HomeMy WebLinkAboutrda min 1986/04/17
MINUTES OF AN ADJOURNED REGULAR MEETING OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA
Thursday, April 17, 1986 Council Conference Room
4:00 p.m. City Hall
ROLL CALL
MEMBERS PRESENT: Chairman Cox, Members McCand1iss, Moore, and Malcolm
STAFF PRESENT: Executive Director Goss, Assistant City Manager Asmus,
Communi ty Development Di rector Desrochers, Agency
Attorney Harron, Assistant to City Manager Morri s,
Assistant Community Development Director Gustafson,
Di rector of Finance Christopher, Redevelopment
Coordinator Kassman, Transi t Coordinator Gustafson,
Deputy City Attorney Moore
ITEM NO. 1 - APPROVAL OF MINUTES
MSUC (Cox/McCand1iss) to approve the minutes of March 25, 27, and April 2, 3,
1986.
Member Malcolm apprised the Redevelopment Agency members of a situation
regarding Mr. George Merziotis, who currently holds an interest in a parcel
bei ng consi dered by the Hotel Se 1 ecti on Commi ttee. In brief, Mr. Merziotis
reported that he was misinformed by City staff regarding scheduled meetings of
the Hotel Selection Committee, and was also misinformed on his right to attend
those meetings. Although Mr. Desrochers stated that he did make an effort to
contact Mr. Merziotis to inform him of the April 16, 1986 meeting, his calls
were not answered.
MSUC (Cox/Malcolm) to be referred to Agency Attorney to compose a policy, with
respect to proper notification in a timely manner to all interested parties
involved in eminent domain acquisitions, concerning all meetings which may
involve their interests.
ITEM NO. 2 - REPORT: Quarterly Report - Port Commissioner
Noting the absence of Port Commissioner Creaser,
Chai rman Cox suggested thi s i tern be carri ed over to
May 15, 1986.
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Redevelopment Agency Minutes -2- April 17, 1986
ITEM NO.3 - 1986 TAX ALLOCATION BOND SALE, PRELIMINARY REVIEW
3a. RESOLUTION 673: AUTHORIZING A CONTRACT WITH MILLER & SCHROEDER
FINANCIAL, INC. , FOR FINANCIAL SERVICES FOR
REFINANCING THE BAYFRONT TOWN CENTRE TAX
ALLOCATION BOND ISSUE
3b. RESOLUTION 674: AUTHORIZING AND DIRECTING THE SALE OF NOT TO
EXCEED $40,000,000 PRINCIPAL AMOUNT OF BAYFRONT/
TOWN CENTRE REDEVELOPMENT PROJECTS 1986 TAX
ALLOCATION BONDS, AND AUTHORIZING PROCEEDINGS FOR
COMPETITIVE SALE OF BONDS.
Mr Desrochers requested a correction be made to Reso1 uti on 674, Section 1.
Sale of Bonds: shou1 d read "Thursday, May 15, 1986," not "Thursday, May 14,
198b" .
Mr. Alan Miller, Miller & Schroeder Financial, Inc. , presented a proposal
highlighting the aspects of enteri ng into a financial agreement between
Mi 11 er & Schroeder F i nanc i a 1, I nc., and the Redevelopment Agency to refi nance
the Bayfront/Town Centre tax allocation bonds and notes.
In essence, Miller & Schroeder Financial, Inc., will structure bonds in the
amount of $38,655,000 for purposes stated above. In addition, this agreement
will payoff 1984 tax allocation notes (due June, 1987) six months early which
will save interest and one year's fee for the letter of credit.
This agreement will provide approximately $6.5 million in new money to be used
for redevelopment purposes within the project area. These bonds shall stay in
escrow until such time as tax i nc rements are high enough to meet debt
service. If not, said bonds will be called to retire that portion which was
set asi de for escrow, and enable $2.37 mill ion to be freed-up for
redevelopment purposes.
Due to Congress' recent action to postpone the effective date of tax reform
Bill HR3838 until 9/1/86 (under which this type of financial agreement legally
falls), it would be in the Agency's best interest to enter into this agreement.
MSUC (Cox/Malcolm) to enter into a contractual relationship with Miller &
Schroeder Financial, Inc., to direct sale of bonds not to exceed $40,000,000.
ITEM NO.4 - PUBLIC HEARING: Proposed financing of a portion of the cost to
develop the Chu1a Vista Bayfront Trolley Station
at 'E' Street and 1-5 with Redevelopment funds
4a. RESOLUTION 675: DETERMINING THAT NO OTHER REASONABLE MEANS OF
FINANCING THE BAYFRONT TROLLEY STATION ARE
PRESENTLY AVAILABLE TO THE CITY
4b. RESOLUTION 676: APPROPRIATING FUNDS FOR THE DEVELOPMENT OF THE
BAY FRONT TROLLEY STATION
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Redevelopment Agency Minutes -3- April 17, 1986
This being the time and place as advertised, Chairman Cox declared the public
hearing open.
A brief project update was given by Steve Ron, Senior Transportation
Specialist, Department of Public Works, County of San Diego, who serves as the
Project Manager for the Bayfront Trolley Station project. Mr. Ron presented a
"bird's eye view" plan of the proposed project with details specifying the
location of the Information Center, Trolley/Bus Mini-Shelters, and public
restrooms (restrooms wi 11 retain security features). Mr. Ron also reported
that the proj ect was adheri ng to schedu1 e and budget, and anticipates the
Trolley Station opening on 10/16/86.
There being no further public testimony, either for or against, the pub1 i c
hearing was closed.
Membe r Moore voiced his concern as to having the Informati on Center
self-supporting and operated by the City of Chu1 a Vi sta, and respectfully
requested staff to consi der thi s recommendati on as a primary opti on when the
proposal is presented to the Council with recommendations consisting of how to
operate and maintain the Information Center.
Reso1 uti on offered by Chai rman Cox, the readi ng of the text was wai ved by
unanimous consent, passed and approved unanimously.
CONSENT CALENDAR (5-7)
MS (Cox/McCand1iss) to approve the Consent Calendar.
Member Malcolm stated his opposition to Approvi ng Agreement Amending
Cooperative Agreement between the Chu1a Vista Development Agency and One Park
Ltd. Approving Amended Sub-ordination Agreement and Promi ssory Notes and
Approving Disbursement of funds Agreement (Item 7).
The motion to approve the Consent Calendar passed with Member Malcolm opposed
to Item 7.
With respect to the fiscal impact of this project, Mr. Merziotis inquired as
to the Agency justifying a $2,000,000 profit on property purchased to
construct the Hotel. Mr. De s roc he rs reported that the monetary dispute
between the Redevelopment Agency and Mr. Merziotis had been referred to the
Superi or Court (subject to 1 i ti gati on) to render a fi na1 deci si on as to the
fee interest for the realty owned by Mr. Merziotis and his associates.
Member McCand1 i ss reported on the actions of the Hotel Se 1 ec t i on Committee
meeting of 4/16/86. The Committee reviewed the top two (2) out of eleven (11)
proposals submitted by developers to construct the Hotel, and will visit
actual facil ities constructed by these two developers. Thi swill enab1 e the
Hote 1 Selection Committee to render a fi na 1 decision as to choosing a
deve 1 oper or to determi ne if addit i ona 1 development companies need to be
cons i dered.
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Redevelopment Agency Minutes -4- April 17, 1986
Member Moore inquired as to the current status of the off-ramp located at I-5
and "E" Street. Community Development Director Desrochers reported that the
development of said off-ramp will constrain the provision of utilities to that
site. Ca1Trans is reviewing construction designs which modify the north-bound
exit to subsequently coincide with Bay Blvd.
ITEM NO.6 - RESOLUTION 677: APPROVING A CONTRACT WITH DIMENSIONAL
COORDINATES, INC., FOR THE DESIGN OF THE TOWN
CENTRE I PUBLIC SIGN PROGRAM
In response to funds in the FY 1985-86 budget being appropriated to the Town
Centre Public Sign Program (which included the design, construction, and
installation of information signage), it was decided that out of the four (4)
bids submitted to complete the project, Dimensional Coordinates, Inc., was
chosen as the lowest bidder.
Community Development Director Desrochers recommended the Agency approve the
contract with Dimensional Coordinates, Inc., in the amount of $7,924,
exempting sales tax, for the design, construction, and installation of
informational/directional signage in Town Centre I Public Sign Program.
ITEM NO.7 - RESOLUTION 678: APPROVING AMENDING AGREEMENT TO THE COOPERATIVE
AGREEMENT WITH ONE PARK LIMITED FOR LOAN FUNDS,
APPROVING AMENDED SUBORDINATION AGREEMENT AND
AMENDED PROMISSORY NOTE, AND APPROVING
DISBURSEMENT OF FUNDS AGREEMENT
On October 17, 1985, a cooperative agreement between the Redevelopment Agency
and One Park Limited was entered into for loan funds to assist in the
development of a 94-unit residential rental project on Lot 8 of the Town
Centre Focus Area. This agreement was amended on March 31, 1986, which
consists of certain changes regarding the project phasing (project completion
date of 2/1/87 changed and approved to 4/1/87) and loan interest (agency loan
funds to be deposited in the Old Stone Bank's disbursement account for the
project's construction loan and is to be di sbursed in accordance wi th the
bank's standard disbursement agreement and procedure).
This amendment will be beneficial to both parties involved due to the
clarification of interest calculation and development phasing.
ITEM NO. 8 - UNANIMOUS CONSENT
RESOLUTION 679: RESOLUTION AMENDING RESOLUTION NO. 668 OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
ACCEPTING PERMANENT EASEMENT FOR THE NATURE
INTERPRETIVE CENTER AND ACCESS ROAD
On March 25, 1986, the Redevelopment Agency approved Resolution 668 which
transformed into an agreement with the Chu1a Vista Investment Company to apply
$65,000 toward access and Nature Interpretive Center easements on Gunpowder
Point.
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Redevelopment Agency Mi nutes -5- Apri 1 17, 1986
Subsequent to the passage of thi s amendment, it was found that an addi tiona1
$35,000 is needed to complete Phase I work for the development of the
Interpretive Center and Phase II grading for the proposed area. Mr.
Desrochers reported that grading is necessary due to the fact that it
encompasses more than the actual Interpretive Center site since it touches the
residential structures and foundations of the old Gunpowder Point, and that
approval of this resolution would decrease City liability in making the
Interpretive Center a safe and welcome site for the public to visit. The
total project cost, $100,000, wou1 d come from the Nature Interpreti ve Center
Constructi on account to the Santa Fe Land Company to construct a permanent
easement for said project.
Member Malcolm voiced his opposition to the extent of the proposed grading
based upon his beliefs on how the State Coastal Commission would perceive this
project.
Community Development Director Desrochers also reported that the City's Public
I nformati on Officer was extensi ve1y vi deotapi ng all of the proposed
Interpretive Center site to document evidence of the condition of the site.
Member McCand1iss voiced her support for this project with respect to
conformance with the City's Local Coastal Plan, and with promises that were
made to the community, environmental community, and residential community to
clean up said area.
Resolution offered by Chairman Cox, the reading of the text was waived by
unanimous consent, passed and approved unanimously. (Member Malcolm opposed.)
DIRECTOR'S REPORT
None.
CHAIRMAN'S REPORT
MSUC (Cox/McCand1iss) for a Closed Session to discuss the Section 404 permit.
MEMBERS COMMENTS
Member Malcolm expressed his concern of having the City's consultant
personally contacting the Coastal Commission with instructions on how to
handle certain issues (i .e.. consultant had requested Coastal Commission not
to forward Jones-Stoke Report to Washington, D.C., subsequent to request for
Coastal Commission to do so by Member Malcolm).
MSUC (Cox/Malcolm) that the City send a letter to Coastal Commission
apologizing for the past confusion and specifying that, in the future, only
persons from City staff will be formally contacting the Coastal Commission to
carryon Ci ty of Chu1 a Vi sta busi ness. Thi s will be further di scussed in
Closed Session following adjournment.
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Redevelopment Agency Minutes -6- April 17, 1986
Member Malcolm reported on the 4/16/86 Port Authority meeting with respect to
San Di ego's proposed Con venti on Center. Due to the financi a1 forecast that
rebi ddi ng the construction/ development of the Convention Center cou1 d exceed
the $200,000,000 mark, it was Member Malcolm's feeling to respect the general
public's interest and request the San Diego City Council/Port Authority to go
ahead and commence negotiations with the lowest bidder for construction of the
Conventi on Center si nce time and money is of the essence. Doing so wou1 d
dec rease the prospect of having thi s project hi nder any future South Bay
projects.
Member Malcolm further requested that Mr. Phil Creaser, the City's Port
Commi ss i oner, investigate and report back to the Agency who on the Port
Authori ty is responsi b1 e for not meeti ng schedu1 ed deadlines and cost
overruns. Action will be taken with respect to findings, if deemed necessary.
MSUC (Cox/Malcolm) to have Chairman Cox personally visit the San Diego City
Counci 1 on 4/21/86, and appri se them of the City of Chu1 a Vi sta' s support to
commence negotiations with the lowest bidder to implement the development of
the San Diego Convention Center.
Chairman Cox distributed brochures regarding the Second Harbor entrance.
The Agency recessed to Closed Session at 5:15 p.m. The Recording Secretary
was excused and the Executive Secretary reported Closed Session ended
at 6: 15 p.m.
ADJOURNMENT at 6:15 p.m. to the regular meeting on Thursday, May 1, 1986, at
7 p.m.
WPC 2249H
Executive Secretary
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