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HomeMy WebLinkAboutrda min 1979/09/06 MINUTES OF A REGCLAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday - 7:00 p.m. September 6, 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 Hyde, Members Cox, Gillow, McCandliss, Scott Members Absent None STAFF PRESENT Executive Director Cole, Special Counsel Reed, Community Development Director Desrochers, Community Development Coordinator Boyd, Development Services Administrator Robens, Administrative Analyst Sanseverino ALSO PRESENT Terry McCarty, Andrew Hall, Michael McCann, Richard Zogob, Michael Cowett, T. David Eyres, Samuel Gaines, Phil Poindexter, Jim Mickartz, Jerry Prior, Jim Hobel ITEM NO. 1 - APPROVAL OF MINUTES It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried to approve the minutes of June 28, August 2, 7, 14 and 21, 1979 as mailed. (Member McCandliss abstained on June 28 minutes; Chairman Hyde abstained on August 2 and 7 minutes; Member Gillow abstained on August 14 minutes; Member Cox abstained on August 21 minutes.) ITEM NO.2 - RESOLUTION NO. 199 - AMENDING THE FINANCIAL CONSULTING CONTRACT WITH STONE &. YOUNGBERG MUNICIPAL FINANCING CONSULTANTS, INC. In September of 1978 the Redevelopment Agency modified its contract with Stone & Youngberg to include duties associated with .the sale of Mortgage Revenue Bonds. Since that time, the Agency has also contracted with Miller & Schroeder in ~he same respect therefore significantly reducing the responsibility of Stone & Youngberg which would now call for an amendment.to the latter's contract. Community Development Director Desroè~~rs stated that the duties of the financial consultant will be significantly narrowed sinci':Miller & Schroeder will be the underwri ter. TERRY McCARTY STONE & YOUNGBERG ." " -:c. One California Street San Francisco, CA . Mr. McCarty reiterated the director's comments and remarked tha~ his firm will be " involved in the review of the bond issue from the Agency's perspective. Member Scott asked how the $55,000 contract amendment amount was arrived at. In answer to Member Scott's question, Special Counsel Reed explained how the amount was renegotiated--a review of the firm's previous work was made to deter- mine how a financing package was assembled, analysis of time involved with regard 9/6/79 ^ M" _.,____,,_.__ ..._~."- _._---,,-_._--_.,--_._~------~-_.--.._----~..~~._------..-----,.----. -2- Redevelopment Agency Meeting September 6, 1979 to issuance of bonds, and the nature of the firm's limited liability due to their role in the bond sale proceedings. These factors paid an important role in determin- ing the consultant's amended fee. A general discussion followed regarding the amended figure. Staff stated that in actuality the bondholders themselves would pay the consulting fee and ultimately become the beneficiaries. RESOLUTION OFFERED Offered by Chairman Hyde, the reading of the text was waived by unanimous consent, passed and adopted by the following vote, to-wit: AYES: Members Hyde, McCandliss, Scott, Cox, Gillow Noes: None Absent: None ITEMS NO.3, 4, 5 RESOLUTION NO. 200 - AMENDING RESOLUTION NO. 164 TO INCREASE THE AUTHORIZED ISSUE OF RESIDENTIAL MORTGAGE REVENUE BONDS NOT TO EXCEED $30,000,000 IN ORDER TO FINANCE THE TOTAL RESIDENTIAL PROJECT The $16 million bond issue amount previously adopted by the Redevelopment Agency was for the first phase and included only estimated construction costs. The amended resolution increasing the limit to $30 million will provide for Centre City Associates' 205 units and Eyres/Gaines' 16 units and, therefore, will set the upper limits of the issue. RESOLUTION NO. 201 - AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF $11,350,000 PRINCIPAL AMOUNT OF CONSTRUCTION LOAN NOTES PURSUANT HERETO AND TO A TRUST INDENTURE (SECURITY AGREEMENT) WHICH IS HEREBY APPROVED AND AUTHORIZED TO BE EXECUTED AND DELIVERED The issuance of $11 million in construction loan notes provides construction financing for the developer for redevelopment projects in conjunction with an SB99 bond sale. RESOLUTION NO. 202 - APPROVING RULES AND REGULATIONS RELATING ¡O ITS RESIDENTIAL CONSTRUCTION AND MORTGAGE FIN NCING PROGRAM Enactment of this resolution will provide the rules and regulations relative to bond issuance, as well as establishing rules and regulations for the general ad- ministration of the program. Community Development Director Desrochers requested that the Agency consider items 3, 4 and 5 simultaneously. He informed members that representatives from Centre City Associates, Stone & Youngberg, Jones Hall Hill & White, and Miller & Schroeder were present to speak on the issues. 9/6/79 _______ _____ ... .._._..._..__ .__.M._____....__·_ -3- Redevelopment Agency Meeting September 6, 1979 MICHAEL McCANN MILLER & SCHROEDER 220 Sansome Street San Francisco, CA Mr. McCann stated he had spoken to Agency members previously on August 21 regarding his firm's employment. He noted that the documents (resolutions 200, 201 and 202) submitted to the Agency were in fairly rough form and minor modifications would be made in the future. He indicated that Mr. McCarty would be able to further discuss those changes. At this time, Mr. McCann discussed exhibits A, Band C: construction financing, SB99 issue, and bond issue proceeds and borrower cost. (The exhibits were on dis- play for members' review.) In answer to Chairman Hyde's query about mortgage reserves, Mr. McCann explained that any surplus funds will be utilized by the Agency for any purpose deemed ap- propri ate. ANDREW HALL JONES HALL HILL & WHITE 50 California Street San Francisco, CA Mr. Hall noted that on March 8, 1979 the Agency adopted a resolution pertaining to the authorization of issuance of residential mortgage revenue bonds. Unfortunately, legislative action has slowed the process (AB305). He briefly discussed SB99 relative to construction lending and AB405. It was observed that Chula Vista is the first California city to issue bonds of this sort. Mr. Hall described each resolution and stated that item #4 is the key resolution in terms of financing. He continued by explaining those financing mechanics in detail. With regard to the City Council resolution, Mr. Hall remarked that in accordance with Redevelopment Law, the City Council must approve the Agency's action in this manner. Member Cox questioned the selection of First National Bank of St. Paul. In response, Mr. McCann explained that the selection was not made in a competitive manner, but rather based on Chula Vista's creditability. Construction lending is the riskiest part of financing and First National Bank is willing to take this risk. RICHARD G. ZOGOB CENTRE CITY ASSOCIATES, LTD. 315 Fourth Avenue Chula Vista, CA Mr. Zogob commented he feels satisfied that this is the right direction for the City and developer to take, and he thanked Agency staff for their cooperation and support. With the enactment of the resolutions he indicated he will be able to break ground on Monday, September 17, 1979 and now begin to plan Phase II. 9/6/79 _.___.._......_"n. __ _ ,..._.._________M..._.._.m·..__._··__n_____. -4- Redevelopment Agency Meeting September 6, 1979 T. DAV ID EYRES TOWN CENTRE TOWNHOMES Mr. Eyres expressed his delight in receiving financing for his project; he stated groundbreaking will be next Monday (September 10, 1979). RESOLUTIONS OFFERED Offered by Chairman Hyde, the reading of the texts was waived by unanimous consent, passed and adopted by the following vote, to-wit: AYES: Members Hyde, McCandliss, Scott, Cox, Gillow Noes: None Absent: None AGENCY MEETING ADJOURNED/RECONVENED Chairman Hyde adjourned the meeting at 7:50 p.m. The meeting reconvened at 7:52 p.m. ITEM NO. 6 - STATUS REPORT: TAX ALLOCATION BOND SALE Financial and bond consultants are formulating the necessary data for the subject bond sale. The net proceeds anticipated at $6,200,000 will be divided between the two redevelopment projects and for the furtherance of low and moderate-income residential programs. Consultants on the issue recommend an early October bond sale date. Mr. Terry McCarty (Stone & Youngberg) discussed the merger of the Town Centre and Bayfront projects that took place earlier this year. He indicated an October 4 bond sale; Andy Hall (Jones Hall Hill & White) will prepare the legal documents and the official statement will be prepared by Stone & Youngberg. The documents presented to the Agency tonight should be in final form by September 20. MOTION TO ACCEPT REPORT AND ADJOURN TO SPECIAL AGENCY MEETING It was moved by Chairman Hyde, seconded by Member Cox and unanimously carried to accept the report and consider the bond resolutions at the September 18 adjourned Agency meeti ng. ITEM NO. 7 - REPORT: FINANCING PLAN TO PROVIDE ADDITIONAL OFF-STREET PARKING IN THE TOWN CENTRE In July staff requested this item be continued to permit various civic groups additional time to respond. Community Development Coordinator Boyd told the Agency that the civic groups are recommending the financing plan as adopted by the Project Area Committee. (This committee recommends the ~ in-lieu fee with no exemptions.) 9/6/79 0_'_'" _n..""'__ ..__." _"_"__. _ _. _____..._____..M.__..._."_________ -5- Redevelopment Agency Meeting September 6, 1979 In res'ponse to Member Scott's question on the committee's reason for changing from the 1/3 to ~ fee, the director explained that the 1/3 formula was more complicated due to exemptions. On the other hand, the ~ formula offered no exemptions. Chairman Hyde mentioned that he attended several Project Area Committee meetings when this subject was discussed. Mainly, the committee was concerned that the higher the fees, the more discouraged small business operators would become. MOTION TO ACCEPT REPORT It was moved by Member Scott, seconded by Member Gillow and unanimously carried to accept the report. ITEM NO. 8 - REPORT: UDAG STATUS The Senior Loan Committee of San Diego Federal has processed the loan application for the Town Centre I project commercial phase. Thatinstitution's Board of Director's is the next and final step toward a commitment letter for UDAG. MOTION TO ACCEPT REPORT It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried to accept the report. UNANIMOUS CONSENT ITEM - RESOLUTION NO. 203 - AUTHORIZING REIMBURSEMENT OF CENTRE CITY ASSOCIATES FOR TAXES ADVANCED IN THE AMOUNT OF $2,311.36 Mr. Desrochers reported that in order to transfer title of the residential portion of the Focus Area development, all taxes had to be satisfied in accordance with the dictates of the County Tax Collector. On the date of title transfer of the property, the Agency had resolved this problem through the County counsel's office. However, this was notin accordance with the tax collector's procedures. It is therefore necessary to make payment to the tax collector and seek reimbursement through the County counsel's office. This process has already been requested. RESOLUTION OFFERED Offered by Member Scott, the reading of the text was waived by unanimous consent, passed and adopted by the followi~g vote, to-wit: AYES: Members Scott, Cox, Gillow, Hyde, McCandliss Noes: None Absent: None ITEM NO. 9 - REPORT: CHULA VISTA LOCAL COASTAL PROGRAM On August 15, the State Coastal Commission held its first hearing on Chula Vista's LCP. Citizens and officials of Chula Vsita as well as representatives of local civic groups, and Assemblyman Deddeh and Supervisor Hamilton's offices were in attendance. At that meeting, the Commission voted to support their staff's recom- mendations declaring five substantial issues within the plan. 9/6/79 -6- ~edevelopment Agency Meeting September 6, 1979 Community Development Coordinator Boyd commented that he and the director attended the State Commission meeting on September 4 and were very discouraged. The final hearing before the Commission will be on September 18. Mr. Boyd indicated action on that date would probably not be to the City's liking. MOTION TO ACCEPT REPORT It was moved by Member Cox, seconded by Chairman Hyde and unanimously carried to accept the report. ITEM NO. 10 - REPORT: SANTA FE/BAY BOULEVARD PROPERTY Santa Fe has solicited proposals for the sale and development of 17 acres on Bay Boulevard in the J Street vicinity. Mr. Desrochers indicated the real estate manager of Santa Fe would introduce the firm selected to develop the 17 acres. PHIL POINDEXTER SANTA FE LAND IMPROVEMENT CO. One Santa Fe Pl aza 5200 East Sheila Street Los Angeles, CA Mr. Poindexter discussed the selected firm's background. He remarked that the property in question has been held off the market until they felt it was ready to be developed. At present, the firms are operating on a handshake basis but document signing will probably be next week. At this time, Mr. Poindexter introduced the developer. DENNIS FRENCH EQUITY DIRECTIONS, INC. 2152 DuPont Drive, Suite 217 Irvine, CA Mr. Dennis French stated his firm's background consists of freeway industrial and commercial development involving economic and environmental issues. JIM MICKARTZ ARCHITECTS ORANGE 144 N. Orange Street Ora nge, CA Mr. Jim Mickartz, project architect, gave a brief presentation with accompanying slides of various developments in Garden Grove, California that his firm has been associated with (i.e., office buildings, restaurants, shopping centers). MOTION TO ACCEPT REPORT It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried to accept the report. 9/6/79 ,,-..-. ..--.....-.-.....-- .,,------ -7- Redevelopment Agency Meeting September 6, 1979 ITEM NO. 11 - REPORT: DEVELOPMENT OF RAMADA INN COMPLEX Bay Boulevard Corporation has submitted their application to the Coast Regional Commission for the development of a Ramada Inn, restaurant and RV park at the north- east corner of Bay Boulevard and E Street. Groundbreaking is targeted for November of this year. Community Development Coordinator Boyd remarked that he met with the developer (Joe Street) and the Coastal Commission this date. Mr. Jim Hobel representing Supervisor Hamilton's office, spoke about the Coastal Commission staff making requirements that construction be held off until after the ra i ny season. Community Development Director Desrochers noted that the site elevations were avail- able for members' review. MOTION TO ACCEPT REPORT It was moved by Member Scott, seconded by Member McCandliss and unanimously carried to accept the report. ITEM NO. 12 - REPORT: DISCLOSURE OF PARTNERS AND FINANCING ARRANGEMENTS - ORANGE DEVELOPMENT INVESTMENT COMPANY In accordance with the Disposition & Development Agreement, Orange Development & Investment Company offers the following information relative to partnership and financing: Partners - DAON Corp./Financing - Lloyd's Bank of California. With reference to the Schedule of Performance, due to the desires of the El Torito restaurant to increase their structure's size, there is a delay in the preparation of the plans. MOTION TO ACCEPT REPORT It was moved by Member Scott, seconded by Member Cox and unanimously carried to accept the report. ITEM NO. 13 - RESOLUTION NO. 204 - APPROVING PLANS TO RENOVATE CERTAIN PORTIONS OF THE CHULA VISTA SHOPPING CENTER As a result of the Agency's insistence to upgrade their present facilities, the shopping center's owners have submitted plans to staff. The mall plans were con- sidered by the Design Review Board on August 21 and were approved on the condition that four major items be resolved. Three of those items have been taken care of in accordance with the Board's wishes and the one remaining issue involves the in- stallation of a clock tower at the west end of the mall. Since the improvements alluded to are of a maintenance nature, an owner participation agreement will not be requi red. 9/6/79 --....--_.._---~.._-_....._-_... -8- Redevelopment Agency Meeting September 6, 1979 JOHN HEALEY CARTER HAWLEY HALE PROPERTIES, INC. 550 South Flower Los Angeles, CA Mr. John Healey requested the resolution be approved tonight with amendments. The controversy involves the clock tower--the shopping center owners would like the latitude of being able to substitute an alternative to the clock (bell tower). He stated it was not their intention to present the clock as a mall feature at all but through a slip up it had not been eliminated. MOTION TO ACCEPT REPORT Arm ~mDIFY CONDITION NO.4 It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried to aCQep~ the report and that condition #4 be modified for another mall feature other than the clock and that the feature be sent to the Design Review Board for review and approval. Mr. Jerry Prior, Chairman of the Design Review Board, expressed his dismay with the alternate suggestion of a bell tower and the lack of specificity on the part of Carter Hawley Hale in their plans. ITEM NO. 14 - REPORT: PROCESSING OF OWNER PARTICIPATION AGREEMENTS Because of some confusion that arose at the last Agency meeting concerning pro- cessing of owner participation agreements, the procedure was reviewed by Agency s ta ff . A sequence of events was outlined for members' review. MOTION TO ACCEPT REPORT It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried to accept the report. ITEM NO. 15 - RESOLUTION NO. 205 - APPROVING AGREEMENT WITH CARROLL & PENDLETON, ASSOCIATES FOR AUDIT SERVICES Carroll & Pendleton, Associates has performed audit services for the Agency since its inception. They have submitted a proposal to conduct a financial audit for fiscal year 79-80. The total cost will not exceed $2,600. RESOLUTION OFFERED Offered by Member Scott, the reading of the text was waived by unanimous consent, passed and adopted by the following vote, to-wit: AYES: Members Scott, Cox, Gillow, Hyde, McCandliss Noes: None Absent: None 9/6/79 .... __"n"___'__'_~__"_'m~'~_'__'__'__ -9- Redevelopment Agency Meeting September 6, 1979 ITEM NO. 16 - REPORT: TOWN CENTRE PLANNING ENFORCEMENT POLICY As the review board for the Town Centre Redevelopment Project, the Design Review Board is responsible for sound townscape planning and design for projects under- taken in this area. In the "Towns cape Planning Enforcement" policy, the Board has reaffirmed its position relative to design enforcement. The action is being taken due to Design Review Board members' concern that projects undertaken in that area are not being developed according to the Board's conditions of approval. MOTION TO ACCEPT REPORT It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried to accept the report. MEMBERS' COMMENTS Member Gillow commented on the progress of Town Centre II and asked if it would be appropriate to hold a Council luncheon/dinner with those organizations who are planning to locate in the area. MOTION It was moved by Member Scott, seconded by Member Cox and unanimously carried that staff look into the possibility of hosting those organizations planning to develop in the area in order to discuss matters of importance and interest. Member McCandliss suggested staff be prepared to explain the breakdown of fees or rates, as to how they arise, in future dealings of the Agency. Chairman Hyde discussed the problems with the enforcement of existing ordinances relative to signs, parking, and general appearance and he expressed concern that the Community Development department is not adequately staffed to handle such problems as they arise. He suggested these matters be looked into. MOTION It was moved by Chairman Hyde, seconded by Member Scott and unanimously carried that the Executive Director be asked to look into ways and means by which policies relating to standards of zoning and code requirements in redevelopment areas be investigated to procure effective enforcement. Discussion followed on whether the subject enforcement was a City Council matter. The Chairman of the Design Review Board, Jerry Prior, indicated the subject was brought up at his insistence due to the lack of "follow through" and compliance with Design Review Board conditions of approval. Member Scott suggested these problems be observed on their Saturday City Council tour. 9/6179 '0 - ...........-......, ..------.--.-- -10- Redevelopment Agency Meeting September 6, 1979 Executive Director Cole reported on a memo regarding $100 million in funds generated by the Agency. ADJOURNMENT The meeting was adjourned at 8:42 p.m. to the special Agency meeting of September 11, 1979. 9/6/79 -"'-.---.... .- 0" .,"" -_..._--_...__......_------~ ----,-~,-".