing Office Space in San Jacinto Total Total Total No. of Total Total Vacancy Total Vacant Vacant Occupied Total Net Average Period Bldgs RBA Vacancy % Available Avail "A SF Absorption Rate (fs) 2000 1 Q 16 128,354 0 0.0% 0 0.0% 128,354 0 2000 2Q 16 128,354 0 0.0% 0 0.0% 128,354 0 - 2000 3Q 16 128,354 0 0.0°A 0 0.0% 128,354 0 2000 4Q 16 128,354 0 0.0% 0 0.0% 128,354 0 2001 I Q 16 128,354 12,800 10.0% 12,800 10.0% 115,554 (12,800) $9.00 2001 2Q 16 128,354 11,500 9.0% 11,500 9.0% 116,854 1,300 $9.00 2001 3Q 16 128,354 11,500 9.0% 11,500 9.0% 116,854 0 $9.00 2001 4Q 16 128,354 11,500 9.0% 11,500 9.0% 116,854 0 $9.00 20021Q 16 128,354 11,500 9.0% 11,500 9.0% 116,854 0 $9.00 2002 2Q 16 128,354 11,500 9.0% 11,500 9.0% 116,854 0 $9.00 2002 3Q 16 128,354 7,100 5.5% 7,100 5.5% 121,254 4,400 $9.00 2002 4Q 16 128,354 7,100 5.5% 7,100 5.5% 121,254 0 $9.00 2003 I Q 16 128,354 0 0.0% 0 0.0% 128,354 7,100 $9.00 2003 2Q 16 128,354 0 0.0% 0 0.0% 128,354 0 2003 3Q 16 128,354 0 0.0% 0 0.0% 128,354 0 2003 4Q 16 128,354 0 0.0% 0 0.0% 128,354 0 2004 1 Q 16 128,354 2,800 2.2% 2,800 2.2% 125,554 (2,800) $7.80 2004 2Q 16 128,354 2,800 2.2% 1,400 1.1% 125,554 0 $7.80 2004 3Q 16 128,354 1,400 1.1% 0 0.0% 126,954 1,400 2004 4Q 16 128,354 0 0.0% 0 0.0% 128,354 1,400 2005 1Q 16 128,354 0 0.0% 0 0.0% 128,354 0 2005 2Q 16 128,354 0 0.0% 0 0.0% 128,354 0 2005 QTD 16 128,354 0 0.0% 0 0.0% 128,354 0 Source: CoStar Economics Research Associates Project 16070 V-4 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor Table V-3. Total Existing Flex Space in Riverside County Period Total Total Total No. ut' Total Total Vacancy Total Vacant Vacant Occupied Total Net Average Bldgs RBA Vacancy % Available Avail % SF Absorption Rate (fs) 2000 IQ 150 3,431,533 389,178 11.3% 379,178 11.0% 3,042,355 19,325 $4.37 2000 2Q 15I 3,444,645 371,763 10.8% 371,763 10.8% 3,072,882 30,527 $5.45 2000 3Q 151 3,444,645 274,524 8.0% 253,206 7.4% 3,170,121 97,239 $5.'76 2000 4Q 151 3,444,645 235,838 6.8% 225,422 6.5% 3,208,807 38,686 $5.65 2001 IQ 152 3,450,812 257,730 7.5% 201,251 5.8% 3,193,082 (15,725) $5.92 2001 2Q 152 3,450,812 338,163 9.8% 213,569 6.2% 3,112,649 (80,433) $6.84 2001 3Q 153 3,483,584 265,254 7.6% 161,848 4.6% 3,218,330 105,681 $5.96 2001 4Q 156 3,502,453 165,660 4.7% 157,591 4.5% 3,336,793 I18,463 $6.18 2002 1Q 160 3,570,847 199,612 5.6% 166,991 4.7% 3,371,235 34,442 $6.64 2002 2Q 162 3,620,833 310,180 8.6% 269,336 7.4% 3,310,653 (60,582) $7.41 2002 3Q 163 3,625,117 281,954 7.8% 232,508 6.4% 3,343,163 32,510 $7.95 2002 4Q 165 3,651,915 299,266 8.2% 273,378 7.5% 3,352,649 9,486 $8.49 2003 1 Q 168 3,675,915 359,368 9.8% 311,3'70 8.5% 3,316,547 (36,102) $9.15 2003 2Q 170 3,696,915 398,085 10.8% 346,881 9.4% 3,298,830 (17,717) $9.41 2003 3Q 170 3,696,915 323,647 8.8% 228,283 6.2% 3,373,268 74,438 $9.48 2003 4Q 170 3,696,915 229,800 6.2% 234,232 6.3% 3,467,115 93,847 $9.50 2004 IQ 170 3,696,915 259,308 7.0% 229,717 6.2% 3,437,607 (29,508) $9.77 2004 2Q 174 3,736,570 238,351 6.4% 191,713 5.1% 3,498,219 60,612 $9.93 2004 3Q 174 3,736,570 202,556 5.4% 174,713 4.7% 3,534,014 35,795 $10.29 2004 4Q 175 3,765,070 169,203 4.5% 152,802 4.1% 3,595,867 61,853 $10.52 2005 IQ 184 3,847,1 15 216,021 5.6% 183,191 4.8% 3,631,094 35,227 $10.90 2005 2Q 189 3,939,547 410,692 10.4% 388,432 9.9% 3,528,855 (102,239) $10.90 2005 QTD 192 3,983,239 438,661 1 I.0% 422,936 10.6% 3,544,578 15,723 $10.69 Source: CoStar Economics Research Associates Project 16070 V-5 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor ERA SELECTED BUSINESS PARKS IN RECII N There are only a few Class A business parks in the Inland Empire. The following is a description of selected office and business parks in this region. Crossroads Corporate Center, Murrieta Crossroads Corporate Center in Murrieta, located on the 1-215 freeway, has recently completed. the construction of its first phase. The overall development will consist of four buildings for a total of 273,000 square feet upon completion. Phase 1 is a 78,000 square -foot, four-story building, which is expected to be fully leased in the near future. Phase II, another similarly sized building, will breaking ground shortly. Hunter Business Park, Riverside Riverside's Hunter Business Park is located at the interchange of I-215 and SR 60, with rail access also available from the UPS? and BNSF lines. The park has a mixture cf traditional industrial tenants and new high tech businesses. According to the City of Riverside Economic Development department, the business park has been successful due to several factors: Existence of strong industrial base. • City's own public utility department, offering incentive for new, expanding, and relocating businesses. • Location within the Agua Mansa Enterprise Zone, which offers valuable tax incentives by the state and city. • Major freeway interchanges offering access to 1-215, SR-60. and SR-91, with proximity to I-15. • Presence of a major university. University of California, Riverside. Located within the Hunter Business Park, the 56-acre University Research Park is designed for R&D and technology -based manufacturing businesses. The park was established by a partnership between the City of Riverside, the County of Riverside, and the UC Riverside. The business park is Located in proximity to the university, and is able to attract high technology tenants partly due to this relationship. Among the tenants of University Research Economics Research Associates Project 16070 V-6 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor Park are software companies Q Motions, Surado Solutions, and biotechnology firms such as Centrum Analytical Laboratories and Encore Pharmaceuticals. Monthly lease rates at Hunter Business Park range from $0.40 per square foot for industrial uses to about $2.00 per foot for office uses. Comnaercesster/Tri-City, San Bernardino The Tri-City Corporate Center is a 153-acre multi -use office park located in San Bernardino, at the junction of I-10 and I-215. The park includes a variety of tenants, including 120 businesses and retailers. There are three Class A office buildings, four single -story research and development buildings, and a transportation center for the Burlington Northern Santa Fe Railroad. Currently, there is 2.5 million square feet of office space at the center, with a vacancy rate of 15.6 percent. Lease rates are approximately 1131.75 SF/month. New transactions signed in 2005 include a 10-year contract with the Art Institute of California for 33,600 square feet, as well as, a lease for 87,000 square feet with Northrop Grumman Missile Systems. According to CB Richard Ellis, the Commercenter/Tri-City submarket has a current vacancy rate of 13 percent, with a lease rate of $1.77 per square foot (also the average lease rate in the Inland Empire overall) . The submarket has 2,388,579 square feet of office space, of which Tri-City Corporate Centre accounts for 812,131 square feet - 34 percent of the submarket. The newest buildings, the 114,000-square-foot Vanderbilt Plaza and the 85,000-square-foot Three Carnegie Plaza, feature dramatic lobbies, state-of-the-art computer controlled HVAC, and parking, ratios of 4:1000. To meet the continued demand, a 72,000-square-foot three-story building with 8.5:1000 parking will be delivered in 2006. Empire Towers, Ontario Empire Towers is a premier office campus development that will ultimately contain approximately 500,000 square feet of Class "A" office space in multiple buildings. The campus features pedestrian pathways, secluded seating areas, fountains and artwork. Adjoining the project to the east is an extensively landscaped plaza encompassing over seven acres. Economics Research Associates Project 16070 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor V-7 The plaza includes two large water features that are connected by an elevated waterway. Pedestrian pathways, seating areas and sculptured landscaping surround each of the water features. There are currently three Class A buildings completed in the complex, Empire Towers I, a nine -story building with 180,0000 square feet; Empire Towers II, a three-story building with 70,000 sf, and Empire Towers III, a three-story building with 75.000 square feet of space. Lease rates are currently $2.05 FSG. DEMAND ANALYSIS ERA estimated future employment -based demand for office and flex space in Riverside County. Table V-4 summarizes the projected employment changes for Riverside County from 2005 to 2015 and from 2015 to 2025, based on official SCAG estimates. According to SCAG, a total of 238,000 new jobs will be generated in the 2005 to 2015 period. A significant amount of the increase will occur in services, retail trade, and construction. ERA applied a percentage to each of the employment sectors that would be likely to occupy office or flex/industrial space. For example, ERA estimated that 72 percent of new manufacturing jobs would occupy light industrial space, while about 95 percent of new finance, insurance and real estate (FIRE) employees would occupy office space. Given these estimates, ERA calculated the number of new employees that would demand office or light industrial/flex space from each of the sectors from 2005 to 2025. The results show that from 2005 to 2015, about 29,400 new employees will need to be housed in industrial/flex space, while 38,200 new employees will demand office space. From 2015 to 2025, an additional 30,200 employees will require new flex/industrial space and 30,700 new employees will demand office space. Table V-5 presents the demand model used to calculate the amount of square footage of office and flex space that will be needed to meet the additional demand from new employment in various sectors in Riverside County. The model incorporates the following assumptions: ® Each office employee will occupy about 250 square feet, while each light industrial/flex employee will require 400 square feet. • In market equilibrium, newly constructed office and light/industrial buildings will have an occupancy rate of 95 percent. Economics Research Associates Project 16070 V-8 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor Table V-4. Employment Generated Demand for Office, Industrial & Flex Space in Riverside County Demand for Office Space 2005-2015 Increase in Employment 2005-2015 Demand for Employment Space n/o Using Light Industrial/Flex' % lJsing Office Employment Using Light Industrial/ Flex Employment Using Office Demand for Office Space 2015-2025 Increase in Employment 2015-2025 Demand for Employment Space n/u Using light Industrial/Flex % Using Office Employment using Light Industrial/ Flex Employment Using 011ice Total Employment 238,465 Construc- tion 29,606 Manutac- turing TCLI' 13,811 5,444 5.0n/n 72.0% 5.0% 3.0% 15.0% 10.0% 29,400 1,480 9,944 817 38,210 1,480 Total Employment 228,297 Construc- tion 29,270 414 anufac- turing 20,229 544 Tcu 6,672 5.0% 72.0% 15.0% 5.0% 3.0% 10.0% 30,218 1,464 14,565 1,001 10,717 1,464 607 667 Wholesale Trade 5,273 0.0% 0.0% 0 0 Wholesale Trade 7,471 0.0% 0.0% 0 0 Retail Trade 52,337 0.0% 0.0% 0 0 Retail Trade 48,521 0.0% 0.0% 0 0 FIRE' Services 8,2'75 1 11,63 9 5.0% 15.0% 95.0% 25.0% 414 16,746 7,861 27,910 FIRE Services 6,922 85,615 5.0% 95.0% 346 15.0% 25.0% 12,842 6,576 21,404 Transportation, Communications, Utilities Finance, insurance, Real Estate Includes employment in manufacturing, TCU sectors, but excludes heavy industry, distribution centers, warehouses, etc. Source: Southern California Council of Governments; ERA. Economics Research Associates Project 16070 V-9 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor REDEVELOPMENT OPERATIONS MANAGER STEVEN PASAROW AGENDA ITEM 3.1 February 16, 2006 TO: The Honorable Mayor and Members of the City Council FROM: Bernie Simon— Finance Director SUBJECT: Approve Warrant Register for Warrants, Prepaid Checks, and Payroll Checks — Government Code 37200 RECOMMENDATION: By motion, approve the warrant register for the warrants, prepaid items, and payroll checks issued since the. last Council meeting, for the period ending February 16, 2006 BACKGROUND: The Council, acting in its oversight role, formally reviews disbursements made through the A/P warrant registers and payroll checks. DISCUSSION: All warrants, pre -paid checks, and payroll checks require Council approval. The following are the warrant and check numbers for this cycle: Warrant/Prepaid # s Cycle Dates. Payroll Checks Cycle Date 74001-74218 February 16, 2006 17601-17616 February 16, 2006 Payroll information is available for Council review in the Finance Department. ALTERNATIVES: 1) Approve Warrant Register 2) Decline to Approve FISCAL IMPACT: Adequate funds have been budgeted to cover the subject expenses. ATTACHMENTS: 1 — Detailed listing of invoices paid and warrant register. Page 1 of 1 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74001 1/23/06 California state controller REQUEST 1/23/06 Fees for audit 04/05 010-1400-414.30-90 100.00 100.00 74004 1/27/06 A.a. chamberlain & assoc. REQUEST 1/12/06 Reim water dep # 00005110 050-0000-229.08-70 500.00 500.00 74005 1/27/06 Abm janitorial services 2535190 01/06 cleaning services 010-1400-414.34-05 520.00 520.00 74006 1/27/06 Al's kubota tractor 199645 201090 201091 Supplies Supplies Supplies 010-7100-410.33-30 010-7100-410.33-30 010-7100-410.33-30 32.27 65.42 26.92 124.61 74007 1/27/06 Allen tire company 186869 Auto repair 010-7100-410.33-50 21.97 21.97 74008 1/27/06 American forensic nurses 21298 21313 21422 Analysis Analysis Analysis 010-3100-431.34-05 010-3100-431.34-05 010-3100-431.34-05 36.95 400.00 260.00 696.95 74009 1/27/06 Anady's trophies 55144 55162 Supplies Supplies 010-2500-425.21-10 010-2510-425.40-12 166.37 576.46 742.83 74010 1/27/06 Arrow printing 4539 4539 Supplies Supplies 010-1100-411.21-10 010-7400-425.21-10 59.80 19.94 79.74 74011 1/27/06 Ballard gas #1159 157140 Propane 010-3110-431.35-12 582.80 582.80 74012 1/27/06 Bio-tox laboratories 14446 14456 14457 Analysis Analysis Analysis 010-3100-431.34-05 010-3100-431.34-05 010-3100-431.34-05 339.06 83.53 35.00 457.59 74013 1/27/06 Blind man, the 96787 Blinds 010-3100-431.33-50 176.71 176.71 74014 1/27/06 Board of equalization REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 010-3100-431.33-10 069-3100-431.40-45 010-1700-417.21-10 010-3200-431.40-45 024-3100-431.33-30 010-1400-414.21-10 050-1400-414.21-10 055-1400-414.21-10 059-1400-414.21-10 050-9000-450.33-30 23.37 44.18 9.47 358.23 11.45 9.07 7.03 7.03 7.03 2,409.06 27,969.00 Page 1 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74014... 1/27/06... Board of equalization... REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 REQUEST 1/30/06 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 2005 sales & use tax due 010-7101-410.33-30 096-1700-417.36-25 010-1110-411.21-10 010-1100-411.21-10 010-4150-410.33-30 082-3200-431.40-45 099-1700-417.30-16 010-1110-411.34-05 010-1111-411.30-90 055-4170-450.21-80 064-3100-431.40-45 010-7100-410.33-30 134.04 370.84 13.33 6.39 457.25 23,641.92 7.36 10.02 93.18 7.86 231.73 109.16 27,969.00... 74016 1/27/06 Ced consolidated electrical 2983-442472 2983-442477 Supplies Supplies 010-2500-425.33-10 010-2500-425.33-10 106.56 61.09 167.65 74017 1/27/06 Chevron 7898195974512 7898195974601 11/05 gasoline 12/05 gasoline 024-3100-431.21-70 024-3100-431.21-70 172.20 70.78 242.98 74018 1/27/06 Fitzpatrick contstruction REQUEST 1/17/06 Exterior gate repair 010-3100-431.33-10 168.75 168.75 74019 1/27/06 Hemet industrial supply 27658 Supplies 010-7100-410.21-80 56.54 56.54 74020 1/27/06 Hemet valley tool & supply 20516 Supplies 010-7100-410.21-80 79.74 79.74 74021 1/27/06 Home depot credit services 4022378 8127668 0023205 7122023 Supplies Supplies Supplies Supplies 010-7100-410.33-30 010-7100-410.33-10 010-7100-410.33-10 010-7100-410.33-10 172.24 43.10 179.50 119.45 514.29 74022 1/27/06 I.b. reprographics 57411 52067 61634 Digital master copy Digital master copy Comp of Ip well report 010-4100-410.21-10 080-9100-450.40-01 010-1200-412.21-10 35.58 236.26 46.26 318.10 74023 1/27/06 Infosend inc. 20514 20514 20514 Postage Postage Postage 050-1400-414.21-10 055-1400-414.21-10 059-1400-414.21-10 169.79 169.79 169.78 509.36 Pas 2 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74024 1/27/06 Inland chevrolet CVCS195755 Auto repair 010-4150-410.33-50 555.50 555.50 74025 1/27/06 Long beach uniform co. 725256 734150 733665 740564 Uniform supplies Uniform supplies Uniform supplies Uniform supplies 010-3100-431.21-35 010-3100-431.21-35 010-3100-431.21-35 010-3100-431.21-35 1,114.20 201.17 299.17 386.37 2,000.91 74026 1/27/06 Micro mobile 14511 Supplies 056-4150-410.33-50 93.62 93.62 74027 1/27/06 Mission uniform services, inc. 17981489 Carpet/mat supplies 010-4150-410.21-35 16.92 16.92 74028 1/27/06 Overnight industrial 29811 29850 Supplies Supplies 010-1400-414.21-10 010-2500-425.21-10 38.68 113.17 151.85 74029 1/27/06 Paetec communications, inc. 1928239 Telephone 010-3100-431.35-16 881.16 881.16 74030 1/27/06 Perma 1/12/06 Administrative fee 010-4150-410.33-30 50.00 50.00 74031 1/27/06 Pip printing 81068 Supplies 010-3100-431.36-10 17.00 17.00 74032 1/27/06 Pju telecomm 13517 13569 Telephone Telephone 010-2500-425.33-30 010-2500-425.33-30 64.50 64.50 129.00 74033 1/27/06 Reliable FBV26800 FBV26800 FBR20700 FBR20700 FBR21000 Office supplies Office supplies Office supplies Office supplies Office supplies 010-2500-425.21-10 010-1400-414.21-10 010-1200-412.21-10 010-4100-410.21-10 010-1110-411.21-10 286.04 74.41 23.29 72.01 24.77 480.52 74034 1/27/06 Riverside, county of REQUEST 1/17/06 Recordation fees 010-4100-410.21-10 64.00 64.00 74035 1/27/06 Shaw, ken REQUEST 1/17/06 Reim of flower purchase 010-2510-425.40-12 25.00 25.00 74036 1/27/06 Stk architecture, inc. 15934 15935 11105 professional sery 11/05 professional sery 082-3200-431.40-01 082-3200-431.40-01 1,422.12 385.00 1,807.12 74037 1/27/06 Trans union llc 12562416 12562416 12562416 12/05 credit check fees 12/05 credit check fees 12/05 credit check fees 050-1400-414.21-10 055-1400-414.21-10 059-1400-414.21-10 37.54 37.54 37.55 112.63 74038 1/27/06 United communities network 2994 2994 12/05 main st clean up 12/05 vir lee/city hall 010-7100-410.34-05 010-2500-425.33-10 987.00 1,050.00 5,037.00 Page 3 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74038... 1/27/06... United communities network... 2976 Johnson-455 e 7th st 099-9700-470.40-01 3,000.00 5,037.00... 74039 1/27/06 Valley chronicle, the 3516644 3516645 Advertisement Advertisement 010-2510-425.40-09 010-2510-425.40-09 115.20 115.20 230.40 74040 1/27/06 Valley service connection 2967 2964 2966 2974 Requlsky-1600 s. san jaci Wawless-2150 san jac #9 Ruditis-144 old mt. road 11/05 322 main clean up 099-9700-470.40-01 099-9700-470.40-01 099-9700-470.40-01 010-2500-425.33-10 1,950.00 1,590.20 2,000.42 504.00 6,044.62 74041 1/27/06 Vista paint 52011530 Supplies 010-7101-410.33-30 116.81 116.81 74042 1/27/06 Vulcan materials company 481233 481234 Supplies Supplies 010-4150-410.33-30 010-4150-410.33-30 219.04 290.76 509.80 74043 1/27/06 Walker, george & ruth REQUEST 1/17/06 REQUEST 1/17/06 REQUEST 1/17/06 Reim credit acct#00022021 Reim credit acct#00022022 Reim credit acct#20019034 050-0000-308.09-10 050-0000-308.09-10 050-0000-308.09-10 96.34 127.11 86.92 310.37 74044 1/27/06 Xerox corporation 193502624 14172072 13671605 14291112 Supplies 11/05 lease on copier 10/05 lease on copier 11/05 lease on copier 010-3100-431.34-05 010-3100-431.34-05 010-3100-431.34-05 010-3100-431.34-05 92.67 527.86 182.81 182.81 986.15 74045 2/2/06 Layne christensen company REQUEST 02/01/6 Final billing 052-9000-450.40-01 173,850.00 173,850.00 74048 2/3/06 Abm janitorial services 2443815 2535184 2535180 3443811 12/05 cleaning service 01/06 cleaning service 01/06 cleaning service 12/05 cleaning service 010-3110-431.33-10 010-3110-431.33-10 010-3100-431.33-10 010-3100-431.33-10 148.00 148.00 842.00 842.00 1,980.00 74049 2/3/06 Adams, tiffany REQUEST 1/06/06 Reim water dep # 10021106 050-0000-229.08-70 250.00 250.00 74050 2/3/06 Al's kubota tractor 202793 Supplies 010-4150-410.21-80 5.00 5.00 74051 2/3/06 Alvarez, arthur REQUEST 1/06/06 Reim water dep # 20005045 050-0000-229.08-70 9.45 9.45 74052 2/3/06 American citi corp. 1066 1066 12/05 car washes 12/05 car washes 010-3300-431.33-50 010-1400-414.33-50 25.95 4.99 30.94 74053 2/3/06 Anady's trophies 53962 Plaques - vest/prince 010-3100-431.21-10 77.58 77.58 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74054 2/3/06 Andre landscaping service, inc. 10541 10554 10560 10561 10596 01/06 maintenance 01/06 maintenance 01/06 maintenance 01/06 maintenance 01/06 maintenance 010-7100-410.34-05 301-8833-500.34-05 010-6500-425.34-05 010-7100-410.34-05 302-8833-500.34-05 25,971.32 2,300.00 500.00 480.00 550.00 29,801.32 74055 2/3/06 Apple -one employment services CA-4847887 CA-4851451 12/31/05 temp employees 01/07/06 temp employees 010-3300-431.30-90 010-3300-431.30-90 942.40 843.99 1,786.39 74056 2/3/06 Applied earthworks inc. 1248-07 12/05 historic strc repor 028-6500-425.40-01 2,178.42 2,178.42 74057 2/3/06 Arrow printing 4541 4544 4544 4544 Office supplies Office supplies Office supplies Office supplies 010-3310-431.21-10 010-1700-417.21-10 096-1700-417.21-10 010-3300-431.21-10 205.80 103.44 103.44 103.44 516.12 74058 2/3/06 Astarabadi, lemia REQUEST 1/06/06 Reim water dep # 10029084 050-0000-229.08-70 2.74 2.74 74059 2/3/06 B & w pipe & supply 70387 70753 70882 71853 Supplies Supplies Supplies Supplies 010-7100-410.33-30 010-7100-410.33-30 010-7100-410.33-30 010-7100-410.33-30 11.00 214.51 62.41 68.96 356.88 74060 2/3/06 Bailey, dorothy REQUEST 1/06/06 Reim water dep # 20009101 050-0000-229.08-70 20.78 20.78 74061 2/3/06 Barrow construction inc. REQUEST 1/20/06 ; REQUEST 1/20/06 REQUEST 1/20/06 Romo-704 santa fe Redford-379 w 2nd street Ramos-575 hewitt street 099-9700-470.40-01 099-9700-470.40-01 099-9700-470.40-01 2,695.00 10,877.00 6,995.00 20,567,00 74062 2/3/06 Beach construction, inc. REQUEST 1/31/06 Material draw 096-9700-470.40-01 14,660.00 14,660.00 74063 2/3/06 Berkewel, mary ward REQUEST 1/06/06 Reim water dep # 30026082 050-0000-229.08-70 50.00 50.00 74064 2/3/06 Best best & krieger Hp DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 12/05 legal services 12105 legal services 12/05 legal services 12/05 legal services 12/05 legal services 12/05 legal services 096-1111-411.30-90 050-1111-411.30-90 010-1111-411.30-90 010-1700-417.30-90 065-0000-201.08-83 065-0000-201.08-1.0 565.50 446.97 22,353.85 11,881.42 339.00 1,389.95 40,912.08 Page 5 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74064... 2/3/06... Best best & krieger Ilp... DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 DECEMBER 2005 12/05 legal services 12/05 legal services 12/05 legal services 12/05 legal services 12/05 legal services 12/05 legal services 12/05 legal services 12/05 legal services 065-0000-201.08-13 065-0000-103.12-68 033-8850-500.30-90 033-8850-500.30-90 026-7190-500.30-91 026-7190-500.30-91 026-7190-500.30-91 400-4150-500.30-90 900.45 415.50 423.84 527.34 517.50 517.50 517.50 115.76 40,912.08... 74066 2/3/06 Bio-tox laboratories 14572 14583 Analysis Analysis 010-3100-431.34-05 010-3100-431.34-05 703.60 288.08 991.68 74067 2/3/06 Blind man, the 96672 Blinds - 160 w 6th street 010-3100-431.33-10 536.60 536.60 74068 2/3/06 Boot barn IVC0000911 IVC0001046 IVC0001046 Boot purchase - baeza Boot purchase - d. frank) Boot purchase - j.grinder 050-9000-450.21-35 050-9000-450.21-35 010-7100-410.21-35 150.00 111.50 266.66 528.16 74069 2/3/06 Business press, the 12/26/05 Subscription 096-1700-417.21-10 59.00 59.00 74070 2/3/06 Caballero, jose REQUEST 1/06/06 Reim water dep # 00027001 050-0000-229.08-70 50.00 50.00 74071 2/3/06 California overnight 4954000 4954000 4954000 4954000 4954000 4954000 4954000 4954000 Postage Postage Postage Postage Postage Postage Postage Postage 026-7190-500.30-90 026-7190-500.30-90 033-8850-500.30-90 400-4150-500.30-90 400-4150-500.30-90 033-8850-500.30-90 010-3300-431.21-10 010-1700-417.21-10 6.62 3.19 3.19 3.19 4.14 4.12 11.22 24.25 59.92 74072 2/3/06 Cardenas, rosa REQUEST 1/06/06 Reim water dep # 10024074 050-0000-229.08-70 24.66 24.66 74073 2/3/06 Ced consolidated electrical 2983-442554 Supplies 050-9000-450.33-30 11.08 11.08 74074 2/3/06 Chavez, cesar REQUEST 1/06/06 Reim water dep # 00006065 050-0000-229.08-70 7.02 7.02 74075 2/3/06 Chavez, pedro REQUEST 1/06/06 Reim water dep # 00022078 050-0000-229.08-70 4.98 4.98 74076 2/3/06 Chayse, qila REQUEST 1/06/06 Reim water dep # 10029079 050-0000-229.08-70 50.00 50.00 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74077 2/3/06 Civic stone 2612 12/05 service 099-9700-470.40-01 ' 948.67 948.67 74078 2/3/06 Clark, cher REQUEST 1/06/06 Reim water dep # 50022018 050-0000-229.08-70 17.34 17.34 74079 2/3/06 Clark, jell REQUEST 1/06/06 Reim water dep # 20030073 050-0000-229.08-70 16.97 16.97 74080 2/3/06 Clark's towing and recovery S13657 Towing fees 010-4150-410.33-50 50.00 50.00 74081 2/3/06 Cnh homes REQUEST 1/24/06 REQUEST 1/24/06 Reim credit acct#00002383 Reim credit acct#00002013 050-0000-308.09-10 050-0000-308.09-10 15.16 25.23 40.39 74082 2/3/06 Contreras, ignacio REQUEST 1/06/06 Reim water dep # 20007108 050-0000-229.08-70 3.26 3.26 74083 2/3/06 Cordrey, april REQUEST 1/24/06 Reim water dep # 00001079 050-0000-229.08-70 1.39 1.39 74084 2/3/06 Corky's pest control, inc. STMT 01/11/06 01/06 pest control 010-3100-431.33-10 125.00 125.00 74085 2/3/06 David leonard associates 1-1-06 1-2-06 1-3-06 Planning srvc-villages Planning srvc-park hill Planning srvc-rancho estr 010-1700-417.30-90 010-1700-417.30-90 010-1700-417.30-90 437.50 274.12 275.92 987.54 74086 2/3/06 David taussig & associates, inc. 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 5110112 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 4,554.19 Page 7 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74086... 2/3/06... David taussig & associates, inc.... 5110112 5110112 5110112 5120133 5120134 5120202 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 5120203 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 11/05 cfd 2003-1 admin 12/05 annexation no. 23 12/05 annexation no. 24 12/05 special tax admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 12/05 cfd 2003-1 admin 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 034-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 033-8850-500.30-90 25.00 25.00 25.00 477.95 497.48 1,330.92 87.40 87.00 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.64 4,554.19... 74090 2/3/06 Davis, jennifer REQUEST 1/24/06 Reim water dep # 00000350 050-0000-229.08-70 41.21 41.21 74091 2/3/06 Deleon, nohemi REQUEST 1/06/06 Reim water dep # 40019039 050-0000-229.08-70 24.79 24.79 74092 2/3/06 Dewey's electric 12/02/05 160 6th st-electrical sry 010-3100-431.33-10 347.40 347.40 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74093 2/3/06 Divines real estate REQUEST 1/06/06 Reim water dep # 20022090 050-0000-229.08-70 38.60 38.60 74094 2/3/06 Doherty, bill REQUEST 1/06/06 Reim water dep # 10016055 050-0000-229.08-70 50.00 50.00 74095 2/3/06 Drew, sirod REQUEST 1/06/06 Reim water dep # 40016023 050-0000-229.08-70 4.05 4.05 74096 2/3/06 Dudek & associates, inc. 20056176 10/29/05-11/25/05 010-1700-417.30-90 1,827.32 1,827.32 74097 2/3/06 E.s. babcock & sons, inc. AA60698-0278 AA61056-0278 AA61224-0278 AA61698-0278 AA61782-0278 Analysis Analysis Analysis Analysis Analysis 050-9000-450.33-30 050-9000-450.33-30 050-9000-450.33-30 050-9000-450.33-30 050-9000-450.33-30 60.00 90.00 48.00 30.00 20.00 248.00 74098 2/3/06 Eastern municipal water district REQUEST 1/26/06 Water sewer agrmt fee 082-3200-431.40-01 4,400.00 4,400.00 74099 2/3/06 Encinias, louise REQUEST 1/06/06 Reim water dep # 10001116 050-0000-229.08-70 20.77 20.77 74100 2/3/06 Esgil corporation 01-06-0031 12/05 plan check services 010-3300-431.34-05 5,794.10 5,794.10 74101 2/3/06 Evans, catherine REQUEST 1/06/06 Reim water dep # 10016033 050-0000-229.08-70 11.35 11.35 74102 2/3/06 Excel! security systems 11979 01/06-03/06 monitoring 010-3110-431.33-10 89.95 89.95 74103 2/3/06 Federal express 3-288-24470 Postage 033-8850-500.30-90 15.54 15.54 74104 2/3/06 Fm lock and safe 44706 Change/install lock 010-3100-431.33-10 693.18 693.18 74105 2/3/06 Fonseca, jose REQUEST 1/24/06 Reim water dep # 00001970 050-0000-229.08-70 42.75 42.75 74106 2/3/06 Gernay, simona REQUEST 1/06/06 Reim water dep # 30028054 050-0000-229.08-70 27.96 27.96 74107 2/3/06 Gfb-friedrich & assoc., inc. 0512-17 0512-18 0512-19 0512-20 0512-21 0512-22 0512-22 0512-22 12/05 Ilpd not annex 39 12/05 Ilpd not annex 11 12/05 Ilpd not annex 50 12/05 Ilpd no2 annex 51 12/05 Ilpd not annex 52 12/05 Ilpd no2 master map 12/05 Ilpd no2 master map 12/05 Ilpd no2 master map 026-7190-500.30-90 026-7190-500.30-90 026-7190-500.30-90 026-7190-500.30-90 026-7190-500.30-90 026-7190-500.30-90 026-7190-500.30-90 026-7190-500.30-90 130.00 65.00 3,622.37 1,749.72 1,884.27 56.67 56.67 56.66 7,621.36 74108 2/3/06 Gonzales, gilbert REQUEST 1/25/06 Reimbursement -fuel purcha 056-4150-410.21-70 49.52 49.52 74109 2/3/06 Green, debbie REQUEST 1/06/06 Reim water dep # 10030070 050-0000-229.08-70 11.99 11.99 Page 9 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74110 2/3/06 Gutierrez, jose REQUEST 1/25/06 Reim water dep # 00002273 050-0000-229.08-70 111.03 111.03 74111 2/3/06 Hall, christopher REQUEST 1/17/06 Per diem -offices assoc. 010-3100-431.31-20 160.00 160.00 74112 2/3/06 Hammerlund, jack REQUEST 1/06/06 Reim water dep # 10013020 050-0000-229.08-70 30.99 30.99 74113 2/3/06 Hearing impaired foundation REQUEST 1/24/06 Reim water dep # 00002065 050-0000-229.08-70 44.73 44.73 74114 2/3/06 Hemet rubber stamp 47925 48052 48052 48052 48134 48324 Office supplies Office supplies Office supplies Office supplies Office supplies Office supplies 010-3100-431.21-10 055-1400-414.21-10 050-1400-414.21-10 059-1400-414.21-10 010-3100-431.21-10 010-3100-431.21-10 104.70 7.72 7.72 7.73 17.78 112.54 258.19 74115 2/3/06 Hess, chris REQUEST 1/06/06 Reim water dep # 20001076 050-0000-229.08-70 32.76 32.76 74116 2/3/06 Hinchliff, nick & ellen REQUEST 1/06/06 Reim water dep # 10003152 050-0000-229.08-70 24.62 24.62 74117 2/3/06 Hogle-ireland 9230 9230 9230 9230 9230 9230 9230 12/04/05-12/31/05 planchk 12/04/05-12/31/05 planchk 12/04/05-12/31/05 planchk 12/04/05-12/31/05 planchk 12/04/05-12/31/05 planchk 12/04/05-12/31/05 planchk 12/04/05-12/31/05 planchk 010-1700-417.30-90 010-1700-417.30-90 010-1700-417.30-90 010-1700-417.30-90 010-1700-417.30-90 010-1700-417.30-90 010-1700-417.30-90 546.25 150.00 926.25 150.00 142.50 213.75 237.50 2,366.25 74118 2/3/06 Home depot credit services 3109389 5103638 8564476 5116340 Supplies Supplies Supplies Supplies 010-3110-431.33-10 010-3110-431.33-10 010-3300-431.21-10 010-3100-431.33-10 135.37 102.11 50.03 6.12 293.63 74119 2/3/06 Horizon water 1/09/06 MODULAR 1/09/06 VIRGINA 01/06 drinking water 01/06 drinking water 010-3300-431.34-05 010-1700-417.34-05 7.50 15.00 22.50 74120 2/3/06 Huizar, jose & maria REQUEST 1/06/06 Reim water dep # 10008057 050-0000-229.08-70 8.29 8.29 74121 2/3/06 Islas, victor REQUEST 1/06/06 Reim water dep # 50026007 050-0000-229.08-70 6.46 6.46 74122 2/3/06 J & j automotive 20887 20895 Auto repair Auto repair 010-3100-431.33-50 010-3100-431.33-50 31.95 31.95 177.10 Pay` City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74122... 2/3/06... J & j automotive... 20896 20897 20708 Auto repair Auto repair Auto repair 010-3100-431.33-50 010-3100-431.33-50 010-4150-410.33-50 41.95 41.95 29.30 177.10... 74123 2/3/06 J & r concrete prod. inc. 27023 Supplies 050-9000-450.33-30 306.44 306.44 74124 2/3/06 James, ray REQUEST 1/06/06 Reim water dep # 10010060 050-0000-229.08-70 11.99 11.99 74125 2/3/06 Kearny realty REQUEST 1/06/06 Reim water dep # 30029009 050-0000-229.08-70 16.63 16.63 74126 2/3/06 Kimmel-france management REQUEST 1/24/06 Reim water dep # 00002284 050-0000-229.08-70 112.69 112.69 74127 2/3/06 Kustom signals, inc. REQUEST 12/5/05 REQUEST 12/5/05 Digital system Pro laser iii 024-3100-431.40-45 024-3100-431.40-45 7,164.36 4,010.60 11,174.96 74128 2/3/06 Lane, curtis & marianne REQUEST 1/24/06 Reim water dep # 00000326 050-0000-229.08-70 124.24 124.24 74129 2/3/06 Lattimer, allison REQUEST 1/06/06 Reim water dep # 10002061 050-0000-229.08-70 6.60 6.60 74130 2/3/06 Leach, archie REQUEST 1/06/06 Reim water dep # 10015082 050-0000-229.08-70 7.49 7.49 74131 2/3/06 Lebeau, joyce REQUEST 1/06/06 Reim water dep # 10014036 050-0000-229.08-70 22.11 22.11 74132 2/3/06 Lizza, virginia REQUEST 1/06/06 Reim water dep # 20002004 050-0000-229.08-70 6.83 6.83 74133 2/3/06 Lofgren, bradley REQUEST 1/06/06 Reim water dep # 10001018 050-0000-229.08-70 50.00 50.00 74134 2/3/06 Lopez, aurelio REQUEST 1/06/06 Reim water dep # 00004043 050-0000-229.08-70 4.60 4.60 74135 2/3/06 Lumbattes, pat REQUEST 1/06/06 Reim water dep # 20006087 050-0000-229.08-70 13.26 13.26 74136 2/3/06 Malcolm smith motorsports 99457450 Auto repair 024-3100-431.33-50 979.86 979.86 74137 2/3/06 May, martha REQUEST 1/06/06 Reim water dep # 20011079 050-0000-229.08-70 24.66 24.66 74138 2/3/06 Mcclure, recil REQUEST 1/06/06 Reim water dep # 20021091 050-0000-229.08-70 3.29 3.29 74139 2/3/06 Mcfadden, david REQUEST 1/06/06 Reim water dep # 20032068 050-0000-229.08-70 11.45 11.45 74140 2/3/06 Mcgargill, mark REQUEST 1/06/06 Reim water dep # 30024096 050-0000-229.08-70 50.00 50.00 74141 2/3/06 Mcnatt, john REQUEST 1/06/06 Reim water dep # 10002204 050-0000-229.08-70 8.58 8.58 74142 2/3/06 Michell, benito REQUEST 1/06/06 Reim water dep # 20018082 050-0000-229.08-70 10.91 10.91 74143 2/3/06 Mission uniform services, inc. S 80545 17981488 17981488 17981490 Uniform supplies Uniform supplies Uniform supplies Uniform supplies 010-4150-410.21-35. 050-9000-450.21-35 055-4170-450.21-35 010-7100-410.21-35 3.53 37.51 17.73 24.57 409.11 Page 11 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74143... 2/3/06... Mission uniform services, inc.... 17981491 17981500 17982397 17982397 17982398 17982400 17982408 S 02056 S 80097 Uniform supplies Uniform supplies Uniform supplies Uniform supplies Uniform supplies Uniform supplies Carpet mats Uniform supplies Uniform supplies 010-4150-410.21-35 010-1400-414.33-10 050-9000-450.21-35 055-4170-450.21-35 055-4170-450.21-35 010-4150-410.21-35 010-1400-414.33-10 050-9000-450.21-35 050-9000-450.21-35 51.60 17.49 41.94 13.64 16.92 51.60 17.49 57.54 57.55 409.11... 74144 2/3/06 Munoz, charlene REQUEST 1/24/06 Reim water acct# 00001468 050-0000-229.08-70 66.39 66.39 74145 2/3/06 Munoz, silva REQUEST 1/06/06 Reim water dep # 30019074 050-0000-229.08-70 16.92 16.92 74146 2/3/06 National association of shcool 14985MI Membership fees 010-3100-431.30-90 30.00 30.00 74147 2/3/06 National safety compliance, inc. 32266 Annual administration fee 010-1210-412.30-90 150.00 150.00 74148 2/3/06 Nextel communications REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular 12/05 cellular equipment 12/05 cellular equipment 010-1100-411.35-17 010-1110-411.35-17 010-1200-412.35-17 010-1400-414.35-17 010-1700-417.35-17 010-3300-431.35-17 010-4150-410.35-17 010-4200-410.35-17 010-7100-410.35-17 029-8662-410.35-17 050-9000-450.35-17 055-4170-450.35-17 096-1700-417.35-17 102-1400-500.35-17 010-1400-414.35-17 010-1400-414.35-17 480.82 72.70 89.28 124.59 132.49 437.14 245.16 132.49 209.76 105.20 245.78 60.94 112.31 59.47 34.47 34.47 2,909.24 Pay City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74148... 2/3/06... Nextel communications... REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 REQUEST 1/23/06 12/05 cellular equipment 12/05 cellular equipment 12/05 cellular equipment 12/05 cellular equipment 12/05 cellular equipment 12/05 cellular equipment 12/05 cellular equipment 12/05 cellular equipment 010-1400-414.35-17 010-1400-414.35-17 010-3300-431.21-10 010-3300-431.21-10 010-3300-431.21-10 010-3300-431.21-10 010-3300-431.21-10 010-3300-431.21-10 25.85 51.71 15.51 15.51 15.51 69.36 69.36 69.36 2,909.24... 74150 2/3/06 Parkins, richard iii REQUEST 1/06/06 Reim water dep # 00002016 050-0000-229.08-70 12.59 12.59 74151 2/3/06 Party planners 980 1094 Estudillo mansion pa sys 10/05 & 01/06 services 010-2510-425.40-09 010-1700-417.34-05 500.00 325.00 825.00 74152 2/3/06 Patton automotive 018845 Auto repair 010-1700-417.33-50 31.86 31.86 74153 2/3/06 Pierce plumbing 32620 32642 32659 32664 Supplies Supplies Supplies Supplies 010-7100-410.33-10 010-7100-410.33-10 010-7100-410.33-10 010-7100-410.33-10 58.58 45.80 55.60 5.38 165.36 74154 2/3/06 Pins and needles embroidery 4191 Uniform supplies 010-3100-431.21-35 25.86 25.86 74155 2/3/06 Pip printing 81131 82047 82394 82454 82454 Office supplies Office supplies Office supplies Office supplies Office supplies 026-7190-500.30-90 033-8850-500.30-90 010-3300-431.21-10 033-8850-500.30-90 033-8850-500.30-90 126.99 1.45 2.16 2.15 2.16 134.91 74156 2/3/06 Pju telecomm 13403 13502 13582 Telephone Telephone Telephone 010-3100-431.33-10 010-3100-431.33-10 010-1700-417.30-90 62.00 82.00 21.25 165.25 74157 2/3/06 Platinium plus for business REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 Chevron -gasoline Lowes-chain for gate Plat plus- c.c. fees 010-1400-414.33-50 010-1400-414.21-10 010-1400-414.30-90 10.00 29.15 35.57 74.72 74158 2/3/06 Platinium plus for business REQUEST 2/3/06 Jiffy lube - auto maint 010-1200-412.33-50 35.23 535.87 Page 13 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74158... 2/3/06... Platinium plus for business... REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 Staples - office supplies Icma - office supplies Icma - office supplies 010-1200-412.21-10 010-1200-412.21-10 010-1200-412.21-10 54.83 77.33 368.48 535.87... 74159 2/3/06 Platinium plus for business REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 REQUEST 2/3/06 Leauge of ca - conference Southwest air - airfare Southwest air - airfare Southwest air - airfare Southwest air - airfare Leauge of ca-registration Us conf of mayors-registr Issi solutions -office sup San jac florist -flowers Davids flowers - flowers R.t.a. - natural fuel Us conf of mayors-registr Plat plus - finance fees 010-1100-411.31-20 010-1100-411.31-20 010-1100-411.31-20 010-1100-411.31-20 010-1100-411.31-20 010-1100-411.31-20 010-1100-411.31-20 010-1400-414.40-45 010-1200-412.31-20 010-2510-425.40-12 010-2500-425.33-50 010-1100-411.31-20 010-1400-414.30-90 495.00 166.90 326.30 290.30 326.30 495.00 800.00 2,463.91 91.58 344.75 12.28 800.00 112.99 6,725.31 74160 2/3/06 Porter, mary REQUEST 1/06/06 Reim water dep # 60002062 050-0000-229.08-70 13.32 13.32 74161 2/3/06 Press enterprise 3020285 3020286 3020284 Advertisement Advertisement Advertisement 026-7190-500.30-91 026-7190-500.30-91 026-7190-500.30-91 110.55 106.70 13.43 230.68 74162 2/3/06 Preston, james REQUEST 1/06/06 Reim water dep # 10001061 050-0000-229.08-70 23.39 23.39 74163 2/3/06 Prokop, thomas REQUEST 1/06/06 Reim water dep # 00008065 050-0000-229.08-70 16.63 16.63 74164 2/3/06 Quality auto parts D806783 D813735 Supplies Supplies 050-9000-450.33-30 050-9000-450.33-50 16.15 19.27 35.42 74165 2/3/06 Quick wrap bags 70895 Supplies 010-3300-431.21-10 64.31 64.31 74166 2/3/06 Quintero, mary REQUEST 1/06/06 Reim water dep # 30031054 050-0000-229.08-70 50.00 50.00 74167 2/3/06 Quiroz, dorothy REQUEST 1/06/06 Reim water dep # 40029014 050-0000-229.08-70 50.00 50.00 74168 2/3/06 Ramirez, paula REQUEST 1/06/06 Reim water dep # 40021091 050-0000-229.08-70 4.38 4.38 74169 2/3/06 Ramona tire 156583 Auto repair 050-9000-450.33-50 183.68 183.68 Pay:': City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74170 2/3/06 Reliable FBY73898 FBX57100 FBX57100 XPT74600 XTX85900 Office supplies Office supplies Office supplies Office supplies Office supplies 010-1400-414.21-10 010-2500-425.21-10 010-1400-414.21-10 010-1400-414.21-10 010-4200-410.21-10 -17.00 12.81 60.44 13.23 18.94 88.42 74171 2/3/06 Rice, mark REQUEST 1/06/06 Reim water dep # 20002105 050-0000-229.08-70 2.02 2.02 74172 2/3/06 Riverside county of, REQUEST 1/18/06 Information cd-midwest co 010-3300-431.30-90 4,000.00 4,000.00 74173 2/3/06 Riverside county sheriffs SH0000004396 11/05 booking fees 010-3100-431.30-19 3,532.80 3,532.80 74174 2/3/06 Riverside, county of REQUEST 1/26/06 12/05 parking citations 010-0000-304.03-35 198.00 198.00 74175 2/3/06 Riverside, county of HS0000001466 HS0000001495 HS0000001496 09/05 animal services 10/05 animal services 11/05 animal services 010-3320-431.34-05 010-3320-431.34-05 010-3320-431.34-05 12,769.81 11,310.42 11,932.35 36,012.58 74176 2/3/06 Rod's automotive performance 151107008 160104004 Auto repair Auto repair 024-3100-431.33-30 024-3100-431.33-30 68.00 70.00 138.00 74177 2/3/06 Rodgers, james REQUEST 1/06/06 Reim water dep # 00025056 050-0000-229.08-70 3.78 3.78 74178 2/3/06 Ronning, darlene REQUEST 1/06/06 Reim water dep # 50002211 050-0000-229.08-70 12.56 12.56 74179 2/3/06 Rosenow spevacek group inc. 0017463 0017464 0017465 0017466 0017467 0017468 12/05 indian gaming 12/05 general implem svcs 12/05 senior -crisp 12/05 rfp ramona sandersn 12/05 planning 12/05 tt33579 099-1700-417.30-90 010-1700-417.30-90 096-1700-417.30-90 096-1700-417.30-90 010-1700-417.30-90 010-1700-417.30-90 325.00 720.00 1,235.00 2,967.50 2,825.00 65.00 8,137.50 74180 2/3/06 San jacinto petty cash, city of REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 Council member/luncheon Council member/luncheon City manager/gasoline Office supplies Office supplies/finance Csmfo meeting/finance Office supplies/comm devp 010-1100-411.31-20 010-1200-412.31-20 010-1200-412.31-20 010-2500-425.33-10 010-1400-414.21-10 010-1400-414.31-20 010-3300-431.21-10 15.00 15.00 10.00 10.30 13.15 17.00 2.68 169.85 Page 15 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74180... 2/3/06... San jacinto petty cash, city of... REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 REQUEST 1/26/06 Parking fee/comm devip Superind meet/streets dep Community devip/gasoline Community devip/gasoline Cmrta meeting/comm devip Office supplies/finance Office supplies/finance Postage/ comm devip 010-3300-431.31-20 010-4150-410.31-20 010-1700-417.21-70 010-1700-417.31-20 010-1701-417.31-20 050-1400-414.21-10 055-4170-450.33-50 096-1700-417.21-10 2.25 15.00 12.76 2.25 20.00 7.96 6.47 20.03 169.85... 74182 2/3/06 San jacinto unified school REQUEST 12/09/5 Pass through 097-0000-239.00-00 551,195.00 551,195.00 74183 2/3/06 Shepler, richard REQUEST 1/06/06 Reim water dep # 00057555 050-0000-229.08-70 88.20 88.20 74184 2/3/06 Shred it 50125591 50151319 50165875 50172814 Paper destruction Paper destruction Paper destruction Paper destruction 010-3100-431.21-10 010-3100-431.21-10 010-1700-417.34-05 010-3300-431.34-05 85.00 85.00 75.00 75.00 320.00 74185 2/3/06 Singh, jagroop REQUEST 1/06/06 Reim water dep # 30026078 050-0000-229.08-70 13.48 13.48 74186 2/3/06 Skyline homes REQUEST 1/25/06 Reim water dep # 00001915 050-0000-229.08-70 323.14 323.14 74187 2/3/06 Smart & final 386856 B Office supplies 010-2500-425.21-10 102.89 102.89 74188 2/3/06 So. california edison co. REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 12/05 electricity 12/05 electricity 12/05 electricity 12/05 electricity 12/05 electricity 12/05 electricity 12/05 electricity 12/05 electricity 12/05 electricity 12/05 electricity 12/05 electricity 01/06 electricity 010-2500-425.35-14 010-3100-431.35-14 010-4150-410.35-14 010-7400-425.35-14 025-7100-410.35-14 025-7250-410.35-14 025-7251-410.35-14 025-7252-410.35-14 025-7260-410.35-14 301-8833-500.35-14 050-9000-450.35-14 010-2500-425.35-14 1,645.97 1,089.19 14.24 623.26 1,461.09 796.05 14.10 1,234.06 774.07 28.20 12,992.21 15.41 41,120.66 PaL City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74188... 2/3/06... So. california edison co.... REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 01/06 electricity 01/06 electricity 01/06 electricity 01/06 electricity 01/06 electricity 01/06 electricity 01/06 electricity 01/06 electricity 010-4150-410.35-14 010-6100-425.35-14 025-7250-410.35-14 025-7252-410.35-14 025-7260-410.35-14 301-8833-500.35-14 302-8833-500.35-14 050-9000-450.35-14 31.04 195.27 16.30 1.91 11,161.67 566.40 416.40 8,043.82 41,120.66... 74190 2/3/06 Staples credit plan 75829 Office supplies 010-1700-417.21-10 133.03 133.03 74191 2/3/06 State of California dept of justice 551109 552681 555581 Analysis Fingerprints apps Analysis 010-3100-431.34-05 010-3100-431.34-05 010-3100-431.34-05 140.00 296.00 35.00 471.00 74192 2/3/06 Stater bros 1210119 Office supplies 010-1100-411.31-20 19.80 19.80 74193 2/3/06 Stericycle, inc. 0003446965 Analysis 010-3100-431.34-05 102.20 102.20 74194 2/3/06 Strattons janitorial service 4500 Qrt carpet cleaning 010-3100-431.33-10 300.00 300.00 74195 2/3/06 T & s investments inc. REQUEST 1/24/06 Reim water dep # 00002266 050-0000-229.08-70 53.83 53.83 74196 2/3/06 Taabs printing 101127 101127 101127 Office supplies Office supplies Office supplies 050-1400-414.21-10 055-1400-414.21-10 059-1400-414.21-10 66.98 66.98 66.97 200.93 74197 2/3/06 Tapia, anastasia REQUEST 1/06/06 Reim water dep # 30029063 050-0000-229.08-70 8.66 8.66 74198 2/3/06 Thomson west 894954 Subscription 010-3300-431.21-15 142.00 142.00 74199 2/3/06 Tierra west appraisal 05456 Appraisal reports 099-1700-417.30-90 3,500.00 3,500.00 74200 2/3/06 Tri-lake consultants, inc. 3682 3690 3914 3916 3915 3690 3690 11/26/05-12/30/05 misc 11/26/05-12/30/05 misc 11/26/05-12/30/05 misc 11/26/05-12/30/05 pin chk 11/26/05-12/30/05 pin chk 11/26/05-12/30/05 misc 11/26/05-12/30/05 misc 010-1700-417.30-90 010-1700-417.30-90 065-0000-201.06-47 065-0000-201.06-47 065-0000-201.06-47 065-0000-201.08-10 065-0000-201.08-85 1,867.50 5,600.00 25,573.96 3,185.29 51,429.61 520.00 320.00 89,336.36 Page 17 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74200... 2/3/06... Tri-lake consultants, inc.... 3690 3690 3690 11/26/05-12/30/05 misc 11/26/05-12/30/05 misc 11/26/05-12/30/05 misc 065-0000-201.08-59 010-1700-417.30-90 065-0000-201.08-83 400.00 120.00 320.00 89,336.36... 74201 2/3/06 Umali, carlo REQUEST 1/19/06 Reimbursement 096-1700-417.21-10 49.00 49.00 74202 2/3/06 United communities network 2975 2977 3023 G. sanders - 1600 san jac J. warren-3440 cottonwood Admin fees 099-9700-470.40-01 099-9700-470.40-01 099-9700-470.40-01 746.97 1,575.79 4,250.00 6,572.76 74203 2/3/06 Valenzuela, carol REQUEST 1/06/06 Reim water dep # 40021007 050-0000-229.08-70 10.72 10.72 74204 2/3/06 Valenzuela, vicente REQUEST 1/06/06 Reim water dep # 00004035 050-0000-229.08-70 12.56 12.56 74205 2/3/06 Valenzuela, victor REQUEST 1/06/06 Reim water dep # 60023031 050-0000-229.08-70 10.53 10.53 74206 2/3/06 Valley wide recreation REQUEST 1/20/06 P/r reim for dec 2005 029-8660-410.30-12 1,866.13 1,866.13 74207 2/3/06 Verizon california REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 REQUEST 2/1/06 12/05 telephone 12/05 telephone 12/05 telephone 12/05 telephone 12/05 telephone 12/05 telephone 12/05 telephone 12/05 telephone 12/05 telephone 12/05 telephone 010-2500-425.35-16 010-3100-431.35-16 010-4150-410.35-16 010-3110-431.35-16 010-4200-410.35-16 010-1700-417.35-17 010-6100-425.35-16 010-7400-425.35-16 025-7252-410.35-16 050-9000-450.35-16 370.92 769.67 30.73 36.98 145.18 29.86 64.78 519.62 263.85 261.59 2,493.18 74208 2/3/06 Western highway products 603603 Supplies 024-4150-410.21-36 259.36 259.36 74209 2/3/06 Willard, scott REQUEST 1/06/06 Reim water dep # 40031073 050-0000-229.08-70 2.75 2.75 74210 2/3/06 Willard, scott & colleen REQUEST 1/06/06 Reim water dep # 40031047 050-0000-229.08-70 6.89 6.89 74211 2/3/06 Wilson, russ REQUEST 1/17/06 Per deim training conf 010-3100-431.31-20 380.07 380.07 74212 2/3/06 Woods, david REQUEST 12/20/5 Reim water dep # 00001317 050-0000-229.08-70 128.21 128.21 74213 2/3/06 Wortman, randell REQUEST 1/17/06 Per deim training conf 010-3100-431.31-20 160.00 160.00 74214 2/3/06 Wren, jean REQUEST 1/06/06 Reim water dep # 10025021 050-0000-229.08-70 22.89 22.89 Pay_ '8 City of San Jacinto Warrant Register Date: 02/16/2006 Check Number Check Date VendorName Invoice Number Description Account Number Transaction Amount Check Total 74215 2/3/06 Yerger, lisa REQUEST 1/24/06 Reim water dep # 00001910 050-0000-229.08-70 109.39 109.39 74216 2/3/06 Z-best pizza REQUEST 1/20/06 09/01/05-01/31/06 cc meet 010-1100-411.31-20 288.20 288.20 74217 2/3/06 Zeppenfeldt, edward REQUEST 1/06/06 REQUEST 1/06/06 Reim water dep # 30017019 Reim credit acct#30017019 050-0000-229.08-70 050-0000-308.09-10 50.00 36.96 86.96 74218 2/3/06 Zowarka, sue REQUEST 1/06/06 Reim water dep # 10026067 050-0000-229.08-70 11.99 11.99 Total Checks 1,152,764.00 Page 19 AGENDA ITEM 3- February 16, 2006 TO: The HonorableMayorand Members of the City Council FROM: Habib Motlagh, City Engineer SUBJECT: Idyllwild Drive Sidewalks - Project No. 04-076 RECOMMENDATION: Staff recommends that the City Council, by motion, adopt the plans and specifications and authorize the City Clerk to proceed with bid advertisement for construction of Idyllwild Drive Sidewalks, subject to County EDA approval. BACKGROUND: This project will construct infill sidewalk on both sides of Idyllwild Drive from San Jacinto Avenue to Tiger Lane. The currently approved budget is $375,000 ($255,000 pending Council approval of CDBG reprogramming). The project also includes miscellaneous sidewalk repair and replacement throughout the City. The elimination of sidewalk gaps in this residential district bounded by school and other public facilities will enhance the City's recently completed Wateka, Tahquitz, and First Street sidewalk project, thus, providing better access to Sallee Park and San Jacinto High School. The following is the proposed timeline for the construction of this project: • Bid advertisement • Bid opening • Bid award • Start of construction • Project completion March 2006 April 2006 April 2006 May 2006 July 2006 Page 1 of 2 Thisschedule is tentative, and is subject to County EDA approval of the plans and specifications. The project advertisement cannot proceed until this approval is secured. The specifications were submitted to County EDA on February 2, 2006. FISCAL IMPACT: The project is included in fiscal year 2005-06 and is identified as project No. 04- 076, which includes $80,000 in SB 821 grant funding and $255,000 in CDBGG funds (subject to Council approval of CDBG reprogramming). ATTACHMENTS: ■ Project Map Page 2 of 2 �lLalt7������ AGENDA ITEM 5 February 16, 2006 TO: Mayor and City Council FROM: Tim Hults, Community Development Director SUBJECT: Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area RECOMMENDATION: Staff recommends that the City Council: a. Receive and file the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area; and b. Direct staff to move forward on soliciting proposals for the preparation of a specific plan to identify the land uses, infrastructure, design, and financing for the Ramona Expressway/Sanderson Corridor Gateway Area; and c. Utilize the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area, as a guide for the development of a specific plan for the area; and d. Direct staff to identify a funding mechanism to finance the preparation of the specific plan; and e. Include the Stakeholders during the process of preparing the specific plan. BACKGROUND: The Ramona Expressway/Sanderson Avenue Corridor, also known as the Gateway Area encompasses approximately 1,700 acres along both sides of the Ramona Expressway, from east of Sanderson to the City boundaries. This Gateway Area provides unique opportunities for current and future development, In March 2005, to facilitate development in this area, staff recommended the solicitation of proposals for a specific plan and economic study. The Council directed staff to move forward only on the economic study. Economics Research Associates (ERA) was selected to prepare a Market Assessment and Economic Development Strategy for the Ramona Expressway/Sanderson Avenue. Economics Research Associates prepared the Market Assessment and Economic Development Strategy ("Assessment"). During the preparation process, Stakeholder meetings were conducted to solicit input and provide comments on the Assessment. The. Assessment was also presented to the Stakeholders, during a meeting on November 16, 2005 and again on January 5, 2006. A presentation of the Assessment was made to the City Council and the Redevelopment Agency,during the January 6, 2005 Meeting. DISCUSSION Corridor Information The Gateway Area consists of approximately 1,700 acres, along two of San Jacinto's major streets. The area is primarily dairy farms, agricultural uses, with some vacant land. Several projects have been approved, including commercial and light industrial uses. Several other development proposals are in the Planning review process. Both the Ramona Expressway and Sanderson Avenue are major corridors through the City, both east/west and north/south, respectively. As such, they provide a unique opportunity for commercial, business park, civic, and residential uses. Freeway options are being considered for the area, including the realignment of Highway 79 to freeway operation, which will greatly improve accessibility to the corridor from both the north and south. A preferred alternative for this alignment has been selected. Also, the Mid -County Parkway is a proposed 32-mile limited access freeway corridor that will connect San Jacinto to the 215 Freeway in Perris and 115 in Corona. As a freeway corridor, Mid -County Parkway will provide opportunities for commercial development. The alignment has not been decided and the City has not yet made a recommendation. A major hurdle for the area is the San Jacinto River Levee Project, which involves the extension of the existing levee on the south side of the river, from east of State Street, westerly to almost. Warren Road. This project, once completed will protect downstream properties from flooding and remove about 3,140 acres of land form the floodplain, creating new economic development opportunities. The City is working with the Riverside County Flood Control and Water Conservation District on the levee project. 2 Proposed General Plan The City of San Jacinto is currently updating its General Plan to provide direction for the City's future development. The General Plan includes elements that identifies and discusses land uses, circulation, community services and facilities, resource management, public safety, noise, and housing. The proposed Plan also specifically identifies the Ramona Expressway/Sanderson corridor for a planned development called the Gateway Area Specific Plan. No specific land uses on a parcel basis are included within the Gateway Area Specific Plan. While the proposed General Plan provides the overall planned uses, goals, and objectives, it is anticipated that a Specific Plan would include details for development, including specific land uses, circulation, zoning standards, design elements, and project processing. The proposed General Plan includes the following percentages for development: • 15% Regional Commercial • 30% Office Park • 35% Business Park • 20% Estate Residential To facilitate development in the Ramona/Sanderson area, once the General Plan is adopted, will require the preparation of a specific plan or a General Plan amendment to identify property specific land uses. The draft General Plan has been circulated and is scheduled for the February 23, 2006 Planning Commission Meeting. At this time, considering the near completion of the General Plan, significant modifications, including re-evaluating the Ramona/Sanderson/Gateway area would delay completion of the Plan. The General Plan, once adopted can be amended up to four times per year. Another option could be amending the General Plan to accommodate land uses for the area. A consultant would need to be hired to evaluate the desired land uses. The Assessment could be used as a guide for an amendment. Market Assessment and Economic Development Strategies To prepare the Assessment and Strategies, ERA compiled demographic statistics, market trends, and other data to provide a foundation for the Assessment. In addition, ERA met with property owners and stakeholders, in order to have a better understanding of their interests and concerns surrounding the potential development of the area, as well as, to provide an opportunity to participate in the process. 3 ERA's role in preparing the Market Assessment and Economic Development Strategy is to recommend realistic and market based strategies that will accomplish the following five economic development objectives for the City: ■ Ensure that the Corridor will be able to provide the retail goods and services needed by the San Jacinto Valley residents for at lease the next 20 years. • Provide one or more areas within the Corridor that will serve to accommodate high quality jobs in the future. ■ Ensure that the development in the Corridor will generate tax revenues to fund municipal services like fire suppression, police protection, road maintenance, and park upkeep. • Taking advantage of the Corridor's history and geography, create a community core that citizens of San Jacinto can take pride in. • Enhance long-term value appreciation for San Jacinto land, homes, and businesses. Elements included in the Assessment are: ■ Corridor Opportunities and Constraints ■ Forecast San Jacinto's Economic Outlook ■ Examination of the Market for Residential Products • Commercial/Office/Business Park Development Opportunities ■ Project Retail Needs of Residents and Employees ERA's Recommendations Reserving Land for Commercial Development — The central issue in the Ramona/Sanderson Corridor is the risk of strong, single-family housing demand pre-empting other land uses important to the community's future, in terms of jobs, taxes, and a unique sense of place. ERA considered demand growth related to population, income, and employment increases and noted an approximate build - out period by 2025, with additional growth expected after. The following acreage is recommended to be reserved for commercial development/civic use. Mid -point 2025 Demand Forecast Recommended Planning Acreage Retail Commercial 298 375 Office Business Park 175 225 Medical Campus NA 50 Hotel & Motel 10 20 Town Center - Civic Center NA 50 Community Center and Ball Fields NA 50 Total Commercial and CIVIC Uses (Acres) 770 Page 4 of 9 Of the estimated 1,700 acres within the Corridor, ERA recommends 770 acres or around 45 percent be planned for future commercial, business park, civic, or community uses. Assuming that 500 additional acres will be required for transportation or other infrastructure and open space systems, approximately 430 acres remain available for the development of high quality residential neighborhoods. The percentage breakdowns, based upon the estimated 1,700 acres would be as follows: ■ Retail Commercial (includes hotel and motels) 23% • Office Business Park (includes medical campus) 16% • Town Center/Community Center/Ball Fields 6% • Residential 25% • Infrastructure 30% When compared to the proposed General Plan designations and percentages, residential acreage is increased from 20% to 36% and would provide a greater range of residential uses. Retail commercial would increase from 15% to 33% and office/business park would be reduced from 65% to 23%. Excluding the infrastructure, the percentages are: • Retail Commercial (includes hotel and motels) 33% • Office Business Park (includes medical campus) 23% ■ Town Center/Community Center/Ball Fields 8% • Residential 36% Mr. Lee indicated that in meeting with the property owners, his recommendations on land uses were in line with what many were considering. Create a New Town Center — ERA recommends incorporating a Town Center within the Corridor. Several locations were identified, as options. The City has not discussed development of a Town Center for a number of years. This recommendation opens the door for discussion to take place. Staff recommends that a separate report be prepared to discuss the Town Center options and information included in ERA's report be considered. Transportation and Flood Control — There are three major infrastructure improvements planned for the Corridor, including Realignment of Highway 79, the Mid County Parkway, and the San Jacinto River Levee. Each of these has an effect on the development of the Corridor. ERA included discussion on these items in their Report. The alignment for the Mid County Parkway has not been determined. ERA recommends the southern alignment, along the aqueduct. The City has not determined a preferred alignment, therefore this recommendation, by ERA should be considered in future discussion and is not part of this staff report. Page 5 of 9 Create a New Community and Ball Field Complex — ERA recommends moving forward with development of a complex, which would enhance the desirability of San Jacinto as a residential community, and the tournaments would bring income to local hotels and restaurants. This is consistent with the recently developed Park Master Plan. Negotiation with Motor Land Owners - ERA's analysis indicates that the City of San Jacinto should reserve much of this Corridor for future commercial and civic development and additional lands will be needed to accommodate the regional circulation system. While more detailed land planning analysis is needed to determine the exact acreages, ERA's evaluation suggest that there may be sufficient land in the Corridor to accommodate possibly 400 to 450 acres of residential development. The area within the Corridor but south of ERA's recommended alignment for the Mid County Parkway and the Colorado River Aqueduct appears to be well suited for residential development in accordance to the desires of the property owners. The residential character of properties to the south of this area has been established. The parcels fronting on Ramona Expressway on both the north and south sides should be reserved for future commercial or civic uses. The large parcels on the north side of Ramona Expressway should be planned to accommodate much of the future commercial and civic needs of the city; however, they are sufficient large to accommodate some residential neighborhood development as well. The Assessment provides more detail on ERA's recommendations for a Town Center. Need for a Specific Plan — Implementation of the concepts that ERA has advanced above will require the preparation of a Specific Plan and an associated Environmental Impact Study (EIR). Ideally, the City will have officially endorsed a preferred alignment for the Mid County Parkway and have negotiated some deals with the property owners to know on whose property the Town Center and community center/ball fields will be located. Rather than carrying innumerable alternatives, which would be costly, the Specific Plan then can focus on the location and design character of a Town Center, the local circulation system and the location and allocation of the different land uses. The Plan should include design guidelines for a Town Center. Stakeholder Meetings and Comments Several meetings were conducted throughout the process, to provide property owners an opportunity to comment. Mr. Lee met with most of the property owners, early in the process to review their development plans and desires for their properties. 6 Staff conducted several Stakeholder meetings to receive input on the Assessment. Notes from the November and January meetings area included as Attachments B and C. Additional comments are included as Attachment D. Mr. Robert Reicher with Market Profiles, who prepared a Market Study for one of the Stakeholder's provided comments, included as Attachment E. Specific Plan The preparation of a specific plan for the area would identify land uses, on a parcel specific basis. This was a key issue for the Stakeholders. Without land use designations, it is difficult to provide specific comments, because the actual effect on a parcel by parcel basis cannot be determined based upon the Assessment. The specific plan would include the completion of an environmental impact report to address all of the environmental issues facing the plan. In addition circulation, design, and development processing would also be addressed. In addition, a specific plan will facilitate and potentially expedite development in the area. Streamlined development application processing could be included in a specific plan. Preparation of a specific plan would provide the most cohesive and comprehensive plan for future development and would serve the best interests of the City in the long term. The Ramona Expressway/Sanderson Avenue corridors are San Jacinto's major thoroughfares and with the proposed Highway 79 realignment and Mid -County Parkway, a specific plan can explore the opportunities, using the Assessment, as a guide for future development. In addition, the General Plan recommends the preparation of a specific plan for the area. JUSTIFICATION: The Market Assessment and Economic Development Strategy has been completed by Economics Research Associates. This Assessment can be used as a guide for preparation of a specific plan and/or identifying land -uses for the area. The Assessment was not developed as a governing document, but a study of a specific area. Therefore, a recommendation to receive and file the Assessment is proposed. The Ramona Expressway/Sanderson Avenue/Gateway Corridor is the City's premier entry and provides significant current and future commercial development opportunities. As a growing city, San Jacinto has a unique opportunity to plan this corridor to accommodate not only current growth, but also for the future. As single-family developments are constructed and occupied, the 7 demand for commercial and job creating developments will increase. Land must be designated to accommodate these uses to support the City. Should the Corridor be developed with single-family uses, it will limit future commercial and job creation opportunities. Potential commercial/business developments that would locate in a major transportation corridor, would have limited other locations to consider city-wide. Preparation of a specific plan will further evaluate this corridor, utilizing the Assessment as a guide. In addition, the environmental constraints and the transportation alignments can be further analyzed for compatible land uses. This will provide San Jacinto a unique opportunity that many cities do not have and that is to master plan an area in a comprehensive and cohesive manner. In addition, design standards for development can be incorporated in the specific plan and can include architectural guidelines, landscaping requirements, signage, site improvements, as well as, expedited processing. BUDGETARY IMPACT: Funding was allocated for the Assessment preparation. Funding for the Specific Plan was included in last year's budget from Redevelopment Agency and General funds, with project costs proposed to be divided evenly. These funds were not carried forward to this Fiscal Year. The staff recommendation, should the Council wish to move forward is to develop a financing/funding plan for the proposed specific plan. ALTERNATIVES: Alternative No. 1 a. Receive and file the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area; and b. Direct staff to move forward on soliciting proposals for the preparation of a specific plan to identify the land uses, infrastructure, design, and financing for the Ramona Expressway/Sanderson Corridor Gateway Area; and c. Utilize the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area, as a guide for the development of a specific plan for the area; and d. Direct staff to identify a funding mechanism to finance the preparation of the specific plan; and e. Include the Stakeholders during the process of preparing the specific plan. 8 Staff recommends approval of this alternative, because the preparation of a specific plan provides the most comprehensive and cohesive option for planning development along the Ramona Expressway/Sanderson Corridor. The use of the Assessment will provide a guide for the highest and best uses for the San Jacinto's future. Alternative No. 2 Receive and file the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area and delay the current General Plan process to incorporate land uses for the Ramona Expressway/Sanderson Avenue Corridor in the General Plan, as opposed to the Specific Plan designation. Staff does not recommend approval of this alternative, because it will delay adoption of the General Plan and not provide for a comprehensive plan for the area. The General Plan process has been underway for a number of years and is close to completion. It is in the City's best interest to adopt the General Plan in accordance with the current schedule. Alternative No. 3 Receive and file the Market Assessment and Economic Development Strategies for the Ramona Expressway/Sanderson Corridor Gateway Area and process a General Plan Amendment, once the General Plan is adopted to identify land uses for Ramona Expressway/Sanderson Avenue Corridor and remove the Specific Plan designation. Staff does not recommend approval of this alternative, because it only addresses land use on the surface and does not provide for a comprehensive and cohesive plan for the area. Should Council consider this option, a consultant would need to be hired to process the amendment and develop a land use plan to be included in the General Plan. ATTACHMENTS: ATTACHMENT A Market Assessment and Economic Development Strategy for the Ramona Expressway/Sanderson Avenue Gateway Corridor ATTACHMENT B January 5, 2006 Stakeholder Meeting Notes ATTACHMENT C November 16, 2005 Stakeholder Meeting Notes ATTACHMENT D Other General Comments ATTACHMENT E Letter from Mr. Robert Reicher, Market Profiles ATTACHMENT F Meeting Notification Letter 9 ATTACHMENT A Economics Research Associates MARKET ASSESSMENT AND ECONOMIC DEVELOPMENT STRATEGIES FOR THE RAMONA-SANDERSON CORR9lrOR Prepared for CITY OF SAN ,DACINTO Submitted by Economics Research Associates December 13, 2005 ERA Project No. 16070 388 Market Street, Suite 1580 San Francisco, CA 94111 (415) 956-8152 FAX (415) 956-5274 www.econres.com Los Angeles San Francisco San Diego Chicago Washington DC New York London TABLE OF CONTENTS Section Page I INTRODUCTION I- I II EXECUTIVE SUMMARY AND RECOMMENDATIONS II- 1 Reserving Land for Commercial Development II- 1 Create a New Town Center II- 2 Transportation and Flood Control II- 3 Create New Community and Ball Field Complex II- 5 Negotiation with Major Land Owners 11- 6 Need for a Specific Plan li- 7 Images of a Future San Jacinto Town Center 11- 7 III ECONOMIC OUTLOOK AND DEMOGRAPHIC TRENDS III- 1 Regional Economic Overview III- 1 Employment Projections II1- 3 Population and Household Trends III- 4 IV CORRIDOR LOCATION AND RESIDENTIAL MARKET OVERVIEW IV- 1 Regional Context IV- 1 Gateway Area IV- 1 Regional Housing Market IV- 2 Local Housing Market IV- 2 Demand Analysis IV- 5 V OFFICE AND BUSINESS PARK DEVELOPMENT POTENTIAL V- 1 Regional Office Market V- I Industrial/Flex Market .... V- 2 Selected Business Parks in Region V- 6 Demand Analysis V- 8 VI RETAIL DEVELOPMENT POTENTIAL VI- 1 Taxable Retail Sales VI- 1 Retail Market Trends VI- 5 Planned Development in San Jacinto Valley VI- 9 Demand Analysis VI- 9 TABLE OF CONTENTS (Continued) Section Pa VII HOTEL DEVELOPMENT POTENTIAL VII- 1 Air Passenger Volume VII- 1 Room Revenue VII- I Regional Hotel Trends VII- 2 Hotel Inventory VII- 4 Hotels in Planning and Construction VII- 8 Demand Analysis VII- 14 11 SECTI N I, INTRODUCTN The City of San Jacinto retained Economics Research Associates (ERA) to provide a market based assessment of the future of the 1,700-acre Ramona -Sanderson Corridor located in the northern portion of the city. With the planned upgrading of Highway 79 to freeway status and the construction of the new Mid County Parkway, this corridor has exceptional strategic value in shaping the future of San Jacinto. Because of its strategic Location, this area is also known as the Gateway Area. ERA's role is to recommend realistic and market based strategies that will accomplish the following five economic development objectives for the City: • Ensure that the Corridor will be able to provide the retail goods and services needed by San Jacinto Valley residents for at least the next 20 years. • Provide one or more areas within the Corridor that will serve to accommodate high quality jobs in the future. • Ensure that development in the Corridor will generate tax revenues to fund municipal services like fire suppression, police protection, road maintenance and park upkeep. • Taking advantage of the Corridor's history and geography, create a community core that citizens of San Jacinto can take pride in. • Enhance long-term value appreciation for San Jacinto land, homes and businesses. This assignment was conducted by the San Francisco office of ERA. William "Bill" Lee, Executive Vice President, served as project manager and chief consultant. Sujata Srivastava, Senior Associate, assisted with research, analysis and report preparation. Economics Research Associates - Project No. 16070 I-1 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor ERA The Ramona -Sanderson Corridor or Gateway Area Economics Research Associates - Project No. 16070 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor 1-2 SECTION IL EXECTUVW, SUMMARY Y COMA ENDATIONS RESERVING LAND FOR COMMERCIAL DEVELOPMENT The central issue in the Ramona -Sanderson Corridor is the risk of strong single-family housing demand pre-empting other land uses important to the community's future in terms of jobs, taxes and a unique sense of place. ERA's market analysis focused successively from the Inland Empire to Riverside County and then to the San. Jacinto Valley, the city of San Jacinto and finally to the Ramona -Sanderson Corridor. It considered 'demand growth related to population, income and employment increases. ERA projects that the city of San Jacinto will have a population of nearly 90,000 by 2025. This level of population growth, plus the economic growth and maturation of Western Riverside County, will generate demand for commercial and civic land and facilities. The mid -point demand forecasts forte 2025 planning horizon for the different commercial uses within the Ramona -Sanderson Corridor are shown below. However, San Jacinto will not be built -out by 2025, and additional growth is expected after 2025. ERA, therefore, recommends that the City reserve the following acreage for commercial development or future civic use. Table 11-1. Recommended Commercial Planning Acreage in Corridor Mid -point 2025 Demand Forecast Recommended Planning Acreage Retail Commercial 298 375 Office Business Park 175 225 Medical Campus NA 50 Hotel & Motel 10 20 Town Center - Civic Center NA 50 Community Center and Ball Fields NA 50 Total Commercial and Civic Uses {Acres) 770 Economics Research Associates Project No. 16070 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Of the estimated 1,700 acres within this Corridor, ERA recommends that 770 acres or around 45 percent be planned for future commercial, business park, civic or community uses. Assuming that 500 additional acres will be required for transportation or other infrastructure and open space systems, approximately 430 acres remain available for the development of high quality residential neighborhoods. CREATE A NEW TOWN CENTER Since the city is headed for a total population of over 100,000, the current downtown area will not be able to function effectively as the commercial hub and administrative center of a community ofthis size. ERA recommends that San Jacinto plan for the creation of a new 50- acre Town Center —Civic Center complex. Rather than having this complex be at the center of a commercial shopping mall, we recommend that the City acquire this 50-acre parcel and manage its development over time for civic and vibrant town center types of uses. A well - planned and well -designed Town Center, which could include higher density housing and mixed -use development, will enhance the value of surrounding properties for commercial or residentia! development. It will also be a source of community pride and contribute to the long-ternu appreciation of local horse values. Table 111-2. Recommended Planning Program for Town Center — Civic Center Recommended Planning Acreage City Hall — 60,000 to 100,000 SF 10 Town Square and Public Plazas 2 Future Performing Arts Facility 3 Public Parking in Support of Restaurant and Shop Development 6 Commercial Parcels for Disposition to Developers 10 Mixed Use/Residential Parcels for Disposition to Developers 10 Circulation 9 Total Town Center (Acres) 50 Economics Research Associates Project No. 16070 1I-2 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor This Town Center would work well, if developed in tandem with a life-style retail center, which would be a private development. If planned with the life-style retail component, the total land area should be around &0 acres. The existing downtown could become "Old Town" with its historic and Hispanic flavor reinforced. Some images that suggest key elements of the Town Center are included at the back end of this section. TRANSPORTATION AND FLOOD CONTROL The commercial and civic developments recommended above are premised on some major infrastructure improvements. These include the following: 1) the realignment and upgrading of Highway 79, 2) the construction of the Mid County Parkway, 3) extension of the Ramona Expressway commercial corridor to the west, and 3) the construction of San Jacinto River Levee Project. eaignnient of Highway 79 The realignment and upgrading of Highway 79 to full freeway operation will make this Gateway Area much more accessible from the southern part of the San Jacinto Valley, enhancing the area's commercial market reach. The alignment through this Ramona - Sanderson Corridor has been largely set, and construction is expected to begin in 2010. ERA has no issue with this project. Mid County Parkway The Mid County Parkway is a proposed 32-mile limited access freeway corridor that will ease congestion along the east -west roads between the San Jacinto and Corona in Western Riverside County. The project is expected to reduce congestion and reduce travel times in the overburdened existing corridors, including SR 91, SR 74 and SR 60. Travel time between SR-79 and I-15 will be reduced from 45 minutes to 30 minutes, according to official estimates. The exact alignment of the Mid County Parkway is not yet decided, with various alternatives still being considered. According to Riverside County Transportation Commission, construction is also expected to begin in 2010. ERA has reviewed two or three alignment alternatives for this project and would like to recommend the southern alignment as the one that best facilitates commercial and Town Center development in this corridor. Our reasons are as follows: a It facilitates the transition of Ramona Expressway to a strong commercial boulevard with good commercial frontage on both sides. Shopping centers or Town Center requiring considerable parcel depth can locate on the north side of this new boulevard. Economics Research Associates Project No. 16070 II-3 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Big and medium box retailers and automobile dealerships are able to locate on the south side in accordance to the required parcel depths. Automobile dealerships favor a long frontage and do not require much parcel depth. • It consolidates the twc community dividers, the new Mid County Parkway and the existing aqueduct, into a single corridor thereby minimizing the number of barriers to community cohesion. • It uses the aqueduct to buffer the negative influences of the freeway on the south side and creates a good separator between the commercial uses on the north side of the Mid County Parkway and the predominately residential uses on the south side of the freeway and aqueduct. • It places the new I_ghway 79 and Mid County Parkway interchange, and the commercial properties around this interchange, farther south in the San Jacinto Valley and closer to more of the valley population. ® The eastern terminus of this Mid County Parkway leads to a strong potential location for the Town Center —Civic Center complex. The parkway alignment and the location of the Town Center could be designed so that as a driver approaches from the west, he or she can see the Town Center at the end of the parkway with the San Jacinto Mountains serving as a memorable backdrop. It would allow San Jacinto to convey a sense of place that few newer communities in Riverside County have been able to achieve. While not in the geographic center of the city, this location for a Town Center would be easily accessible to San Jacinto residents from the west, south and southeast. Figure 11-1. Possible Town Center Locations Economics Research Associates Project No. 16070 II-4 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Ramona Expressway CoCorantortereial Corridor The Ramona Expressway commercial corridor, as currently contemplated, does not extend beyond Warren Road to the west once the new Mid County Parkway is completed. San Jacinto's commercial development interests would be better served if this corridor extended further west, ideally to Perris but perhaps more realistically by one interchange to the west of Warren Road. Levee System The San Jacinto River Levee Project involves the extension of the existing levee on the south side of the river from east of State Street westerly to almost Warren Road. As one of the City's top priorities, the project will protect downstream communities from water contamination and remove about 3,140 acres of land from the floodplain, creating new economic development opportunities for the city with much of that opportunity lying in the Gateway Area. Since 2002, the City has been working with the Riverside County Flood Control and Water Conservation District for Stage 4 of the levee project. According to the agreement between the two parties, the District will fund half of the project's planning, approval, design, financing and construction, up to a maximum of $7 million. The total project cost is estimated at $25 million, and all costs above those covered by the District will be the City's responsibility. The City is pursuing additional grant monies and is considering the formation of a Community Facilities District (CFD) as a potential financing mechanism for the levee project. Based on the initial analysis conducted by Webb Associates, the annual assessment will range from $170 to $340 per dwelling unit per year. Considering assessment burden rates in this range, the financial benefits to the property owners of removing their properties from the flood plain well exceed the cost burden. ERA's recommendation is that the City move expediently to implement the CFD so the levee project can be completed in a timely manner. CREATE NEW COMMUNITY AND BALL FIELD COMPLEX Since land in San Jacinto is still fairly abundant and inexpensive, ERA recommends that the City move to reserve an approximately 50-acre parcel for the future development of a community center and ball field complex. The community center could include a gymnasium, Economics Research Associates Project No. 16070 11-5 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor aerobics and workout rooms, class or small conference rooms and possibly a swimming pool. The ball fields would likely include soccer fields, softball fields and baseball diamonds. The complex would be designed for local play and to host regional tournaments. The complex would enhance the desirability of San Jacinto as a residential community, and the tournaments would bring income to local hotels and restaurants. NEGOTIATION WITH MAJOR LAND OWNERS ERA's analysis indicates that the City of San Jacinto should reserve much of this Corridor for future commercial and civic development and additional lands will be needed to accommodate the regional circulation system. While more detailed land planning analysis is needed to determine the exact acreages, our evaluation suggest that there may be sufficient land in the Corridor to accommodate possibly 400 to 450 acres of residential development. The area within the Corridor but south of ERA's recommended alignment for the Mid County Parkway and the Colorado River Aqueduct appears to be well suited for residential development in accordance to the desires of the property owners. The residential_ character o_' properties to the south of this area has been established. The parcels fronting on Ramona Expressway on both the north and south sides should be reserved for future commercial or civic uses. The large parcels on the north side of Ramona Expressway should be planned to accommodate much of the future commercial and civic reeds of the city; however, they are sufficient large to accommodate some residential neighborhood development as well. For these parcels, ERA recommends that the City negotiate an exchange of residential entitlement for land acreage. If the landowner would dedicate 50 acres for a future Town Center, he or she would be entitled to construct 500 housing units. Since the landowner would be able to construct housing in the reasonably near term future and the Town Center location would enhance the long-term value of the surrounding property, we believe the property owners would have strong incentive to participate in such a deal. The City would then be in position to create the Town Center which best reflects the vision of the community, and remnant parcels not needed for civic or community uses could later be sold to developers at a substantial gain. We would recommend a similar deal for the 50 acres required for the community center and ball field complex. Economics Research Associates Project No. 16070 II-6 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor ERA NEED FOR A SPECIFIC PLAN Implementation of the concepts that ERA has advanced above will require the preparation of a Specific Plan and an associated Environmental Impact Study (EIR). Ideally, the City will have officially endorsed a preferred alignment for the Mid County Parkway and have negotiated some deals with the property owners to know on whose property the Town Center and community center/ball fields will be located. Rather than carrying innumerable alternatives, which would be costly', the Specific Plan then can focus on the location and design character of the Town Center, the local circulation system and the location and allocation of the different land uses. The Plan should include design guidelines for the Town Center. Not all of the properties in this 1,700-acre Corridor need to be included in the Specific Plan, but it should certainly include the major properties around the Highway 79 and Mid County Parkway interchange. The cost of a high quality Specific Plan and EIR is expected to be in excess of $500,000, and it is fairly common for municipalities to recover that cost from the property owners or develops as the properties develop. As an alternative, the cost of the Specific Plan can be part of the residential entitlement for land negotiation. IMAGES OF A FUTURE SAN JACINTO TOWN CENTER Economics Research Associates Project No. 16070 II-7 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor ERA Economics Research Associates Project No. 16070 I1-8 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor ERA Economics Research Associates Project No. 16070 II-9 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor SECTION III. ECONOMIC OUTLOOK AND DEM•GRAPHIC TREN In this section, ERA analyzes the regional economic context for future development potential in San Jacinto, including employment trends, key industries, and employment forecasts. In addition, ERA presents an overview of construction trends and demographics in San Jacinto and Riverside County, including historical population, race, educational attainment, income, and population projections. REGIONAL ECONOMIC O TER"r E l Riverside County is part of the greater Inland Empire economy, which aiso includes San Bernardino County. The inland Empire currently employs approximately 1.15 million (non- agricultural employment), a significant increase from 938,000 in 2000. Riverside County's unemployment rate dropped from a high. of 12 percent in 1993 to below six percent in 2004. As shown in the chart below, Riverside County's unemployment rate was consistently above the state level until 2002 and has been below the State average since. Figure ➢Il-➢. Unemployment Trends in Riverside County. 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Unemployment Rates in Riverside County and California, 1990-2004 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Riverside County ❑ California Source: California Erployrnent Development Department; Economics Research Associates, 2005. Economics Research Associates Project No. 16070 III-1 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor The economy of the inland Empire is diverse, with employment distributed among many industry sectors. The chart below illustrates the current industry mix in the Inland Empire: Figure H1-2. Inland Empire Employment by Indenstry. Government 18% Other Services Wholesale Trade, Transportation and Utilities 9% Employment in Inland Empire, 2004 Natural Resources and Construction 10% Manufacturing 10% Advanced Services 32% Information and Rnancial Activities 5°/a retail Trade 13% Source: California Employment Development Department; Economcs Research Associates, 2005. As shown, the largest labor markets are in advanced services including professional and business services, educational and health services, and hospitality and leisure services (32 percent), government (18 percent), retail trade (13 percent), and manufacturing (10 percent). Inc. Magazine ranked the Riverside -San Bernardino metropolitan area as the 6th best place for doing business in the country in 2005. The ranking was based on personal income data and employment growth trends. According to the U.S. Bureau of Economic Analysis, personal income in the Inland Empire has grown at a rate of five percent annually, well above most metropolitan areas. Due to a combination of relatively lower land costs, availability of land, skilled workforce, and an extensive transportation network, the inland Empire has been able to attract many new companies and induce the expansion of local companies over the last 15 years. According to the California Employment Development Department, Riverside County has added more jobs in the last 15 years than any other Southern California county. The following table illustrates job gains in Riverside County compared to other counties in California from 1990 to 2004: Economics Research Associates Project No. 16070 III-2 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Table ][F➢-1. Employment Change in Selected Coup es, 1199C-20 14. Employment Employment Net Employment Location 1990 2004 Change % Change Riverside 498,300 763,800 265,500 53.3% San Bernardino 599,600 790,200 190,600 31.8% Orange County 1,306,200 1,518,900 212,700 163% San Diego 1,159,300 1,420,000 260,700 22.5% Los Angeles 4,259,700 4,494,000 234,300 5.5% Santa Clara 818.900 774,200 (44.700) -5.5% Source: California Employment Development Department; ERA. Riverside County's employment exploded during this period, growing by over 53 percent ansd adding 265,500 net jobs. San Bernardino also experienced significant growth, with the employment increase totaling 190,600 jobs or 32 percent. San Diego and Orange County economies also expanded, while the Los Angeles economy remained stable and Santa Clara County lost jobs during the period. Much of the growth can be attributed to the attractiveness cf the Inland Empire to new businesses and expansicns due to significantly lower land costs compared to coastal counties, as well as, competitive advantages including availability of land, skilled workforce, and greater housing affordability. In addition, the Inland Empire benefits from an extensive network of freeways and transportation infrastructure that provides access to the greater Southern California regional market. The region's economic growth has spurred job creation in Western Riverside County, as well. WRCOG estimates that the subregion (includes 14 communities and cities in the county west of the San Jacinto and Santa Rosa Mountains) gained 59,000 jobs from 2000 to 2005 and currently employs 447,000 people. EMPLOYMENT PROJECTIONS Official SCAG employment projections show continued growth in Riverside County, as shown in the table below: Table II11-2. Projected Employment in Riverside County Total Employment % Change 5-yr Average Annual Year Change period Increase 2000-05 76,566 14.9% 15,313 2005-10 123,249 20.8% 24,650 2010-15 115,216 16.1% 23,043 2015-20 113,435 13.7% 22,687 2020-25 114.862 12.2% 22,972 Source: Southern California Association of Governments Economics Research Associates Project No, 16070 III-3 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor According -to SCAG, employment is forecast to steadily increase from the current year to 2025. In the 2005 to 2010 period, SCAG projects employment gains of 123,250 jobs, a 21 percent increase. From 2010 to 2025, the average annual enployr_±ent increase in Riverside County is approximately 23,000. POPULATION AND HOUSEHOLD TRENDS Population Growth Riverside County, is currently the fastest growing county in California, and the second fastest growing county in the United States. The Western Riverside County sub -region has experienced tremendous growth in the last decade. Between 1990 and 2000, Western Riverside County's population grew by 30 percent to reach a total of 1,1.32,000. The table below summarizes historical population trends in key cities in Western Riverside County, compared to the overall county's patterns. Table 111-3. Historical 1'onnlation Growth in San Jacinto and Riverside County Riverside County Growth Rate 1990 1995 2900 2005 1995-2005 San Jacinto 16,210 19,633 23,779 28,028 3.62% Hemet 36,094 46,073 58,812 78,557 5.48% Perris 21,460 27,868 36,189 47,815 5.55% Moreno Valley 118,779 130,046 142,381 157,703 1.95% Rest of Riverside County 950,771 1,104,991 1,284,226 1,538,128 3.36% Total Riverside County 1,170,413 1,344,894 1,545,387 1,850,231 3.24% San Jacinto Share of County 1.38"/" 1.46% 1.54% 1.51% 0.37% Source: Census Bureau, California Dept. of Finance and ERA As shown, Riverside County's population has increased at an annual average rate of 3.2 percent annually from 1995 to 2005. The cities of San Jacinto, Hemet and Perris have grown at much higher rates during the last five years. In San Jacinto, the population increased at an average annual rate of 3.6 percent, while Hemet and Perris experienced growth at a rate of 5.5 percent and 5.6 percent, respectively. Currently, the population of San Jacinto is estimated at 28,028, while the entire county's population totals 1.85 million. San Jacinto, being largely undeveloped, accounts for only 1.5 percent of the total county population. Economics Research Associates Project No. 16070 III-4 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Construction Activity - As shown in Table 1111-4, residential construction has been extremely active in Riverside County for the last decade. From 1994 to 2004, over 181,000 permits were issued for residential construction in the county. The vast majority of these, or 88 percent, were single- family permits. In the ten-year period, an average of 16.500 permits were issued annually, of which 14,500 were permits for single-family homes. The average annual growth rate in construction permits during this period was 15 percent for Riverside County. San Jacinto has also experienced significant growth in housing construction in the last decade. A total of over 3,000 permits were issued from 1994 to 2004, for an annual average of 274 r year.Almostall of units built during this period were single-family units, units per the new anus �ui_t single-family composed 98 percent of permits issued in San Jacinto. The rate of residential construction has accelerated sharply during the past four years. It was 205 units in 2001 but increased to 345 units in 2002, 463 units in 2003 and 995 units in 2004. 1ernegraphic Charaederistics Racial and Ethnic Divers! The racial and ethnic composition of residents by jurisdiction in 2000 is shown in Figure 1111- 3. The communities vary significantly in the ethnic and racial mix, with nearly 80 percent of Hemet's residents identifying themselves as W'nite, compared to about 40 percent of Perris residents. San Jacinto has a diverse mix of races and ethnicities, with about 31 percent non- White residents. The Hispanic and Latino population in the key jurisdictions is presented in Figure III-4 below. As shown, 41 percent of San Jacinto's population is Hispanic/Latino, a representation much higher than in the county or state. Hernet has a much lower representation of Hispanics/Latinos at 23 percent, while Pen -is has a much higher percentage of 57 percent. Economics Research Associates Project No. 16070 III-5 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Table 1114. Residential Bilkling Permits, 1994 to 2004 Annual Average Increase Jtuisdiction 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 20114 Total 94-04 94-04 San Jacinto Sintie Family 61 101 54 77 184 376 153 205 343 463 943 2,960 269 31% Multi Family 0 0 0 0 0 0 0 0 0 52 52 5 Total 61 101 54 77 184 376 153 2.05 343 463 995 3,012 274 Ile met Single Family 116 113 141 91 200 299 565 451 338 798 804 3,916 356 21% Multi Family 0 0 0 114 0 0 71 8 44 4 6S 309 28 'rota! 116 113 141 205 200 299 636 459 382 802 872 4,225 384 Pettis Single Family 83 211 114 113 85 186 9 145 491 1,269 1,573 4,088 372 34% Multi Family 0 0 0 0 0 80 70 0 186 0 0 336 31 Tidal 83 20 114 113 85 266 79 145 677 1,269 1,573 4,424 402 Moreno Valley Single Family 291 202 158 234 245 259 323 602 1,152 2,011 2,109 7,586 690 22% Multi Family 0 24 0 108 0 0 0 0 70 448 1,505 2,155 196 Tulal 291 226 158 342 245 259 323 602 1,222 2,459 3,614 9,741 886 Riverside County Single Family 7,690 6,803 7,021 8,678 10,758 12,659 13,630 16,556 20,591 25,137 29,478 159,001 14,455 14% Multi Family 596 143 478 1,106 1,735 1,920 1,780 2,458 2,073 5,224 4,748 22,261 2,024 'Total 8,286 6,946 7,499 9,784 12,493 14,579 15,410 19,014 22,664 30,361 34,226 181,262 16,478 Source: Cbnsh action Industry Research Board Economics Research Associates Project No. 16070 Report. 11.2.2005 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor 111-6 Figure 111-3. Ethnic Composition for Key Cities and Riverside County 100% 90% 60% 70% 60%' 50% 40% 30% 20% 10% 0% San Jacinto Ethnic and Racial Composition of Key Cities Hemet Perris Moreno Valey Riverside County ❑'Wnite si African American ❑ Native Arrrrican ❑ Asian and Pacific Islander 0 Other Race Source: US Census 2000; Economics Research Associates, 2005. Figure IIH-4 Hispanic and Latino Population in Key Jurisdictions, 2500. 70.0% 60.0% 50.0% I 40.0% 30.0% 20.0% 1D.0% 0.0 % Hispanic/ Latino Population as Percent of Totalby Jurisdiction 57.3% 36.2% 38.4% 40.9% 32.4% Riverside Herret Moreno Valley Perris San Jacinto California County , Source: US Census 2000; Economics Research Associates, 2005. Economics Research Associates Project No. 16070 111-7 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Age The chart below (Figure illustrates the distribution of the population of each jurisdiction by age group. As shown, seniors are more generously represented in the San Jacinto Valley than in the county as a whole. This is largely due to the presence of many retirement communities in the valley. Nearly a third of the population in Hemet is made up of seniors in the 65 and over age groups. San Jacinto's share of seniors is at 17 percent, compared to 13 percent and 11 percent in the county and state.. respectively. By contrast, Moreno Valley and Perris have a greater, representation of children under 15 than the other jurisdictions. Children compose 31 and 34 percent of the population in Moreno Valley and Perris, respectively. Children under 15 make up 26 percent of the population of Riverside County and 23 percent of the statewide population. in San Jacinto, this group represented 27 percent of the population, about the same level as the county. Figure PF6-5 Distribution of Population by Age, 2000. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Distribution of Population by Age Group Riverside County Herrnt Moreno Valley Perris San Jacinto California p Under 15 ® 15-19 p 20-24 p 25-29 ■ 30-34 p 35-39 ® 40-44 ❑ 45-54 u 55-64 ® 65-74 p 75+ Source: US Census 2000; Econorrics Research Associates, 2005. Economics Research Associates Project No. 16070 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor 111-8 Educational Attainment In terms of educational attainment, the jurisdictions of Western Riverside County vary from one another. Countywide, about 50 percent of residents 25 or over had a high school diploma or equivalent, compared to 43 percent in the state. '_Nearly 27 percent of the state's adults had a bachelor's degree or advanced degree, compared to about 17 percent in Riverside County. The individual communities profiled below showed similar patterns to the county. The percentage of adult residents over 25 with a bachelor's degree or higher ranged from 7 percent in ?eras to 14 percent in Moreno Valley. In San Jacinto, about 9 percent of the population over 25 had a bachelor's degree or further education. Figure 111-6 Educational Attainment 5y Jurisdiction, 2000 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Educational Attainment by Jurisdiction Riverside County Hemet Mo eno Valley Perris San Jacinto California ❑ No schooling ® Less than 9th ❑ 9th to 12th 0 High school diploma ® Some college 0 AA ® BA 0 Prof/ masters Source: US Census 2000; Economics Research Associates, 2005. However, recent trends indicate that the educational level of residents in Western Riverside County is rising, as middle -income households from coastal counties (Orange County, San Diego County, and Los Angeles County) relocate into the Inland Empire, due to the lower cost of new housing and expanding employment opportunities in the region. Economics Research Associates Project No. 16070 III-9 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Income Distribution According to the 2000 Census, the various communities of Riverside County varied in household income distribution. As shown below, Hemet and San Jacinto had a higher percentage of low-income residents than the county of Riverside and the state of California. In 1999, approximately 36 percent of Hemet households and 33 percent of San Jacinto households had incomes under $20,000. By contrast, 21 percent of Riverside County and 20 percent of California households had incomes under $20,000. Similarly, Hemet and San Jacinto had a smaller percentage of wealthy households earning over $100,000, at three and four percent, respectively, compared to the county (12 percent). Figure 111-7. 1)istriburion of Household Income try Jurisdiction, 1999 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Riverside County Distribution of Household Income by Jurisdiction Hemet Moreno Valley Perris San Jacinto California ❑ Less than $10,00D ®$1D,0D0 - $19,999 0 $20,000 - $29,999 0 $30,000 - $39,999 ® $40,000 - $49,999 ❑ $50,000 - $59,999 o $60,0D0 - $74.999 ❑ $75,000 - $99,999 m $100,000 - $149,999 ® $150 000 + Source: US Census 2000; Econonics Research Associates, 2005. Median household income was significantly lower in Hemet and San Jacinto than in neighboring Moreno Valley and in the overall county. In 1999, median household income in Hemet was $26,800 and $30,600 in San Jacinto, compared to $42,900 in Riverside County. The median household income in Moreno Valley was higher than the county's at $47,400, and very close to the state median of $47,500. Economics Research Associates Project No. 16070 III-10 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Figure H -8. Median Household Qncome by Jurisdiction, 1999. $50.000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 S5,000 $- Medlars Household 9racome by Jurisdiction $42,900 -26-830-- 447,00C S35,50 $30,600 Riverside Hemet Mo eno Valley ?ems San Jacirlo California County Source: US Census 2000; E:onanscs Research Associates, 2005. However, with new homes selling in the 8300,000 to S400,000 range in the San Jacinto Valley, median household incomes have risen since 2000 and will continue to increase rapidly in the decade ahead. Population Growth Forecasts Forecasts by the Southern California Association of Governments (SCAG) show that the region's rapid growth is expected to continue well into the next 20 years. By 2030, SCAG estimates that Western Riverside County will add another million residents for a total population of 2.4 million, with 400,000 new hornes and 470,000 new jobs fueling this growth. The growth rate in Riverside County will outpace San Bernardino, San Diego, Orange County and Los Angeles County from 2000 to 2025. Most of the population increase is forecast to come from domestic migration and high birth rates. In 2003, WRCOG attributed 20 percent of the population growth in the county to natural increase, and 80 percent to net migration. All of the communities within Western Riverside County are expected to see significant growth, with the exception of Norco and Canyon Lake. Economics Research Associates Project No. 16070 I11-1I Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Considering the recent rapid acceleration in residential construction and the level of residential developer interest currently, ERA considers the official SCAG population forecasts for San Jacinto to be unrealistically low. Therefore, ERA forecast the population of San Jacinto for the next twenty years using the assumptions outlined below: ERA estimated that there would be approximately 1,700 units added per year from 2005 to 2010 for a total of 8,500 units. As land becomes more scarce and expensive, the rate of construction is expected to slow slightly from 2010 to 2015 to 1,300 units per year, and continue slowing to an annual average of 500 housing units per year in the 2020 to 2025 period. Overall, San Jacinto will add apl,roxir ately 22,250 units during the next 20 years. $ Assuming a stabilized vacancy rate of five percent, about 21,100 households will ^e added from 2005 to 2025. The average household size in San Jacinto is currently 2.84, and is projected to increase slightly over the next two decades, as young families buying new homes have more children. i These new households will add approximately 61,500 people over the next 20 years. Table 111-5. Population Projection Assumptions for San Jacinto 2005-10 2010-15 2015-20 2020-25 2005-25 Number housing units added annually 1,700 1,300 950 500 4,450 Total new housing units 8,500 6,500 4.750 2,500 22,250 Total new households' 8.075 6,175 4.513 2,375 21.138 Average household size 2.8 2.9 3.0 3.0 2.9 Population in new households 22.933 17,908 13,538 7,125 61.503 Assumes vacancy rate of 5 percent in market equilibrium, Source: ERA Based on the assumptions outlined above, ERA's forecast shows that San Jacinto's population will increase from 28,000 in 2005 to 68,900 in 2015 and nearly 90,000 in 2025. This represents a total population increase of 219 percent at an average rate of six percent annually. Economics Research Associates Project No. 16070 II1-12 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Table 111-6. Population Projection Assumptions fur San Jacinto Jurisdiction 2005 2010 2015 2020 2025 San Jacinto 28,028 50,961 68,869 82,406 89,531 Hemet 78,557 105,100 121,911 138,496 152,911 Perris 47,815 63,440 70,014 76,501 83,589 Moreno Valley 157,703 169,895 187,816 205,503 224,856 Rest of Riverside 1,538,128 1,696,036 1,921,917 2,141,372 2,393,147 Riverside County Total 1,850,231 2,085,432 2,370,526 2,644,278 2,949,643 San Jacinto share of County 1.5% 2.4% 2.9% 3.1% 3.0% San Jacinto Valley share of County 5.8% 7.5% 8.0% 8.4% 8.2% Source: US Census; SCAG; ERA. As shown in the projections in Table IIlll1-6, the population in Riverside County is projected to reach 2.4 million by 2015 and 2.9 million by 2025. San Jacinto's population of nearly 90,000 in 2025 will compose approximately three percent of the county's population, compared to 1.5 percent currently. The San Jacinto Valley, which includes the cities of Hemet and San Jacinto, will compose over eight percent of the county population in 2025. The San Jacinto Valley population will exceed 200,000 in about ten years, surpassing a market size threshold required by many national retailers. Economics Research Associates Project No. 16070 II1-13 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor SECT! N IV. CORRIDOR LOCATION AN RESIDENTIAL MARKET OVERVIEW REGIONAL CONTEXT San Jacinto is located in Western Riverside County, approximately 80 miles east of Los Angeles and 90 miles north of San Diego. The city is linked to the greater Southern California region by Ramona Expressway, providing east -west access to 1-215, and Highway 79, providing north -south access to I-10 and Highway 74. San Jacinto possesses both natural and cultural assets. Founded in 1870, San Jacinto is one of Riverside County's oldest cities. Although many structures are no longer standing due to past earthquakes, San Jacinto still possesses historic buildings, such as the Estudillo Mansion, which dates back to 1885. Listed in the National Register of Historic Places, the Estudillo Mansion is significant as the residence of Francisco Estudillo, the proprietor of the large land holdings known as the Estudillo Land Grant, which contained much of what is now known as San Jacinto. The City is now working on restoration of the Estudillo Mansion with the help of the National Park Service and the State Office of Historic Preservation. The San Jacinto Museum, operated by the City, is located on the Estudillo Mansion property. In addition to these historical and cultural assets, San Jacinto also has some natural assets, including Mount San Jacinto, one of the three tallest peaks in Southern California. GATEWAY AREA The Ramona -Sanderson Corridor or Gateway Area is located at the intersection of Highway 79 and the Ramona Expressway. As one approaches the city from the north on Highway 79, the San Jacinto Valley provides an expansive and scenic panorama. Approaches from the northwest on Gilman Springs Road and from the west on Ramona Expressway offer impressive views of the San Jacinto Mountains. The Gateway Area is both a scenic and strategic location for the city. The upgrading of Highway 79 to full freeway status, the construction of the Mid County Parkway and the planned San Jacinto River Levee project, which will free up previously floodplain land for development, greatly enhance the importance of this corridor for the future of San Jacinto. Economics Research Associates IV-1 Development Opportunities in Ramona -Sanderson Corridor REGIONAL H USING MARKET The Inland Empire is one of the nation's fastest growing regions, and as such, the housing market has been booming in recent years. As shown in Table IV-1, the region's median home prices have continually escalated since 2000, and are expected to keep rising as employment increases and land becomes more scarce. The median price for a single-family home in the Inland Empire has increased from $138,740 to $384,910 in the last five years, representing a price increase of 186 percent (in inflation -adjusted dollars). The increases in Riverside and San Bernardino Counties have been stronger than in other Southern California Counties. However, the median price of a single-family home continues to be significantly lower in the Inland Empire than in neighboring coastal counties. The median price in Orange County, was $716,300 in August 2005, more than $330,000 higher. In Los Angeles County, the median price of $564,340 was $180,000 higher than in Riverside and San Bernardino Counties. Given this differential in pricing, it is evident that the Inland Empire housing prices continue to be more affordable than in other coastal communities. However, the gap between the Inland Empire and the state seems to be closing. Whereas homes in the Inland Empire used to be at just over half of the state median, they are now 68 percent of the median in California. LOCAL HOUSING MARKET Trends in Median Home Price Table IV-2 describes the median housing prices for the month of August for all types of ownership product (including new single-family homes, new condominiums, and resales of both) in some of the key jurisdictions in Riverside County. As indicated, San Jacinto had a median home price of $323,000 in August 2005, compared to $390,000 in Riverside County. The communities of Western Riverside County had slightly lower median prices than other cities in other parts of the county such as Riverside, Temecula, Winchester, and Corona. The median in the city of Riverside was nearly the same as the county's, while the median in Corona was substantially higher at $528,000. The median price increases from August 2004 to August 2005 have been strong for all of Riverside County, and particularly for the communities in the San Jacinto Valley. San Jacinto and Hemet experienced median price increases of 29 percent and 23 percent, respectively, compared to 16 percent in the county. The median home price in San Jacinto is catching up to Economics Research Associates IV-2 Development Opportunities in Ramona -Sanderson Corridor Table IV -I. Median Sales Price Trends in Inland Empire, August 2000-August 2005 Jurisdiction August August August August August August % Change 2 2000 2001 2002 2003 2004 2005 00-05 Riverside and San Bernardino Counties $138,740 $157,700 $179,910 $228,560 $310,120 $384,910 186.3% Orange County $323,440 $373,780 $437,360 $523,600 $649,590 $716,300 128.5% Los Angeles County $229,200 $249,590 $300,980 $374,720 $455,590 $564,340 154.111/0 California $255,580 5276,590 $334,100 $404,870 $474,370 $568,890 129.7% Inland Empire as%orState 54.3% 57.0% 53.8% 56.5% 65.4% 67.7% Based on closed escrow sales of single-family, detached homes only (no condos). 2 Inflation -adjusted increase in median single-family home price. Source: California Association of Realtors. Table IV-2. Nome Sale Activity in Western Riverside County, Year End 2004 t Jurisdiction Units sold Median Price Median Price Price Change 2004 2004 2003 $ Western Riverside County San Jacinto 1lemet Perris Moreno Valley 997 $242,000 $175,000 $67,000 38.3% 2,740 $237,000 $178,182 $58,818 33.0% 1,717 $258,000 $185,000 $73,000 39.5% 4,876 $270,000 $106,500 $73,500 37.4% Other Cities Riverside 6,596 53(15,000 $238,000 $67,000 28.2% Corona 4,752 $435,000 $332,000 $103,000 31.0% Temecula 3,669 $407,000 $310,750 $87,25(I 27.3% Winchester 721 $393,500 $295,000 $98,500 33.4% Riverside County 53,854 $320,000 $250,000 $70,000 28.0% San Jacinto as % of County 1.9% 75.6% 70.0% 95.7% Reporting resale or single family residences and condos as well as new homes and condos, Source: Dataquiek information Systems, 2004. Economics Research Associates Report. 10.2.2005 Development Opportunities in Ramona -Sanderson Corridor 1V-3 the county. Whereas the median price in San Jacinto in 2004 was about 75 percent of the median in the county, it is now at 83 percent, reflecting the closing gap between San Jacinto's and the county's housing prices. Similar trends can be observed with annual sales price increases in 2003 and 2004, as seen in Table IV-3. In San Jacinto, nearly 1,000 housing units were sold in 2004, representing less than two percent of total sales in the county. .The median price for all home sales (including resales) in San Jacinto increased from $175,000 in 2003 to $242,000 one year later, representing a price difference of 38 percent, compared to 28 percent in the county. Similar increases in median prices occurred in other Western Riverside County communities. Table IV-3. Home Sale Activity in Western Riverside County, August 2005' Jurisdiction Units sold Median Price Median Price Price Change August 2005 August 2005 August 2004 $ Western Riverside County San Jacinto 180 $323,250 $250,000 $73,250 29.3% Hemet 293 $307,000 $249,000 $58,000 23.3% Perris 250 $340,000 $260,000 $80,000 30.8% Moreno Valley 509 $359,000 $237,000 $72,000 25.1% Other Cities Riverside 702 $390,000 $320,000 $70,000 21.9% Corona 543 $528,000 8450,000 $78,000 17.3% Temecula 319 $470,000 $410,000 $60,000 14.69%0 Winchester 74 $444,250 $415,250 $29,000 7.0% Riverside County 5,610 $389,500 $335,000 $54,500 16.3% San Jacinto as % of County 3.2% 83.0% 74.6% 134.4% Reporting resale of single family residences and condos as well as new homes and condos. Source: Dataquick Information Systems, 2004. Projects in Planning and Construction According to the City of San Jacinto, there are numerous housing development projects in planning and construction phases throughout the city. Table IV-4 outlines the number of housing units in the various stages of development in the Gateway Area and in the overall city. As shown, there are approximately 8,700 units in planning stages and 3,280 units in construction currently, for a total of almost 12,000 units citywide. ERA estimates that approximately 60 percent of the units planned will be completed between 2005 to 2010, Economics Research Associates Report. 10.2.2005 Development Opportunities in Ramona -Sanderson Corridor IV-4 representing over 5,200 units. When added to the units currently in construction, ERA estimates that San Jacinto will have 8,500 new homes by 2010. Table IV-4. Housing Units in Planning and Construction in San Jacinto, 2005. Units in Total Housing Planned Housing Unit Development I Planned Units Construction Units Gateway Area 525 0 525 Other Areas 8,170 3,280 11,450 Total San Jacinto 8,700 3,280 11,980 Percent to be completed 2005-10 (estimate) 60% 100% 71% Total units built 2005-10 (estimate) 5,220 3,280 8,500 'Units in planning and construction based on City of San Jacinto's tentative maps dated August 2005. Source: City of San Jacinto; Economics Research Associates. DEMAND ANALYSIS Housing demand is currently very strong in San Jacinto Valley, and the number of residential units permitted in San Jacinto has just this past year exceeded the number in Hemet for the first time since 1999. In the previous section ERA estimated that the city will have demand for 22,250 units over the next 20 years. During the next few years, demand will continue to be for single-family units. However, as land becomes scarcer and the San Jacinto achieves a higher degree of urbanization, town houses, condominiums and apartments will 'become more popular. ERA's estimated housing demand distribution by product type is presented in Table IV-5. The issue in the Ramona -Sanderson Corridor is the risk of strong. single-family housing demand pre-empting other land uses important to the community's future in terms of jobs, taxes and a unique sense of place. Table IV-5. Projected Distribution of Housing Demand by Product Type 2005-10 2010-15 2015-20 2020-25 2005-25 Number housing units added annually 1,700 1,300 950 500 4,450 Total new housing units 8,500 6,500 4,750 2,500 22.250 Single Family Percentage 95% 88% 80% 68% 87% Townhouse Percentage 5% 9% 13% 18% 9% Multi Family Percentage 0% 3% 7% 14% 4% Single Family Detached Units 8.075 5.720 3,800 1,700 19,295 Townhouses 425 585 618 450 2,078 Apartments or Condominiums 0 195 333 350 878 Source: ERA Economics Research Associates Report. 10.2.2005 Development Opportunities in Ramona -Sanderson Corridor IV-5 SECTISN V. FFICE AND L'SINESS PARK DEVELOPMENT POTENTIAL This section describes the local and regional office and industrial real estate markets, and estimates current and future demand for office and business park development in San Jacinto and the Ramona -Sanderson Corridor. REGIONAL OFFICE MARKET Inland Empire Region The inland Empire office market is strong due to a combination of low interest rates, relatively low cost of land, and an abundance of reasonably priced labor. Commercial development in the region has increased rapidly to keep pace with the explosion in population growth, which has generated demand for all types of goods and service in the region. Office, medical, and industrial condominium development have increased in popularity in the southwest subregion of the Inland Empire, where land costs have increased by about 30 to 40 percent in the last year.1 In the multi -tenant office sector, the vacancy rate is currently three percent (with a range of two to four percent in the last year). Class A buildings have asking gross lease rates ranging from $2.20 to $2.75 per square foot per month, which is similar to lease rates in the San Francisco Financial District. The most recent reports by real estate brokers indicate that the Inland Empire regional office market is the second tightest market in the country, and 2.5 million square feet of space is planned for construction. The cities of Riverside, San Bernardino, and Corona are experiencing a great deal of office construction. According to CB Richard Ellis, there were three major office projects completed in the second quarter of 2005, including one Class A building and two Class B buildings, for a total of over 108,000 square feet in San Bernardino. Other projects in construction include Canyon Crossing Corporate Center in Riverside, Brier Business Center in San Bernardino, and Lakeview Center and Airport Corporate Center in Ontario. The Grove, a new 350,000-square-foot office campus located in the Hunter Business Park of Western Real Estate Business, "Market Highlight" August 2005. Economics Research Associates Project 16070 V-1 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor Riverside will be completed in 2007, and will become the largest new office campus in that city. There is reportedly over 1.5 million square feet of speculative Class A office space under construction in the city of Riverside. Riverside County In 2005, the total office inventory in Riverside County was 18.2 million square feet (see Table V-1). About 17.1 million square feet was occupied, representing a vacancy rate of 6.2 percent. From 2000 to 2003 the vacancy rates remained at about six to seven percent. Then in 2004 the regional office vacancy rate turned upward slightly to reach 8.3 percent as new space came onto the market. In the last year, with strong absorption the vacancy rate has come down again to about six percent. When averaged over the preceding five years, office absorption (net increase in occupied space) in Riverside County has averaged 469,000 square feet annually. The 2003 absorption was only 193,000 square feet; but by 2004 it had climbed to 722,000 square feet. Over the past four quarters, absorption totaled 820,000 square feet. The Riverside County office market is clearly heating up; however, it has not yet reached San Jacinto. According to Costar, a proprietary data source, San Jacinto's current office inventory totals only 128,000 square feet, a negligible share of the regional market (Table V-2). There are no vacancies, and there has been little construction in the last few years. The only new office project that ERA was able to uncover is a 28,000-square-foot building currently in construction at the corner of Seventh and State. INDUSTRIAL/FLEX MARKET ERA also reviewed the industrial/flex market in Riverside County to assess the potential demand for flex and light industrial space in San Jacinto. As indicated in Table V-3, Riverside County currently has about 3.9 million square feet of flex space, of which 11 percent is vacant. Over the last five plus years, average annual absorption was 91,000 square feet. Total absorption for the first two quarters of this year was 16,000 square feet. Riverside County has substantial warehouse development, but limited industrial/flex or research and development (R & D) space. The City of San Jacinto is not interested in the development of warehouse distribution use, and the demand for such use is not covered in this report. The average lease rate for industrial/flex space is now approximately $10.69 per square foot, triple net. Economics Research Associates Project 16070 V-2 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor Table V-1. Total Existing Office Space in Riverside County Total Total Total No. of Total Total Vacancy Total Vacant Vacant Occupied Total Net Average Period Bldgs RBA Vacancy % Available Avail % SF Absorption Rate (fs) 2000 1 Q 991 15,712,338 1,193,840 7.6% 1,175,301 7.5% 14,518,498 262,530 $ 15.24 2000 2Q 992 15,754,788 959,429 6.1% 963,077 6.1% 14,795,359 276,861 $15.28 2000 3Q 994 15,773,738 1,013,473 6.4% 886,462 5.6% 14,760,265 (35,094) $15.10 2000 4Q 995 15,777,508 981,759 6.2% 852,794 5.4% 14,795,749 35,484 $15.30 2001 1 Q 999 15,888,600 966,444 6.1% 884,796 5.6% 14,922,156 126,407 $15.73 2001 2Q 1,003 16,1 14,720 1,253,846 7.8% 1,144,763 7.1% 14,860,874 (61,282) 816.5 1 2001 3Q 1,004 16,127,102 1,191,422 7.4% 1,023,607 6.3% 14,935,680 74,806 $16.23 2001 4Q 1,007 16,170,246 1,168,892 7.2% 1,017,454 6.3% 15,001,354 65,674 $17.07 20021Q 1,017 16,296,028 1,021,878 6.3% 949,409 5.8% 15,2'74,150 272,796 $17.54 2002 2Q 1,017 16,296,028 1,069,545 6.6% 989,306 6.1% 15,226,483 (47,667) $17.65 2002 3Q 1,019 16,365,726 1,026,962 6.3% 941,92'7 5.8% 15,338,764 112,281 $17.67 20024Q 1,023 16,526,084 1,156,051 7.0% 1,051,120 6.4% 15,370,033 31,269 $18.22 20031Q 1,026 16,583,034 1,097,302 6.6% 991,3'70 6.0% 15,485,732 115,699 $18.56 2003 2Q 1,027 16,595,431 1,073,478 6.5% 991,458 6.0% 15,521,953 36,221 $19.75 2003 3Q 1,030 16,704,924 1,155,478 6.9% 1,154,083 6.9% 15,549,446 27,493 $20.05 2003 4Q 1,034 16,840,189 1,276,879 7.6% 1,194,100 7.1% 15,563,310 13,864 $20.58 20041Q 1,040 16,928,406 1,337,447 7.9% 1,187,148 7.0% 15,590,959 27,649 $21.33 2004 2Q 1,060 17,197,140 1,433,049 8.3% 1,204,506 7,0% 15,764,091 173,132 $21.75 2004 3Q 1,064 17,260,940 1,126,199 6.5% 929,796 5.4% 16,134,741 370,650 $21.71 2004 4Q 1,067 17,308,704 1,023,870 5.9°Ao 845,412 4.9% 16,284,834 150,093 $21.81 2005 1Q 1,079 17,530,091 1,054,533 6.0% 848,736 4.8% 16,475,558 190,724 $22.58 2005 2Q 1,087 17,703,994 985,093 5.6% 878,228 5.0% 16,718,901 243,343 $22.35 2005 QTD 1,112 18,240,058 1,129,826 6.2% 973,582 5.3% 17,110,232 235,931 $22.45 Source: CoSlar Economics Research Associates Project 16070 V-3 Market Assessment and Economic Development Strategics for the Ramona -Sanderson Corridor Table V-2. Total Existing Office Space in San Jacinto Period Total 'Total Total No. of Total Total Vacancy Total Vacant Vacant Occupied 'Total Net Average Bldgs RBA Vacancy % Available Avail'% SF Absorption Rate (fs) 2000 I Q 16 128,354 0 0.0% 0 0.0% 128,354 0 2000 2Q 16 128,354 0 0.0% 0 0.0% 128,354 0 2000 3Q 16 128,354 0 0.0% 0 0.0% 128,354 0 - 2000 4Q 16 128,354 0 0.0% 0 0.0% 128,354 0 - 2001 IQ 16 128,354 12,800 10.0% 12,800 10.0% 115,554 (12,800) $9.00 2001 2Q 16 128,354 11,500 9.0% 11,500 9.0% 116,854 1,300 $9.00 2001 3Q 16 128,354 11,500 9.0% 11,500 9.0% 116,854 0 $9.00 2001 4Q 16 128,354 11,500 9.0% 11,500 9.0% 116,854 0 $9.00 20021Q 16 128,354 11,500 9.0% 11,500 9.0% 116,854 0 $9.00 2002 2Q 16 128,354 11,500 9.0% 11,500 9.0% 116,854 0 $9.00 2002 3Q 16 128,354 7,100 5.5% 7,100 5.5% 121,254 4,400 $9.00 2002 4Q 16 128,354 7,100 5.5% 7,100 5.5% 121,254 0 $9.00 20031Q 16 128,354 0 0.0% 0 0.0% 128,354 7,100 $9.00 2003 2Q 16 128,354 0 0.0% 0 0.0% 128,354 0 - 2003 3Q 16 128,354 0 0.0% 0 0.0% 128,354 0 2003 4Q 16 128,354 0 0.0% 0 0.0% 128,354 0 20041Q 16 128,354 2,800 2.2% 2,800 2.2% 125,554 (2,800) $7.80 2004 2Q 16 128,354 2,800 2.2% 1,400 l.l% 125,554 0 $7.80 2004 3Q 16 128,354 1,400 l.l% 0 0.0% 126,954 1,400 2004 4Q 16 128,354 0 0.0% 0 0.0% 128,354 1,400 20051Q 16 128,354 0 0.0% 0 0.0% 128,354 0 2005 2Q 16 128,354 0 0.0% 0 0.0% 128,354 0 2005 QTD 16 128,354 0 0.0% 0 0.0% 128,354 0 Source: CoStar Economics Research Associates Project 16070 V-4 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor Table V-3. Total Existing Flex Space in Riverside County Period Total Total Total No. of Total Total Vacancy Total Vacant Vacant Occupied Total Net Average Bldgs RBA Vacancy % Available Avail % SF Absorption Rate (fs) 2000 IQ 150 3,431,533 389,178 1 I.3% 379,178 11.0% 3,042,355 19,325 $4.37 2000 2Q 151 3,444,645 371,763 10.8% 3'71,763 10.8% 3,072,882 30,527 $5.45 2000 3Q 151 3,444,645 274,524 8.0% 253,206 7.4% 3,170,121 97,239 $5.76 2000 4Q 151 3,444,645 235,838 6.8% 225,422 6.5% 3,208,807 38,686 $5.65 2001 IQ 152 3,450,812 257,730 7.5% 201,251 5.8% 3,193,082 (15,725) $5.92 2001 2Q 152 3,450,812 338,163 9.8% 213,569 6.2% 3,112,649 (80,433) $6.84 2001 3Q 153 3,483,584 265,254 7.6% 161,848 4.6% 3,218,330 105,681 $5.96 2001 4Q 156 3,502,453 165,660 4.7% 157,591 4.5% 3,336,793 118,463 $6.18 20021Q 160 3,570,847 199,612 5.6% 166,991 4.7% 3,371,235 34,442 $6.64 2002 2Q 162 3,620,833 310,180 8.6% 269,336 7.4% 3,310,653 (60,582) $7.41 2002 3Q 163 3,625,1 17 281,954 7.8% 232,508 6.4% 3,343,163 32,510 $7.95 2002 4Q 165 3,651,915 299,266 8.2% 273,378 7.5% 3,352,649 9,486 $8.49 2003 1 Q 168 3,675,915 359,368 9.8% 311,370 8.5% 3,316,547 (36,102) $9.15 2003 2Q 170 3,696,915 398,085 10.8% 346,881 9.4% 3,298,830 (17,717) $9.41 2003 3Q 170 3,696,91.5 323,647 8.8% 228,283 6.2% 3,373,268 74,438 $9.48 2003 4Q 170 3,696,915 229,800 6.2% 234,232 6.3% 3,467,115 93,847 $9.50 2004 1 Q 170 3,696,915 259,308 7.0% 229,717 6.2% 3,437,607 (29,508) $9.77 2004 2Q 174 3,736,570 238,351 6,4% 191,713 5.1 % 3,498,219 60,612 $9.93 2004 3Q 174 3,736,570 202,556 5.4% 174,713 4.7°/u 3,534,014 35,795 $ 10.29 2004 4Q 175 3,765,070 169,203 4.5% 152,802 4.1 % 3,595,867 61,853 $10.52 2005 IQ 184 3,847,1 15 216,021 5.6% 183,191 4.8% 3,631,094 35,227 $10.90 2005 2Q 189 3,939,547 410,692 10.4% 388,432 9.9% 3,528,855 (102,239) $10.90 2005 QTD 192 3,983,239 438,661 11.0% 422,936 10.6% 3,544,578 15,723 $10.69 Source: CoStar Economics Research Associates Project 16070 V-5 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor SELECTE t BUSINESS PARKS IN REGISN There are only a few Class A business parks in the Inland Empire. The following is a description of selected office and business parks in this region. Crossroads Corporate Center, Murrieta Crossroads Corporate Center in Murrieta, located on the 1-215 freeway, has recently completed. the construction of its first phase. The overall development will consist of four buildings for a total of 273,000 square feet upon completion. Phase I is a 78,000 square -foot, four-story building, which is expected to be fully leased in the near future. Phase II, another similarly sized building, will breaking ground shortly. Hanle r nusiuess Park, Riverside Riverside's Hunter Business Park is located at the interchange of I-215 and SR 60, with rail access also available from the UPS? and BNSF lines. The park has a mixture of traditional industrial tenants and new high tech businesses. According to the City of Riverside Economic Development department, the business park has been successful due to several factors: • Existence of strong industrial base. • City's own public utility department, offering incentive for new, expanding, and relocating businesses. • Location within the Agua Marisa Enterprise Zone, which offers valuable tax incentives by the state and city. • Major freeway interchanges offering access to I-215, SR-60, and SR-91, with proximity to I-15. • Presence of a major university, University ofCalifomia, Riverside. Located within the Hunter Business Park, the 56-acre University Research Park is designed for R&D and technology -based manufacturing businesses. The park was established by a partnership between the City of Riverside, the County of Riverside, and the UC Riverside. The business park is located in proximity to the university, and is able to attract high technology tenants partly due to this relationship. Among the tenants of University Research Economics Research Associates Project 16070 V-6 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor Park are software companies Q Motions, Surado Solutions, and biotechnology firms such as Centrum Analytical Laboratories and Encore Pharmaceuticals. Monthly lease rates at Hunter Business Park range from $0.40 per square foot for industrial uses to about $2.00 per foot for office uses. Commereenter/Tri-City, San Bernardino The Tri-City Corporate Center is a 153-acre multi -use office park located in San Berardino, at the junction of I-10 and 1-215. The park includes a variety of tenants, including 120 businesses and retailers. There are three Class A office buildings, four single -story research and development buildings, and a transportation center for the Burlington Northern Santa Fe Railroad. Currently, there is 2.5 million square feet of office space at the center, with a vacancy rate of 15.6 percent. Lease rates are approximately $1.75 SF/month. New transactions signed in 2005 include a 10-year contract with the Art institute of California for 33,600 square feet, as well as, a lease for 87,000 square feet with Northrop Grumman Missile Systems. According to CB Richard Ellis, the Commercenter/Tri-City submarket has a current vacancy rate of 13 percent, with a lease rate of $1.77 per square foot (also the average lease rate in the Inland Empire overall) . The submarket has 2,388,579 square feet of office space, of which Tri-City Corporate Centre accounts for 812,131 square feet - 34 percent of the submarket. The newest buildings, the 114,000-square-foot Vanderbilt Plaza and the 86,000-square-foot Three Carnegie Plaza, feature dramatic lobbies, state-of-the-art computer controlled HVAC, and parking ratios of 4:1000. To meet the continued demand, a 72,000-square-foot three-story building with 8.5:1000 parking will be delivered in 2006. Empire Towers, Ontario Empire Towers is a premier office campus development that will ultimately contain approximately 500,000 square feet of Class "A" office space in multiple buildings. The campus features pedestrian pathways, secluded seating areas, fountains and artwork. Adjoining the project to the east is an extensively landscaped plaza encompassing over seven acres. Economics Research Associates Project 16070 V-7 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor The plaza includes two large water features that are connected by an elevated waterway. Pedestrian pathways, seating areas and sculptured landscaping surround each of the water features. There are currently three Class A buildings completed in the complex, Empire Towers I, a nine -story building with 180,0000 square feet; Empire Towers II, a three-story building with 70,000 sf, and Empire Towers III, a three-story building with 75,000 square feet of space. Lease rates are currently $2.05 FSG. DEMAND ANALYSIS ERA estimated future employment -based demand for office and flex space in Riverside County. Table V-4 summarizes the projected employment changes for Riverside County from 2005 to 2015 and from 2015 to 2025, based on official SCAG estimates. According to SCAG, a total of 238,000 new jobs will be generated in the 2005 to 2015 period. A significant amount of the increase will occur in services, retail trade, and construction. ERA applied a percentage to each of the employment sectors that would be likely to occupy office or flex/industrial space. For example, ERA estimated that 72 percent of new manufacturing jobs would occupy light industrial space, while about 95 percent of new finance, insurance and real estate (FIRE) employees would occupy office space. Given these estimates, ERA calculated the number of new employees that would demand office or light industrial/flex space from each of the sectors from 2005 to 2025. The results show that from 2005 to 2015, about 29,400 new employees will need to be housed in industrial/flex space, while 38,200 new employees will demand office space. From 2015 to 2025, an additional 30,200 employees will require new flex/industrial space and 30,700 new employees will demand office space. Table V-5 presents the demand model used to calculate the amount of square footage of office and flex space that will be needed to meet the additional demand from new employment in various sectors in Riverside County. The model incorporates the following assumptions: • Each office employee will occupy about 250 square feet, while each light industrial/flex employee will require 400 square feet. • In market equilibrium, newly constructed office and light/industrial buildings will have an occupancy rate of 95 percent. Economics Research Associates Project 16070 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor V-8 Table V-4, Employment Generated Demand for Office, Industrial & Flex Space in Riverside County Total Construe- Idianufac- Wholesale Retail Demand for Office Space 2005-2015 Employment tion taring TCUI Trade Trade FIRE2 Services lncrcase in Employment 2005-2015 238,465 29,606 13,811 5,444 5,273 52,337 8,275 1 1 1,639 Demand for Employment Space '90 Using Light Industrial/Flex' -- 5.0% 72.0% 15.0% 0.0% 0.0"/o 5.0"/o 15.0% Using Office - 5.0% 3.0% 10.0% 0.0% 0.0% 95.0% 25.0% Employment Using Light Industrial/ Flex 29,400 1,480 9,944 817 0 0 414 16,746 Employment Using Office 38,210 1,480 414 544 0 0 7,861 27,910 Total Construe- Manufac- Wholesale Retail Demand for Office Space 2015-2025 Employment tion turing TCU Trade Trade FIRE Services Increase in Employment 2015-2025 228,297 29,270 20,229 6,672 7,471 48,521 6,922 85,615 Demand for Employment Space °/, Using Light Industrial/Flex % Using Office Employment Using Light Industrial/ Flex Employment Using Office 5.0% 5.0% 72.01'/ 15.0% 3.0% 10.0% 0.0% 0.0% 0.0% 0.0% 5.0% 15.0% 95.0% 25.0% 30,218 1,464 14,565 1,001 0 0 346 12,842 30,717 1,464 607 667 0 0 6,576 21,404 'Transportation, Communications, Utilities 2 Finance, Insurance, Read Estate Includes employment in manufacturing, TCU sectors, but excludes heavy industry, distribution centers, warehouses, etc. Source: Southern California Council of Governments; ERA. Economics Research Associates Project 16070 V-9 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor Table V-5. Estimated Potential Demand for Office and Business Park Development in San Jacinto and Ramona -Sanderson Corridor 2005-2015 2015-2025 2005-2025 Change in Employment in Riverside County Demand for Employment Space Employment Using Light Industrial/Flex 29,400 Employment Using Office 38,210 Total Net Occupied Employment Space (sq.ft.): Industrial @ 400 sf per employee Office @ 250 sf per employee Total Net Employment Space (sq.ft.): Industrial (95% occupancy) Office (95% occupancy) San Jacinto Share of Riverside County (°/o) Light Industrial/Flex 5-% 7% 6% Office 8% 10% 9% Total Potential Leasable Space in San Jacinto (sq. ft.) Leasable Light Industrial/Flex Space 618,956 890,622 1,509,578 Leasable Net Office Space 804,422 808,348 1,6 12,770 Gross Office/Business Park Land Area in San Jacinto (sq. ft.) Gross Light lndustrial/Flex Space (FAR @0.3) 2,063,187 2,968,740 5,03],927 Gross Office Space (FAR @ 0.3) 2,681,406 2,694,493 5,375,899 Allowance for Local Circulation/ Amenities @ 30% Gross Space (sq.ft.) Allowance Light Industrial/Flex Space 618,956 890,622 1,509,578 Allowance Office Space 804,422 808,348 1,612,770 Total Potential Office/Business Park Development in San Jacinto (sq.ft.) Light Industrial/Flex Development Potential Office Development Potential Total Estimated Commercial Development Potential in San Jacinto Total Potential Office/Business Park Development in San Jacinto (acres) Light lndustrial/Flex Development Potential 62 89 150 Office Development Potential 80 80 160 142 169 238,465 228,297 466,762 30,218 59,618 30,717 68,927 11,760,168 12,087,012 23,847,180 9,552,508 7,679,305 17,231,813 12, 379,124 12,723,171 25,102,295 10,055,2.71 8,083,479 18,13 8,750 2,682,144 3,859,362 6,541,505 3,485,827 3,502,841 6,988,668 6,167,971 7,362,203 13,530,173 Total Estimated Office/Bus. Park Development Potential in San Jacinto Ramona -Sanderson Corridor Share of San Jacinto (°/) Light Industrial/Flex Share Low High Office Share Low High Demand Range for Office/Business Park in Ramona -Sanderson (acres) Light Industrial/Flex Low High Office Low High Total Office/Bus. Park Development Potential in Ramona -Sanderson (acres) 311 50% 55% 53% 60% 658o 63% 45% 55% 50% 55% 65% 60% 31 49 80 37 58 95 36 44 80 44 52 96 160 to 191 Economics Research Associates Project 16070 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor V-10 • Total employment space needed to meet the new demand is the product of the new jobs generated utilizing light/industrial or office space and the average space allocated to the office and industrial employee. • An estimated market capture rate was applied for the city of San Jacinto as a share of the total office demand generated in Riverside County, resulting in the potential square footage of office and light industrial/flex space demand for the city. • The office/light industrial square footage demand is then divided by the average floor area ratio to estimate gross square foot demand. In this case, ERA applied an FAR cf 0.3. • An allowance for local circulation and amenities of 30 percent was applied to determine gross acreage demand. • rrom the total potential gross demand for office and business park development in San Jacinto, a "high" and "low" market capture rate was applied for the Gateway Area to estimate the potential acreage demand for the project area. Based on this model, ERA estimated that San Jacinto could potentially capture approximately 142 acres of office/business park development from 2005 to 2015 and an additional 169 acres of office/ business park development in the 2015 to 2025 period. The total for the next 20 years would be 311 for the city as a whole. From this total, ERA estimated a range of between 67 to 81 acres of potential business park development in the Gateway Area from 2005 to 2015, and 93 to 110 acres of new business park development from 2015 to 2025 in the project area. The estimated office/business park acreage demand for the Gateway Area is therefore 160 to 191 acres. Medical Campus In addition to the business park demand potential presented in the above model, ERA also reviewed the potential for a medical campus locating in the San Jacinto Valley. With the regional access afforded by the new freeway interchange, and the growing local population, the Valley will become significantly more attractive to large medical institutions. The city of Riverside has experienced growth in its biomedical and pharmaceutical supply industries in recent years, as more of these companies have become interested in locating in the Inland Economics Research Associates Project 16070 V-11 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor Empire due to lower costs, existence of good educational institutions, and the access to the regional market. As large parcels of land in the city of Riverside becomes more scarce, it will become increasingly difficult for a large campus such as a medical facility to locate there. We understand a major health service provider is currently seeking a 50-acre parcel to locate a medical campus including hospital and medical office buildings possibly in the San Jacinto Valley. The City of San Jacinto should move strategically to ensure this medical complex has the opportunity to locate within the Gateway Area. Economics Research Associates Project 16070 V-12 Market Assessment and Economic Development Strategies for the Ramona -Sanderson Corridor SECTION VI. RETAIL !fEVEL•PMENT POTENTIAL TAXABLE RETAIL SALES San Jacinto The taxable retail sales trends for the city of San Jacinto are outlined in Table VJ-1. As indicated, total retail sales have been growing in the city since 1993. In 2003, total retail sales were approximately S75 million. Sales were distributed into various retail categories, with the greatest share in service stations, eating and drinking facilities, grocery stores, and other retail store types. San Jacinto's taxable retail sales composed only 0.3 percent of the county's total retail sales. On a per capita basis, San Jacinto's retail sales were under $4,000 in 2003, signaling a great deal of leakage of sales to other neighboring communities, including Hemet, Moreno Valley, Temecula, and others. Hemet Hemet's taxable retail sales are significantly more robust than San Jacinto's, as shown in Table VI-2. In 2003, Hemet's taxable sales totaled $686 million. Total sales have increased steadily since 1993 at an annual rate of over six percent. Hemet's sales comprise about three percent of Riverside County's retail sales. The presence of auto dealers in Hemet has contributed substantially to taxable retail sales in the city. In 2003, auto dealers made up 30 percent of total sales tax revenue, bringing in $203 million in taxable sales. Other important retail categories included general merchandise and drugstores (25 percent), and food and beverage (10 percent). Riverside County In Riverside County, taxable sales in 2003 were over $16 billion, as shown in Table VI-3. Taxable sales revenue has been growing at an average annual rate of nine percent since 1993. The most important retail segments in Riverside County are auto dealers and supplies (23 percent), general merchandise and drugstores (17 percent), and other retail stores (13 percent). Economics Research Associates VI- I Development Opportunities in Ramona -Sanderson Corridor Table VI-1. City of San Jacinto Taxable Retail Store Sales ('I1 ousmds of Dollars) Rate of 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Growth Apparel Stores $129 $81 $143 n/a n/a rr/a $85 $172 $273 $344 $502 14.55% Gen. Merchtuxlise & Drug 541 704 585 423 439 387 1,464 1,922 2,038 2,084 n/a 14.44% Food Stores 7,341 9,437 10,055 10,162 10,561 10,471 9,989 10,549 11,180 11,629 13,420 6.22% Eating & Drinking ('laces 6,559 6,642 8,093 8,613 8,492 8,702 9,598 11,016 11,462 12,993 16,457 9.64% Furnishing & Appliances 1,990 2,068 1,695 1,877 1,490 1,363 1,821 1,600 1,647 1,630 1,487 -2.87% Bldg Materials & Faun Epnt 4,875 3,471 4,030 5,404 4,009 3,654 3,791 3,351 3,227 3,793 3,910 -2.18% Auto Dealers & Supplies 3,421 4,259 5,059 4,276 3,949 4,696 4,652 4,895 4,512 4,031 5,748 5.33% Service Stations 12,134 10,706 10,663 11,505 12,738 13,845 17,768 18,868 19,807 18,912 22,474 6.36% Other Retail Stores 7,987 6,728 6,262 5,622 4,858 5,290 6,488 6,758 6,818 8,038 11,040 3.29% Total City of San Jacinto Annual Growth 544,977 $44,096 $46,585 $47,882 $46,536 $48,408 $55,656 $59,131 561),964 $63,454 $75,038 5.25% -2.0% 5.6% 2.8%-2.8'%" 4,0'% 15.0'%u 6.2% 3.1'/° 4.I% 18.3"/" Total Riverside County $6,716,703 $7,131,216 $7,435,414 $8,003,051 $8,508,010 $13,140,854 $I5,076,945 $16,979,449 $18,231,555 $19,498,994 $21,709,135 $6,288,751 Share or County 0.7% 0.6% 0.6% 0.6"A 0.5"/0 0.4% 0.4% 0.3% 0.3"A 0.3% 0.3% 0.0% Suurce: Calitimria Board or Equalization, Research & Statistics Economics Research Associates V1-2 Development Opportunities in Ramona -Sanderson Corridor Table VI-2. City of I lenret Taxal,Ie Retail Stare Saks (Thousands of Dollars) Rate of 1993 1994 1995 1996 1997 1998 1999 2000 2001 2102 2003 Growth Apparel Stores $8,532 $7,210 $7,054 $7,152 $6,895 $7,688 $8,623 $8,921 $9,679 $9,987 $10,146 l 6% Gen. Merchandise & Drug $93,837 $101,067 $107,286 $108,279 $114,031 $123,424 $132,178 $141,368 $154,268 $165,074 $172,750 5.7% Food Sloes $23,789 $21,256 $20,358 $24,055 $26,666 $26,795 $27,613 $28,877 $30,167 $32,482 $34,732 3.5% listing & Drinking Places $38,845 $41,552 $43,497 $42,134 $43,083 $46,071 $51,261 $54,206 $57,869 $60,749 $66,717 5.0% Furnishing & Appliances $6,709 $6,023 $6,127 $6,501 $7,581 $10,081 $11,714 $12,839 $12,730 $14,415 $15,494 7.9% Bldg Materials & Farm lgmt $15,709 $11,620 $12,483 $15,075 $31,793 $39,387 $51,320 $52,883 $53,005 n/a $73,107 15.0% Auto Dealers & Supplies $94,267 $99,198 $106,768 $109,279 $109,592 $123,914 $171,993 $21'7,124 $194,446 $212,132 $203,173 7.2% Service Stations $35,036 $35,891 $33,700 $37,262 $37,856 S32,321 $37,584 845,071 $48,314 $47,255 $58,392 4.8% Other Retail Stores $30,577 $31,191 $30,802 $30,578 $33,003 $38,380 $45,859 $45,433 845,189 $110,786 $51,036 4.8% 'Total City of I lcnxt $347,301 S355,008 $368,075 $380,315 5410,500 $448,061 $538,145 $606,722 $605,667 $652,880 $685,547 6.4'70 Annual Grovlh 2.2% 3.7% 3.3% 7.9% 9.2% 20.1"/,% 12.7% -0.2% 7.8% 5.0"/° "Total Riverside County Sham: of County S6,716,703 $7,131,216 S7,435,414 $8,003,051 88,508,1110 S9,276,448 $10,685,724 $12,190,474 S13,173,281 S14,25(1,733 S16,030,952 9.1"/o 5.2% 5.0% 5.0%% 4.8% 4.8% 5.0% 5.0%, 4.6% 4.654 4.3% 711.29% Source: California 13owd of Equalizal ion, Research & Statistics Economics Research Associates VI-3 Development Opportunities in Ramona -Sanderson Corridor Table VI-3. Riverside County Taxable Retail Store Sales. (Thousands or Dollars) Retail Category 1993 1994 1995 1996 1997 1998 1999 2000 2001 201)2 2003 Apparel Stores $395,084 $406,973 $423,007 $474,384 $488,625 $498,753 $495,945 $538,578 $565,295 $610,388 $746,015 Gen. Merchandise & Drug $1,267,240 $1,350,233 $1,391,979 $1,429,338 $1,498,212 $1,628,149 $185,651 $2,062,738 $2,275,736 $2,459,046 92,671,971 Food Stores $673,556 $658,486 $657,498 $696,627 $734,532 $758,829 $828,641 $889,894 $930,232 $967,171 $1,028,392 Eating & Drinking Places $849,961 $884,970 $919,233 $979,535 $1,030,655 $1,117,921 $1,233,274 $1,364,808 $1,465,467 $1,559,215 $1,713,632 Furnishing & Appliances $267,674 $299,746 $327,517 $337,433 $328,893 $367,812 $447,594 $517,578 $526,083 $594,049 $691,051 Bldg Materials & Farm Equip $584,512 $633,273 $714,133 $709,568 $831,063 $998,256 $1,186,636 $1,366,076 $1,503,737 $1,581,792 $1,868,995 Auto Dealers & Supplies $1,129,747 $1,283,950 $1,387,403 $1,498,842 $1,565,935 $1,824,833 $2,161,678 $2,615,997 $2,924,508 $3,314,133 $3,662,151 Service Stations $739,399 $741,435 $767,675 $835,767 $855,454 $793,252 $983,739 $1,196,693 $1,223,753 $1,249,646 $1,536,240 Other Retail Stores $809,530 $872,150 $846,969 $1,041,557 $1,174,641 $1,288,643 $3,162,566 $1,638,112 $1,758,470 $1,915,293 $2,112,505 Total Riverside County Annual Growth 96,716,703 $7,131,216 $7,435,414 $8,003,05I $8,508,010 99,276,448 $10,685,724 $12,1'81,474 $13,173,281 $14,250,733 $16,030,952 6.2% 4.3% 7.6% 6.3% 9.0% 15.2% 14.1% 8.1"/0 8.2% 12.5"/0 Source: Cal ilixnia Board oFEqual ization Economics Research Associates VI-4 Development Opportunities in Ramona -Sanderson Corridor Per capita sales are presented in Table VI-4 for Riverside County. Overall, total per capita spending was nearly $10,500 in the county. Per capita spending on retail has grown at an annual rate of over five percent. Certain sectors, such as farm and building supplies, auto dealers and suppliers, other retail stores, and furnishings have increased at a greater than average rate. The growth in categories associated with home improvements (building supplies and furnishings) supports the corresponding growth in housing construction that has occurred in the county during the last decade. San Jacinto and Hemet's share of Riverside County taxable sales are reviewed in Table VI-5. RETAIL MARKET TRENDS Inland lErnpird In the Inland 'empire, the retail market has been very strong as hornebuilding activity continues at a rapid pace. As one of the fastest growing areas in the country, the Inland Empire region is quickly being recognized as one of the top retail markets. Total retail_ space in the region is approximately 85 million square feet. In 2004, about 4.2 million square feet of retail space were built. In addition, there are approximately three million square feet of retail slated for completion by the end of the year. Vacancy rates are stable at about 6.25 percent, as the new supply is easily absorbed by retailers. Retail rental rates are comparatively more affordable than in the Los Angeles and Orange County markets. High performing stores in new developments achieve rents of about S32 to $40 per square foot. Community power centers are leasing for approximately S18 per square foot. Much of the major new retail developments in the Inland Empire have occurred along the major freeways. 1-15 has new large retail centers planned and under construction at almost every exit. In Wildomar, a Wal-Mart Supercenter development is planned and scheduled for completion in mid-2006. Victorville's Pavillion development is an $80 million lifestyle center planned to open in early 2006, with anchor tenants including Pierl, Linens n Things, and Michael's stores. Finally, Transcan Development is developing Canyon Crossings at the I-215 and Highway 60 interchange in Riverside California, which will have 740,000 square feet of retail space and will be completed late this year. Western Real Estate Business, "Market Highlight." August 2005. Economics Research Associates V1-5 Development Opportunities in Ramona -Sanderson Corridor Table VI-4. Per Capita Retail Store Sales in Riverside County. 1993 1994 1995 1996 1997 1998 1999 21100 2001 2002 2003 Riverside County Population 1,272,180 1,308,032 1,344,894 1,382,796 1,421,765 1,461,833 1,503,029 1,545,387 1,607,197 1,671,4'78 '1,738,331 Per Capita Sales Apparel Stores $31I $311 $315 $343 $344 $341 $330 $349 $352 $380 $429 Gen. Merchandise & Drug' $1,026 $1.063 $1,066 $1.065 $1,085 $1,147 $127 $1,375 $1,416 $1,576 $1,583 Food Stores $1,588 $1,510 $1,467 $1,511 $1,550 $1,557 $1,654 $1,728 51,736 $1,805 $1,775 Eating & Drinking Plans $668 $677 $683 $708 $725 $765 $821 S883 $912 $970 $986 Famishing & Appliances $210 $229 $244 $244 $231 $252 $298 $335 $327 $370 $398 131dgMaterials & Farm Egmt $459 $484 $531 $513 $585 $683 $789 $884 $936 $984 $1,075 Auto Dealers &Supplies $888 $982 $1,032 $604 $1,101 $1,248 $1,438 $1,693 $1,820 $2,062 $2,107 Service Stations $581 $567 $571 $604 $602 $543 $655 $774 $761 $778 $884 Other Retail Stores $636 $667 $630 $753 $826 $882 $2,104 $1,060 $1,094 $1,192 $1,215 Total Riverside County Annual Growth $6,368 $6,490 $6,537 $6,347 $7,049 $7,417 $8,216 $9,080 $9,354 $10,116 $10,451 1.9% 0.7% -2.9% 11.1% 5.2% 10.8% 10.5% 3.0% 8.I% 3.3% Adjusted line taxable sales by 3'%u to reflect non-taxable drug sales 2 Adjusted taxable sales by 3 limes to reflect total thod store sales Source: Calilisnia Board ol'Equalizadion, ERA Economics Research Associates VI-6 Development Opportunities in Ramona -Sanderson Corridor Table V I-5. SAN JACINTO SHARE OF COUNTY TAXABLE STORE SALES IN 2003 (Thousands of Dollars) City of City of Riverside San Jacinlo's Share Mulct's Share San Jacinto Valley San Jacinto Hemet County Of County Of County Share of County Apparel Stores $502 $10,146 $746,015 0.1% 1.4% 1.4'%0 General Merchandise n/a $I72,750 $2,671,971 n/a 6.5% 6.5% Food Stores $13,420 $34,732 $1,028,392 1.3% 3.4% 4.7% Eating & Drinking Places $16,457 $66,717 $1,713,632 1.0% 3.9% 4.9% Furnishing & Appliances $1,487 $15,494 $691,051 0.2% 2.2% 2.5% Bldg Materials & Farm &pnt $3,910 $73,107 $1,868,995 0.2% 3.9% 4.1% Auto Dealers & Supplies $5,748 $203,173 $3,662,151 0.2% 5.5% 5.7% Service Stations $22,474 $58,392 $1,536,240 1.5% 3.8% 5.3% Other Retail Stores $11,040 $51,036 $2,112,505 0.5% 2.4% 2.9% Total Taxable Sales S75,038 S685,547 $ 1 6,030,952 0.5"Ge 4.3"/" 4.7% Source: California Board or Equalization Economics Research Associates VI-7 Development Opportunities in Ramona -Sanderson Corridor rside County According to Costar, Riverside County has over 36 million square feet of leasable retail space currently. The vacancy rate is only 6.8 percent, with available vacant square footage totaling 2.5 million. In the first two quarters of 2005, Riverside County absorbed more than 1.4 million square feet. Average annual absorption from 2000 to 2005 was 877,000 square feet. Average lease rate in Riverside County is currently S15.34 triple net. San Jacinto accounted for 96,000 leasable square feet, with a vacancy rate of about 31 percent. Lease rates were comparable to the county, at an average rate of $15.32 triple net. Average annual absorption from 2000 to 2005 was about 2,900 square feet. One of San Jacinto's largest retail developments is the 70,000-square-foot Farmer's Corner mall, which was recently bought by the Roxbury Company of Century City. Tenants at the mall include the Acapulco restaurant, Tap Daddy's Bar and Grill, and over 30 other specialty retail stores and restaurants. Unfortunately, since its construction in 1980, the mall has struggled to attract customers. Some of the mall's lackluster performance is blamed on the building's design, which was initially intended to be a farmer's market and then was adapted to a conventional commercial center. In addition to the Farmer's Corner mall, San Jacinto also has several community shopping centers, a 12-screen movie theater, and several fast food restaurants. As indicated in the taxable sales data, neighboring Hemet has a significantly larger share of the Valley's retail development, mostly concentrated along Florida Avenue. This includes the Hemet Mali, the regional 250,000-square-foot shopping center anchored by Gottschalk's, Sears and J.C.Penney, as well as power centers with tenants such as Target, Home Depot, Lowe's, and others. Both Gottschalks and J.C. Penney have reported sales far beyond those achieved in other regional centers in Southern California, with demand continuing to grow. New "sit-down" restaurants have recently been developed along the Florida Avenue corridor as well. Last year, the new Applebee's restaurant in Hemet achieved revenues far beyond what had been projected for that location. Similarly, the new Chili's restaurant that opened in May of this year in the same area has performed beyond expectations to generate more sales than the restaurants in Temecula and San Diego, with more than four complete turnovers a day and serving over 1,100 people on weekend days. This performance demonstrates that San Jacinto is currently under -served in terms of commercial facilities. Economics Research Associates VI-8 Development Opportunities in Ramona -Sanderson Corridor PLANNEII DEVELOPMENT IN SAN JACINTO VALLEY In addition to the recent development in the San Jacinto Valley described above, there are other new projects in construction and planning stages in Hemet and San Jacinto_ among these projects in the pipeline in San Jacinto is the Super Walmart development, currently under construction at the corner of San Jacinto Avenue and Commonwealth. The project is on a 26-acre site and will contain about 260,000 square feet of retail, including 230,000 square feet for WaiMart, as well as fast-food restaurants, a pharmacy and other supporting retail. Currently, Hemet has several projects in the pipeline, including the possible expansion of the Hemet Mall, and new store openings for major tenants like Marshall's, Petsmart, and Office Depot on their way to Florida Avenue. There is also a planned project for 60,000 square feet of mixed use development across from Hemet Mall which would include some retail uses. DEMAND ANALYSIS ERA developed a demand model to forecast retail demand in the San Jacinto Valley from 2005 to 2025. The model is built based on the following assumptions: • In the demand model, we adjusted for the impact of real income growth considering both macro economic conditions, such as business cycles, and micro economic changes, such as the homebuilding boom and simultaneous climb in Riverside County home prices driving up the average income of future residents. ® The aggregate retail demand is then calculated by multiplying the market area population by the expected per capita retail sales for difference points in time. Subtracting the 2005 sales from the projected 2015 and the 2015 sales from the 2025 sales calculate the growth in retail demand for the two time periods. • The sales gain by category is then converted into retail square footage demand by dividing by an estimated sales per square foot per year factor for each category. • The retail square footage demand is then divided by an average floor area ratio (FAR) to estimate gross retail commercial acreage demand. In this case, we applied an FAR ratio of 0.2. • We then assigned an estimated market capture rate by retail category for the city of San Jacinto, resulting in the potential acreage demand in the city. Economics Research Associates V I-9 Development Opportunities in Ramona -Sanderson Corridor • We then assigned an estimated "low" and "high" market capture rate by retail category for the Gateway area based on the captured retail demand in San Jacinto, giving us a range of potential acreage development in the project area. This analysis is detailed in Table VI-6 for the 2005 to 2015 time period and Table VI-7 for the 2015 to 2025 time period. Based on ERA's model, from 2005 to 2015, there will be demand for an additional 4.3 million square feet (500 acres) of retail space in the San Jacinto Valley. ERA estimated that the city of San Jacinto would capture about 29 percent of the demand for new retail space. Therefore, San Jacinto's share of the new retail development amounts to 147 acres. A significant porticn of the new development is expected to occur in the Gateway Area. In the low capture scenario, the Gateway area would capture about 52 percent of total potential development in San Jacinto. In the high capture scenario, the Gateway area would receive 62 percent of San Jacinto's future retail development. The range of development occurring in the Gateway Area in the next ten years is between 114 acres and 136 acres. From 2015 to 2025, the additional demand for retail space in the San Jacinto Valley will total almost 5.3 million square feet. The city of San Jacinto's capture of that demand is approximately 31 percent for this period. Therefore, the total acreage of retail development captured in San Jacinto is about 187 acres. Of this total, ERA estimated that between 57 percent and 66 percent of the city's future retail development would occur in the Gateway Area. Based on this estimate, the potential for retail space in the project area from 2015 to 2025 is between 159 to 186 acres. From 2005 to 2025, San Jacinto's new retail development potential will total 500 acres. The Gateway Area could potentially capture between 273 to 322 acres of the future demand for retail space in the city. Economics Research Associates VI-10 Development Opportunities in Ramona -Sanderson Corridor Table VI-6. Retail Land Demand Forecast: 2005 to 2015 Trade Area - Cities of San Jacinto and I lenmI (San Jacinto Valley) Sou Jacinto Valley Popnlalion Real locume Adjustment 2005 2015 Growth in Demand from 201)5 to 2015 106,585 190,780 1,030 1.384 Trade A rca San Jachuo Sanderson-Rmnonn Incremental Low Share of San Jacinto High Share of San Jacinto Pcr Capita 9'ulnl Market Area Demand Sales Salcs1SF Sq Ft Acres FAR Share of Net Demand Dcmmnd 21)04 ($0110) ($ 000) ($ 000) ($ 000) Trade Area Acreage Share Net Acres Share Net Acres Apparel Stares 80,429 $47,114 $113,333 $66,219 $225 294,307 34 0.2 25% 8 65% 5 75% 6 Gen. Merchandise & Drug 1.583 $173,808 418,098 2,14,290 250 977,158 112 0.II 30% 34 60% 20 70 % 24 1'4,ot) Stores 1.775 3194,841 468,693 273,852 450 608,560 70 0.2 33% 23 45% IO 55% 13 Eating & Drink log Places 0.986 $108223 260,331 152,108 300 5(17,028 58 0.2 30 % 17 45% 8 55% I0 Furnishing & Appliances 0.398 $43,643 104,983 61,3,10 220 278,820 32 0,2 28% 9 60% 5 70 % 6 Bldg, Materials & Faint Lqurl 1,(175 $118,031 283,934 165,899 275 603,269 69 0.7 30% 21 45"A 9 55% I I Auto Dealers & Supplies 2.107 $231,279 556,346 325,066 NA 226,575 26 0.2 25% 7 75% 5 85% 6 Service Stations 0,884 .$97,020 233,382 136,363 1300 104,894 12 0.2 30% 4 45% 2 55% 2 Other Retail Stores 1.215 8133,113 320927 187,514 250 750,056 86 0.2 28% 24 45% 11 55% 13 Total Retail Stores $111.451 81,147,37.5 82,760,926 51,612,651 4,350,667 499 2954, 147 52% 76 62% 91 Allowance 1'ur Service Conuuercinl and En tertainnreni Uses at 20%1 Allowarcc for Circa h,tiun and Access n 30%� Total Retail Acreage Demand 2(105 to 2015 New to high range) 15 18 23 27 114 136 hrchides service cunwmrri:d uses such as beauty s:dolls, nal bushel's, drycicaners, repair stores, educational and health services, professional and business services, ere. Includes local streets, ensumeuls, landscaping and entry Ieatirus, etc. 5uunu: Rizxluls; Deltas mud Cculs or Shopping Comers; Economics Research Associates 'ruble V1-7. Retail Land Demand Forecast: 2015 to 2025 "rr.01e Arcs - Cities olSan Jacitlu and I lemel (San Jacinth Valley) San Jacinto Valley Papilla it 2015 2025 190,780 242,442 Or in Demand ham 21115 l0 2025 Read Income Adjustment 1384 1,860 Trade Area San Lmitdn Sanderson -Ramona Incremental Low Share of San Jacinto Dinh Shore of Son Jacinto I'cr Capita 'l'ul:d Flarlmt Area Denam,l Sides Sales/$F Sy Ft Acres FAR Share of Net pennant Demand 2°04(0000) 45000) (5000) ($00(1) ''rode Arca Acreage Share Net Acres Share Net Acres Apparel Shires S0.429 $113,333 $193,555 $80,222 S225 356,542 41 0.2 27% II 70% 8 80% 9 Gun. Mochmndisu & Deg 1.583 416,098 714,045 5295 947 $250 1,183,79(1 136 0.2 30% 41 65% 26 75%0 31 Food Stores 1.775 468,693 800,154 5331761 5450 737247 85 0,2 35'% 30 50% 15 60% 18 Eating & Drink ing Places 0.986 260,331 444,605 5184,274 $300 614,216 71 0.2 33% 23 50% 12 60% 14 Ei nar:king & Appliances 11.398 104,983 179,294 574,31) $220 337,779 39 0.2 30% 12 65 1 8 70% A Bldg Materials F Farm 8gnd 1 075 283,934 484,914 5200,960 5275 730,838 84 0 2 30% 25 5060 13 60% 15 Aulo Dealers Rc Snppliae 2.1117 556346 950,152 $393,806 NA 274,487 32 0.2 30% 9 75% 7 85% 8 Service Stations 0 864 233382 398,560 5165,198 $1,301 126,978 15 0.2 30% 4 50% 2 60% 3 0(her Relaul Stores 1.215 320,927 549,093 5227,166 $250 908,664 104 0.2 30% 31 50% 16 60s% 19 ''utal Retail Slm'c5 5111,451 S2,760,026 Allowance fur Service Comnmrcial and Entertainment Uses al 20' 0 1 Allowance tar Cirenlaiion and Access Gil 30 % n 54,713,692 51,953,666 ''ntal Retail Acreage Demand 2015 to 2025 (low to high range) Teal Retail Acreage Remand 20(15 to 2025 (111w In high range) 5,2711,571 1108 31 % 187 57 % 106 6660 124 21 32 L15H 273 2S 37 186 322 Includes sciatica commercial uses such as: bendy salons, barbershops, dg'deancrs, repair stores, edocatinnal and health services, pmi'essimlal and husiness services, ere. 2 Includes local streets, casements, landscaping and entry Icntnres, Cie. Snnme. Iin:nnnnucs Resaud, Associates Big and medium box retailers and automobile dealerships are able to locate on the south side in accordance to the required parcel depths. Automobile dealerships favor a long frontage and do not require much parcel depth. It consolidates the two community dividers, the new Mid County Parkway and the existing aqueduct, into a single corridor thereby minimizing the number of barriers to community, cohesion. It uses the aqueduct to buffer the negative influences of the freeway on the south side and creates a good separator between the commercial uses on the north side of the Mid County Parkway and the predominately residential uses oe south side of the freeway and aqueduct. places the new Highway 79 and Mid County Parkway interchange, and the cornrnercial properties around this interchange, further south in'the San Jacinto Valley and closer to more of the valley population. The eastern terminus of this Mid County Parkway leads to a strong potential location for the Town Center —Civic Center complex. The parkway alignment and the location of the Town Center could be designed so that as a driver approaches from the west, he or she can see the Town Center at the end of the parkway with the San Jacinto Mountains serving as a memorable backdrop. It would allow San Jacinto to convey a sense of place that few newer communities in Riverside County have been able to achieve. While not in the geographic center of the city, this location for a Town Center would be easily accessible to San Jacinto residents from the west south and southeast. e II-1. Possible Town Center Locations Economics Research Associates Project No. 16070 II-4 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor but it should certainly include the major properties around the Highway 79 and Mid County Parkway interchange. The cost of a high quality Specific Plan and EIR is expected to be in excess of $500,000, and it is fairly common for municipalities to recover that cost from the property owners or develops as the properties develop. As an alternative, the cost of the Specific Plan can be part of the residential entitlement for land negotiation. IMAGES OF A FUTURE SAN JACINTO TOWN CENTER TT 0'1 ERA Economics Research Associates Project No. 16070 II-8 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor ERA Economics Research Associates Project No. 16070 11-9 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor ERA SECTION HL EC € NOMIC OUTLOOK AND DEMOGRAPHIC TRENDS In this section, ERA analyzes the regional economic context for future development potential in San Jacinto, including employment trends, key industries, and employment forecasts. In addition, ERA presents an overview of constriction trends and demographics in San Jacinto and Riverside County, including historical population, race, educational attainment, income, and population projections. REGIONAL ECONOMIC OVERVIEW Riverside County is part of the greater inland Empire economy, which also includes San Bernardino County. The inland Empire currently employs approximately 1.1 5 :pillion (non- agricultural employment), a significant increase from 988,000 in 2000. Riverside County's unemployment rate dropped from a high of 12 percent in 1993 to below six percent in 2004. As shown in the chart below, Riverside County's unemployment rate was consistently above the state level until 2002 and has been below the State average since. Figure III-1. Unemployment Trends in Riverside County. 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Unemployment Rates in Riverside County and California, 1990-2004 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 • Riverside County p California Source: California Employment Development Department; Economics Research Associates, 2005. Economics Research Associates Project No. 16070 III-1 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor The economy of the Inland Empire is diverse, with employment distibuted among many industry sectors. The chart below illustrates the current industry mix in the Inland Empire: Figure I1I-2. Inland Empire Employment by Industry. Government 18% Other Services 3% Wholesale Trade, Transportation and Utilities 9% Employment in Inland Empire, 2004 Natural Resources and Construction 10% Manufacturing 10% Advanced Services 32% information and L_ Financial Activities 5% tail Trade 13% Source: California Employment Development Department; Economics Research Associates, 2005. As shown, the largest labor markets are in advanced services including professional and business services, educational and health services, and hospitality and leisure services (32 percent), government (18 percent), retail trade (13 percent), and manufacturing (10 percent). Inc. Magazine ranked the Riverside -San Bernardino metropolitan area as the 6tbest place for doing business in the country in 2005. The ranking was based on personal income data and employment growth trends. According to the U.S. Bureau of Economic Analysis, personal income in the Inland Empire has grown at a rate of five percent annually, well above most metropolitan areas. Due to a combination of relatively lower land costs, availability of land, skilled workforce, and an extensive transportation network, the Inland Empire has been able to attract many new companies and induce the expansion of local companies over the last 15 years. According to the California Employment Development Depattinent, Riverside County has added more jobs in the last 15 years than any other Southern California county. The following table illustrates job gains in Riverside County compared to other counties in California from 1990 to 2004: Economics Research Associates Project No. 16070 III-2 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Figure 111-3. Ethnic Composition for Key Cities and Riverside County 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% San Jacinto Ethnic and Racial Composition of Kay Cities Herret Perris Moreno Valley Riverside County ® White It African Arrerican ❑ Native American ❑ Asian and Pacific Islander o Other Race Source: US Census 2000; Economics Research Associates, 2005. Figure 111-4 Hispanic and Latino Population in Key Jurisdictions, 2000. Hispanic/ Latino Population as Percent of Total by Jurisdiction 70.0% 57.3% 60.0% 50.0% 36.2% 38.4% 40.9°/ 40.0% 32.4% 30.0% 23.U°! - 20.0% 10.0 % 0.0% Source: US Riverside Hemet Moreno Valley Perris San Jacinto California County Census 2000; Economics Research Associates, 2005. Economics Research Associates Project No. 16070 III-7 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor ERA Age The chart below (Figure HI-5) illustrates the distribution of the population of each jurisdiction by age group. As shown, seniors are more generously represented in the San Jacinto Valley than in the county as a whole. This is largely due to the presence of many retirement communities in the valley. Nearly a third of the population in Hemet is made up of seniors in the 65 and over age groups. San Jacinto's share of seniors is at 17 percent, compared to 13 percent and 11 percent in the county and state, respectively. By contrast, Moreno Valley and Perris have a greater representation of children under 15 than the other jurisdictions. Children compose 31 and 34 percent of the population in Moreno Valley and Perris, respectively. Children under 15 make up 26 percent of the population of Riverside County and 23 percent of the statewide population. In San Jacinto, this group represented 27 percent of the population, about the same level as the county. Figure ffl-5 Distribution of Population by Age, 2000. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Rive side County Distribution of Population by Age Group Hemet Moreno Valley Perris San Jacinto California ® Under 15 ■ 15-19 0 20-24 0 25-29 ■ 30-34 • 35-39 ■ 40-44 0 45-54 • 55-64 ® 65-74 ❑ 75+ Source: US Census 2000; E:onorrcs Research Associates, 2005. Economics Research Associates Project No. 16070 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor III-8 ERA Educational Aetadntnent In terms of educational attainment, the jurisdictions of Western Riverside County vary from one another. Countywide, about 50 percent of residents 25 or over had a high school diploma or equivalent, compared to 43 percent in the state. Nearly 27 percent of the state's adults had a bachelor's degree or advanced degree, compared to about 17 percent in Riverside County. The individual communities profiled below showed similar patterns to the county. The percentage of adult residents over 25 with a bachelor's degree or higher ranged from 7 percent in Perris to 14 percent in Moreno Valley. In San Jacinto, about 9 percent of the population over 25 had a bachelor's degree or further education. Figure 111-6 Educational Attainment by Jurisdiction, 2000 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Rive side County Educational Attainment by Jurisdiction Hemet Moreno Valley Parris San Jacinto California ® No schooling ■ Less than 9th 0 9th to 12th 0 High school diploma • Some college ® AA • BA 0 Prof/ masters Source: US Census 2000; Economics Research Associates, 2005. However, recent trends indicate that the educational level of residents in Western Riverside County is rising, as middle -income households from coastal counties (Orange County, San Diego County, and Los Angeles County) relocate into the Inland Empire, due to the lower cost of new housing and expanding employment opportunities in the region. Economics Research Associates Project No. 16070 I➢-9 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor Income Distribution According to the 2000 Census, the various communities cf Riverside County varied in household income distribution. As shown below, Hemet and San Jacinto had a higher percentage of low-income residents than the county of Riverside and the state of California. In 1999, approximately 36 percent of Hemet households and 33 percent of San Jacinto households had incomes under $20,000. By contrast, 21 percent of Riverside County and 20 percent of California households had incomes under $20,000. Similarly, Hemet and San Jacinto had a smaller percentage of wealthy households earning over $100,000, at three and four percent, respectively, compared to the county (12 percent). Figure Il%I-7. Distribution of Household Income by Jurisdiction, 1999 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Riverside County Distribution of Household Income by Jurisdiction Hemet Moreno Valley Perris San Jacinto California ® Less than $10,000 ® $10,000 - $19,999 ❑ $20,000 - $29,999 ❑ $30,000 - $39,999 ■ $40,000 - $49,999 at $50,000 - $59,999 ® $60,000 - $74,999 0$75,000 - $99,999 ■ $100,000 - $149,999 ® $150,000 + Source: US Census 2000; Economics Research Associates, 2005. Median household income was significantly lower in Hemet and San Jacinto than in neighboring Moreno Valley and in the overall county. In 1999, median household income in Hemet was $26,800 and $30,600 in San Jacinto, compared to $42,900 in Riverside County. The median household income in Moreno Valley was higher than the county's at $47,400, and very close to the state median of $47,500. Economics Research Associates Project No. 16070 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor III-10 Figure 1111-8. Median Household Income by Jurisdiction, 1999. $50,000 $45,000 $40,000 $35,000 $30,300 $25,000 $20,000 $15,000 $10,300 $5,000 S- Riverside County Median Household Income by Jurisdiction Hemet No eno Valley Source: US Census 2000; Economics Research Associates, 2005. Perris San Jacinto California However, with new homes selling in the $300,000 to S400,000 range in the San Jacinto Valley, median household incomes have risen since 2000 and will continue to increase rapidly in the decade ahead. Population Growth Forecasts Forecasts by the Southern California Association of Governments (SCAG) show that the region's rapid growth is expected to continue well into the next 20 years. By 2030, SCAG estimates that Western Riverside County will add another million residents for a total population of 2.4 million, with 400,000 new homes and 470,000 new jobs fueling this growth. The growth rate in Riverside County will outpace San Bernardino, San Diego, Orange County and Los Angeles County from 2000 to 2025. Most of the population increase is forecast to come from domestic migration and high birth rates. In 2003, WRCOG attributed 20 percent of the population growth in the county to natural increase, and 80 percent to net migration. All of the communities within Western Riverside County are expected to see significant growth, with the exception of Norco and Canyon Lake. Economics Research Associates Project No. 16070 III-11 Market Assessment and Economic Development Strategy for the Ramona -Sanderson Corridor r; ATTACHMENT B Key Items from the January 5, 2006 Ramona Expressway/Sanderson Avenue Informational Meeting On Thursday, January 5'b, at the San Jacinto Comrnunity Center, Bill Lee from the Economic Research Associates gave an overview of the final findings of the Ramona Sanderson Market Assessment to stakeholders and property owners in attendance. Representatives from Rosenow Spevacek Group (RSG) attended the meeting to provide information and facilitate the meeting. The main issues raised during the meeting included the following: • Specific location of the Town Center/Civic Center. o Several locations were shown in the Assessment. The actual location is dependent upon City discussion and action. • Alternative Freeway locations, including why was the southern alignment favored? o Mr. Lee noted reasons for recommending the southern alignment, including the existing aqueduct as a barrier and combining physical constraints in one location and providing a physical separation to potential residential uses to the south. • Does the study assumes that land is consolidated when is actually divided into different lots? o The study considered that the area encompasses lots that are owned by different property owners. • Was there a recommended location for the medical facilities? o The Assessment indicated a future need for medical facilities, however, no specific locations were identified. • What type of commercial business does the Study recommend? o The Assessment recommends varying commercial businesses, which could include major and minor retail, power centers, and destination commercial. • Will the General Plan be updated? o The General Plan is in the process of being updated, with Planning Commission hearings scheduled for the end of February. • Does the General Plan include specific land uses? o No, the General Plan identifies the area as "Specific Plan", which would require the development of a specific plan to specify parcel by parcel land - uses. • Are there any new developments taking place within the Study Area? o Yes, the City has continued to process applications for development. • Comments where made that the acreage for commercial and office areas was too aggressive. o Mr. Lee noted that the land uses were projected over a period of time and considering the build out potential for the area. • What would happen if property owners within the Study Area want to develop their land now? o At this time, they could submit an application for processing. • Would the City Council consider rolling the Study into the General Plan? o This would be something that only the City Council could respond. However, since the City has been in the process of updating it's General Plan for approximately five years, at this time, staff would not recommend a delay to accommodate land uses for the area. • What is the difference between Specific Plan, the General Plan, and the Study? o A specific plan would identify parcel specific land uses, infrastructure needs, financing, land use criteria, and processing. The General Plan provides the general land uses on a city-wide basis, as well as, general goals and objectives for the City. The Market Assessment provides an economic analysis and recommendations, specifically for the Ramona/Sanderson Gateway Area. • Should the City Council decide to undergo a Specific Plan for the entire Study Area, how would that process work? o The City would hire a planning firm to conduct the specific plan process. The cost to prepare the plan would need to be determined. • Is the input by property owners within the Study Area in comparable to the findings of the Study? o Mr. Lee indicated that based upon his meetings, the percentage of land uses was in line with what most of the property owners he met with were interested in. • Concerns about how the final alignment of the Ramona Expressway is going to affect property owners. o The City has not decided which alignment would be recommended. • Should a Specific Plan be decided for the entire Study Area how would the City incorporate those property owners that want to hold on to their land? o The specific plan process would include the property owners and provide them an opportunity to comment. The final outcome would be based upon the specific plan process. • A comment was made that the aggressive long term commercial strategy in the Assessment is not in the best interest of property owners that want to develop their land sooner. o The Assessment was conducted to determine the highest and best uses for the City of San Jacinto and not necessarily on a parcel specific basis. • Can property owners negotiate with the City Council the ratios allocated for specific land use in the Study Area? o The Assessment is a document to be used as a guide for future development and therefore, Mr. Lee noted the opportunity for negotiation. ATTACHMENT C Ramona Expressway/Sanderson Avenue Market Asssement November 16, 2005 Stakeholder Meeting Notes Mr. Bill Lee from Economics Research Associates (ERA) presented a summary of his findings included in the Market Assessment and Economic Development Strategy for the Ramona Expressway/Sanderson Avenue. Copies ERA's PowerPoint presentation and the Draft Executive Summary were distributed. The following provides a summary of some of the questions and discussion items: ■ Several questions were posed regarding the methodology of the Assessment. o Mr. Lee provided an overview, based upon the information included in the Study. ■ Does the Commercial percentage include the 3,000 acres that Hemet is annexing? o The general area was taken into consideration in the Study. ■ Does the Assessment project build out? o The Assessment projects out a thirty year period. ■ Town Center discussion, location, negotiation opportunities, dedication of land. o Mr. Lee included several potential sites for a Town Center and he provided an overview of his methodology. Staff noted that the City Council has not discussed a location for a Town Center and that this discussion opens the door. The City has not taken a position on a Town Center location, at this time. ■ ERA recommended the southern Mid -County Parkway alignment — was there a consideration of lost RDA tax increment? o Mr. Lee noted that he believed the benefits outweigh the loss of revenue. The City has not taken a position on the alignment. ■ Economic viability of the land, long-term vs. absorption. o Mr. Lee indicated that in his Assessment, he did take a long term view of the Corridor and potential opportunities. ■ A comment was noted that zoned land doesn't mean that it will ultimately be built. The Assessment references the economics for the area, not specific land use designations. Many property owners expected that there would be some reference to specific land uses. Therefore, they could provide limited comments, since they really did not know the impacts to their specific property. The Stakeholders requested an opportunity to review the Study. Staff concurred with the request. The Assessment would be presented to the City Council after the first of the year. Specific dates were being reviewed. ATTACHMENT D Other general comments, provided to staff on the Assessment. • The amount of commercial included in the Assessment seems higher than the area can support in the short term. o The Assessment projects out development over a thirty-year period. • If the City moves forward with designating land uses, based upon the Assessment and the property owners must hold their property, how will the City compensate them? o The City, as part of its normal business, identifies land uses in the form of Zoning and the General Plan, based upon the needs of the City. The City does not provide compensation for properties being held for future development. • The property owner that owns the property adjacent to the Mobil Station requests a commercial designation. • If the City determines a specific plan is the process to follow, who will pay for preparation of the plan? o The City Council will consider financial altematives. • Will applications in process continue to be processed? o The City Council has not indicated a hold on development applications. The City is currently processing development applications within the Corridor. 1 ATTACHMENT E Real Estate Research and Consultants for aver 30 years January 20, 2006 Honorable City Council City of San Jacinto c/o Mary E. Lanier ROSENOW SPEVACEK GROUP, INC. 309 West Fourth Street Santa Ana, CA 92701 RE: ERA REPORT RAMONA EXPRESSWAY/SANDERSON AVENUE CORRIDOR Dear Lady and Gentlemen: The following letter summarizes a review of the Economics Research Associates (ERA) report, which was performed pursuant to a contract awarded to ERA by the City of San Jacinto, regarding the Ramona -Sanderson Corridor. The review was based on the more than 30 years of experience of our firm and my personal experience over a similar period in conducting real estate -related research and consulting throughout the area. For your reference, attached to this letter is a copy of my professional resume. In preparation of this analysis, we have read the ERA report, analyzed its methodology and conclusions, and compared those conclusions to the ones in a report prepared by Market Profiles (MP) in 2005 on the same subject. ERA estimates a total of 1,700 acres in their study area, while MP's report was based on a 1,400-acre total. The ERA report is organized into seven sections, including an Introduction (Section I), Executive Summary and Recommendations (Section II) and Economic/Demographic Trends (Section III). The remaining four sections address each of the potential land use elements, with four of the five sections (IV, V, VI and VII) presenting detailed statistics - based analyses of demand for non-residential uses. The Residential demand section (IV) is presented as an "overview", based largely on summary statistical data that does not address the dynamics of the market that typically are found through primary research. The most significant findings of the ERA report are contained in Section II (Executive Summary and Recommendations). In that section, ERA presents its recommendations for allocations of land to various uses, including commercial, civic, transportation and flood control, and residential. In addition, Section II contains an extensive analysis of the Civic facilities, as well as Transportation and Flood Control and Community Center that the city requires. A portion of Section II recommends strategies for "negotiations with major land owners" 200North Tustin Avenue, Suite 102, Santa Ana, Ca. 92705 (774) 546-3814 Fax (714) 546-0953 Market Profiles of California and essentially says that residential entitlements should be conditioned on the dedication of large areas of land for future commercial and civic needs of the area. Following are key observations regarding the ERA recommendations. ❑ Table 11-1 in the ERA report shows that there is total projectable demand (based on their 2025 mid -point forecast) for 473 acres' of "Commercial and Civic Uses." At that point, ERA states that the city's population will grow to nearly 90,000, although "additional growth" is expected after 2025. ❑ Apparently on the basis of this "additional growth", ERA projects an additional 297 acres of need for non-residential uses in the Gateway area, and thus recommends that a total of 770 acres (45 percent of the 1,700-acre total) be reserved for future development of non-residential uses. ❑ In addition to the 770 acres of non-residential uses, ERA "assumes" an additional 500 acres for "transportation or other infrastructure and open space systems," leaving just 430 acres (25 percent) for residential development. In comparison, the MP report allocated approximately 990 acres (71 percent of the study area) to residential uses across a range of densities. While the ERA report presents a great deal of statistical background, it appears that the findings and recommendations are based more on City -directed policy considerations than on a true demand -based analysis of the area. Further, the ERA recommendations ignore certain planning principles that typically govem the placement of various land use elements. ❑ The policy goals (characterized as "economic development objectives") are contained in Section I, and it appears that they are the basis for ERA's heavy emphasis on providing for "retail goods and services .. jobs ... tax revenues ... and creating a community core", rather than providing for the documented market -based needs of the community for housing. In fact, ERA says in its own statement (on page IV-5) that : 'The issue in the Ramona Sanderson Corridor is the risk [emphasis added] of strong single-family demand pre-empting other land uses important to the community's future in terms of jobs, taxes and a unique sense of place." ❑ The projected acreages for non-residential uses appear to be totally policy -directed (rather than market -based), even in the context of ERA's own demand projections. As the report states (Table 11-1), by 2025 there could be demand for up to 473 acres of non-residential uses, with an additional 293 acres reserved for "future uses." This is an increase of 63 ' Excluding from the calculation 150 acres for uses apparently not anticipated over the next 20 years (i.e., Medical Campus, Town Center and Community Center). Page 2 1/20/2006 Market Profiles of California percent of acreage in such uses, even though ERA implies that additional household growth in the area might be just 25 to 30 percent2. 0 By placing the commercial uses at the northernmost end of San Jacinto Valley (at the base of foothills), it creates a trade area for those businesses (particularly the retail ones) that is semi -circular in shape (rather than the typical circle), due to the largely undevelopable state of most of the land to the north of the plan area. Thus, the businesses that ERA expects to attract must be willing to agree that such a plan can draw from an area to the south (probably extending into Hemet and Menifee) and possibly west (into Romoland and Penis), wide enough to be able to justify their locating within the study area. 0 Given that there will be significant new commercial activity built throughout the area (including well in excess of 1 million additional square feet along the better -positioned 215 Corridor), the prospects for locating significant numbers of retailers at the northern extremity of the area are difficult, at least in the time frame that ERA suggests. Retailers have demonstrated a strong preference to locate near major transportation corridors, and — although the subject area will be at the intersection of two major traffic arteries — the 215 Corridor will carry significantly more traffic than either of the improved roadways. 0 At typical planning parameters (in FAR terms), ERA is calling for land that will allow for development of more than 4 million square feet of commercial retail space3 within the study area. ERA reports that San Jacinto's share of Riverside County's taxable retail sales in 2003 was just 0.3 percent. The projected 4 million square feet of new space is equal to approximately 20 percent of all current retail space in the two -county Inland Empire area, and is about twice the total in the world -class South Coast Plaza shopping center in Orange County. We appreciate the opportunity to offer these comments, and would be pleased to expand on them as requested. Thank you for your interest. Sincerely, MARKET PROFILES INC. Robert Reicher Principal 2 This figure is based on ERA's projected expanded areas for such population -based services as Retail Commercial and Office Business Park, as summarized in Table 11-1. 3 To put that into perspective, in the entire Inland Empire (all of Riverside and San Bernardino Counties), ERA estimates that there currently is a total of 85 million square feet of retail space, and that a total of about 4.2 million square feet of retail space was built throughout Inland Empire during 2004. Page 3 1/20/2006 ROBERT REICHER PRINCIPAL Mr. Reicher has been active in the real estate development industry since 1970. Prior to joining Market Profiles, he has held positions as Manager -in -Charge of real estate consulting for Deloitte & Touche, as well as Principal with Economics Research Associates, Director of Operations for The Goodkin Group and Director of Research for a major multi -market developer/builder. Mr. Reicher has been involved in the planning, processing, development, building and marketing of major residential, resort and commercial/mixed use developments, ranging from free-standing residential income properties to large-scale, multi -use resorts and planned communities across the U.S., as well as in Canada, Japan and other Pacific Rim countries. Among Mr. Reicher's areas of experience and expertise are the following: • Market and financial feasibility studies of residential, retaillcommercial, office, industrial, resort/hotel, and mixed use projects. • Creation of development, advertising and marketing plans for planned community and resort projects at various stages of project life cycle • Consumer and trade focus group studies and surveys • Acquisition and disposition analysis for major commercial and industrial property transactions and 1031 exchanges • Preparation of project pro formas and other due diligence materials for debt and equity offerings or transaction decision -making • Creation of marketing plans for workout of troubled projects • Strategic business plans for start-up entities and ongoing operations or restructuring of existing companies • Structuring and negotiation of major property purchase and financing packages • Expert witness and consulting for complex commercial litigation involving office, hotel, resort, and retail properties • Valuation of undeveloped land and developed commercial properties • Fiscal impact and economic impact analysis of proposed developments • Public/private development programs for local governments Mr. Reicher holds a BS degree from University of California Los Angeles and MBA in Marketing from University of Southern California. His expertise in residential and commercial real estate has been utilized in an expert witness capacity before various boards, commissions and courts. He also is a licensed Real Estate Broker in the State of California. 0,0 Market Profiles February 7, 2006 COUNCIL MEETING DATE FEBRUARY 16, 2006 ATTACHMENT F MARKET ASSESSMENT AND ECONOMIC DEVELOPMENT STRATEGIES FOR THE RAMONA-SANDERSON CORRIDOR Dear Sir or Madam: The City Council will consider action on the completed Market Assessment and Economic Development Strategies, prepared by Economics Research Associates (ERA) for the Ramona/Sanderson Corridor, during their regularly scheduled meeting on February 16, 2006 City Council Meeting at 7:00 p.m. at: City of San Jacinto City Council Meeting San Jacinto Unified School District Board Room 2045 South San Jacinto Avenue San Jacinto, CA 92583 The Staff Report, with attachments, is anticipated to be available on Friday afternoon, February 10, 2006. Those on the email list will be sent an electronic copy. If you would like a copy sent or emailed, please contact Zoe Urrutia at (714) 541-4585 extension 126. Please feel free to contact me at (949) 701-1606, if you have any questions, or need additional information. Sincerely, ROSENOW SPEVACEK GROUP Mary E. Lanier Senior Associate February 16, 2006 TO: The Honorable Mayor and Members of the City Council FROM: Dorothy L. Chouinard, City Clerk SUBJECT: Local Appointments List / Agency / Committee / Subcommittee / Appointments RECOMMENDATION: 1) Consider Mayor's selection to Local Appointments List with confirmation by Council for the outside agencies. 2) Consider Mayor's selection of Standing Committees, and absent unanimous consent, approve by majority vote the desired slate. BACKGROUND: Subcommittee and agency representatives' appointments are made annually. Historically, at the second meeting in December the mayoral appointments are made for 1) representatives to other agencies; and 2) City Council subcommittees. December's second meeting was adjourned to January 5, 2005 and subsequently, the appointments agenda item was continued until a full council would be present. DISCUSSION: In the "City of San Jacinto City Council Orientation Handbook"the Council Committees are Planning Commission, Community Preservation Committee, Estudillo Mansion Committee, Accessibility Appeals Board and Cultural Advisory Commission, which are appointments made during different times of the year. The subcommittees' appointments are made annually, unless a vacancy occurs. It is not unusual for the subcommittees to change on an annual basis as needs arise. BUDGETARY IMPACT: None ATTACHMENTS: None Approvals City Manager:_ Finance Director: ft- r, i Page 1 of 1 AGENDA REGULAR MEETING of the SAN JACINTO REDEVELOPMENT AGENCY of the CI OF SAN JACINTO FEBRUARY 16, 2006 mediately Following the Regular City Council Meeting San Jacinto Unified School District Board. Room 2045 South San Jacinto Avenue, San Jacinto, California ORGANIZATION 1 1 CaII to Order 1 2 Roll Call PUBLIC COMMENTS Now is the time for the public to address the Agency on any, subject not listed on the agenda. Any person may address the Agency on any subject pertaining to Redevelopment Agency business not listed on the Agenda during this portion of the Meeting. A limitation of three (3) minutes shall be set for each person desiring to address the Agency Directors. CONSENT CALENDAR The matterslisted under Consent. Calendar are considered routine and will be enacted by one motion by Agency Members in the form listed: There will be no separate discussion on these items prior to the motion unless members of the Redevelopment Agency, staff or the public requests a specified item be removed and/or discussed. 3:1 June 30, 2004 Regular Meeting Minutes / Approve / City Clerk 3.2 November 4, 2004 Special Meeting Minutes / Approve /City Clerk February 2, 2006 Regular Meeting Minutes / Approve / City Clerk PUBLIC HEARING None Redevelopment Agency Agenda Februsrjt 16; 2006 Paoe 2 of 2 CITY DEPARTMENTS 5.1. Market Assessment and Economic Development; Strategies for the Ramona Expressway / Sanderson Gateway Area/ Receive and File, Direct staff to solicit proposals for the preparation of a specific plan to identify lands uses, infrastructure, design and, financing; Use said document as a guide for the development of a specific plan for said area, Direct staff to identify a funding mechanism to finance the preparation of the specific plan and include the stakeholders during the process of preparing the specific plan / Community Development Director and Consultant FY 2005-06 RDA Mid —Year Budget Adjustments / Approve and Appropriate $54,165 in Expenditures/ Finance Director CHAIRPERSON / MEMBER REPORTS / DISCUSSIONS None OPEN SESSION ANNOUNCEMENTS CLOSED SESSION one ADJOURNMENT It is the intention of the City of San Jacinto to comply with the Americans 'with Disabilities Act (ADA) in all respects: lf, as an attendee or a participant at this meeting, or in. Meeting's on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in` every reasonable manner. Please contact City Hall at (951) --- ___-, at lea,st 48-hours prior to the meeting to inform us - your articular needs and to determine if accommodation is feasible. If you challenge any action of the Redevelopment Agency Board in court, you may be limited to raising only those issues you or someone raised at the public hearing described in"this notice, or in written correspondence delivered to the Redevelopment Agency (c/o Redevelopment Secretary) at, or prior to; the public hearing: Z; Qorot(ry L. C iouinard, Secretary of the San Jacinto XedevefopmentAgency, dd fierefy cent that Z caused to be posted the foregeting agenda the 100r day of fe6ruciry, 2006; as required dy Ida). cDorotliy £ Chouineird, figency Secreta GULAR'MEET esent:: `,; Jim'Ayres Stubblefield bsent :. None : . =ebruary 2, 200.6 Regular Meeting Minutes /Approve 1 Gity Glee t Ritchie / Ken Shaw) moved to;approve 3 1 °and 3 3 :as p Jlotion carnet 4Ia with Chairman Stubblefield abstaining (abseil itchie res,:Btaydosz`Ritcle; Shaw; S:#ubblefiel� pen staii Market Assessment and Economic Development Strategies:- for the Ramona ; Expressway / ;Sanderson Gateway Area / Receive: and Fite, Direct staff. to solicit proposals for the preparation of a specific plan to identify lands uses;. Infrastructure, design;and fir ancing; Ilse ;said doci imen# as a guide forthe development of a specific plan;forsaid PrePpireCt staffto: identify: a funding mechanism to finance, the, preparation of the specific plan°and include the;.`. stakeholders during the process of preparing the specific plan /community Dev elopment Director and Consultant FY 2005-06 RDA Mid fear Budget Adjustments /Approve and Appropriate. $54;1651n Expenditures ! Finance. Director ; os /Ayres) moved to approve FY2005 06:Mid Year BudgetAdjustmenfis including appropriation of .$54, 1'65 / Motion carved uydos,:'Ri#chie Shaw, Stubblefield: one; orie , one Redevelopment Agency Minutes February 16, 2006 Page 3of3 8. ADJOURNMENT With no further business coming before the Redevelopment Agency, Chairman Stubblefield adjourned the meeting at 10:10 p.m. ATTEST: Dorothy L. Chouinard, Agency Secretary City of San Jacinto By Dale Stubblefield, Chairman Approved as read Approved as amended MINUTES REGULAR MEETING OF THE SAN J•ACI TO CI COJNC L FEBRUARY 16, 2006, 7:00 p.m. San Jacinto Unified School District Board Room 2045 South San Jacinto Avenue, San Jacinto, California ORGANIZATION 1.1 Call to Order Mayor Dale Stubblefield called the Regular Meeting of the San Jacinto City Council to order at 7:03 p.m. 1.2 Roll CaII Present: Jim Ayres, Chris Carlson Buydos, Robert Ritchie, Ken Shaw Dale Stubblefield Absent: None 1.3 Invocation Rev. Bob Sauter gave the invocation. 1,4 Pledge of Allegiance Council Member Jim Ayres led the Pledge of Allegiance. 1.5 Special Presentations 1.5.1 Business Spotlight of the Month / Bedrock Ready Mix / Economic Development Specialist 1.5.2 Recognition of Public Works Employees Alex Garcia and Daniel Astorga for acting quickly to save property and people from a serious fire on December 27, 2005 2. PUBLIC COMMENTS: Randy Record, 890 N Lyon Avenue, San Jacinto, spoke on 5.1 and 5.3 out of order. City Council Action Minutes February 16, 2006 Paqe 2 of 9 3. CONSENT CALENDAR 3.1 Warrants at 92/16/06 / Approve / Finance Director 3.2 June 30, 2004 Special Meeting Minutes / Approve / City Clerk 3.3 Treasurer's Report at September 2005 / Receive and File / Finance Director 3.4 Treasurer's Report at October 2005 / Receive and File / Finance Director 3.5 Treasurer's Report at November 2005 / Receive and File / Finance Director 3.6 Notice of Completion — Lake Park Well and Main Street Waterline / Approve / City Engineer 3.7 Idyllwild Drive Sidewalks — Project No. 04-076 / Approve and Adopt plans and specification and authorize City Clerk to proceed with bid advertisement subject to Riverside County EDA approval / City Engineer 3.8 Storm Drain Easement — Accept 20' Storm Drain Easement from Thomas E Mitchell, William B Mitchell, J Meri McKnight and Kay M McKnight / Approve acceptance of storm drain easement between Ramona Expressway and Ramona Boulevard east of Potter Road subject to satisfactory completion of storm drain improvements / City Engineer 3.9 Client Conflict Waiver Letter re: BB&K representation RCA (Riverside County Regional Conservation Authority, a Joint Powers Authority) / Approve and Authorize City Manager to execute waiver letter / City Attorney 3.10 Resolution No. 2861 / A Resolution objecting to the public sale of tax -defaulted property and agreeing to the purchase of said property / Approve and Adopt / City Attorney and Finance Director 3.11 Ordinance No. 06-03 / An Ordinance establishing procedure for the processing of vesting tentative maps / Approve introduction and first reading of Ordinance No. 06-03 and by further motion read by title only: An Ordinance of the City of San Jacinto, California, Amending Section 16.14.080, of the San Jacinto Municipal Code City Council Action Minutes February 16, 2006 Page 3 of 9 concerning Vesting Tentative Maps / City Attorney and Community Development Director 3.12 Conditional Use Permit 12-05 - Applicant: Russell Rumansoff dba Herron & Rumansoff Architects, Inc, 530 S Johns Place, Hemet, CA 92543 / Ratify Planning Commission's decision based on the Findings of Fact and Conditions of Approval / Community Development Director M/S/C (Ayres / Buydos) moved to approve the Consent Calendar as presented. Motion carried 5/0. Ayes: Ayres, Buydos, Ritchie, S aw, Stubblefield Nays: None Absent: None Abstain: None 4. PUBLIC HEARING 4.1 Resolution No. 2 862 / A Resolution certifying the results of an election and adding property commonly known as APN No. 431-212- 012) Community Facilities District (CFD) No. 2003-1 — Annexation No. 26 for police and fire services / Approve and Adopt / Special Tax Consultant and City Attorney Mayor Stubblefield opened the Public Hearing at 7:15 p.m. No one was present to support or oppose Resolution No. 2862. City Clerk Chouinard reported no written comments were received and certified the election, noting the majority is in favor of the annexation and assessment, Mayor Stubblefield closed the Public Hearing at 7:16 p.m. M/S/C (Ayres / Buydos) moved to approve and adopt Resolution No. 2862 as presented. Motion carried 5/0. Ayes: Ayres, Buydos, Ritchie, Shaw, Stubblefield Nays: None Absent: None Abstain: None 4.2 Ordinance No. 06-04 / Zoning Ordinance Amendment regarding Floor Area Ration / Approve introduction and first reading of Ordinance 06- 04 and by further motion read by title only: City Council Action Minutes February 16, 2006 Page 4 of 9 An Ordinance of the City Council of the City of San Jacinto. California, Approving a Zone Text Amendment to Modify the Text of Article 4.04 Pertaining to Residential Development Standards of the San Jacinto Zoning Ordinance, Ordinance 340 / Community Development Director Mayor Stubblefield opened the Public Hearing at 7:18 p.m. No one was present to support or oppose Resolution No. 2862. City Clerk Chouinard reported no written comments were received. Mayor Stubblefield closed the Public Hearing at 7:19 p.m. M/S/C (Buydos / Ritchie) moved to approve introduction and first reading of Ordinance No. 06-04 as presented and to read title only.. Motion carried 5/0. Ayes: Ayres, Buydos, Ritchie, Shaw, Stubblefiei Nays: None Absent: None Abstain: None 4.3 Resolution No. 2863 / A Resolution Annexing Territory aka KB Homes Coastal Inc — Tract Nos. 30033, 30034, 30035, 30036 and 30084 into Assessment District No. 2003-01 (AD 2003-1) Annexation No. 17 into Road, Street and Highway Maintenance AD 2003-1; and confirming the levy of assessments therein / Approve and Adopt / Special Tax Consultant and City Attorney Mayor Stubblefield opened the Public Hearing at 7:19 p.m. No one was present to support or oppose Resolution No. 2862. City Clerk Chouinard reported no written comments were received and certified the election, noting the majority is in favor of the annexation and assessment, Mayor Stubblefield closed the Public Hearing at 7:20 p.m. M/S/C (Ayres / Ritchie) moved to approve and adopt Resolution No. 2863 as presented. Motion carried 5/0. Ayes: Ayres, Buydos, Ritchie, Shaw, Stubblefield Nays: None Absent: None Abstain: None City Council Action Minutes February 16, 2006 Pape 5of0 STAFF REPORTS 5 I WRCOG — TUMF presentation / Rick Bishop, Executive Dsrectc Rick Bishop and Ruthann Taylor Berger presenters Request by presenters to continue: Council unanimously concurrec.. 5.2 Market Assessment and Economic Development Strategies for the Ramona Expressway if Sanderson Corridor "Gateway Area Receive and File; Direct staff to solicit proposals for the preparation of a specific plan to identify lands uses, infrastructure, design and financing; Use said document as a guide for the development of a specific plan for said area; Direct staff to identify a funding mechanism to finance the preparation of the specific plan and include the stakeholders during the process of preparing the specific plan / Community Development Director and Consultant Eric Flodine, representing FORMA. 7101 Magnolia Ave. Suite A, Riverside Boyd Martin, representing Market Profiles, 200 N Tustin Avenue, Santa Ana John Shrurnusay, representing Steve Holgate, Jeff Weber and Distinguished Homes, 130 Newport Center Drive, Suite 130, Newport Beach John Kain, Urban Crossroads, Inc, 41 Coporate Park, #300, Irvine Tim Mulrenan, representing the Baltan family, 5821 Bellfield Lane, Huntington Beach Jeff Weber, representing Distinguished Homes, 160 S. Old Springs Road, Anaheim Hills Dan Powell, respresenting Ramona Business Park, LLC, 12250 E Camino, San Diego Bill Lee — ERA - consultant M/S/C (Buydos / Ritchie) moved to receive and file report and directed staff to meet with individual stakeholders and property owners to ascertain their preferred land use: Ayes: Ayres, Buydos, Ritchie, Shaw, Stubblefield Nays: None Absent: None Abstain: None City Council Action Minutes February 16, 2006 Page 6 of 9 5.3 Local Appointments List / 1) Consider Mayor's selection to Local Appointments List with confirmation by CounciE for the outside agencies and 2) Consider Mayor's selection of Standing Committees, and absent unanimous consent, approve by majority vote the desired slate / City Clerk M/S/C (Ayres i Shaw) moved to make the following appointments: Land Use and Development Committee (includes General Plan, Joint Committee with Planning Commissioners for development Issues) CDBG Review Recycling & Refuse San Jacinto Levees Economic Development (includes staff, covers VEDC) Historic Preservation Public Safety (includes Riverside County Disaster Committee; and San Jacinto Disaster Response Committee) Chamber Liaison Transportation (includes Hwy 79, RCTC & RTA) Franchises Tribal Council Issues WRCOG / RCA Buydos, Shaw Stubblefield, Shaw Shaw, Ritchie Ayres, Shaw Shaw, Buydos Ritchie, Shaw Ayres, Stubblefield Stubblefield, City Manager, Police Chief, Finance Director, Hults Community Development Director, Battalion Fire Chief Shaw, City Manager RTA— Stubblefield, Ayres RCTC — Ayres, Buydos All others (? Ayres, Buydos) Ritchie / Stubblefield Buydos / Ritchie Buydos / Ayres City Council Action Minutes February 16, 200E Page 7 of 9 Water (includes Ground Water Association, EMWD Plaraning Task Force) Special Events (4th of July Parade; etc LLMD Library Ramona Pageant Motion carried 3/2. ydos, S Stubblefield, Ayres Stubblefield,, Shaw Ritchie Ritchie Ayes: Ayres, Shaw, Stubblefield Nays: Buydos, Ritchie Absent: None Abstain: None 5.4 Resolution No. 2864 / A Resolution to establish a new local agency money market account / City Treasurer and Finance Director M/S/C (Stubblefield / Shaw) moved to approve and adopt Resolution 2864 as presented. Motion carried 4/0. Ayes: Buydos, Ritchie, Shaw, Stubblefield Nays: None Absent: Ayres Abstain: None 5.5 Legislative Update / Approve letter for distribution to the City's legislative caucuses at the state and federal levels regarding telecommunications / Authorize Mayor to execute letter / City Manager MIS/C (Shaw / Stubblefield) moved to approve as presented. Motion carried 4/0 Ayes: Buydos, Ritchie, Shaw, Stubblefield Nays: None Absent: Ayres City Council Action Minutes February 16, 2006 Page 8 of 9 Abstain: None 5.6 Mount San Jacinto Community College Regional Learning Center / Approve letter of support and uthorize City Manager to execute letter City Manager M/S/C (Bitydos I None) motioned to table: Died for lack of a second. No action taken. 5.7 Request to use temporary sewage holding tank T22665 I Deny Buie Communities request / City Engineer Rod Ballard, representing CTE / Buie, 1441 Montle! Road, Escondido MiS/C (Buydos / Shaw) moved to deny temporary sewage holding tank for T 22665. Motion carried 5/0. Ayes: Ayres, Buydos, Ritchie, Shaw, Stubblefield Nays: None Absent: None Abstain: None 5.8 FY 2005-06 Mid -year Budget Adjustments and / Approve and Appropriate changes of $,1,498,369 in Expenditures and estimated Revenues of $1,139,715 / Finance Director M/S/C (Buydos / Ayres) moved to approve as presented. Motion carried 5/0. Ayes: Ayres, Buydos, Ritchie, Shaw, Stubblefield Nays: None Absent: None Abstain: None 5.9 Valley Economic Development Council Planning Retreat / Jeff Ballinger, Chairman of the Board Mayor Stubblefield recessed the regular meeting to consider the Redevelopment Agency Agenda at 10:09 p.m. and reconvened at 10:10 p.m. 6. MAYOR I C UNC1L MEIVBER REPORTS / 01SCUSSiONS City Council Action Minutes February 16, 2006 Page 9 of 9 6.1 Agency aid/or Subcommittee Reports I Receive and File I City Clerk Council Members gave their reports. Mayor Stubblefield recessed the Regular Meeting at 10:15 p.m. and reconvened in Closed Session at 10:16 p.m. 7". CLOSED SESSION 7.1 CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: One (1) or more cases No reportable action. 8. ADJOURNMENT With no further business before the Council, Mayor Stubblefield adjourned the meeting at 10:45 p.m. ATTEST: Dorothy L. Chouinard, City Clerk City of San Jacinto By Dale Stubblefield, Mayor Approved as read Approved as amended