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HomeMy WebLinkAboutrda min 1988/04/21 (2) MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA Thursday, April 21, 1988 4:15 p.m. ROLL CALL Council Conference Room City Hall MEMBERS PRESENT: MEMBERS ABSENT: Chairman Cox; Members Nader, Malcolm and Moore Member McCandliss STAFF PRESENT: Community Development Director Desrochers, Assi stant Ci ty Manager Asmus, Assi stant Ci ty Attorney Rudolf, Assistant Community Development Director Gustafson, Environmental Review Coordintator Reid 1. APPROVAL OF MINUTES - 4/7/88 MSUC (Moore/Cox) approve the mi nutes of 417/88 as submi tted. (The vote was 3-0; Member Malcolm was not present for the vote.) 2. WRITTEN COMMUNICATION a. Letter from William E. Claycomb, 521 Orange Avenue, #118, Chula Vista dated 4/1/88 regarding Orange Tree Mobilehome Park Assistant Community Development Director Gustafson stated the points raised by Mr. Claycomb are being explored further. The marketing pol icy for Agency-owned spaces is bei ng revi ewed by the Mobil ehome Issues Committee and outside experts at this time. A written response will be forwarded to Mr. Claycomb as soon as the marketing policy has been reviewed. Mr. Claycomb referred to the information item prepared by the Community Development Director in response to his letter. He clarified that he suggests that rents for Agency-owned spaces be increased at the Consumer Price Index. Mr. Claycomb also read a disclaimer paragraph from the 1987 audit of the Acquisition Association of Orange Tree Mobilehome Park. Chairman Cox asked Mr. Claycomb to provide a copy of the document he read to the Agency. Member Moore commented there seems to be confusi on between the Acqui siti on Association and the Homeowners I Association for Orange Tree. Can the two groups exist simultaneously? Mr. Gustafson responded that a meeting is scheduled next week with the City Attorney to discuss this issue. Member Moore stated he should like the following questions addressed: At what time does Acquisition Association cease to exist and the Homeowners' Association take over? What triggers that? Can the two committees exist, and if so, what is the difference in authority? Member Moore would also like to have staff address the question of whether or not Continental Associates has any authority at this time. Redeve10pment Agency -2- Apri 1 21 1988 b. Letter from James N. Riley, Secretary, Board of Directors, Orange Tree Homeowners' Association dated 4/8/88 Chairman Cox noted receipt of this letter. CONSENT CALENDAR Agenda items, numbers 6, 7 and 8 were pulled from the Consent Calendar. CONSENT CALENDAR ITEMS 3, 4 AND 5 WERE OFFEREO BY MEMBER MALCOLM, the reading of the text was waived by unanimous consent, passed and approved unanimously. 3. RESOLUTION 917 ACCEPTING CONTRACT WORK, STREET IMPROVEMENTS ON THE EAST SIDE OF BAY BOULEVARD BETWEEN "J" STREET AND "L" STREET IN THE CITY OF CHULA VISTA AND ASSESSING LIQUIDATED DAMAGES On September 17, 1987, the Redevelopment Agency by Resolution No. 862, awarded a contract in the amount of $45,200 (including contingencies) for the installation of street improvements on the east side of Bay Boulevard between "J" Street and "L" Street to 0 & B Matthews Constructi on, Inc. The work is now compl eted. It was recommended that the Agency accept the contract work and assess liquidated damages of $7,100. 4. RESOLUTION 918 AMENDING AGREEMENT WITH NOWELL-THOMPSON, ASLA & ASSOCIATES, INC. FOR THE PREPARATION OF CONSTRUCTION DRAWINGS FOR PHASES I AND II OF THE MEMORIAL PARK MASTER PLAN The Agency approved an agreement with Nowell-Thompson, ASLA & Associates, Inc. on February 10, 1987, to update the Master Plan for Memorial Park and prepare constructi on drawi ngs for only the panhandl e porti on. The contract call s for delay in preparation of construction documents for the rest of the park until completion of the Master Plan. The Plan was approved by Council on February 9, 1988. The purpose of this amendment is to add additional scope of services requirements and commensurate compensation for services not required under the original agreement. 5. RESOLUTION 919 ACCEPTING CONTRACT WORK, CONSTRUCTION OF TOWN CENTRE ALLEY IMPROVEMENTS WEST OF THIRD AVENUE BETWEEN "G" STREET AND PARK WAY IN THE CITY OF CHULA VISTA On January 21, 1988, the Redevelopment Agency by Resolution No. 899 awarded a contract for construction of Town Centre alley improvements west of Third Avenue between "G" Street and Park Way to Sil ver Strand Contractors. The work has been compl eted. It was recommended that the Agency accept the contract work and appropriate $12,000 to cover Engineering inspection, surveying, etc. expenses incurred to construct the project. Redeve10pment Agency -3- April 21, 1988 END OF CONSENT CALENDAR 6. REPORT: REQUESTING MODIFICATION OF THE CC&RS AGREEMENT WITH CENTRE CITY ASSOCIATES, LIMITED - COMMERCIAL Mr. Richard Zogob recently received an offer to purchase Park Plaza at the Vill age, i ncl udi ng Parcel s 2, 4 and 6. The offer is conti ngent upon a reduction in parking structure rent payments for Parcel 4 by approximately $21,000 per year. Although this would be a direct reduction in revenue to the Ci ty, the purchasers propose to repay the Ci ty through a percentage of the rent overage collected. Mr. Zogob requested an indication from the Agency as to whether a reduction in parking fee payments can be considered to expedite the sale of the property. Member Malcolm stated he would like to discuss this item in Closed Session. He reported new developments arose on this date pertaining to this item. Mr. Zogob will be going to Bankruptcy Court on Monday, April 25 and the Agency needs to make a decision on which way to proceed. This item was trailed. ORAL COMMUNICATIONS: None. PULLED ITEMS 7. RESOLUTION 921 ADOPTING NEGATIVE DECLARATION IS-88-41, MAKING REQUISITE FINDINGS AND APPROVING A SPECIAL PERMIT TO THE SHELL OIL CO. FOR THE REMODELING OF A SERVICE STATION LOCATED WITHIN THE OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA The Shell Oil Company submitted plans for the remodeling of their service station located on the south side of Otay Valley Road approximately 150 feet east of Interstate 805. The pl ans propose the i ncl usi on of a car wash facility and a mini-food mart. A service station is a conditional use in a I-L-P zone and, therefore, requires a special permit. Member Nader asked if expansion of the gas station services (new pumps, etc.) is planned? Redevelopment Coordinator Kassman responded the project consists of the addi ti on of a mi ni -food mart and a car wash; no additi onal pumps or other expansion is planned. Member Nader further noted concern regarding emissions of air pollutants associated with the project. Will there be an increase in air pollutant emission as a result of the additions? Mr. Kassman responded there would not be an increase. Member Nader questi oned the traffi c impact analysi s. It was suggested that the Environmental Review Coordinator be asked to attend the meeting to respond to questions regarding the Negative Declaration. Redevelopment Agency -4- April 21, 1988 This item was trailed pending the arrival of the Environmental Review Coordinator. 8. RESOLUTION 920 APPROVING AGREEMENT AMENDING THE BETWEEN THE REDEVELOPMENT OPPORTUNITIES, INCORPORATED COOPERATIVE AGREEMENT AGENCY AND HOUSING On March 30, 1984, the Redevelopment Agency entered into a Cooperative Agreement with Housing Opportunities Incorporated (HOI) to provide $1.6 million to that nonprofit affordable housing developer to develop a 163-unit first-time home buyer condominium project at East Orange and Brandywine Avenues in exchange for: (1) 75% of those units being reserved for low and moderate income first-time home buyers; (2) the extension of Orange Avenue and Brandywine Avenue; and (3) the provision of drainage improvements to Poggi Creek. The developer asked for an amendment making certain ~hanges. It was recommended that the Agency (l) extend the project compl eti on date to September 30, 1988; (2) increase the administrative overhead limit from $4,000 per unit to $4,736 per unit; and, (3) require HOI to reimburse the Agency for costs attributable to another project. Member Malcolm noted concern that if this resolution is not approved and Home Federal forecloses on the project, the Agency will lose the money invested in the project. Assistant City Attorney Rudolf responded the Agency's money is secured by the property. Mr. Ri ck Abdall a of Home Federal Savi ngs and Loan, 625 Broadway, San Di ego addressed the Agency. Responding to Member Malcolm, he stated that in the event it was necessary for Home Federal to foreclose, it would be his recommendation to work with the City of Chula Vista and complete the project. There is a covenant that runs with the land, therefore, Home Federal would not be able to do anything with that land. Whoever ends up with the land would have to complete the project according to the original plans. From all appearances, the Agency will be receiving its money back. Mr. Klaus Mendenhall, Housing Opportunities, Inc., responded to Member Malcolm's questions. Member Malcolm pointed out one of his concerns with this project is that HOI will be making money on this project, and he would like that money to be reinvested in Chula Vista. Is HOI willing to offer the City of Chula Vista anything in return for approving this resolution? Mr. Mendenhall stated anything is negotiable, however, the cash flow at HOI is tight. It is budgeted that HOI will receive approximately $500,000 from this project. Mr. Malcolm suggested HOI give the City an additional 5% of their net profits. Mr. Mendenhall agreed. RESOLUTION OFFERED BY MEMBER MALCOLM, the readi ng of the text was wai ved by unanimous consent. MSUC (Malcolm/Moore) that the City/Agency receive an additional 5% of the net profit of Housing Opportunities, Inc. Redevelopment Agency -5- Apri 1 21, 1988 The resolution passed and was approved unanimously as amended. 7. RESOLUTION 921 ADOPTING NEGATIVE DECLARATION IS-88-41, MAKING REQUISITE FINDINGS AND APPROVING A SPECIAL PERMIT TO THE SHELL OIL COMPANY FOR THE REMODELING OF A SERVICE STATION LOCATED WITHIN THE OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA Envi ronmental Revi ew Coordi nator Rei d responded to questi ons from the Agency regarding this item. Regarding the traffic impact analysis, the level of service provided by the street system would not change. An analysis of traffi c safety was not done because the Traffi c Engi neer di d not see the impact as a major issue. RESOLUTION OFFERED BY MEMBER MALCOLM, the reading of the text was waived by unanimous consent. Member Moore suggested it may be appropri ate for the Agency to recei ve a better education on EIRs and have the appropriate staff members available to answer questions in the future. He further noted it would be helpful for each EIR to be compared with the Master EIR for a Redevelopment Area. Member Nader asked for a separate vote on the adoption of the Negative Declaration. MS (Malcolm/Cox) to adopt the Negative Declaration. (The vote was 3-1; Member Nader voting no.) THE BALANCE OF THE RESOLUTION WAS OFFERED BY CHAIRMAN COX, the reading of the text was waived by unanimous consent, passed and approved unanimously. 6. REPORT: REQUESTING MODIFICATION OF THE CC&Rs AGREEMENT WITH CENTRE CITY ASSOCIATES, LIMITED - COMMERCIAL Member Mal colm stated new i nformati on has developed on thi s item and he bel i eves the Redevelopment Agency shoul d take some acti on in the courts on Monday, Apri 1 25. There was not suffi ci ent time to docket thi s item for discussion in Closed Session. MSUC (Malcolm/Nader) to make the finding that there was not sufficient time to docket this item for discussion and to add this item under existing litigation in Closed Session. 9. DIRECTOR'S REPORT a. Status of Chula Vista Shopping Center Mr. Desrochers reported the Center is attempting to open by October 27. They will have their engineering drawings for the parking lot and landscaping into the City for review the first week of May. Homart hopes to open the Center with 75 - 80% of the shops leased. Redevelopment Agency -6- Apri 1 21, 1988 10. CHAIRMAN'S REPORT Chairman Cox commented that at Bay Blvd. and E and F Street there is City signage that has incorrect information. He would like staff to take whatever steps necessary to correct the si gnage so that vi sitor information points to the new center at the Trolley station. 11. MEMBERS' COMMENT Member Malcolm stated he asked Mr. Jim Pieri to be present at this meeting to discuss a major office building he would like to build. Mr. Malcolm commented the properti es purchased on Thi rd Avenue being considered for School District offices are still vacant. He would like to see staff work with Mr Pieri regarding opportunities for this site. Mr. Jim Pieri, 4660 La Jolla Village Drive, La Jolla, referred to an existing building that his firm built at 678 Third Avenue (Corporate Plaza). Quality tenants have been attracted to this building. This building is producing the highest rent rates in the South Bay. Mr. Pieri stated he is very anxious to do another similar building. His firm has a few major tenants who have i ndi cated they woul d be interested in Chul a Vista. The perimeters are Third Avenue and they woul d 1 ike a buil ding comparabl e to Corporate Pl aza. He is interested in the Thi rd Avenue site suggested by Member Malcolm. Mr. Desrochers stated the School District's delay in acting with regard to thi s si te is 1 inked to fi nanci ng. He has drafted a Request for Proposal asking the development community if they would like to build the building for the School District, and determine if there is some kind of option whereby the School District could buy the building back. Member Malcolm stated he would like to have discussion of this item docketed for Tuesday, April 26. He would like to direct staff to start working with the development community to come forward with proposal s to the Redevelopment Agency regarding this site. MSUC (Cox/Malcolm) to adjourn the meeting to Tuesday, April 26 and docket discussion of the options for the Third Avenue properties currently being considered for the School District Headquarters. ADJOURNED to Closed Session at 5:13 p.m. to discuss: Existing Litigation - Centre City Associates (Foreclosure); Existing Litigation - Cabrillo Lanes; Potential Acquisition of Prop,erty Located at: 327 "H" Street (Michael and Susan Adkins, owners), 329 "H' Street (Edwin & Jean Jones and Jerry and Karen Alt, owners), and 494 Third Avenue (Eugene Roberts, owner). ADJOURNED from Closed Session at following the City Council meeting. 26, 1988 Pau . Desrochers Community Development Director WPC 3573H