Loading...
HomeMy WebLinkAboutrda min 1987/03/05 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA March 5, 1987 4:00 p.m. Council Chambers Public Services Building ROLL CALL MEMBERS PRESENT: Chairman Cox; Members Nader, Moore, McCandliss Member Malcolm arrived at 4:10 p.m. MEMBERS ABSENT: STAFF PRESENT: None Executive Director Goss, Community Development Director Desrochers, Assistant City Attorney Moore, Redevelopment Coordinator Kassman At this point the Redevelopment Agency convened in joint session with the City Council. Mayor Cox noted all members of the City Council were present with the exception of Councilman Malcolm who was expected to arrive shortly. 1. (a) PUBLIC HEARING: PCS-87-4 - CONSIDERATION OF TENTATIVE SUBDIVISION MAP FOR CHULA VISTA BAYFRONT, CHULA VISTA TRACT (CVT) 87-4 - Units 1 through 10 APPROVING TENTATIVE SUBDIVISION MAP FOR CHULA VISTA BAYFRONT, CHULA VISTA TRACT 87-4 (b) PUBLIC HEARING: CONSIDERATION OF COASTAL DEVELOPMENT PERMIT CVCP NO. 009 FOR SUBDIVISION OF 125 ACRES OF PROPERTY LOCATED WITHIN THE CHULA VISTA AREA BAYFRONT RESOLUTION RESOLUTI ON APPROVING COASTAL DEVELOPMENT PERMIT CVCP NO. 009 FOR TENTATIVE SUBDIVISION MAP CVT-87-4 The appl i cant, Chul a Vi sta Investment Company (CVIC), has fi 1 ed a tentati ve map identified as Chula Vista Bayfront - Units 1 through 10, CVT-87-4, and is proposing to subdivide approximately 125 acres located in the Chula Vista Midbayfront area. In addition to considering the subdivision of land, the Agency/Council will be considering a coastal development permit for the project. Executive Director Goss referred to a letter received from CVIC dated March 5, 1987. The letter stated, "CVIC hereby agrees to a continuance of the public hearings on its Tentative Subdivision Map for Chula Vista Bayfront, Chula Vista Tract (CVT) 87-4, Units 1-10 from March 5 to March 19, 1987." Redevelopment Agency Minutes -2- March 5, 1987 Mr. Goss noted staff has agreed to a seri es of meeti ngs with CVIC between today's date and March 19 beginning March 6 at 2:00 p.m. A meeting will again be held on Monday, March 9 and then again on Monday, r4arch 16, if necessary, Discussions will center on the conditions and findings of the proposal regarding the Tentative Subdivision Map. This being the time and place advertised, Mayor Cox declared the Public Hearings opened. MSUC (Nader/Moore) to continue the Public Hearings to March 19, 1987 at 4:00 p.m. (4-0; Councilman Malcolm was not present for the vote.) At this point the Redevelopment Agency reconvened. CONSENT CALENDAR Member McCandl i ss requested that item number 8 be pulled from the Consent Calendar. MEMBER MOORE OFFERED THE CONSENT CALENDAR ITEMS NUMBER 2, 3, 4, 5, 6, 7, 9 and 10, the readi ng of the text was wai ved by unanimous consent, passed and adopted unanimously, (4-0; Member Malcolm was not present for the vote.) 2. RESOLUTION 778 APPROVING THE ADDITION OF A CLOSED RECIRCULATING SEAWATER SYSTEM TO THE NATURE INTERPRETIVE CENTER PROJECT, APPROPRIATING FUNDS THEREFOR, AND GRANTING THE CONTRACTOR A FIVE WORKING DAY EXTENSION Numerous 1 i ve exhi bi ts are i ncl uded in the schemati c desi gn for the Nature Interpretive Center interior exhibits. The aquaria that house live exhibits may be expensive to set up and maintain unless a recirculating seawater system is utilized. It was the recommendation of staff to approve the addition of a closed, recirculating seawater system, appropriate $39,000 for construction, and grant the contractor a five working day extension. 3. REPORT: REQUEST BY RAMM CONTRACTING COMPANY FOR A TWO DAY EXTENSION DUE TO WEATHER Ramm Contracting requested a two-day extension to their contract for the construction of the Nature Interpretive Center due to bad weather conditions. On September 28 and December 2, heavy rains prevented work to continue on the job. Staff recommended that the request be granted. 4. RESOLUTION 779 APPROVING AN EXTENSION TO THE AGREEMENT WITH TESTING ENGINEERS - SAN DIEGO FOR A PROJECT MANAGER FOR THE NATURE INTERPRETIVE CENTER AND APPROPRIATING FUNDS THEREFOR In July, 1986, the Redevelopment Agency entered into an agreement with Testing Engineers - San Diego to provide "Clerk-of-the-Works" services for the Redevelopment Agency Minutes -3- March 5, 1987 construction of the Nature Interpretive Center. The Agreement was for a seven-month term which expired on February 28, 1987. Since the construction project has been extended through mid-April, the Clerk's services will be needed through that time and possibly longer depending on Ramm Contracting Company's abil ity to fi ni sh on schedu1 e. Staff recommended extendi ng the existing Agreement through the end of April, 1987 and appropriating $10,000 for said services. 5. RESOLUTI ON 780 APPROVING THE AGREEMENT WITH THE BAYFRONT CONSERVANCY TRUST FOR THE LEASE OF CERTAIN PROPERTY ON GUNPOWDER POINT The Local Coastal Program calls for the Chula Vista Bayfront Conservancy Trust to operate the Nature Interpretive Center with funds provided by the Agency in the FY 1986-87 budget. To formalize the utilization of the Agency's property by the Trust, and to establish the Trust's liability associated with that utilization, the lease of the center and the property included in the Phase I gradi ng project by the Trust was proposed. 6. RESOLUTION 781 APPROVING CONTRACT WITH G.R. BILL COMPANY TO PROVIDE ASSESSMENT OF GOODWILL FOR BUSINESSES TO BE RELOCATED FROM AGENCY-OWNED PROPERTY As a result of Agency purchases of the Star-News Building and property on Bay Boul evard, and the anti ci pated acqui si ti on of 496 Thi rd Avenue, busi nesses operating at those locations will have to be relocated. In order to estimate the value of potential loss of goodwill claims, the services of an expert apprai ser are needed. Staff recommended that the Agency approve the contract with the G.R. Bill Company to provide assessment of goodwill for Agency tenants to be relocated. 7. RESOLUTI ON 782 APPROPRIATING FUNDS FOR PAYMENT OF SUBLEASE PROPERTY AT 435 THIRD AVENUE ON On February 5, 1987, the Agency closed escrow on the Windmill Farms property on Third Avenue. As part of the sale transaction with Safeway Stores, the Agency entered into a sublease with Safeway for a parcel which constitutes part of the Windmill Farms parking lot. Safeway has a long term lease on the parcel from the property owner. Staff recommended appropriating funds for the sublease payments to Safeway. 8. RESOLUTI ON APPROVING AN INCREASE IN THE FAIR MARKET VALUE OF LAND FOR THE PURPOSE OF ESTABLISHING THE IN-LIEU PARKING FEE AND REQUESTING THE CITY COUNCIL TO CONSIDER AND APPROVE THE SAME This item was pulled from the Consent Calendar. Redevelopment Agency Minutes 9. (a) RESOLUTION 783 (b) RESOLUTION 784 ( c) RESOLUTION 785 -4- March 5, 1987 APPROVING PARTICIPATION AGREEMENTS WITH VARIOUS PROPERTY OWNERS FOR CONSTRUCTION OF ALLEY IMPROVEMENTS EAST AND WEST OF THIRD AVENUE BETWEEN DAVIDSON STREET AND E STREET APPROVING LIEN AGREEMENTS WITH VARIOUS PROPERTY OWNERS FOR CONSTRUCTI ON OF ALLEY IMPROVEMENTS EAST AND WEST OF THIRD AVENUE BETWEEN DAVIDSON STREET AND E STREET ACCEPTING BIDS AND AWARDING CONTRACT FOR "CONSTRUCTION OF TOWN CENTER ALLEY IMPROVEMENTS EAST AND WEST OF THI RD AVENUE BETWEEN DAVI DSON STREET AND E STREET IN THE CITY OF CHULA VISTA, CALIFORNIA" The Town Centre alleys east and west of Third Avenue between Davidson Street and "E" Street serves the commercial property along Third Avenue and the commercially zoned property on Church Avenue and Landis Avenue. The two all eys from "F" Street to Davi dson Street were constructed on the basi s of the property owners sharing one-half of the construction costs and the Redevelopment Agency sharing one-half of the construction costs plus all engineering, inspection, surveying, etc, The alleys between Davidson Street and E Street are to be constructed in a similar manner. The project includes installation of PCC alley paving, PCC alley approaches, sidewalk ramps, asphalt concrete paving, excavation and grading, and preservation of property. 10. RESOLUTION 786 APPROVING A CONTRACT WITH f4URRAY ALLISON ASSOCIATES TO APPRAISE THE BOYS' CLUB SITE AND The 1.45 acre Boys' Club site at the northeast corner of Fifth Avenue and I Street is proposed to become part of the renovati on of the Chul a Vi sta Shopping Center, as proposed by the Homart Development Company. The site is owned by the City and is expected to be included in negotiations between the Agency and Homart for the proposed development project. A professional appraisal of the property is needed to assist the Agency in those negotiations. END OF CONSENT CALENDAR 11. ORAL COMMUNICATIONS Michael Cowett of Jennings, Engstrand & Henrikson, Inc., 2255 Camino del Rio South, San Diego, representing Centre City Commercial, addressed the Agency. He referred to a Unanimous Consent item before the Agency which was not on the agenda, The item was a resol uti on authori zi ng the Chai rman to execute an agreement wi th Centre Ci ty Associ ates rel ati ve to payment for the Town Centre Parking Structure. Mr. Cowett informed the Agency that the documents were not prepared in time for the agenda. He asked to have thi s item consi dered at this meeting. Redevelopment Agency Minutes -5- March 5, 1987 In response to the question of Chairman Cox, Assistant City Attorney t4oore stated to comply with the requirements of the Brown Act, the person affected must present facts to the Agency that the need addressed in the Unanimous Consent item arose after the agenda was sent out. If the Agency finds that this was the case, then the Agency can go ahead and hear the Unanimous Consent item. Member McCand1iss asked if the need arose after the agenda was sent out, Mr. Cowett responded that the documents were generated between Fri day and ~\onday as a result of pressures from thi rd parties whi ch nei ther the Redevelopment Agency nor Centre City Commercial had any control over. f4r. Cowett stated this matter is very time sensitive. Community Development Director Desrochers stated it was not known until Monday what the appropriate action would be for the Agency to consider. Chairman Cox asked counsel what type of motion would be in order. Ms. Moore responded a motion based on the findings that were presented, the need arose after the agenda was sent out and that the Agency agrees to hear this item today. Member McCandliss asked what is time sensitive with regard to this matter. ~lr. Cowett responded it has to do wi th the pressures from the ex i sti ng and prospective lenders. The prospective lender is looking for a complete readjustment in the manner in whi ch the parking structure fi nanci ng and operation is handled from a financial point of view. An interim measure of a waiver of fees is being proposed while the complete adjustments to the CC&R's are being worked out. Centre City Commercial has been working for some time with the Agency in an attempt to readjust the way the parki ng structure is pai d for and operated. The prospecti ve 1 ender wanted immedi ate attenti on given to this matter and that is the urgency. Member McCandl i ss asked why thi smatter coul d not be noti ced and put on the agenda following next Tuesday night's City Council meeting. Mr. Cowett stated he has been told by the lender that it is time sensitive and they are waiting for a response to see how the Agency reacts. Mr. Desrochers explained the prospective lender is looking for a more viable income stream from parcel 4. Right now there are many vacancies and the $21,000 is an added burden. The center has been open for about 3 years and has never had a permanent loan. Mr. Desrochers stated the situation is such that the center is one step away from foreclosure and the matter needs to be resolved as soon as possible. MSUC (l~alco1m/McCand1iss) to make the findings necessary to consider this item at tonight's meeting. PULLED ITEMS 8. RESOLUTI ON APPROVING AN INCREASE IN THE FAIR MARKET VALUE OF LAND FOR THE PURPOSE OF ESTABLISHING THE IN-LIEU PARKING FEE AND REQUESTING THE CITY COUNCIL TO CONSIDER AND APPROVE THE SAME At their December 4, 1986 meeting, the Agency requested that the in-lieu parking fee formula and the in-lieu fee policy be re-evaluated. Redevelopment Agency Minutes -6- f4arch 5, 1987 Member McCand1 i ss noted that when the development standards for Thi rd Avenue were being set, one of the elements was to maximize lot coverage. To some extent, greater lot coverage was all owed on Thi rd Avenue than in other areas of the City. In exchange for greater lot coverage, other accommodations for parking have been made with the in-lieu fee. The burden of finding other parking is now put upon the City. Member McCand1iss stated it may be time to review the policy of allowing maximum lot coverage and perhaps require more on-site parking if possible. Member Malcolm asked staff for the addresses of some of the properties recently acquired, the price paid and the size of the parcels. Redevelopment Coordi nator Kassman stated 2 vacant parcel s on Churc h Avenue were purchased for $121,000 and $125,000; each parcel was 6,750 square feet. Two parcels were also purchased on Church Avenue which contained a single-family house on each parcel, Those parcels were $125,000 and $130,000; each parcel was 6,750 square feet. In response to Member Mal colm' s question, Mr. Desrochers noted the proposed fee also includes the cost for demolition and relocation. Member Malcolm stated the issue needs to be looked at in total. He would like to have a review of the policy. He does not feel comfortable increasing the fee at this point. MSUC (Moore/Malcolm) to refer this item back to staff; request input to show full cost to the Agency of the parking district, as well as a review of the policy. In response to Member McCand1iss' question, Mr. Desrochers stated it would take approximately 6 weeks for this item to come back to the Agency. UNANIMOUS CONSENT ITEM RESOLUTI ON 787 AUTHORIZING THE CHAIRMAN TO EXECUTE AN AGREEMENT WITH CENTRE CITY ASSOCIATES, LTD, COMMERCIAL RELATIVE TO PAYMENT FOR THE TOWN CENTRE PARKING STRUCTURE The City-owned parking structure in the Town Centre Focus Area is subject to lease payments from the adjacent property owners. Parcel 4, which is on the corner of Third and F Streets and consists of mostly small shops and the American Health Spa, is assessed $21,560 per year for their share of the parking structure. The owner, Centre City Associates, Ltd., Mr. Richard Zogob, General Partner, has asked that this parcel be relieved from its current payments so that it may obtain financing, remodel and embark on an aggressive leasing program. Mr. Desrochers stated the parking structure is paid for by the tax increments from the redevelopment project. The on-going amortization of the parking structure is the responsibility of the Redevelopment Agency. Payments are received from all parcels. Currently, that figure is approximately $100,000 per year, Redevelopment Agency Minutes -7- March 5, 1987 Mr. Cowett stated that every lender and consultant who has looked at the project has stated that the tenants who are comi ng to downtown Chul a Vi sta cannot afford to pay anywhere close to the rent that is requi red in order to make up the debt service on the center plus the parking. In response to Member Malcolm's questions, Mr. Cowett noted the existing loan on Parcel 4 is approximately $5 million. The existing interest rate on the loan is 11-1/2; the new rate will be 9-1/2 - 9-3/4; both are variable loans. Mr, Cowett further stated there is some securi ty on other parcel s. The loan was made on Parcel 4, In an attempt to get forbearance, some changes were made. Parcel 2, Seafood Broiler, and Parcel 6, Fuddruckers, were used as security. The new lender is not requiring that security. Assuming that the parking structure payment is waived, a loan secured by a Deed of Trust on Parcel 4 can be obtained that will be less than $5 million. It is then proposed to go to the 1 ender, mai ntai n the securi ty that the current 1 ender has on the other two parcels, and work out additional financing to completely payoff the original lender. Member McCand1 i ss suggested deferri ng the payment on the parki ng structure instead of waiving the fee, Richard Zogob, Centre City Associates, Ltd., 315 Fourth Avenue, Chu1a Vista, addressed the Agency. He stated the prospective lender is concerned about tenants in the shoppi ng center now, concerned about getti ng new tenants and concerned about the terms of the parking structure payments. When looking at comparable rentals in the area, the tenants in this shopping center pay considerably more. Member Malcolm suggested giving a letter to Centre City Associates stating the Redevelopment Agency is wi 11 i ng to consi der wai ver of the fee pendi ng the receipt of all the documents and review of the documents. Chairman Cox stated if the Agency took the approach that staff is recommending or even Ms. McCandliss' suggestion of deferral, this is only for 6 months and is predicated on continuing discussions and a more permanent resolution. It does not commit the Agency to any type of specific action, Is that going to be enough to allow Centre City Associates to get permanent financing, or is the loan going to be contingent upon the ultimate resolution? Mr. Zogob responded that he is asking for a statement at thi s time of how the Agency feels about the downtown and the investment made. He further stated it is desirable to have the loan funded prior to a total resolution. MS (McCand1iss/Cox) that the resolution be amended to read "defer" instead of "waives". Member Nader pointed out that on the Agreement, Exhibit B, in the first WHEREAS cl ause, words appeared to have been 1 eft out. Mr. Desrochers noted the fi rst cl ause shou1 dread: "WHEREAS, there exi sts. , . . " Member McCand1 i ss further stated the agreement needs to be changed to read "defer" instead of "waives" as wel1. Redevelopment Agency Minutes -8- March 5, 1987 The motion to amend the resolution passed unanimously. In response to Member Malcolm's question, Member McCandliss noted the i ntenti on in deferri ng the payments for 6 months is that the costs woul d accrue. When the negotiations take place, it will be determined how the payments should be handled. ~lember Malcolm stated he would rather have the Agency write a letter stating the Redevelopment Agency is concerned about the vitality of the center and is willing to cooperate. Member McCandliss stated that if deferring the payment is acceptable, she feels it sets the direction and that the Agency and Centre Ci ty Associ ates are goi ng to negoti ate. She stated she coul d not support a letter now saying the Agency is supportive of removing the fee. t~r. Cowett stated that the Agency has voted on a deferral, however, more importantly, the Agency has acknowl edged that the Agency and Ci ty Centre Associates are going to negotiate to do a restructuring of the CC&R's. MEMBER McCANDLISS OFFERED THE RESOLUTION AS AMENDED, the reading of the text was waived by unanimous consent. Member Malcolm noted that the lender is wanting to make a loan commitment with Centre City Associates subject to waiver of the fees for the parking structure. The deferral does not take care of this need. He stated he would rather have the Agency write a 1 etter with the Mayor's si gnature stati ng the Redevelopment Agency's desires. Chairman Cox suggested taking action because it will give some intermediate relief to this particular project. He stated he thought Mr. Malcolm's suggestion of writing a letter is good because the letter may have greater validity with the potential lender. The resolution passed and was adopted as amended. no. ) (4-1; Member Malcolm voting Member Moore stated he agrees with Mr, Malcolm that a letter versus a resolution may have more impact in the business world. Mr. Moore had no objection to sending a letter. In response to Mr. Moore's question, Mr. Desrochers stated discussions regardi ng potenti al revi si on of the CC&R' s have begun. One of the fi rst actions was to place 3-hour parking restrictions on the ground floor of the parking structure. MSUC (Cox/McCandl i ss) to ask staff to prepare a 1 etter for the Agency to review prior to its release that could express the interest of the Agency in working with the project developer to make this project a success and the fact the Agency is reviewing the existing agreement. The intent would be to allow this letter to be used with a potential lender. Redevelopment Agency Minutes -9- March 5, 1987 12. DIRECTOR'S REPORT: None. 13. CHAIRMAN'S REPORT: a. Additional Demolition Work for Gunpowder Point Chairman Cox noted that at the Bayfront Conservancy Trust meeting of February 24, there were di scussi ons regardi ng focusi ng the grand openi ng of the Nature Center on the Fourth of July. In anticipation of the grand opening, he noted there are a number of structures on Gunpowder Point that from an aesthetic as well as safety aspect should be addressed, Specifically, the wooden structures that are immediately adjacent to the Nature Interpretive Center site. Stephen Neudecker, Executive Director of the Bayfront Conservancy Trust, addressed the Agency. He stated that when enteri ng into the Nature Center there are 3 groups of structures in danger of fall i ng down and whi ch are a noticeable eyesore. Dr, Neudecker noted the need to remove the wooden structures or at least demolish them to ground level so that when the public is entering into the Nature Center these structures will not be evident. Member McCandl i ss stated she wou1 d 1 ike to see some issues examined before approving demolition of the structures. For example, from a safety standpoint could the area be fenced. She noted it may be better to keep things in its current state until existing issues are resolved. MS (Cox/McCand1iss) to direct staff to come back with a public hearing on a Coastal Development Permit to allow additional demolition work on Gunpowder Poi nt. The motion passed. (4-1; Member Malcolm voting no.) b. Gunpowder Point Park Plan Chairman Cox stated with the Nature Interpretive Center nearing completion, it would be desirable to have the plan ready to go for the development of the park on Gunpowder Point. MS (Cox/Nader) to ask staff to bring back a concept plan for the Gunpowder Point park which is contemplated next to the Nature Interpretive Center. In response to Member Moore's question, Mr. Desrochers stated funds exist in the Redevelopment Agency budget for planning of such a facility. Member Moore noted he would prefer the planning for the park take place in-house and that an outside consultant not be retained. Member McCandl i ss stated she woul d 1 i ke to make sure that Dr, Neudecker will be involved in the planning of the park. She noted there may be some ways to tie the park into the Nature Center so that it becomes the kind of comprehensive environmental center that is desired. Redevelopment Agency Minutes -10- March 5, 1987 The motion passed. (4-1; Member Moore voting no.) c. Ratification of A.Y. Casillas to Otay Valley Road Project Area Committee MSUC (Cox/Moore) to ratify A.Y. Casillas to the Otay Valley Road Project Area Committee. 14. MEMBERS' COMMENTS: None Adjournment at 5:40 p.m. to Closed Session to discuss Sierra Club vs. Marsh; Sierra Club vs. Coastal Commission et. al. and items of potential litigation. Adjournment from Closed Session at 6:30 pm. to the regular meeting of March 19, 1987, at 4:00 p.m. ¿~;¡J~ Community Development Director WPC 2773H