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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.