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HomeMy WebLinkAboutrda min 1987/09/03 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY of THE CITY OF CHULA VISTA, CALIFORNIA Thursday, September 3,1987 7:05 p.m. Council Chambers Public Services Building ROLL CALL MEMBERS PRESENT: Chairman Cox; Members Nader, Moore and Malcolm MEMBERS ABSENT: STAFF PRESENT: Member McCandliss Executive Oirector Goss, Community Development Oi rector Desrochers, Agency Attorney Harron, Senior Community Development Specialist Buchan 1. APPROVAL OF MINUTES - 8/25/87 MS (Cox/Moore) to approve the minutes of 8/25/87 as submitted. 3-0 with Member Malcolm abstaining.) {The vote was 2. RESOLUTION 857 ASSIGNING A DISPOSITIoN AND DEVELOPMENT AGREEMENT BETWEEN BAY BOULEVARD PARTNERSHIP AND THE REDEVELoPMENT AGENCY TO BAY BOULEVARD DEVELOPMENT On August 6,1987, a status report concerning the Bay Boulevard Partnership Disposition and Development Agreement (DDA) for development of the Soup Exchange Restaurant was submi tted to Agency members. Staff was di rected to work with Mr. Joel Broida to complete the necessary documents for the assignment of the DDA to Mr. Broida's newly formed corporation, Bay Boulevard Deve 1 opment. Respondi ng to Chai rman Cox, Seni or Community Development Speci al i st Buchan stated the architectural design has not changed. It is the same design that was previously approved. Because of the amount of time that has elapsed since approval of the desi gn, it is bei ng requested that the Pl anni ng Department staff review the plans. The Coastal Development Permit for this project that was issued by the Coastal Commission expired in March, therefore, this permit will be reviewed again. Member Malcolm noted Bay Boulevard Partnership defaulted on the DDA. He asked about the cost involved in buying back this property. Ms. Buchan responded the sale price was $355,000 in 1984. Community Development Director Desrochers added that because the property is undeveloped, the Agency woul d buy it back for the price it was sold at plus verified costs. Chairman Cox stated he is encouraged with the new partnership. He believes it would be in the best interest of the Redevelopment Agency and the City to have a quality restaurant at this location. RESoLUTION OFFERED BY CHAIRMAN COX, the readi ng of the text was wai ved by unanimous consent. REDEVELOPMENT AGENCY MINUTES -2- September 3, 1987 Member Malcolm commented that this property has been dealt with by the Agency for approximately fi ve years. He bel i eves acti on needs to be taken at thi s time to either put the property out to rebid or have Bay Boulevard Partnership post a bond or a letter of credit that will guarantee construction will start. Mr. Robert Nightingale, Bay Boulevard Development, addressed the Agency. He stated he bel i eves it is i nappropri ate to request that a bond or 1 etter of credit be required. Bay Boulevard Partnership has been doing everything they can to move this project forward as expeditiously as possible. Michael D. Liuzzi, Attorney with the firm of Dorazio, Barnhorst & Bonar representing Bay Boulevard Development, pointed out that he believes it is inappropriate to impose a bond requirement or letter of credit. Bay Boulevard Development should be treated as parties unrelated to the current owner, Bay Boulevard Partnership. Bay Boulevard Development has dealt with City staff over the 1 ast several months provi di ng all i nformati on requested. A substantial amount of funds in the form of legal fees and other costs have been expended by Mr. Broida and Mr. Nightingale. The idea of posting a bond or letter of credit has not been presented to them prior to this meeting. Member Nader pointed out Member Malcolm's suggestion is not intended to be punitive, but in the spirit of protecting the interests of the City/Agency. This item was trailed allowing Bay Boulevard Development time to discuss Member Malcolm's suggestion. 3. RESOLUTION 854 ACCEPTING CONTRACT WORK, IMPROVEMENT AND LANDSCAPING OF LANDIS AVENUE PARKING LOT BETWEEN "F" STREET AND DAVIDSON STREET IN THE CITY of CHULA VISTA On March 19, 1987, the Redevelopment Agency awarded a contract for the improvement and 1 andscapi ng of the Landi s Avenue parki ng lot (between "F" Street and Davidson Street) to Heffler Company, Inc. It was recommended that the work be accepted and the Agency di rect that the contractor be charged liquidated damages in the amount of $665.35. RESOLUTIoN OFFERED BY CHAIRMAN COX, the readi ng of the text was wai ved by unanimous consent, passed and adopted unanimously. !~SUC (Moore/Cox) direct staff to tabulate all costs to the City/Agency as it pertains to the Landis Avenue parking lot (between "F" Street and Davidson Street). This would be a short report including the cost of each parking space. 4. RESoLUTION 855 GRANTING A LAND USE PERMIT FOR 231 CHURCH AVENUE Mr. and Mrs. Ralph Szaras, owners of 231 Church Avenue, requested a Land Use Permit to continue to house mentally disabled adults. The Szaras' are attempting to refinance the property, but need Agency approval as a condition of obtaining the loan. It was recommended that the Agency authorize the Land Use Permit subject to conditions. RESOLUTIOtJ OFFERED BY MEMBER MALCOU~, the readi ng of the text was wai ved by unanimous consent, passed and adopted unanimously. REDEVELoPMENT AGENCY MINUTES -3- September 3,1987 5. RESOLUTION 856 GRANTING A LAND USE PERMIT FOR 276 LANDIS AVENUE Mr. Donald Carse and Mr. Charles Bates, owners of 276 Landis Avenue, requested that they be permitted to reopen an antique business that was closed in 1977. The underlying zoning for 276 Landis Avenue is commercial/office and does not permit the sale of bona fide antiques unless the Agency grants the Land Use Permi t. Member Mal col m commented he woul d 1 ike to be sure used furniture is not sold by the business. He suggested that a definition of "antique" be included in the Land Use Permit. The owners of the property, Mr. Bates and Mr. Carse, addressed the Agency. It was pointed out that there is not a universally accepted definition of "antique." Mr. Bates stated he believes requiring a definition in the Land Use Permit is unnecessary and could lead to complications and extra work. RESOLUTION oFFERED BY MEMBER MALCoLM with the understandi ng thi s is a bona fide antique dealership, the reading of the text was waived by unanimous consent. Member Nader suggested di recti ng staff to i nvesti gate whether there is a recognized trade association definition of "antique." The resolution was adopted unanimously. MSUC (Nader/Cox) direct staff to investigate the existence of a definition of "anti que" by a recogni zed trade associ ati on and the feasi bil ity of adopti ng that definition. 2. Discussion continued on Item No.2. Mr. Luizzi stated Bay Boulevard Development woul d be wi 11 i ng to provi de a 1 etter of credit and asked for clarification of the terms. An amount of $50,000 was discussed for the letter of credit. If ground has not broken by January 15, 1988, a draw of $1,000 for each day delayed will be paid to the Agency. Rain delays, "Acts of God" delays, City not issuing permit(s), or if the City/Agency creates delays will all be taken into consideration. Mr. Li uzzi commented on the si gn issue for thi s project. The tenant woul d 1 i ke to have some type of freeway si gn due to the 1 ocati on of the property. He noted Bay Boulevard Development was under the opinion that authorization for a freeway sign would be granted subject to Coastal Commission review. Mr. Nightingale stated this would be a temporary (3 year) sign as previously discussed with the Agency by Paul Thoryk. He noted they would be applying for the sign through the appropriate planning processes. Member Malcolm suggested Bay Boulevard Development look into a way of combining the pole sign with the Days Inn and/or Anthony's Restaurant pole sign. REDEVELOPMENT AGENCY MINUTES -4- September 3, 1937 Mr. Joel Broida, Bay Boulevard Development, noted his concern regarding the figure of $l,OOO/day used for the Letter of Credit. He feels the new corporation has amply demonstrated their good faith effort to move the project along expeditiously. He further stated that the sign is a very important issue to the Soup Exchange. If the decision was to not allow the sign, Soup Exchange would not want to open at this location. He stated there is a need to have a decision on the sign issue as soon as possible. Responding to Member Malcolm's questions, Mr. Desrochers stated the City Counci 1 can issue a permi t for the si gn under the vari ance procedure of the LCP. ~lr. J. R. Norman, 908 Mission Avenue, Chula Vista, addressed the Agency. He had questions regarding the parking spaces for this project, particularly the 22 spaces in the park across the street. Who will take care of the maintenance and liability insurance for the parking at the park? He questioned why the rent for these spaces is only $1.00 per year. Member Moore responded that the entire frontage along both sides of the street from "E" to "F" is paid by the businesses through an assessment district. Agency Attorney Harron stated the City carries liability insurance for public property. Mr. Harron pointed out the plan is to put obstructions in the parking lot so that people will be forced to walk to the corner in order to cross the street. Ms. Buchan pointed out there is a requirement in the lease for the parki ng spaces that the developer carry at 1 east $1,000,000 worth of liability insurance for those parking spaces. Member Nader suggested thi s item be referred to the Ri sk Manager. concern about the legal liability. MSUC (Malcolm/Nader) to amend the resolution to require a $50,000 Bond or Letter of Credit guaranteeing start of construction (digging of the footings) no later than June 15, 1988. A fee of $1,000 a day be paid to the City for any del ay. If thi s permit is returned or voi ded by the appl i cant wi thi n a 60 day period, the deposit will be returned and a re-taking of the property will begin. He has a Member Nader clarified that any delay that is not the responsibility of the developer (i.e, Act of God, City delay) would not penalize the developer. Member Malcolm suggested advertising the public hearings for both the Coastal Development Permit and the sign as soon as possible. RESOLUTION OFFEREO AS AMENDED BY MEMBER MALCOLM, the reading of the text was waived by unanimous consent passed and adopted unanimously. MSUC (Nader/Malcolm) direct staff (the City Attorney working with the Risk Manager) to assess potential City liability at the planned pedestrian crossing for this site and evaluate the cost effectiveness of any safety measures that might be taken to reduce the liability. REDEVELOPMENT AGENCY MINUTES -5- September 3, 1987 6. a) RESOLUTION APPROVING A CONTRACT WITH COMMUNITY SYSTEMS ASSOCIATES, INC. FOR THE PREPARATION AN ) PROCESSING OF DOCUMENTS FoR AN AMENDMENT TO THE ToWN CENTRE II REDEVELOPMENT PLAN EXPANDING THE PROJECT BOUNDARIES APPROVING A COOPERATION AGREEMENT WITH THE SWEETWATER UNION HIGH SCHOOL DISTRICT FOR THE SHARING OF COSTS FOR THE PREPARATIoN OF DOCUMENTS FOR AN AMENDMENT TO THE TOWN CENTRE II REDEVELOPME~T PLAN b) RESOLUTION The Agency recently completed an amendment to the Town Centre II Redevelopment Plan allowing for the collection of tax increments from the project area. This amendment was supported by the Sweetwater Union High School District with the understanding that a subsequent amendment would seek to expand the project boundaries to include school district properties which may be redeveloped in the near future. The School District has agreed to jointly fund the contract wi th Communi ty Systems Associ ates for the development of plans and documents for this plan amendment. Mr. Desrochers reported that he and Hr. Goss met with Dr. Trujillo of the School District. The School District wanted to affirm that they want to work in good faith with the Agency/City on the series of projects currently bei ng discussed. They understand that the Agency/City would like to take each project on its own merit, without tying one into the other. MSUC (Malcolm/Nader) continue this item to Tuesday, following the City Council meeting. September 8, 1987, 7. ORAL COMMUNICATIONS: None. 8. DIRECTOR'S REPORT: None. 9. CHAIRMAN'S REPORT: None. 10. MEMBER'S COMMENTS: Member Malcolm stated he would like to receive an update on the amount of money spent on the Bayfront Plan, including properties purchased, Nature Interpretive Center expenses, consultants, etc. ADJOURNMENT at 8:20 p.m. to the regular meeting of September 8, 1987, toll""'", th, City"""" ""'"' "h,d",d "~L, ~chers ' Community Development Director WPC 3154H