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HomeMy WebLinkAboutrda min 1979/08/02 MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA Thursday - 7:00 p.m. August 2, 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 Chairman Pro Tempore Gillow; Members Cox, McCandliss, Scott MEMBERS EXCUSED Chairman Hyde STAFF PRESENT Executive Director Cole, Special Counsel Reed, Community Development Director Desrochers, Community Development Coordinator Boyd, Administrative Analyst Sanseverino ALSO PRESENT Gene Hargraves ITEM NO. 1 - APPROVAL OF MINUTES It was moved by Chairman Pro Tempore Gillow, seconded by Member Cox and unanimously carried by those present to approve the minutes of July 5 and 10, 1979 as mailed. (Members Cox and McCandliss abstained; minutes of June 28 were not approved due to Members Cox's and McCandliss' absence from that meeting.) ITEM NO.2 - RESOLUTION NO. 192 - ADOPTING REDEVELOPMENT AGENCY BUDGET FOR FISCAL YEAR 1979-80 According to State law, the Redevelopment Agency must formally approve its administrative budget each year. By previous action on June 28, 1979, the City Council adopted the 1979-1980 budget durin9 budget sessions (Resolution No. 9664). It is also important to note staff will be negotiating an agreement with Carroll Pendleton & Associates regarding procedures relative to the merger of Bayfront and Town Centre redevelopment projects. This agreement should be available for Agency consideration at the September meeting. Community Development Director Desrochers explained that the $80,000 appropriated for the focus area is broken down to provide funds for title, acquisition costs, legal counsel (litigation) and fees associated with relocation and acquisition services. RESOLUTION OFFERED Offered by Member Cox, the reading of the text was waived by unanimous consent of those present, passed and adopted by the following vote, to wit: AYES: Members Cox, Gillow, McCandliss, Scott Noes: None Absent: Chairman Hyde ITEM NO. 3 - RESOLUTION NO. 193 - ENTERING INTO AN OWNER PARTICIPATION AGREEMENT WITH PACIFIC TELEPHONE COMPANY Plans for remodeling of the existing communication center at 420 Third Avenue have been submitted by the Pacific Telephone Company. The Design Review Board recommended approval of the project at their July 18, 1979 meeting. The director indicated the rendering was available for members' review. 8/2/79 -2- Redevelopment Agency Meeting August 2, 1979 RESOLUTION OFFERED 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: Members Scott, Cox, Gillow, McCandliss Noes: None Absent: Chai rman Hyde ITEM NO. 4 - REPORT: STATUS OF FOCUS AREA With regard to the condominium project, the partnership is attempting to secure a construc- tion loan on two fronts: conventional loan and SB99-type loan in conjunction with a bond sale. Meanwhile, the House of Representatives will announce transition rules for entities to be "grandfathered" into proposed legislation from HR3712. The City Council accepted the tentative map for condominium construction two months ago provided all conditions would be met in 60 days. Due to the lack of a recorded construc- tion loan, the conditions have not been met and the tentative map must be resubmitted. A savings and loan association has completed an appraisal for the commercial construction relative to Chula Vista's UDAG application. If the financial institution is able to re- spond in the desired manner, staff will attend a meeting in San Francisco on August 13 in thi s rega rd. Community Development Director Desrochers stated the developer has secured financing for condominium construction. Special Counsel Reed remarked that as of mid-afternoon, all involved were convinced the City can proceed with a mort9age revenue bond issue and requested the Chairman adjourn tonight's meeting to Tuesday, August 7. MOTION TO ACCEPT REPORT It was moved by Chairman Pro Tempore Gillow, seconded by Member Cox and unanimously carried by those present to accept the report. ITEM NO. 5 - REPORT: PARKING STUDY STATUS At the last Project Area Committee meeting, members voted for a formula that would assess 25% of the total cost for new or expanded buildings. (This includes the 1,000 sq. ft. exemption previously voted upon.) The parking study, upon further review by the Town Centre Business and Professional Association and the Parking Place Commission, will be resubmitted to the Redevelopment Agency in September. ~10TION TO ACCEPT REPORT It was moved by Member Scott, seconded by Member Cox and unanimously carried by those present to accept the report. ITEM NO. 6 - REPORT: RELOCATION Agency members were provided with the Chamber of Commerce's report on relocation policies as well as staff's analysis of the report. 8/2/79 -3- Redevelopment Agency Meeting August 2, 1979 In a related matter, Harvey's Bakery has not totally complied with the recommendations of the Relocation Appeals Board. As soon as the data is available, another appeals board meeting will be called. Mr. Desrochers commented the Chamber of Commerce did an excellent job in preparing their relocation report. He suggested the Agency terminate its present relocation services arrangements and seek new proposals. Also, the director expressed concern with the period of time that has passed since Mr. Houtkamp had been requested by the Relocation Appeals Board to comply with certain speèifications. In addition, Mr. Desrochers stated property between Third and C streets will go into escrow soon. The property is being purchased by Peter's Home & Garden Supply, is zoned commercial/office; therefore, the business will have to apply for a conditional use permit. Mr. Desrochers informed the Agency that there may be problems with relocating additional businesses since there are no more funds available. Stone & Youngberg recommends bonds be sold by November,this will not only alleviate this problem, but allow acquisition of the remaining focus area properties. MOTION TO ACCEPT REPORT It was moved by Member Cox, seconded by Chairman Pro Tempore Gillow and unanimously carried by those present to accept staff recommendations, thank the Chamber of Commerce and follow through with the remaining recommendations. ITEM NO. 7 - a. RESOLUTION NO. 194 - APPROPRIATING FUNDS FOR CONSULTANT SERVICES RELATIVE TO COASTAL COMMISSION REVIEW OF LCP b. REPORT: LOCAL COASTAL PROGRAM UPDATE On July 17, the City Council concurred with the recommendation to procure the services of consultants for the preparation of an extensive legal brief relative to our LCP. At that time, funds of up to $5,000 were requested for appropriation. Since these are Agency funds, the Redevelopment Agency must now take proper action. The State Coastal Commission will consider Chula Vista's LCP on August 15 in San Diego. Community Development Coordinator Boyd reiterated that Chula Vista's LCP will be heard by the State Coastal Commission at 9:00 a.m. on Wednesday, August 15. On Monday, August 13, a tour of the Bayfront will commence at 1:30 p.m. with a reception following at the U.S. Grant Hotel at 6:00 p.m. Agency members were encouraged to attend all functions to show their support of the plan. RESOLUTION OFFERED 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: Members Scott, Cox, Gillow, McCandliss Noes: None Absent: Chai rman Hyde 8/2/79 -4- Redevelopment Agency Meeting August 2, 1979 ITEM NO. 8 - PUBLIC HEARING - DISPOSITION AND DEVELOPMENT AGREEMENT WITH ORANGE DEVELOPMENT AND INVESTMENT COMPANY a. RESOLUTION NO. 195 - AUTHORIZING CHAIRMAN TO EXECUTE DISPOSITION AND DEVELOPMENT AGREEMENT WITH ORANGE DEVELOPMENT AND INVESTMENT COMPANY An Exclusive Negotiation A9reement was entered into between the Redevelopment Agency and Orange Development & Investment Company on May 15, 1978. The agreement pertained to the development of 5.157 acres in the area of Bay Boulevard, "E" Street and 'IF" Street. The subject Disposition and Development Agreement attempts to respond to the criteria established in the Exclusive Negotiation Agreement regarding: construction of a 100-unit motel and three restaurants; sale of property for less than appraised value; curb, gutter, streetlighting and landscaping provided by developer; first right of refusal; and, Planning Commission review. PUBLIC HEARING OPENED/CLOSED This being the time and place as advertised, the public hearing was declared opened. There being no public testimony, the public hearing was declared closed. Community Development Director Desrochers acknowledged the presence of the developer, Mr. Gene Hargraves. Regarding the Disposition and Development Agreement, on page 27, Section 54, paragraph 2, sentence 2, Mr. Des rochers stated the correct word shoul d be "ri ght" instead of "courtesy." He explained this mistake was pointed out by Mr. Hargraves and special counsel concurs with the correction. Member Scott expressed concern that this oversight was not caught sooner and that legal counsel did not have complete involvement with the agreement. Special Counsel Reed explained that he was involved in day-to-day, intimate contact with staff as well as the developer in negotiation of the contract. He noted that the previous Disposition and Development Agreement prepared for the Zogob development, and adopted by the Agency, was the product of a two to three month effort on his part. Executive Director Cole discussed the procedure City departments followed in putting together various agreements. In this regard, Member Scott pointed out that the Disposition and Development Agreement in question is of much greater importance than day-to-day engineering contracts. Mr. Desrochers discussed exhibits I through IV as follows: 1) Exhibit I, Parcel E, should be labeled "Kaul" since this parcel is mentioned in the body of the agreement. 2) The agency acquired parcel (Wynn Williams) will be at least partially landscaped. 3) Exhibit II - Master Layout 8/2/79 -5- Redevelopment Agency Meeting August 2, 1979 4) Exhibit III - Schedule of Performance. Staff is attempting to be realistic by giving ranges of dates for completion of certain events. 5) Exhibit IV - Method of Financing. Agency may act on the item at a later date when the financing is revealed. (The director requested Mr. Hargraves explain this exhibit to members.) Mr. Desrochers remarked he is very well assured the City will have a development of well-upgraded restaurants than what was originally anticipated. In response to Chairman Pro Tempore Gillow's questions, Mr. Desrochers commented staff does not foresee problems with Coastal Commission approval. The project will go before the State Coastal Commission only if substantial issues are involved. Mr. Gene Hargraves, Orange Development & Investment Company, addressed the Agency at this time. He indicated the item Member Scott alluded to regarding "right of first refusal" is a very important one to his firm, and he expressed his firm's wish that the Agency and staff recognize their interest in the Bayfront Redevelopment project. With regard to financing, Mr. Hargraves explained the difficulty they have had in arranging permanent long-term financing. As soon as the lease agreements are finalized, the firm will be able to put long-term financing in place. The developer described the type of restaurants to be constructed in the redevelopment area. Discussion ensued regarding right of first refusal. Special Counsel Reed defined the right as an expression of good faith. Community Development Director Desrochers recommended that Exhibit IV be submitted to the Agency at the same time the developer is obligated to reveal his partners (in September). In response to Member Scott's question that the resolution be passed contingent upon approval of Exhibit IV, Special Counsel Reed indicated this could be done but he pointed out Exhibit IV is almost entirely informational and most of the financing will be done by the private sector. RESOLUTION OFFERED Offered by Member Cox, the reading of the text (as amended) was waived by unanimous consent of those present, passed and adopted by the following vote, to wit: AYES: Members Cox, Gillow, McCandliss, Scott Noes: None Absent: Cha i rman Hyde MOTION TO CHANGE WORDING It was moved by Member Scott, seconded by Member Cox and unanimously carried by those present that the word "right" be inserted for "courtesy" on page 27, Section 54, paragraph 2 of the Disposition and Develoþment Agreement. MOTION FOR DEVELOPER TO SUBMIT METHOD OF FINANCING It was moved by Member Cox, seconded by Member Gillow and unanimously carried by those present that included with the Schedule of Performance on the August 17 date, the developer also present the method of financing at the same time his partners are revealed. 8/2/79 -6- Redevelopment Agency Meeting August 2, 1979 ITEM NO. 9 - REPORT: STREET & SONS, ATCHISON TOPEKA & SANTA FE/BAY BOULEVARD LAND Financing for construction and permanent mortgage has been secured by Mr. Street for his Bay Boulevard/"E" Street complex. November 15 has been targeted for a construction starting date. At staff's urging, Santa Fe Land Improvement Company is interested in disposing of its 17 acres of undeveloped 1 and near "J" Street and Bay Bl vd. A base pri ce of $2,700,000 is being offered as a result of an appraisal on the land. MOTION TO ACCEPT REPORT It was moved by Chairman Pro Tempore Gillow and seconded by Member McCandliss to accept the report. The motion passed 3-1 with Member Scott voting "no". ITEM NO. 10 - RESOLUTION - ENTERING INTO AN OWNER PARTICIPATION AGREEMENT WITH HARDING C. CAMPBELL AT 350 BAY BOULEVARD The owner of property at 350 Bay Boulevard has submitted plans to construct a steel ware- house building. Mr. Harding Campbell's proposal (consistent with the Bayfront Redevelop- ment Plan land use underlying zone, and Chula Vista's General Plan) will include improve- ments such as landscaping and other public improvements. Member Scott opposed the proposal stating he would be in opposition to entering into an agreement if another steel building was constructed in that area. MOTION TO CONTINUE ITEM TO SEPTEMBER It was moved by Member Cox, seconded by Chairman Pro Tempore Gillow and unanimously carried by those present to continue the item to the September meeting. Member Cox noted that building plans were not available as indicated in staff's report. Member Scott suggested that the Council swing by the subject area on their next tour. ITEM NO. 11 - REPORT: STATUS OF PROJECT II Improvement plans for the existing shopping center have been obtained from the principles involved. The Design Review Board will review the plans later this month with an Owner Participation Agreement expected for Agency review in September. MOTION TO ACCEPT REPORT It was moved by Member Scott, seconded by Member Cox and unanimously carried by those present to accept the report. ITEM NO.12 - RESOLUTION NO. 196 - EXPRESSING THE AGENCY'S APPRECIATION TO ASSEMBLYMAN WADlE P. DEDDEH Because of Assemblyman Deddeh's staunch support and assistance in the passage of AB405, the Agency is asked to convey its appreciation by way of adoption of the subject reso I uti on. 8/2/79 -7- Redevelopment Agency Meeting August 2, 1979 It was noted that an error had been made in the body of the resolution. Assemblyman Deddeh represents the 80th Assembly District. RESOLUTION OFFERED Offered by Member Cox, the reading of the text (as amended) was waived by unanimous consent of those present, passed and adopted by the following vote, to wit: AYES: Member Cox, Gillow, McCandliss, Scott Noes: None Absent: Chai rman Hyde MEMBERS' COMMENTS Chairman Pro Tempore Gillow welcomed Member McCandliss to her first Redevelopment Agency meeti ng. Executive Director Cole mentioned that the Civic Center Annex building will be demolished beginning Monday, August 6. ADJOURNMENT The meeting was adjourned at 8:07 p.m. to the Agency meeting of Tuesday, August 7 following the regularly scheduled City Council meeting. ----., ) / ~ Paul G. 8/2/79