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In March, ground will be broken on a two-story elementary school in the Windingwalk neighborhood in the Eastlake area of Chula Vista.

The school district said their student body has increased to more than 28,000 students, the most ever for the district..

"It means that families are moving into the area, families with children," said district spokesman Anthony Millican.

The school will be the first new elementary school in Chula Vista since 2007. It's a good sign things in the South Bay city are getting better.

"Enrollment is increasing and the economy steadily is beginning to pick up in the eastern side of Chula Vista," said District Superintendent Francisco Escobedo.

The school district said the increased enrollment means some of the homes abandoned during the foreclosure crisis in Chula Vista are once again occupied. At one point, Chula Vista had one of the highest foreclosure rates in the nation. According to the city, construction permits for businesses and housing units have increased year-to-year since 2009.

Additionally, hundreds of homes and apartments are under construction within a two-mile radius of the new school.

"It's slow but it's steady," said Chula Vista Mayor Cheryl Cox.

Steady enough to build a new school while many other school districts discuss which ones to close. The Chula Vista Elementary School District said it has managed its money well despite state budget cuts.

Ground will be broken on the yet-to-be-named school in March.

It's expected to be ready by the beginning of the 2013-2014 school year.