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HomeMy WebLinkAboutrda min 1983/01/13 MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, January 13, 1983 Council Chambers 7:00 p.m. Public Services Building ROLL CALL MEMBERS PRESENT Chai rman Cox; Members Malcolm, Moore, Scott, McCandliss MEMBERS ABSENT None STAFF PRESENT Acting Executive Director Asmus, Community Development Director Desrochers, Redevelopment Coordinator legler, Housing Coordinator Gustafson, Development Specialist Kassman, Special Counsel Reed ITEM NO.1 - APPROVAL OF MINUTES MSUC (Scott/Moore) to approve the minutes of December 2, 16, and 21, 1982 as mailed. ITEM NO.2 - STATUS REPORT: BAYFRONT PROJECTS A brief status report was prepared for members' review concerning Bay Boulevard and "J" /Sander site, Cappos/IIJII Street Park, Sedway/Cooke, Jones and Stokes, and medi ation. Regarding the latter, Conmunity Development Director Desrochers clarified that the Coastal Conmission does not want to involve themselves with mediation procedures as they relate to the Local Coastal Plan. However, they will participate in mediation efforts concerning the wetlands. Member Scott expressed concern that the mediation efforts would not accomplish anything. Community Development Director Desrochers assured the Agency that Ms. Knaster who represents the Institute for Environmental Mediation is attempting to ascertain what the issues are and who the parties are to the dispute. It may, or may not, be advisable to commit to mediation at this time however, and it should be noted that only the possibilities are being explored. MOTION TO ACCEPT REPORT MSUC (Malcolm/Moore) to accept the report on the Bayfront projects. Redevelopment Agency Meeting -2- January 13, 1983 ITEM NO.3 - REPORT: BA YFRONT CLEAN-UP Staff was requested .to investigate a method of cleaning up the land and tidal areas of the Bayfront project area. A barrier can be installed on "F" Street, west of the gates to the Shangri-La and Cappos properties, to prevent dumping of trash. However, the removal of the camels which have been lying in the mud for years will be an expensive task. MOTION TO ACCEPT REPORT MSUC (Scott/Moore) to accept the report authori zi ng the i nsta 11 ation of a bollard barrier on "F" Street, and authorize the Chairman to request that the Port District remove the came 1 s and other debris in the Bayfront area starting at "F" Street. ITEM NO.4 - REPORT: SWEETWATER CHANN EL--CAL TRANS The Agency was apprised of the results of the Coastal Commission staff review regarding the joint Sweetwater flood control Interstate 5/Route 54 projects in relation to the Coastal Act. In summary, the Commission staff does not concur with the U.S. Army Corps of Engineers' determination that the proposed project is consistent to the maximum practicable with the California Coastal Management Program. Coastal staff believes that additional mitigation measures on the part of the Corps and CALTRANS are required. Two options were presented by the Coastal Commission that would impact Chu1a Vista's bayfront planning efforts in a substantial manner. MOTION TO ACCEPT REPORT MSUC (Scott/Malcolm) that the Agency support the Corps and CALTRANS position that their project is consistent with the Coastal Act, and that we formally advise them of this action. Chairman Cox requested that every attempt be made to docket this item on the February Coastal Commission Agenda since that meeting will be held in San Diego. Community Development Director Desrochers indicated that CALTRANS and the U.S. Army Corps of Engineers is attempting to docket the item; staff will know more details regarding this item at an upcoming meeting. ITEM NO.5 - STATUS REPORT: TOWN CENTRE I Staff prepared a brief status report regarding the retail mall development, United Artists Theater, Marie Callender Restaurant, parking garage, and the Badii project. Regarding the latter, Communi ty Development Desrochers informed Agency members that Mr. Badii no longer wishes to pursue his proposed development of a 200-bed convalescent hospital at 521-525 Third Avenue. A letter of withdrawal has been received by staff. MOTION TO ACCEPT REPORT MSUC (Scott/Malcolm) to accept the report. --....--. .- -----_._-~------ Redevelopment Agency Meeting -3- January 13, 1983 ITEM NO.6 - REPORT: IINO BICYCLE RIDING" SIGNS FOR THIRD AVENUE At the request of many residents of the downtown Chu1a Vista area urging that more efforts be made to prevent bicyclists from riding on the sidewalks on Thi rd Avenue, an estimate for making and installing 12 IINo Bicycle Riding" signs has been obtained. The signs wi 11 hang from the 1 ampposts from "E" to "F" Streets. MOTION TO ACCEPT THE REPORT MSUC (Moore/Scott) to accept the report and direct staff to purchase and install the proposed signs util i zing funds appropri atedi n the Third Avenue Construction Account #995-9950-BF02. ITEM NO.7 - RESOLUTION - APPROPRIATING FUNDS FOR THE COMMERCIAL REHABILITATION PROGRAM Community Development Desrochers requested that this item be trailed to the end of the agenda pending the arrival of the Town Centre Development Corporation President, Mr. Hugh Christensen. ITEM NO.8 REPORT: PUBLIC RELATIONS ACTIVITIES At the request of the Agency, the first of the bi-week1y status reports on the public relations activities' services of the Nuffer/Smith firm was presented. The report covered activities from early December to the -present including complete activities begun in the last fiscal year and the performance of special projects required. MOTION TO ACCEPT REPORT MSUC (Scott/Malcolm) to accept the report. ITEM NO.9 - REPORT: KATZ/HOLLIS REPORT ON TAX INCREMENT Acting Executive Director Asmus requested that this item be continued to the next Agency meeting on January 27. MOTION TO CONTINUE ITEM MSUC (Cox/Scott) to conti nue thi s item at the Agency meeti ng of January 27, 1983. ITEM NO. 10 - RESOLUTION NO. 404 - DESIGNATING A CERTAIN PORTION OF THE OTAY RIVER VALLEY AS A REDEVELOPMENT SURVEY AREA At thei r meeti ng of October 21, 1982, the Agency di rected staff to prepare a report on the possibility of declaring the Otay Valley Road area as a Redevelopment project area. The report discusses the purposes of, and procedure for, establishing a Redevelopment project survey area and the suitability of establishing such a survey area in the Otay River Valley. ..---------------- Redevelopment Agency Meeting -4- January 13, 1983 Community Development Director Desrochers discussed the contents of the letter that was received from United Enterprises, Inc. voicing their opposition to the inclusion of any of its property into the ultimate Redevelopment project survey area. RESOLUTION OFFERED BY MEMBER SCOTT, the read i ng of the text was wa i ved by unanimous consent, passed, and adopted unanimously. Speci a 1 Counsel Reed noted that by acceptance of thi s report the stage wi 11 be set for: 1. The need for a redevelopment area, and 2. Designating boundaries. Community Development Director Desrochers stated that a request for allocation of Community Development Block Grant funds to underwrite the cost of a survey area will be brought to the City Council at a later date. (Discussion on Item No.7 resumed at this time.) ITEM NO.7 - RESOLUTION NO. 405 - APPROPRIATING FUNDS FOR THE COMMERCIAL REHABILITATION PROGRAM Development Specialist Kassman indicated that there are two projects that are currently awaiti ng loan approval. The California Eye Clinic at "F" Street and Third Avenue and 286 Third Avenue, both structures are owned by Mr. Tom Money. A loan of $54,000 is required for the Eye Cl inic building and approximately $40,000 is required for the business at 286 Third Avenue. The Agency's share, 40 percent to subsidize the loans or-$36,OOO, is needed at this time. Member Mal co 1m requested i nformati on on the funds from the i nterest-beari ng account. In response, Mr. Kassman stated that funds are initially placed into an interest-bearing account. When the funds are loaned, they are taken out of the interest-bearing account so that interest transfers to the bank in lieu of subsidizing the loan. Di scuss ion ensued regardi ng the revo 1 vi ng fund procedure, the status of the loan program in the event that interest rates change, and the maximum loan amount permitted to be funded before being reviewed by the Redevelopment Agency. MOTION TO INVESTIGATE INTEREST RATES MSUC (Scott/Malcolm) to direct staff to report back on the amount of- money that is bei ng returned to the program from the loans that have been made and investigate a sliding interest rate. Also, can the Agency obta in a lower rate from the bank as interest rates go lower or do we have to wait until termination of the contract in August? And are loans marketab 1 e, in other words, are they a normal bank loan that can be purchased on a secondary market? Redevelopment Agency Meeting -5- January 13, 1983 Development Specialist Kassman i ndi cated that the Bank of America is not making any loans other"than commercial rehabilitation loans for the City. RESOLUTION OFFERED BY CHAIRMAN COX, the reading of the text was waived by unanimous consent, passed and adopted unanimously. DIRECTOR'S COMMENTS Acting Executive Director Asmus requested that a Closed Session be held for potential litigation. MOTION TO ADJOURN TO CLOSED SESSION MSUC (Scott/Malcolm) to adjourn to Closed Session to discuss potential litigation. SINGLE-FAMILY flDRTGAGE REVENUE BOND ISSUE Housing Coordinator Gustafson reported that the City Counc i 1 posed the possibility at the January 11th meeting of using Redevelopment Agency Low and Moderate-Income Housing Funds to reserve a portion of the single-family mortgage revenue bond allocation. Mr. Gustafson reported that such a use of those funds would be possible and made the following points: 1. Staff would not recommend such a step unless a reasonable response from private developers was obtained at the final commitment meeting scheduled for developers on Friday, January 14; 2. If the City reserved an additional $10 million allocation beyond the private developer's allocation, that would require the use of $55,000 from the Low and Moderate-Income Housing Fund; 3. But staff would feel that was an acceptable use of the funds as there would be no risk to the City in the use of those funds. If the Mortgage Bond Allocation Committee declared those funds forfeited as a result of the City not going forward with the issue, State law would require that the funds be-used by the City for low and moderate-income housing. That simply means that the funds would return to the Low and Moderate-Income Housing Fund; - 4. If the City did use these funds to secure a portion of the allocation, the allocation amount would be made available to developers prior to the issue of the bonds. The developers would pay back the City for the participation fee and that fee would return to the Low Income Housing Fund; Redevelopment Agency Meeting -6- January 13, 1983 5. If Low and Moderate-Income Housing Fund money was used for this good faith deposit, the resulting mortgages would be restricted to individuals or families at or below 120% of median income rather than the 150% ceiling for the rest of the bond issue. That is because Low and Moderate-Income Housing Fund dollars must be used to benefit that category of individual; 6. By taking this step, the City would be giving developers in Chu1a Vista a chance to take a longer look at the condition of the Mortgage Rate Market, reserving favorable mortgages for those developers to pick up at a later date when it might appear more reasonable for them to participate. Mr. Gustafson reported that after the participation by developers was ascertained at the January 14th meeting, a special meeting of the Agency mi ght be schedu 1 ed after the City Council meeting of January 18 for the Council to act on the recommendation to appropriate low income housing fund dollars for this purpose. ADJOURNMENT at 7:33 p.m. to Closed Session, the Special Meeting of Tuesday, January 18, and the mid-month meeting of January 27,1983 at 4:00 p.m. The Recording Secretary was excused and the Executive Secretary reported that Closed Session ended at 8:30 p.m. AH:vt WPC 0506H