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HomeMy WebLinkAboutrda min 1979/06/07 MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday - 7:00 p.m. June 7, 1979 A regular meeting of the Redevelopment Agency of the City of Chula Vista was held on the above date beginning at 7:00 p.m. in the Council Chambers of the Public Services Building, 276 Fourth Avenue, Chula Vista, California with the following: MEMBERS PRESENT Cha i rman Hyde, Members Gi 11 ow, Cox, Egdah I Members Absent Membe r Sco t t STAFF PRESENT Executive Director Cole, Special Counsel Reed, Community Development Director Desrochers, Community Development Coordinator Boyd, Deputy City Manager Robens, Agency Attorney Lindberg, Administrative Analyst Sanseverino, Assistant Planner Welch ALSO PRESENT Terry McCarty, Darrell Larsen, Joe Davis, Al Houtkamp, Tom Money ITEM NO. 1 - APPROVAL OF MINUTES It was moved by Member Gillow, seconded by Member Cox and unanimously carried by those present to approve the minutes of May 3, 1979 as mailed. ITEM NO. 2 - RESOLUTION NO. 176 - a. APPROVING AS TO FORM CERTAIN SUBLEASE AND GROUND LEASE RESOLUTION NO. 177 - b. AUTHORIZING THE ISSUANCE OF $51,000,000 PRINCIPAL AMOUNT OF LEASE REVENUE BONDS On May 29, 1979, the County Board of Supervisors authorized the subject agreements. Our joint financial consultants, Stone & Youngberg, has provided a breakdown of the cost for County and Agency review. An agreement involving authorization by the County to construct the center without Agency involvement will be available at the July Rede- velopment Agency meeting. Community Development Director Desrochers introduced Messrs. McCarty, Larsen and Davis and stated they would provide clarification of the important resolutions before the Agency. Mr. McCarty, representing Stone & Youngberg, explained that the Agency is the financing vehicle, and upon construction, the center will be leased to the County. They are obligated under the lease to budget and lease appropriate funds each year. The whole structure has been set up so the Agency will have minimal responsibilities. Discussion followed regarding the bids received to construct the center. Mr. Davis, representing the County of San Diego Capital Improvements Unit, told the Agency that bids are coming in slightly higher than anticipated (approximately $34 million). Those bids have been partially_acoommodated by capital outlay funds, and there should not be any problem in securing additional funds through the bond issue as structured. 617 179 -2- Redevelopment Agency Meeting June 7, 1979 Mr. McCarty added that a number of financing costs have been included and reserves are self-supporting. Therefore, sufficient funds will be available for the con- struction. Mr. Larsen, representing O'Melveny & Myers, explained that last minute changes to the sublease and ground lease documents are minor and in no way change the basic terms of the transaction. He assured Agency members that although they are faced with a mound of papers, it is a fairly routine transaction. RESOLUTIONS OFFERED Offered by Chairman Hyde, the reading of the texts was waived by unanimous consent of those present, passed and adopted by the following vote, to-wit: AYES: Member Hyde, Gillow, Cox, Egdahl Noes: None Absent: Member Scott ITEM NO. 3 - RESOLUTION NO. 178 - a. APPROVING THE NOTICE INVITING BIDS RESOLUTION NO. 179 - b. APPROVING THE (DRAFT) OFFICIAL STATEMENT RESOLUTION NO. 180 - c. FINDING BENEFIT TO TOWN CENTRE REDEVELOPMENT PROJECT RESOLUTION NO. 181 - d. APPROVING THE EMPLOYMENT OF STONE & YOUNGBERG (unanimous consent item) The above items are necessary to accommodate the South Bay Regional Center construc- tion schedule to meet the dictates of State statutes relative to the Agency Lease Revenue Bonds. RESOLUTIONS OFFERED Offered by Member Egdahl (items 3a, b, c, and d), the reading of the texts was waived by unanimous consent of those present, passed and adopted by the following vote, to- wit: AYES: Member Egdahl, Hyde, Gillow, Cox Noes: None Absent: Member Scott The Chairman adjourned the Redevelopment Agency meeting at 7:20 p.m. The Chairman (noting all Councilmen present with the exception of Counêilman Scott) opened the City Council meeting at 7:20 to consider: RESOLUTION NO. 9619 - APPROVING ISSUANCE OF $51,000,000 PRINCIPAL AMOUNT OF LEASE REVENUE BONDS RESOLUTION NO. 9620 - FINDING AND DETERMINING THE LEASING OF LAND AND CONSTRUCTION OF A COURTHOUSE AND RELATED PUBLIC IMPROVEMENTS WITHIN THE TOWN CENTRE REDEVELOPMENT PROJECT IS OF BENEFIT City Council ratification is required on these two items since, in some entities, the Agency is a separate body. Furthermore, the bonds carry the City's name and should be officially sanctioned in some way. 6/7/79 -3- Redevelopment Agency Meeting June 7, 1979 RESOLUTIONS OFFERED Offered by Councilman Egdahl (items a and b), the reading of the texts was waived by unanimous consent of those present, passed and adopted by the following vote, to-wit: AYES: Councilmen Egdahl, Hyde, Gillow, Cox Noes: None Absent: Councilman Scott The City Council meeting was adjourned at 7:22 p.m. The Redevelopment Agency meeting reconvened at 7:22 p.m. ITEM NO. 4 - RESOLUTION NO. 182 - ENTERING INTO AN OWNER PARTICIPATION AGREEMENT WITH THOMAS G. MONEY At the Redevelopment Agency meeting of May 3, staff was requested to investigate the installation of public improvements with the property owner as shown on the proposed Third Avenue Improvement Plans. The owner, Tom Money, is proposing to develop a 4,000 square foot commercial retail/office structure at the southeast corner of Third Avenue and Madrona Street. The applicant has agreed to pay for improvements fronting the subject property; subsequently, these funds would contribute toward the total cost of the improvements as shown on the Third Avenue Improvement Plan. Community Development Director Desrochers explained the reimbursement process to Agency members and read aloud the proposed addendum to Mr. Money's agreement offered by staff. It was noted that Mr. Money was present and agreeable to the proposed addendum. RESOLUTION OFFERED Offered by Member Egdahl, the reading of the texts was waived by unanimous consent of those present, passed and adopted by the following vote, to-wit: AYES: Member Egdahl, Hyde, Gillow, Cox Noes: None Absent: Member Scott MOTION TO ACCEPT PROPOSED ADDENDUM It was moved by Chairman Hyde, seconded by Member Egdahl and unanimously carried by those present to accept the proposed addendum to the Thomas G. Money Owner Partici- pation Agreement offered by staff. ITEM NO. 5 - REPORT: URBAN DEVELOPMENT ACTION GRANT STATUS As a result of the latest meeting with HUD officials (May 22, 1979), staff and the developer have been informed that the City's application is in good order and com- plete, and the only obstacle that must be overcome to obtain the grant is a firm financial commitment from the developer's financial institution. The City has been given until June 4, 1979 to produce the necessary financial commitment and a final decision is expected by July 1, 1979. 617 179 -4- Redevelopment Agency Meeting June 7, 1979 Mr. Desrochers indicated he is hopeful that the City will obtain the letter. Upon receipt of the letter, it may be appropriate to have a City representative deliver the correspondence directly to Washington. The director clarified that HUD has ex- tended the June 4 deadline for the letter to June 15. Special Counsel Reed explained that perhaps the best the developer can obtain is a broker letter. He emphasized the need for personal lobbying by the City to Washington would help in securing the grant. Chairman Hyde stated he would be happy to lead a delegation back to Washington. MOTION TO PLAN/FUND WASHINGTON TRIP It was moved by Member Egdahl, seconded by Chairman Hyde and unanimously carried by those present that a trip to Washington be planned and funded if necessary to secure the grant. ITEM NO. 6 - RESOLUTION - APPROVING AN AGREEMENT FOR MORTGAGE BANKING SERVICES WITH BA MORTGAGE AND INTERNATIONAL REALTY CORPORATION AND AUTHORIZING CHAIRMAN TO EXECUTE SAME Community Development Director Desrochers recommended this item be withdrawn due to the uncertainty of mortgage revenue bonds created by HR3712. With the Agency's concurrence, Chairman Hyde withdrew the subject item. ITEM NO. 7a - REPORT: RELOCATION OF TOWN CENTRE BUSINESSES Earlier this year, an offer to purchase had been made by Agency staff and Special Counsel to Harvey's Bakery owner Al Houtkamp. Mr. Houtkamp has not agreed to the offer and has requested assistance from the Chamber of Commerce. In this case, the Town Centre Relocation Appeals Board will be asked to review the situation. With regard to the Taco Express building, disputes have arisen as to improvements to the real property. According to State and Federal guidelines of the relocation policy, we may pay for all costs associated with moving and reinstallation of fix- tures and equipment. Community Development Director Desrochers informed Agency members that a Relocation Appeals Board meeting has been scheduled for June 13 at 9:00 a.m. to hear Mr. Houtkamp's appeal. Al Houtkamp, 3761 Bonita Glen Terrace, addressed the Agency at this time. He con- tended that the Agency's offer of approximately $12,000 for his equipment would not be a fair compensation. He stated it would probably cost $40,000. Member Cox requested staff enlighten the Agency on the relocation appeal process. In response to Member Cox's request, Special Counsel Reed explained that the tenant is entitled to certain relocation benefits. If he disagrees with the Agency's offer, he may appeal to the Relocation Appeals Board. The Board considers the appeal and formulates a recommendation that is presented to the Agency. If the Board feels 6/7/79 -5- Redevelopment Agency Meeting June 7, 1979 greater benefits are due as established by State law, they will recommend this to the Agency who has the final decision. Mr. Reed added that the Relocation Appeals Board will determine whether staff has applied the State guidelines correctly. ITEM NO. 7b - REPORT: INSTITUTION OF EMINENT DOMAIN PROCEEDINGS - HARVEY'S BAKERY The Relocation Appeals Board is presently scheduled to hear the appeal of Al Houtkamp on June 13, 1979. If, at that meeting, a satisfactory conclusion cannot be reached, then a hearing must be held to consider eminent domain proceedings. Due to time con- straints, Special Counsel will be instructed to prepare the necessary documents relative to the purchase of fixtures and equipment at the bakery in order to comply with the 15-day hearing notice. This hearing may be cancelled though if a settlement is reached. MOTION TO ACCEPT REPORTS It was moved by Member Egdahl, seconded by Chairman Hyde and unanimously carried by those present to accept the reports. (Items 7a and b) Member Gillow commented on the $2,000 amount mentioned in the agenda statement. Mr. Desrochers pointed out that figure cited by the press was completely inaccurate and that no dollar amounts have ever been mentioned to Mr. Valdez. ITEM NO. 8 - RESOLUTION NO. 183 - APPROVING AN AGREEMENT FOR SPECIAL LEGAL SERVICES WITH JONES, HALL, HILL & WHITE Bond counsel services are necessary in order to issue tax allocation bonds for the combined Town Centre/Bayfront projects. The firm of Jones, Hall, Hill & White is recommended because they have been working closely with staff with regard to the SB99 bond issue. Chairman Hyde asked for the Agency Attorney's advice regarding the legal involvement with th is fi rm. In this regard, Agency Attorney Lindberg offered his concurrence for the need of Bond Counsel and the subject contract. RESOLUTION OFFERED Offered by Member Egdahl, the reading of the text was waived by unanimous consent of those present, passed and adopted by the following vote, to-wit: AYES: Member Egdahl, Hyde, Gillow, Cox Noes: None Absent: Member Scott ITEM NO. 9 - REPORT: PROJECT FINANCING The combined Bayfront/Town Centre projects will be able to support a tax allocation bond issue with the enactment of Assembly Bill 405. Stone & Youngberg is presently structuring an issue that may be placed on the market by September. Upon the ap- proval of Chula Vista's LCP, implementation may be possible in the Bayfront and funds may be required. In addition, funds are presently needed for the Town Centre acqui- sition and relocation program. 617 179 -6- Redevelopment Agency Meeting June 7, 1979 Special Counsel Reed told the Agency that AB405 is on the Senate floor for its third reading, and there are some minor problems regarding a move bo/ Santa Fe Springs to be included in the Bill. ~10TlON TO ACCEPT REPORT It was moved by Member Egdahl, seconded by Member Cox and unanimously carried by those present to accept the report. ITEM NO. 10 - REPORT: MEMORIAL PARK PROPERTY At their May 16 meeting, the Project Area Committee took action supporting the reno- vation of the Taco Express building for use as a Senior Information & Referral Center as well as for promotions and information service. The committee also suggested a project sign be erected at the site on a temporary basis. The estimated cost of the sign is approximately $400. Member Cox questioned the need for a sign for such a small project. Mr. Desrochers explained the sign would be announcing the entire project and would also identify to outsiders that the area is part of a redevelopment project. He added that upon completion of renovation plans for the Senior Information & Referral Center, they would go through the same Design Review Board process as other projects. Member Cox stated he would vote against a motion in favor of a sign for this project. MOTION TO CONTINUE ITEM It was moved by Chairman Hyde, seconded by Member Egdahl and unanimously carried by those present to continue this item due to the fact that a 4/5th's vote is required to appropriate funds. ITEM NO. lla - REPORT: LOCAL COASTAL By conditional approval, the San Diego Coast Regional Commission has completed its review of Chula Vista's LCP (9-2 vote). Those conditions of approval include: con- sideration as an LCP; recreation and visitor serving facilities; diking, dredging and filling; public access; housing; water and marine resources; hazard areas; visual resources; public works (U.S. Army Corps of Engineer project); southern parcel; and inland parcel. Community Development Coordinator Boyd reported staff was pleased with the action taken by the regional commission in May although there are some conditions of ap- proval that are causing conflicts at staff level between Chula Vista and various wildlife agencies. Two of the main problems are: (1) Least Tern nesting area on the "0" Street fill, and (2) the creation of a compensation program with regard to the restoration or creation of replacement marsh. The compensation program must designate specific size, location and design for each replacement area and must be determined in cooperation with the U.S. Fish & Wildlife Service and the California Department of Fish & Game. 617 179 -7- Redevelopment Agency Meeting June 7, 1979 Mr. Boyd discussed the postponement of a decision regarding Gunpowder Point by the Regional Commission and a questionnaire distributed by the State Coastal Commission. The questionnaire posed questions in a biased and slanted manner and it is not anti- cipated that the response would support a development of Gunpowder Point or the con- struction of Tidelands Avenue through the marsh. The Coordinator emphasized the need for staff to be adequately prepared and to demon- strate a show of force to the State Commission. In order to do this, he suggested retaining the services of marine biologists to testify on our behalf. With this in mind, it was recommended that funds be authorized from the Bayfront Professional Services account. It was noted that $10,000 appropriated for professional services last year would only be used if the LCP were approved, therefore, the funds still remain in this account. Estimated cost to obtain the expert witness services is approximately $2,000. t10TlON TO CONTINUE ITEM It was moved by Chairman Hyde, seconded by Member Egdahl and unanimously carried by those present that this item be brought back at a Special Agency meeting on Tuesday, June 12, and that staff be directed to obtain the cost of expert witness services relative to the LCP State Coastal Commission hearings. Mr. Boyd encouraged as many Agency/Council members as possible to accompany staff to the State Coastal Commission hearings. Member Gillow commented on designating a portion of the LCP to energy and environ- mental commitment (i .e., residential, visitor facilities, and the use of solar energy) in order to display the City's environmental concerns. Community Development Coordinator Boyd indicated that solar energy has never been an issue in the LCP or one that State legislation considers, and the main environmental issues in Chula Vista's LCP relate strictly to endangered species. ITEM NO. lIb - STRATEGY REPORT Staff recommends conducting a strategy session prior to the State hearings if Council members can accompany staff. These sessions should take place as soon as possible. MOTION TO ACCEPT REPORTS It was moved by Member Egdahl, seconded by Member Gillow and unanimously carried by those present to accept the reports. (Items lla and b) ITEM NO. 12 - RESOLUTION NO. 184 - AUTHORIZING THE USE OF BAYFRONT PROJECT FUNDS IN THE TOWN CENTRE PROJECT Presently, $250,000 is available for utilization in the Bayfront project general fund. However, without an approved LCP, these funds are not required. The subject resolution will provide for unencumbered Bayfront monies to be loaned to the Town Centre project to meet certain fiscal obligations. 617 179 -8- Redevelopment Agency Meeting June 7, 1979 RESOLUTION OFFERED 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, Gillow, Cox, Egdahl Noes: None Absent: Member Scott ITEM NO. 13 - REPORT: AB405 A joint public hearing is contemplated for July 5 in order to amend both the Bayfront and Town Centre plans to merge them for fiscal purposes as provided by AB405. All concerned parties will be notified by certified mail/return receipt requested. REPORT ACCEPTED It was moved by Member Cox, seconded by Member Egdahl and unanimously carried by those present to accept the report. ITEM NO. 14 - REPORT: TOWN CENTRE II STATUS Staff reports that contact has been made with the Sears western region office. They have indicated a preference to a "phased linkage" approach. Sears' primary interest is in protecting their very highly regarded TBA store and gas station along Fifth Avenue. In addition, they wish to proceed cautiously and take a somewhat conservative stance. The Carter Hawley Hale Company is still interested in the expansion and re- modeling that would be prior to or coincide with the Bonita center opening. Although a timetable for the expansion has not been implemented, staff will continue to meet with interested parties and attempt to gain commitments relative to remodeling, linkage and major expansion. Chairman Hyde expressed his surprise at a newspaper report that Walker Scott has al- located 100,000 square feet for inclusion in the shopping center project. Mr. Desrochers indicated staff is still in the talking stages with the Walker Scott firm but has made no commitments on behalf of the City. MOTION TO ACCEPT REPORT It was moved by Chairman Hyde, seconded by Member Cox and unanimously carried by those present to accept the report. MOTION TO ADJOURN TO EXECUTIVE SESSION It was moved by Chairman Hyde, seconded by Member Cox and unanimously carried by those present that the Redevelopment Agency meeting be adjourned to executive session. RESULTS OF EXECUTIVE SESSION It was moved by Chairman Hyde, seconded by Member Egdahl and unanimously carried by those present to authorize the expenditure of $10,900 for the purchase of the Bates property. (This amount, when added to the court deposit of $50,600, will provide for a purchase price of $61,500.) 617179 -9- Redevelopment Agency Meeting June 7, 1979 MEMBERS' COMMENTS Chairman Hyde reiterated that the Special Agency meeting of June 12 will involve the request for additional funds for LCP professional service purposes. At this time, Member Egdahl officially tendered his resignation from the Redevelopment Agency effective July 15, 1979. Community Development Director Desrochers informed the Agency of Assistant Planner Welch's resignation from the City of Chula Vista. The Chairman acknowledged the Assistant Planner's outstanding contribution to the City. ADJ OURNt1ENT The meeting was adjourned at 8:15 p.m. to executive session and the special Agency meeting of June 12, 1979. , Paul G. 617179