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HomeMy WebLinkAboutcc min 1974/03/21 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF CHULA VISTA, CALIFORNIA Held Thursday March 21, 1974 An adjourned regular meeting of the City Council of Chula Vista, California, was held on the above date beginning at 7:00 p.m. in the Council Chamber, Civic Center, 276 Fourth Avenue, Chula Vista with the following Councilmen present: Councilmen Scott, Hobel, Hamilton, Hyde, Egdahl Councilmen absent: None Also present: City Manager Thomson, Attorney Clifton Reed, City Attorney Lindberg, Community Development Coordinator Henthorn, Citizens Assistance Officer Smith PRESENTATION BY Mr. Henthorn gave a general introduction of a redevelopment JACK HENTHORN program. He discussed the Community Redevelopment Act, financing under this law, alternative financing and specifi- cally, the tax increment financing plan. Mr. Henthorn submitted a flow chart noting the various steps in the process of a redevelopment program. (Councilman Scott arrived at this time) Mr. Henthorn cited San Pablo, California, as an example of a redevelopment project which is similar to that being con- sidered for Chula Vista. He discussed the four phases of San Pablo's de~lopment program and their financing (3.85 million for the first phase and five million dollars for phases two through four). IN'~RODUCTION OF ATTORNEY Mayor Hamilton introduced Mr. Clifton Reed, Attorney. QUESTIONS FROM AUDIENCE Don Ritchey Mr. Ritchey asked what power or effect other taxing agencies Baskins-Robbins) hold over whether a program could go forward or not. Mr. Reed answered that under the tax increment financing, the other taxing agencies, such as the schools and water district, are entitled to receive as much money as they would receive on the tax base as it was at the time the program started. However, the increase from the tax increment would go to the agency for redevelopment purposes. Advantages to tenants Councilman Egdahl commented on the case of a tenant along Third Avenue who rents his premises. He asked about (1) fragmented ownership, and (2) what would be the advantage for this businessman to push for this type of project. City Manager Thomson indicated that it depended on the specific plan which is why community involvement is so important. Councilman Egdahl asked if the input has to come from the owners-in-fee or would the people renting their premises have a say in this program. Attorney Reed explained that under the California Community Redevelopment Plan, there are fairly complex participation rules. These rules specifically provide opportunities for business tenants to have input into the development of the plan, and for participation in the implementation of the plan. Adjourned Regular Meeting of City Council -2- March 21, 1974 Roy Adams Mr. Adams questioned how the tax base would be broadened. Chula Vista Mr. Reed described the tax increment financing noting the monies that would be generated from the assessed valuations. Mayor Hamilton commented that the Redevelopment Agency would hire a consultant to make a feasibility study before under- taking any program. First step in project In answer to Councilman Hyde's query, Attorney Reed stated that one step in the procedure is the formation of a Project Area Committee (required by law). This is composed of residents, businessmen and tenants living or doing business in the area. They are charged by law with advising the Agency on all policy matters. Attorney Reed further remarked that the boundaries of the project area are defined by either a group of property owners, the Planning Commission or the Agency. This cannot be done by a group such as the Business Advisory Committee - it has to be owners-in-fee. Senior Citizen Housing Councilman Hobel questioned whether a portion of a redevelop- ment project could be devoted to senior citizen housing. Mr. Henthorn remarked that it would depend on the sources of funding. Attorney Reed explained that there is no positive relationship between federal financing for senior citizen housing and the tax increment plan. They are not interrelated but a compli- mentary type financing. He added, however, that it was legal to use tax increment financing for public facilities. Bayfront Development Councilman Scott commented that there are several large land owners in the Bayfront area who, up to now, haven't been enthusiastic about the Bayfront plan. He asked if the support of these land owners was necessary in order to get tax increment financing in that area. Attorney Reed stated that legally, these property owners cannot prevent the Agency from designating the Bayfront as a Redevelopment area. Mel Morrell Mr. Morrell asked how much money has been spent to date on Morrell's Garage studying the Downtown area, noting the study that was made 359 Third AVenue by Williams and Mocine. Gene York Mr. York said he was on the Planning Commission at the time 72 Sandalwood Drive the Williams and Mocine study was done. This was d6ne in conjunction with the General Plan and was never adopted by the City Council. Mr. York noted that an economical feasibility study could reveal, for instance, that a downtown area would support a major department store and would take 20 acres. There may be 20 tenants in that particular area; however, the major tenant would generate more revenue, attract more buyers, and thereby increase the businesses of all adjacent stores and subsequently increase the taxes. The result would be that the whole area would benefit from the redevelopment. Adjourned regular meeting of City Council -3- March 21, 1974 Roy Adams Mr. Adams commented that many theories were voiced during the last election campaign (Sports World) that Chula Vista could not support major tenants. He was concerned with the property taxes, the assessed valuations, and if there was a decrease in property values, where would the tax dollars come from. Attorney Reed explained the term "freeze" and how it worked under the tax increment plan - specifically, how it would have no effect on lowering or raising the taxes. Mel Morrell Mr. Morrell asked if he, as a property owner in a redevelop- ment area, would be able to participate in the development, and what would be the likelihood'of obtaining financing. If it was deemed necessary to raze his building, what assurance would the property owner have that the building will be replaced. City Manager Thomson commented on the advantages of having the whole area working together in unison in upgrading. This affects the value in terms of investing, such as for a Savings and Loan - they gamble not only on inv~ting money for a particular enterprise but they look on the location and the area surrounding that enterprise. Lease of land In answer to Mr. York's question, Attorney Reed declared that the AGency has the power to lease land (long term lease as opposed to selling); however, the thrust of the redevelopment law is to turn the money back into the project. Tom Huntington Mr. Huntington asked when the tax freeze would take place. (Vogue Theater) Mr. Reed indicated it would be done after the plan is adopted by the A~ency. K. Niek Slijk Mr. Slijk remarked that a market analysis might cost as much Chamber of Commerce as $50,000 to $75,000. He asked where the money would come from if the redevelopment project didn't get established. Mayor Hamilton indicated that it would come from either the General Fund or Revenue Sharing. MAYOR'S BREAKFAST Mayor Hamilton invited everyone to his next breakfast to be held at the Lion's Service Center on April 1, 1974 at 7:30 A.M. BUSINESS ADVISORY Councilman Hyde commented on the criticism being received CON~ITTEE from the business community on the lack of sensitivity of the City Council to the matters of the business community. He remarked that it is now apparent that the Council will become deeply involved with the business community through the redevelopment program. In this respect, he felt the establishment of a Business Advisory Commission would be of great benefit to the Council to advise them on matters of particular interest to the City, as well as the business community in general. Councilman Hobel felt that forming another Committee or Commission was not the solution to the problem. There_is a gap in communication between the business community and the Council and it was incumbent upon both parties to work this out. Adjourned regular meeting of City Council -4- ~rch 21, 1973 Councilman Scott agreed adding there should be an openness of communication by both parties and that they should deal in facts. The way is now begun by the Mayor in initiating his "Operation Handshake" breakfasts. Councilman Scott added that perhaps the C~mber of Commerce could have more input from the City and vice versa. Mr. York noted that there were several groups now repre- senting the various areas of the business community in the City; however, in speaking of a redevelopment area, it is the City Council in its role as the Redevelopment Agency that will have to make the ultimate decision as to which areas will be involved. Roy Adams Mr. Adams questioned whether the business community would respond openly and honestly with the.Council noting that only a few people have spoken tonight. Mel Morrell Mr. Morrell suggested expanding the office of the Citizens Assistance Officer giving him som~latitmde to solve some of the problems that occur. Mayor Hamilton remarked that this was the direction given to the City Manager by the Council sometime ago and the City Manager is now working on this. Establishment of Mayor Hamilton asked that the Business Advisory Committee Committee held over consideration be held over for a period of six months at which time it will be discussed again. Mr. York commented that he has seen a lot of changes within the past few years of the attitude between the Chamber of Commerce and the City Council. He felt the six-month post- ponement of the Business Advisory Committee was good because the Chamber is now working on several various programs which, with the cooperation of the City, will be of great benefit to the economic development to the City as a whole. Justin Lanne Mr. Lanne indicated that his firm was interested in the Grubb and Ellis redevelopment project and will assist in any way they can. COUNCIL CONFERENCES Mayor Hamilton issued a moratorium on further Council Conferences until after the April 9 election. ADJOURNMENT The Mayor adjourned the meeting at 8:55 p.m. to the meeting scheduled for Tuesday, March 26, 1974 at 7:00 p.m.