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HomeMy WebLinkAboutrda min 1976/09/02 MINUTES OF A REDEVELOPMENT AGENCY MEETING OF THE CITY OF CHULA VISTA, CALIFORNIA Held Thursday September 2, 1976 A regular meeting of the Redevelopment Agency of the City of Chu1a Vista, California, was held on the above date beginning at 7:30 p.m. in the Council Chambers, City Hall, 276 Fourth Avenue with the following Members Present: Chairman Hamilton, Members Hyde, Cox, Egdah1, Hobe1 Members Absent: None Staff Present: Acting Executive Director Asmus, Attorney Clifton Reed, Community Development Director Desrochers It was moved by Chairman Hamilton, seconded by Member Cox to adjourn the meeting to Executive Session. 1. APPROVAL OF MINUTES It was moved by Member Egdah1, seconded by Member Hyde and carried, with Member Cox abstaining in view of his absence at the last meeting, that the minutes of the meeting of August 5, 1976 be approved, copies having been sent to each member. Chairmón Hamilton stated that his vote of approval was for those items for which he was present and that he abstains on those for which he was absent. TOWN CENTRE 2. PROGRESS REPORT - In a written report made to the Agency, DEVELOPER SEARCH Director Desrochers reported that on August 18th approxlmate1y 30 copies of a letter regarding the Bayfront Plan were sent to developers, both national and local, inquiring of their interest in the project. Discussion Chairman Hamilton commented that he has received some responses with several of them negative. Di rector' Desrochers stated that he had received some responses showing interest and that he was coordinating with Gruen Gruen + Associates to pursue the matter further. Member Hyde questioned if the pending litigation was causing hesitation on the part of developers. Director Desrochers responded that it is not the litigation as much as the coastal legislation that is causing the reluctance. - 165 - Motion Made It was moved by Member Hobe1, seconded by Member Hyde and unanimously carried that the report be accepted. 3. REPORT ON STREET Community Development Director Desrochers reported PROPERTIES, INC. that staff has been working closely with the property owners and their co-developers in an effort to ex- pedite the development of a hotel/restaurant complex in concert with a nationally recognized chain. The name of the chain can not be made "public at this time. Motion Made It was moved by Member Egdah1, seconded by Member Cox and unanimously carried that the report be accepted. 4. STATUS REPORT: In a status report submitted by the Community COASTAL COMMISION Development Director, it was stated that the joint LAWLESS DETROIT DIESEL certification program between staff and the Regional ROHR CREDIT UNION Commision is nearing completion of its five-month J STREET PARK study period. The Bayfront Plan has been scrutinized relative to compliance with the State policies. Approval by the Coastal Commission will be another step toward acceptance of our Project by the investor/ developer types who have been shying away from coastal-related areas because of the uncertainty of regulations. Lawless Detroit Diesel Included in this report was a summarization of the progress of the development for the Lawless Detroit Diesel facility at Bay Boulevard and G Street. The building permit has been issued and the construction contract is out to bid. Rohr Credit Union Also reported was the completion of the Rohr Credit Union on Bay Boulevard. It was agreed that the Agency, by letter, compliment those responsible for the new addition to the project. J Street Pa rk In conclusion of this status report, the completion of J Street Park was noted. The former dog pound site has been landscaped and enhances the environment in what was formally a drab, unkempt area. Moti on Made Motion made by Member Hyde that the Mayor send a letter to inquire of the Port District Commissioner what plans they have for marketing in the vicinity of the J Street Marina and what their plans are for landscaping the area westward of our park. Motion Made Motion made by Member Egdah1, seconded by Member Hyde and unanimously carried that the report be accepted and that the Mayor be directed to send a letter to - 166 - the Port District Commissioner regarding their plans for the area in the vicinity of the J Street Park. Chairman Hamilton clarified that the motion made by Member Hyde directing the letter to be sent was included in the vote. 5. RESOLUTION NO. 55 - The Bayfront Project, now that bonds have been sold, APPROVING AGREEMENT FOR requires an annual independent audit. The City's SERVICES WITH CARROLL & independent auditors, Carroll & Pendleton, Associates PENDLETON, ASSOCIATES have been asked to perform the necessary services which include an inspection of the trustee's records (United California Bank). The fee for the services as proposed will not exceed $1,000. The audit should be available for public scrutiny and Agency review at the Bi-Annua1 Public Hearing for the project scheduled for October 7th. Funds are available in the Bayfront Bond Sale Account and will be requested from the Fiscal Agent. Discussion Member Hyde questioned the amount of the up to $1,000 fee stating that he felt it was high for the amount of work involved. Director Desrochers replied that since this was the first audit, Mr. Carroll did not know exactly how to estimate the amount of work and the cost and that he did not expect to expend the entire amount of money. Resolution Offered Offered by Member Cox, the reading of the text was waived by unanimous consent, passed and adopted by the following vote, to-wit: AYES: Members Cox, Hamilton, Egdah1, Hobe1, Hyde Noes: None Absent: None CHAIRMAN RELINQUISHES At this time, Chairman Hamilton relinquished the chair CHAIR TO VICE-CHAIRMAN to Vi ce - Chai rman Hyde due to a poss i b 1 e conf1 i ct of interest in the following items. 6. PROGRESS REPORT - Director Desrochers reported that the negotiation JOHN S. GRIFFITH & CO. agreement with John S. Griffith & Co. was progressing on schedu1 e. The Griffith Co. representatives have presented the concept plan to the proposed depart- ment store, market and drugstore and have met with, what at this time, can be considered a favorable response without actual commitment. Pre 1 imi nary Losts for acquisition, relocation and site prep- ara ti on have been developed. It should be within the next six to eight weeks that some definite con- clusion can be drawn. The target date for presentation of the Disposition and Development Agreement to the - 167 - Agency is December 2, 1976, within the 120-day limit. The Chairman of the Board of the depart- ment store will be here soon to inspect the site. Upon reaching an agreement with the firm, a pro- forma of cost can be prepared and both the City's expenses and those of" the developer refined, thus paving the way for preparation of an agreement. Presentation and Director Desrochers presented the Agency with a Discussion of Flow flow chart designating the activities of Griffith Chart Co. Member Hobe1 questioned if everything listed in August had been completed. Director Desrochers responded that except for the consultants contracts which were being presented tonight, all had been completed. Member Hobe1 then stated that he knew of two property owners who had not been contacted nor had they received any information. Director Desrochers stated that a letter had gone out under the Mayor's signature to all property owners in the area listed on the most current Assessor's roll. He also presented a letter that his staff will be taking to personally contact the tenants and businesses in that area and that those owners who were not informed would be contacted immediately. Motion Made Motion made by Member Egdah1, seconded by Member Hobe1 and unanimously carried by those present that the report be accepted. 7. RESOLUTION NO. 56 - At Agency direction, staff has obtained a proposal APPROVING GRUEN GRUEN for consultation services from Gruen Gruen + Associates + ASSOCIATES CONTRACT for the Town Centre Project. The cost is estimated FOR SERVICES RELATIVE not to exceed $7,500; but, as in previous cases, TO TOWN CENTRE could cost less since billing is proposed on an hourly bas is. Services to be provided include: 1. Analysis of financing alternatives rel- ative to the John S. Griffith proposal 2. Financial impact of alternate proposals 3. Analysis of investment results of financial proposals from the developer 4. Evaluation of the development/impact of alternate proposals on the competitive strength of nearby retailers and the project as a whole. Di scuss ion Member Egdah1 questioned if the work Gruen Gruen + Associates would do, would not be repeated/by Griffith and other major tenants involved. Director Desrochers agreed that Griffith would probably do theìr own, - 168 - however, the Agency should have an independent analysis to use for comparison and negotiation. Resolution Offered Offered by Member Egdah1, the reading of the text was waived by unanimous consent by those present, passed and adopted by the following vote, to-wit: AYES: Members Egdah1, Hobe1, Hyde, Cox Noes: None Absent: Chairman Hamilton 8. RESOLUTION NO. 57 - The municipal financing firm of Stone & Youngberg AMENDING REDEVELOPMENT has been asked to provide services relative to the AGENCY RESOLUTION NO. 11 Town Centre Project. It is proposed to amend the CONTRACT WITH STONE & firm's existing Bayfront Project contract to include YOUNGBERG - TOWN CENTRE like services for the Town Centre Project. Stone PROJECT & Youngberg will provide consu1tátion services rel- ative to financing programs available to the Agency. Of particular importance at this time, the firm will evaluate financing programs relative to the Griffith proposal. Cost for the services is derived on a percentage basis from the sale of bonds. Resolution Offered Offered by Member Egdah1, the reading of the text was waived by unanimous consent by those present, passed and adopted by the following vote, to-wit: AYES: Members Egdah1, Hobe1, Hyde, Cox Noes: None Absent: Chairman Hamilton 9. RESOLUTION NO. 58 - It is proposed to enter into an agreement with ;it1e APPROVING AGREEMENT FOR Insurance Company which would assist in obtaining SERVICES - TITLE INSURANCE information on the properties involved in the project COMPANY area. The proposed services would cover an acqui- sition program should the City embark on such a course. Further, the contract does not reserve exclusive rights to Title Insurance Co. for title and escrow services, which affords the Agency flex- ibility in obtaining those services should the need arise. Resolution Offered Offered by Member Egdah1, the reading of the text was waived by unanimous consent by those present, passed and adopted by the following vote, to-wit: AYES: Members Egdah1, Hobe1, Hyde, Cox Noes: None Absent: Chairman Hamilton - 169 - 10. STATUS REPORT: Director Desrochers reported that a new office REMODEL/CONSTRUCTION ACTIVITY building is planned for 470 Third Avenue in Subarea DES I GN MANUAL 2 of the Project. Staff from Planning and Com- COUNTY FACILITIES munity Development have met with Mr. John Nash, building designer, who represents the owners. An Owner Participation Agreement will be brought to the Agency for consideration at the appropriate time. Mr. Tom ¡~oney, Thi rd Avenue Rea ltor, has conferred with staff for direction and is preparing sketches for architectua1 review of his property. Several other owners are also planning extensive remode1ings or new construction. Design Manual The draft of the Design Manual is now under review of the Project Area Committee. After the initial modifications have been made, Agency members will recei ve "study" copi es. It is planned to present the document formally to the Agency at the October 7th meet i ng . Member Egdah1 asked if there were any problems re- garding the Design Manual from the Project Area Committee. Director Desrochers reported that there has been input from staff and the Committee with at least four pages of proposed changes. The Committee will be meeting at a special meeting next Thursday to further discuss this matter. County Facilities At present, City staff is reviewing plans for the interim facility to be located on the south side of Mankato, on the eastern edge of the site. The buildings will be approximately 20,000 square feet in size and situated so as not to interfere with the new construction. Move-in date is tentatively set for early May. The architectual program for the permanent facilities will be available for City review in mid-September. Motion Made Motion made by Member Cox, seconded by Member Egdah1 and unanimously carried by those present that the report be accepted. EXECUTIVE DIRECTOR' COMMENTS None CHAIRMAN'S COMMENTS None MEMBER'S COMMENTS None - 170 - COMMENTS FROM THE PUBLIC Dick Zogob Mr. Zogob commented that he understood that on the Agenda tonight was to be some information re- garding pricing of properties. Director Desrochers responded that any figures are simply estimates made by staff and that no appraisals have been made. M~ Zogob stated that he wished the Agency to know of his situation - that of having Mexican investors and the devaluation of the pesos - and is wondering when the situation involving his property will be resolved. Fred Gel somi ni Mr. Gelsomini questioned if the Griffith Co. will 650 Gretchen Road own the entire 18-acres outright when the development Chula Vista is completed or will it be possible for local resi- dents to invest in this proposal. Director Desrochers responded that with current negotiations still going on, it is undetermined whether the City will retain a major ownership in the land or whether Griffith will develop the whole site. No local partici- pation is being discussed in regard to the Griffith proposal but it is hoped that this will encourage revitalization in the immediate area and that many local tenants will relocate to the new center. Mr. Ge1somini also commented on the "blood, sweat, and tears" that would be lost to these long-time residents. Vice-Chairman Hyde responded that when the development is complete, this should be reflected in their in- creased sales and business. Mr. Gelsomini stated his concern of the rental rates in the new development and the cost to the "1 itt1 e guy". Dick Zogob Mr. Zogob commented that other people felt in the same manner as he and Mr. Ge1somini and that this new development would introduce new competition that would make it harder for the local tenants. Director Desrochers stated that with the new development and competition, it is hoped to balance the area commer- cially. Fred Gel somi ni Mr. Gelsomini asked whether the City has any plans to upgrade Third Avenue. Vice-Chairman Hyde explained that this is what the tax increment can be used for and that guide1 ines are currently being prepared by the Project Area Committee. AJOURNMENT Vi ce - Cha i rman Hyde adjourned the Redevelopment Agency meeting at next regularly scheduled meeting of Paul G. Desrochers, Agency Secretary - 171 -