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HomeMy WebLinkAboutrda min 1982/08/05 MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, August 5, 1982 Council Chambers 7:00 p.m. Public Services Building ROLL CALL MEMBERS PRESENT Chairman Cox; Members Malcolm, Moore, Scott MEMBERS ABSENT Member McCandliss STAFF PRESENT Executive Director Cole, Communi ty Development Director Desrochers, Spec i a 1 Counse 1 Reed, Development Services Admi ni strator Robens, Development Specialist Kassman, Landscape Architect Sennett ALSO PRESENT Mr. Charles Adams ITEM NO.1 - APPROVAL OF MINUTES MSUC (Cox/Moore) to approve the minutes of July 8, 15 and 17, 1982 as mailed. (Member Moore noted a correction to the mi nutes of July 17. Paragraph two of the first page should denote that it was "Member Malcolm" who commented on the action.) ITEM NO.2 - REPORT: CENTRE CITY ASSOCIATES L TD - LOAN COMMITMENT FOR THE COMMERCIAL SECTOR AT THIRD AVENUE AND "F" STREET August 5, 1982 was selected as the target date for the Focus Area developer to secure financing. Community Development Di rector Desrochers informed Agency members that Mr. Zogob has not secured a financing commitment; however, he has made significant progress in securing leases. Therefore, he recommended that an extension unti 1 September 2, 1982 be granted in order for the developer to secure financing. MOTION TO GRANT EXTENSION MSUC (Malcolm/Moore) to grant an extension until September 2, 1982, for the Focus Area developer to secure financing. Redevelopment Agency Meeting -2- August 5, 1982 ITEM NO.3 - RESOLUTION NO. 380 - AUTHORIZING THE ISSUANCE OF A CERTIFICATE OF COMPLETION FOR THE CHULA VISTA BAYFRONT DAY'S INN MOTEL AND RESTAURANT PROJECT In accordance with Section 40 of the Disposition and Development Agreement between the Redevelopment Agency and C. B. Day Realty of California, Inc., the Agency is reQu ired to issue a Certificate for Completion of the construction of the project. RESOLUTION OFFERED by Member Scott, the reading of the text was waived by unanimous consent, passed and adopted unanimously. ITEM NO.4 - REPORT: PROPOSED FINANCING FOR THE DEVELOPMENT OF CRYSTAL T'S EMPORIUM In an effort to make the proposed Crystal T's Emporium pro,iect at Bay Boulevard and "F" Street "penci 1 out," the fi rm of C. W. Clark proposes to enter into a ground lease agreement with the Agency for the subject parcel in lieu of a land sale. The ground lease would provide that C. W. Clark develop the restaurant which would be leased to Atlas Hotels, Inc. and financing for the project would be secured by subordinating the land. Member Malcolm expressed concern with this type of proposal stating that the Agency should not be in the restaurant business if Atlas Hotels defaults. Mr. Mike Gay, Vice President, C. W. Clark, Inc., 3211 Holiday Court, Suite 200, La Jo 11 a, CA 92037, agreed that there are risks with subordinating land in a ground lease situation. He indicated that he would be happy to share additional financial data with the Agency which could off set any potential ri sks. Basically, the developer will take up-front fees, and all fees which will be required for construction will be funded and provided in a firm form before funding is granted to the developer. Mr. Gay indicated that the balance of any financing problems will have to be handled by Atlas Hotels. There will be little or no opportunity for the developer to draw on the money until all funds are provided for and until construction actually commences. Issuance of a letter of credit will guarantee the availability of construction costs by Atlas Hotels. In addition, prior to the construction loan being funded, Atlas Hotels will have to provi de assurance that their portion of the construction costs will be funded. Member Malcolm further expressed concerns about giving up Agency owned land free and clear as well as staff's position to watch over this development. Member Scott indicated that he could support a motion to endorse the ground lease concept as an exploratory direction. In re sponse, Communi ty Development Di rector Desrochers commented that approximately 10 staff hours will be necessary to study a draft ground lease provided by C. W. Clark. 8/5/82 Redevelopment Agency Meeting -3- August 5, 1982 MOTION TO ENDORSE CONCEPT MSC (Scott/Cox) that the Agency endorse the concept of ground leasi ng with shared equity and authorize staff to negotiate a suitable contract with C. W. Clark. (Motion carried, 3-1; Member Malcolm dissented.) ITEM NO.5 - REPORT: AUTHORIZING THE CHAIRMAN TO SIGN A LETTER TO THE U. S. ARMY CORPS OF ENGINEERS The final environmental impact report for the Sweetwater Flood Contro 1 Project wi 11 soon be re leased by the federa 1 government. Since this project and the bayfront overl ap in many areas, and in order to speed the project along, the Agency is asked to review a letter prepared by staff. Community Development Director Desrochers suggested that the wording on page two, relative to direction of the federa I government, should be modified somewhat because it may be too descriptive for the Corps of Engineers. MOTION TO ACCEPT REPORT AS AMENDED MSUC (Cox/Moore) to accept the report as amended (amendment to paragraph two of Exhibit A - the letter to U. S. Army Corps of Engineers). In response to Member Scott's concern re 1 at i ve to gi vi ng up too much of the wetlands, Mr. Desrochers noted that the area depicted in the exhibit is consistent with the Bayfront Plan. Further di scussion ensued with regard to the loss of 188 acres of bayfront land. Chairman Cox detailed the history of this loss of land, noting the advantage of obtai ni ng an allocation for funding for the Sweetwater Flood Control Project, and the excellent working relationship with the owners of this property (Santa Fe Land Improvement Company). Community Development Director Desrochers discussed the necessity to pursue deve lopment of the bayfront, and the 1 and owner's attempts to negotiate with the U.S. Army Corps of Engineers with this in mind. In response to Member Scott I s concern, Special Counse 1 Reed indicated that the marsh land will be preserved regardless of a change in the General Plan. ITEM NO.6 - RESOLUTION NO. 381 - EXPRESSING APPRECIATION TO PACIFIC LEGAL FOUNDATION AND HOWARD SUSMAN FOR SERVICES TO THE REDEVELOPMENT AGENCY AND TO THE CITY OF CHULA VISTA Pursuant to the July 6 decision of the State District Court of Appeals, the Reaevelopment Agency has decided to no longer pursue litigation initiated agai nst the Coastal Commission. Therefore, services of the Pacific Legal Foundation, and in particular, Howard Susman, are no longer required. 8/5/82 Redevelopment Agency Meeting -4- August 5, 1982 RESOLUTION OFFERED by Member Malcolm, the reading of the text was waived by unanimous consent, passed and adopted unanimously. ITEM NO.7 - RESOLUTION NO. 382 - APPROVING AN AGREEMENT WITH CHULA VISTA INVESTMENT COMPANY AND JONES AND STOKES, INC., AND APPROPRIATING FUNDS THEREFOR Santa Fe Land Improvement Company and Watt Industries (Chula Vista Investment Company) have offered to pay one-half the cost of a biological study relative to the Bayfront Project. The en vi ronmenta 1 consulting firm of Jones and Stokes has proposed to conduct thi s type of study which would ass i st the Agency in the preparation of a new or revised Local Coastal Plan. Di scuss ion followed regardi ng the ro 1 e of the Agency in the deve 1 opment of a Bayfront Local Coastal Plan. Member Scott noted State law mandates that the City/Redevelopment Agency has the ability to make a plan for the benefit of the citizens of the City of Chula Vista. The deve 1 oper does not ha ve thi s responsibility. He suggested that this ideal could be illegal, as well as misleading. Member Ma 1 co 1m suggested that Agency staff does not have the expertise to develop the bayfront land. Member Moore felt that the Agency should cooperate with the developers for the development of this land. RESOLUTION OFFERED by Chai rman Cox, toe readi ng of the text was wai ved by unanimous consent, passed and adopted unanimously. ITEM NO.8 - RESOLUTION NO. 383 - APPROPRIATING FUNDS FOR APPRAISALS OF BAYFRONT PROPERTIES Last year, the Redevelopment Agency cont racted with Wi 11 i am Lipman for appraisals regarding certain bayfront properties and the City-owned parcel on "J" Street. Funds are now required for the new fiscal year for further appraisal of bayfront properties. RESOLUTION OFFERED by Member Scott, the readi ng of the text was wai ved by unanimous consent, passed and adopted unanimously. Member Ma lco 1m expressed concern that the amount recommended by staff for appraisals of Bayfront properties is too expensive. MOTION TO INVESTIGATE APPRAISAL FEES MSUC (Scott/Cox) to direct staff to investigate high appraisal fees. Member Scott c 1 arifi ed that a compari son of pri ces pai d by pri vate entities as well as public entities should be investigated by staff. 8/5/82 Redeve lopment Agency Meeti ng -5- August 5, 1982 ITEM NO.9 - SANDER REPORT: (1) LOCATION NEAR THE BAY (2) TIPPING FEES AND IMPACT ON TRASH BILLS An interim response to Council members I request concerning the SANDER Project has been prepared by Development Services Administrator Robens. This is due to the environmental issues and financing issues not yet decided, and responses to Questions which involve at least three areas that may have to be decided on conditional terms until further information is evaluated. MOTION TO ACCEPT REPORT MSUC (Scott/Moore) to accept the report. ITEM NO. 10 - REPORT: PROPOSED CHULA VISTA/SANDER REQU IREMENTS At the June 17 Redevelopment Agency meeting, members requested that a site for the SANDER Project be reserved on the Bayfront until January 1, 1983. Also, comments to be added to the letter of transmittal with the RFP was approved that indicated the City of Chula Vista would be attaching certain requirements to the SANDER development. MOTION TO ACCEPT REPORT MSUC (Scott/Malcolm) to accept the report. Deve lopment Servi ces Admi ni strator Robens informed the Agency that he wou 1 d welcome a short conference to address the negotiation process for the SANDER site. In response to Member Moore's concern regarding truck routes, Development Services Administrator Robens stated that the City controls traffic on its streets. Furthermore, any other items of concern by the Agency wi 11 be covered under contract with the operator and SANDER, and may then be strictly enf orced. ITEM NO. 11 - RESOLUTION - AWARDING CONTRACT FOR THE PROVISION OF PUBLI C RELATIONS AND RELATED SERVICES TO NUFFER/SM ITH ASSOCIATES, A PROFESSIONAL PUBLIC RELATIONS FIRM In August 1981, the Redeve 1 opment Agency entered into a contract with Nuffer/Smith Assoc i ates, Inc. for publ ic relations services for one year endi ng July 31, 1982. It is proposed that the Agency enter into a new contract for a continuation of these services with Nuffer/Smith for one year. Community Development Director Desrochers reiterated that staff hopes to come up with a public relations plan for the City of Chula Vista that will pick up where Nuffer/Smith left off. He suggested that to extend the agreement with Nuffer/Smith Associates may not be the best expenditure of Agency funds at this time. 8/5/82 Redevelopment Agency Meeting -6- August 5, 1982 MOTION TO ACCEPT STAFF RECOMMENDATION MSC (Scott/Moore) that the Agency not approve the cont ract as presented herewith. (Motion carried, 3-1; Chairman Cox dissented.) Discussion followed regarding the degree of professionalism performed by the current public relations firm of Nuffer/Smith. Member Moore commented that the Agency should retain a staff person with the expertise, or who could be trained, in the public relations field. Chairman Cox expressed concern with staff's recommendation to simply di sapprove the contract with Nuffer/Smith, and that no alternatives for hiring another firm were presented to the Agency. MS (Malcolm/Moore) to di rect staff to look into obtaining another pub 1 ic relations company to fulfill the job that Nuffer/Smith has been performing. Further discussion followed relative to retaining a staff person who has the public relations responsi bil ity but who would not necessarily have the expertise of a professional public relations consultant. Member Malcolm withdrew his motion and the second concurred. MOTION TO DESIGNATE STAFF, NEGOTIATE CONTRACT, AND RETAIN PRESENT CONSULTANT MSUC (Moore/Cox) to designate a staff person and negotiate a contract with the consultant to take care of areas staff cannot handle (beyond normal press release stages), and that Nuffer/Smith be retained for a period of six months at a reduced retainer in order to facilitate a smooth transition. In response to Chairman Cox's Question, Mr. Des rochers indicated that a consultant's proposal could be prepared in time for the next regular Redevelopment Agency meeting (September 2) but he could not give a definite time frame when a staff person could be hired in that time. It was clarified that the public relations consulting services should be a partnership between the City and the Redevelopment Agency, in the same manner as employment of Redevelopment Agency staff. ITEM NO. 12 - RESOLUTION NO. 384 - APPROPRIATING FUNDS AND APPROVING AN AGREEMENT WITH KATZ, HOLLIS, COREN AND ASSOC IA TES FOR THE PROVISION OF FISCAL CONSULTING SERVICES As an assurance of the size and stabil ity of our excess tax increment financing, E. F. Hutton and Company recommends that the Redevelopment Agency retain professional assistance to ascertai n the status of tax increment funding and its impact on parking structure financing. RESOLUTION OFFERED by Member Moore, the readi ng of the text was wai ved by unanimous consent, passed and adopted unanimously. 8/5/82 ,--- Redevelopment Agency Meeting -7- August 5, 1982 ITEM NO. 13 - RESOLUTION NO. 385 - APPROPRIATING FUNDS FOR RE IMBURSEMENT OF COSTS ASSOCIATED WITH THE MOBILEHOME PARK SPACE RENT SURVEY A mobilehome park space rent survey was completed with the assistance of the San Diego Association of Governments as authorized by the City of Chula Vista on April 12. SANDAG has submitted a request for partial cost reimbursement. RESOLUTION OFFERED by Member Moore, the readi ng of the text was wai ved by unanimous consent, passed and adopted unanimously. MEMBERS' COMMENTS Chairman Cox commented that the planter boxes were not bein9 installed before installation of the bomanite pavers in the completed area between "E" and "F" Streets. Community Development Director Desrochers noted that the planter boxes are being fabricated off site and will be somewhat different than those installed durin9 the first phase. In response to Chairman Cox's Question regarding the demolition project on Third and Center Street, the Director reported that staff is workin9 with the City's Purchasing Agent in order to store and sell remaining items in the vacant buildin9s. He also noted that the Fire Department's drill will take place at the site on Au9ust 15, 1982. The demolition is scheduled to begin on August 16 and, hopefully, be completed by October 1. Chairman Cox also briefly commented on the location of a work of fine arts in the Memorial Park area. Mr. Desrochers affirmed that there is approximately $35,000 in the Fine Arts fund from the Parkin9 Structure allocation. MOTION TO LOCATE WATER FEATURE IN MEMORIAL PARK MSUC (Cox/Malcolm) to di rect staff to come back wi th conceptual ideas for consideration of locat i n9 a water feature in the plaza area near Memori a 1 Park. Income Property Group - RV Park/Marina Construction Financing Communi ty Deve 1 opment Di rector Desrochers i ndi cated that the fi rm of Income Property Group has just returned from a meeting with the Port District with regard to obtaining financing for the Bayfront Marina and RV Park. A copy of a draft letter prepared by staff addressed to the Chai rman of the San Diego Unified Port District was distributed to members for review. Mr. Major Chance, representin9 Income Property Group, stated that hi s fi rm has secured financing from Grossmont Bank for the RV park. A change in their lease will be considered by the Port Di stri ct on August 17. At this time they would 1 i ke the Agency to support thei r request to modify thei r lease with the Port District. 8/5/82 Redevelopment Agency Meeting -8- August 5, 1982 MOTION TO DIRECT CHAIRMAN TO SUBMIT LETTER MSUC (Malcolm/Moore) to direct the Chairman to submit a letter to the San Diego Unified Port District relative to the Chula Vista Marina/RV Park. Brief discussion followed regarding the Port District's jurisdiction over thi s project. Community Development Director Desrochers noted that the Port District can act on this item without any input from the City of Chula Vista and that Income Property Group has come to the Agency of their own accord. MEMBERS I COMMENTS It was noted that the next Redevelopment Agency meeting scheduled for Thursday, August 19, should be rescheduled due to the arrival of Japanese dignitaries to the City of Chula Vista on Thursday, August 19. MSUC (Scott/Cox) to reschedule the next Redevelopment Agency meeting to Wednesday, August 18, 1982, at 4:00 p.m. ADJOURNMENT at 8:19 p.m. to the mid-month meeting of Wednesday, Au9ust 18, 1982, at 4:00 p.m. AH:dl WPC 0295H 8/5/82 <--<-<