HomeMy WebLinkAboutrda min 1988/10/04 (2)
MINUTES OF AN ADJOURNED REGULAR MEETING
OF THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
Tuesday, October 4, 1988·
8:00 p.m.
Council Chamber
Public Services Ruilding
ROLL CALL
MEMBERS PRESENT:
MEMBERS ABSENT:
STAFF PRESENT
Chairman Cox, Members Nader, Moore
Members Malcolm, McCandliss
Executive Director
Development Director
Attorney Harron
Goss, Community
Desrochers, City
1. APPROVAL OF MINUTES
MSUC (Nader/Cox) to approve the minutes.
CONSENT CALENDAR
All matters 1 i sted under consent cal endar are consi dered to be
routi ne by the Redevelopment Agency and wi 11 be enacted by one
motion in the form listed below. There will be no separate
discussion of said items unless good cause is shown prior to the
time the Redevelopment Agency votes on the motion to adopt.
END OF CONSENT CALENDAR (Items 2 - 8)
Items pulled: #6
Chairman Cox offered the Consent Calendar, the reading of the text
was waived by unanimous consent, passed and approved unanimously.
2. REPORT
MIDBAYFRONT PLANNING SCHEDULE
Community Development Director Desrochers explained that the
Negotiating Agreement between Chula Vista Investors and the
Redevelopment Agency calls for a time schedule for the conduct of
planning activities relative to the negotiation of an Owner
Participation Agreement for Midbayfront development. Cinti &
Associ ates, the Agency I s contract pl anner and staff have met wi th
Chula Vista Investors (CVI) several times and developed the
schedul e; however a revi sed schedul e was submi tted the Agency
delineating the time frame for the Midbayfront planning.
The Negotiation Agreement provides for a two-year timeframe to
complete planning processes, amendment to the Local Coastal Plan
and State Coastal Commission approval. The Local Coastal Plan
amendmelnt will then be prepared for Agency consideration and
hearingls set for the Planning Commission, City Council and
finallt, the State Coastal Commission.
Minutes
- 2 -
October 4, 1988
Once the Agency has determined the basic land uses through the
planning process, then, concurrent with the preparation of the
LCP, negotiations will begin on the composition of an Owner
Participation Agreement. The negotiations will focus on a number
of issues, including a schedule of performance, public
contribution, if any, and assessment district participation.
3. RESOLUTION 959
APPROVING ACQUISITION AGREEMENT AND DEED
FOR THE ACQUISITION OF PROPERTY AT 340 BAY
BOULEVARD
On May 29, 1988, Agency members approved an appropriation for the
acquisition of property located at 340 Bay Boulevard. To complete
the documents for conveyance, a final acquisition agreement and
deed have been prepared for submittal to escrow along with an
initial assessment of potential on-site hazardous substances.
Since this project is a transfer of ownership only, there is no
possibil ity that the activity may have significant effect on the
environment; therefore, the activity is not subject to CEQA.
The Acquisition Agreement sets forth the provision for conveyance
of the property to the Agency under threat of condemnation. The
purchase price of $600,000 net as agreed upon is stated in the
agreement. The Agency will be responsibl e for taxes to the date
of conveyance.
The current tenant, Thermo-King, will be allowed to occupy the
site for one year. Occupancy will be in accordance with the basic
provisions of the current lease with an adjustment to the monthly
rent and release from the future options clause.
Upon the close of escrow, the Agency will have disbursed $600,000
to Sundland Homes for site acquisition and approximately $3,200 in
title and escrow fees. Rental income to the Agency will depend
upon the number of months the site is occupied. Rent will be
$2,184 per month after the $1,250 discount to\~ard FF&E
compensation which is a total of $15,000.
4. RESOLUTION 960
APPROVING THE PAYMENT OF LEGAL FEES SIERRA
CLUB V. JOHN MARSH, SECRETARY OF THE ARMY
As a resul t of the settlement of the Sierra Cl ub v. John Marsh,
Secretary of the Army, the U. S. Di strict Court has proposed that
legal fees be divided according to a prescribed formula. The
Redevelopment Agency has been assessed $50,732.05. Funds are
available for this purpose in Account No. 990-9707-5201.
5. RESOLUTION 961
APPROVING CHANGE ORDER NO. 4 FOR THE
"DH10LITION, CLEARING OF BUILDINGS AND
IMPROVEMENTS ON 12 PARCELS" CONTRACT,
EXTENSION OF CONTRACT TIME, AND
AUTHORIZING THE DIRECTOR OF PUBLIC WORKS
TO EXECUTE THE CHANGE ORDER ON BEHALF 0
THE REDEVELOPMENT AGENCY
Minutes
- 3 -
October 4, 1988
On August 20,1987, the Redevelopment Agency, by Resolution No.
821, awarded a contract in the amount of $109,700 to Hoffer and
Sons for the demolition, clearing of buildings and improvements on
12 parcels. These parcels are at various locations within the
Town Centre and Bayfront Redevelopment Project Areas and have been
demolished as the parcels became available.
To date, 11 of the original 12
change orders were executed.
orders was to increase the
$117,235.
parcels have been cleared and three
The net resul t of the three change
contract amount from $109,700 to
Proposed change order No. 4 is for the addi ti on of two more
parcel s to the contract at a cost of $6,000. The two parcel s are
located at 327 and 329 "H" Street, to the rear of the Coldwell
Banker building. They each include a single-family dwelling unit
and are in the process of bei ng acqui red by the Redevelopment
Agency in order to remove non-conforming land uses and expand
parking facilities in support of anticipated commercial
redevelopment on adjacent parcels.
Staff's recommendation was to approve change order No. 4 and
extend the contract time (30 calendar days).
The original contract was for $109,700. This amount was increased
to $117,235 after the approval of change orders Nos. 1, 2 and 3.
The proposed change order wi 11 increase thi s amount $6,000 to a
total contract amount of $123,235. The funds to cover the change
order are available in project account number 995-9950-RDl16 (Site
Acquisition, 3rd & "H").
ON COST SHARING FOR CONSTRUCTION OF
CUL-DE-SAC AND STREET WIDENING ON FIG AVENUE
A
6. REPORT
Pulled from Consent Calendar
7. RESOLUTION 962
AUTHORIZING EXPENDITURE OF MONIES FROM THE
REDEVELOPMENT AGENCY CONTINGENCY FUND FOR
PURCHASE OF A FACSIMILE MACHINE (Oeputy
City Manager)
Si nee June 14, 1988, the Ci ty has been usi ng a facsimil e machi ne
on loan from the League of California Cities. After reviewing
City usage rates over the past 3-1/2 months and assessing the
facsimile market, it is proposed that a facsimile machine be
purchased during the current budget year when the League machine
is returned at the end of the Mayor's term as President of the
League. Since the machine will be used on a Citywide basis, it is
recommended that costs be divided between Redevelopment Agency and
City funds. Based upon relative departmental needs and usage
rates, it is suggested that equipment related costs be borne by
the Redevelopment Agency and that on-going operating costs be
borne by the City over at least the next 3 years.
Minutes
- 4 -
October 4, 1988
A maximum of $2,060 is needed to purchase
facsimile machine and phone 1 ine and to
maintenance coverage. Sufficient funds are
Redevelopment Agency Contingency Fund.
and install the
provide initial
available in the
8. ORAL COMMUNICATIONS
r~r. Robert Scott, owner of Al s Trail er Haven, gave the Agency a
report on the status of the closing of the trailer park, noting
the number of spaces that have moved out, the number of temporary
spaces and the "five or six" which he is attempting to relocate.
The actual closing of the park will be March 31, 1989.
PULLED ITEMS
6. REPORT
ON COST SHARING FOR CONSTRUCTION OF
CUL-DE-SAC AND STREET WIDENING ON FIG AVENUE
A
The closure of Fig Avenue to through traffic between "H" and "I"
Streets is a required mitigation measure for the closure of Fifth
Avenue and redevelopment of the Chula Vista Shopping Center. The
Disposition and Development Agreement (DDA) with Homart
Development Company requi res that Homart take responsibi 1 i ty for
the implementation of all the traffic mitigation measures
recommended in the Envi ronmental Impact Report for the project,
including the Fig Avenue closure. Since Agency approval of the
DDA, the scope of the Fig Avenue project has expanded considerably
beyond the measures recommended in the EIR. As a resul t, Homart
has offered to pay approximately 14% of the estimated project cost
based upon their original proposal. The San Diego Trust and
Savings Bank has proposed to dedicate easement for the widening of
Fig Avenue, north of Shasta, in lieu of a cash contribution.
The recommendation was that the Agency accept the report and
requi re Homart to pay the total cost of closure of Fi g Avenue,
including a cul-de-sac and street widening.
The bank estimates the val ue of the property to be granted to be
$6,500. This estimate is based upon a land value of $16 per
square foot which appears to be reasonable. They request that the
granting of this property fully satisfy their contribution to the
project. Based upon the lowest construction bid for this project
($46,OOO), staff estimates the bank's one-half share of the street
widening (west side of Fig Avenue) to be $3,000.
Homart offered to contribute $6,000 based upon their original cost
estimate indicating that the scope of the project has grown far
beyond the requirements of the DDA and EIR. However, staff
contended the EIR is a conceptual document and does not provide a
specific plan for the proposed improvements. Final plans are
subject to refinement and revision as part of the planning and
design process. The cul-de-sac, street widening and installation
of a street light were not specifically called for in the EIR.
The Agency has determi ned that they are necessary to allow the
harmonious co-existence of commercial and residential uses in the
Fig Avenue neighborhood. This does not alter Homart's
responsibility to pay for the improvements.
Minutes
- 5 -
October 4, 1988
Total construction costs, including staff time costs, are
estimated at $46,000.
Tom Gourgeuchon, representing Homart, asked for a continuance of
two weeks in order to study the staff's recommendation since it
involves a lot of money being required of Homart for this project.
MSUC (Cox/Moore) to continue this item for two weeks (October 20)
and bring this back at the same time as the awarding of the
contract.
9. DIRECTOR'S REPORT
a. Tom Gourgeuchon, representi ng Homart Development Company,
reported the grand openi ng of the Center is schedul ed for
October 27, 1988. There are presently 335 peopl e \~orki ng on
the project; 32 out of 40 stores have been leased; he expects
at least 20 more by Thanksgiving; it was a 16 month project
finished in 10 months; sales in the Center are up 15% over
last year despite the on-going construction.
Executive Director Goss confirmed the number of permits that
have been issued (35 tenant applications) and commended the
staff for their efforts in this process.
10. CHAIRMAN'S REPORT None.
11. MEMBERS' COMMENTS None.
The Agency adjourned to Closed Session to discuss potential
acquisition of property at 329 "H" Street (Edwin H. & Jean M.
Jones, and Jerry D. & Karen L. Ault, owners)
ADJOURNMENT AT 9:00 p.m. to the regular meeting of October 20,
1988 at 4:00 p.m.