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HomeMy WebLinkAboutrda min 1983/12/15 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, December 15, 1983 Council Conference Room 4:00 p.m. City Hall ROLL CALL MEMBERS PRESE NT Chairman Cox; Members Moore, McCandliss, Scott, Malcolm STAFF PRESENT Executive Director Goss, Commun ity Development Director Desrochers, Redevelopment Coordinator legler, Special Counsel Reed, Agency Attorney Harron, Development Specialist Kassman, Housing Coordinator Gustafson ALSO PRESENT Larry McKenna, Dr. Guy Lichtey, Hugh Christensen, Michael Cowett, Richard logob ITEM NO.1 - APPROVAL OF MINUTES MSUC (Moore/Malcolm) to approve the minutes of November 3, 15, 17, and 22, 1983 as mailed. ITEM NO.2 - RESOLUTION ~ AMENDING OWNER PARTICIPATION AGREEMENT TC/OP 58 BETWEEN THE REDEVELOPMENT AGENCY AND THE SOUTH BAY AMBULATORY SURGICAL ASSOCIATES The Redevelopment Agency entered into an owner participation agreement with the South Bay Ambulatory Surgical Associates on July 21, 1983, for the construction of an out patient surgical hospital at the southeast corner of Landis Avenue and Davidson. Exterior modifications for the building have been submitted to the City for review since that time. The new proposal has been evaluated by the Town Centre Design Review Committee and approval is recommended. Discussion followed regarding the unprotected window areas to be located along the south facing elevations. In order for windows with in ten feet of the property or unprotected windows within five feet of the property line to be located here, the applicant must gain approval from the City's Board of Appeals. The architect for the project stated that the windows were designed in accordance with the Uniform Building Code. Further discussion involved: fire wall standards, property setback s, protected windows, and the impact of this project after completion of the parking structure. In answer to Chairman Cox's quest ion, Special Counsel Reed indicated that conditions could be inserted into the owner participation agreement that for a specific number of years or perhaps for the life of the Redevelopment ADJOURNED REGULAR REDEVELOPMENT AGENCY MEETI NG - 2 - December 15, 1983 Project in the event that the parcel is sold or it becomes a public structure, if the Agency determines its responsibility to be built to the lot line or close to the property line and windows are there, the owner would be required to comply with the Agency's request with so many day's notice. Chairman Cox suggested that this item be trailed in order for Agency Special Counsel to render a written opinion on this matter. ITEM NO.3 - RESOLUTION NO. 461 - APPROVING A RECIPROCAL AGREEMENT OF EASEMENTS AND DECLARATIONS ESTABLI SHI NG RESTRI CTI ONS AND COVENANTS FOR THE TOWN CENTRE FOCUS AREA INCLUDING PROVISIONS FOR THE MAI NTENANCE AND MANAGEMENT OF THE TOWN CENTRE PARKING FACILITY, AND AUTHORIZING THE CHAIRMAN TO EXECUTE SAID AGREEMENT In accordance with the Disposition and Development Agreement with Centre City Associates, Limited-Commercial and the Redevelopment Agency, the developer is to take over the management and maintenance of the parking structure. The facility is expected to be in operation early next year; therefore, it is necessary for the Agency to enter into an agreement with the developer for assuring the management and operation of the park ing facil ity. The developer, Agency staff, and Special Counsel have prepared an agreement comprising covenants, conditions, and restrictions with this regard. The document outlines responsibilities of all property owners within the Focus Area including the City for the maintenance, management, and establishment of easements for all properties within the Focus Area. The agreement also includes the develofer's responsibilities for the management and maintenance of the parking faci ity. RESOLUTION OFFERED BY MEMBER McCANDLISS, the reading of the text was waived by unanimous consent, passed and adopted unanimously. ITEM NO.4 - RESOLUTION NO. 462 - APPROVING AMENDMENT TO THE SUPPLEMENTAL DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AND CENTRE CITY ASSOCIATES LIMITED-COMMERCIAL MODIFYING THE MASTER PLAN AND SCHEDULE OF PERFORMANCE A six-month extension of time is requested in the amendment to the Supplemental Disposition and Development Agreement between Centre City Associates, Limited-Commercial and the Redevelopment Agency. Section 15 of the Supplemental Agreement is used as a basis for the developer's request to expand the land use designation from commercial to include restaurant- commercia 1. At issue is extending the deadline for committed development of parcels 1 and 6 from January 1, 1984, to July 1, 1984. To extend the deadline another six months would be consistent with the actions taken thus far by the Agency in support of the redevelopment of the Focus Area, since the developer has complied with other Agency requirements. Community Development Director Desrochers reiterated that staff is proposing the Agency add to the cost of the parcel the current market interest rate on long-term investment at a range of 10-1/2 to 12 percent. - -------~ ADJOURNED REGULAR REDEVELOPMENT AGENCY MEETING - 3 - December 15, 1983 Mr. Richard Zogob, developer represent ing Centre City Associates, Limited-Commercial, distributed copies of a proposal for a restaurant for parcel 6. The proposed restaurant, based in Texas, would be the second such restaurant located in California. Member Scott noted that the restaurant, Fuddruckers', was recently the subject of a favorable article in the Wall Street Journal. He stated that he would be favorably inclined to consider a development proposal from them. Member Malcolm agreed that the firm appeared to be a winner and could be an asset to the project. Discussion followed concerning responsibility to install the sidewalks in front of Marie Callender Restaurant. Community Development Director Desrochers stated that the sidewalk construction is the responsibility of the developer. RESOLUTION OFFERED BY MEMBER SCOTT, the reading of the text was waived by unanimous consent, passed and adopted unanimously. Member Scott noted that he would be hard pressed to extend this agreement for more than six months. ITEM NO.2 - RESOLUTION - AMENDING OWNER PARTICIPATION AGREEMENT TC/OP 58 - SOUTH BAY AMBULATORY SURGICAL ASSOCIATES (CONTINUED) Special Counsel Reed read a proposed amendment to the Owner Participation Agreement regarding the fire wall to the South Bay Surgical Center as requested earlier by Chairman Cox. Member Scott remarked that a statement sh ou 1 d be added to Mr. Reed's amendment indicating that if the project is approved by the Board of Appeals, the amendment should be waived; otherwise, we would be circumventing their authority. MOTION TO REFER TO STAFF MSUC (Cox/Malcolm) to refer the report back to staff to include an amendment to the Owner Participation Agreement as provided by Agency Special Counsel to be brought back to the Agency at a future date. ITEM NO.5 - REPORT: THIRD AND "H" STREET PROPERTIES Agency members have been informed of cont inu ing di scuss ions between Agency staff and property owners of businesses located on the northwest corner of Third Avenue and "H" Street; namely, the Cotija Taco Shop, Jetco Discount Furniture, and PIP Printing. Agency Counsel has reviewed the issue of the drive-up window and curb closings at the Cotija Taco Shop. At a recent meeting with the property owner, the question was raised of requesting the Agency to loan funds to the property owners to facilitate a joint development of the subject corner. ADJOURNED REGULAR REDEVELOPMENT AGENCY MEETI NG - 4 - December 15, 1983 MOTION TO ACCEPT REPORT MSC (McCandliss/Moore) to accept the report. (Member Malcolm voted no.) Speaking against the motion, Member Malcolm cited various concerns regarding what he considered to be the Agency's grave error in not acquiring the property, as the current businesses are not appropr i ate for that site. Noting the $30 million development across the street (South Bay Regional Center), Member Malcolm remarked that the Third and "H" Street corner is a key focal point in the City. In answer to Chairman Cox's question, Community Development Director Desrochers stated that an owner participation agreement was not entered into with the Cotija Taco Shop owner because the improvements to the site were under $10,000. Member Scott expressed concern that Special Counsel's opinion rendered today is different from opinions in the past. He suggested that a closed sess ion be held to discuss the ramifications of what can or cannot be done. MOTION TO ADJOURN TO CLOSED SESSION MSUC (Scott/Cox) to adjourn to Closed Session to discuss this item. ITEM NO.6 - RESOLUTION NO. 463 - APPROPRIATING FUNDS FOR THE COMMERCIAL REHABILITATION LOAN PROGRAM Since April 1981, $206,000 in Agency funds and $54,000 in Block Grant funds have been allocated to the Commercial Rehabil itation Loan Program administered by the Town Centre Development Corporation. Over $400,000 in construction activity has been generated through the use of these funds through a leveraging agreement with the Bank of America. Currently, $303,468 in loan applications are pending which will use up all the remaining LDC funds, with more rehabilitation anticipated in 1984. Mr. Hugh Christensen, representing the Town Centre Development Corporation, stated that $15,000 has been repaid to the Town Centre Development Corporation. Because the corporation anticipates additional loan requests, funds have been requested from the Agency. Development Special i st Kassman indicated that, in 1983, $4,496.79 was returned to the Agency, and in 1983, $689 has been returned. The interest is returned to the bank. Discussion followed regarding the priority suggested by staff as outlined in the report. (Member Malcolm left the meeting at this time, 4:55 p.m.) Mr. Chri stensen stated that he objects to some of staff's suggested priorities because originally the LDC was requested to move the projects along more quickly. (Member Scott left the meeting at this time, 5:00 p.m.) ADJOURNED REGULAR REDEVELOPMENT AGENCY MEETING - 5 - December 15, 1983 Member Moore noted that staff's suggested priorities are realistic if they are not in competition. In response, Community Development Director Desrochers remarked that he would like Agency direction regarding use of LDC funds. He emphasized that the LDC should be aware that funds are not part of an unending stream. Member Scott returned to the meeting at this time, 5:04 p.m. Member Moore pointed out the LDC should not be given any more latitude than the Agency gives to staff. RESOLUTION OFFERED BY MEMBER McCANDLISS, reading of the text was waived by unanimous consent, passed and adopted unanimously by those present. Chairman Cox added that the Redevelopment Agency is very appreciative of the Town Centre Development Corporation's assistance. ITEM NO.7 - REPORT: MARKETING AND SALE OF THE BAYFRONT PARCEL KNOWN AS PARCEL 3 (CRYSTAL T'S) Three responses have been received as a result of the Request for Proposal for the marketing and sale of the subject bayfront parcel. The respondents are C. W. Clark, Inc., the previous developer of the site under an expired Disposition and Development Agreement; Grubb & Ellis; and Merrill Lynch, Real Estate Division. A review panel composed of the Assistant City Manager, the Director of Building and Housing, and the Acting Director of Planning has evaluated the proposals. Chairman Cox informed the Agency that Member Scott may have a possible confl ict of interest and will refra in from any discussions on this item. Member Scott left the meeting at 5:07 p.m. Community Development Director Desrochers stated that staff could bring back a contract with Grubb & Ellis at the next meeting, if this is the Agency's des ire. MOTION TO ACCEPT STAFF RECOMMENDATION MSUC (Moore/McCandliss) to accept the staff recommendation that the Agency approve the selection of the review panel and authorize an exclusive r i ght-to-sell 1 i sting be entered into between the Agency and Grubb & Ell is Company, Commercial Brokerage, to be brought forth for approval at the next meeting. The motion passed by the following vote, to wit: AYES: Moore, McCandliss, Cox ABSTAIN: Scott ABSENT: Malcolm ADJOURNED REGULAR REDEVELOPMENT AGENCY MEETING - 6 - December 15, 1983 Community Development Director Desrochers clarified that the subject parcel was still designated as a restaurant use. The Agency recessed at 5:10 p.m. The Agency reconvened at 5:15 p.m. Chairman Cox suggested that Item No. 10 be heard at this time. ITEM NO. 10 - RESOLUTION NO. 464 - APPROVING A GRANT TO THE LIONS CLUB OF CHULA VISTA FOR A HOUSING STUDY AND APPROPRIATING FUNDS THEREFOR On December 6, 1983, the City Council received a letter from the Lions Club of Chula Vista requesting funding for a study of the feasibility of building a Lions Manor Housing Project on the site of the Lions Club Community Center at Fourth and Mankato. Lions Manor would be a low-income senior and handicapped rental hous i ng project funded by the Department of Hous ing and Urban Development Section 202 Program. Hous ing Coord inator Gustafson reported that at yesterday's meeting of the Commission on Aging, the Commission supported staff's recommendation for funding for Lions Manor. Mr. Roy Buddhu, representing Lions Club of Chula Vista, indicated that he had no problems with the details of the funding request. RESOLUTION OFFERED BY CHAIRMAN COX, the reading of the text was waived by unanimous consent, passed and adopted unanimously. ITEM NO.8 - RESOLUTION NO. 465 - APPROVING THE AGENCY'S REPORT ON THE OTAY VALLEY ROAD REDEVELOPMENT PLAN AND AUTHORI ZI NG THE TRANSMITTAL OF THE REPORT TO THE CHULA VISTA CITY COUNCIL Ca 1 iforn ia Commun ity Redevelopment Law, Section 33352 requires that every redevelopment plan submitted by the Agency to the legislative body be accompanied by a report containing specific information about the plan. The Agency is therefore requested to approve the report and transmit the plan and report to the City Council for consideration at their meeting scheduled for December 20, 1983. Community Development Director Desrochers stated that this is an attempt to comply with regulations of the Health and Safety Code of the State of California and the consultant has complied with every "letter of the law." In answer to Chairman Cox's quest ion regarding concerns of citizens, Mr. Desrochers stated that it would be more appropriate to address some citizen's concerns this afternoon. Special Counsel Reed indicated that this is a report prepared by staff based upon the consultant work. It is not a public ADJOURNED REGULAR REDEVELOPMENT AGENCY MEETING - 7 - December 15, 1983 hearing item. Once the report is approved by the Redevelopment Agency, it is then submitted to the City Council and after a joint hearing by the Redevelopment Agency/City Council, the City Council adopts the Redevelopment Plan. Mr. Reed indicated that he was satisfied with the report as it is legally adequate and can be submitted to the Council with or without formal hearing. Discussion followed concerning written comments from some members of the Citizens Action Network, Messrs. McKenna and Lichtey, regarding proposed amendments to the Redevelopment Plan. Dr. Lichtey informed Agency members that he is distributing copies of concerns that have been revised since the last set of proposed amendments were distributed. He noted that they are not requesting action be taken on these concerns tonight but would appreciate the Agency's review. In answer to Chairman Cox's question, Special Counsel Reed indicated that the Redevelopment Plan does not supersede the General Plan. Discussion followed concerning statements made by the Water Quality Control Board, the use of techn i ca 1 geological information not prov i ded by City staff, and the use of tax increment funds as operating funds. Community Development Director Desrochers indicated that while the comments by the Citizens Action Network may be valid, staff cannot thoughtfully review them and comment on them at this time due to severe time constraints. RESOLUTION OFFERED BY MEMBER SCOTT, the reading of the text was waived by unanimous consent, passed and adopted unanimously. Mr. McKenna urged the Agency to make a commitment to have staff as well as themselves carefully review the submitted concerns of the Citizens Action Network. MOTION TO REFER CITIZEN SUBMISSION TO STAFF MSUC (Cox/Moore) to refer submission by Mr. McKenna and Dr. Lichtey (regarding Otay Valley Road comments) to staff for a report back to the Council when they consider items of those areas that woul d be beyond the purview of the Redevelopment Plan. ITEM NO.9 - REPORT: REDEVELOPMENT AGENCY AUDIT AND ANNUAL REPORT TO THE STATE OF 1982-83 FISCAL YEAR An audit of the Redevelopment Agency's financial statements for fiscal year ending June 30, 1983, was performed by Dieh 1, Evans and Company. Section 33080 of the State Code requires that the Agency submit this annual report to the State which contains an examination of the prior year's achievements, the annual audit, legislative recommendations, and a work program. MOTION TO ACCEPT REPORT ADJOURNED REGULAR REDEVELOPMENT AGENCY MEETING - 8 - December 15, 1983 MSUC (Scott/Cox) to accept the annual audit and report to the State of Ca 1 iforn ia and direct it be sent to the State Department of Hous ing and Community Development. ITEM NO. 11 - RESOLUTION NO. 466 - APPROPRIATI NG FUNDS FOR PAYMENT OF PARTICIPATION FEES FOR SINGLE-FAMILY MORTGAGE BOND ISSUE Through the issuance of tax-exempt single-family mortgage bonds, the City is making available in 1983 below market rate mortgages to first time homebuyers in Chula Vista. The provis ion of these mortgages has been fac il itated by advancing the required participation fee on $6 million of the bond issue on the expectation that developers would purchase the mortgage commitments and reimburse the City's expenditure from the Low-Income Housing Fund. A similar process must be undertaken if the City wishes to provide additional below market mortgages in 1984. The deadline for posting participation fees for 1984 is December 31, 1983. Member Scott noted that the City has provided much subsidized housing. He advised that in order to balance the City's housing program in the City of Chula Vista that this type of housing not be focused in one area. MOTION TO PROVIDE STATUS REPORT ON HOUSING DEVELOPMENTS MSUC (Moore/Malcolm) that when assistance to housing projects is proposed by the Redevelopment Agency, the report to the Agency should include a status report on housing of that type that either exists in the City or is somewhere in the approval process. Member Scott, emphasizing the need for a balanced housing program in the City of Chula Vista, suggested that staff contact San Diego Association of Governments and report back to the Agency comparing other cities' programs to ours. MEMBERS' COMMENTS a. Member Malcolm expressed concern that Redevelopment projects should be prioritized; and if extra help is required by staff, staff should approach the Agency with this type of recommendation. b. Member Malcolm discussed the status of the Chula Vista Center on "F" Street. In a recent conversation with the executor of the estate, Mr. Caplan, it was learned that a joint venture partner has been brought in to discuss rebuilding procedures. Mr. Malcolm expressed concern that since a commitment has been made towards senior housing in the area, a commitment to provide shopping facilities should also be made. MOTION TO HAVE STAFF CONTACT MR. CAPLAN MS (Malcolm/McCandliss) to have staff contact Mr. Caplan to find out plans to provide shopping in the center and investigate possibility of subsidizing that particular center to help assure that shopping will be provided and report back to the Agency on both directions. - - ---------- --- n__.__.-- ADJOURNED REGULAR REDEVELOPMENT AGENCY MEETING - 9 - December 15, 1983 Member Scott stated that staff has tried to provide some type of a market in this center and he suggested that Mr. Caplan not be contacted regarding subsidized commercial development at the center. AMENDMENT TO MOTION MSUC (Malcolm/McCandliss) to have staff contact Mr. Caplan (executor of Chula Vista Center at Fourth Avenue and "F" Street) to find out his intentions and report back to the Agency. c. Member Moore, referring to Member Malcolm's earlier comments, expressed concern that the City staff is spread thin. He suggested that at their retreat at the Lawrence Welk Village in January the Council discuss possible solutions to this problem. MOTION TO ADVERTISE OFFICIAL MEETING IN JANUARY MSUC (McCandliss/Moore) to advertise an official meeting of the Redevelopment Agency/ City Counc il to discuss redeve 1 opment and citywide priorities on January 20 and 21,1984, at Lawrence Welk Village. d. Member Moore discussed the fire hydrants in front of the United Artists Theater. Redevelopment Coordinator Zegler indicated that the items described by Member Moore are actually standpipes (fire safety requirements) required by the Fire Marshal to monitor the water. Chairman Cox stated that the Engineering Department and Fire Department should become famil iar with the des i gn review designated for the redevelopment areas. MOTION TO HAVE STAFF REVIEW PROBLEM OF PIPES MSUC (Moore/Cox) to have staff review "red pipes" located in front of the United Artists Theater. e. Member McCandliss concurred with Member Moore's concerns regarding staff assignments. She suggested that perhaps during budget time Counc il review expanding staff, or cut down on amount of work targeted for the department. ADJOURNMENT TO CLOSED SESSION AT 6:45 P.M. The Recording Secretary was excused and the Executive Secretary reported that Closed Session ended at 7:20 p.m. The meeting was adjourned to the joint public hearing on Tuesday, December 20,1983, at 7:00 p.m. 4ó;;b Executive Secretary WPC 0929H ----------