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Home My WebLink Aboutrda min 1980/12/04 MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, December 4, 1980 - 7:00 p.m. Council Chambers - 276 Fourth Avenue ROLL CALL MEMBERS PRESENT Chairman Hyde; Members Scott, Gillow, McCandliss Members Absent Member Cox STAFF PRESENT Executive Director Cole, Special Counsel Reed, Community Development Director Desrochers, Redevelopment Coordin- ator legler, Development Services Administrator Robens ALSO PRESENT Charles Adams, Fred Borst, Fred Waldeck, Kenneth Ough, Richard Wilson, Glen Fithian, Don Innis, Ralph Roesling, Richard logob, Joann Schaus ITEM NO.1 - APPROVAL OF MINUTES MSUC (Scott/Gillow) to approve the minutes of November 6, 1980 as mailed. ITEM NO.2 - REPORT: CHULA VISTA MARINA AND RV PARK - REQUEST FOR ASSISTANCE IN OBTAINING FINANCING Developers of this project are requesting the issuance of tax exempt securities by the Redevelopment Agency. The plans for a 600-slip marina, 235-space RV park, a major restaurant and support facilities were reviewed last month by the Agency. Member Scott abstained from total discussion on this item due to a possible conflict of interest on account of his employment with the firm of Merrill Lynch. (Member Scott left the meeting at 7:05 p.m.) FRED WALDECK MUNICIPAL FUNDING CORPORATION OF AMERICA 155 So. Madison Street, Suite 301 Denver, Colorado Using flip sheets, Mr. Waldeck gave a detailed description of his firm's leasing proposal. In answer to Chairman Hyde's question, Mr. Waldeck indicated the duration of the 1 ease woul d be 20 years and the fi nanci a 1 advantages to the Wil sons woul d be tax exempt financing. Mr. Desrochers pointed out that it would be appropriate to amend the boundaries of the Bayfront Redevelopment Project if the Agency wishes to participate. 12/4/80 -2- Redeve 1 opment Agency Meeti ng December 4,1980 CHA RLES ADAMS JONES HALL HILL & WHITE 2250 Union Bank Building 50 California Street San Francisco, CA Mr. Adams explained that as a result of default by the developer (Wilson), the City could terminate agreement with them and assume operation of the marina. KENNETH OUGH WESTERN REGIONAL FINANCE DEPARTMENT MERRILL LYNCH WHITE WELD 707 Wilshire Boulevard, Suite 5050 Los Angeles, CA Mr. Ough explained the default reserve fund procedures set aside on behalf of both the Wilsons and the City. MOTION TO ACCEPT STAFF REPORT MSC (Hyde/Gillow) to accept staff report (to proceed w'ith the preparation of doc.uments, determination of the evaluation of all problems that come to light, including to de- termine if we need special financial consultants). Member Scott returned (7:50 p.m.). ITEM NO.3 - REPORT: UPDATE OF PENDING PROJECTS An Exclusive Negotiation Agreement between C. W. Clark and the Redevelopment Agency was entered into in October. An owner participation agreement has been approved with Joe Street for well over a year. The director stated that lack of financing has stalemated the Joe Street project. MOTION TO ACCEPT REPORT MSUC (Scott/McCandliss) to accept the report. ITEM NO.4 - REPORT: COASTAL COMMISSION LITIGATION The Superior Court will hear the City's complaint against the California Coastal Commission on December 1, 1980. Special Counsel Reed commented that a decision is anticipated about the end of January. MOTION TO PREPARE LETTER OF THANKS MSUC (Hyde/Gillow) to direct staff to prepare a letter of thanks for the services of the Pacific Legal Foundation, particularly Howard Susman, for an excellent presenta- tion before Judge Butler; and, secondly, address similar letter to City of Oxnard expressing appreciation for the participation and presentation of their City Attorney on behalf of our case. 12/4/80 -3- Redevelopment Agency Meeting December 4, 1980 ITEM NO.5 - RESOLUTION NO. 274 - AUTHORIZING THE CHAIRMAN TO EXTEND THE EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND WALKER SCOTT PROPERTIES CORPORATION UNTIL JANUARY 8, 1981 At the November Agency meeting, the Exclusive Negotiation Agreement between Walker Scott and the Redevelopment Agency was extended for a 30-day period. Mr. Borst, President of Walker Scott, is requesting another extension in an effort to resolve the problems concerning utility relocation. Redevelopment Coordinator Zegler discussed his meeting with SDG&E, Carter Hawley Hale and Walker Scott. RESOLUTION OFFERED by Member Scott, the reading of the text was waived by unanimous consent, passed and adopted unanimously. ITEM NO.6 - REPORT: HEIGHT RELATIONSHIP/DESIGN CONCEPT FOR TOWN CENTRE FOCUS AREA MID-RISE ITEM NO. 6a - RESOLUTION NO. 275 - RECERTIFYING EIR-79-3, AMENDING THE TOWN CENTRE FOCUS AREA MASTER PLAN AND APPROVING THE DESIGN CONCEPT OF THE TOWN CENTRE FOCUS AREA RESIDENTIAL COMPONENT II A model of the proposed mid-rise was constructed to show height and mass relationships as directed by the Agency in November. DONALD INNIS, PRESIDENT INNIS-TENNEBAUM ARCHITECTS, INC. 1250 Sixth Avenue, 6th Floor San Diego, CA Mr. Innis gave a detailed description of the mid-rise structure on display. JOANN SCHAUS JOHN P. SCHAUS DEVELOPMENT, INC. 8055 E. Thomas Road, #H-I02 Scottsdale, AZ 85251 Ms. Schaus, representing, John P. Schaus Development, Inc., briefly discussed her findings on the project. She commented that in an attempt to establish a "village" effect, the rooflines of the Focus Area are beginning to blend with the treetops creating a flattering effect. MOTION TO ACCEPT REPORT MSUC (Hyde/McCandliss) to accept the report. RESOLUTION OFFERED by Member Scott, the reading of the text was waived by unanimous consent, passed and adopted unanimously. Chairman Hyde requested the model be made available for viewing in the City Hall complex. 12/4/80 -4- Redevelopment Agency Meeting December 4,1980 ITEM NO.7 - REPORT: JIMMY'S RESTAURANT REQUEST In November, staff was directed to forward the Agency's request that the Focus Area developer meet with the restaurant owner to discuss the possibility that Jimmy's can be accommodated. Mr. Desrochers noted that he and special counsel will be meeting with the owners of the shopping center. In the meantime, it is up to the developer and the owner of Jimmy's to negotiate. City staff will make every effort, though, to keep Jimmy's Restaurant in the center. MOTION TO ACCEPT REPORT MSUC (Scott/Hyde) to accept the report. ITEM NO.8 - REPORT: REQUEST FOR RENT REDUCTION The Goodrich Surplus store on F Street is being relocated to the former Sawbuck Furniture Store on Third Avenue due to the Agency's acquisition on F Street. For three months, the store must pay double rent, consequently relief from this financial burden has been requested. Community Development Director Desrochers noted that the rear of the newly relocated Goodrich store has been repainted without regard of the Agency's signing and painting policies. The tenants have been notified they must comply with these requirements. In an attempt to assure that Goodrich will adhere to Agency design criteria, a 50% reduc ti on in rent is recommended. MOTION FOR REDUCTION OF RENTS MSUC (Scott/Gillow) to forgive double rent payment when tenant complies with appro- priate signage, then allow the 2/3's reduction, and accept the report. ITEM NO.9 - REPORT: UDAG PARKING STRUCTURE Should the City not be awarded the $3.8 million UDAG, staff has prepared alternate steps for the Agency to review. MOTION TO ACCEPT REPORT MSUC (Scott/Hyde) to accept the report. Mr. Desrochers remarked that he is still in frequent contact with our HUD representa- tive in Washington DC, Ms. Boylan. She is attempting to have the leverage ratio raised to 9:1. HUD requests staff's recommendation by Tuesday, December 9. Chairman Hyde stated that a special Agency meeting could be held Tuesday night with this regard. MOTION TO PREPARE FALLBACK POSITION MSUC (Hyde/Gillow) to direct staff to investigate and prepare a possible fallback position to respond to HUD indicating that we are looking for the full grant, but we will see what we can do on a full scale. 12/4/80 -5- Redevelopment Agency Meeting December 4, 1980 ITEM NO. 10 - RESOLUTION NO. 276 - ENTERING INTO AN OWNER PARTICIPATION AGREEMENT WITH TOM MONEY The Design Review Board recommends conditional approval of plans for the exterior remodeling of 301-305 Third Avenue. The director narrated a brief slide presentation of Mr. Money's site plan; tile samples were also reviewed by members. RESOLUTION OFFERED by Member Gillow, the reading of the text was waived by unanimous consent, passed and adopted unanimously. ITEM NO. 11 - REPORT: STATUS OF APPROVED BUT NOT COMPLETED OWNER PARTICIPATION AGREEMENTS After reviewing departmental files, eight major approved projects were found to be uncompleted. MSUC (Scott/Hyde) to accept staff recommendation. ITEM NO. 12 - RESOLUTION - APPROVING PARTNERSHIP DIVISION AGREEMENT AS AMENDMENT TO CENTRE CITY ASSOCIATES LIMITED PARTNERSHIP AGREEMENT In order to effectuate changes to the partnership agreement, the Disposition & Development Agreement between the Redevelopment Agency and Centre City Associates requires these changes to be approved by the Agency. Discussion ensued regarding advantages of the amendment. Special Counsel Reed advised that there is no advantage to the City, we are simply accommodating the tax problems of the various entities associated with Centre City Associates. MOTION TO HOLD OVER ITEM MSUC (Scott/McCandliss) to hold over this item to Tuesday, December 9, following the regular City Council meeting. Special Counsel Reed indicated he would prepare a report for Agency members' infor- mation. ITEM NO. 13 - RESOLUTION NO. 277 - APPROVING THE FILING OF ANNUAL REDEVELOPMENT STATUS REPORT WITH STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT The State Redevelopment Law requires the Agency to file a copy of its annual report with the State Housing & Community Development Department. RESOLUTION OFFERED by Member Scott, the reading of the text was waived by unanimous consent, passed and adopted unanimously. 12/4/80 -6- Redevelopment Agency Meeting December 4,1980 CHAIRMAN'S COMMENTS MOTION TO HOLD SPECIAL MEETING MSUC (Hyde/Gillow) to hold special meeting of Agency following regular City Council meeting on December 9 (to cover two items--LCP litigation and Centre City Associates Partnership Agreement amendment--discussed tonight). ADJOURNMENT at 8:59 p.m. to special meeting of Dee 9,1980 and January 8, 1981. ¿ Executive Secretary 12/4/80