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Home My WebLink Aboutrda min 1983/11/17 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, November 17, 1983 Council Conference Room 4:00 p.m. City Hall ROLL CALL MEMBERS PRESENT Chairman Cox; Members Malcolm, Moore MEMBERS ABSENT Members Scott, McCand1iss STAFF PRESENT Executive Director Goss, Community Development Director Desrochers, Special Counsel Reed, Agency Attorney Harron, Redevelopment Coordinator Zeg1er ALSO PRESENT Paul Steiger ITEM NO.1 - APPROVAL OF MINUTES MSUC (Moore/Malcolm) to approve the minutes of October 20 and 25, 1983, as mailed. ITEM NO.2 - RESOLUTION - ACCEPTI NG THE PROPOSAL/AGREEMENT OF MacFARLANE AND ASSOCIATES, INC., FOR NEGOTIATION SERVICES IN SUPPORT OF CERTAIN PROPOSED BAYFRONT ACQUISITIONS, AUTHORIZING CHAIRMAN TO EXECUTE SAME, AND APPROPRIATING FUNDS THEREFOR It was noted that since this item would require a 4/5ths vote, no action could be taken this afternoon. MOTION TO CONTINUE ITEM TO NOVEMBER 22, 1983. MSUC (Cox/Moore) to continue to Tuesday, November 22, 1983, following the regular City Council meeting. ITEM NO.3 - INFORMATIONAL REPORT - SUBMISSION OF THE PROPOSED AGREEMENT FOR MAl NTENANCE AND MANAGEMENT OF THE TOWN CENTRE PARKING FACILITY TO THE AGENCY FOR REVIEW In accordance with the Disposition and Development Agreement between the Redevelopment Agency and Centre City Associates Limited-Commercial, the developer is to take over the management and ma intenance of the park ing facility. It is necessary, therefore, for the Agency to enter into an agreement with the developer assuring the management and operation of the parking facility since this facility is expected to be in operation before the end of this year. A draft agreement comprising covenants, conditions, Adjourned Regular Meeting of the Redevelopment Agency -2- November 17, 1983 and restrictions has been prepared which outlines the responsibilities of all property owners within the Focus Area, including the City, for the ma intenance, management, and estab 1 ishment of easements for the Focus Area and includes the deve 1 oper 's responsibility for the management and maintenance of the parkin9 facility. Official action on the subject agreement wi 11 be requeste of the Agency for the meeting scheduled in December. MOTION TO ACCEPT REPORT MSUC (Malcolm/Cox) to accept the proposed agreement for review and consideration. ITEM NO.4 - PUBLIC HEARING - RULES GOVERNING PARTICIPATION AND PREFERENCES BY OWNERS, OPERATORS OF BUSINESSES, AND BUSINESS TENANTS IN THE OTAY VALLEY ROAD REDEVELOPMENT AREA RESOLUTION NO. 459 - APPROVING AND ADOPTING RULES GOVERNING PARTICIPATION PREFERENCES BY OWNERS, OPERATORS OF BUSI NESSES, AND 8USI NESS TENANTS IN THE OTAY VALLEY ROAD REDEVELOPMENT AREA PURSUANT TO SECTION 33345 OF THE CALIFORNIA HEALTH AND SAFETY CODE In accordance with Section 33345 of the California Health and Safety Code, the Agency is requested to adopt rules for owner and tenant participation within the Otay Valley Road Redevelopment Road Project Area. The rules establish procedures governing such preferences and participation in the rehabilitation of property and development of new projects in conformance to the Redevelopment Plan. Chairman Cox declared the public hearing open at this time. There being no pub1 ic testimony, the Chairman declared the public hearing closed. RESOLUTION OFFERED BY MEMBER MALCOLM, the reading of the text was waived by unanimous consent, passed and adopted unanimously. ITEM NO.5 - REPORT: HOUSING CONSULTANT'S EVALUATION OF HOUSING OPPORTUNITIES, INCORPORATED HOUSING PROPOSAL Financing and cash assistance on a proposed moderate income for-sale housing project has been requested by Housing Opportunities, Inc. (HOI). That request has been submitted to the Agency's alternate housing financial consultant, Touche-Ross and Company, for evaluation. Community Development Director Desrochers informed members that the report from Touche-Ross was received this morning and has not been reviewed. The proposed project, Adjourned Regular Meeting of the Redevelopment Agency -3- November 17, 1983 located at the end of East Orange Avenue east of Interstate 805, would entail 168 four-p1ex for-sale units, with an average sales price of approximately $80,000. Referri ng to his report, Mr. Desrochers indicated that Hous ing Opportunities, Inc. is asking that the Agency fund the project with $1.6 million of the Low Income Housing Fund in the form of some combination grant and deferred loan. Touche-Ross is analyzing what that combination should be and is exploring the possibility of equity participation by the Agency as a component of the deferred loan arrangement. The result of this $1.6 million loan would result in a reduction of the required unit sales prices by approximately $11,000 per unit to accomplish the $80,000 projected sales price. Our concept is that the Agency would provide a silent second mortgage for eligible families. The Director defined "silent mortgage" as a mortgage that would not be called. For instance, if the unit is sold to another eligible family, the second would not be called; however, if the unit is sold to an ineligible buyer, the second would be called. Member Malcolm expressed concern that the staff does not have expertise in this field. 8ecause the Agency does not have enough information to take action on this item and he cannot be assured at this time that we are making a good investment on the land, he could not support the project. Commun ity Development Director Desrochers concurred with Member Malcolm's concerns indicating that Touche-Ross's expertise has been solicited for this purpose. Member Malcolm noted that the site may not be suitable to build because too much "attached" housing exists in the area. He suggested that someone take a look at the site, at no charge, and give staff an estimate of what the purchase price of the land should be. Mr. Desrochers pointed out that staff is not proposing the Agency purchase the 1 and. He further pointed out that HOI is attempting to provide a minimal margin of profit to get a cost effect ive project inasmuch as HOI is a not-for-profit organization sponsored by the Building Industry. In answer to Member Malcolm's question concerning excess housing monies, Mr. Desrochers indicated that State law requires after six years if money is not utilized, then it will be turned over to the County Housing Authority. Discussion followed concerning lack of affordable housing in Chula Vista. Mr. Desrochers stated that several proposa 1 s have been received for funds through the City's Single-Family Mortgage Revenue Bond Program. It was noted that the Touche-Ross report will be available most likely in the next two weeks. MOTION TO ACCEPT REPORT MSUC (Cox/Moore) to accept the status report. Adjourned Regular Meeting of the Redevelopment Agency -4- November 17, 1983 MEMBERS' COMMENTS Chairman Cox, referring to the Cotija Taco Shop on the corner of Third Avenue and "H" Street, expressed his concerns with the illegal drive-thru. MOTION TO INVESTIGATE LEGALITIES OF DRIVE-THRU MSUC (Cox/Malcolm) to direct staff to investigate legalities of drive-thru at Cotija Taco Shop and report back to the Agency to determine steps that have to be taken to resolve this; and, direct staff to investigate costs to replace the curb-cut and determine whose responsibility (Agency, Council, or property owner) it is to replace curb and incur the costs. Community Development Director Desrochers stated that a memo has been forwarded to the City Attorney's offi ce request ing his advisement in this situation. Chairman Cox asked if the Focus Area clock would be energized. Mr. Zeg1er indicated that the clock is not energized since Building A (Jack La Lanne's) is without power at this time. DIRECTOR'S COMMENTS Executive Director Goss sug~ested rescheduling the regular December Agency meeting due to conflicts. C airman Cox suggested that this be discussed at the Special Agency Meeting on November 22. ADJOURNMENT AT 4:40 p.m. to the Adjourned Regular Meeting of Tuesday, November 22, 1983, following the regular City Council meeting. ~ ~.£/ Pau . Desrochers - Executive Secretary WPC 0882H