Panel OKs Otay River Valley Project : Fears Raised That Building Will Hurt Fragile Environment

A major project that would open up the environmentally sensitive Otay River valley to development has been approved by the San Diego Planning Commission.

The planning commissioners ordered the development group--one of the partners is Chula Vista City Councilman and state Coastal Commission member David L. Malcolm--to also seek approval of the Coastal Commission before proceeding with the project.

The project calls for development of 131 acres the state has designated as environmentally sensitive, flood-prone and agricultural land where the river flows into San Diego Bay. Regional Coastal Commission staff members said that the coastal group has told them it would not approve piecemeal development of the area and would require a single development plan covering the river valley, from the bay to east of Interstate 5 and up to the boundary of the coastal zone.

The plan to develop the South Bay property was submitted by MKEG Associates, a limited partnership that includes Egger and Ghio Inc., owner of the land for nine years; Patrick Kruer, a San Diego developer, and Malcolm. In addition to holding political offices, Malcolm is a mortgage banker under investigation as the result of an alleged plot to destroy a palatial Mission Hills home, of which he was a part owner, in order to collect $1 million insurance.

Malcolm could not be reached for comment on whether he will disqualify himself from voting on any action the commission takes on the South Bay development proposal.

According to a statement by MKEG Associates, Malcolm has a 25% interest in the partnership to develop the property with a mix of light industrial, commercial and residential buildings.

Kruer, spokesman for the developers, said plans call for construction of an up to 600-foot-wide flood channel, opening up the mouth of the river now blocked by dikes and levees.

Kruer said that Malcolm is a limited partner in MKEG and has no direct say in the project. “His part was merely as a facilitator, getting landowners (Egger-Ghio) and developer (Kruer) together,” Kruer said. “He has no part in the project planning.”

Planning Commission Chairman Ron Roberts said that requests to initiate community planning changes are routinely approved without consideration by the commission of the merits or demerits of the proposal. In past years, Roberts said, “I can think of only one or two projects that have been denied because they were obviously and flagrantly bad planning.”

The proposal is not expected to come before the Coastal Commission until next year.

The property, which lies west of Interstate 5, south of Main Street and within a federally designated 100-year flood plain, presently is designated as a wildlife preserve by the state Department of Fish and Game and zoned for agricultural use in the Otay Mesa-Nestor community plan.

Ruth Schneider, spokeswoman for the Otay-Nestor planning group, said that previous proposals for floodway development along the Otay River have been opposed by the group because “development in the river bottom will simply serve to impede flood waters, forcing them to back up and flood broad areas of residential property.” She said she was “very concerned” that the MKEG project would destroy remaining wildlife habitat in the floodway of the Otay River and prevent development of the flood plain for recreational uses called for in the community plan.

The 131-acre tract is designated as “wildlife habitat” by the DFG, which has requested that a buffer be provided to protect the habitat from proposed development.

A similar environmental issue involving nesting areas of two endangered bird species--the least tern and the light-footed clapper rail--delayed approval of a large Chula Vista bayfront redevelopment project for more than a decade and still stalls construction of a road to a proposed Gunpowder Point hotel site. The Chula Vista project is about a mile to the north of the proposed development.

Malcolm, appointed to the state Coastal Commission early in 1984, has campaigned and voted for the Chula Vista bayfront plan. However, he has reported no property holdings within the bayfront redevelopment area and has received rulings from the state Fair Political Practices Commission that he may participate in discussions and votes on the Chula Vista project.

The MKEG land is adjacent to the Western Salt Co., the only salt-making operation on the West Coast. Western Salt official Ted Hale said that the company has no plans to cease operations and develop its properties but added, “We will be interested in any planning activities which may affect our properties.”

Chris Lal, environmental services official for the DFG, said that the department will be involved in any plans that might destroy “riparian habitat” in the South Bay area. About 95% of natural riparian wildlife habitat already has been destroyed in Southern California, Lal said, “and we are most interested in preserving the remaining natural resources.”

Kruer said he is convinced that the project plans to develop a flood channel would gain approval of both local community planners and state environmental groups, “because this project would solve the major problem--flooding--which has prevented improvement of the area.” Traffic problems that plague Palm Avenue also could be lessened by extension of 19th Street south from Main Street to Palm, he added.

Schneider said, however, that the flooding problems in the Otay Valley, “have benefitted us in a way by preventing overdevelopment of the land and preserving what remains of the green space, the open space remaining.” She said she plans to marshal help from the Sierra Club and other environmental groups to prevent industrialization of the entire area.

“Our community plan calls for preservation of the river valley in open space and agricultural uses and future development of the bayfront in passive recreational uses,” Schneider said. “We feel that it is the best plan for that area.”