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HomeMy WebLinkAboutrda min 1981/08/06 7:00 PM MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, August 6, 1981 - 7:00 p.m. Council Chambers - Public Services Bldg. ROLL CALL MEMBERS PRESENT Chairman Hyde; Members Cox, McCandliss, Scott Members Absent Member Gillow STAFF PRESENT Executive Director Cole, Community Development Director Desrochers, Special Counsel Reed, Redevelopment Coordi- nator legler, Housing Coordinator Gustafson, Development Services Administrator Robens ALSO PRESENT Anush Badi i ITEM NO.1 - APPROVAL OF MINUTES MSUC (Scott/McCandliss) to approve the minutes of June 30, July 14 and July 23,1981 as mailed. ITEM NO.2 - RESOLUTION NO. 313 - FINDING PROJECT BENEFIT IN EXPENDITURE OF FUNDS FOR LOW- AND MODERATE-INCOME HOUSING OUTSIDE THE TOWN CENTRE I AND BA YFRONT REDEVELOPMENT PROJECT AREA A low and moderate-income housing fund to enhance the supply of housing relating to funds generated from the Town Centre I/Bayfront Redevelopment Project was created by the Redevelopment Agency in accordance with State Law. The fund may be used outside the redevelopment project area if the Agency finds the housing provided to be of benefit to the project area. RESOLUTION OFFERED by Member Scott, the reading of the text was waived by unanimous consen4 passed and adopted unanimously by those present. ITEM NO. 3- RESOLUTION NO. 314 - APPPROPRIATING FUNDS FOR ACQUISITION OF LOW AND MODERATE-INCOME HOUSING SITE Tt will be necessary to utilize funds from both the federal 108 loan program and from the Redevelopment Housing Fund in order to acquire the Melrose and Otay Valley Road property for the City's low and moderate-income housing program. Member Scott indicated that he disagrees with the price for the property, but would vote for this item in Member Gillow's absence. RESOLUTION OFFERED by Member Cox, the reading of the text was waived by unanimous consent, passed and adopted unanimously by those present. ITEM NO.4 - REPORT: APPRAISAL SERVICES - BAYFRONT PROPERTIES Community Development Director Desrochers suggested Agency members read a letter from Mrs. Whiteman dated July 31, 1981. (Copies of the letter and a cover memo from staff were di s tribUted to members of the Agency.) The 1 etter stated that Mrs Whiteman has signed a lease with San Diego Shipbuilding and Repair for ten years for' the Shangri-La property at the foot of F Street. The ~ease is :ontingent upo~ Mrs. Whiteman obtaining an owner participation agreement w,th the C,ty of Chula V,sta. 8/6/81 Redevelopment Agency Meeting -2- August 6, 1981 Mr. Desrochers' cover memo suggested a revised recommendation in view of Mrs. Whiteman~ correspondence that funds be appropriated not to exceed $5,000 to obtain a preliminary appraisal on the Shangri-La property. MOTION TO ACCEPT STAFF'S REVISED RECOMMENDATION It was moved by Member Cox that funds be appropriated not to exceed $5,000 to obtain a preliminary appraisal on the Shangri-La property. Motion died for lack of second. Chairman Hyde questioned Mr. Desrochers' recommendation. The director stated that it would be beneficial for the Agency to know what alternatives the Agency has at the time that the owner participation agreement is discussed. He felt that problems might result if we delayed too long. Member Scott expressed concern with the building's aesthetic compatibility with the rest of the Bayfront. Special Counsel Reed commented that the Agency could require design changes to make the building compatible. However, we do not have design standards for the Bayfront. Special Counsel Reed reiterated that the City could be held liable for an inverse con- demnation suit if approval of the owner's proposed improvements is delayed. Chairman Hyde remarked that he could not see the necessity for seeking an appraisal at this time, when we are not ready to consider acquisition. Member Scott reiterated his concerns that if we choose to enter into an owner parti- cipation agreement with Mrs. Whiteman, that the agreement have strict conditions, and strict architectural design stipulations in order to be compatible with the Bayfront. Discussion followed involving the need for Closed Session following tonight's meeting to discuss litigation. Executive Director Cole remarked that further discussion would not be needed with regard to the Shangri-La, but that it would be necessary for other legal purposes. MOTION TO HOLD OVER ITEM MSUC (Scott/McCandliss) to hold over item until the proper time and/or after we pre- pare an owner participation agreement for the Redevelopment Agency to consider, and that staff prepare a recommendation as to whether or not it was timely and/or appro- priate and economically feasible to consider acquisition of the property. ITEM NO.5 - REPORT: ANTHONY'S SIGN - REQUEST FOR EXTENSION A 25-foot freestanding sign was allowed by the City Council in 1974 for Anthony's Restaurant with the condition that it be removed by December 31, 1981. It is re- quested that a six-month extension be granted so the sign consultant for Anthony's can develop a new sign in conformance with the Bayfront Sign Program. 8/6/81 Redevelopment Agency Meeting -3- August 6, 1981 MOTION TO ACCEPT STAFF RECOMMENDATION MSUC (Scott/McCandliss) that the Agency grant Anthony's a six-month extension for the removal of their freestanding sign. ITEM NO.6 - REPORT: EL TORITO SIGN - APPEAL OF CONDITION The Design Review Committee approved the design for the 7,700 square foot El Torito Restaurant at the Bayfront including authorization to construct a monument sign adjacent to Bay Boulevard. Plans for the freeway sign were recently approved by the committee subject to conditions. The proponents have accepted all but one condition, that the word "restaurant" instead of "food" be used. El Torito has chosen to appeal that condition to the Agency. MOTION TO ACCEPT STAFF RECOMMENDATION MSUC (Scott/Hyde) that the Agency rescind the condition set forth by the Design R~view Committee and approve the words "Mexican Food" for El Torito's freeway-oriented slgn. ITEM NO.7 - REPORT: BAY BOULEVARD DEVELOPMENT Agency members were provided with updates on the Ramada Inn site, Days Inn project and the Agency-owned parcel at Bay Boulevard near F Street. It was noted that groundbreaking for the Days Inn is scheduled for some time in September. MOTION TO ACCEPT REPORT MSUC (Cox/Hyde) to accept the report. ITEM NO.8 - RESOLUTION NO. 315 - GRANTING TO THE CITY OF CHULA VISTA A 2!-¿ FOOT UTILITY EASEMENT Engineering staff requests that a 2!-¿-foot easement for utilities be granted to the City by the Agency when the Agency's properties are sold. This will prevent a delay in the installation of public improvements along Bay Boulevard. RESOLUTION OFFERED by Member McCandliss, the reading of the text was waived by unan- imous consent, passed and adopted unanimously by those present. ITEM NO.9 - REPORT: FOCUS AREA DEVELOPMENT STATUS The developer for the Focus Area development has currently entered into final nego- tiations with the theatre operator and with the restaurateur for Phase I. A commit- ment for the second restaurant however has been more difficult to find. In answer to Member Cox's question, Redevelopment Coordinator legler defined "flats" as units stacked one on top of another. Member Scott expressed concern with this design change and the lack of communication among the developer, staff and the Agency. 8/6/81 Redevelopment Agency Meeting -4- August 6, 1981 Mr. Desrochers explained that Mr. Zogob is considering a change because his one-level units are selling better than his other units. Most of the single-level units are sold. The developer feels that the market would be more in his favor if he constructed smaller, single-level units. According to the bond indenture for the Mortgage Revenue Bonds, 85% of bond proceeds must be committed by October 1982. MOTION FOR EXPLANATION OF PLANS MSUC (Hyde/McCandliss) to ask Mr. Zogob to give an explanation of his plans as soon as it is practical for him to do so, possibly following Tuesday night's City Council meeting on August 11, or at the next Agency meeting of August 20. The director mentioned that the developer is to come back to the Agency in the middle of August with his Schedule of Performance on Focus Area development. ITEM NO. 10 - RESOLUTION NOS. (a) 316, (b) 317, (c) 318, (d) 319, (e) 320 AUTHORIZING THE ISSUANCE OF BONDS OR ENTERING INTO OF FINANCING LEASES OR AGREEMENTS FOR THE PURPOSE OF FINANCING: (a) RESTAURANT "A," (b) RESTAURANT "B," (c) AN OFFICE BUILDING, (d) THEATERS, (e) A RETAIL COMMERCIAL SHOPPING CENTER AND RELATED COMMERCIAL FACILITIES TO BE CONSTRUCTED AND DEVELOPED BY CENTRE CITY ASSOCIATES LIMITED COMMERCIAL Because of a recent IRS clarification of tax liabilities of limited partnerships, bond counsel suggests an inducement resolution be authorized for each separate com- mercial project in the Focus Area. Chairman Hyde pointed out an error in the location description of resolution "b" (Restaurant "B") and resolution "d" (Theaters). The corrected location should read ". . . on the west side of Third Avenue between Parkway and F Street. . ." instead of ". . . between E and F Street. . . " RESOLUTION OFFERED by Chairman Hyde, the reading of the text was waived by unanimous consent, passed and adopted unanimously by those present as corrected. ITEM NO. 11 - REPORT: TOWN CENTRE FOCUS AREA RELOCATION The last phase of relocation in the Town Centre Focus Area is nearing completion with the exception of the Bernes/Isham parcels. MOTION TO ACCEPT REPORT MSUC (McCandliss/Cox) to accept the report. ITEM NO. 12 - REPORT: PROPERTY MANAGEMENT - SALE OF FIXTURES Various fixtures and equipment were left in several businesses that have relocated from the Focus Area. These items were purchased by the Agency for their "value in place" and are now being sold at auction for salvage value. 8/6/81 Redevelopment Agency Meeting -5- August 6, 1981 MOTION TO ACCEPT REPORT MSUC (Cox/Scott) to accept the report. ITEM NO. 13 - RESOLUTION - ENTERING INTO AN OWNER PARTICIPATION AGREEMENT WITH JAMES BRENNAN Concept plans for the construction of a two-story commercial office building at 294 Shasta Street have been submitted by Mr. James Brennan. The Design Review Board rec~mmends approval of the proposed design concept which is exempt from environmental reVlew. Chairman Hyde pointed out that the project is in the area where Council directed staff to re-examine zoning. The depth of the parcels in that area appear to be too shallow for the type of commercial development which may be appropriate for that area opposite the South Bay Regional Center. The Community Development Director reported that the Town Planner, Mr. Pass, indicated that the report is essentially complete and the Brennan project appears to be in com- pliance with the land use prescribed for the area in question. Members expressed concern with the project's proximity to other residential uses. Redevelopment Coordinator Zegler narrated a brief slide presentation of the Brennan project. In response to members' concerns, Development Services Administrator Robens stated that the Planning Director has not seen the completed rezoning study for the area on the east side of Third Avenue between H and I Streets. It will probably be three weeks, two weeks at the earliest, before the report will be ready for Council review. Chairman Hyde remarked that unfortunately the Redevelopment Agency could not approve the project until it has had an opportunity to review the staff report on the possi- bility of rezoning in that area. MOTION TO CONTINUE ITEM AND REQUEST REZONING REPORT MSUC (Hyde/Scott) to continue this matter to the regular Agency meeting of September 3, and ask for the rezoning report to come before the City Council in three weeks. Chairman Hyde requested staff personally call the applicant to apologize for the delay, explaining the seriousness of this matter involving a related study that may affect his plans. ITEM NO. 14 - RESOLUTION NO. 321 - APPROVING RESIDENTIAL LAND USE IN THE CENTRAL COMMERCIAL DISTRICT OF SUBAREA 3 OF THE TOWN CENTRE REDEVELOPMENT AREA AS PROPOSED FOR 521-525 THIRD AVENUE BY AMALGAMATED CONSTRUCTION AND DEVELOPMENT COMPANY A proposal for the construction of an office/residential condominium complex at 521- 525 Third Avenue has been submitted by Mr. Anush Badii. The Planning Department is recommending approval of a conditional use permit to the Planning Commission which will meet August 12. 8/6/81 Redevelopment Agency Meeting -6- August 6, 1981 Redevelopment Coordinator Zegler narrated a brief slide presentation on the project. ANUSH BADII AMALGAMATED CONSTRUCTION & DEVELOPMENT CO. 225 Broadway, Suite 1600 San Diego, CA 92101 Mr. Badii, the developer, described the architectural design features and the aqueduct in particular. RESOLUTION OFFERED by Member Scott, the reading of the text was waived by unanimous consent, passed and adopted unanimously by those present. MEMBERS' COMMENTS Member Cox asked for the status of repainting of the streetlights and parking meters on Third Avenue. Mr. Desrochers explained that the new color, a darker shade of green, will be con- sidered along with the complete plan for the second phase. The Design Review Board suggested that all streetlights and parking meters be repainted the darker green. Agency members' opinion will be solicited in a few months in this regard when the new fixtures have arrived. Member Scott suggested that the Council include the House of Munich, where the re- painted fixtures are presently located, on their next tour. In response to Chairman Hyde's question concerning demolition of the balance of Third Avenue, Mr. Desrochers noted that staff is attempting to relocate the present occupant of Arnold's Garage. Equipment sales have been held for the unoccupied buildings on Third Avenue. Demolition is anticipated for the Bernes/Isham parcels in January. DIRECTOR'S COMMENTS Executive Director Cole requested a Closed Session to discuss potential litigation. MOTION TO HOLD CLOSED SESSION MSUC (Cox/Hyde) to hold a Closed Session following tonight's meeting to discuss potential litigation. ADJOURNMENT at 8:12 p.m. to Closed Session and the meeting of August 20 at 4:00 p.m. in the Council Conference Room. 8/6/81