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HomeMy WebLinkAboutrda min 1982/02/04 MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, February 4,1982 Council Chambers 7 :00 p.m. Public Services Building ROLL CALL MEMBERS PRESENT Chairman Cox; Members Gi110w, Campbell, McCand1iss, Scott MEMBERS ABSENT None STAFF PRESENT Executive Di rector Cole, Special Counsel Reed, Communi ty Development Director Desrochers, Redevelopment Coordinator Zegl er, Development Specialist Kassman, Development Services Administrator Robens ALSO PRESENT David Nuffer, Kerry Tucker, Marie Carey, Paul Ekholm, Lyle Jenkins, Richard Zogob, Michael Cowett ITEM NO.1 - APPROVAL OF MINUTES MSUC (Gil 1 ow/Scott) to approve the minutes of January 7,12, and 21,1982 as mailed. ITEM NO.2 - REPORT: ECONOMIC DEVELOPMENT PROGRAM An Economic Development Program was presented by The Carey Company at the January 21 Redevelopment Agency meeting. The Agency accepted the consultant's report then and asked for direction in the implementation of the plan through an ad hoc task force. The consultant submitted a list of seven items for the task force and recommended that seven persons serve on such a committee. MOTION TO ACCEPT REPORT MSUC (Cox/Scott) to accept the report as provided by the Consultants. ITEM NO.3 - REPORT: PUBLIC RELATIONS PLAN FOR THE CITY OF CHULA VISTA With the preparation of the Economic Development Plan, Nuffer/Smith has prepared a public relations plan for the Agency's review. 2/4/82 Regular Meeting - Redevelopment Agency -2- February 4, 1982 DAVID NUFFER NUFFER/SMITH ASSOCIATES 2560 First Avenue Building, Ste. 103 San Diego, CA 92103 Mr. Nuffer briefly discussed the background of his association with the City of Chu1 a Vi sta. He reiterated Ms. Carey's fi ndings re1 ative to the economi c development of the City as presented at the Agency's meeting two weeks ago. He pointed out several findings as a result of a citizens survey: 1. Chula Vista's image among outsiders appears to be neutral to negative; 2. Most Chu1a Vi sta residents want City offi ci al s to become more aggressive; 3. The City's image is important to the future; 4. Site selectors surveyed are unaware of the City of Chula Vista. Based on these assumpti ons, Nuffer/Smi th Associ ates has developed a public relations plan. KERRY TUCKER NUFFER/SMITH ASSOCIATES Mr. Tucker addressed the three segments of the Public Relations Plan hereafter referred to as key result areas. Key result areas should be viewed as goals for the City of Chu1a Vista. (Member McCand1iss arrived at this time, 7:12 p.m.) Member Scott questi oned the "out-of-pocket" fees referred to in the Di rector's report. Community Development Director Desrochers explained that Nuffer/Smith has been asked to provi de costs for a sl i de show presentati on, preparati on of a data book, and other items on a "as needed" basis. The cost for these out-of-pocket expenses will be provided within the next several weeks and are in addition to the consultant's basic fee. MOTION TO ACCEPT REPORT MSUC (Cox/Scott) to accept the report and the Public Relations Plan as presented by the Consultant. ITEM NO.4 - RESOLUTION NO. 351 - ACCEPTING THE ANNUAL REPORT FOR THE BAY FRONT , TOWN CENTRE I AND TOWN CENTRE II REDEVELOPMENT AREAS FOR FISCAL YEAR 1980-81. 2/4/82 Regular Meeting - Redevelopment Agency -3- February 4,1982 In accordance with Article 6, Section 33080 of the State Redevelopment Law, the Redevelopment Agency is required to file a copy of its annual report with the State Housing and Community Development office. RESOLUTION OFFERED by Member Scott, the reading of the text was waived by unanimous consent, passed, and adopted unanimously. LYLE JENKINS 602 MELROSE AVENUE CHULA VISTA, CA Mr. Jenkins, owner of South Bay Auto Parts, referred to an article in today's editi on of the Star-News concerni ng the fi nanci ng of industry comi ng to the City of Chula Vlsta. ----¡¡e discussed his plight in attempting to secure a loan for the construction of his new building compared with the business operator mentioned in the newspaper article. Member Scott pointed out several factors involving Industrial Development Bond (IDB) financing as indicated in the newspaper article, including that the bond market is poor, and that such financing is usually 1 imited to loans of $1,000,000 and over because of the front-end cost. Special Counsel Reed advi sed that this method of financing for a small business owner is legally possible; however, the front-end cost to implement this type of financing instrument would be at least $25,000. For a $130,000 loan (as in Mr. Jenkins' case), it would not make sense. Mr. Desrochers explained that Hyspan is able to participate in the bond financing because of their banking capabilities. However, that the ordinance exists does not mean that a sale will be successful. The Director a1 so mentioned that the State does have a limitation of $200 million. ITEM NO.5 - REPORT: STATUS OF THE TOWN CENTRE DESIGN MANUAL As a specific duty of the Town Centre Design Review Board, an annual report on the status of the design manual has been submitted to the Agency. MOTION TO ACCEPT REPORT MSUC (Scott/Gi1low) to accept the report on the status of the Town Centre design manual. 2/4/82 Regul ar Meeti ng - Redevelopment Agency -4- February 4,1982 ITEM NO.6 - RESOLUTION NO. 352 - AUTHORIZING SALE OF $2,500,000 PRINCIPAL AMOUNT OF COMMERCIAL FACILITIES REVENUE BONDS (UNITED ARTISTS COMMUNICATIONS INC. PROJECT) 1982 SERIES A, AND AUTHORIZING THE EXECUTION OF AND APPROVING RELATED DOCUMENTS, AGREEMENTS AND ACTIONS By adoption of Resolution No. 319, the Redevelopment Agency has agreed to participate in the sale of tax-exempt bonds and/or notes to fi nance the constructi on of the Uni ted Arti sts Theatre in the Town Centre Focus Area. However, United Artists has requested to use a different bond counsel (Orrick, Herri ngton & Sutcliffe) than that used for the recently completed Marie Callender financing. In response to Member Scott's concern, Mr. Desrochers indicated that Mr. Scott's employer, Merrill Lynch, is indirectly involved. Special Counsel Reed advised that Member Scott should abstain from voting on this matter. RESOLUTION OFFERED by Member McCand1iss, the reading of the text was waived by unanimous consent, passed, and adopted unanimously. (Member Scott abstained from voting.) ITEM NO.7 - RESOLUTION NO. 353 - GRANTING SAN DIEGO GAS AND ELECTRIC COMPANY AND SOUTH BAY IRRIGATION DISTRICT EASEMENTS FOR EXISTING FACILITIES WITHIN THE TOWN CENTRE FOCUS AREA With the adoption of City Council Resolution No. 10747 approving the vacation of streets within the Town Centre Focus Area - Commercial and Resi denti al Project, staff was directed to prepare easement documents for SDG&E and the South Bay Irrigation District facilities currently located within the vacated ri ghts-of-way. Special Counsel Reed distributed copies of a slightly modified form of deed as a substitute for Exhibit B. He noted that the language underlined is the only addition to this deed. RESOLUTION OFFERED by Member Cox, the reading of the text was waived by unanimous consent, passed and adopted unanimously. ITEM NO.8 - REPORT: FOCUS AREA PARKING STRUCTURE A Request for Proposal for the architecture and engineering services for the parki ng structure was adverti sed in the Daily Transcri pt. The deadl i ne for responses to be submitted to the Community Development Department was January 29,1982. 2/4/82 .-------- Regular Meeting - Redevelopment Agency -5- February 4, 1982 Redevelopment Coordinator Zegler stated that 12 responses were received. The parking structure consultant, Mr. Hauser, has preliminarily reviewed the proposal s. The responses have been narrowed down to six candidates to be invited back for an interview. Mr. Zegler noted that at this morning's Project Area Committee meeting, the committee took action nominating their Chairman as a selection committee member. MOTION TO ACCEPT REPORT MSUC (Campbell/Scott) to accept the report. UNANIMOUS CONSENT ITEM: RESOLUTION NO. 354 - AMENDING RULES AND REGULATIONS RELATING TO ITS RESIDENTIAL CONSTRUCTION AND MORTGAGE FINANCING PROGRAM The underwriter for the Parkwoods condominium project, Miller and Schroeder, has requested the Agency consider allowing another originator, BANCO Mortgage Company, to participate. Chairman Cox requested a brief in-house recess in order to review the unanimous consent material provided for them. RESOLUTION OFFERED by Member Scott, the readi ng of the text was waived by unanimous consent, passed and adopted unanimously. Mr. Desrochers commented that the resol uti on basi cally provi des for another processor for purchase of Parkwoods units. This would provide buyers with two opti ons, rather than just the previ ous one. The Director briefly discussed the mortgage company's qualifications. ITEM NO.9 - REPORT: STATUS OF THE LOCAL COASTAL PLAN Litigation is pending with the 4th District Court of Appeals on the Coastal Commission's action of last April. Additionally, unofficial negotiations continue between the Agency Chairman, Member Scott, and three members of the Coastal Commission. MOTION TO ACCEPT REPORT MSUC (Scott/Gillow) to accept the report. 2/4/82 Regular Meeting - Redevelopment Agency -6- February 4, 1982 Special Counsel Reed indicated that filings for amicus curiae briefs are due in 40 days. ITEM NO. 10 - REPORT: BAY BOULEVARD DEVELOPMENT - JOE STREET PROPERTY- CRYSTAL T'S Mr. Street continues to review various proposals for the use of his property. Also, we are preparing the Disposition and Development Agreement with C. W. Clark for the development of Bay Boulevard and "F" Street for the Crystal T's site. MOTION TO ACCEPT REPORT MSUC (Scott/Campbell) to accept the report. ITEM NO. 11 - REPORT: STATUS OF WHITEMAN-GURNE(NEGOTIATIONS As previously reported, Agency staff and Mr. Gurne{have been unable to arrive at any agreement that coul d be recommended to the Agency for approval. The Bayfront Redevelopment Plan contemplates the Whiteman property to be used as open space; however, Mr. Gurnee" intends to make a substantial investment in this property in order to conduct his industrial business. Community Development Director Desrochers informed the Agency of Mrs. Whiteman's attorney's message that the Agency be apprised that his letter of December 15, 1981 is still valid. Thi s 1 etter makes reference to the fact that the Agency should ei ther act on an owner participation agreement or commence with eminent domain proceedings. Chairman Cox indicated that he received a call from Mr. Gurne{ this afternoon requesting a continuance of this item for at least one week. MOTION TO CONTINUE ITEM MSUC (Scott/Cox) to continue this item for two weeks and proceed with condemnation. Discussion ensued regarding the Agency's responsibilities towards the land owner and the tenant, Mr. Gurne~. Special Counsel Reed discussed the Agency's previous direction to proceed with condemnation. He suggested, in the meantime, if nothing is resolved, that he proceed with the initial mailing of public hearing notices. Mr. Desrochers reconfi rmed that the 1 i ti gati on guarantee has now been prepared by the ti tl e company. Therefore, we will begin advertising for a public hearing while still continuing negotiations with the tenant and owner of this property. 2/4/82 Regul ar Meeti ng - Redevelopment Agency -7- February 4,1982 ITEM NO. 12 - REPORT: MARINA FINANCING In May of 1981, the City Council/Redevelopment Agency decided not to participate in financing of a proposed marina and RV park in the Bayfront. Thi s deci si on was based on a report from Gruen Gruen + Associ ates showing possible financial obligations of the City due to the proposed structure of the issue. The Council and Agency al so di rected that if a new pro forma of cost was presented provi di ng for more reasonabl e assurances that the publ i c would not have to be liable for the bonds, then interest and sponsorship would be renewed. Mr. Desrochers stated that from a preliminary standpoint, the Gruens feel that Income Property Group appears to be able to participate in this type of financing. WILLIAM MAJOR CHANCE INCOME PROPERTY GROUP 9420 Farnham Street, Ste. 215 San Diego, CA 92123 Mr. Chance, representing Income Property Group, told the Agency that his firm has entered into an agreement to purchase Mr. Wilson's interest in the marina and RV park project. He expressed his firm's desire to enter into such a bond venture. Mr. Chance poi nted out that hi s firm has investigated the utilization of short-term financing, but that long-term commitments are not now available for thi s project. Member Campbell asked the principals if they have other capabilities to move ahead, in the event that the Agency does not wish to participate in their bond proposal. In response, Mr. Chance made reference again to short-term financing. MOTION TO ACCEPT REPORT MSUC (Cox/Scott) to accept the staff report and that the Agency ask principals to come back with an inducement resolution. Member Scott expressed hi s concern with being "partners of risk." He di scussed the importance of an extremely strong financi al statement in order to protect the City. Member McCandl i ss echoed Member Scott's concerns toward alternative fi nancing and questioned if IDB's could be used in lieu of the proposed method. 2/4/82 ...---~-- Regular Meeting - Redevelopment Agency -8- February 4, 1982 MEMBERS' COMMENTS Member Scott commended Member Campbell's excell ent performance on the City Council/Redevelopment Agency. Chairman Cox announced that toni ght' s meeti ng woul d be adjourned to Closed Session. He remarked that a reception would be held Monday evening at Member Gi 11 ow's home to di scuss the recently developed Economi c Development Program. He encouraged members of the Agency to be in attendance at this reception. ADJOURNMENT at 7:48 p.m. to Closed Session and the mi d-month meeting of February 18,1982 at 4:00 p.m. 4f¿ Executive Secretary WPC 0007H 2/4/82