Loading...
HomeMy WebLinkAboutrda min 1979/10/04 MINUTES OF A REGULAR MEETING OF THE REOEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA Thursday - 7:00 p.m. October 4, 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: MEt1BERS PRESENT Chairman Hyde; Members Gillow, Cox, McCandliss, Scott Members Absent None STAFF PRESENT Executive Director Cole, Community Development Director Desrochers, Special Counsel Reed, Development Services Administrator Robens, Finance Director Grant, Acting Community Development Coordinator Sanseverino, Adminis- trative Analyst Pritzlaff ALSO PRESENT Alan Miller, Charles Adams, Wayne Carroll, Wes Ashby, Jerry Lipp, Jerry Prior, Alfredo Araiza ITEM NO. 1 - APPROVAL OF MINUTES It was moved by Chairman Hyde, seconded by Member Cox and unanimously carried to approve the minutes of September 6 and 18, 1979 as mailed. ITEM NO.2 - RESOLUTION NO. 208 - SELLING $7,150,000 PRINCIPAL AMOUNT OF REDEVELOPMENT AGENCY BAY FRONT/TOWN CENTRE REDEVELOPMENT PROJECTS 1979 TAX ALLOCATION BONDS AND RATIFYING OFFICIAL STATEMENT Due to the passage of SB66 and the impending Gann initiative, the sale of bonds has become more difficult. Community Development Di rector Desrochers reported that two bids were received this morning. Representatives from Stone & Youngberg are available with details of the bond sale. The director distributed completed copies of Agency Resolution 208 to members. He commented that bond counsel did an excellent job with regard to the entire bond sale. ALAN MILLER STONE & YOUNGBERG One California Street . San Franci sco, CA Mr. Miller gave a brief background of the bond market which influenced the rating by Moody's Investors and Standard & Poor's Corporation. Moody's rated the bonds "Baa" while Standard & Poor's declined to rate. Bond counsel indicated a major factor that has complicated the tax allocation is the impending Gann initiative. In this regard, he advised that now is a good time to sell the bonds since there will be a great uncertainty after Gann. He added that, notwithstanding today's market conditions, we have had a very competitive sale. At this time, Mr. Miller announced the successful bidder for the 1979 Town Centre/ Bayfront Tax Allocation Bonds as Goldman & Sachs Company with an effective inter- 10/4/79 --..-.,..---.,.---.-..-. .----....- --_...._-.....~_..----.- -2- Redevelopment Agency Meeting October 4, 1979 est rate of 8.0524%. The second highest bidder was Merrill Lynch with an effective interest rate of 8.0686%. He recommended the Agency accept the bi d of Gol dman & Sachs Company. Chairman Hyde expressed appreciation for staff and legal counsel's bond preparations. RESOLUTION OFFERED Offered by Member Cox, the reading of the text was waived by unanimous consent, passed and adopted by the following vote, to-wit: AYES: Members Gillow, Cox, Hyde, McCandliss, Scott Noes: None Absent: None Mr. Miller praised the efforts of Agency staff and the auditor for putting together a three-month audit report in four days. ITEM NO. 3 - REPORT: 1978-79 ANNUAL AUDIT As required by law, a Redevelopment Agency annual audit has been prepared. The firm of Carroll & Pendleton, Associates will be represented by Mr. Wayne Carroll to respond to the audit report. IN-HOUSE RECESS Because Agency members were not provided with the 78/79 audit report until shortly before tonight's meeting, Chairman Hyde indicated the Agency would recess for a short period in order to review the report. (The in-house recess commenced at 7:12 p.m. and concluded at 7:16 p.m.) Executive Director Cole told the Agency the audit does not indicate any areas of concern from a procedural standpoint. WAYNE CARROLL CARROLL & PENDLETON, ASSOCIATES 1756 Orange Avenue Costa Mesa, CA Mr. Carroll stated the audit was clean and proceeded to discuss the accompanying letter of corrmentary. He expressed concern with the City's 150% budget increase (from $8 million in 1970 to $20 million in 1979) while the finance department had no additional staffing in this period. Therefore, he recommended the Agency en- gage the services of an additional professional accountant that could be shared between the City and Redevelopment Agency. Executive Director Cole expressed Administration's appreciation for the auditor's concern. He requested the Agency refer the recommendation to staff to bring back for further recommendation. IO/4/79 -,--.~-_._..._--.-._,.._._~-- -3- Redevelopment Agency Meeting October 4, 1979 Mr. Carroll noted that because of the recent bond issues, the new position should be filled as soon as possible. MOTION TO ACCEPT REPORT It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried to accept the audit report. Member Scott commented that Mr. Carroll's recommendation should be brought back to the City Council in order to consider utilizing City funds instead of Agency funds for hiring of the additional accountant. MOTION TO CONSIDER HIRING OF FINANCE POSITION It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried that a report be brought back to the Agency next month on what action the Council had taken on the report from the City Manager. ITEM NO. 4 - RESOLUTION NO. 209 - APPROVING CONTRACT FOR RELOCATION SERVICES WITH PORT & FLOR, INC. At the August Agency meeting, the Agency concurred with staff's recommendation to terminate the City of San Diego Relocation Office's contract for redevelopment acquisition. Although bids were not requested, a cost range to estimate fees based on next year's relocation workload was required by those submitting the three proposals. Member Scott inquired as to why staff recommends the firm with the most expensive proposal. Community Development Director Desrochers explained that the services of Port & Flor can provide professional and expedient services to the Agency as well as tenants and comes with the best credentials. 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, Gillow, Cox, Noes: None Absent: None ITEM NO. 5 - REPORT: LOCAL COASTAL PROGRAM On September 18 the State Coastal Commission approved Chula Vista's LCP with five major conditions which in effect negate the City's nine years of site planning, engineering, economic and marketing studies. 10/4/79 ______r _..__..._--'~_..__...,-_.. ._,,-~_._-. -4- Redevelopment Agency Meeting October 4, 1979 MOTION TO HOLD JOINT AGENCY/COUNCIL MEETING It was moved by Member Scott and seconded by Chairman Hyde to hold a joint Redevelopment Agency/City Council meeting on the LCP within the next 30 to 60 days. Community Development Director Desrochers remarked that Lois Ewen, a representa- tive of the State Coastal Commission staff, is attempting to involve the Coastal Conservancy. He continued that the City has not yet received the official action from the State for financial assistance and an intelligent decision cannot be made until that information is obtained. DONALD MORRIS, PRESIDENT SEASIDE INTERNATIONAL Mr. Morris expressed his corporation's anger with the State Coastal Commission's decision on Chula Vista's LCP, and they could not accept all of the conditions set by the Commission. He recommended the City not do battle with the Commission as they are presently involved with various other lawsuits. Mr. Morris also in- dicated his company has a personal interest in the Bayfront relative to the con- struction of a shrimp farm on the Vener property. PAUL OBERHAUS CHAMBER OF COMMERCE, EDC 436 H Street Chula Vista, CA Mr. Oberhaus stated that the Pacific Legal Foundation is interested in reviewing the City's case against the State Coastal Commission. The Chula Vista Chamber of Commerce upholds the same concerns and added that the foundation is successful in 90% of its cases. Chairman Hyde commented that the motion on the floor (to consider Coastal action at a joint Agency/Council meeting) may affect the foundation's efforts. MOTION TO HOLD JOINT AGENCY/COUNCIL MEETING CARRIED The main motion to hold a joint Redevelopment Agency/City Council meeting on the LCP within the next 30 to 60 days passed unanimously. ITEM NO. 6 - REPORT: STREET & SONS ORANGE DEVELOPMENT & INVESTMENT COMPANY SANTA FE LAND IMPROVEMENT COMPANY Street & Sons - Ramada Inn On September 7 and 21, 1979 the hotel, restaurant and RV park complex was reviewed by the San Diego Coast Regional Commission. That body approved the application contingent upon the resolution of differences regarding buffers on the project's northern boundaries. 10/4/79 --"-,'-- -- . ~-_._..._----_.- , - ..____________n______ -5- Redevelopment Agency Meeting October 4, 1979 Mr. Desrochers stated that a committee designated by the Coastal Commission was formed to survey the buffer zone at the end of the Ramada Inn development. The appeal period will expire on Friday (10/5/79) and to this date, no appeals have been fil ed. Orange Development & Investment Company Because of recent Coastal Commission action, the financial backing for the Bay Boulevard project has been somewhat upset. Nevertheless, a firm schedule of performance should be forthcoming prior to the close of escrow on November 8. Santa Fe Land Improvement Company Staff is doing a reference check on Equity Directions with regard to development of 17 acres of land on J Street. MOTION TO ACCEPT REPORT It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried to accept the report. ITEM NO. 7 - REPORT: FOCUS AREA DEVELOPMENT - UDAG MORTGAGE REVENUE BONDS LOCAL DEVELOPMENT CORPORATION A grading permit has been obtained by Centre City Associates for the development of 204 residential units, and in conformance with the Disposition & Development Agreement, the landscaping plan is being developed. UDAG Acting Community Development Coordinator Sanseverino explained that a clause in San Diego Federal's latest letter requiring an 85% leasing commitment is creating problems with regard to a UDAG award. Mr. Desrochers remarked that the possibility of being held over one more round will not help the developer to obtain the grant due to the savings and loan association's 85% requirement. The City and developer have done everything pos- sible and now legislative pressure is recommended. Chairman Hyde suggested the director contact Congressman Van Deerlin's office as soon as possible. Special Counsel Reed urged that a City representative contact Congressman Van Deerlin's office in an attempt to approach Undersecretary Embry in this regard. Discussion followed with regard to sending a staff member and City official to Washington in order to display the City's concerns with the UDAG. 10/4/79 .....___..___.__ ,'M. "..~ ._..___._..__".______,_"__~__.___._._.____._~~_~ -6- Redevelopment Agency Meeting October 4, 1979 MOTION TO CONTACT CONGRESSMAN VAN DEERLIN It was moved by Chairman Hyde, seconded by Member Gillow and unanimously carried to direct staff to contact Congressman Van Deerlin's office to explain our needs and indicate our willingness to visit the Washington HUD office in order for them to consider our interest in this matter. Community Development Director Desrochers described the developer's financial commitment to this project. Mortgage Revenue Bonds Miller & Schroeder, bond consultants, are currently awaiting rating Agency review prior to the bond sale scheduled to take place in the next 30 to 45 days. Local Development Corporation The LDC's first loan has been granted to Joe Broccoli for his office building at Landis and F Streets. Chairman Hyde questioned the relocation of Peters Home & Garden Center. Mr. Desrochers commented the garden center is contemplating relocating in an area between Third and Fourth Avenues (Third Avenue extension) but that property is not zoned appropriately for their needs. They are drawing up conceptual plans to see if it would be worthwhile to approach the Planning Commission and Council in this regard. MOTION TO ACCEPT REPORT It was moved by Chairman Hyde, seconded by Member McCandliss and unanimously carried to accept the report. Mr. Desrochers introduced Allen Pritzlaff, Administrative Analyst. Mr. Pritzlaff replaces Michael Welch who resigned in June. ITEM NO. 8 - ENFORCEMENT OF OWNER PARTICIPATION AGREEMENTS In September, the Agency requested staff review design standards in Town Centre I. Staff recommends the hiring of an additional building inspector to work along with the Zoning Enforcement Inspector. It is estimated that a half-time interim position would be adequate. Executive Director Cole stated that the hiring of an extra person would have to be considered by the City Council. MOTION TO REFER ITEM TO CITY COUNCIL It was moved by Chairman Hyde, seconded by Member Scott and unanimously carried to refer this item to the City Council at their next meeting with the necessary financing information to support the recommendation. 10/4/79 -^--'-"'--'-'~ " ____" __ __ _ ____m_______~_·____··,_··__________'_ -7- Redevelopment Agency Meeting October 4, 1979 ITEM NO. 9 - REPORT: ACQUISITION OF REMAINING FOCUS AREA PROPERTY The acquisition of parcels owned by 14 owners is the major expenditure from the bond sale proceeds. A public hearing to inform those property owners of the pending action has been suggested within the next 30 to 45 days. MOTION TO ACCEPT STAFF RECOMMENDATION It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried to accept the staff recommendation of holding a public hearing for a date other than on a regular Agency or Council meeting night. Special Counsel Reed discussed the timing of preparing notices for the public heari ng. A mid-November hearing date was suggested. ITEM NO. 10 - REPORT: EXPANSION AND REMODELING OF SHOPPING CENTER Remodeling of the Chula Vista Shopping Center is not running smoothly due to problems associated with design review. The center's representatives would like to have the improvements completed in time for the holiday shopping season. The Town Centre Design Review Board feels because of this and other reasons, they are providing a piecemeal-type of review. Acting Community Development Coordinator Sanseverino told the Agency there is a discrepancy with the tile selected by the store's owner. The tile chosen and approved by the Design Review Board is now unavailable. Mr. Sanseverino added that the Board has met several times now on this same project and at their most recent meeting (10/3/79) they urged the applicant to resubmit a complete set of plans choosing a different tile. Community Development Director Desrochers commented that it might be appropriate to review the mall plot plan. The Design Review Board is also concerned with other areas of improvements to the mall that they had not previously considered. The tile in question represents about 2% of the total tile. Basically, the work on the mall is underway and most of the tile, except for the accent tile, is in. JEROME LIPP CARTER HAWLEY HALE PROPERTIES, INC. 550 South Flower Street Los Ange 1 es, CA Mr. Lipp admitted that many of the difficulties encountered by his architects were of thei r own doing. He proceeded to explain the problems with the tile selection and its ultimate unattainability. Chairman Hyde expressed the Agency's pleasure that Carter Hawley Hale is proceed- ing with improvements to the center. 10/4/79 .' ~,. .'- ..._----_.-.._,..._.._-----.------_._-,_.._------_.~ -8- Redevelopment Agency Meeting October 4, 1979 JERRY PRIOR Chairman, Design Review Board Mr. Prior stated that the Design Review Board has met four times in a little over one month on this one project. He explained the four basic items of the project as: (1) trees (landscaping); (2) mall feature; (3) decorative tile; (4) furniture and planters. Basically, everything else that was instrumental in the plan is not of major sig- nificance to design ethic. At the initial meeting, those four elements were not delineated. Problems began and eventually three of the four elements were altered. In addition, the Board was aSKed to address the tile on the basis of a time re- lationship rather than a design relationship. The applicants, in view of previous Board action, were again requested to submit their plans in completed form and were instructed to bring their project back to the fourth and most recent meeting (IO/3/79). There being no representative from Carter Hawley Hale at that meeting, the Board moved to deny the tile selection and invite the applicant to another meeting with the completed work to be performed, and to include the design of the mall and the periphery areas identifying: mall feature; excessive tree removal and their replacement; mall furniture; irrigation plans that were not filed pro- perly with working drawings; reconsideration of original tile selection; and a complete analysis of the entire scope of the project. In response to Chairman Hyde's request, Mr. Desrochers described the present con- dition of the Chula Vista Shopping Center. All of the interior mall construction has been completed except for the accent tile in question and they have been moving out on the periphery of "H" and "I" Streets. Mr. Lipp discussed the four elements brought up by the Design Review Board Chairman. 1) Mall feature. The original clock feature submitted by the architect was not favored by Mr. Lipp. He pledged that his firm would present a better mall amenity to the Board within 90 days. 2) Decorative tile. The applicant deplores design by committee and believes the tile selected is most compatible with the area and with other elements that have already been approved. 3) ro ert . Because of poor SOl con ltlon contlnuous s 1 tlng 0 t e and, utility pipe breakage, etc.), the trees are being removed. Mr. Lipp committed that the number of trees removed will be fewer than those to be added. With regard to property e~tension, originally the Broadway was only going to replace their marble; they have now agreed to carryover to their property some of the design improvements of the balance of the mall. 4) Furniture and planters. Mr. Lipp expressed concern with the selection of furniture that now cannot be obtained. 10/4/79 - . - .._-~~._---_._.-.~._.._._-----_."'- .---...--- '--'-'- - -_._.,----~---,_.__.._---- -9- Redevelopment Agency Meeti ng October 4, 1979 Mr. Lipp requested the Agency allow him 90 days to present another mall amenity to the Design Review Board, or if that is excessive, 60 days. Member Scott observed that the Design Review Board is not entirely against the tile but rather would like the complete project presented to them simultaneously. WES ASHBY 7440 N. Figueroa Los Angeles, CA Mr. Ashby, project architect, explained he had notified staff on Monday after- noon, October 1, that he could not assemble a complete package to the Design Review Board on Wednesday, October 3. Chairman Hyde asked if the Design Review Board Chairman was aware of staff's recommendation on this item and proceeded to read that recommendation. Mr. Prior reiterated that it is not the charge of the Design Review Board to approve projects based on time relationships. REDEVELOPMENT AGENCY MEETING RECESSED Chairman Hyde recessed the meeting at 8:35 p.m. in order to allow Agency members to review the project's diagrams. REDEVELOPMENT AGENCY MEETING RECONVENED The meeting reconvened at 8:45 p.m. ALFREDO ARAIZA Vice Chairman, Design Review Board 272 Church Avenue Chula Vista, CA Mr. Araiza expressed concern that the drawings originally presented were incom- plete and showed lack of expression. Member McCandliss questioned the tile selection by the applicant. Mr. Lipp responded that the tile chosen was based on compatibility with the shopping center as well as containing the non-skid elements. Further discussion followed regarding the charge of the Design Review Board and Carter Hawley Hale's concern with basic improvements to the center. MOTION TO REFER PLANS BACK TO DESIGN REVIEW BOARD It was moved by Member McCandliss that the plans be referred back to the Design Review Board as outlined tonight for them to meet at the convenience of the owner. 10/4/79 __ . -----"_"_'0'''',_,.,-,--,--" ,~___.._~__ -10- Redevelopment Agency Meeting October 4, 1979 MOTION OIES The motion died for lack of second. Member Scott expressed concern that this project should not be under the con- sideration of the Design Review Board. MOTION TO ACCEPT STAFF RECOMMENDATION It was moved by Chairman Hyde and seconded by Member McCandliss to basically ap- prove the staff recommendation to accept the proposed substitute tile and ask Carter Hawley Hale to bring back to the Design Review Board their responses in regard to landscaping and mall feature within four months in order to resolve these matters. In response to Member Cox's question about the time involved in presenting mall furniture and landscaping plans, Mr. Ashby informed him that 30 to 60 days should be sufficient time. Mr. Lipp clarified that they would like to have the tile installation completed in time for the Christmas season. As for the landscaping - planters - there is no hurry. MOTION TO ACCEPT STAFF RECOMMENDATION CARRIED The main motion as previously stated to accept the staff recommendation was carried unanimously. ADJOURNMENT The meeting was adjourned at 9:10 p.m. to the regular meeting of November 1, 1979. - ¿/~ - Paul G. Desrochers, Executive"-Secretary 10/4/79 ..-.....--.. ._--'-'--"-'--~"---"---------