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HomeMy WebLinkAboutrda min 1979/11/01 MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA Thursday - 7:00 p.m. November 1, 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, Public Services Building, 276 Fourth Avenue, Chula Vista, California with the following: r1EMBERS PRESENT Chairman Hyde; Members McCandliss, Scott, Gillow, Cox (arrived 7:04 p.m.) Members Absen t None STAFF PRESENT Community Development Director Desrochers, Special Counsel Reed, Development Services Administrator Robens, Director of Parks & Recreation Hall, Acting Community Development Coordinator Sanseverino ALSO PRESENT Ron Pekarek, Roscoe Keagy, Donald Stansell ITEM NO. 1 - APPROVAL OF MINUTES It was moved by Chairman Hyde, seconded by Member Scott and unanimously carried by those present to approve the minutes of October 4 and 16, 1979 as mailed. ITEM NO. 2 - REPORT: LOCAL COASTAL PROGRAM DETERMINATION Staff, upon Agency direction, has contacted several entities with regard to the State Coastal Commission's action of September 18, 1979. Specific inquiries were made to the State Coastal Commission, Coastal Conservancy and Pacific Legal Foundation (PLF). Community Development Director Desrochers reported that he has been in contact with the PLF; it appears that they may be interested in assisting us in action against the Coastal Commission. City staff has contacted the State Coastal Com- mission staff requesting them to supply us with the official action of the September 18 meeting so as to provide a basis for determination of our next course of action. Chairman Hyde suggested the director draft a telegram to the chairman of the State Commission expressing our concerns that we have not received the material and that the City is trying to devise a course of action and cannot proceed until the official action is received. Member Scott recommended the telegram be backed up by registered letter. Special Counsel Reed informed the Agency that there is a 60-day statute of limi- tations period in which to challenge the Commission's decision. He emphasized the importance of obtaining the transcript of the September 18 hearing in order to file a meaningful lawsuit. The Agency addressed the possibility of further discussion and action on this item at an adjourned regular meeting on November 6, 1979. 11/1/79 -2- Redevelopment Agency Meeting November 1, 1979 MOTION TO ACCEPT REPORT It was moved by Chairman Hyde, seconded by Member Scott and unanimously carried to accept the report. ITEM NO. 3 - REPORT: WHITEMAN PROPERTY (SHANGRI-LA) The owner of this property at the foot of F Street (Ms. Whiteman) has requested a five year extension of our owner participation agreement. This request is made in light of the recent LCP decision and because RISI Industries (whose main offices are at Bay Boulevard and F Street) wishes to use the property and to make improvements. Mr. Desrochers stated that a requirement of the Coastal Act is that all LCP's be completed by June 30, 1981. Discussion ensued regarding the five year extension. Comments included a compro- mise three year lease and addition of a 90-day order to cease clause. MOTION TO CONTINUE ITEM It was moved by Chairman Hyde, seconded by Member McCandliss and unanimously carried to continue this item to the next Agency meeting, and refer staff back to the property owner to discuss the possibility of a three year lease. ITEM NO. 4 - STATUS: a. RAMADA INN b. ORANGE DEVELOPMENT & INVESTMENT COMPANY c. SANTA FE - BAY BOULEVARD AND J STREET a. RAMADA INN With Regional Commission approval, the owners are developing their plans for site grading and Planning Commission review. An encroachment permit for the use of Bay Boulevard is being prepared for Council consideration per our owner partici- pation agreement. b. ORANGE DEVELOPMENT & INVESTMENT COMPANY November 8th is the date set to close escrow on the property. However, it does not appear in the Agency's best interest to close until a revised schedule of performance can be ascertained. Community Development Director Desrochers informed the Agency that the Community Development Department received a letter from the developer that requests a 30 to 45 day extension on the agreed upon closing date. The developer asks for this extension in order to complete the necessary joint venture documentation. The di rector recommended the Agency take forma 1 acti on at the December meeti ng and agree to the letter request after consideration of the schedule of performance. Discussion followed regarding the $25,000 non-refundable deposit made by the developer and the revisionary clauses in the DDA. 11/1/79 ~..._-_._- _.~-_.-_."--_. ._-'-,-- -------,_.- -3- Redevelopment Agency Meeting November 1, 1979 MOTION TO GRANT EXTENSION It was moved by Chairman Hyde, seconded by Member Cox and unanimously carried to grant the developer's request for an extension (on the closing date) but indicate if it is necessary to seek further delay, adjustment of the purchase price would be undertaken. c. SANTA FE - BAY BOULEVARD AND J STREET The Chicago office of Santa Fe has delayed the processing of an agreement with Equity Directions regarding the development of 17 acres of land at Bay Boulevard and J Street. When agreement is reached with the railroad, concept plans will be fully discussed and Agency agreements will be prepared. MOTION TO ACCEPT REPORT (a, b, c) It was moved by Member Cox, seconded by Chairman Hyde and unanimously carried to accept the report. ITEM NO.5 - TOWN CENTRE II STATUS Finalized plans for remodeling of the Chula Vista Shopping Center will be pro- vided for the December 12 Design Review Board meeting. Also, it appears that the two major tenants are reluctant to pursue the inclusion of Walker Scott in the center at this time. Chairman Hyde commented that he and staff talked with Mr. Borst (Walker Scott) and he has been asked to prepare a parking analysis for Carter Hawley Hale's revi ew. Members discussed the importance of City officials' attendance at meeting in- volving the center. MOTION TO APPOINT DELEGATION It was moved by Member McCandliss and seconded by Member Scott that the Agency appoint a delegation, a committee of two, to keep lines of communication open and to make the wishes of the Agency known. Discussion ensued concerning the formation of a Mayor's ad-hoc committee--Member McCandliss advised that the Agency should be kept apprised of Carter Hawley Hale's strategy if they are trying to entice another major tenant. SUBSTITUTE MOTION OFFERED Member McCandliss offered a substitute motion to appoint a Mayor's ad-hoc committee to remain informed (of the center's progress) and to express the interests of the Agency in bringing another department store to the City - doing whatever is necessary in carrying out those objectives. The second agreed to the substitute motion and it passed unanimously. 11/1/79 +...~_._-_._....._--_._..,-----_.__.__.,..-._~---_._._,. -4- Redevelopment Agency Meeting November 1, 1979 ITEM NO. 6 - STATUS REPORT: MAINTENANCE & OPERATION DISTRICT For the past month, staff has been researching methods of providing and financing the maintenance and operation of improvements on Third Avenue. The 60-day land- scape maintenance period included in the contractor's agreement will be activated upon the acceptance of the street improvement project. Member McCandliss questioned option #1 relative to consultant services to assist in the establishment of an assessment district. MOTION TO APPROPRIATE FUNDS FOR MAINTENANCE AGREEMENT It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried that the Agency appropriate $15,000 on a loan basis to be paid back by whatever financing method staff comes up with, and any problems would be brought back to the Agency. Further discussion followed regarding a Request for Proposal (RFP). The di rector explained that the RFP would be sent out in January and based on tonight's dis- cussion, a contract would be prepared. He indicated that the previous motion may be premature. Acting Community Development Coordinator Sanseverino explained if the six-month contract is pursued, a decision as to what option to follow would be made at that time. MOTION TO ACCEPT REPORT It was moved by Member Cox, seconded by Chairman Hyde and unanimously carried to accept the report. ITEM NO. 7 - FOCUS AREA DEVELOPMENT - TOWN CENTRE CONSTRUCTION UDAG RESIDENTIAL MORTGAGE LDC REVENUE BOND SALE MEMORIAL PARK TOWN CENTRE CONSTRUCTION The first condominium units of Centre City Associates will be ready in nine months as scheduled. The 15 units of Town Centre Town Homes is also proceeding on sched- ule, those to be completed in April, 1980. RESIDENTIAL MORTGAGE BOND SALE Bond consultants, Miller & Schroeder, have issued a preliminary official statement and expect to sell the bonds in November. r Community Development Director Desrochers requested that this item be continued to a special Agency meeting on November 6. At that time, bond counsel will be available. He expressed concern with the poor bond market conditions and the impending Ullman bill - HR3712. 11/1/79 ----.+-+. ..'......__.'.____..__m_. -5- Redevelopment Agency Meeting November 1, 1979 Special Counsel Reed expressed concern with the usury situation and suggested the Agency request a supplemental opinion from bond counsel in this regard. MOTION TO REQUEST SUPPLEMENTAL OPINION FROM BOND COUNSEL It was moved by Chairman Hyde, seconded by Member Scott and unanimously carried that staff be directed to request a supplemental opinion from bond counsel as- suring us that the transaction will not result in usurious loans. UDAG Staff and the Mayor met with HUD officials in Washington, DC on October 16. At that meeting, a compromise was reached as to HUD's position on the preleasing requi rement. Subsequently, the developer indicates that he will attempt to comply with HUD's requirement. Mr. Desrochers stated the bank is to inform staff if they can lower their 85% preleasing requirement. The director felt that Mr. Zogob should start a lease marketing program for his project; however, this does not appear likely. Chairman Hyde asked that Mr. Zogob be in attendance at Tuesday night's Agency meeting to give an update on his accomplishments. MOTION FOR MEETING WITH PARTIES INVOLVED. It was moved by Member Cox to direct staff to arrange a meeting with the Mayor, the lending institution, and the developer prior to Tuesday night's Council meeting to see if there is anything the City can do to keep this moving along. Community Development Director Desrochers informed Member Cox that such a meeting has taken place. MOTION DIES The motion died for lack of second. MEMORIAL PARK Staff is scheduled to meet with the landscape architect to view the final plans and development costs of this project. The Design Review Board approved these plans as well as renovation of the Taco Express building. RON PEKAREK PEKAREK GROUP Mr. Pekarek told the Agency that he has been through the design review process. His firm has been charged with the task of master planning all the improvements in Memorial Park. Mr. Pekarek described the specifics of the project in detail. A prel iminary master plan of Memorial Park was displayed for review. 11/1/79 ---------... ... - --_..._-_.......,...-.._._--_._-._.~_..-----"._---_._.-.. + -6- Redevelopment Agency Meeting November 1, 1979 In response to Chairman Hyde's question, Mr. Pekarek described the advantages of using stamped concrete in this project. MOTION TO ACCEPT REPORT It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried to accept the report, ITEM NO. 8 - RESOLUTION NO. 212 - ENTERING INTO AN OWNER PARTICIPATION AGREEMENT WITH WINDMILL FARMS Plans for remodeling and relandscaping of the former Safeway site at 435 Third Avenue have been submitted to the Design Review Board. Interior remodeling plans are currently being processed by appropriate City departments although the project won't be presented to the Design Review Board until November 14, 1979. Concept plans were available for Agency viewing. 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, Gillow, Cox, Hyde, McCandliss Noes: None Absent: None ITEM NO. 9 - RESOLUTION NO. 213 - AUTHORIZING THE MAKING OF PROPERTY ACQUISITION OFFERS TO OWNERS OF REAL PROPERTY WITHIN TOWN CENTRE REDEVELOPMENT AREAS Security Land & Right of Way Service has been obtained to provide negotiator services with regard to acquisition. In addition, updated appraisals on the 14 remaining properties have been provided by Lee Johnson. Executive session is requested by legal counsel to discuss the acquisition program prior to consider- ation of this resolution. MEETItlG RECESSED TO EXECUTIVE SESSION It was moved by Chairman Hyde, seconded by Member Scott and unanimously carried to recess to executive session for litigation purposes. The meeting was recessed at 8:40 p.m. The meeting reconvened at 8:50 p.m. RESOLUTION OFFERED (RESOLUTION NO. 213) Offered by Member Scott, the reading of the text was waived by unanimous consent, passed and adopted by the following vote, to-wit: 11/1/79 . ~_. _..~.".___..._._._ _n___ __ __._.____,____,__..__..,_._.,.______~_ -7- Redevelopment Agency Meeting November 1, 1979 AYES: Members Scott, Gillow, Cox, Hyde, McCandliss Noes: None Absent: None MEMBERS' COMMENTS In response to Member Cox's concern regarding installation of light standards, Development Services Administrator Robens explained that only one-half of the order has been received. The entire installation should be completed by mid- Decembe r . ADJOURNMENT The meeting was adjourned at 8:58 p.m. to the adjourned regular meeting of Tuesday, November 6, 1979. L Pau 11/1/79 .·.._.u.._,·___.~__ "_.._.._._________..__.~~~_