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HomeMy WebLinkAboutrda min 1980/06/05 7 PM MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday - 7:00 p.m. June 5, 1980 A regular meeting of the Redevelopment AgenfY 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, Planning Director Peterson, Administrative Analyst Buchan ALSO PRESENT Fred Borst, Richard Zogob, Nick Turk, David Materna, Max James, Craig Clark, Michael Gay ITEM NO.1 - APPROVAL OF MINUTES It was moved by Member McCandliss, seconded by Member Scott and unanimously carried by those present to approve the minutes of May 1,6 and 20, 1980 as mailed. At this time, the Chairman announced the Executive Director's request for an Agency recess to a City Council Executive Session for Personnel negotiations. AGENCY RECESS The meeting was recessed at 7:03 p.m. The meeting reconvened at 7:20 p.m. ITEM NO.2 - REPORT: SALE OF 5.1 ACRES OF PGENCY OWNED PROPERTY ON BAY BOULEVARD On March 6, 1980, the Redevelopment Agency approved a marketing plan for the 5.1 acres of Bay Boulevard property owned by the Agency. A finder's fee and an initial marketing period of from 60 to 90 days is provided by the plan. Several proposa 1 s have been received including the development of a 9,000+ square foot El Torito Restaurant, a 136-room motel and coffee shop, and another restaurant of not less than 6,000 square feet. Community Development Director Desrochers reported that representatives of C. W. Clark were present to request a favorable decision from the Agency relative to their proposal for the subject property. Upon acceptance, an Exclusive Negotiation Agreement will be prepared along with a $25,000 non-refundable deposit. Anyex- tensions of the agreement would require an additional $10,000. 6/5/80 -------. -2- Redevelopment Agency Meeting June 5, 1980 DAV ID MATERNA C. W. CLARK 6236 Camino del Rincon San Diego, CA Mr. Materna introduced Mr. Max James, Executive Vice President of Days Inn; Mr. Craig Clark, developer and President of C. W. Clark; and Mr. Michael Gay, legal counsel for C. W. Clark. MAX JAMES C. B. DAY REALTY OF CALIFORNIA 601 University Avenue, Suite 150 Sacramento, CA Mr. James told the Agency his firm has studied a site in Chula Vista for two years. He briefly discussed how the firm ranked among other hotel corporations worldwide and also talked about the firm's major assets. In response to Member Scott's ques ti on, Mr. James remarked that Days Inn is com- parable to the major national hotel chain of Holiday Inn. One of the major dif- ferences being that Days Inn charges 30% less than Holiday Inn because extra com- modities are not included. He noted that the newest Days Inn hotel is in Denver, Colorado. (Photographs of the Sacramento hotel were distributed to the Agency.) Member McCandliss questioned the architecture of Days Inn described in staff's report as a "standard design." Mr. Desrochers reiterated that their architecture may have to be upgraded to be eligible for mortgage revenue bonds although he has not seen the Sacramento photo~. MICHAEL GAY 3314 Lomas Cerenas Drive Escondido, CA Mr. Gay, legal counsel for C. W. Clark, commented that the proposed Chula Vista Days Inn should exceed any that has been previously constructed. Member Gillow asked if Cask 'N Cleaver, Houlihan's or Marie Callender have ex- pressed any interest regarding this project. Mr. Gay stated that none had. In response to Chairman Hyde's question regarding a timeframe, Mr. Gay answered that the biggest stumbling block would be with the Coastal Commission. They expect approval from this body in six months. Discussion followed regarding financing of the project. Mr. James indicated that Days Inn is interested in the most economical means of financing and is most in- terested in mortgage revenue bonds. For Member Scott's information, he stated that the highest rate to make the project profitable would be 12 to 12~%. 6/5/80 -3- Redevelopment Agency Meeting June 5, 1980 MOTION TO ALLOW FLEXIBILITY It was moved by Member Scott and seconded by Member Gillow to allow the flexibility of the utilization of redevelopment bonds by the developer. Chairman Hyde stated that the motion is a peripheral question to the main subject. MOTION WITHDRAWN Member Scott withdrew his previous motion until the main subject was addressed and the second concurred. Chairman Hyde suggested that since Days Inn is not well known in this area, two representatives of the Agency should travel to Denver to view the most recent Days Inn development, and if that site was found to be disappointing, the proposal would be disregarded immediately. Mr. James indicated the Chairman's suggestion would be acceptable but he expressed concern about the time delay involved. Discussion followed relative to staff's recommendation to enter into an agreement with C. W. Clark. Mr. Desrochers indicated that with the potential of Ramada Inn and an El Torito Restaurant development, the City is in a better position to obtain a well-known restaurant for the balance of the project. Member Cox arrived at this time (7:54 p.m.). MOTION TO VISIT DAYS INN It was moved by Member Scott and seconded by Chairman Hyde to accept staff's recom- mendation with a clause "a contingency that a member of the Agency (or staff) would actually visit on-site to Days Inn in the Denver or Phoenix area and come back to the Agency with a proposal to accept or reject it." (Further, that if the devel- oper(s) meet Agency criteria for bond financing, that same be given Agency con- sideration at the appropriate time.) The motion passed, 4-0, with Member Cox abstaining. Member Cox informed members that he will be in Phoenix the following week and per- haps he could visit Days Inn in that area. Chairman Hyde stated then that Member Cox would be the Agency representative. Mr. James expressed concern that the restaurant operation could not be reviewed at this location. ITEM NO.3 - REPORT: CONSIDERATION OF WORK PROGRAM FOR THE LOCAL COASTAL PLAN On January 31 of this year, representatives of the Agency and the State Coastal Commission met in an attempt to begin a dialogue relative to the legal impasse that exists between both entities. As a result of this meeting, the preparation 6/5/80 -4- Redevelopment Agency Meeting June 5, 1980 of a Work Program to evaluate our Local Coastal Plan has been proposed. This pro- gram was accepted on the basis the Agency would not expend additional monies for the project, that the Agency's litigation would not be jeopardized and that the selection of the consultants would be subject to Agency approval. In response to Chairman Hyde's query, the director remarked that the Work Program has been discussed with the regional coastal commission staff and Pacific Legal Foundation. Member Scott expressed concern that staff time and expenses may not be reimbursable from state or federal funds; he stated that he could not vote for the study unless these expenses are absolutely reimbursable. Mr. Desrochers clarified that since we do not know the exact amount of staff time to be expended, it would be difficult to project its reimbursement. He assured the Agency that the stipulation that all staff costs be reimbursed would be out- lined in a cover letter to the State. MOTION TO INCLUDE PROVISO It was moved by Member Scott, seconded by Member Cox and unanimously carried that the Work Porgram include the proviso that staff time be reimbursed. MOTION TO ACCEPT STAFF RECOMMENDATION It was moved by Chairman Hyde, seconded by Member McCandliss and unanimously car- ried to accept the staff recommendation that the proposed Work Program be presented to the State Coastal Commission for approval and funding. ITEM NO.4 - REPORT: STATUS - WALKER SCOTT/GEORGE GENTRY COMPANY Copies of a memorandum dated June 5,1980 from the Walker Scott Properties Corpora- tion were distributed to members. The three major topics discussed in the memo i rf- cluded the DDA, Development Plan, and Negotiation with other owners and tenants in the Center. Also included with the memo was a draft of an agreement with Sears entitled "Option to Exchange Real Property." (Prior to the meeting, the latest Walker Scott status report was distributed to members and staff.) FRED BORST WALKER SCOTT PROPERTIES CORP. 908 Sherman Street San Diego, CA Mr. Borst discussed the June 5 status report relative to the overlay of the Chula Vista Shopping Center that depicts the various ownerships in the area, the linkage between the shopping center and Sears, and the footprints of the proposed Walker Scott. His firm will now prepare a time schedule for the DDA. In addition, Mr. Borst suggested to the Agency that a workshop be held sometime in July. Mr. Borst further discussed the possibility of expanding the center by closing off Fifth Avenue and the relocation of Sears' TBA facility. 6/5/80 ---------~----- -5- Redevelopment Agency Meeting June 5, 1980 Member Scott mentioned that the Council has never taken a position on Fifth Avenue and perhaps now it would be appropriate for staff to review previous reports on this subject to bring back to Council. MOTION FOR REPORT ON FIFTH AVENUE CLOSURE It was moved by Member Scott, seconded by Member Cox and unani~ously carried that staff/City Council look into previous reports on the closing of Fifth Avenue and make a recommendation to the City Council one week from Tuesday (June 17). Mr. Borst assured Agency members that Walker Scott would not recommend anything to the City or citizens of Chula Vista that would not be agreeable to them. Chairman Hyde asked how proceedings are with Mr. Nohl. In response, Mr. Borst indicated that Walker Scott is preparing an appraisal for the western portion of the center. They would like to pursue this phase immediately depending upon Carter Hawley Hale's acceptance of the developer's offer. Relative to the owrkshop session suggested by the developer, Mr. Borst informed the Agency that they would like to entertain two sessions in July. Community Development Director Desrochers recommended that since staff would need time to evaluate a new plan, perhaps a short workshop following the regular July Agency meeting and a more lengthy session later in July would be appropriate. MOTION TO ACCEPT REPORT It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried to accept the report. The director noted that the Exclusive Negotiation Agreement between Walker Scott and the Redevelopment Agency will expire in August. At that time, the Agency may wish to extend or terminate the agreement, or proceed to another phase. ITEM NO.5 - RESOLUTION NO. 248 - ENTERING INTO OWNER PARTICIPATION AGREEMENT WITH ANTHONY IZUEL Conceptual plans for the construction of a commercial office building at 237 Church Avenue have been approved by the Design Review Board. The Negative Decla- ration issued found that no significant impact would result. Community Development Coordinator Sanseverino briefly described the project in- cluding the in-lieu parking fee and the work of fine art. Member McCandliss questioned why the first and second floors on the rendering were devoid of windows. Administrative Analyst Buch explained that the rendering (Bauhaus design) on display show the wood, and what is not colored in will be of stucco; further, the windows are provided in the courtyards of the structure and on the streets. 6/5/80 -6- Redevelopment Agency Meeting June 5, 1980 MOTION TO CERTIFY NEGATIVE DECLARATION It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried to certify Negative Declaration IS-80-60. 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: TOWN CENTRE DESIGN REVIEW BOARD POSITION STATEMENT REGARDING PUBLIC IMPROVEMENTS IN TOWN CENTRE I A memo on public improvements and design within the Town Centre I project area was prepared by the Design Review Board Chairman and described members,' concerns. As a result of this memo, a position statement has also been prepared. MOTION TO ACCEPT POSITION STATEMENT It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried to accept the Design Review Board Position Statement. ITEM NO.7 - REPORT: REQUEST FOR RENTAL ADJUSTMENT Due to pending relocation, the operators of Arnold's Garage, 326 "F" Street, have reduced activity. Because of this level of activity, it would not be possible to pay market value rent for the entire facility. Therefore, the business operators have requested a rental adjustment from the market guidelines adopted by the Agency. MOTION TO APPROVE REQUEST FOR RENTAL ADJUSTMENT It was moved by Member Scott, seconded by Member Cox and unanimously carried to approve the request for rental adjustment. ITEM NO.8 - REPORT: FINANCIAL STATUS A status report of the Chula Vista Redevelopment Agency as of April 30, 1980 pre- pared by the Agency Treasurer was provided. Chairman Hyde remarked that Agency members would be interested in a more detailed discussion of the financial status report. Member Scott suggested that reports such as these be included in their packets as informational items such as the City Council receives. ADJOURNMENT Chairman Hyde adjourned the meeting at 8:20 p.m. to the Redevelopment Agency work- shop immediately following. p~~¿, '""ue, 6/5/80