The URL can be used to link to this page

Home My WebLink Aboutrda min 1979/12/06 MINUTES REDEVELOPMENT AGENCY MEETING OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday - 7:00 p.m. December 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, Public Services Building, 276 Fourth Avenue, Chula Vista, California with the following: MEMBERS PRESENT Chairman Hyde; Members McCandliss, Scott, Gillow, Cox Members Absent None STAFF PRESENT Community Development Director Desrochers, Development Services Administrator Robens, Acting Cmomunity Develop- ment Coordinator Sanseverino, Administrative Analysts Buchan and Pritzlaff, City Engineer Lippitt ALSO PRESENT Assemblyman Wadie Deddeh, Richard Zogob, Jack Wagenaar, Gene Hargraves, Neil Arthur ITEM NO. 1 - APPROVAL OF MINUTES It was moved by Member Cox, seconded by Chairman Hyde and unanimously carried to approve the minutes of November 1 and 6, 1979 as mailed. SPECIAL ORDERS OF THE DAY At this time, Chairman Hyde acknowledged the presence of Assemblyman Wadie Deddeh and expressed the Agency's and City appreciation for the Assemblyman's help in obtaining legislative action (passage of AB405) for the merger of the Town Centre and Bayfront redevelopment projects. He proceeded to read Resolution No. 196 in this regard. After presentation of the resolution to the Assemblyman, Mr. Deddeh stated it is a privilege and honor to serve the Chula Vista community and without the help of Agency Counsel and the Community Development Director, implementation of the bill would not have been possible. AGENCY MEETING RECESSED/RECONVENED The meeting was recessed at 7:07 p.m. to a City Council matter. The meeting reconvened at 7:45 p.m. ITEM NO.2 - CHULA VISTA SHOPPING CENTER: a. REMODELING b. EXPANSION Remade 1 i ng The center's operators are scheduled to submit remodeling plans to the Design Review Board for the mall feature and completion of the remainder of the center. Expansion A meeting with the Chairman's Shopping Center subcommittee and Community Development Director was held recently with Wal kerScott to review concept plans for expanslon. 12/6/79 ..__."---_.~~._,-_.__.,- ...' ....-.-..." -_._._._-----~,----"---,-----~_..~---_.-..-- -2- Redevelopment Agency Meeting December 6, 1979 Community Development Director Desrochers reported that Walker Scott is discussing plans with Carter Hawley Hale and Sears. The only staff comment on the conceptual plans is reconsideration of parking layout and amount devoted to compact spaces. MOTION TO ACCEPT REPORT It was moved by Member McCandliss, seconded by Member Scott and unanimously carried to accept the report. ITEM NO.3 - RESOLUTION NO. 216 - (a) ENTERING INTO AN AGREEMENT WITH SAN DIEGO GAS & ELECTRIC COMPANY FOR UNDERGROUNDING UTILITIES ALONG CENTER STREET RESOLUTION NO. 217 (b) AUTHORIZING THE APPROPRIATION OF $4,000 FOR THE PURPOSE OF AN ELECTRICAL METERING BOARD An undergrounding district within the Town Centre Focus Area was approved by the City Council on November 6, 1979. A portion of the undergrounding along Center Street from Fourth Avenue to Landis is a type "B" district and the cost is to be paid by the Agency. Under SDG&E regulations, the City of Chula Vista is responsible for the purchase and installation of the electrical metering board serving the Memorial Park gym, pool and new community center. RESOLUTIONS OFFERED Offered by Member Cox, the reading of the texts was waived by unanimous consent, passed and adopted by the following vote, to-wit: AYES: Members Cox, Hyde, McCandliss, Scott, Gillow Noes: None Absent: None ITEM NO. 4 - RESOLUTION NO. 218 - AUTHORIZING THE EXECUTION BY THE AGENCY OF AMENDMENT TO TRUST INDENTURE (SECURITY AGREEMENT) TO AUTHORIZE ISSUANCE OF, AND EXCHANGE FOR, BEARER COUPON NOTES AND PROVIDING OTHER MATTERS PROPERLY RELATING THERETO Bond Counsel, Jones Hall Hill & White, has requested the subject resolution to enable the First National Bank of St. Paul to market the previously issued construction loan notes in different denominations with no adverse consequences to the City. RESOLUTION OFFERED Offered by Member Gillow, 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 12/6/79 _....-.'"._----"-.~_._._-_._--.~--~-_._~- -3- Redevelopment Agency Meeting December 6, 1979 ITEM NO. 5 - REPORT: RESIGNATION OF DESIGN REVIEW BOARD MEMBER Design Review Board member Grover Starr has submitted his letter of resignation from the Board. Upon the advice of the Project Area Committee, the Agency is requested to make the new appointment. The vacancy should be filled by a professionaly quali- fied individual with experience in architecture or landscape architecture. MOTION TO ACCEPT LETTER OF RESIGNATION It was moved by Chairman Hyde, seconded by Member Scott and unanimously carried to accept the resignation and send a letter to Mr. Starr expressing appreciation for his fine service to the community. Mr. Desrochers informed the Agency that the Project Area Committee is considering the recruitment of Mr. Norm Williams to fill the vacancy. Chairman Hyde suggested Mr. Williams be asked to submit his application for the position. ITEM NO. 6 - REPORT: STATUS OF WINDMILL FARMS - 465 THIRD AVENUE On November 1, 1979 the Agency entered into an Owner Participation Agreement with Windmill Farms and the project was conditionally approved by the Design Review Board on November 14. The agent has accepted these conditions and is currently pursuing a building permit. MOTION TO ACCEPT REPORT It was moved by Member Scott, seconded by Member McCandliss and unanimously carried to accept the report. ITEM NO. 7 - RESOLUTION NO. 219 - AUTHORIZING THE CHAIRMAN TO APPROPRIATE FUNDS TO THE CITY OF CHULA VISTA FOR SERVICES RELATIVE TO A LANDSCAPING MAINTENANCE AGREEMENT FOR THIRD AVENUE The subject resolution provides for the appropriation of up to $15,000 for the unap- propriated balance of the Bayfront/Town Centre project account. The funds will be utilized for a landscaping maintenance program for the Third Avenue street improve- men ts . Because the funds will be allocated as an interest-free loan for six months, a permanent financing plan will be developed during this period. 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 12/6/79 ...~,,-"--- "'------.---.-. _..._-_.__.._-_._._-,---"._.~-._..- .-.-.------.-.-.---..-----"....-.--.-,.-......---------- -4- Redevelopment Agency Meeting December 6, 1979 ITEM NO. 8 - RESOLUTION NO. 220 - ENTERING INTO AN OWNER PARTICIPATION AGREEMENT WITH VERNA DISNEY On November 14, the Design Review Board conditionally approved remodeling plans of the existing Disney Arcade at 209 Third Avenue. In addition, the applicant has chosen to contribute to the City's Fine Arts Fund as stipulated in the owner parti- e i patTon agreement. 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 Cox, Hyde, McCandliss, Scott, Gillow Noes: None Absent: None Member Scott questioned the term "strakes" mentioned in the item explanation of the project. He was informed the word is a nautical term meaning overlapping wood. ITEM NO. 9 - TOWN CENTRE I a. ACQU ISITION d. UDAG STATUS REPORT: b. RENTAL AGREEMENT e. OWNER PARTICIPATION c. MORTGAGE REVENUE BONDS Acquisition Three escrows have opened and several are due for property acquisition in the focus area. The fixtures and equipment appraisals are to be completed December 15 which should facilitate closing several other properties. Rental Agreement The rental agreement proposed for use by the Agency was made available for review. It is suggested that each tenant be subject to the appropriate agreement at the same rate charged by the owner prior to Agency acquisition. Mortgage Revenue Bonds The $26,300,000 bond sale closed on November 12, 1979 and the proceeds have been deposited with the trustee. Costs associated with legal fees, travel and a portion of staff time will be reimbursed to the Agency. UDAG A marketing analysis is being conducted by the developer to assist him in leasing commercial space. Because the financial institution's 85% pre-leasing requirement has not been modified, no construction loan has been committed. Staff suggests withdrawing our current application to HUD and resubmit in three to six months when a leasing program has been worked out by the developer. 12/6/79 __·____·'_________._w·.._.....___ _.___ ,.--.----- .-_._-_._------------~----_.__.._._-..- -5- Redevelopment Agency Meeting December 6, 1979 RICHARD G. ZOGOB CENTRE CITY ASSOCIATES, LTD. 315 Fourth Avenue Mr. Zogob expressed his concerns with UDAG and financial institution pre-leasing re- quirement. He noted the development is not behind according to the schedule of per- formance in the DDA, and commented on problems foreseen if a parking structure is not built. Community Development Director Desrochers remarked that the 85% pre-leasing require- mentis a stipulation of the b_ankand not of UDAG. Member Scott commented that a special conference should be held with regard to the UDAG s ituat i on. Mr. Zogob stated he should have the results of his marketing study by the end of Decembe r. MOTION TO SCHEDULE AGENCY CONFERENCE It was moved by Member Scott and seconded by Member Gillow that a special Agency conference be scheduled (regarding UDAG) between now and the next meeting. Discussion ensued with regard to the completion of the developer's marketing study and time constraints due to the holidays. Chairman Hyde suggested that it might be more advantageous to schedule a conference type Agency meeting on January 3, 1980 in a place other than the Council Chambers. SUBSTITUTE MOTION OFFERED It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried that a special Agency conference be scheduled (regarding UDAG) between now and January 3, 1980. MOTION TO WITHDRAW APPLICATION It was moved by Chairman Hyde, seconded by Member Gillow and unanimously carried for staff to direct a letter to HUD withdrawing the City's pending UDAG request. Owner Participation Messrs. Bernes and Isham, two property owners in the Town Centre Focus Area, have been designated for owner participation in the focus area. Staff has supplied them with rules and regulations that would be imposed on all businesses in the focus area center and they have been asked to prepare a cost pro forma particularly as it re- lates to remodeling and for their pro rata share of maintenance and parking costs. MOTION TO ACCEPT REPORT It was moved by Member Scott, seconded by Member Cox and unanimously carried to accept the report. 12/6179 --.------.- _m._ __._...__....___...___ m___._n_______..._._ _____ " -6- Redevelopment Agency Meeting December 6, 1979 ITEM NO. 10 - REPORT: CHANGE IN PROVISION OF ESCROW SERVICES By changing to Crocker National Bank, the Agency will save a total of $1,243.20 based on the planned acquisition in the remainder of 79-80. The present contract with Title Insurance calls for a fee based upon the sales price of the property with a minimum. Crocker offers the service at $140 per escrow regardless of the sale price. MOTION TO ENTER INTO AGREEMENT WITH CROCKER NATIONAL BANK It was moved by Member Scott, seconded by Chairman Hyde and unanimously carried to authorize staff to enter into an agreement with Crocker National Bank for escrow servi ces. ITEM NO. 11 - RESOLUTION NO. 221 - RESCINDING CERTAIN RULES AND REGULATIONS RELATING TO ASSISTANCE AND ADOPTING RULES AND REGULATIONS IN THE PLACE THEREOF In May, 1977, relocation rules and regulations were adopted by the Agency. On October 4, 1979, the Agency entered into a contract with Port & Flor, Inc. It is proposed that the Agency now adopt new rules and regulations in place of the pre- viously adopted ones. 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. 12 - BAY FRONT STATUS REPORT: a. RAMADA INN c. 'ROHR CORPORATION b. SANTA FE/BAY BLVD. d. SHANGRI-LA Ramada Inn Development plans for this project have been submitted to the Planning Department and they're scheduled to go before the Planning Commission on December 12. In addition, an encroachment permit is being processed by staff. Shangri - La Equity Directions is currently under negotiation for the purchase of 17 acres on Bay Boulevard at J Street. Staff is encouraging Fortune 500 (a research and de- velopment firm interested in the site) and Equity Directions for joint participation. on a portion of the site. Rohr Corporation Planning is reviewing site plans and elevations for Rohr's request for an addition of 8,000 square feet of office space along Tidelands Avenue within the present con- fines of their plan. Prior to Agency consideration, the Planning Commission will be asked to review the proposal. 12/6179 -.--------.-...-.'''-,- _HW.'···. .. _._._",.. __...__.......... ,_._~_, ' ...,..,....._....... .__......._m.__.__.......________--<_ -7- Redevelopment Agency Meeting December 6, 1979 NEIL ARTHUR ROHR CORPORATION Mr. Arthur, manager of Government Relations for Rohr, expressed the need for a site for modular offices (twelve 12'x50' trailers) intended to house a number of employees for a starter project. Construction on this project is scheduled to commence on December 7; because of this, it is requested that design review be bypassed. (Mr. Arthur displayed sketches of modular units proposed for the site.) Community Development Di rector Desrochers rema rked the projec t woul d not ci rcumvent the planning process. MOTION TO APPROVE LOCATION OF TEMPORARY OFFICE FACILITIES It was moved by Chairman Hyde and seconded by Member Cox to recommend approval of locating the temporary office facilities adjacent to Tidelands Avenue without going through Chula Vista Planning Commission design review. Member Scott, speaking against the motion, commented on the special privilege of- fered on short noti ce. MOTION CARRIED The motion passed 4-1 with Member Scott voting "no." Shangri -La At an earlier time, the owner of the subject parcel requested an extension for five years of her current owner participation agreement. The Agency suggested a three year agreement with one year options. RISI Industries has now decided not to use the premi ses. Therefore, the owner will seek another tenant and ask the Agency to , reconsider the matter within the next several months. MOTION TO ACCEPT REPORT It was moved by Chairman Hyde, seconded by Member Cox and unanimously carried to accept the report. ITEM NO. 13 - STATUS REPORT: ORANGE DEVELOPMENT & INVESTMENT COMPANY With Agency concurrence at the November meeting, the submission of a construction schedule with compliance assurances upon the transfer of title was postponed. Pre- sently, the developers are not able to acquire property. GENE HARGRAVES ORANGE DEVELOPMENT & INVESTMENT COMPANY Mr. Hargraves explained his firm has suffered delays due primarily to two major factors, one of which is the negative reactions from prospective tenants due to Coastal Commission action along with the extremely tight money market. 12/6/79 ._---~_._-----_....__.- __~___ ____._.__._.____.~_ ,_..'om', - ~_._----~,----~_._~"--_.~---_.- -8- Redevelopment Agency Meeting December 6, 1979 In response to Member Scott's question to have property re-valued if the agreement is extended, Mr. Hargraves stated he had no objections but the tenants would have to be re-approached. Mr. Desrochers told the Agency if the developer can present concrete evidence of required leasing agreements, site plans, and can obtain Coastal Commission agree- ment, staff reviews will be taken care of and portions of the development can proceed. After discussion on the developer's present status and his attempts to secure new tenants, the Community Development Director indicated that if assurances are met, Special Counsel could be directed to draft a resolution amending the DDA which could allow phased development, increased land costs and would insure reversion to the Agency in the event speculation were to occur. Special Counsel concurred that such an agreement could be prepared. MOTION TO EXTEND AGREEMENT It was moved by Member Scott and seconded by Member Gillow to extend the agreement until Agency Special Counsel and the Community Development Director prepare an agree- ment that would continue the project and protect the Agency as far as the potential speculation on the vacant property, what adjustments might be necessary and at the next meeting get a recommendation on what course to follow. In response to the motion, Mr. Hargraves and Special Counsel Reed indicated they would be unavailable if the deadline was the next Agency meeting (January). MOTION AMENDMENT Member Scott amended his previous motion to extend the agreement to the February Agency meeting (60 days). The motion, as amended, passed unanimously. ITEM NO. 14 - STATUS REPORT: COASTAL COMMISSION LITIGATION COASTAL CONSERVANCY Coastal Commission Litigation On behalf of the City, PLF and Agency Special Counsel have filed a complaint in Superior Court against the California Coastal Commission. Coas.tal Conservancy The City Council can provide funds and technical assistance to local governments for the preservation of coastal resources. Due to problems with the State Coastal Commission though, it is doubtful that the Conservancy's assistance can be utilized. MOTION TO ACCEPT REPORT It was moved by Member Scott, seconded by Member Gillow and unanimously carried to accept the report. 12/6179 ------ _._._ ___ __ n_ ___._.__.__._~.,. . '__"""___"_ __,.._....n...._'.____.n._____.__ -9- Redevelopment Agency Meeting December 6, 1979 ITEM NO. 15 - RESOLUTION NO. 222 - APPROVING AGREEMENT WITH PROJECT DESIGN CONSULTANTS AND APPROPRIATING $5,000 FOR PROFESSIONAL SERVICES Project Design Consultants has been contacted to provide services relative to a number of development projects currently being processed by the City within the vicinity of the "E" Street gateway to the Bayfront. Member McCandliss expressed concern with the number of consultants being retained by the City and asked why staff couldn't handle the project. City Engineer Lippitt reiterated that due to limited staff time, limited timeframe and the expertise necessary, a consultant should be retained. 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 Cox, Hyde, McCandliss, Scott, Gillow Noes: None Absent: None ITEM NO. 15 - RESOLUTION NO. 223 - AUTHORIZING REPAYMENT OF LOANS TO THE CITY OF CHULA VISTA On June 28, 1979, the Agency adopted a resolution accepting a loan from the City to insure indebtedness of the Bayfront proj,ect for tax increment purposes. During the month of November, proceeds of the merged projects (Town Centre/Bayfront) bond sale were actually received and with other enabling factors accomplished, it is appropriate to repay the June loan with interest earned reverting to the City. 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. 17 - RESOLUTION NO. 224 - AMENDING RESOLUTION NO. 206 TO PROVIDE FOR ADMINISTRATION OF FUNDS BY FISCAL AGENT Resolution No. 226, authorizing the issuance of $7,150,000 of Bayfront/Town Centre Tax Allocation Bonds, was adopted on September 18, 1979. The bond proceeds for this issue we~e deposited in a redevelopment fund and a low and moderate-income housing fund maintained and held in trust by the Agency Treasurer. Due to time and com- plexities of administering bond proceeds, staff and special counsel concur that it would be in the best interest of the Agency to allow UCB to administer the funds. 12/6179 ~--'---_.... _._--_...._-"----._.._-_.,..,~_._- -10- Redevelopment Agency Meeting December 6, 1979 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 MEMBERS' COMMENTS Member Gillow asked if anything is being done to encourage store owners downtown to improve thei r storefronts. Mr. Desrochers responded that because of an active Town Centre Business & Professional Association, there has been a great deal of participation. A letter has also been drafted to be distributed to business owners and tenants explaining City staff contacts. Member Cox., commented on the "green" colored 1 ight standards installed on Third Avenue. Development Services Administrator Robens stated that the light standards can be antiqued by City forces. ADJOURNMENT The meeting was adjourned at 9:27 p.m. to the special meeting of Tuesday, December 11, 1979. ¡ &;. ~ , ,/'ì ,..'. -' <, '/9:/~ vÓ0f \- ..~, Paul G. Desrochers, Secretary 12/6179 ..........-.......- ..-"" ~.~--.--_._----~~-_...._._._--_.,_.,..._.._.._._-_.~.-...._..-,_.__._----~-_.,.._._---