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HomeMy WebLinkAboutrda min 1978/05/04 MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA Thursday - 7:00 p.m. May 4, 1978 A regular meeting of the Redevelopment Agency of the City of Chula Vista, California was held on the above date, beginning at 7:00 p.m., in the Council Chambers, City Hall, 276 Fourth Avenue, with the following: MEMBERS PRESENT Chairman Hyde, Members Hobel, Cox, Scott, Egdahl Membe rs Absent None STAFF PRESENT Executive Director Cole, Special Counsel Reed, Community Development Director Desrochers, Community Development Coordinator Boyd, Administrative Analysts Cebula and Sanseverino ALSO PRESENT Messrs. Dick Zogob, Lloyd Lee, C. P. Kiffe, Bernard Bernes, Bud Isham, William Milloy; Mrs. Myrtle Bates ITEM NO. 1 - APPROVAL OF MINUTES It was moved by Member Scott, seconded by Member Cox and unanimously carried by those present to approve the minutes of the Regular Meeting of April 6 and Adjourned Regular Meeting of April 18, 1978 as mailed. ITEM NO. 2 - STATUS REPORT: ACQUISITION OF PROPERTIES As authorized by the Redevelopment Agency at its meeting of April 6, 1978, staff has commenced procedural steps to initiate condemnation proceedings. Four resolutions have been included as individual agenda items for which staff recommends approval. Those property owners involved are r~rtle C. Bates; Lloyd Lee, Inc.; Richard G. and Elizabeth A. Zogob and C. P. and Gloria Kiffe, and Southèrn Pacific Industrial Develop- ment Company. A Federal Court hearing was held on April 24, 1978 concerning the acquisition of a parcel owned by the U. S. Government (Mr. Jat building). Since no overbids were re- ceived at that hearing, the Federal Government has proceeded with the sale to the Redevelopment Agency with the filing of a Quick Claim deed on April 28, 1978. It was moved by Member Hobel, seconded by Member Scott and unanimously carried by those present to accept the report. Member Egdahl arrived at this time (7:02 p.m.). ITEM NO. 3 - RESOLUTION NO. 113 - DETERMINING AND DECLARING THE PUBLIC NECESSITY OF THE ACQUISITION OF PROPERTY OWNED BY MYRTLE C. BATES Upon authorization of the Redevelopment Agency at its April 6, 1978 meeting, staff has commenced procedural steps to initiate condemnation proceedings on the above named parcel. As of this date Mrs. Bates has not agreed to the offer upon the advice of her attorney, William Milloy. (Mr. Milloy was present at the meeting to represent his cl ient.) Community Development Director Desrochers reported that no progress had been made to resolve the apparent impasse. 5/4/78 -2- Redevelopment Agency Meeting May 4, 1978 Offered by Chairman Hyde, the reading of the text was waived by unanimous consent passed and adopted by the following vote, to-wit: AYES: Member Hyde, Hobel, Cox, Scott, Egdahl Noes: None Absent: None ITEM NO. 4 - RESOLUTION NO. 114 - DETERMINING AND DECLARING THE PUBLIC NECESSITY OF THE ACQUISITION OF PROPERTY OWNED BY LLOYD LEE, INC. Staff was authorized by the Redevelopment Agency at its meeting of April 6, 1978 to commence procedural steps to initiate condemnation proceedings on the above named parce 1. As indicated at that meeting, Mr. Lee has not been willing to the sales trans- action with staff. Addressing the Agency, Mr. Lee clarified statements pUblished by the news media regarding his opposition towards condemnation proceedings. In his remarks to the Agency he stated that he is not o)Posed to the condemnation but rather to the method of financing (i.e. Federal grants being used for this purpose. Mr. Lee noted that he was in favor of the improvement of the downtown area however. The Chairman expressed his appreciation for Mr. Lee's clarification and comments. Offered by Chairman Hyde, the reading of the text was waived by unanimous consent, passed and adopted by the following vote, to-wit: AYES: Member Hyde, Hobel, Cox, Scott, Egdahl Noes: None Absent: None ITEM NO. 5 - RESOLUTION NO. 115 - DETERMINING AND DECLARING THE PUBLIC NECESSITY OF THE ACQUISITION OF PROPERTY OWNED BY RICHARD G. AND ELIZABETH A. ZOGOB AND C. P. AND GLORIA KIFFE At the Redevelopment Agency meeting of April 6, 1978, staff was authorized to commence steps to initiate condemnation proceedings on the above named parcel. Mr. Zogob I s de- cision to sell is contingent upon the terms of a Disposition & Development Agreement now being negotiated with the Agency. Mr. Kiffe feels Mr. Zogob is the key to the sale and is in concurrence with his decision. Mr. Kiffe spoke to the Agency stating that he too is opposed to condemnation proceed- ings with the use of federal funds. Offered by Member Cox, the reading of the text was waived by unanimous consent, passed and adopted by the following vote, to-wit: AYES: Member Cox, Hobel, Hyde, Scott, Egdahl Noes: None Absent: None 5/4178 -3- Redevelopment Agency Meeting May 4, 1978 ITEM NO. 6 - RESOLUTION NO. 116 - DETERMINING AND DECLARING THE PUBLIC NECESSITY OF l'H8 ACQUISITION OF PROPERTY OWNED BY SOUTHERN PACIFIC INDUSTRIAL DEVELOPMENT COMPANY As reported to the Redevelopment Agency on April 6, 1978, an offer to purchase has been mailed to the headquarters of the Southern Pacific Land Company whereby they had requested more detail on the acquisition before taking an official position on it. In view of the fact that staff is close to an agreement for property acquisition and in order to establish a date of value, it was requested that the resolution authorizing commencement of condemnation proceedings be approved. Offered by Chairman Hyde, the reading of the text was waived by unanimous consent, passed and adopted by the following vote, to-wit: AYES: Member Hyde, Hobel, Cox, Scott, Egdahl Noes: None Absent: None ITEM NO. 7 - STATUS OF DEVELOPMENT PROPOSAL OF FOCUS AREA A draft Disposition & Development Agreement has been prepared for the Agency's review. The first phase of this agreement proposes the utilization of the Agency's power of land assembly to provide an adequate site for development. Since some of the parcels have or will be acquired with Block Grant funds, an Agency write-down may be proposed. A re-use appraisal will be necessary. (Community Development Director Desrochers defined "re-use appraisal" as: appraising property under its allowed use as provided in the Redevelopment Plan.) Among the points to consider in the Agreement are: owner participation requirements; initial and final treatment to the rear of the Shop- ping Center property; relocation and undergrounding of utilities; manner in which the developer funds will be escrowed from the first phase for use in subsequent phases; Agency/Developer responsibil ities with regard to site preparation; schedule of land acquisition and development of the remaining properties. Mr. Desrochers indicated that June 1st is the proposed target date for completion of the Disposition & Development Agreement. Mr. Zogob approached the Agency and proceeded to describe the architect's conceptual sketches on display for their review. Chairman Hyde noted that at the Project Area Committee meeting this date members expressed their enthusiasm upon review of the submitted plans. In response to Member Hobel 's query, Mr. Desrochers indicated that talks with Joe Raso (La Bella Pizza) have been aimed at encouraging Mr. Raso to remodel at his present location. The Agency was informed of the acceptance of the UDAG Pre-Application by the Federal office in Washington and area offices in Los Angeles. It was noted that communications with the Denver HUD office requesting this City's representation in Denver to discuss the pre-application have been made. Community Development Director Desrochers asked for Agency consideration to have the Mayor or a City Councilman accompany himself and Mr. Zogob on this trip. 5/4178 -4- Redevelopment Agency Meeting May 4, 1978 Upon consultation with Special Counsel Reed, Chai.rman Hyde agreed this matter should be brought before the'Tity Counci:1. It was moved by Chairman Hyde, seconded by Member Cox and unanimously carried to accept the report. ITEM NO. 8 - REPORT: OWNER PARTICIPATION DISCUSSIONS a. BERNES/lSHAM Staff and Mr. Zogob have met with Messrs. Bernes and Isham and are now working towards owner participation. Mr. Bud Isham reported to the Agency that things are shaping up favorably in this regard. Member Hobel questioned Community Development Director Desrochers regarding a time frame for completion of the Owner Participation Agreement. Mr. Desrochers remarked that this would depend on the outcome of a meeting between the architect, Mr. Innis, and the principles involved. Special Counsel Reed added that the Owner Participation Agreement would be worked out concurrently with the Disposition & Development Agreement scheduled for completion in June. Discussion ensued relative to the execution of this agreement. In answer to Member Egdahl's question on the advantages and disadvantages of securing a single developer in the redevelopment project, Community Development Director Desrochers explained that the purpose of having a master developer is to attempt to coordinate development. Mr. Desrochers commented on the Small Business Administration (SBA) loan program that was instigated by the Community Development Department. He proceeded to give a brief description of the concept stating that it was an attempt to provide small businesses the means to improve their businesses with lower interest loans than currently avail- able. Chairman Hyde reiterated that the SBA would affect remodeling of existing structures for the most part and was not for new development as proposed by Mr. Zogob. It was moved by Member Scott to direct staff to submit a written document to the Agency stating the purpose of the Small Business Administration program in relation to the focus area and how it would affect present businesses in the redevelopment area. The motion died for lack of a second. Chairman Hyde requested a further explanation of the program. Mr. Boyd reported that as part of an effort to motivate owner businesses to renovate their establishments on Third Avenue, staff has investigated the program which offers low-interest loans for rehabilitation and new construction. Under this program a local banking institution would lend 45% of the total project cost at the going interest rate, while the SBA would loan another 45% at 6-5/8%. The remaining 10% would come from a variety of sources including: (1) the Local Development Corporation (LDC) formed by project businesspersons (the LDC could generate capital for loans by requiring sub- stantial membership fees); (2) the applicant could be required to put up 10% or a portion 5/4178 -5- Redevelopment Agency Meeting May 4, 1978 thereof; (3) the City could loan a portion of its Block Grant funds at an interest rate yet to be determined as part of that 10%. The advantage of this program is that the loans made available through the LDC are for lower interest rates and for a longer period of maturity than other loans that are available. Staff has introduced this concept to both the Project Area Committee and the Town Centre Business & Professional Association and has met with enthusiastic endorsements. It is anticipated that if this program is accepted by the local businesses and an LDC is able to be formed, a program will be presented to the Redevelopment Agency for consideration. It was moved by Member Egdahl and seconded by Member Scott that staff be directed to submit a written report to the Agency in regards to the function of the LDC in order for the Agency to properlY evaluate it and to discuss the merits of this program par- ticularly in the focus area. The motion was passed by the following vote, to-wit: AYES: Member Egdahl, Cox, Hyde, Scott Noes: Member Hobel Absent: None b. RASO - LA BELLA PIZZA Community Development Director Desrochers stated that plans have been submitted to the Design Review Board. It is staff's intention to purchase the land-locked parcel and resell to the Raso's. In response to Member Cox's query on the drainage problem, Mr. Desrochers indicated that this would require an engineering study. It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried to accept the report and direct staff to meet with Mr. Raso and report back on this item at next month's Redevelopment Agency meeting. Joe Raso reiterated on submitted plans. He told the Agency the reason why he desired to relocate is due to opposition and lack of cooperation by the City. Chairman Hyde clarified the intent of the previous motion for Mr. Raso, stating that the gist of the motion was to have staff come back with a report to the Agency in order to resolve any problems involving the applicant. He added that a letter has been pre- pared offering the City's assistance in any way possible. Member Egdahl left at this time (8:11 p.m.). ITEM NO. 9 - RESOLUTION - ENTERING INTO AN OWNER PARTICIPATION AGREEMENT WITH MR. ROBERT CAMRBELL FOR THE ESTABLISHMENT OF A MUSIC STUDIO ON THE SOUTHEAST CORNER OF GARRETT AND DAVIDSON This item was stricken from the agenda. ITEM NO. 10 - RESOLUTION NO. 117 - ENTERING INTO AN OWNER PARTICIPATION AGREEMENT FOR 234 THIRD AVENUE On January 11, 1978, the Design Review Board voted to approve plans submitted for the remodel of an existing building at 234 Third Avenue. The approval was granted on the following basis: 5/4178 -6- Redevelopment Agency Meeting May 4, 1978 1. Approval includes the 12" encroachment and the sign encasements. 2. The planters are to be lined with copper, provided with drainage and sealed along the front rim. 3. Graphics and plant materials will be approved by City staff. When the application was first filed for Design Review Board consideration, the esti- mated cost of the project was $18,000; this is below the $20,000 minimum requiring the execution of an Owner Participation Agreement. The cost detailing required in the Building Permit application revealed that construction costs would approach $35,000. Staff recommended execution of the Agreement to the owners who consented. When com- pleted, the remodeled store will be the new home of Atlas Travel now located at 318~ Third Avenue. Offered by Chairman Hyde, the reading of the text was waived by unanimous consent of those present, passed and adopted by the following vote, to-wit: AYES: Member Hyde, Hobel, Cox, Scott Noes: None Absent: Member Egdah 1 ITEM NO. 11 - RESOLUTION NO. 118 - APPROVING PROPERTY MANAGEMENT POLICIES AND RENTAL AGREEMENT FOR THE REDEVELOPMENT PROJECT AREA Acquisition of property within the Town Centre 16-acre site has begun. In order to comply with Section 430 of the Town Centre Redevelopment Plan and the Federal Uniform Relocation Act supervised by HUD, Property Management Policies and Rental Agreements for acquired properties have been drawn up. Any persons or any personal property may be eligible for relocation assistance in the form of moving expenses according to HUD regulations. This City is currently exploring with the County Housing Authority the possibility of offering Section 8 subsidies to eligible residential tenants in place of rental assistance. Other relocation and rental assistance payments would be made from Community Development Block Grant funds. The provision whereby all tenants under HUD regulations must receive a 90-day notice to terminate the agreement with continued occupancy on a month-by-month basis has been incorporated into the Agreement and policies. The Property Management Policies and Rental Agreements have been drawn using the City of San Diego as a model. San Diego's Relocation Department is assisting staff in con- ducting the necessary relocation activities. Both general and specific policies are covered in the Property Management Policy setting forth activities such as terms of the Rental Agreement, circumstances under which Agency may adjust the rent, proration of rent, refunds and eviction proceedings. The Rental Agreement reiterates many of those same specifics and will be formalized by each tenant. Offered by Member Scott, the reading of the text was waived by unanimous consent of those present, passed and adopted by the following vote, to-wit: AYES: Member Scott, Hobel, Cox, Hyde Noes: None Absent: Member Egdahl 5/4178 -~ Redevelopment Agency Meeting May 4, 1978 ITEM NO. 12 - REPORT OF SPECIAL COUNSEL: NEED FOR PUBLIC HEARING ON LAND USE MATTERS/APPEALS According to a letter submitted by Special Counsel Reed concerning public hearing require- ments in the situation where a property owner desires to enter into an Owner Participation Agreement to improve his property and the proposed agreement contemplates a change in the existing use of the subject property, Mr. Reed reported that no public hearing is required assuming that the contemplated use is in conformity with the adopted redevelopment plan and assuming that the transaction does not involve the sale or lease of property by the Agency. Should the Agency feel that in certain situations public hearings are desirable, it has the discretion to provide for such hearings either on a case-by-case basis or pur- suant to adopted guidelines. Staff recommends continuance of the present system due to the fact that all land use questions are reviewed by the Project Area Committee prior to Agency consideration. It was moved by Chairman Hyde, seconded by Member Cox and unanimously carried by those present to accept the report. ITEM NO. 13 - REPORT: DEVELOPMENT OF BAY BOULEVARD PROPERTIES a. Atchison-Topeka & Santa Fe b. Campbell et al c. Street/Mazomenos a. ATCHISON-TOPEKA & SANTA FE The railroad shows interest in marketing their Bay Boulevard properties which consist of approximately 15 acres from I to L Street between the freeway and railroad tracks. There are several interested parties desirous of constructing warehousing, light manu- facturing and wholesale uses along with possible freeway-related commercial development at J Street. The potential uses are within the parameters of the plan and are being encouraged. b. CAMPBELL ET AL Orange Development Company of San Diego is desirous of constructing a motel of approxi- mately 120 units and a quality restaurant of 7,000 sq. ft. ~ on Bay Boulevard property. The developer has obtained option agreements with the owners on three of the parcels which comprise 85% of the land. An investment of $5,000,000 is contemplated. Along with an exclusive negotiations agreement, the developers have requested the opportunity to develop, on a first rights of refusal basis, other properties in the project. The details must be refined and incorporated into a suitable agreement for Agency consider- ation. Staff is encouraged by the progress to date and feels that the proposal makes economic sense not only to the Agency, but to the property owner and developers as well. c. STREET/MAZOMENOS As reported to the Agency earlier this year, Mr. Street has obtained a long-term lease- hold interest in the 3~ acres adjacent to this parcel. He has hired an architect to provide preliminary studies and a plot plan for 150 to 200 motel units, a restaurant, lounge and coffee shop as a first phase development. Staff should be able to review the material by May 7th. It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried by those present to accept the report. 5/4/78 -8- Redevelopment Agency Meeting May 4, 1978 ITEM NO. 14 - REPORT: RECREATIONAL VEHICLE PARK ON SAN DIEGO UNIFIED PORT DISTRICT PROPERTY Mr. Richard W. Wilson (present at tonight's meeting) has requested to lease approxi- mately 20 acres of Port District Tidelands to develop a recreational vehicle park. The property involved is immediately north of the J Street Boat Launching ramp and at the end of Quay Avenue. The park is envisioned to include spaces for approximately 250 vehicles. It is proposed to construct docks so that users of the RV park can launch and retrieve their boats. A boat storage facility to be used in conjunction with the dock development would also be included. Even though the development is different from what is proposed in the Bayfront Rede- velopment Project Plan, the RV park is not incompatible with the other land uses that are being proposed on the Bayfront. Also, vandalism and crime problems in the J Street Marina vicinity may be alleviated. The Planning Department is in concurrence with the idea in that the RV park may be appropriate as an interim (25-30 year) use. Mr. Wilson appeared before the Port Commissioners to discuss his project on April 11, 1978. The concept was approved contingent upon approval of the City of Chula Vista. It was moved by Member Scott, seconded by Member Cox and unanimously carried by those present to accept the report. ITEM NO. 15 - REPORT: DISCUSSIONS WITH FEDERAL AGENCIES CONCERNING THE BAYFRONT DEVELOPMENT On April 11, 1978, a meeting to discuss the joint consultation process was held in Los Angeles with the following in attendance: City of Chula Vista, Federal Highway Administration, CALTRANS, U.S. Army Corps of Engineers, and the U.S. Fish & Wildlife Service. A letter dated March 7, 1978 from the U.S. Fish & Wildlife Service was received by this department. This letter was interpreted by the City of Chula Vista to mean that if the City agreed to certain environmental compensation measures, the U.S. Fish & Wildlife Service would no longer object to the construction of Tidelands Avenue. At the meeting, the U.S. Fish & Wildlife Service interpreted the letter dif- ferently. Being disturbed by their interpretation, City staff consulted Mayor Hyde. The Mayor in turn called the Portland office for a clarification of this letter. As a result, a clarification letter was issued to the Federal Highway Administration on April 20, 1978. There now appears to be two approaches to consider at this point: Joint consultation and re-opening the consultation process for the Tidelands Avenue EIS. It was moved by Member Scott, seconded by Member Hobel and unanimously carried by those present to accept the report. ITEM NO. 16 - REPORT: DRAFT EIR The draft EIR for Project II is now being completed. The process is about one month behind schedule principally because of traffic engineering problems that may result in the closure of 5th Avenue. Distribution of the draft is approximately one more week. It was moved by Member Cox, seconded by Member Scott and unanimously carried by those present to accept the report. 5/4/78 -9- Redevelopment Agency Meeting May 4, 1978 MEMBERS' COMMENTS Member Cox referred to the Chula Vista Trade School as becoming a rock-throwing target. Mr. Desrochers informed Member Cox and the Agency that talks with the owner, Mr. Reneau, indicated that the owner is in the process of selling the property. Member Cox requested the Agency be kept informed as to further action on this item. Chairman Hyde announced that an Adjourned Regular Meeting of the City Council would be held following the Redevelopment Agency Meeting. The meeting was adjourned at 8:26 p.m. to the Adjourned Regular Meeting of the City Council and the regularly scheduled Redevelopment Ag~~eting of June 1, 1978. /. r ....... A ¡ \ ~l~~íj . if / __/;) /I·f ,/ p~;;; G.;~~£I1;;:s,~ê·r1târ~ 5/4178