Case Study – Otay International Center

Case Study

Multi-Jurisdictional Entitlement and Infrastructure Expansion Program
Client: Otay International Center
Background: HechtSolberg was asked by the owners of the Otay International Center (OIC) to help manage the very complex sale of property to the federal government for a second international border crossing. They were also asked to help entitle and develop the remaining 400 acres that surrounded the second border crossing.

Challenge: The land to be developed was within the unincorporated lands of the County of San Diego (County). However, the City of San Diego (City) was interested in the 400 acres and thousands of adjoining acres within the larger Otay Mesa area. The City also maintained that it was the best provider of essential municipal services to the property and future border crossing, although several other nearby cities and agencies were also interested in providing these services.

Solution: HechtSolberg processed land use entitlements in both the County and the City. These parallel processes eventually produced a negotiated understanding that the land and its adjoining acreage would be annexed into the City. HechtSolberg also structured a five-party agreement among the City of San Diego, the County of San Diego, the City of Chula Vista, the Otay Water District and the American Water District to provide sewer service to the 400 acres and the larger Otay Mesa area. In addition, HechtSolberg structured a reimbursement agreement between OIC and the City of San Diego for construction of a key backbone sewer system.

To protect OIC’s vested rights to proceed with additional development in the area, HechtSolberg also drafted a 20-year Development Agreement which ensured vested rights in exchange for an extensive list of infrastructure and other improvements to be provided by OIC.