Certain basic financing needs have been identified which include improvements to traffic/circulation, drainage, and utility infrastructure. Other specific capital improvements include streetscape enhancement, community facilities, and community development programs.
The following table summarizes an initial estimate of those capital needs and costs that apply within the Downtown Encinitas Specific Plan area. These are preliminary cost estimates based on '93 dollars. Whenever possible, projects should be coordinated and implemented at the same time to reduce cost (i.e. coordinating the undergrounding of utilities with street improvements). (NOTE: The improvement projects are listed in rank order. If possible, these projects should be implemented in this order.)
Table 5
Improvement Projects
1. Streetscape Amenities
 
Downtown Entry signs
$4,500
Moonlight Beach Entry (at B & First Streets)
71,000
Streetscape - landscape, enhanced paving, street improvements, & street furniture:
 
Vulcan Avenue
75,000
Second Street
118,750
First Street
356,250
D Street
390,000
E Street
390,000
Special street lights on First Street
321,500
Subtotal:
1,727,000
2. Community Development
 
Facade Grant Program (First & Second Streets)
960,500
Subtotal:
960,500
3. Undergrounding Utilities*
 
Electric
$2,300,000
Cable
1,375,000
Telephone
1,325,000
Subtotal:
5,000,000
4. Street Infrastructure
 
Street Improvements - curb/gutter, sidewalks, paving, striping, etc.
204,000
Traffic signals/Stop
75,000
Alley improvements
772,800
Subtotal:
1,051,800
5. Storm Drainage System
 
Increased-capacity of main, "F" Street to Cottonwood Creek
38,000
Redirected drainage "E" Street to Coastal Bluff
30,000
Subtotal:
68,000
6. Sewer System
 
Main sleeve inserts/Manhole Rehabilitation
54,000
"B" Street pump station Spill-protection storage
300,000
Subtotal:
354,000
7. Community Facilities
 
Vista Point (west end F Street)
100,000
Mini Park/Vista Point (west end J Street)
110,000
Moonlight Beach Master Plan
4,378,000
Expand library facilities (Encinitas branch)
1,680,000
Subtotal:
6,268,000
Total Preliminary Cost Estimate:
$15,429,300
*
Preliminary estimates based on unit cost of $125/linear foot. Actual costs will depend on engineering calculations at the time of construction; overall cost savings may be achieved by combining undergrounding and other improvement efforts.
 
There are other Citywide programs, which either currently exist or will be established. These programs, which are listed below, will benefit the specific plan area as well as the entire city. Cost estimates for these programs were not currently available and beyond the scope of the specific plan.
 
Beach Sand Nourishment Program
 
Seismic Retro-Fit Program
 
Civic Center
A detailed public facility financing program must be prepared in order to successfully implement the improvements and programs proposed by the Downtown Encinitas Specific Plan. The financing program should analyze a series of methods to finance infrastructure and other improvements, recommend preferred alternatives, and develop a process for enacting financing methods.
The following is a summary of possible methods for financing the specific plan improvements identified in Table 5. This listing is not intended to exclude any other available funding source.
SPECIAL ASSESSMENT DISTRICTS (1911, 1913, 1915 ACT)
California law provides procedures to levy assessments against benefitting properties and issue tax exempt bonds to finance public facilities and infrastructure improvements. Assessment districts, also known as improvement districts, are initiated by the legislative body (e.g. city), subject to majority protest of property owners or registered voters. Assessments are distributed in proportion to the benefits received by each property, and represent a lien against property. The assessments are fixed dollar amounts, and may be prepaid. Only improvements with property-specific benefits (e.g. roads, and sewer and water improvements) may be financed with assessments.
AREA OF BENEFIT FEES
Area of benefit fees may be enacted by the legislative body (i.e. city) through adoption of an ordinance, without voter approval. The fee must be directly related to the benefit received. It does not create a lien against property, but must be paid in full as a condition of approval. Its principle use is for encumbering properties that will not voluntarily enter into an assessment of CFD, so that they pay their fair share at the time they are ready to be developed. Proceeds may be used to reimburse property owners who pay up-front cost for facilities benefitting other properties. Benefitting properties may be given the option to finance the fees by entering into an assessment district (1913/1911 Act) or Mello-Roos CFD).
AB 2926 SCHOOL IMPACT FEES
AB 2926 was enacted in 1986 and governs the imposition of school impact fees on new development. The Bill authorizes school districts to place fees or other requirements on developers to finance the construction of temporary or permanent school facilities. The residential rate for FY 1993-94 is $1.65 per square foot of habitable space. School impact fees also may be levied on commercial projects which generate the need for new school facilities. The commercial rate is presently $.28 per square foot of building area. The school fees often are matched with funding from the State School Building Program.
The school districts have reported that funds generated through AB 2926 fees are inadequate to meet needed capital facility improvements. The public elementary, junior high and senior high schools serving the specific plan area are presently over designed capacity. Alternate financing methods for school facility construction may be necessary.
INFRASTRUCTURE FINANCING DISTRICTS (SB 308)
Authorizes cities to form infrastructure financing districts, in accordance with a prescribed procedure, to finance public capital facilities (including but not limited to arterial streets, transit facilities, drainage and sewer facilities, child care facilities, libraries, and parks/recreational facilities) utilizing a method of tax increment financing, but tax revenues of county offices of education, school districts, or community college districts would be subject to diversion under this bill.
The bill permits a district to only finance the purchase of facilities for which construction has been completed and provides that these facilities need not be physically located within the boundaries of the district. This bill prohibits infrastructure financing districts from overlapping redevelopment project areas. The bill would require any district that constructs dwelling units to set aside not less than 20 percent of these units to increase and improve the city's supply of low- and moderate-income housing available at an affordable housing cost, as defined, to persons of low and moderate income as defined. The bill would require approval by the district's landowners or voters, as specified, of district formation and of bonds to be issued by the district to finance public capital facilities that provide significant benefits to an area larger than the area of the district.
MELLO-ROOS COMMUNITY FACILITIES DISTRICTS
The Mello-Roos Community Facilities Act of 1982 allows for the creation of special districts authorized to levy a special tax and issue tax exempt bonds to finance public facilities and services. A Community Facilities District (CFD) may be initiated by the legislative body or by property owner petition, and must be approved by a 2/3 majority of either property owners or registered voters (if there are more than 12 registered voters living in the area).
Taxes are collected annually with property taxes, an may be prepaid if prepayment provisions are specified in the tax formula. The levy creates a tax lien against the property. There is no requirement that the tax be apportioned on the basis of benefit. Because there is no requirement to show special benefit, Mello-Roos levies may be used to fund improvements of general benefit, such as fire and police facilities, libraries and parks, as well as improvements that benefit specific properties. The provision also allows for the reallocation of cost burdens to alleviate untenable burdens on specific properties.
LANDSCAPING AND LIGHTING DISTRICTS
Landscaping and Lighting Districts (LLD) may be used for installation, maintenance and servicing of landscaping and lighting, through annual assessments on benefiting properties. LLD's also may provide for construction and maintenance of appurtenant features, including curbs, gutters, walls, sidewalks or paving, and irrigation or drainage facilities. They also may be used to fund and maintain parks above normal park standards maintained from general fund revenues.
STATE COMMUNITY REDEVELOPMENT LAW
This Act allows communities to utilize tax increment financing to carry out redevelopment activities, by applying tax increments obtained in the project area to finance planning, administrative, acquisition, and improvement activities. The Act permits a redevelopment agency to finance land acquisition for public purposes, construction of public facilities, such as roads, parks, and sewers, and administrative, legal, planning, and engineering costs related to the project.
The agency could issue bonds to finance project area improvements and administrative cost, and could apply the tax increments derived in the project area to pay the debt service on the bonds. Tax increments are those tax revenues produced in an area in excess of the revenues produced at the time the excess revenues thus produced are used to pay off bonds uses to finance the expenses of the redevelopment process such as administration, planning, acquisition, and construction of public facilities. Current and projected development could provide a substantial revenue base form which to finance major improvements.
SDG&E UNDERGROUNDING FUNDS
Utility companies are required to budget funds each year for undergrounding. These budgets are approved by the Public Utilities Commission and assigned to specific projects in each area based on priorities developed by local government.
COMMUNITY DEVELOPMENT BLOCK GRANTS
These grants issued from the Federal Housing and Urban Development Department (HUD) are available to areas in which at least 50 percent of the households have a low-moderate income.
SURFACE TRANSPORTATION PROGRAM (STP) FUNDS
The passage of the Intermodal Surface Transportation Efficiency Act of 1991 provides $155 billion over six years to strengthen the national transportation system with approximately $3 billion of the funds to be used for "enhancement" projects. Transportation enhancement activities include: pedestrian and bicycle facilities, acquisition of scenic and historic sites, scenic and historic highway programs, landscaping, rehabilitation of historic transportation facilities, preservation of abandoned transportation corridors, archeological planning and research, control and removal of outdoor advertising, and mitigation of water quality impacts from roadway runoff. Funding can be obtained through San Diego Association of Governments (SANDAG) on a regional basis and also directly through the State.
OTHER FUNDING SOURCES
There may be other sources available to finance improvement projects such as special assessment districts, government grants, or various types of bonds not listed above, that may be used to fund improvements.
A. 
Purpose
The purpose of this section is to describe the procedures required for the timely implementation of development within the specific plan area.
A few documents have been prepared and processed concurrently with the adoption of the Downtown Encinitas Specific Plan which include a general plan amendment, zoning map and ordinance amendments, and certification of an environmental impact report (EIR). These documents will form the basic framework to guide future development within the specific plan area.
B. 
Processing and Review
Future development within the specific plan area will involve obtaining the necessary development permits for the division of a parcel of land into two or more parcels; the construction, reconstruction, conversion, structural alteration, relocation, or enlargement of any structure; any mining, excavation, landfill, or land disturbance, and any use or extension of the use of land. City review of these permit applications will insure consistency of the proposed improvements with the design recommendations and development regulations outlined in the specific plan.
The specific plan area shall be developed in accordance with the criteria outlined in this specific plan and accompanying documents and in accordance with other land use and zoning regulations of the City of Encinitas. In cases where discrepancies occur between the specific plan and citywide development standards, the development regulations contained in the Downtown Encinitas Specific Plan shall prevail. All development within the specific plan boundary shall be consistent with the Downtown Encinitas Specific Plan. The development procedures are as follows:
1. 
Development Applications (except Design Review)
Development applications shall be processed according to the procedures indicated in Title 30 of the City's Municipal Code.
2. 
Design Review
Design Review applications shall be processed according to the procedures indicated in Chapter 23.08 of the City's Municipal Code. Also reference Sections 4.1 through 4.4 of the specific plan for additional information on applications subject to or exempt from Design Review.
3. 
Specific Plan Amendments
Amendments to the specific plan shall require a modification to the specific plan maps and/or text shall be subject to the procedures as indicated in Chapter 30.72 of the City's Municipal Code. Amendments to the specific plan also shall be consistent with policies and provisions of the Encinitas General Plan.
4. 
Nonconformities
a. 
A "nonconforming use" is a use that:
i. 
Is not within the scope, either expressly or implicitly, of the land use regulations set forth in this specific plan that announces the purpose, intent, permissible uses, accessory use and prohibited use for the zone in which the particular use is located;
ii. 
Did comply with the zoning restrictions contained in the zoning ordinance in effect at the time the use was created and was lawfully created; and
iii. 
Has not been terminated in accordance with the provisions of the specific plan.
b. 
With the adoption of this Specific Plan, nonconforming uses and structures shall be subject to the following provisions:
i. 
Improvement, alteration or enlargement of nonconforming facilities may be made provided that the facility is made more nearly conforming and its appearance is enhanced. Structures within which nonconforming uses are operated may be modified, so long as the nonconforming use does not thereby increase in its inconsistency with the allowances of this Specific Plan. Such structural modification or expansion shall otherwise be consistent with applicable development standards and provisions of Chapter 30.76 of the Encinitas Municipal Code.
ii. 
Structures within which nonconforming uses are operated, if damaged or completely destroyed by fire or other calamity, shall be allowed to be reconstructed, and the nonconforming use shall be allowed to continue so long as such reconstruction and continuance is otherwise consistent with the provisions of this Specific Plan.
iii. 
Any discontinuance of such nonconforming use or activity for a continuous period of more than 365 consecutive days shall be deemed to constitute an abandonment of any right to continue or maintain such nonconforming facilities and any future use shall conform to the Specific Plan requirements.
c. 
All other nonconformity provisions pursuant Chapter 30.76 of the Encinitas Municipal Code shall apply.