Loading...
HomeMy WebLinkAboutrda min 1988/02/16 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Tuesday, February 16, 1988 6:00 D.m council Chambers Public Services Buildinq ROLL CALL MEMBERS PRESENT: Chairman Cox; Members Nader, Malcolm and Moore MEMBERS ABSENT: Member McCandliss STAFF PRESENT: Executive Director Goss, Community Development Director Desrochers, Agency Attorney Harron, Senior Community Development Specialist Buchan 1. APPROVAL OF MINUTES - 2/2/88 MSUC (Moore/Malcolm) submitted. (The vote for the vote.) approve the minutes of 2/2/88 as was 3-0; Member Nader was not present 2. WRITTEN COMMUNICATION a. Letter dated 2/2/88 from William E. claycomb, 521 Orange Avenue, #118, Chula vista regarding conversion of Orange Tree Mobilehome Park and Agency purchase of unsold spaces Chairman Cox suggested this item be trailed and discussed along with Item No. 5 on the agenda. CONSENT CALENDAR (Items 3 through 7) Items 3, 4, 5, and 7 were pulled from the consent calendar. CONSENT CALENDAR ITEM NO. 6 WAS OFFERED BY CHAIRMAN COX, the reading of the text was waived by unanimous consent, passed and approved unanimously. (The vote was 3-0; Member Nader was not present for the vote.) 6. RESOLUTION 906 APPROVING AN ASSIGNMENT OF RIGHTS AND RELEASE FROM LIABILITY AGREEMENT AND AUTHORIZING THE CHAIRMAN TO EXECUTE SAID AGREEMENT The Darling-Delaware Company formerly owned the Omar Rendering site comprising 40 acres adjacent to Otay Valley Road just east of Brandywine Avenue in the otay Valley Road Redevelopment Project Area. This site was sold to a development group, Rio Otay Ventures, for the purpose of Redevelopment Agency Minutes -2- February 16, 1988 subdivision and development into an industrial park. Although the City had approved sUbdivision plans for this parcel, questions concerning the environmental safety of the site from the state Department of Health Services, Hazardous Waste Division, raised uncertainty as to whether development of the site could proceed. Subsequently, the owners of the site filed a claim against the city and the previous owners to recover their development costs and damages. Darling- Delaware repurchased the site with the proviso that they be allowed to assume all of the obligations under the subdivision agreement with the City, and former owners agree not to bring any claim against the city which would only deter the resolution of environmental questions and expeditious development of the site. END OF CONSENT CALENDAR 8. ORAL COMMUNICATIONS None. PULLED ITEMS 3. RESOLUTION 907 APPROPRIATING $15,000 FOR 368 BAY BOULEVARD TENANT RELOCATION ASSISTANCE As a result of the Agency acquisition and planned redevelopment of property located at 368 Bay Boulevard, the current occupant of the site, San Diego Pump and Compressor Supply company, will be displaced. Under state Redevelopment Law the tenant is entitled to assistance from the Agency for expenses associated with the move. The tenant has signed a lease to occupy a new location beginning in March and is expected to file claims for assistance soon thereafter. Agency relocation assistance payments are to be reimbursed by the former owner of the site as part of the purchase agreement for the property. RESOLUTION OFFERED BY MEMBER MOORE, the reading of the text was waived by unanimous consent, passed and approved unanimously. 4. RESOLUTION 908 SELECTING THE BOUNDARIES OF AN AMENDMENT AREA, APPROVING A PRELIMINARY PLAN FOR THE REDEVELOPMENT OF THE AMENDMENT AREA AND AUTHORIZING TRANSMITTAL TO CERTAIN PUBLIC OFFICERS AND ENTITIES The Redevelopment Agency is processing an Town Centre II Redevelopment Plan to territory to the existing Project Area. process, the Community Redevelopment Law Agency adopt a resolution selecting the amendment to the add addi tional As part of this requires that the boundaries of the ,.------ Redevelopment Agency Minutes -3- February 16, 1988 Amendment Area and approve the Preliminary plan for said area. RESOLUTION OFFERED BY MEMBER MOORE, the reading of the text was waived by unanimous consent. Member Nader asked for an update on the status of the agreement between the Agency and the County pertaining to this matter. community Development Director Desrochers reported that the County has been apprised of the new parcels proposed to be included. The agreement will be brought forth to the county Board of supervisors in approximately thirty days. Further responding to Member Nader, Mr. Desrochers stated the agreement excludes public acreage from the total acreage to which the Agency is limited. Member Nader asked if there is any time sensitivity to adopting the resolution at this time. Mr. Desrochers responded the goal is to have a redevelopment plan approved before the August date when taxes are set on properties, therefore, there is time sensitivity involved. Member Nader commented that if any amendments or other understandings are attached to the agreement at the time it is considered by the Board of supervisors, he would like the Agency to have the opportunity to state opinions on the amendments or understandings. The resolution was passed and approved unanimouslv. (The vote was 3-0; Member Malcolm abstained.) 5. RESOLUTION 909 APPROVING AGREEMENT AMENDING THE REDEVEL- OPMENT AGENCY LENDING AGREEMENT WITH ORANGE TREE RESIDENT NONPROFIT ORGANIZA- TION AND RESCINDING PARAGRAPH 5 OF AGENCY RESOLUTION 902, BOTH RELATING TO CONDI- TIONS ON SALE OF SPACES On January 21, 1988 the Agency directed staff to include in the agreement to purchase unsold spaces at orange Tree Mobilehome Park a clause which would void the Agency's purchase and relieve the Agency from all liability if the Resident Nonprofit organization (the existing Acquisition Association or its intended successor, the Homeowners' Association) adopts any rule prohibited by the State Department of Real Estate (DRE). Upon further analysis, this method to guarantee that the association abide by the Agency's condition for purchase was found to be unworkable. Staff recommended that the Agency approve the Agreement Amending the Lending Agreement to make it clear the Agency will not be found to follow any rules or regulations adopted by the Acquisition Association, or its intended successor, Redevelopment Agency Minutes -4- February 16, 1988 the Homeowner's Association, which are contrary to DRE regulations or which constitute illegal tying agreements. staff further recommended rescinding Paragraph 5 of Agency resolution 902, and directing staff to include in the escrow instructions for space purchase a provision that loans cannot be closed until escrow receives a letter from the Community Development Director verifying that the Acquisition Association/Homeowners' Association has not adopted any rule contrary to DRE regulations or constituting illegal tying agreements. RESOLUTION OFFERED BY MEMBER MALCOLM, text was waived by unanimous consent, unanimously. the reading of the passed and approved 2. WRITTEN COMMUNICATIONS a. Letter dated 2/2/88 from William E. Claycomb, 52l Orange Avenue, Space 118, Chula vista regarding conversion of orange Tree Mobilehome Park and Agency purchase of unsold spaces. MSUC (Malcolm/Cox) communication. to accept and file the written 7. RESOLUTION ACCEPTING TICOR TITLE INSURANCE COMPANY'S PROPOSAL TO PROVIDE TITLE AND ESCROW SERVICES TO THE REDEVELOPMENT AGENCY AND ENTERING INTO AN AGREEMENT THEREFOR On December lO, 1987, a Request for proposal to provide property title and escrow services to the City and Redevelopment Agency was published in a local newspaper and sent to several title companies. Ticor Title Insurance Company's proposal was the only response received. Member Malcolm pointed out that Ticor is offering to provide Preliminary Title Reports for a charge of several hundred dollars. It has been his experience when buying property and a preliminary title report is received, a bill is not received for a preliminary title report. A bill is received only for a title policy. Ticor is advocating that the Agency/City pay for the preliminary title report, receive a 25% credit on it, and then pay for a full title policy. This is unheard of in the industry. Member Malcolm further noted concern that only one response was received to the Request for Proposal. He feels that what the Agency/City is doing at the present time is appropriate. He does not see the benefit of the services proposed by Ticor. Executive Director Goss suggested that in light of the information brought forth by Member Malcolm, it may be appropriate to withdraw this item and handle title and escrow services on a case-by-case basis. ..---- Redevelopment Agency Minutes -5- February 16, 1988 Mr. Desrochers pointed out when a public entity appraises a piece of property, the tenant and the owner must accompany the appraiser before the final appraisal is made. A litigation guarantee is needed to insure that the title company and the appraiser are in contact with the legal owners. The litigation guarantee is needed at a very early time in the process of property acquisition. MSUC (Cox/Moore) refer this item back to staff for further evaluation. MSUC (Moore/Cox) direct staff to review all procedures in property purchases. 9. DIRECTOR'S REPORT a. Status of Chula vista Shopping Center (Homart) Executive Director Goss reported that despite several rain delays the footing and foundation construction is proceeding on schedule. The off-site improvement work began on Monday, February 8. Regarding issuing of permits, the structural plans are being reviewed at this time. The circulation and landscape plans are scheduled to be submitted this week and will go to the DRC on March 3. The design plans for the entrances are also scheduled to go to the DRC on March 3. The Tenant Improvement Manual has been completed in draft form. It has been reviewed by the Planning department and is expected to go to the DRC on February 18. 10. CHAIRMAN'S REPORT a. Designation of Redevelopment Project in Montgomery Area Chairman Cox stated that as a result of the Montgomery annexation there was a commitment made by the City Council to the county of San Diego that for a period of four years after annexation there would not be any redevelopment districts created in the Montgomery area. It may be appropriate at this time to begin the process for evaluating potential sites for redevelopment districts in this area due to the time involved. MSUC (Cox/Malcolm) direct staff to evaluate West Fairfield area and other areas appropriate in the Montgomery area for possible consideration as a redevelopment district and return with a report. ll. MEMBERS' COMMENTS Member McCandliss: Redevelopment Agency Minutes -6- February 16, 1988 a. "F" street Shopping Center - remodeling plans should provide for integration of public improvements along "F" street This item will be continued to the next Redevelopment Agency meeting. ADJOURNMENT at 6:30 p.m. to Closed session to discuss Sierra Club vs. Marsh; Sierra Club vs. Coastal commission, et. al.; and potential acquisition of property located in the Town Centre I Redevelopment proj ect Area: 332 and 336 Church Avenue (community congregational Church, owner), 338 Church Avenue (R.F. and Barbara Buffington, owners), and 342 Church Avenue (Daniel Soper, owner). The Closed Session was continued following the City Council meeting and adjourned at 10:30 p.m. to the regular meeting of March 3, 1988. ,~-rfIl~~l;r" Community Development Director (a:MIN3) ~