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HomeMy WebLinkAboutrda min 1981/05/07 7:00 PM MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, May 7, 1981 - 7:00 p.m. Council Chambers, Public Services Building ROLL CALL MEMBERS PRESENT Chairman Hyde; Members Cox, McCandliss, Scott, Gillow Membe rs Absent None ST AFF PRESENT Executive Director Cole, Community Development Director Desrochers, Special Counsel Reed, Redevelopment Coordi- nator legler, Development Services Administrator Robens, Administrative Analyst Buchan ALSO PRESENT Niek Slijk, David and Richard Wilson, Glen Fithian, Richard Zogob ITEM NO.1 - APPROVAL OF MINUTES MSUC (Scott/McCandliss) to approve the minutes of April 2, 1981 as mailed. ORAL COMMUNICATIONS NIEK SLIJK CHAMBER OF COMMERCE 233 Fourth Avenue Chula Vista, CA 92010 Mr. Slijk spoke of the Chamber's concern with the demolition project downtown. He urged Agency members to support an interim beautification plan to follow demolition until new structures are built. Chairman Hyde assured Mr. Slijk that demolition would be performed in such a way that it would improve the area and not degrade it. MOTION TO REPORT ON DEMOLITION PROGRESS MSUC (Scott/Cox) that staff report back at the next meeting (on May 21st) on the progress of the demolition project. ITEM NO.2 - RESOLUTION NO. 294 - APPROVING ASSIGNMENT TO DISPOSITION & DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND CRAIG CLARK In accordance with the Disposition & Development Agreement executed in March 1981 between the Agency and Craig Clark, El Torito will take title to the property (east of Bay Boulevard and west of 1-5) and will assume all development obligations and restrictions. Craig Clark is now requesting the Agency's consent to said assignment through the appropriate resolution. RESOLUTION OFFERED by Member Scott, the reading of the text was waived by unanimous consent, passed and adopted unanimously. 517 /81 Redevelopment Agency Meeting -2- May 7, 1981 CoßJ11unity Development Director Desrochers affirmed that "dirt will fly" (groundbreaking) by June of this year. ITEM NO.3 - REPORT: RAMADA INN UPDATE, STATUS OF DAYS INN/EL TORITO Ramada Inn Financing methods for this project are continuing to be explored for construction and long-term mortgage. The developers are willing to utilize any reasonable method, in- cluding equity participation, to secure necessary financing. El Torito Immediately following the close of escrow, anticipated for early June, grading for this project should begin. Construction should take five to six months, and a grand opening is planned for November 1981. Days Inn Grading and construction should start in mid-August of 1981, if a building permit can be obtained by August 8th. A mid-December completion date is anticipated for the restaurant, and completion of the motel units is anticipated by February or March of 1982. MOTION TO ACCEPT REPORT MSUC (Scott/McCandliss) to accept the report. ITE~1 NO.4 - REPORT: UPDATE ON BAY BOULEVARD IMPROVEMENTS AND LANDSCAPING A coastal permit application for street improvements and sewer extension was submitted to the Coast Regional Commission and is scheduled for a May 15th hearing. If a permit is issued by May 29, a contract for the street improvement portion may be awarded by July 7, 1981. Redevelopment Coordinator Zegler narrated a slide presentation of the landscaping design for the triangle park and street right-of-way. Mr. Zegler reminded members that the only action tonight would be to approve this design concept. MOTION TO ACCEPT REPORT MSUC (McCandliss/Cox) to accept the report. Brief discussion followed regarding the type of trees suggested for placement in this area. Executive Director Cole commented that, in the future, the trees may block the view of the bay. Community Development Director Desrochers remarked that these trees were suggested because of the railroad tracks and powerpoles adjacent to the road. 517/81 -3- Redevelopment Agency Meeting May 7, 1981 ITEM NO.5 - RESOLUTION NO. 295 - APPROPRIATING FUNDS FOR THE PURCHASE OF BAY FRONT PROPERTY AND ASSOCIATED COSTS In compliance with a recent court ruling, and associated legal expenses, additional funds must be expended for the acquisition of the Kaul property in the Bayfront redevelopment area. RESOLUTION OFFERED by Chairman Hyde, the reading of the text was waived by unanimous consent, passed and adopted unanimously. ITEM NO.6 - RESOLUTION - APPROPRIATING FUNDS FOR LITIGATION RELATIVE TO SANTA FE LAND IMPROVEMENT COMPANY BAYFRONT PROPERTY Agency members were informed earlier that representatives from Santa Fe had contacted the Community Development Director to notify him that they will drop their lawsuit "without prejudice" against the City of Chula Vista. However, Mr. Desrochers re- quested that $5,000 be appropriated for legal services initially performed by our acquisition counsel in this regard. Special Counsel Reed indicated that expenses must be paid for appraisals, market studies and soils engineering studies also prepared for the trial. MOTION TO HOLD OVER ITEM MSUC (Scott/McCandliss) to hold over item until exact billing from legal counsel and various consultants is received. Special Counsel Reed noted that the litigation issue with Santa Fe is dead. In order for this firm to file against the City again, action must be in accordance with the statute of limitations. ITEM NO.7 - RESOLUTION NO. 296 - APPROPRIATING FUNDS FOR EXPENSES RELATIVE TO THE LOCAL COASTAL PLAN An additional $10,000 is necessary to pay final bills for services up to and including the Coastal Commission hearing of April 16, and any further expenses until the end of the fiscal year. RESOLUTION OFFERED by Member Cox, the reading of the text was waived by unanimous consent, passed and adopted unanimously. Chairman Hyde noted that an informal meeting on this topic had taken place earlier this afternoon. The developers were asked if they had any further comments with this regard. They had none. Community Development Director Desrochers responded to Member Cox's question relative to debt service coverage. He stated that another $3/4 million would have to be in- vested in order to provide for adequate protection of the City. In response to Member Gillow's question, the director remarked that the marina pro- ject is a good concept for the area and that it might be more feasible if the devel- opers were able to put up more mone~ and/or obtain additional investors. 517 /81 Redevelopment Agency Meeting -4- May 7, 1981 MOTION REQUESTING COST BREAKDOWN MSUC (Scott/Hyde) that copies of the cost breakdown for litigation expenses be pro- vided for Agency member~ review. ITEM NO.8 - REPORT: LOCAL COASTAL PLAN On April 16, 1981, the California Coastal Commission, rather than conditioning our plan, rendered recommendations on how our LCP could gain approval. No issues were resolved, however. Special Counsel Reed could not make any recommendations at this time, but he remarked that we need more time to sort out the implications of this issue. He suggested meeting in a Closed Session to discuss further litigation matters. In response to Chairman Hyde's question, Mr. Reed coßJ11ented that he received the offi- cial action from the Attorney General on Tuesday (May 5). MOTION FOR CLOSED SESSION MSUC (Hyde/Scott) to hold a Closed Session at the end of tonight's meeting to discuss matters of possible litigation. MOTION TO ACCEPT REPORT WITH CORRECTION MSUC (Cox/McCandliss) to accept the report with a correction to the first line of the first paragraph of the report, ". . . State Coastal Commission complied with Judge Butler's order. . ." ITEM NO.9 - REPORT: MARKET AND FINANCIAL ANALYSIS OF THE PROPOSED CHULA VISTA MARINA/RV PARK A feasibility study, prepared by Gruen Gruen + Associates and paid for by the Wilson Group, has been completed. The study was requested by the Agency after the developers asked the City to consider sponsoring the financing of a marina and RV park at the J Street Marina. Chairman Hyde noted that an informal meeting on this topic had taken place earlier this afternoon. The developers were asked if they had any further comments with this regard. They had none. Community Development Director Desrochers responded to Member Cox's question relative to debt service coverage. He stated that another $3/4 million would have to be in- vested in order to provide for adequate protection of the City. In response to Member Gillow's question, the director remarked that the marina pro- ject is a good concept for the area and that it might be more feasible if the devel- opers were able to put up more money, and/or obtain additional investors. 517/81 Redevelopment Agency Meeting -5- May 7, 1981 Member Gillow requested clarification that by accepting staff's recommendation, the City is not closing the door on this type of project, and that the City is still open to future marina-type uses with other developers. Member McCandliss concurred that the financing requested by the developers, is too risky for the City to participate in. Member Cox commented that he did not feel the marina could be financed through the normal financial outlets, and that this appeared to be the only means of funding at this time. Chairman Hyde expressed his desire for a marina-type development in the Bayfront pro- ject and encouraged the Wilson Group to pursue the project if they wished to do so. He noted that if the margin of risk was reduced to make the plan acceptable, he would reconsider. Community Development Director Desrochers concurred with Agency members' concerns, and he expressed his support for the Wilsons if they chose to develop with other partners. MOTION TO DENY SPONSORSHIP OF MARINA/RV PARK MSC (McCandliss/Hyde) to accept staff's recommendation not to provide spsonsorhip of the securities to finance the marina and RV park. (Member Scott abstained.) The developer, David Wilson, thanked the Agency for their cooperation in their three- year endeavor. He noted it would take creative financing to handle this project. Chairman Hyde suggested staff investigate other financing methods, if any, and provide the Wilsons with this information. Member Scott commented that he very much supports the marina project. ITEM NO. 10 - RESOLUTION NO. 297 - APPROPRIATING $840 TO FINANCE WORKING DRAWINGS FOR BAYFRONT SIGNS AND ENTERING INTO AN AGREEMENT WITH GRAPHIC SOLUTIONS, LTD. When the Agency adopted the Bayfront Sign Program in August 1980, a financial plan was also approved. RESOLUTION OFFERED by Chairman Hyde, the reading of the text was waived by unanimous consent, passed and adopted unanimously. ITEM NO. 11 - REPORT: CARTER HAWLEY HALE PREPARATION OF A DISPOSITION & DEVELOPMENT AGREEMENT Negotiations between the parties involved in the renovation and expansion of the Chula Vista Shopping Center are still in process. The April 15th deadline expected for the draft DDA was not met. This was due, in part, to several management changes in the Sears organization. 517/81 Redevelopment Agency Meeting -6- May 7, 1981 Chairman Hyde asked that he be informed immediately of any progess in this regard prior to the next regular meeting. MOTION TO ACCEPT REPORT MSUC (Hyde/Cox) to accept the report. ITEM NO. 12 - RESOLUTION NO. 298 - AMENDING AN AGREEMENT WITH SECURITY LAND AND RIGHT OF WAY SERVICES, INC. The consultants are requesting an increase in their fee schedule for real estate acq.uisition services. RESOLUTION OFFERED by Member Cox, the reading of the text was waived by unanimous consent, passed and adopted unanimously. Community Development Director Desrochers commended the firm's representative, Mr. Bill Glum, for his outstanding services. ITEM NO. 13 - RESOLUTION NO. 299 - ACCEPTING GRANT OF $16,192 FROM THE BANK OF AMERICA FOR COMMUN ITY REDEVELOPflENT PURPOSES AND APPROPRIATING SAME A grant of $16,192 was presented to the City by the Bank of America for rehabilitation of the former Taco Express building located in Memorial Park. RESOLUTION OFFERED by Member Scott, the reading of the text was waived by unanimous consent, passed and adopted unanimously. ITEM NO. 14 - REPORT: STATUS OF FOCUS AREA RELOCATION/DEMOLITION SCHEDULE A relocation and demolition schedule has been prepared for properties located within the Town Centre Focus Area for the demolition of all buildings except the structures at 314-326 Center Street. The Agency will be asked to approve a contract for the im- mediate demolition of the Goodrich Surplus and Tri-City Tires separately. MOTION TO ACCEPT REPORT MSUC (Scott/Cox) to accept the report. Mr. Desrochers clarified, in response to Chairman Hyde's question, that the tire store and Goodrich Surplus would actually be the first buildings demolished. Member McCandliss expressed concern for Billie Bull's relocation problems. The director explained that since staff has not been successful with the relocation Of this operation, the Board of Realtors has been solicited for their assistance. ITEM NO. 15 - RESOLUTION NO. 300 - APPROPRIATING FUNDS AND AWARDING CONTRACT FOR DEMOLITION IN TOWN CENTRE I REDEVELOPMENT AREA It is considered desirable to proceed with the immediate demolition of the Goodrich and tire store buildings, leaving the foundation for demolition along with the balance of the Focus Area. 5/7 /81 Redevelopment Agency Meeting -7- May 7, 1981 RESOLUTION OFFERED by Member Gillow, the reading of the text was waived by unanimously consent, passed and adopted unanimously. ITEM NO. 16 - REPORT: COST ESTIMATES FOR GRAPHICS IDENTIFYING REDEVELOPMENT EFFORTS WITHIN THE TOWN CENTRE FOCUS AREA Cost estimates for a graphics program have been obtained to publicize redevelopment plans downtown. Redevelopment Coordinator Zegler narrated a brief slide presentation. MOTION TO REDESIGN SIGN MSUC (Scott/Hyde) that the graphics (sign) be redesigned by removing Agency members' names so that functions can be enlarged and more easily read by passersby. MOTION TO ACCEPT REPORT MSUC (Scott/Hyde) to accept the report. ITEM NO. 17 - REPORT: LAND USE PLAN FOR THE TOWN CENTRE I FOCUS AREA The Agency has previously requested that the land uses be studied in relation to a parking structure of 600-800 spaces in the Focus Area. Community Development Director Desrochers informed the Agency that slides will be shown which display the first phase and approved townsite plan of Mr. Zogob's project. He indicated that the developer was present to answer any questions of the Agency. Mr. Desrochers explained that the original land use plan does not include the theatre but does contain owner-participant structures of Messrs. Bernes and Isham. Redevelopment Coordinator Zegler discussed some of the principal aspects of Plan #10: theatre, retail space (30,000 sq. ft.), office-condos (40,000 sq. ft.), restaurants (16,000 sq. ft.), and a 600-space parking structure. He emphasized the need for a bankable retailer that would attract public retailers to downtown. Mr. Zegler also discussed the action of the Town Centre Project Area Committee. The committee felt that if surface parking is used, it may not be logical to introduce that element during construction of the theatre. In response to Member Scott's question, Mr. Desrochers stated that the developer can- not commit to more than ('me restaurant at this time. The Marie Callender Restaurant would like to locate in Chula Vista, but our City is not currently on their construc- tion schedule. Member McCandliss expressed concern that staff has not come back with more than an analysis of Plans 9 and 10. In reply, the director indicated that at the March meeting, the question involved the need for more retail. To resolve this, staff con- tacted realty agents and retail users and developers. Through this investigation, staff feels a theatre would be the best use. 517/81 Redevelopment Agency Meeting -8- May 7, 1981 Mr. Desrochers noted that our bond underwriters advise that the City can sell bonds but not under present market conditions. He recommended the Agency approve simul- taneous construction of a theatre and parking structure. MOTION FOR SPECIAL MEETING MSUC (Scott/Hyde) to hold special Redevelopment Agency meeting to review financial and environmental plans, as well as land use plans, relative to Mr. Zogob's development. Chairman Hyde suggested this meeting be held on Thursday, May 14, at 6:30 p.m., and he requested Mr. Zogob's attendance at this time. MEMBERS' COMMENTS Member McCandliss commented on the remark of a City of Oceanside Redevelopment Agency member regarding the lack of bank participation in their programs. nr. Desrochers responded that our local banks have been most cooperative. ADJOURNMENT at 8:35 p.m. to Closed Session immediately following, special meetings of May 14 and 21,1981 and the regular meeting of June 4,1981. P'~~'"t1" S,","~ 517/81