HomeMy WebLinkAboutrda min 1981/05/07 4:04 PM
MINUTES OF AN ADJOURNED REGULAR MEETING OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA
Thursday, May 7,1981 - 4:04 p.m. Council Conference Room - City Hall
ROLL CALL
MEMBERS PRESENT Chairman Hyde; Members Cox, McCandliss, Gillow
Members Excused Member Scott
STAFF PRESENT Executive Director Cole, Community Development
Director Desrochers, Special Counsel Reed, Redevelop-
ment Coordinator legler, Agency Attorney Lindberg,
Assistant City Manager Asmus, PAPE Director Thomson
ALSO PRESENT Bud Wilson, David Wilson, Glen Fithian, Dr. and Mrs.
Claude Gruen
1. REPORT: MARKET AND FINANCIAL ANALYSIS OF THE PROPOSED
CHULA VISTA MARINA/RV PARK
After three years of planning and discussion, concept plans for the development of
a 600-slip marina and a 235+ site RV park proposed by the Wilson Group of this
City were reviewed by the Agency in December 1980. In February 1981, the developer
requested the City consider sponsorship of certificate financing for the develop-
ment. The Agency authorized initiation of proceedings on the basis that a feasi-
bility study be prepared.
Chairman Hyde explained that in order to give the principals involved a fair oppor-
tunity to discuss the development, this afternoon meeting was called. However, he
indicated that no action would be taken until the regularly scheduled meeting
tonight.
Community Development Director Desrochers reiterated that it would be in the City's
best interests to encourage development of water-oriented uses on the Bayfront.
Accordi ng to the Gruen study, the Ci ty woul d be ob 1 i gated to make payments on the
certificates if the developer was unable to do so. Due to the City's position
budget-wise, and under current market conditions, the project is too risky at this
time for Agency participation.
DAV I D l~ILSON
WILSON GROUP
P.O. Box 1115
Chula Vista, CA 92012
Mr. Wilson briefly commented on the history of the marina concept. He noted that
three years ago he was correctly steered to the Port District by the City Manager
for conceptual discussions of his project. Mr. Wilson then cited the unfortunate
distribution of the consultant's draft study and subsequent comments by the press
one month earlier.
Marber McCandl i ss expressed concern re 1 ati ve to contradi ctory fi gures in the draft
and final reports. In response, Mr. Wilson suggested that they, as developers,
could do better than the Gruen study represents. He proceeded to distribute copies
of the Wilsons' projections based on figures of marina income and expenses.
5/7 /81
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Redevelopment Agency -
Adjourned Regular Meeting May 7, 1981
The developer discussed current reservations for boat slips, at $5.50 per square
. foot, and marina income and expenses report items.
Dr. Gruen briefly discussed the sources of the study. He noted that there is a
mistake in the report in Table 2 on page 13. The heading of the table, "Conservative
Estimate" shoul d read "Estimate of Consul tant." The consultant also pointed out
that the Williams-Kublebeck survey on the economic impact of the boating industry
referenced in the study was not a nationwide survey, but was based on southern
California experiences.
Discussion ensued regarding the debt service table on page 11 of the study.
RICHARD (BUD) WILSON
WILSON GROUP
Mr. Wilson summarized that the figures obtained on both sides are purely guesswork
and that no payments are due by the developer for almost 18 months.
In response to the developer's concern, Mr. Desrochers clarified that the Gruen
study must be made available to the press since it would be considered at a public
Redevelopment Agency meeting.
Member Cox questioned the possibility of phasing the marina portion of the project.
Dr. Gruen stated that if economics of scale exist, there may be problems with
phasing.
Member McCandliss asked the consultant if a bond sale would be justified if the
developer had more time and more money. Dr. Gruen replied that he did not feel
that it would be cost effective to proceed with a bond sale for the construction
of a marina based on the Wilson Group's current proposal.
ADJOURNMENT at 5:30 p.m. to the regular meeting of May 7, 1981 at 7:00 p.m. in
the Council Chambers. ;;fil;l£
h 'O~Jh--
Paul G. Desrochers, Executive Secretary
5/7/81
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