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HomeMy WebLinkAboutrda min 1983/08/04 MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, August 4, 1983 Council Chambers 7:00 p.m. Public Services Building ROLL CALL MtM~tKS PKt.StNf Cnairman Cox; Memoers I~oore, l~cCanoliss, Scott MEMBERS ABSENT Member Malcolm STAFF PRESENT Acting Executive Director Asmus, Community Deve 1 opment Director Desrochers, Redevelopment Coordinator legler, Special Counsel Reed, Housing Coordinator Gustafson ALSO PRESENT Richard Zogob, Michael Cowett, George Merziotis ITEM NO.1 - APPROVAL OF MINUTES MSUC (Moore/McCandliss) to approve the minutes of July 7, 14 and 2í, 1983 as mailed. (Chairman Cox abstained from voting on the minutes of July 7, 1983.) ITEM NO.2 - RESOLUTION NO. 434 - APPROVING LAND USE CHANGE FOR CERTAIN PARCELS WITHIN THE TOWN CENTRE FOCUS AREA Mr. Richard Zogob, developer of the Focus Area, proposes that the land use designation for Parcels 1 and 2 (financial/office) be changed to restaurant for the development of a Seafood Broiler Restaurant on Parcel 2 and a portion of Parcel 1. Community Development Director Desrochers explained the trade-off proposed by the developer and staff's recommendation that the land use for Parcel 2 and a portion of Parcell be changed from office/financial to restaurant, and that the remainder of Parcel 1 and all of Parcel 6 in the master pl an be designated as commercial from office/financial and restaurant, respectively. Also, any request for additional restaurants should be submitted to the Agency for review accompanied by evidence of marketability and parking availability. Mr. Desrochers added that at their meeting this morning, the Town Centre Project Area Committee concurred with the staff report, however, they were not as concerned with a freestanding restaurant on Lot 6 as staff is. Therefore, they recommended approval of staff I s report wi th the caveat that if a freestandi ng restaurant is proposed for Lot 6, they desire to review the proposal on the basis of quality and type of establishment. In response to Chairman Cox I s question, the Di rector stated that staff proposes to convey Lots 1 & 2 because the Disposition ami Development Agreement (DDA) allows us to convey both parcels while the developer must submit plans for design review before he can build. If he does not develop by the January date as stated in Section 15 of the DDA, the Agency has the right of reverter. Redevelopment Agency Meeting - 2 - August 4, 1983 Member McCandliss questioned if the market study for the seafood restaurant indicates a financial health for restaurants in the Focus Area or only for this particular restaurant. And, unless the study addresses other restaurants, this could pose potential problems for other tenants and sacrifice future businesses. Community Development Director Desrochers informed members that a current market study has not been reviewed by staff and staff is going by the Agency's master plan that was proceeded by a market study previously prepared by the developer depicting two freestanding restaurants. Mr. Michael Cowett, Jennings, Enstrand & Henrikson, Inc., 2255 Camino del Rio South, San Diego, 92108, representing Centre City Associates, Limited-Commercial (CCAL-C), stated that the recommendation does nothi ng but shift restaurant use from Lot 6 to Lot 2. However, there should be some demonstration by the developer with respect to the market. The deve 1 oper is close to finalizing a deal with a restauranteur for Lot 6. Section 15 of the DDA provi des criteri a for modifying the master plan. This should be memorialized by an agreement between CCAL-C and the Agency rather than just a resolution. Evidence should also be provided that encompasses a marketing study by the restaurant. Member Scott expressed concern in changi ng a master plan for the near-term economics stating that this could result in poor planning. In response, Mr. Cowett di scussed the val i dity of prepari ng a market study in the near term since the Master Plan calls for an office and financial use on lots 1 and 2 and the vacancy rate for offices in Chula Vista is extremely high. Financial institutions (primarily savings and loans) have suffered significant setbacks recently. Discussion followed regard i ng the impact on the other five eating establishments in the Focus Area development. Mr. Richard Zogob, Centre City Associates, 315 Fourth Avenue, Chula Vi sta, revealed the five restaurants proposed for the Focus Area. He indicated that the Marie Callender Restaurant and Seafood Broiler, since they are speci a lty restaurants, woul d not severely impact other businesses along Third Avenue. Member McCandl i ss added that she is 1 ooki ng for balance in thi s proj ect and since the Agency's name is on thi s project, the Agency shou 1 d not proceed with it simply because "the market is there today," rather the vi ta 1 ity should be maintained. RESOLUTION OFFERED BY CHAIRMAN COX, the readi ng of the text was waived by unanimous consent, passed and adopted unanimously. For the record, Member Scott stated that he received a financial contribution for his political campaign last year from the developer, Mr. Zogob. ~--~ -~--~--~--~-----~---~-~ Redevelopment Agency Meeting - 3 - August 4, 1983 ITEM NO.3 - RESOLUTION NO. 435 - AUTHORIZING THE CHAIRMAN TO SIGN GRANT DEED CONVEYING LOTS 1 and 2 OF THE TOWN CENTRE FOCUS AREA SUBDIVISION TO CENTRE CITY ASSOCIATES, LIMITED-COMMERCIAL The commercial deve 1 oper of the Town Centre Focus Area has requested to purchase Parcels 1 and 2 of the Focus Area Subdivision in accordance with the Supplemental DDA. Escrow for the subject sale was opened on July 22 as directed by the Agency, and is planned to be closed on August 8 per the developer's request. Special Counsel Reed informed the Agency that the problem with a portion of the DDA involving i ncons i stenci es with the parking agreement have been resolved. RESOLUTION OFFERED BY MEMBER MOORE, the readi ng of the text was wa i ved by unanimous consent, passed and adopted unanimously. ITEM NO.4 - REPORT: MEMORIAL PARK WATER FEATURE A contribution to the Fine Arts fund was agreed upon by the Redevelopment Agency as they are the developers in the Focus Area (parking structure). Based upon the value of the parking structure, 1% of the $25,00D bid amount, the Agency requested that a water feature be used as the Fine Arts contribution and be displayed at the entrance to Memorial Park. Staff believes that the issue regarding the choice of options for this feature can be resolved in combination with the Design Review Board if staff were allowed to negotiate a contract and a price with the selected manufacturer of a stock item water feature. (On display for members' revi ew were samp 1 es of water feature selections.) MOTION TO ACCEPT STAFF RECOMMENDATION MSUC (Scott/Cox) to accept the report and consi der the issue to negotiate with the manufacturer of water features as to material and installation costs. Member Moore cautioned that when purchasing the water feature, staff should be aware of the potent i a 1 damage and type of maintenance required for the structure. Chairman Cox suggested that in conjunction with the Fiesta de la Luna celebration in October, it is hoped that the water feature and clock will be installed and operational. ITEM NO.5 - REPORT: STATUS OF THE RESTAURANT PARCEL LOCATED AT "F" STREET AND BAY BOULEVARD In accordance with Agency di rect ion, staff has submi tted correspondence to the chief spokesman for Atlas Hotel s indicating that the Agency is in a position to negotiate with the developer. Agency members were a 1 so advi sed --~-~----~----~-- Redevelopment Agency Meeting - 4 - August 4, 1983 that a Request for Proposal (RFP) is to be prepared. Following the Atlas Hotels' representative's return from vacation, a meeting will be arranged to identify the issues in the RFP. In response to Agency Members' concern, Redevelopment Coordi nator Zegler explained the "right of first refusal" procedure clarifying that this option must be honored. To state now that a right of first refusal exists and that the Agency can accept other offers is not true. Also, Atlas Hotels is considering the parcel in question under different circumstances now and Atlas Hotels recognizes that the lot is a very saleable piece of property. Staff is seeking approval to solicit appraisals for this property, and it is requested that a market value for the property be obtained in order to provide this information in any option agreements with Atlas Hotels. MOTION TO ACCEPT REPORT. MSUC (Cox/McCandliss) to accept the report and the wording of the draft Request for Proposal, and authorize staff to solicit proposa 1 s for an appraisal for the property. ITEM NO.6 - REPORT: STREET PROPERTY-SAMMIS DEVELOPMENT For the past eight years, there have been no less than five developers that have attempted to develop a plan for the area at the northwest quadrant of 1-5 and "E" Street in the Bayfront project, owned by Mr. Joeneal Street. For the past 18 months, Sammi s Propert i es of San Di ego has been attempting to develop this parcel as well. Sammis Properties has now withdrawn from this attempt. In answer to Member McCandliss' question concerning the timeframe to resolve legal problems on this property, Special Counsel Reed noted that since the rear parcel is controlled by a recei vershi p from the Securi ty and Exchange Commission (SEC) which is a Federal government agency, we have no power of condemnation over them. In talking with the receivership through their legal counsel, if the Agency can agree on a number, they can work out a package which the U. S. Di stri ct Court would approve in terms of purchasing the property and a condemnation case would then have to be filed to satisfy the Merziotis fami ly' s interest. Therefore, it woul d take approximately 9-12 months to resolve these issues if we began now. In response to Member Scott's question regardi ng his i nvo 1 vement with the SEC, Special Counsel Reed advised that he should not have any legal problems. Community Development Director Desrochers informed the Agency that he wi 11 propose to have the same appraiser for both the Crystal's and Street parcels and return to the Agency with this proposal. MOTION TO ACCEPT REPORT MSUC (Moore/Scott) to accept the report and authorize solicitation of requests for an appraisal of the Joeneal Street and adjacent property. Redevelopment Agency Meeting - 5 - August 4, 1983 ITEM NO.7 - REPORT: BAYFRONT SIGNS A Chula Vista Bayfront Sign Program including the construction and installation of certain signs within the Bay Boulevard/"E" Street gateway was approved by the Redevelopment Agency in August 1980. Since other areas of the Bayfront are developing and ownership of properties are limited, it appears to be the appropri ate time to estab 1 ish the Bayfront Light i ng and Landscaping Assessment District which would include financing for maintenance of decorati ve signs. The estab 1 i shment of the Assessment Di stri ct, a new design for existing freeway-oriented promotional signs, locations and descri pt ions for additional traffi c contro 1, street name, and directional signs, and a plan for a landscaped median for "J" Street at Bay Boulevard is addressed in the overall plan. Community Development Director Desrochers indicated that funds have been appropriated in this year's budget to do two signs at "E" Street and "L" St reet. Income Property Group has offered to pay half the costs. Staff suggests that verbage on these signs will conform to Ca lTrans requ i rements. Mr. Desrochers added that although we are unhappy with the current Bayfront signage, much interest has been recei ved about the blank si gns at the B ayf ront ent ryways. Member Moore expressed concern with the condition of the median strip at "J" Street and Bay Boulevard and requested staff's intention of improving this condition. Communi ty Deve 1 opment Di rector Desrochers stated that the City Landscape Archi tect wi 11 review this matter but it is most likely that the "board" material similar to the type used at the "E" Street exit will be used. MOTION TO ACCEPT STAFF RECOMMENDATION MSUC (Cox/Moore) to accept staff's recommendation. ITEM NO.8 - REPORT: STATUS OF REVERSE OSMOSIS FACILITY The Agency was previously advised in Apri 1 that Mr. Cappos and representat i ves of Rohr Industri es were discussing the feasibility of locating Mr. Cappos' soft water treatment plan and a fresh water test facility on the City's and Rohr's property. A title search was authorized and prepared to establish fee ownerships and property boundaries. However, the owner is no longer interested in the subject parcel and wishes to remain in his current location. MOTION TO ACCEPT REPORT MSUC (McCandliss/Moore) to accept the report. ITEM NO.9 - REPORT: LOCAL COASTAL PLAN STATUS Per Agency direction of July 21, 1983, the consultants are preparing the Plan "0" for submittal to the Coastal Commission on October 1. Redevelopment Agency Meeting - 6 - August 4, 1983 MOTION TO ACCEPT REPORT MSUC (Scott/Cox) to accept the report. Chairman Cox commented on staff's memorandum concerning the LCP consultants' request for contract amendment. Staff is requesting that the Agency appoint a subcommittee to review this matter. MOTION TO APPOINT SUBCOMMITTEE MSUC (Cox/Scott) to appoint Members Scott and McCandliss to a subcommittee to discuss additional compensation for Sedway Cooke Associates. ITEM NO. 10 - RESOLUTION NO. 436 - ACCEPTING LOAN IN THE AMOUNT OF $45,600 FROM THE CITY OF CHULA VISTA FOR OTAY VALLEY ROAD STUDY AND APPROPRIATING FUNDS THEREFOR At its meeting of August 2, 1983, the City Council authorized a loan in the amount of $45,600 to the Redevelopment Agency for the purpose of conducting a study of the Otay Valley Road Redevelopment Survey Area. The City Counc i 1 has offered the loan under the terms and conditions of the existing contractual agreement regarding such transactions between the Agency and the Council with the stipulation that the loan will be subject to repayment only in the event that the Otay Valley Road Redevelopment Survey Area is established as Redevelopment Area and only from tax increment receipts. RESOLUTION OFFERED BY CHAIRMAN COX, the readi ng of the text was waived by unanimous consent, passed and adopted unanimously. ITEM NO. 11 - RESOLUTION NO. 437 - APPROVING A CONTRACT WITH BERRYMAN & STEPHENSON, INC. FOR THE PROVISION OF CONSULTING SERVICES FOR THE DEVELOPMENT OF SURVEY AND ANALYSIS INFORMATION FOR OTAY VALLEY REDEVELOPMENT STUDY AREA AND AUTHORIZING THE CHAIRMAN TO EXECUTE SAID AGREEMENT Funding for a consu ltant study and analysis of the Otay Valley Road Redevelopment Study Area to determine whether or not this area was suitable for a redevelopment project was established at the City Council meeting of February 15, 1982. As a resu lt of the RFP, staff received six proposals which were evaluated pursuant to a selection process. The selection committee chose the firm of Berryman & Stephenson, Inc., in collaboration with Community Systems Associ ate, Inc. and Alfred Gobar Associates, Inc. as the most qualifed firm to complete the required work. RESOLUTION OFFERED BY MEMBER McCANDLISS, the reading of the text was waived by unanimous consent, passed and adopted unanimously. Redevelopment Agency Meeting - 7 - August 4, 1983 MEMB ERS' COMMENTS Chairman Cox noted that official confirmation was recei ved from HUD this morning notifying the City that we have been awarded a grant through the Jobs Bill for $358,000. Member Moore, referri ng to the previously mentioned Fiesta de la Luna celebration in October, requested that staff be directed to discover if the parking structure wi 11 be completed in order to provide parking for thi s event. Special Counsel Reed remarked that he wou 1 d 1 i ke to revi ew with staff the City's liability and insurance coverage as it relates to setting foot on the premises prior to the project being released to the City. MOTION TO CONTACT PARKING STRUCTURE OFFICIALS MSUC (Moore/Scott) to direct staff to contact appropriate official(s) regardi ng parking structure facilities that would be completed and operational by October 15, specifically the sidewalks and facilities in front of commercial structures, and whether any commercial structures will be open. MOTION TO ADJOURN TO CLOSED SESSION MSUC (Cox/Moore) to adjourn to Closed Session at the conclusion of the Industrial Deve 1 opment Authority meeting and the Adjourned City Council meeting, and then reconvene as the Redevelopment Agency to adjourn to Closed Session immediately following for matters of litigation. The meet i ng adjourned to the above mentioned meetings at 8:03 p.m. and reconvened at 8:15 p.m. ADJOURNMENT at 8: 15 p.m. to Closed Session and the mid-month meeting of August 18, 1983 at 4:00 p.m. The Recording Secretary was excused and the Executive Secretary reported that Closed Session ended at 8:20 p.m. p~&;m"'" WPC 0775H -----~-~..~----------~~---~-----~