Poway EDSP
Task 4.0 - Opportunity Site Analysis
DRAFT
Prepared for:
The City of Poway
Prepared by:
Applied Development Economics, Inc.
255 Ygnacio Valley Road, #200, Walnut Creek, CA 94596 925.934.8712
99 Pacific Street, #200 J, Monterey, CA 93940 831.324.4896
www.adeusa.com
May 5, 2016
A p p l i e d D e v e l o p m e n t E c o n o m i c s , I n c .
TTAABBLLEE OOFF CCOONNTTEENNTTSS
Introduction .............................................................................................................. 1
Methodology for Determining Opportunity Sites .......................................................... 1
Summary of Potential Opportunity Sites .................................................................... 2
Employment Opportunity Sites (E1-E16) ................................................................... 4
Poway Road Commercial-Retail/Mixed Use Sites (Area 4, Sites C1-C36) ...................... 19
Other Commercial Opportunity Sites (C26, C37-C39) ................................................ 25
Recreation/Entertainment Sites .............................................................................. 35
P a g e 1 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
INTRODUCTION
In consultation with City staff and based on data from interviews, previous and current city studies,
ADE identified and evaluated major existing and potential development sites in Poway, with a view to
identifying suitable locations to develop the business opportunities identified in the market analysis.
This analysis mainly addresses employment generating opportunities, as the Poway Rd. Corridor Study
will be evaluating major retail and commercial development opportunities along Poway Rd. The site
analysis utilizes real estate market characteristics of the sites, infrastructure constraints, and other
criteria as outlined below to determine the relative opportunity to the City of Poway.
METHODOLOGY FOR DETERMINING OPPORTUNITY SITES
The analysis provided in this component of the EDSP utilizes the following outline:
1. Focus is primarily on sites for target employment; commercial and mixed use sites are identified
by Poway Rd Corridor Study. Residential is not reviewed, with the exception of potential mixed
use sites in the Poway Rd corridor.
2. Identifies potential supply of vacant, underutilized sites (From Corridor Study, interviews, ADE
research)
3. Surveys market for demand trends favorable for expansion/attraction of uses/development
a. Target employment – identifies key industry clusters and likely business types (from ADE
market and economic analysis)
b. Commercial – identifies sales tax generators to fill leakage; identify hotel demand; identify
entertainment and restaurant demand (relies on Poway Rd Corridor Study, broker/developer
Interviews)
c. Mixed use – identifies key retail/entertainment or employment zones or nodes to support
commercial/residential mix (relies on Poway Rd Corridor Study, broker/developer interviews,
market data research)
d. Identifies current real estate financial and other metrics in market - vacancy rates, rents,
sales, absorption, etc. (From Poway Rd Corridor Study, ADE market data research,
interviews with brokers/developers)
4. Match demand opportunities with potential sites
a. For each opportunity area above, identifies potential industry uses or businesses for specific
vacant or underutilized sites
b. Identifies metrics to ensure market transaction for development is within reasonable range,
i.e., sales price, rents, etc., and where current gaps may exist
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 2
SUMMARY OF POTENTIAL OPPORTUNITY SITES
Provided in Table 4.1 below, is a summary of the potential opportunity sites throughout the
community, and includes key information about each site. The column labeled “Economic Development
Objective” relates to benefits of development of the property toward general economic development
objectives, namely, will it generate jobs, revenue, commercial revitalization, or recreation/community
amenity.
TABLE 4.1
SUMMARY OF POTENTIAL OPPORTUNITY SITES
OPP SITE #
GENERAL
LOCATION CURRENT LAND
USE/ZONING PROPOSED
LAND USE/ZONING ED OBJECTIVE1 ACRES
E1-E2 South Poway Business Park
Vacant – zoned Light Industrial
Business park zoning – Light Industrial
Employment Generation, Business to Business Sales
6.12
E3-E12 South Poway Business Park
Vacant – zoned Light Industrial
Business park zoning – Light Industrial
Employment Generation, Business to Business Sales
7.37
E13 South Poway Business Park – east end
Vacant – zoned Industrial Park – Known as Parkway Summit
Industrial Park zoning; potential for secured facility
Employment Generation, Business to Business Sales
TBD
E14 South Poway Business Park
Vacant – zoned Industrial Park – Known as Ridge View
Industrial Park zoning; potential for secured facility
Employment Generation, Business to Business Sales
TBD
E15 South Poway Business Park
Automobile Storage Lot
Light Industrial zoning; automobile storage; long term – manufacturing, office, distribution or other active business park use
Revenue, Employment Generation, Business to Business Sales
TBD
E16 South Poway Business Park
Vacant – east end of Park up to Sycamore Canyon Rd. Light Industrial, South Poway Commercial, and Open Space/1 Dwelling unit zoning
Commercial, Light Industrial, Open Space
Employment Generation, Business to Business Sales, Recreation/Community Attraction
103.76
Area 4 Poway Road Corridor
Varies Varies Commercial revitalization, revenue generation
TBD
C26
North Poway – near Pomerado Hospital
Vacant - currently zoned Commercial Office
Commercial; Medical office or patient/employee housing; hotel
Commercial revitalization, revenue generation
2.06
C37 South Poway Business Park
Vacant; adjacent to Hampton Inn; zoning is South Poway Commercial
Restaurant; Commercial Commercial revitalization, revenue generation
1.23
C38 Old Poway Park
Vacant; Open space, recreation
Commercial, restaurant, hotel
Visitor Serving Commercial
1.08
C39 South Poway Commercial; general Institutional, medical, residential
Commercial revitalization, employment generation, revenue generations
1.7
South Poway Mining Site
South Poway Mineral Resource Extraction
Open space, recreation, conservation, light industrial
Recreation/ community attraction/ entertainment
TBD
P a g e 3 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
TABLE 4.1
SUMMARY OF POTENTIAL OPPORTUNITY SITES
OPP SITE #
GENERAL
LOCATION CURRENT LAND
USE/ZONING PROPOSED
LAND USE/ZONING ED OBJECTIVE1 ACRES
Stone Ridge Country Club
North Poway Open space, recreation
Open space, recreation, restaurants,
Recreation/ community attraction TBD
Lake Poway
North Central Poway
Open space, recreation
Open space, recreation, restaurants, entertainment
Recreation/ community attraction/ entertainment TBD
1 Refers to overall ED strategy, (i.e., revenue generation, business to business sales, commercial revitalization,
employment generation, and recreation/community attraction)
Below, illustrated in Figure 4.1, is a map that that identifies these sites throughout the community,
concentrated primarily in three areas: South Poway Business Park; Poway Road; North Poway.
FIGURE 4.1 CITY OF POWAY, EDSP, OPPORTUNITY SITE ANALYSIS
SUMMARY OF SITES
Commercial Sites Commercial Sites
Employment Sites
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 4
EMPLOYMENT OPPORTUNITY SITES (E1-E16)
Following is a description of each potential opportunity site for Poway, utilized primarily for
employment generating uses, such as manufacturing, sales, distribution, general office, etc. These
sites are ideally drawn from the target industries as identified in the previous Market and Economic
Analysis.
It is helpful to preface this section with a brief summary of the overall market dynamics for these
product types in Poway, primarily at the South Poway Business Park. This information comes from
interviews with local brokers supplemented by market data and information from other recent market
reports conducted for the City2:
Overall in San Diego County, the market for industrial, flex R&D and office is improving,
particularly in comparison to previous years after the recession. In Poway, supply for light
industrial, flex R&D, and office use is limited compared to other business parks competing with
the South Poway Business Park, such as Mira Mesa, Kearney Mesa, Rancho Bernardo, Escondido,
Sorrento Valley, Sorrento Mesa, Scripps Ranch, and more distantly Carlsbad and Torrey Pines.
Many of these parks, however, are also building out their lot inventory as demand increases
across San Diego County, creating opportunities for Poway, particularly in industrial or offices
uses that complement existing businesses (such as defense and aerospace, insurance/financial
services, or engineering/ contracting);
Net absorption has been positive and growing in the County across the industrial, flex R&D,
and office product types. For Poway, there is very little absorption in any of the three categories,
given the little new construction or inventory to come on line.
Vacancy rates for industrial product across the county continues to be at 15-year low levels,
though First Quarter 2016 saw a little increase from the previous quarter; for Flex R&D, vacancy
rates are declining across the San Diego Region; for Office, vacancy rates are down, with
Rancho Bernardo posting the lowest rate (8.07%) of any office submarket. For Poway, vacancy
rates are low overall compared to the general market for these three uses, most notably for
industrial space with Poway having the lowest vacancy rates in the I-15 corridor, particularly
compared to Rancho Bernardo and Scripps Ranch.
Construction throughout the region has picked up in all asset categories, with Flex R&D seeing
its largest square footage under construction in 10 years, and with office building less but
recording four consecutive year over year increases in office square feet delivered, mostly in
Class A office product. For Poway, there has been little construction recently in any of these
categories, though an approximate 86,000 square feet of new product is coming on line soon in
industrial in the South Poway Business Park on Community Road.
2 Existing Conditions Assessment, Poway Road Corridor Study; VOIT Real Estate Services – San Diego, First
Quarter 2016; Cushman Wakefield.
P a g e 5 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
Rental and lease rates are up in all categories, and in the case of office, are reaching new
highs for the San Diego region, particularly when comparing first quarter 2015 to first quarter
2016. For Poway, warehousing lease rates are starting to trend up; office rates are comparable
to some surrounding areas, higher than Rancho Bernardo, but lower than the average for San
Diego County, and down some from first quarter 2015 but are trending up.
Land values/prices overall in San Diego County across all three product types continue to
increase. For Poway, land prices may be higher than the market can support with current rent
levels for office and industrial, though some new projects coming on line may push levels lower
to the point where leasing prices may be coming in line with levels to justify construction costs.
Much of the land inventory in the South Poway Business Park is controlled by a few owners,
which may put upward pressure on land pricing. Relatively few sales over the last several year
may also contribute to land price levels.
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 6
Below, in Table 4.2, is a summary of some relevant market information for the City of Poway and
San Diego County:
TABLE 4.2
SUMMARY OF POWAY OFFICE, INDUSTRIAL/R&D FLEX MARKET TRENDS
POWAY VS. SAN DIEGO COUNTY
1Q2016 VS. 1Q2015
POWAY
1Q2016 POWAY
1Q2015
% CHANGE
1Q2016
VS
1Q2015
SAN DIEGO
COUNTY
1Q2016
SAN DIEGO
COUNTY
1Q2015
% CHANGE
1Q2016 VS
1Q2015
Vacancy Rates
Industrial 3.88% 2.42% 6.03% 4.10% 4.92% (16.67%)
Office 6.13% 7.66% (19.97%) 11.69% 11.98% (2.42%)
Flex R&D 2.34% 2.17% (7.08%) 8.75% 10.61% (17.53%)
Square Feet Vacant
Industrial 286,355 177,765 61.08% 5,900,958 7,235,795 (18.45%)
Office 79,977 99,863 (19.91%) 11,920,130 11,557,495 3.14%
Flex R&D 30,591 27,311 12.00% 3,981,528 4,605,025 (13.54%)
Lease Rates (average asking rate/month)
Industrial $.90 $.89 1.12% $.82 $.72 13.89%
Office $1.80 $1.85 (2.70%) $2.64 $2.43 8.64%
Flex R&D $1.36 $.80 70.00% $1.47 $1.37 7.30%
Under Construction (sf)
Industrial 0 70,918 - 499,939 127,780 291%
Office 0 0 - 524,652 919,731 (42.96%)
Flex R&D 0 0 - 1,032,350 618,000 67.05%
Net Rentable Square Feet
Industrial 7,372,384 7,341,577 .42% 143,934,011 144,346,986 (.29%)
Office 1,304,758 1,303,146 .12% 102,003,470 100,816,675 1.18%
Flex R&D 1,305,907 1,260,718 3.58% 45,527,581 45,415,202 .25%
Net Absorption
Industrial 119,801 131,679 N/A 13,373* 689,648 N/A
Office 8,875 (14,743) N/A 532,307 192,247 N/A
Flex R&D (8,742) (1,491) N/A 338,942 147,166 N/A
Source: Existing Conditions Assessment, Poway Road Corridor Study; VOIT Real Estate Services – San Diego, First Quarter 2016;
Cushman Wakefield.
*4Q2015 net absorption was over 600,000sf.
Following each opportunity site described below, is a site specific aerial map.
P a g e 7 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
OPPORTUNITY SITE
E1 AND E2
General Location South Poway Business Park
Current Use/Zoning Vacant – zoned Light Industrial
Proposed Use/Zoning Business park zoning – Light Industrial
ED Objective Employment generation, business to business sales
Owner Tech Business Center Ventures
Acres E1 - 3.53 ac; E2 – 2.59 ac
Potential Target
Industries/Business Types
Aerospace Vehicles and Defense, Biopharmaceuticals,
Communication Equipment and Services, Medical Devices,
Insurance Services, Education and Knowledge Creation, Paper and
Packaging; Information Technology and Analytical Instruments,
Business Services, Distribution and Electronic Commerce
Market Dynamics These are likely key parcels for future business and employment
given current plans for development on E1 and parcels to the west
Infrastructure Constraints None
Site Constraints Small lot sizes may limit size of building/businesses who occupy
Summary: These two parcels off of Community Road and Kirkham Rd in the South Poway Business
Park are suited for business park/light industrial uses, particularly for those target industries and
business types noted above, as identified in the Market and Economic Analysis. The size of the parcels
could be a constraint to any larger development footprint, which does limit the square footage and
thus the size of business occupying the site.
Site E1 is currently planned to be incorporated into a property development application for 86,000 sf
of light industrial/business park buildings utilizing this property. This will provide some of the newest
business park space available in Poway and is being built essentially without pre-leasing
commitments.
E2 is currently vacant and would be suitable for a smaller business park use. Given current
development standards, it is estimated this site would accommodate approximately 50,000 square
feet of building (lot coverage requirement is 50% of net lot area) 3
3 South Poway Specific Plan, Development Standards, Volume 2, Updated April 2014.
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 8
FIGURE 4.2
CITY OF POWAY, EDSP, OPPORTUNITY SITE ANALYSIS
E1 AND E2
P a g e 9 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
OPPORTUNITY SITES
E3 – E12
General Location South Poway Business Park
Current Use/Zoning Vacant – zoned Light Industrial
Proposed Use/Zoning Business park zoning – Light Industrial
ED Objective Employment generation, business to business sales
Owner Tech Business Center Ventures
Acres 7.37 ac total for all parcels
Potential Target
Industries/Business Types
Aerospace Vehicles and Defense, Biopharmaceuticals,
Communication Equipment and Services, Medical Devices,
Insurance Services, Education and Knowledge Creation, Paper and
Packaging, Information Technology and Analytical Instruments,
Business Services, Distribution and Electronic Commerce
Market Dynamics
Bundled together as a campus may provide an opportunity for sale
or lease. Smaller pads, however, could be attractive to growth
firms who supply major business park users (i.e., General Atomics)
Infrastructure Constraints None
Site Constraints Access is off side street (Paine) and not fronting major arterial
(i.e., Scripps Poway Parkway or Kirkham)
Summary: The advantage to this site is that it is one of the remaining vacant property within the
business park that is available, and could be bundled together to form a campus for a single user.
There may also be an opportunity to plan this site for smaller floor plates for emerging businesses that
are suppliers to the key industries in the business park, such as General Atomics. This site sits behind
the existing buildings on Gregg St. which may be an advantage to some users if they partner or are
tied to the businesses occupying that portion of the South Poway Business Park.
Given current development standards, it is estimated these sites collectively would accommodate
approximately 140,000 square feet of building (lot coverage requirement is 50% of net lot area) 4
Previous planning for the site anticipated ten separate parcels, though some lots appear to be fairly
small in size.
4 South Poway Specific Plan, Development Standards, Volume 2, Updated April 2014.
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 10
FIGURE 4.3
CITY OF POWAY, EDSP, OPPORTUNITY SITE ANALYSIS
E3 – E12
P a g e 11 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
OPPORTUNITY SITE
E13
General Location South Poway Business Park – east end
Current Use/Zoning Vacant – zoned Industrial Park – Known as Parkway Summit
Proposed Use/Zoning Industrial Park zoning; potential for secured facility
ED Objective Employment generation, business to business sales
Owner HCP
Acres TBD
Potential Target
Industries/Business Types
Aerospace Vehicles and Defense, Biopharmaceuticals,
Communication Equipment and Services, Medical Devices,
Insurance Services, Education and Knowledge Creation, Paper and
Packaging; Information Technology and Analytical Instruments,
Business Services, Distribution and Electronic Commerce
Market Dynamics Large, flexible lot is advantageous; current market sales pricing
may be a disadvantage
Infrastructure Constraints None
Site Constraints None
Summary: This lot is owned by HCP and has been planned for potential development scenarios
varying from three buildings to nine buildings, and from 330,000 sf to 450,000 sf depending on
various site configurations. This is one of the premier lots for economic development in the City
adjacent to General Atomics. There has been interest in this site in the past for a potential expansion
of existing or complementary uses. The lot size, flexibility, and location provide an advantage over
other sites in the South Poway Business Park, particularly for a single large user in need of a business
park campus. Another distinct advantage of this site is the potential to create a secured facility for
defense contracting.
In discussion with brokers and developers of property with familiarity of the San Diego region and the
South Poway Business Park, one potential disadvantage has been the marketing of the site at current
price levels. This price may be above current market levels for the surrounding region for this type of
property, and may be too high for current lease rates to justify this with construction costs.
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 12
FIGURE 4.4
CITY OF POWAY, EDSP, OPPORTUNITY SITE ANALYSIS
E13
P a g e 13 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
OPPORTUNITY SITE
E14
General Location South Poway Business Park
Current Use/Zoning Vacant – zoned Industrial Park – Known as Ridge View
Proposed Use/Zoning Industrial Park zoning; potential for secured facility
ED Objective Employment generation, business to business sales
Owner HCP
Acres TBD
Potential Target
Industries/Business Types
Aerospace Vehicles and Defense, Biopharmaceuticals,
Communication Equipment and Services, Medical Devices,
Insurance Services, Education and Knowledge Creation, Paper and
Packaging; Information Technology and Analytical Instruments,
Business Services, Distribution and Electronic Commerce
Market Dynamics Current market sales pricing may be a disadvantage
Infrastructure Constraints None
Site Constraints Site is long and narrow, which could constrain flexibility of use as
a campus versus individual building use. No access from the south
Summary: This property is a collection of four parcels and is owned by HCP and is currently being
marketed for site users. It has been planned for development with four buildings with a total building
footprint of approximately 395,000 sq ft. The far west parcel has been developed with an approximate
115,000 sf building that is leased out, leaving a total of 280,000 sf for future development. This
property is similar in its advantage as a potential secured campus for defense contracting or high tech
manufacturing, particularly with the southerly edge buffered by slopes and undevelopable property.
The disadvantage of the site, however, is that it is narrow, which could constrain flexibility of use as a
campus versus individual building use. In discussion with brokers and developers of property with
familiarity of the San Diego region and the South Poway Business Park, one potential disadvantage
has been the marketing of the site at current price levels. This price may be above current market
levels, compared with other properties found in the immediate region of the I-15 corridor or other
similar business parks in North and Central San Diego County.
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 14
FIGURE 4.5
CITY OF POWAY, EDSP, OPPORTUNITY SITE ANALYSIS
E14
P a g e 15 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
OPPORTUNITY SITE
E-15
General Location South Poway Business Park
Current Use/Zoning Automobile Storage Lot
Proposed Use/Zoning
Light Industrial zoning; automobile storage; long term –
manufacturing, office, distribution or other active business park
use
ED Objective Employment generation, business to business sales
Owner City of Poway Successor Agency
Acres TBD
Potential Target
Industries/Business Types
If no longer needed as automobile storage, Aerospace Vehicles
and Defense, Biopharmaceuticals, Communication Equipment and
Services, Medical Devices, Insurance Services, Education and
Knowledge Creation, Paper and Packaging; Information
Technology and Analytical Instruments, Business Services,
Distribution and Electronic Commerce
Market Dynamics City will receive 21% of sale proceeds, and could market the
property in the future to attract businesses
Infrastructure Constraints None
Site Constraints No southerly access, but site is large and flexible as to
configuration of buildings
Summary: The Successor Agency’s Long Range Property Management Plan requires this property be
sold. This property is a good candidate for acquisition by the City for continued use as a vehicle
storage lot. The vehicle storage lot plays a unique role by providing automobile dealerships with space
for vehicle storage. The current tenant is an association of dealerships and is not structured to own
land. Other buyers may be dissuaded by the fact that the property is encumbered by a lease which
could potentially (with the exercise of an option) be in place an additional ten years. Furthermore, as a
taxing entity entitled to a portion of the Successor Agency’s property sales, the City will receive 21%
of the sales proceeds. Should the vehicle storage lot no longer be needed, the property could be
utilized as a City facility, to attract business(es), or be sold.
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 16
FIGURE 4.6
CITY OF POWAY, EDSP, OPPORTUNITY SITE ANALYSIS
E15
P a g e 17 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
OPPORTUNITY SITE
E-16
General Location South Poway Business Park
Current Use/Zoning
Vacant – east end of Park up to Sycamore Canyon Rd
Light Industrial, South Poway Commercial, and Open Space/1
Dwelling unit zoning;
Proposed Use/Zoning Undetermined
ED Objective Undetermined
Owner K&M Investments LP
Acres 103.76 ac
Potential Target
Industries/Business Types
Aerospace Vehicles and Defense, Biopharmaceuticals,
Communication Equipment and Services, Medical Devices,
Insurance Services, Education and Knowledge Creation, Paper and
Packaging; Information Technology and Analytical Instruments,
Business Services, Distribution and Electronic Commerce;
Commercial on Scripps Poway Parkway; Open space
Market Dynamics On eastern edge of business park with developable land in
between; likely later phases of business park development
Infrastructure Constraints Some of the developable portions of the site not served by utilities
yet
Site Constraints Canyon slopes cover most of the property; western end is likely
developable portion
Summary: Interesting longer term phase of Business Park. Slope constraints of the site likely
provide long term open space opportunity, whereas, western portion adjacent to opportunity site E-13
is likely developable area. This portion of site would likely come forward in the market as E-13
develops, and is best suited for a complementary business park use to E-13, plus a portion for
commercial as the zoning allows along Scripps Poway Parkway.
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 18
FIGURE 4.7
CITY OF POWAY, EDSP, OPPORTUNITY SITE ANALYSIS
E16
P a g e 19 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
POWAY ROAD COMMERCIAL-RETAIL/MIXED USE SITES
(AREA 4, SITES C1-C36)
In general, from review of the Poway Rd Corridor study material, discussions with brokers, and review
of market metrics, it appears there are a variety of opportunities for commercial revitalization along
Poway Rd. Such opportunities may require the assembly or combination of parcels, and rezoning.
The primary economic development objective of these sites would be commercial revitalization, and
land uses may include retail, service commercial including restaurants, entertainment, office, and
housing in a mixed-use setting. Some of these sites may be for expansion or relocation of existing
businesses, such as automobile dealerships. Accordingly, it is recommended that land use along
Poway Road allow flexibility to allow large commercial tenants, should such businesses expansion,
attraction, or retention opportunities arise. The Poway Road Corridor study notes sales leakage in
retail categories where some of this revitalization may address.
If review of the Poway Corridor study and from other sources, a comprehensive list of properties along
Poway Road can be identified for potential revitalization (either singularly or in combination). Figures
4.8 through 4.12 on the following pages, illustrate these potential sites. These sites are all contained
within Opportunity Area 4 as noted on the opportunity site map in Figure 4.1 at the beginning of this
section. Among the various Opportunity Areas identified by the Poway Rd Corridor Study, Area 4 one
stands out as a top prospect for private and public investment to achieve the goals of commercial
revitalization. As several of these properties are owned by the Successor Agency, Housing Authority
and City, this area represents an opportunity for City to utilize property with adjacent properties, or
alone to incentivize private development.
As noted in the Poway Rd. Corridor Study, development of many of these sites face a number of
challenges, including multiple owners, tenant leaseholds, aging facilities, and market dynamics where
rent levels may not justify investment in development. Also, there are properties where current cash
flows are positive, despite lower rent and discount oriented tenants, which can create a disincentive
for owners to invest in upgrades and redevelopment of the site despite higher rents and utilization.
POWAY ROAD CORRIDOR STUDY OPPORTUNITY AREA 4
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 20
1
FIGURE 4.8
CITY OF POWAY, EDSP, OPPORTUNITY SITE ANALYSIS
C 1 – C6
P a g e 21 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
FIGURE 4.9
CITY OF POWAY, EDSP, OPPORTUNITY SITE ANALYSIS
C7 – C10
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 22
FIGURE 4.10
CITY OF POWAY, EDSP, OPPORTUNITY SITE ANALYSIS
C11 – C21
P a g e 23 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
FIGURE 4.11
CITY OF POWAY, EDSP, OPPORTUNITY SITE ANALYSIS
C22 – C25
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 24
FIGURE 4.12
CITY OF POWAY, EDSP, OPPORTUNITY SITE ANALYSIS
C27 – C36
P a g e 25 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
OTHER COMMERCIAL OPPORTUNITY SITES (C26, C37-C39)
In addition to employment generating sites, and areas along the Poway Rd Corridor, there are
additional sites that may be suitable for other commercial uses, including office and hotels. The
demand for such use is characterized in the Poway Rd Corridor Study documents and indicates there
could be some demand for specialty office (such as medical), demand for recreational uses and
amenities, but a lesser demand for hotel. Through interviews with brokers/developers, city staff, and
general market research, including review of the Poway Rd Corridor Study documents, three potential
properties have been identified by ADE as opportunity sites for commercial development (in addition
to other sites noted in the Poway Rd Corridor Study). These sites are described below.
OPPORTUNITY SITE
C26
General Location North Poway – near Pomerado Hospital
Current Use/Zoning Vacant - currently zoned Commercial Office
Proposed Use/Zoning Medical office or patient/employee housing; hotel
ED Objective Commercial revitalization, employment generation, revenue
generation
Owner City of Poway Housing Authority
Acres 2.06
Potential Target
Industries/Business Types medical offices; employee or patient housing; hotel
Market Dynamics
Owned by City Housing Authority so options exist for utilizing value
in land to stimulate investment; location to hospital is attractive
for medical related uses (either office or housing) or hotel
Infrastructure Constraints None
Site Constraints None
Summary: This lot may be ideal for a medical related use with adjacency to the hospital. Medical
offices, including primary and specialty care may be in demand. Also, the site could be suitable as
housing for employees of the hospital as more nurses and doctors are sharing duties throughout
medical systems and locations, and/or for patient housing for long term patient care, or family of
patients in longer term care procedures at the hospital. It is our understanding, however, that the
hospital does currently have vacant space within the main hospital buildings, so careful review of this
opportunity with the hospital administration would be prudent to determining its use as a medical
related purpose. According to the City’s adopted Housing Element, the Monte Vista site is targeted for
low Income affordable housing dwelling units.5 This site may also be suitable for a hotel use to serve
the hospital and north Poway (see further discussion below on hotels).
5 City of Poway, General Plan Housing Element, updated 2014
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 26
FIGURE 4.15
CITY OF POWAY, EDSP, OPPORTUNITY SITE ANALYSIS
C26
P a g e 27 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
Summary: As depicted in Figure 4.16, above, Poway is essentially in the I-15/Kearney Mesa trade
area for hotels, encompassing a 6 mile radius around Poway.6 The City’s three existing hotels are
economy and limited service. There may be an opportunity for an additional limited service hotel
(typically 3 star) in the sites noted above, namely, in the South Poway Business Park to capture
business users (within proximity to the Hampton Inn, see C-37), on Poway Rd in the Town Center area
to help revitalize that area, or adjacent to the hospital, to serve north Poway and families of hospital
patients and employees of the hospital (Opportunity Site C-26). There may be an opportunity for a
hotel on Poway Rd to be more boutique in nature, smaller and of higher service than a standard
limited service brand name hotel.
6 Poway Rd Corridor Study Draft 2015; PKF 2015.
FIGURE 4.16
CITY OF POWAY, EDSP, OPPORTUNITY SITE ANALYSIS
HOTEL MARKET
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 28
TRADE AREA HOTELS
MAP ID NAME CITY RATING
1 Hilton Garden Inn San Diego/Rancho Bernardo San Diego 3-star hotel
2 La Quinta Inn San Diego Rancho Penasquitos San Diego 2-star hotel
3 Spring Hill Suites by Marriott San Diego-Scripps Poway
San Diego 2-star hotel
4 Residence Inn by Marriott Scripps Poway Parkway San Diego 3-star hotel
5 Best Western Country Inn- San Diego, Poway Poway 3-star hotel
6 Rancho Valencia Resort and Spa S.D.
County 5-star hotel
7 Country Inn & Suites by Carlson-San Diego North San Diego 3-star hotel
8 Residence Inn By Marriott Sorrento Mesa San Diego 3-star hotel
9 Courtyard by Marriott San Diego / Rancho Bernardo San Diego 3-star hotel
10 San Diego Ramada Poway Poway 2-star hotel
11 The Inn At Rancho Santa Fe S.D. County
4-star hotel
12 Morgan Run Resort & Club S.D.
County 3-star hotel
13 Best Western Inn Miramar San Diego 3-star hotel
14 Rancho Bernardo Inn San Diego - A Golf and Spa
Resort San Diego 4-star hotel
15 Residence Inn by Marriott Rancho Bernardo Carmel
Mt. Ranch San Diego 3-star hotel
16 Courtyard by Marriott San Diego Sorrento Mesa San Diego 3-star hotel
17 Radisson Suite Hotel Rancho Bernardo San Diego 3-star hotel
18 Quality Suites San Diego - Miramar San Diego 2-star hotel
19 Doubletree Golf Resort San Diego San Diego 3-star hotel
20 Homestead San Diego - Sorrento San Diego 2-star hotel
21 Four Points by Sheraton - San Diego San Diego 3-star hotel
22 Rancho Bernardo Inn San Diego 4-star hotel
23 Hampton Inn & Suites San Diego-Poway Poway 2-star hotel
P a g e 29 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
OPPORTUNITY SITE
C37
General Location South Poway Business Park
Current Use/Zoning Site C-37 – Vacant; adjacent to Hampton Inn; zoning is South
Poway Commercial
Proposed Use/Zoning Restaurant
ED Objective Commercial revitalization, revenue generation
Owner City of Poway Successor Agency
Acres 1.23 ac
Potential Target
Industries/Business Types Commercial; restaurant
Market Dynamics Adjacency to Hampton Inn, and corner location makes it attract
for commercial use
Infrastructure Constraints None
Site Constraints None
Summary: This site seems best suited for a commercial use, such as a restaurant or gas station to
service the business park employees and guests of the Hampton Inn. It location on a corner of Scripps
Poway Parkway allows it good site visibility, which may make the gas station more viable. A gas
station would require a CUP under the zoning. The retail leakage study in the Poway Rd Corridor
study, however, does not indicate leakage demand in this retail sector, but it appears there are few
gas stations on Scripps Poway Parkway. Given the ownership by the Successor Agency, there is an
opportunity to utilize the land value as an incentive in the private investment for development, if
warranted. Below is the aerial map for C-37.
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 30
FIGURE 4.17
CITY OF POWAY, EDSP, OPPORTUNITY SITE ANALYSIS
C37
P a g e 31 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
OPPORTUNITY SITE
C38
General Location Old Poway Park
Current Use/Zoning Vacant - Open Space Recreation
Proposed Use/Zoning Commercial; restaurant; hotel
ED Objective Visitor Serving Commercial
Owner City of Poway
Acres 1.08
Potential Target
Industries/Business Types boutique hotel; specialty restaurant
Market Dynamics Owned by City, weekend destination for weddings, Farmer's
Market, and special events.
Infrastructure Constraints None
Site Constraints Open space designation
Summary: Old Poway Park was built to create the ambiance of the “turn-of-the-twentieth-century”
setting. It includes historic Poway buildings and a train barn to house a classic 1938 Fairmont Speeder
steam engine, ore cars, and an 1894 L.A. Yellow Trolley. Each year, more than 23,000 people
participate in special events at Old Poway Park. Annually, nearly 55,000 riders enjoy the train and
more than 11,000 visitors attend the museum. Park facilities are rented for more than 500 events. In
addition, the City leads more than 1,500 schoolchildren through historical tours. Besides high daily
use, the park is a favorite spot for weddings and hosts special community events including Old
Fashioned Fourth of July, Summer Concert Series, Once Upon a Hallowe’en, Tour de Poway,
Rendezvous in Poway, Veterans Day, Christmas in the Park, Standard Flower Show, Train Song
Festival, Community Band Festival, and the Sam Hinton Folk Festival. The Poway Farmers Market is
located on Midland Road every Saturday, creating a pedestrian-friendly shopping and entertainment
experience in the Old Poway Park area.
A public parking lot located across Midland Road, to the east of Old Poway Park, presents an
opportunity to enhance the range of activities, services, and accommodations at Old Poway
Park. Examples include themed restaurants and Victorian themed boutique hotel. The graded parking
lot consists of five parcels and is improved with asphalt grindings, box trees, and minor drainage. This
lot accommodates day use parking for Old Poway Park and parking for community events, the weekly
Farmers Market, and the Midland Road Street Fair.
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 32
FIGURE 4.13
CITY OF POWAY, EDSP, OPPORTUNITY SITE ANALYSIS
C38
P a g e 33 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
OPPORTUNITY SITE
C39
General Location South Poway
Current Use/Zoning Commercial General
Proposed Use/Zoning Institutional, medical, residential
ED Objective Commercial revitalization, employment generation, revenue
generation
Owner City of Poway
Acres 1.7
Potential Target
Industries/Business Types medical offices, employee or patient housing
Market Dynamics Owned by City
Infrastructure Constraints None
Site Constraints Historic designation
The Historic Big Stone Lodge, located at 12237 Old Pomerado Rd. consists of a former restaurant
known as Topsy’s Roost, and a former gas station/residence, all of which are over 75 years
old. Pursuant to the California Environmental Quality Act, buildings over 50 years old are considered
potentially historic and the City designated the Big Stone Lodge site as locally historic in May
1991. The site includes many mature oak and sycamore trees; some that date back to the
construction of the Lodge. To preserve and enhance the historic character of the area, and provide an
additional recreational amenity through which to portray the site’s history, the City designated Big
Stone Lodge as a passive historic park.
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 34
FIGURE 4.14
CITY OF POWAY, EDSP, OPPORTUNITY SITE ANALYSIS
C39
P a g e 35 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
RECREATION/ENTERTAINMENT SITES
There are several sites in Poway where reutilization or further revitalization may create opportunities
to meet economic development and community development objectives, particularly around
enhancing recreation and entertainment opportunities and uses in Poway. Below is a description of
those sites.
South Poway Mining Site
It is our understanding that the current mineral resource extraction site south of the South
Poway Business Park in Beeler Canyon may be ceasing operations in the near future. If this is
the case, it may be advantageous for the City to discuss with the property owners potential
future uses as contemplated in the Vulcan Materials Reclamation Plan and CUP, with a focus as
recreation site to complement Lake Poway as regional destination recreation. It is our further
understanding that some planning concepts have been discussed before for this property,
including restoration of Beeler Creek as a recreation corridor, and creation of a larger open
space in the center of the mining pit area once reclamation is completed and designated as
Natural Open Space.7
These recreation uses could be passive or active, depending on the demand for additional soccer
or baseball fields in the region. Another form of active recreation could be an outdoor climbing
wall or venue, which is fairly unique in southern California, and could be developed here on a
larger scale than most. Given the topography, this may be a location for an outdoor
amphitheater for entertainment. These uses, though may require zoning and/or general plan
amendments. Development concepts for this site also anticipate potential light industrial pads
just south of Kirkham Way, above this recreation area. Depending on their depth and size, these
could create additional site inventory for industrial uses, to help alleviate Poway’s shortage in
employment related sites.
Stone Ridge Country Club
It is also our understanding that there may be an opportunity for change or modification of use
at the Stone ridge Country Club. This is a significant piece of property in the northern part of
Poway, currently zoned open space/recreation. It is often difficult for golf course/country club
parcels to transform into other uses once housing has developed around them and the open
space designation in the general plan or specific plans has been provided and enjoyed by the
community. It has been suggested, however, the facilities may be used as a craft brewery,
winery, restaurants and/or an entertainment venue on the property to compliment open space
or golf uses. Such uses would help meet the desire of the community for further upscale
restaurants and entertainment venues.
Lake Poway
Lake Poway is a unique recreational asset for the City, and a strong regional draw. Similar to
the discussion above for Stone Ridge Country Club, there may be an opportunity at this location
to add a restaurant and/or other venue. An upscale restaurant, standing alone or with a winery
7 South Poway Specific Plan, Development Standards, Volume 2, Updated April 2014.
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 36
or brewery use would add a complementary use to the recreation components of the lake, trails,
and open space. An entertainment venue, including an outdoor amphitheater is another
possibility. It would be advantageous as well to have any of these uses oriented on the property
with views of Lake Poway, if possible. As this property is owned by the City, the ability to
structure favorable concession leases, ground leases, or property sales exists to help incentivize
private investment.