This report to the California Governor and legislature reviews the proposal submitted by the Southwestern Community College District (SCCD) (California) to establish a state-approved educational center in Otay Mesa, to be known as the Southwestern Community College's Higher Education Center at Otay Mesa. The proposed state-supported center allows the district to effectively serve, by 2015, approximately 2,740 full-time equivalent students (FTES) in the ethnically diverse and growing communities of southern San Diego County. SCCD serves the southern part of the San Diego urban area. The proposed center will serve students from San Diego's south bay area, where the median income is $36,500, compared with $46,500 for the county as a whole. The majority of jobs in the area are in the services and trade, with relatively few jobs in technology industries. The area population is 56% Latino, with 16% of the population aged 20-29. Headcount enrollment reached 17,800 in 2000, up nearly 6% from 1998. Enrollment is expected to reach 23,000 by 2010. The district's existing sites are either at capacity or are inconveniently located. The California Postsecondary Education Commission, which provides independent analysis of the costs and benefits of proposed projects, accepted the center proposal and recommended its authorization by the state. Review guidelines and research data appended. (NB)