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HomeMy WebLinkAboutrda min 1986/03/06 MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, March 6, 1986 Council Chambers 7:00 P.M. Public Services Building ROLL CALL MEMBERS PRESENT: Chai rman Cox, Members McCandl i ss, Scott, Moore, Malcolm STAFF PRESENT: Executive Di rector Goss, Assi stant Ci ty Attorney Gill, Community Development Director Desrochers, Assistant Communi ty Development Director Gustafson, Redevelopment Coordinator Kassman, Community Development Specialist Davies l. APPROVAL OF MINUTES MSUC (McCandliss/Cox) to approve Mi nutes of February 11, 1986 and February 20,1986 meetings as mailed. CONSENT CALENDAR Item 6 pulled. 2. REPORT: SECTION 404 PERMIT - GUNPOWDER POINT ACCESS ROAD The Fi sh & Wi 1 dl ife Servi ce is sti 11 opposed to the road and the Corps of Engineers is attempting to seek modifications to our application. 3. REPORT: SOUTH COUNTY REGIONAL CENTER INSTRUCTIONS TO TRUSTEE Authorized transfer of $2,886,606 from Trustee to County. 4. REPORT: APPOINTING MEMBERS TO THE ENVIRONMENTAL HEALTH STUDY ADVISORY COMMITTEE The fo 11 owi ng were appoi nted: Ruth Riley and John Harker. Others were appointed at the February 6 meeting. 5. RESOLUTION 662 APPROVING AGREEMENT WITH BANK OF AMERICA FOR LENDING SERVICES ASSOCIATED WITH HOUSING REHABILITATION AND COMMERCIAL REHABILITATION On February 25, the City Council considered an agreement with Bank of America for 1 endi ng services in support of the City's Housing Rehabilitation and Commercial Rehabilitation programs funded wi th Community Development Block Grant Funds. A si mi 1 a r agreement wi th Bank of Ameri ca is necessary for deposit and util i zat ion of Redevelopment Agency Low and Moderate-Income Housing Fund dollars for the Housing and Commercial Rehabilitation Programs. MSUC (Malcolm/McCandliss) to approve Consent Calendar. - "- -~- _._~._._--.._~._._,-----.. Minutes of Regular Meeting of Redevelopment Agency -2- March 6, 1986 6a. REPORT: TOWN CENTRE MANOR-CONSIDERATION OF PROJ ECT IMPROVEMENTS REQUESTED BY THE COUNTY HOUSING AUTHORITY Member McCandl i ss questioned the additional cost of the doubl e sided wood fence since the adjacent owner will not share in the cost. Assistant Director Gustafson recommended the double sided fence only to keep consistency with remainder of fence already done whi ch is very attractive. Member Malcolm recommended that we do not double side the fence. Member McCandliss inquired about the carpeting in the Senior Housing Project. Assistant Director Gustafson assured that it will be carpeti ng such as indoor/outdoor carpeting with low nap so that i t wi 11 be no problem for Seniors walking or in wheelchairs. 6b. RESOLUTION 663 APPROVING A GRANT TO THE COUNTY HOUSING AUTHORITY FROM THE TOWN CENTRE MANOR CONTINGENCY FUND FOR PROJECT IMPROVEMENTS Membe r Moore i ndi cated his impression of a contingency account was for overrun. Assi stant Di rector Gustafson repl i ed that the County had requested the contingency account also be used to embellish improvements that HUD would not pay for such as paint and stain for trim and baseboards, and items such as a flagpole that would enhance the Project. MSUC (Malcolm/McCandliss) to accept and adopt Resolution as amended not to double side fence at Town Centre Manor. BAYFRONT 7. RESOLUTION 664 APPROVING AN AGREEMENT WITH GRAY, CARY, AMES AND FRYE FOR LEGAL SERVICES ASSOCIATED WITH THE U. S. DISTRICT COURT SUBPOENA RESOLUTION OFFERED BY MEMBER SCOTT, the reading of the text was waived by unanimous consent, passed and adopted unanimously. 8. REPORT: STATUS OF CAFE PORTOFINO RESTAURANT Community Development Director Desrochers advised that on March 5 the plans had been resubmitted to the City. These are revised plans from what had been submi tted in August. The Ci ty call ed for correcti ons to be pi cked up on August 12, 1985, and they were not picked up until October 14, 1985, and just resubmitted as mentioned. Paul Thoryk, owner and developer, advised he had been ill and was not able to reply back to the City. Constructi on fi nanci ng is wi th the Ameri can Vall ey Bank. Chairman Cox asked Director Desrochers how long it will take to get the plans going and was advised it will take approximately three weeks. Member Malcolm made the motion to bring the report back in 45 days. - ." _.P______'_________··_______________ Minutes of Regular Meeting of Redevelopment Agency -3- March 6, 1986 Member Scott asked what provisions existed to protect the Agency in the event of non-performance. Director Desrochers advised that Mr. Thoryk and his partners paid cash for the property, and there is a reverter cl ause in the Di sposi ti on and Development Agreement which is our protection for non-performance. Said agreement allows for a stipulation that the Agency can take a fair amount out for cost if there is any default on Mr. Thoryk's part. Member Moore said we look forward to a fine entity and hope it will be done soon. MSUC (Malcolm/Moore) to allow additional time and report back in 45 days; if sufficient progress isn't made, then the reversion will be considered. OTAY VALLEY ROAD 9. REPORT: CONSTRUCTION OF AN ACCESS ROAD IN THE VICINITY OF BRANDYWINE AND OTAY VALLEY ROAD; OTAY VALLEY ROAD PROJECT AREA Redevelopment Coordinator Kassman advised that Mr. Werdin, the developer, is asking the Agency to consider the project this year for funding even though it will be in next year's budget. If Agency or City does not choose to fund this project, he may wish to rethink his proposal. Member Mal colm asked Redevelopment Coordi nator Kassman to outl ine where the project is at this time; expressed that seller gave purchaser a break on price because he knew conditions regarding the access road. When he purchased it, he knew everything and the price reflected those detriments and drawbacks to the property. Member Cox stated the only person to benefi t by the access road is the property owner behind the property and he is not ready to develop. Redevelopment Coordinator Kassman stated that Mr. Werdin sees no reason why he shoul d pay for curbs, gutters, and sidewalks on a road he has no use for. Also, Mr. Werdin did know when he bought the 1 and that there woul d be an easement to the parcel to the west. The City is requesting that the street be constructed at this time. The problem is that no agreement could be reached wi th Mrs. Cushman (the property owner to the west) and the sell er and the buyer concerning the construction of the street. The City is requesting that the street be constructed in order to provi de fi re access and to assure that there wi 11 be access to the Cushman parcel. The purchaser, Mr. Werdin, knew that he had to provide an easement but he did not know that the City woul d require construction of the street at this time. The City wants to provide fire truck access to the two buildings that are being constructed. The owner did not pursue the tentative map and so the potential property owner never had an opportunity to oppose the condition of the map. He understood there was a condition to construct a road attached to the tentative parcel map approval. Hi s proposal is not to subdivide the property but to develop it out as one - - ----.- _~__'_"___'"_"_____"".__.'.. __'0- Minutes of Regular Meeting of Redevelopment Agency -4- March 6, 1986 parcel. The previous developer was only purchasing 6 acres, leaving the property at Otay Vall ey Road and Brandywi ne to the current ownershi p. The current developer is purchasing the entire 10 acres and felt that he did not have to subdivide the property and, therefore, not construct a road. Member Scott questions the motives of the owner; he could have developed this without building the street. Is the City requ i ri ng him to construct the street because the Fire Dept. wants access to the building? Member Malcolm asked if the buildings will have to be moved to provi de room for the fire trucks to get in and out. Mr. Kassman advised that these plans will probably be revised to some degree as they have not been through all City reviews. Member Moore asked if the road has to be this particular type of constructi on. Is it a fire lane or a City street? Redevelopment Coordinator Kassman said there is no paper road there now. The current owner, Mr. Shinohara, is requi red to provide an easement to the Cushman property and he chose to put it at that point. Member Malcolm stated Mr. Shinohara does have a requirement to give an easement to the Cushman property. Redevelopment Coordinator Kassman stated since the development of the J. T. Raci ng Bui 1 di ng, the City is di scouragi ng curb cuts and streets comi ng out into Otay Valley Road. Member Moore: What is the situation if Mrs. Cushman does not develop her property? r~ember Malcolm indicated he still does not see the reason for us to pave the road all the way since it will break up from non-use. Redevelopment Coordinator Kassman indicated that if the road is being required by the City, the developer does not want to bu il d its i nce he wi 11 not be usi ng it. The Cushman's have offered no cooperation. Chairman Cox moved to continue this item and ask staff to ask Mr. Werdin to be here with further justification and rationale for extending the road all the way back to the property line. MSUC (Cox/McCandliss) that Mr. Werdin be requested to appear before the Redevelopment Agency members at the next meeting on March 20, 1986. -,--, Minutes of Regular Meeting of Redevelopment Agency -5- March 6, 1986 HOUSING/BLOCK GRANT lOa. REPORT: STATUS OF RESIDENTIAL LOT 8 DEVELOPMENT MSUC (Malcolm/Moore) to accept report. Mr. Di ck Zogob, developer, addressed the Members stati ng he went to the San Diego loan committee at Oldstone Bank yesterday and received approval. Corporate loan committee is meeting on Monday and we are assured they will approve the loan on Monday in Rhode Isl and. The constructi on agreement has been entered into with Comfort Construction and they are prepared to proceed with grading as soon as permits are issued. Mot i on to allow the change in the performance schedul e and come back wi th an amendment to the Supplemental Disposition and Development Agreement. MSUC (Cox/McCandliss) to amend the Supplemental Disposition and Development Agreement to allow change in performance schedule. Member Moore asked if the Agency's low- and moderate-i ncome housi ng fund carries restrictions that all units be reserved for moderate income occupancy. Chairman Cox stated we have requirement now for 100 percent occupancy for low- and moderate-income residents and was of the opinion that it is more consi stent to requi re 75 percent. He then moved that the requi rement change to 75 percent 1 ow- and moderate-income housing occupancy. Member Moore seconded for discussion. Member Moore stated that most people living there will be of moderate income. Assi stant Di rector Gustafson stated there is no State regul ati on when you speak of a percentage regarding the low- and moderate- income housing fund; we can choose to spend for any amount of restricted units. Historically we have looked for about 75 percent of the units as low and moderate. We have no problem from the regulatory view adjusting it from 100 percent to 75 percent. It would give us the opportunity to free up the top floor units, which might be the units that bring a higher rent. Member Malcolm stated he would prefer to move it down to 20; the higher incomes are what we are lacking, in order to help make the redevelopment work. Member Malcolm voted against the motion. Assistant Director Gustafson stated that the State says that we will use that money to assist low and moderate housing, but the Agency would be subject to a legal claim that perhaps we had not used the money principally or prudently to assist low- and moderate-income housing. ____on __On - - _.. _____,,_,,___. __,.,____~.___.____.___.__._"'_. Minutes of Regular Meeting of Redevelopment Agency -6- March 6, 1986 Another reason why 75 percent of the project was attractive is that they would yield a per-unit assistance from the low- and moderate-income housing fund of about $12,000 which is consistent with previous use of this fund. Executive Director Goss stated that we have to indicate to the State how those funds are spent. Assi stant Di rector Gustafson sai d that an annual report is provi ded to the State. They do not have any power as to how we use the funds; however, the Agency would then be vulnerable to litigation. Chairman Cox said with the motion on the floor, it might be helpful to take action on that tonight and if there is a desire to look at a lower figure, to refer it back to staff. While everythi ng looks very promising with the summary letter from Oldstone, the act of dropping down to 75 percent will reinforce the financial feasibility of this project to the lending institution. Chairman Cox: Motion to reduce commitment from 100 percent low and moderate to 75 percent and, if it is agreeable to the lenders, that staff come back with an evaluation on whether a lower percentage for 1 ow- and moderate-income occupancy woul d be appropri ate. Member Moore seconded - Moti on carri ed - Member Malcolm opposed. Member McCandl i ss asked if something could be done to ensure construction standards are bei ng met on thi s project. Motion to refer to staff and Mr. Zogob for ways to pay special attention to construction quality to hopefully cut down on any problems that may arise. Member McCandliss moved to have staff meet with developer. Motion unanimously accepted. lOb. RESOLUTION EXERCISING OPTION TO RE-ENTER AND TAKE POSSESSION OF FOCUS AREA PARCEL 8 Because of the action to change the development schedule, this resolution was not acted upon. TOWN CENTRE I 11. RESOLUTION APPROVING A CONTRACT WITH J&S ASP HAL T PAVING, SEALING & STRIP ING COMPANY, INC. FOR RESTRIPING THE VILLAGE PARKING STRUCTURE Member McCandliss had several questions regarding J&S Asphalt Paving, Sealing & Striping Co. as to getting all three level s done at one time and thereby getting a better price. Community Development Specialist Jim Davies said he reviewed that alternative when the project was out to bid; therefore, different estimates for the other levels was solicited. The Public Works Department is of the opinion that the other floors could go a little longer. Member Malcolm left room. (8:00 P.M.) Minutes of Regular Meeting of Redevelopment Agency -7- March 6, 1986 Discussion pursued as to the 1 en gth of time re-striping lasts; cyc 1 e of re-striping. RESOLUTION OFFERED BY MEMBER McCANDLISS, the reading of the text was waived by unanimous consent, passed and approved. (Member Malcolm out of room. ) Member Malcolm returned to the dais at 8:10 P.M. CHAIRMAN'S REPORT: Chairman Cox requested staff to prepare cost estimate to improve the balance of Bay Boulevard between J & F Street. McCandliss seconded. Moti on carri ed unanimously. DIRECTOR'S REPORT: Executive Director Goss referred to Community Development Director Desrochers' document Status on Bayfront. Fi rs t synopsi s handed out. Additional information will be available soon. Changes are welcomed. MEMBERS' COMMENTS: (MSC Moore/Cox) - Comments on reducing employee cars in downtown parking lot; moved that the staff review a joint subsidy program to reduce the number of employee vehicles in downtown parking district. Member McCandliss stated that San Diego Historical Soci ety Newsl etter shoul d have an article on the forthcoming 75th Anniversary of the City of Chula Vista appea ri ng in the Newsletter and the City shoul d promote thi s through our contact with the Society. CHAIRMAN COX MOVED TO ADJOURN TO CLOSED SESSION TO DISCUSS ACQUISITION OF PROPERTY AT 3rd & H St. and Sierra Club lawsuit. All aye except Member Scott who i ndi cated a possible conflict of interest on 3rd & H St. Member McCandliss seconded - passed unanimously. ADJOURNED at 8:15 P.M. to the Regular Meeting of Thursday, March 20, 1985, at 4 P.M. WPC 21SSH ___'___"__"'_"'_.'__. __n'" "_n.... ... --- --_._--~-- ._-~._-