FACT SHEET MEXICO S GEOPOLITICAL SYSTEM

FACT SHEET MEXICO S GEOPOLITICAL SYSTEM Mexico is a federal republic whose states were created after Mexico s independence from Spain in 1810. Mexico is divided into 31 states and one (1) federal district. Each state is divided into municipalities governed by a Mayor and City Council, with one city serving as the state capitol. The City of Mexicali is the capitol of the State of Baja California. Mexico does not have counties. ADMINISTRATIVE TERMS The 1917 Mexican Constitution defines three branches of government - executive, legislative, and judicial. The constitution prohibits reelections. The president, senators, and state governors are elected for six-year terms, deputies (the equivalent of representatives) serve three year terms along with mayors and city councilmembers. became a collector of customs and Alcalde, or Mayor of San Diego. The original documents for the concession of Rancho Tijuana have not been located. Nevertheless, the existence of the grant is confirmed by reference to it in later sources. One of the oldest writings related to Rancho Tijuana is a confirmation of the grant issues by Governor Pio Pico in 1846. By 1858, Juan Bandini, an early settler of San Diego, made arrangements to exchange his Rancho Guadalupe for that of the Tijuana belonging to his father-in-law, Don Santiago Arguello. Tijuana was envisioned to be a planned community, seven times larger than Mexicali and two and a half times larger than Ensenada. ORIGINS OF THE CITY OF TIJUANA The City of Tijuana is situated in a region once inhabited by the Kumiai Indians. In centuries past, the Baja California peninsula was also inhabited by the Pai Pai, Cochimi, Kiliwa, and Cucupa. Tijuana was founded as the Town of Zaragoza on July 11, 1889, through a judicial resolution by Mr. Santiago Arguello, which involved the Rancho Tijuana. Santiago Arguello Moraga was born in 1792 in Monterey, Alta California. He was the son of José Darío Arguello, a prominent figure in California politics for many years. Santiago later At the turn of the century, the City of Tijuana had a population of 273. The U.S. Enactment of Prohibition of the 1920s led many Americans across the border to partake in legal drinking and gambling. It continues as a popular destination for tourists and Californians alike. In 1925, the City of Tijuana was officially created and no longer part of Ensenada; yet it was not until the 1940 s that the federal government established the limits of the City of Tijuana within 843 acres of the Rancho Tijuana or Rancho Tia Juana. The Rancho Tijuana was one of the grants awarded by Governor José Maria Encheandía to retired soldiers as a reward for their military service. Such grants were part of a political and economic process that began slowly in Alta California after Spanish settlement in 1769. 1

These grants increased dramatically during the Mexican period, especially after secularization of the missions when more land became available. By the 1950s The City of Tijuana had grown to approximately 60,000 people extending east to the area known as La Mesa where the Arguello and Bandini families owned cattle ranches. KEY INFRASTRUCTURE PROJECTS, PLANS AND RESOURCE ISSUES 1. TIJUANA-ROSARITO CORRIDOR TIJUANA TODAY In recent decades, the City of Tijuana has experienced high rates of growth. Unfortunately, much of this growth has been unplanned or irregular, which means it has occurred outside the existing infrastructure. Planned growth supports growth-management strategies, including preservation of prime farmland and sensitive environmental lands, forests, and other green spaces, in conjunction with careful planning for development in designated areas. With a population of over 1.6 million people, Tijuana is the sixth largest city in Mexico. Tijuana is bordered on the north by the United States, on the south by the Municipality of Rosarito, on the east by the Municipality of Tecate, and on the west by the Pacific Ocean. In 2002, the city s budget was approximately $173 million. Because of NAFTA and Tijuana s geographical proximity to the U.S., foreign companies have set up their manufacturing operations in newly established industrial parks. As a result, Tijuana is now a popular destination for people seeking employment from other parts of Mexico. COMPARATIVE DATA With a population of 3 million people in the San Diego region and a population of 1.6 million in the City of Tijuana, this border region constitutes the largest urban settlement along the U.S.-Mexico border and is among the ten largest metropolis within the NAFTA market. The Tijuana-Rosarito Corridor is a $120 million dollar project, which includes a four lane highway of approximately 26 miles that connects the City of Rosarito to the border in the Mesa de Otay neighborhood of Tijuana and the Tijuana- Tecate toll road. The project provides access to 30,000 acres planned for new urban development in the City of Tijuana, in the area known as Valle de las Palmas. 2. VALLE DE LAS PALMAS URBAN DEVELOPMENT This 31,000 acre project is envisioned by urban planners to be the largest satellite city in Mexico. The project will represent an investment of approximately $1.2 billion dollars, and when completed, will accommodate 1 million of new people. The two States share the old Territory of California. Today, California (formerly Alta California) has a population of about 35 million people, while Baja California has a population of about 3 million people. 2

3. ALAMAR RIVER SPECIFIC PLAN 4. HOUSING DEVELOPMENTS The City of Tijuana s Programa Parcial de Conservación y Mejoramiento Urbano para la Zona del Arroyo Alamar: Primera Etapa (First Phase of the Specific Conservation and Urban Improvement Plan for the Alamar River Planning Area) is in the initial draft stages. The preparation of this plan is a joint effort among federal, state, and municipal governments. The focus of the plan is on riparian restoration, habitat conservation and identifying compatible land uses within this riparian corridor. When restored and rehabilitated, this area will include an extension of an existing expressway to connect downtown Tijuana with the Tijuana- Rosarito Corridor, as well as a new lineal ecological park along the Alamar River. The City of Tijuana s housing chamber (CANADEVI) estimates 17,000 housing units were constructed during 2006. This represents a 20 percent increase from the 14,000 units built in 2005. Most of the developments are being constructed by large housing developers and are being built on the south and eastern fringes of the city. A typical new home is 968 square feet with two bedrooms starting at $32,000. The construction material is a combination of cinder block exterior walls and wood roof construction. Homes at this price are built for the interes social, which is considered the low-to-middle income sector of the housing market. The monthly payment of $245.00 is based on a 10 percent down payment on a 25 year loan at a 9.5 percent interest rate. A 2,100 square foot four bedroom home with a view located in a gated community in Tijuana is approximately $186,000. The monthly payment of $1,500 is based on a 10 percent down payment on a 25 year loan at a 9.5 percent interest rate. Estimates are as high as 30 percent for the number of homebuyers who purchase these homes as first or second homes and live or work in the U.S. The coastal corridor presents different patterns, more oriented toward tourism and foreign retirees. 3

5. SAN YSIDRO - PUERTA MEXICO PORT OF ENTRY From 1985 to 1994, it handled only northbound cargo operations. In 1994, all southbound commercial cargo was rerouted from the Virginia Avenue gate at the San Ysidro POE to Otay Mesa. More than 6 million private vehicles and about 1.3 million pedestrians crossed northbound at the Otay Mesa border station in 2006. Delays in crossing the border have increased and become more unpredictable over time. Otay Mesa POE is the third ranking POE in the U.S.-Mexico border and the busiest commercial port of entry in the California- Baja California border, handling over $24 billion in imports and exports. The San Ysidro Puerta México Port of Entry (POE) is the busiest land port of entry in the world. On a daily basis, it serves up to 50,000 northbound vehicles and 25,000 northbound pedestrians that cross through 24 vehicle and eight pedestrian lanes. A major expansion project is in progress including improvements to access roads. The project is estimated to cost $520 million. Funding in the amount of $34 million was approved in FY 2004 for site acquisition and design. One out of every ten people entering the United States through any land, sea, or air port of entry, does so though San Ysidro. 6. OTAY MESA PORT OF ENTRY 7. EAST OTAY MESA OTAY II PORT OF ENTRY The development of a new port of entry at East Otay Mesa - Otay II is underway and will provide an alternate entry for vehicles and commercial traffic east of the existing commercial crossing. This port will be linked to State Routes 905 and 125 through the construction of State Route 11. This port will also connect to the Tijuana Rosarito corridor, a new highway in Baja California from the coastal area of Rosarito to the U.S.-Mexico border to the east of the Otay Mesa port of entry. The project has 80 acres reserved on both sides of the border to accommodate the new port and access roads. In 1985, the Otay Mesa Port of Entry (POE) was developed as a passenger and commercial POE. 4

8. SPECIFIC PLAN FOR MESA DE OTAY The City of Tijuana s Plan Parcial de la Mesa de Otay (Specific Plan for East Mesa de Otay) was completed in 2005. The preparation of this plan was a joint effort among federal, state, and municipal governments. The plan has the following goals: Support policies to mitigate and address urban development risk factors related to land use guidelines, public services, and public safety considerations; Prepare transportation infrastructure guidelines to provide access to a new port of entry and connect it to the Tijuana-Rosarito corridor; and 1,895 megawatts. The system includes four high voltage stations, plus 27 substations. By the year 2010, the City of Tijuana s need for electricity will increase by eight percent. 12. NATURAL GAS The City of Tijuana has two high capacity pipelines supplying natural gas for industrial use only. 13. ENVIRONMENT Provide financial options or alternatives to fund the construction of city streets in the area of the proposed new port of entry and establish a planning framework for the area. 9. TIJUANA S WATER SUPPLY SYSTEM The main source of water in the City of Tijuana is the Colorado River. Additional sources are the Rodriguez Dam and Arroyo Misión Alamar, for a total supply of 8.4 million cubic meters. As of January 2004, there were a total of 373,598 water connections. 10. WATER TREATMENT There are 16 water treatment plants in the City of Tijuana. Two are operated by CESPT (Tijuana s State Public Services Commission) in San Antonio de los Buenos and San Antonio del Mar. The International Wastewater Treatment Plant, located in San Diego, provides water treatment for the City of Tijuana. It is operated by the International Boundary and Water Commission (IBWC). 11. ELECTRICITY Some of the most threatened and biologically unique areas in the world are located in Tijuana. Specifically, the Mesa de Otay region often referred to as the San Ysidro Unit, is considered to be one of the 25 Biodiversity hotspots in the entire world. The San Ysidro Unit includes Otay Mountain, San Miguel Mountain, Cerro San Isidro, Jesús María Mesa, and Tecate Peak, which are located near the study area of the Otay Mesa Mesa de Otay Binational Corridor Strategic Plan. Representing the California Floristic Province the Otay Mesa region is home to a vas variety of wildlife, including many endemic and threatened species such as Otay Mesa Mint, Mexican Flannelbush, Stephen s Kangaroo Rat, Otay Manzanita, San Diego Fairy Shrimp, and the largest population of the rare Tecate Cypress. There are two thermoelectric plants that supply electricity to Tijuana (Cerro Prieto in Mexicali, and Presidente Juárez in Rosarito). The total combined electrical energy supply is over 5

The City of Tijuana has no official conservation areas, although the administration and the city s urban plan pursue to preserve coastal areas, mountains (984 ft. over sea level), habitat for migratory species, rivers, and other water-bodies. 14. TRANSPORTATION (RAIL, HIGHWAYS, TRANSIT) Figure 1 CITY OF TIJUANA PROCESS TO PREPARE AND APPROVE URBAN DEVELOPMENT PLANS CITY COUNCIL ACTION PREPARE PROGRAM/PLAN AGENCY DRAFT DEVELOPMENT PROGRAM/PLAN PUBLIC REVIEW AND COMMENT ADDRESS COMMENTS The Short Line Tijuana-Tecate is Tijuana s only rail system and is also part of the San Diego & Arizona Eastern railway. Highway 2 connects the City of Tijuana to the rest of the country, and Highways 1 and 3 connect Tijuana to the rest of the peninsula. Two toll highways connect Tijuana with Ensenada and Tecate. Freight transportation infrastructure is concentrated in industrial areas and the Otay Mesa Port of Entry. There are 280 lineal miles of public transit with approximately 250 routes (buses, microbus, and taxis). PRESENTATION TO CITY COUNCIL PRESENTATION TO CCDUE PUBLICATION ON POGE APPROVAL APPROVAL COMMENTS REGISTRATION ON RPPC CCDUE: State of Baja California Commission for Coordination of Urban Development POGE: Official Gazette of the Government of the State of Baja California RPPC: Public Registry of Property and Commerce PUBLICATION ON 2 NEWSPAPERS OF STATEWIDE CIRCULATION 6

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Garita de Otay Futura Garita de Otay II Carr. Cuota Tecate Cañón del Padre Blvd. Terán Terán Arroyo Alamar Blvd. Bellas Artes Blvd. Clouthier Central de Autobuses Univ. Xochicalco Aeropuerto de Tijuana 8

South County Economic Development Council 1111 Bay Blvd. Suite E Chula Vista, CA 91911 Tel: 619.424.5143 Neighboring: San Diego and Tijuana Region San Diego Association of Governments 401 B Street Suite 800 San Diego, CA 92101 Tel: 619.699.1900 2006: San Diego Region Tijuana San Diego/ Tijuana Region Population 3,066,820 1 1,417,730 2 4,484,550 Population < Age 18 771,202 1 476,019 2 1,247,221 Percent < Age 18 25% 1 34% 2 2000 2006 Change % 9% 1 30% 3 Land Area (sq. miles) 4,261 1 1,071 4 5,332 Acres 2,727,030 1 685,440 4 3,412,470 Population per sq. mile 720 1 1,317 2 1,018.5 Labor Force 1,537,220 5 594,830 2 2,132,050 Number of Employed 1,478,805 586,923 2 2,065,728 Number of Unemployed 58,415 7,907 2 66,322 Unemployment Rate 3.8% 1 1.32% 2 - Inflation Rate 3.7% 5.38% 4 - GRP (millions) 143,650 8 11,576 4 - Median Household Income $ 64,737 1 $14,240 4 - Total Housing Units 1,118,410 1 357,064 2 1,475,474 2030 Forecast: Total Population 3,984,753 1 2,422,071 6 6,406,824 Housing Units 1,383,803 1 803,021 6 2,186,824 Annual 2005 (Northbound) Border Crossing Statistics 7 People Passenger Vehicles Commercial Trucks San Ysidro 41,424,069 17,067,966 0 Otay Mesa 15,275,785 6,872,886 724,572 Tecate 2,579,986 997,913 67,087 Total 59,279,840 24,938,765 791,659 - Amounts reflected are shown in US dollar equivalents - Tijuana median household income (2005 figure) is calculated based on the fact that more than one family members work. Sources: 1 San Diego Association of Governments 2 Instituto Nacional de Estadística Geografía e Informática 2005 Figures 3 Programa de Desarrollo Urbano del Centro de Población de Tijuana 2002-2025 Forecast for 2025 4 Secretaria de Desarrollo Económico de Tijuana, XVII Ayuntamiento de Tijuana 5 US Department of Labor Bureau of Labor Statistics 6 Consejo Nacional de Poblacion (CANAPO) 7 US Customs and Border Protection 8 San Diego Regional Chamber of Commerce 9

All Crossings at California s Ports of Entry Northbound Passenger Vehicle, Trucks and Pedestrian Crossings 60,000,000 50,000,000 Number of Crossings 40,000,000 30,000,000 20,000,000 10,000,000 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 All Crossings 48,659,788 45,654,691 47,050,425 43,464,250 44,509,555 49,111,910 48,031,779 49,189,984 46,637,936 52,228,352 45,620,484 47,989,121 51,021,042 49,605,579 45,950,765 PAX Vehicles 26,772,654 27,509,481 28,628,764 26,795,585 24,637,002 29,203,865 29,054,090 29,785,642 27,163,235 27,995,930 26,393,966 28,900,004 30,887,091 31,307,550 30,286,425 Trucks 569,956 579,126 642,699 698,692 694,697 928,364 881,157 977,018 1,028,020 1,023,597 1,054,777 1,022,949 1,096,083 1,116,589 1,139,031 Pedestrians 21,317,178 17,566,084 17,778,962 15,969,973 19,177,856 18,979,681 18,096,532 18,427,324 18,446,681 23,208,825 18,171,741 18,066,168 19,037,868 17,181,440 14,525,309 Source: U.S. Customs and Border Protection. Data represent federal fiscal year. Note: Includes San Ysidro, Otay Mesa, Tecate, Calexico West, Calexico East and Andrade ports of entry. San Ysidro Port of Entry Northbound Passenger Vehicle and Pedestrian Crossings 20,000,000 18,000,000 Number of Crossings 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 POV Vehicles 13,540,135 14,667,073 15,933,956 13,833,715 13,477,537 15,271,520 15,098,292 15,044,219 14,054,104 15,675,483 15,249,703 17,368,166 17,878,897 16,961,998 17,073,761 Pedestrians 11,647,190 8,828,312 9,267,088 7,467,712 8,747,231 8,736,505 7,234,716 7,406,921 7,854,351 12,645,326 7,577,569 7,874,109 9,811,395 8,773,167 7,225,871 Source: U.S. Customs and Border Protection. Data represent federal fiscal year. 10

Otay Mesa Port of Entry Northbound Passenger Vehicle, Trucks, and Pedestrian Crossings 8,000,000 7,000,000 6,000,000 Number of Crossings 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 POVs 4,132,417 3,711,402 3,821,390 4,591,529 3,392,994 3,569,830 4,276,186 4,453,774 4,855,639 4,198,508 3,868,417 4,723,433 5,787,714 6,822,796 6,000,699 Trucks 374,141 384,615 428,086 477,390 475,427 558,383 599,001 684,484 683,703 700,453 725,710 698,228 724,903 724,572 752,981 Pedestrians 659,481 521,426 377,435 388,220 566,737 628,285 604,333 697,791 640,026 666,042 1,830,903 1,442,874 1,499,949 1,540,469 1,365,345 Source: U.S. Customs and Border Protection. Data represent federal fiscal year. Tecate Port of Entry Northbound Passenger Vehicle, Trucks, and Pedestrian Crossings 1,400,000 1,200,000 Number of Crossings 1,000,000 800,000 600,000 400,000 200,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 POVs 1,042,030 1,061,129 1,032,944 1,089,999 1,202,983 1,149,431 1,210,533 1,139,569 1,237,240 1,268,109 997,575 998,649 Trucks 41,064 45,932 64,262 57,914 59,647 61,707 62,243 57,756 58,812 68,469 67,087 75,042 Pedestrians 273,125 264,136 288,728 283,802 280,897 291,212 294,181 472,061 424,030 430,572 487,138 508,804 Source: U.S. Customs and Border Protection. Data represent federal fiscal year. 11

26,000,000 U.S.-Mexico Border Population Projections (Border Counties and Municipalities) 24,000,000 22,000,000 20,000,000 Population 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 2005 2010 2015 2020 2025 2030 Estimates 2005 2010 2015 2020 2025 2030 Low 12,584,937 13,312,630 14,021,368 14,691,553 15,317,581 15,902,460 Medium 13,107,883 14,288,252 15,522,489 16,794,655 18,117,365 19,493,083 High 13,282,191 14,907,140 16,710,412 18,681,857 20,880,608 23,354,106 Source: http://www.scerp.org/population.htm San Diego Tijuana Population Projections 4,500,000 4,000,000 3,500,000 Population 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 2000 2010 2020 *2030 2000 2010 2020 2030 * San Diego 2,813,833 3,245,279 3,635,855 3,984,753 Tijuana 1,210,820 1,834,263 2,558,701 3,401,858 Source: Programa de Desarollo Urbano del Centro de Poblacion de Tijuana, B.C. 2001-2025, and SANDAG. *For Tijuana forecast results extrapolating 2025 at 2.89 percent yearly. 12

California Exports to Mexico (in billions) 25 20 15 10 5 0 1997 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2.26 3.24 4.17 4.67 5.52 6.55 6.52 7.6 7.3 9 12 13.3 14.9 17.5 16.3 16.1 14.8 17.2 17.7 19.6 Source: U.S. Census Bureau, Foreign Trade Statistics Otay Mesa-Mesa de Otay: Two-Way Value of Trade 30,000 25,000 20,000 15,000 10,000 5,000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 12,298 14,646 15,584 18,760 19,385 20,367 19,660 22,171 24,401 28,598 Source: U.S. Department of Transportation, Bureau of Transportation Statistics, Transborder Surface Freight Data 13

THE OTAY MESA MESA DE OTAY BINATIONAL CORRIDOR STRATEGIC PLAN AND THE CITY OF TIJUANA PROCESS TO PREPARE AND APPROVE URBAN DEVELOPMENT PLANS SANDAG has worked collaboratively with planning agencies in Baja California in several studies; however, no formal adoption or approval process was followed by those agencies. Since the goal of the Otay Mesa-Mesa de Otay Binational Corridor Strategic Plan is to work towards effective binational planning, it was desirable that this plan also be adopted by the City of Tijuana. The Otay Mesa-Mesa de Otay Binational Corridor Early Action Plan evaluated transportation, economic development, housing, and environmental conservation issues in a binational context. In addition to partnering with IMPlan, SANDAG worked closely with the California Department of Transportation (Caltrans) and the Secretariat of Infrastructure and Urban Development of Baja California (Secretaría de Infraestructura y Desarrollo Urbano or SIDUE). Municipal planning activities in Mexico are formulated in a three-year municipal development plan. These plans are prepared by each municipal administration, which serves for a three-year term. The current plan encompasses the years 2005 through 2007. In June 2006, the City of Tijuana created the Subcommittee of Binational Affairs, under the umbrella of the Planning Committee for Municipal Development (Comité de Planeación para el Desarrollo Municipal or COPLADEM). This Subcommittee has taken the lead in incorporating the Otay Mesa Mesa de Otay Binational Corridor Strategic Plan into the formal planning activities of the City of Tijuana. Ecology Commission for this Commission and City Council to authorize IMPlan to develop the Strategic Plan in coordination with SANDAG. On September 11, 2006, the City of Tijuana s City Council formally authorized IMPlan to proceed with the preparation of the Otay Mesa Mesa de Otay Binational Corridor Strategic Plan jointly with SANDAG. Figure 1 on page 7 illustrates the process for the preparation and approval of urban development plans in the City of Tijuana. Similar to the consultation process in the San Diego region, the Draft Otay Mesa Mesa de Otay Binational Corridor Strategic Plan will be released for public review and comments in Tijuana. After comments are addressed, Tijuana s City Council will be asked to approve the Strategic Plan. For plans and programs within Mexico, municipal plans are then presented for approval to the State of Baja California s Commission for Coordination of Urban Development (Comisión Coordinadora de Desarrollo Urbano del Estado de Baja California). Once both approvals are obtained, plans and programs are published in the Official Gazette of the State of Baja California (Periódico Oficial del Gobierno del Estado de Baja California) and registered in the Public Registry of Property and Commerce. The last formal step is to publish the approved plans or programs in two newspapers of general circulation in Baja California. The State of Baja California will be consulted on the process that would be followed for binational plans. On July 26, 2006, the Subcommittee on Binational Affairs discussed the Draft Otay Mesa Mesa de Otay Binational Corridor Early Action Plan and recommended that the development of the Otay Mesa Mesa de Otay Binational Corridor Strategic Plan be incorporated into the municipal planning activities. To follow up on this recommendation, on August 22, 2006, Councilmember Edgar Fernandez made a request to the City of Tijuana s Urban Development and 14