HomeMy WebLinkAboutrda min 1982/09/02
MINUTES OF A REGULAR MEETING OF THE REOEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA, CALIFORNIA
Thursday, September 2,1982 Council Chambers
7:00 p.m. Public Services Building
ROLL CALL
MEMBERS PRESENT Chairman Cox; Members Malcolm, McCandliss, Scott
MEMBERS ABSENT Member Moore
STAFF PRESENT Executive Director Cole, Communi ty Development
Director Desrochers, Redevelopment Coordi nator
legler, Development Servi ces Administrator
Robens, Special Counsel Reed
ALSO PRESENT Richard Schick, Michael Gay, James Cappos,
Richard Zogob, Michael Cowett
ITEM NO.1 - APPROVAL OF MINUTES
MSUC (Malcolm/Cox) to approve the minutes of July 27, 29, August 5 and 18,
1982 as mailed. (Member McCandliss abstained from voting on the minutes of
August 5, 1982.)
ITEM NO.2 - REPORT: APPROV I NG DEVELOPER I S METHOD OF FINANCING FOCUS AREA
DEVELOPMENT
An extension to this date was made by the Redevelopment Agency in order for
the Focus Area Developer to present the Agency with his method of financing.
Community Development Director Desrochers announced that the developer,
Mr. Zogob, has received a financing commitment from Beverly Hills Savings for
the 57,340 ft. commerci al center at Thi rd Avenue and "E" Street. It is
anti ci pated that construction of the facilities will commence, upon
acceptance of thi s report, in si x week s.
MOTION TO APPROVE REPORT
MSUC (Mal colm/Scott) to approve the report which accepts the developer's
method of financing.
ITEM NO.3 - RESOLUTION NO. 387 - APPROVING THE USE OF A PRE-SALE TRAILER TO
BE LOCATED IN THE TOWN CENTRE FOCUS AREA
AND APPROVING THE LEASE AGREEMENT WITH
CENTRE CITY ASSOCIATES LTD-COMMERCIAL FOR
THE LEASING OF SAID PROPERTY
A lease has been obtained by the owners of the exi sti ng Jack La Lanne' s
Health Spa located on Third Avenue for construction of a new faci 1 ity
(American Health Fitne ss) to be relocated withi n the Town Centre Vill age.
Representatives of Jack La Lanne' s have requested to locate a pre-sale
trailer on the Focus Area site adjacent to Third Avenue in order to house a
sales representative to promote material describing the new facility.
Redevelopment Agency Meeting -2- September 2, 1982
Community Development Director Desrochers indicated that the site proposed by
Jack La Lanne's architect is inadequate due to the trailer size. Therefore,
staff recommends that the trailer be located at the southeast corner of lot
6, and that the appl i cant be requi red to pay a fee for the use of thi s
property which is under public ownership.
RESOLUTION OFFERED BY MEMBER SCOTT, the readi ng of the text was wai ved by
unanimous consent, passed and adopted unanimously.
ITEM NO.4 - REPORT: FINE ARTS PACKAGE AND GRAPHICS PROGRAM FOR THE SOUTH
BAY REGIONAL CENTER
At the request of the Redevelopment Agency on June 17, 1982, staff contacted
the County Architect of the South Bay Regional. Facility regarding signage of
that facil i ty. As a result of this inquiry, it was learned that a fine arts
and graphics program does exist for the South Bay Regional Center.
Mr. Richard Schick, representing the County of San Diego, described the scale
model depi cti ng the water feature to be located at the South Bay Regi onal
Center (on display for members' review). Construction plans for such a
feature have been approved, and the artist is compiling construction bids.
By mid-September, County staff shoul d have a completed bi d package and
constructi on price. It is anticipated that constructi on will begin by
mid-October on this site.
I n answer to Chai rman Cox's questi on concerni ng the si gnage of the Center,
Mr. Schi ck i ndi cated that the bi d package for a 3' X27' concrete si gn with
bronze inlaid letters is expected to be presented to the Board of Supervisors
shortly. Exterior signage will consist of directions at all entrances. This
information will be depicted with white letters on a standard brown
background.
MOTION TO ACCEPT REPORT
MSUC (Cox/Scott) to accept the report.
In re sponse to Member Scott's concern, Mr. Schick noted that the water
feature and interior design of the County Center could not be prepared
simultaneously because of higher priorities.
ITEM NO.5 - REPORT: FOCUS AREA GROUND BREAKING CEREMONIES
The Downtown Association requested Agency staff to investigate the
possibility of coordinating ground breaking ceremonies for Focus Area
developments to be held during the Octoberfest cel ebrati on. It is
recommended that Saturday, October 16, 1982 be set as a tentative date for
the official ground breaking of the Town Centre Focus Area.
MOTION TO ACCEPT REPORT
MSUC (McCandliss/Scott) to accept the report.
Redevelopment Agency Meeting -3- September 2,1982
ITEM NO.6 - REPORT: TOWN CENTRE REDEVELOPMENT PROJECT NAME CHANGE
A request was made to the City Council on August 17, 1982 by the Downtown
Merchants Association in conjunction with the Chamber of Commerce to change
the name of the Town Centre Redevelopment project to the "Downtown
Redevelopment Project."
MOTION TO ACCEPT THE REPORT
MSUC (Cox/Scott) to accept the report and i nform the Merchant's Associ ati on
that the official name will remain the same.
ITEM NO.7 - REPORT: BAYFRONT LOCAL COASTAL PLAN
Due to the fact that the City has decided to no longer pursue legal remedies
with regard to the submission of the Local Coastal Plan, it is suggested that
a plan be considered that will meet the City's goals and objectives, the
developer's needs, as well as the Coastal Commission's needs. It is
therefore appropriate to discuss the issue and establish policy.
Community Development Director Desrochers expl ai ned the hi story of the Local
Coastal Plan beginning with the proposal of Sedway/Cooke in 1972.
Discussion followed concerning the workshop session proposed by staff and the
importance of having the major landowner (Watt/Santa Fe) in attendance at
thi s meeti ng.
It was moved by Member Scott that the Agency hold a workshop sessi on on
September 16 to continue discussions on this report.
The motion died for lack of a second.
Mr. Charles LeMenager, representing Watt Industries, commented that he would
be out of the country from September 10 through September 24th, but indicated
his preference to attend the workshop session when this item is discussed.
MOTION TO SCHEDULE WORKSHOP SESSION
MSUC (Cox/Malcolm) to schedul e the work shop session (to di scuss Bayfront
Local Coastal Plan policy) on Thursday, September 30,1982 at 4:00 p.m.
ITEM NO.8 - RESOLUTION NO. 388 - AUTHORIZING THE SUBMISSION OF AN
APPLICATION FOR PLANNING GRANT FUNDS TO THE
CALIFORNIA COASTAL COMMISSION
Pl anni ng Grant Funds in the amount of $30,000 are available through the
California Coastal Commission for the replanning of our Local Coastal Plan.
An application including work program must be submitted to the Commission for
review and approval in order to qualify for these funds.
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Redevelopment Agency Meeting -4- September 2,1982
Mr. Desrochers estimated that $150,000, which i ncl udes consultant time and
staff time, is necessary for the preparation of a new Local Coastal Plan.
With the adopti on of this resolution, staff can begi n to prepare a work
program by October 1 st.
RESOLUTION OFFERED BY MEMBER MCCANDLISS, the reading of the text was waived
by unanimous consent, passed and adopted unanimously.
ITEM NO.9 - a. RESOLUTION - AUTHORIZING CHAIRMAN TO EXECUTE AN
AGREEMENT WITH CRAIG CLARK TO LEASE CERTAIN
AGENCY-OWNED PROPERTY DESCRIBED HEREIN
b. RESOLUTION - AMENDING THE SCHEDULE OF PERFORMANCE
INCORPORATED AS PART OF THE DISPOSITION AND
DEVELOPMENT AGREEMENT BETWEEN THE CHULA
VISTA REDEVELOPMENT AGENCY AND CRAIG CLARK
At the August 5th Redevelopment Agency meeting, Members were informed of a
leasing concept by Craig Clark for the construction of a restaurant building
located on Bay Boulevard.
Community Development Director Desrochers remarked that the Crystal T's
organization has an approved coastal permit and has met the criteria of the
Design Review Committee with regard to their proposal. The Director utilized
a graphics presentation to illustrate the cash flow and other features of the
proposed 1 ease.
Discussion followed concerning the net sales, Agency's rental fee, and a five
year escalation factor.
Member Malcolm expressed his concerns with subordination of City-owned land
to Atlas Hotels. Member McCandliss requested information on alternatives to
subordination of land within the upcoming year. Community Development
Di rector Desrochers noted that in the eve nt the developer does not secure a
tenant for the site within the next six months, there is a possibility that
other restaurant operations may be interested.
Mr. Michael Gay, representing C. W. Clark, commented that Atlas Hotels is in
a position to buy the property and desires to do so. The original interest
of Craig Clark in the entire property was to obtain benefits of investment
real estate and other equities.
I n answer to Member Scott's questi on concerni ng the timi ng for subordi nati ng
1 and to retain Mr. Clark's equity, Mr. Gay sugge sted that 1 and coul d be
developed by Atlas Hotels or another restaurant without subordi nati ng the
land.
Further discussion foll owed concerni ng Agency Members' opposition towards
subordinating City-owned land, and staff's lack of expertise in dealing with
this type of creative financing. Member Malcolm pointed out what he felt
were specific errors and omissions in the lease agreement.
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Redevelopment Agency Meeting -5- September 2, 1982
Member McCandl i ss speculated that under the circumstances, it would be a
supreme risk for the City to assume the lead role (as depicted in the lease
agreement) in the operation of a restaurant.
Community Development Director Desrochers indicated that the lease as
proposed presents a ri sk to the Agency on the downsi de. However, i n vi ew of
the City's need to generate income, the proposal provided a means for greater
income than from a regular sale and the possibility of a much greater
financial return.
MOTION NOT TO SUBORDINATE PROPERTY
MSUC (McCandliss/Malcolm) that the Redevelopment Agency not subordinate the
property to Craig Clark.
MOTION FOR STAFF TO PROVIDE GUIDANCE TO THE AGENCY
MSUC (Scott/McCandliss) to di rect sta ff to provi de gui dance to the Agency
regarding complicated land uses, and determine whether or not the Agency
should retain specialized counselor an investment advisor.
ITEM NO. 10 - RESOLUTION NO. 389 - AUTHORIZING AN ENVIRONMENTAL IMPACT REPORT
REGARDING CHANGE OF LAND USE AT THE "J"
STREET PARK AND APPROPRIATING FUNDS
THEREFOR
Staff was di rected by the Agency at thei r August 17th meeti ng to consi der a
1 and use change process at the "J" Street park relative to the proposed
property transfer with Mr. James Cappos. A General Plan amendment, Bayfront
Plan amendment, and Local Coastal Plan application will have to be submitted
i n order to di scuss such a trade. To accompli sh thi s, an Environmental
Impact Report must be prepared.
Community Development Director Desrochers reiterated that the property owner,
Mr. Cappos, will deposit $7,200 for marine biology, water quality, noise, and
energy consumption purposes. If need be, a report can be partially utilized
for evaluation of another parcel with regard to the reverse osmosis process.
Member McCandliss questioned staff's intention to redesignate land use in
thi s area. In response, Mr. Desrochers explained that the land is currently
designated open space, and a problem still exists due to the replanning of
the bayfront area.
RESOLUTION OFFERED BY MEMBER SCOTT, the reading of the text was waived by
unanimous consent, passed and adopted unanimously.
Irene Maxwell, 473 Berland Way, Chul a Vi sta, 92010, representi ng Citi zens
Enraged Agai nst SANDER Escapade (CEASE), objected to the appropri ati on of
$4,800 authori zi ng an Envi ronmental Impact Report to change the 1 and use in
this area. She expressed her concern that a change in land use is
unnecessary when more parkland is desired by the citizens.
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Redevelopment Agency Meeting -6- September 2, 1982
Robert Maxwell, 473 Berland Way, Chula Vista, 92010, opposed artY 1 and use
change of open space parkland to either light or heavy industrial uses for
two reasons: 1) Why the "big rush" after two years? 2) Why is the Coastal
Commi ssi on approval not the first thought si nce they are the controlling
factor?
Member Scott, in response to Mr. Maxwell's questions, noted that Fl uid
Systems is in need of equipment and land to test their reverse osmosi s
process.
James A. Berry, 885 Ash, Chul a Vi sta, reque sted i nformati on on the
disposition of the boat launch ramp and parkland in the bay front area.
Chairman Cox indicated if Mr. Cappos' plan is approved, parkland should be
available, and the possibility of a boat 1 aunch ramp is sti 11 under
consi derati on.
ITEM NO. 11 - REPORT: WHITEMAN LITIGATION
Due to pendi ng litigation, Agency Special Counsel and the Communi ty
Development Director request this item be discussed in Closed Session.
MOTION TO ADJOURN TO CLOSED SESSION.
MSUC (Scott/Cox) to adjourn to Closed Session to discuss pending litigation.
Mr. Gaylord Henry, 2356 Moore Street, # 201, San Diego, representi ng Ms.
Willene Whiteman, remarked that he is authorized to si gn any agreements
pertaining to the litigation of the Whiteman property, and that his client
has no problem with San Diego Shipbuilding taking possession of that property
by October 1 st.
Mr. Mi chae 1 Cowett, representing San Diego Shipbuilding and Repair, urged
that the Agency approve an agreement with his client who would like to
utilize the subject premises for a minimum 3 year period.
MEMBERS' COMMENTS
Member McCandl i ss expressed concern regardi ng the Sammis Group proposal
pertaining to the land use at "E" Street and Bay Boulevard. She questioned
whether thi s type of proposal really served the goal s of the City and its
citizens, particularly with regard to another theatre and an addi ti onal
office complex. The plan as proposed does not "tap" into the water
uniqueness of the plan.
MOTION TO RECONSIDER PREVIOUS AGENCY ACTION
MSUC (McCandl i ss/Scott) to reconsider previous Agency acti on with regard to
Sammi s Group proposal.
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Redevelopment Agency Meeting -7- September 2,1982
Member Malcolm commented that the Sammi s plan seems totally appropri ate
because of its family orientation.
Member Scott felt that it would be appropriate to continue discussions of the
Sammis Group concept to the September 16th meeting.
Chairman Cox speaki ng in favor of the motion, remarked that the theatre
concept does seem appropriate.
Chairman Cox requested information on the status of the Badi i project.
Communi ty Development Director Desrochers reported that Mr. Badii has
received funding from Beverly Hills Savings to construct his project on Third
Avenue across the street from the South Bay Regional Center.
Chai rman Cox commented on the 1 ack of constructi on acti vity downtown. Mr.
Desrochers indicated that the street improvements contractor is in compliance
wi th the contract.
ADJOURNMENT AT 9:14 p.m. to Closed Session, to the mi d-month meeti ng of
September 16, 1982 at 4:00 p.m., the workshop session of September 30, 1982
at 4:00 p.m., and the regular meeting of October 7, 1982 at 7:00 p.m. The
Recordi ng Secretary was excused and Executive Director Cole indicated that
the Closed Session ended at 9:45 p.m.
AH:dl
WPC 0354H
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