HomeMy WebLinkAboutrda min 1986/04/01
MINUTES OF AN ADJOURNED REGULAR MEETING
OF THE REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA, CALIFORNIA
Tuesday, April 1, 1986 Council Chamber
5:49 p.m. Public Services Building
MEMBERS PRESENT: Chairman Cox, Members Malcolm, Moore,
Scott, McCandliss
MEMBERS ABSENT: None
STAFF PRESENT: Executive Director Goss, Acting Agency
Attorney Gill , Executive Secretary
Desrochers
1. RESOLUTION APPROVING LENDING AGREEMENT WITH ORANGE TREE
ACQUISITION ASSOCIATION FOR DOWN PAYMENT FOR
PARK ACQUISITION, APPROVING ADDITIONAL
FINANCIAL ASSISTANCE TO ORANGE TREE
ACQUISITION ASSOCIATION IN AN AMOUNT NOT TO
EXCEED $425,000 AND SUBJECT TO SUBSEQUENT
APPROVAL OF A LENDING AGREEMENT CONTAINING
CERTAIN CONDITIONS, AND APPROPRIATING FUNDS
THEREFOR
Assistant Community Development Director Gustafson reported on
March 20, the Agency approved in concept financial assistance to
the Acquisition Association of Orange Tree Mobilehome Park for
park acquisition and conversion. The Agency requested further
financial, benefit, and conversion support information before
formally approving an appropriation of funds. Further information
has been obtained and recommended conditions for Agency
participation have been developed. A lending agreement for down
payment assistance has been prepared. Additionally, a meeting of
concerned Orange Tree residents has been addressed by staff.
It was recommended the Agency appropriate $500,000 from the
unappropriated revenue of the Agency's low and moderate income
housing fund, which, subsequent to the expenditure of $850,000 on
the One Park Project, would leave a balance of approximately $2.2
million. An expenditure of $75,000 will be authorized by
execution of the attached down payment loan agreement.
Expenditure of the balance of the appropriation will not be
authorized until a loan agreement is approved by the Agency.
Redevelopment Agency - 2 - April 1, 1986
Mr. Olen Mercer, Chula Vista, representing the Orange Tree
Mobilehome Park owner, Mr. Palmer, discussed the following: Mr.
Palmer is currently in bankruptcy proceedings and wishes to sell
the park; the owner has received 4 other offers for the park
(three for $3.9 million); appraised value of each condominium lot
is between $32,000 to $40,000.
Jim Simmons, Vice Mayor of Vista, explained the mobilehome park
conversion which was undertaken in the City of Vista. He
indicated Continental Associates is a first class outfit and
anticipated other mobilehome park conversion situations within the
City of Vista will be under the guidance of that firm.
Sue Loftin, representing, Continental Associates, commended the
Community Development Department staff for their assistance in
this conversion effort. Referring to the packet of economic data,
delivered to the Council on Monday, she noted the following: two
loan funding programs are available; gap loan program of Home
Federal; rent structure to be provided as requested by City staff;
gap funding and amount of rent is based on gap funding at a fixed
rate of three years; agreement should be flexible to provide a
rate adjustment for the purpose of debt service for the three-year
period.
Discussion followed concerning possibility of the City financing
the loan rather than a private lending institution; questioned
balance remaining in the Low and Moderate Income Housing Fund if
the appropriation is granted; creating a mobilehome park for
dislocated individuals in the City.
Hope Coombs, 521 Orange Ave. , Chula vista, requested the City
Council consider a loan to her and 30 other residents of the
mobilehome park who do not qualify for a Low and Moderate Income
Housing Fund loan.
In response to Ms. Coombs' concern, Assistant Director Gustafson
explained the City proposes to assist low and moderate income
households. Tenants whose income is above this assistance can
qualify for other conventional loans.
Member McCandliss questioned the outcome of the vote taken at the
mobilehome park regarding this park conversion. Assistant
Director Gustafson stated that 108 park tenants out of 150
supported the conversion. Therefore, 72% of the park was in favor
and the state requirement for financially assisting a park is 66%.
RESOLUTION OFFERED BY MEMBER MALCOLM, the reading of the text was
waived by unanimous consent.
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Redevelopment Agency - 3 - April 1, 1986
Member Scott remarked since this information (the economic data
packet from Continental Associates and staff's report) were
recently distributed to the Agency, members should take further
time to review the documents.
Member Malcolm withdrew his motion.
MSUC (Malcolm/Scott) to continue action on this item until
Wednesday, Apr il 2, 1986 at 4:00 p.m. (Joint City
Council/Redevelopment Agency meeting).
2. DIRECTOR'S REPORT None.
3. CHAIRMAN'S REPORT None.
4. MEMBERS' COMMENTS
a. Member Malcolm noted the donation of land by EastLake
Development Company for a university in the South Bay.
ADJOURNMENT AT 6:25 p.m. to the joint meeting with the City
Council on Wednesday, April 2, 1986 at 4:00 p.m. and the regular
meeting on Thursday, April 3, 1986 at 7:00 p.m.
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Adele A. Sarm ento
Deputy City Clerk
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0777C
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