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HomeMy WebLinkAboutrda min 1980/03/06 7 PM MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA Thursday - 7:00 p.m. March 6, 1980 A regular meeting of the Redevelopment Agency of the City of Chula Vista was held on the above date beginning at 7:00 p.m. in the Council Chambers of the Public Services Building, 276 Fourth Avenue, Chula Vista, California with the following: MEMBERS PRESENT Chairman Hyde; Members McCandliss, Scott, Gillow, Cox Members Absent None STAFF PRESENT Executive Director Cole, Community Development Director Desrochers, Special Counsel Reed, Development Services Administrator Robens, Community Development Coordinator Sanseverino, Senior Planner Pass ALSO PRESENT Michael McCann, Fred Borst, Joe Street, Jr., Bob Pierre, Richard Zogob, Ed Laguardia ITEM NO.1 - APPROVAL OF MINUTES It was moved by Member Cox, seconded by Chairman Hyde and unanimously carried to approve the minutes of February 7 and February 19, 1980 as mailed. ITEM NO.2 - RESOLUTION NO. 233 - APPROVING AND AUTHORIZING AND DIRECTING EXECUTION OF AN AGREEMENT FOR BOND COUNSEL SERVICES WITH JONES HALL HILL & WHITE Should the Agency decide to issue Industrial Development and Assessment bonds, the proposed contract for legal services should be entered into. Payment for these ser- vices is rendered upon the successful sale. Engagement of a bond counsel to ascer- tain a "fall back" position should be made so that the developer of the Focus Area can be assured of a certain number of parking spaces regardless of the UDAG. ITEM NO.3 - RESOLUTION NO. 234 - APPROVING AND AUTHORIZING AND DIRECTING EXECUTION OF PGREEMENT FOR INVESTMENT BANKING SERVICES WITH DREXEL BURNHAM LAMBERT, INC. It will be necessary to secure the services of an investment banking firm in order to issue assessment/revenue bonds. Mr. Michael McCann's experience while with Miller & Schroeder in effecting the Agency's Mortgage Revenue Bond and Construction Loan Note issues has been considered by staff to be most productive. The services of an investment banker include the structuring, pricing and marketing of an issue; therefore, the expertise of the individual involved is as important as the firm the person is associated with. For these reasons, Drexel Burnham Lambert is recommended due to the fact that Mr. McCann is now a vice president of the firm. ITEM NO.4 - RESOLUTION NO. 235 - AUTHORIZING THE ISSUANCE OF BONDS FOR FINANCING COMMERCIAL STRUCTURES BY BAY BOULEVARD CORPORATION Industrial Development Bonds (IDB) to finance the construction of the Bayfront Ramada Inn, restaurant and RV park were discussed at the last Redevelopment Agency 3/6/80 ~ ~--~~--- -2- Redevelopment Agency Meeting March 6, 1980 meeting. Since that time, Community Development has met with the Bay Boulevard Corporation, financial consultants and bond consultants. As a result, an IDB issue appears to be feasible. Community Development Director Desrochers introduced Mr. Michael McCann, represent- ing the Drexel Burnham Lambert firm. MICHAEL MCCANN DREXEL BURNHAM LAMBERT, INC. 555 California Street San Francisco, CA Mr. McCann told the Agency that items 2, 3, and 4 are to allow the Redevelopment Agency to provi de a vehi cl e for tax-exempt fi nanci ng in the Town Centre/Bayfront project areas. He proceeded to describe what each of the resolutions entail. Member Scott questioned whether or not the Agency (or a municipality) should be com- peting with private financing. Mr. Desrochers indicated he understood Member Scott's dilemma but could not share his feelings. He described the financing as a "tool authorized by State legisla- tion" to provide incentives to the private sector to build in redevelopment projects. Right now redevelopment agencies are in a period of financial constraints and al- though this tool is not a liability of the City or Agency, future situations should be handled on a case-by-case basis. In response to Chairman Hyde's question regarding selection of bond counsel, Special Counsel Reed noted that due to Mr. McCann's experience with other bond issues and his association with Jones Hall Hill & White, he supports staff's choice for bond counsel. Discussion ensued regarding Mr. McCann's capabilities with his new firm as compared to the capabilities of Miller & Schroeder. RESOLUTION NO. 233 OFFERED Offered by Chairman Hyde, the reading of the text was waived by unanimous consent, passed and adopted by the following vote, to-wit: AYES: Members Hyde, McCandliss, Gillow, Cox Noes: Member Scott Absent: None RESOLUTION NO. 234 OFFERED Offered by Member Cox, the reading of the text was waived by unanimous consent, passed and adopted by the following vote, to-wit: AYES: Members Cox, Hyde, McCandliss, Scott, Gillow Noes: None Absent: None 3/6/80 ~~--~-~-~-~- -3- Redevelopment Agency Meeting March 6, 1980 RESOLUTION NO. 235 OFFERED Offered by Chairman Hyde, the reading of the text was waived by unanimous consent, passed and adopted by the fo 11 owi ng vote, to-wit: AYES: Members Hyde, McCandliss, Scott, Gillow, Cox Noes: None Absent: None Chairman Hyde welcomed Mr. Bob Pierre (Bay Boulevard Corporation) to tonight's meeting and asked if he had any questions or comments. Mr. Pierre thanked the Agency for their consideration. The director stated Mr. Pierre has hired the firm of Leventhol & Horwath. (A hotel industry analysis firm to provide data necessary for the bond sale.) ITEM NO.5 - RESOLUTION NO. 236 - SUPPORTING THE SAN DIEGO UNIFIED PORT DISTRICT'S MASTER PLAN FOR PLANNING DISTRICT 7 The San Diego Unified Port District, together with the Chula Vista Redevelopment Agency, hired the firm of Sedway-Cooke to master plan the area west of 1-5 to the bulkhead line, from the Sweetwater Channel to the southern limits of the City. Con- sistent with the Coastal Act of 1976, the plan is being submitted to the State for certification. Planning District 7, incorporating the Chula Vista aspect of the entire plan, is consistent and supportive of the City's plan as reviewed by both the Planning and Community Development directors. A brief discussion ensued relative to the additional elongated arm to the boat launching facility and the plan being environmentally sensitive. RESOLUTION OFFERED Offered by Chairman Hyde, the reading of the text was waived by unanimous consent, passed and adopted by the following vote, to-wit: AYES: Members Hyde, McCandliss, Scott, Gillow, Cox Noes: None Absent: None ITEM NO.6 - REPORT: BAYFRONT UTILITIES An interim report regarding existing and necessary utilities in Bay Boulevard between "D" and "G" Streets has been submitted by Project Design Consultants. Also discussed in the report are water, drainage, gas, telephone, and conversion of overhead utili- ties. In response to Chairman Hyde's question about the metering station, Community Devel- opment Director Desrochers explained it is used to measure the flow to charge users; in this instance, it will calculate the flow from Anthony's and the adjacent new de- velopment. 3/6/80 ~ -~ --~-~--- ------ -4- Redevelopment Agency Meeting March 6, 1980 Community Development Coordinator Sanseverino explained the SDG&E 20B program. He noted the City could gain financial credits from undergrounding and substantial savings could be realized by the City and developers. Chairman Hyde asked that staff advise the Agency/Council of any way they may assist in influencing SDG&E. Mr. Desrochers stated a letter from the Mayor to SDG&E would suffice. MOTION TO PREPARE LETTER FOR MAYOR'S SIGNATURE It was moved by Chairman Hyde, seconded by Member McCandliss and unanimously carried that staff prepare a letter for the Mayor's signature indicating the City's and Agency's interest in favorable action by SDG&E with regard to undergrounding in the 20B program. ITEM NO.7 - REPORT: MARKETING PROGRAM FOR THE 5+ ACRES OF AGENCY OWNED BAY BOULEVARD PROPERTY As a result of the termination of Orange Development & Investment Company's Disposi- tion & Development Agreement, the Agency directed staff to prepare a marketing pro- gram along with an update of the sales price of the property. Member Scott questioned how the finder's fee is determined. The director commented that the actual fee would come from the lease of the property "off the top." This is a standard real estate practice. Legal Counsel should advise in order to avoid a misunderstanding by the broker. Mr. Desrochers continued that the fee is usually from 6-10% and would be payable upon the start of construction. MOTION TO ACCEPT REPORT WITH PROVISION It was moved by Chairman Hyde, seconded by Member Gillow and unanimously carried to accept the report with the provision that the finder's fee be paid upon commencement of actual construction. Member Gillow stated the last developer of this property lost out on its tenants perhaps because of lack of support from the Agency, and he hoped staff will advise when the Agency can and should meet with the developer. ITEM NO.8 - RESOLUTION NO. 237 - APPROPRIATING FUNDS FOR THE RELOCATION OF RESIDENTS AND BUSINESSES IN THE TOWN CENTRE AND BI\YFRONT REDEVELOPMENT PROJECTS Additional funds are now needed for direct relocation payments for businesses and residents in Town Centre and Bayfront redevelopment areas. These funds were not appropriated at the time purchases were authorized by the Agency in November 1979. 3/6/80 -~---~--~~~-~~-~~_. ~ ~ -5- Redevelopment Agency Meeting March 6, 1980 RESOLUTION OFFERED Offered by Member Scott, the reading of the text was waived by unanimous consent, passed and adopted by the following vote, to-wit: AYES: Members Scott, Gillow, Cox, Hyde, McCandliss Noes: None Absent: None MOTION REQUESTING RELOCATION SETTLEMENT REPORTS It was moved by Chairman Hyde, seconded by Member Scott and unanimously carried that staff provide the Agency with copies of the settlement reports for relocation/dis- location. ITEM NO.9 - REPORT: ALTERNATIVE DESIGNS FOR TELEPHONE BOOTHS At the February meeting, the Agency directed staff to prepare data comparing booth styles, availability and costs relative to public telephone booths on Third Avenue between "E" and "F" Streets. Member McCandliss remarked that the present phone booths, although functional, are not aesthetically pleasing. In response to Chairman Hyde's comment that this item be reviewed by the Design Review Board, Community Development Director Desrochers stated since an expenditure of funds is called for, direction should come from the Redevelopment Agency. MOTION TO REFER ITEM TO DESIGN REVIEW BOARD AND PROJECT AREA COMMITTEE It was moved by Chairman Hyde, seconded by Member Scott and unanimously carried to refer this matter to the Town Centre Design Review Board and the Town Centre Project Area Committee for recommendation by both bodies. Discussion followed with regard to revenues received by the City from the phone company. Community Development Coordinator Sanseverino indicated he would check with the phone company as to commi ss ions recei ved by the City. ITEM NO. 10 - STATUS REPORT: TOWN CENTRE II NEGOTIATION AGREEMENT WITH WALKER SCOTT PROPERTIES CORPORATION Since the Exclusive Negotiation Agreement with Walker Scott was executed in February, all parties have been contacted and arrangements have been made to meet with the in- dividuals involved. The director remarked that additional meetings will be scheduled with the shopping center tenants. 3/6/80 ?IC: 101'\ -6- Redevelopment Agency Meeting March 6, 1980 FRED BORST WALKER SCOTT PROPERTIES CORPORATION 908 Sherman Street San Diego, CA Mr. Borst stated his firm is making excellent progress. He discussed the significance of Phase I, meetings scheduled between legal counsels of all parties involved, and monthly progress reports to be submitted to the Agency. In addition, he noted that Walker Scott has requested a meeting be arranged with the three property owners that are represented in the project. Finally, Mr. Borst told the Agency that his firm will provide a list of tenants in- terested in occupying space in the center. MEMBERS' COMMENTS Member Cox remarked that the benches on Third Avenue are weathering. Mr. Desrochers stated that the service agreement on the benches has expired but a maintenance agreement has been executed that would provide for the upkeep of the benches. Member Scott expressed concern with the IDB financing method. He felt that since the Agency seems to be "giving quite a bit away," it should provide more than just the incentive to come in. And, there should be assurances that the Agency utilize leverage with the developers so the Agency receives something for their efforts. MOTION TO PROVIDE REPORT It was moved by Member Scott, seconded by Member Cox and unanimously ca rri ed tha t staff report back on this item. In reference to a unanimous consent request to be considered by the City Council tonight, Member Scott pointed out that since the City Council adjourned to consider one particular item, the unanimous consent item could not be entertained. City Attorney Lindberg concurred with Member Scott's comments. Chairman Hyde announced he will be meeting with business merchants from the Chula Vista Shopping Center on Monday, March 10. Executive Director Cole distributed copies of the one-page audit report prepared by Agency accountant, Wayne Carroll. Mr. Cole also stated that as of 8:30 p.m. on Friday, March 7, the railroad crossing on "J" Street would be closed. Chairman Hyde stated that following a short recess, the Redevelopment Agency workshop would convene. ADJOUR"'NT ~ Ch,'~" fly'" ,dj"m,d th, ~,t1", " 8,07 p.m. Paul G. Desrochers, Executive Secretary 3/6/80 '---.~_._~.- -~~-------'~---_._~----'--~'--~--------~-'-