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HomeMy WebLinkAboutcc min 1980/08/14 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA Held Thursday - 4:00 p.m. August 14, 1980 An adjourned regular meeting of the City Council of the City of Chula Vista, California was held on the above date beginning at 4:00 p.m. in the Council Conference Room, City Hall 276 Fourth Avenue. ROLL CALL Councilmen present: Mayor Hyde, Councilmen Scott, Gillow, McCandliss Councilmen absent: Councilman Cox Staff present: City Manager Cole, City Attorney Lindberg, Assistant City Manager Asmus, Director of Planning Peterson, Director of Community Development Desrochers At this time, Mayor Hyde recessed the Council meeting to the Redevelopment Agency meeting. It was noted that all Members were present with the exception of Member Cox. 1. REDEVELOPMENT AGENCY Director of Community Development Desrochers reported that WORKSHOP - FINANCIAL during the past fiscal year, approximately $100 million in CONDITION financial instruments were issued under the name of the Agency, The Tax Allocation Bond Sale of 1979 is the only issue con- trolled by the Agency. The 1975 Bayfront issue has been defeased by Agency action; the entire issue is now in a self-liquidating trust -- the bonds AAA rating. Mr. Desrochers added that out of the $3.4 million issue, $2.3 was received with the balance going to reserve repayment funds and bond discount and about $500,000 went to the consultant and staff time for the LCP; $1 for land acquisition and $855,000 to the Trust Account for Town Centre I. Administrative Analyst Sanseverino, referring to the oxhibits, summarized the funds for the Bayfront/Town Centre Bond Issue and the amounts expended in the various major transactions of the Agency. Mr. Sanscverino reported on the estimated re- ceipts and disbursements for the Redevelopment Fund activities for the next fiscal year (July 1980 - June 1981). The anti- cipated funds available are $6,179,159 and projected dis- bursements - $3,881,015. Report accepted It was moved by Chairman Hyde, seconded by Member Gillow and unanimously carried by those present that the report be accepted. ADJOURNMENT Chairman Hyde adjourned the meeting at 4:19 p.m. to the next regular scheduled meeting of September 4, 1980 at 7:00 p.m. CITY COUNCIL MEETING At this time, the City Council meeting reconvened. 1. INCLUSIONARY ZONING Director of Planning Peterson referred to his written report explaining the purpose and background of submitting the in- clusionary zoning policy. Four types of inclusionary zoning programs were submitted for Council consideration: (1) Policy Option I is the most stringent from the standpoint of regulation; (2) Policy Option II is the "middle-of-the-road proposal" which requires the developer to participate to a significant extent in the City's effort to resolve the housing problems; (3) Policy Option III is consistent with the private-public partnership but quite voluntary to spur the substantial construction of housing for low and moderate income families; (4) Policy Option IV is a "do nothing" policy and generally dedicated to the proposition that the problems will solve themselves. Policy Option I1 Mr. Peterson stated that Option II is the one endorsed and recommended by both staff and the Planning Commission. Adjourned Regular Meeting -2- August 14, 1980 General discussion Council discussion followed with staff responding to questions relative to the Policy Option II. Summarizing the Option: (1) a developer of 20 residential units or more would have to devote 10% of the units to sell for a price substantially lower than the other units; (2) the developer is not expected to underwrite any portion of the cost; for the 10% factor, the developer can use several methods such as reducing lot size, reducing the size of his units, provide fewer built-ins, and perhaps reducing the amount of street frontage of the units. In addition, the developer would have to devote 3% of the units to housing which will sell or rent to families earning less than the median income in San Diego County; however, in lieu of this provision, the Council may accept funds in an amount equal to 3% of the market value of the project. Councilman Scott commented that inclusionary zoning could create more problems than it is solving adding that this whole matter was brought about by the fallout of Proposition 13. Councilman Scott declared that the Legislature should have to resolve the problem -- that it was one that was larger than the City itself can solve. Mayor Hyde remarked that the Council should first address the problem to see whether or not something can be done administra- tively to solve the issues. He added that it was a regional problem and other entities in the metropolitan area should be contacted to see if they would be willing to cooperate in solving the issue. Orange County Inclusionary Mr. Peterson discussed the Orange County policy: any Policy developer of 5 units or more must devote 25% of the units to low and moderate income housing; 5% must be affordable by people earning 80% of the median; 10% can be earning 80%-100%; and another 10% can be earning 100% to 120% (of the median income). They have approved a total of 6300 dwelling units in the last year and half; of this, 2900 units have been affordable by low and moderate income housing or 45% more than their policy requires. Mr. Peterson added that Orange County has a "credit arrangement" whereby if a developer of a 100-unit tract of $250,000 houses does not care to include in that expensive development the lower-cost houses, he can arrange to supply those units at another location. A second crop of builders have now specialized in building these lower-income housing units, and the developer of the high-cost homes buys his 25% from the developer of these low-cost units thereby resolving his obligation. Public comments Bob Graham, Palace Gardens, discussed his wife's frustrating experience in living in an area of high and low-cost homes. He suggested that the answer to the problem would be a "no frills mobile home park" -- one without swimming pools and recreational activities. Assemblyman Deddeh has promised to try to push legislation which would facilitate people owning their own mobile home lot and homes. Mr. George Hilger, Brentwood Mobile Home Park, objected to the idea of subsidization based on economic, social, moral and equality measures. His solution was that the City borrow money from the national government and buy and develop land in the City for "no frills" mobile home parks. Mr. Dick Brown, Gersten Companies, spoke against the adoption of the inclusionary zoning and suggested the City provide in- centives to the developers to enable them to provide the low- cost housing, such as a waiver of the park land dedication fees, school fees, residential construction tax, etc. Mr. Brown remarked that inclusionary zoning is "self-defeating and a bad idea." Adjourned Regular Meeting -3- August 14, 1980 Mr. John Kolsters, Brentwood Mobile Home Park, discussed a European concept which his cousin works on -- the Belgium government provides housing to the young which during their lifespan they can build up an equity; however, the same homes are then sold to an older person at a lower price. These people cannot build up equity but rather, upon their death, the homes goes back to the finance company. Mr. Jon Miller, Realtor, questioned the time element involved in adopting an inclusionary zoning policy and the funds (from other sources) that are available for the program. He suggested that the Council allow those organizational groups that were contacted on this issue (realtors, Chamber of Commerce etc) to form a committee to study the matter and decide whether or not there needs to be any kind of policy. Mr. Miller added that the three options presented today, in his opinion, "stink". Mr. Ed Elliott, local developer, felt the Orange County policy should he studied more indepth and perhaps copied for this area. Mr. Mike Foote, builder, asked the Council to take advantage of the funds available under Section 8 of the Block Grant funds and other financial sources to help resolve this issue. Mr. Jack Mann, ADMA, discussed the "political and philosophical question" of attaining the goals of achieving low and moderate income housing. Mr. Mann suggested that it be "society" that should pay for this goal and the only way to do this is for some type of tax that impacts on a non-aggressive basis for the entire segment of the society. Public input concluded The Mayor concluded the public input at this time. Motion for staff report on It was moved by Mayor Hyde, seconded by Councilwoman McCandliss Orange County Inclusionary and unanimously carried by those present that the staff look Zoning Policy further into the Orange County program to see if it can be of any use to the City of Chula Vista. Present policy The Council briefly discussed the City's present policy and those projects now in progress. Motion for recommendation It was moved by Councilman Scott, seconded by Councilwoman for current projects McCandliss and unanimously carried by those present that staff be directed to make a recommendation to the Council whether or not these projects should be placed aside -- whether or not the requirements should be waived for those projects "on-stream Mr. Peterson indicated that it would take approximately three weeks for the report. 2. CITY MANAGER'S REPORT None 3. MAYOR'S REPORT None 4. COUNCIL COMMENTS It was moved by Councilman Gillow, seconded by Councilwoman McCandliss and unanimously carried by those present that staff look into the larger cars (City Manager, City Attorney) and see if they should he replaced with a compact or a more effi- cient automobile. ADJOURNMENT Mayor Hyde adjourned the meeting at 6:05 p.m. to the meeting scheduled for Tuesday, August 19, 1980 at 7:00 p.m. Jennie M. Full, CMC CITY CLERK ~