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HomeMy WebLinkAboutrda min 1986/12/18 MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA December 18, 1986 Council Conference Room 4:10 p.m. City Hall ROLL CALL PRESENT: Chairman Cox; Members Nader, Moore, McCandliss, Malcolm ABSENT: None ALSO PRESENT: Executive Di rector Goss, Agency Attorney Harron, Communi ty Development Director Desrochers, Assistant Communi ty Development Director Gustafson, Redevelopment Coordinator Kassman, Di rector of Management Services Thomson ITEI4 NO.1: RESOLUTION 760 - ENTERING INTO AN EXCLUSIVE NEGOTIATION AGREEMENT WITH INNSUITES I NNTERNATIONAL , INC. FOR THE DEVELOPMENT OF A HOTEL AT BAY BOULEVARD AND "E" STREET, WITHIN THE BAYFRONT PROJECT AREA On October 2, 1986, the Agency approved InnSuites Innternationa1, Inc. as the developer for the Agency owned Street/Merziotis property in the Bayfront Project Area and authorized staff to prepare an exclusive negotiation agreement with the developer for a period of 180 days. Redevelopment Coordi nator Kassman referred to a repl acement agreement before the Agency and noted the agreement, as amended, is acceptable to I nnSui tes. Paragraph 3 was revised changing "shall" to "proposes." Also, the developer asked for a sentence to be added to paragraph #5: "The Agency may participate in the additional costs of select features it deems necessary and requires." Member McCandliss asked if the change in Paragraph 3 is in the best interest of the Agency by opening up the possibility the developer may come in with less than 150 rooms initially. Mr. Kassman responded staff fel t the proposal of the developer was a clear statement of intention. Member Malcolm asked if the Agency is prohibited from making a profit on this property. Agency Attorney Harron responded no. Member Malcolm further noted it was hi s understanding because this particular parcel was condemned for public purposes, it cannot be sold for a profit. Mr. Harron stated it is not a good bas is to condemn property because you are going to make a profit, however, if you have a valid public purpose to condemn it, the re is no prohibition against making a profit. --------- .m_..___·_______~______.____ -~._---_..- Redevelopment Agency -2- December 18, 1986 Member Malcolm further questioned why this property is being sol d versus 1 easing it. Community Development Di rector Desrochers noted that staff is evaluating this and that it is not a closed issue under the terms of the sUbject agreement. Member Malcolm stated in this agreement the Agency is selling the property at too low of a pri ce and the Agency is al so offeri ng to pay the developer for additional costs. He asked how bi ndi ng the agreement is. Mr. Desrochers stated this agreement means that we will negotiate with no others for a 6 month peri od. Regarding the $8 a squa re foot pri ce, this property has utility and access problems due to the new freeway off-ramp and interchange. There are sewer, water and roadway expenses that the developer is goi ng to have to bear. The Agency does not necessarily have to include a price in this document, however, in the developer competition all of the proposers stated a price per square foot and that is what this agreement reflects. 14ember McCand1iss asked when the Request for Proposals went out, what statements were made, if any, about the value, and how the value of the land be determi ned? Mr. Kassman stated that developers were asked to indicate how much they would pay for or lease the land. The highest value was approximately $8 a squa re foot. Member McCandliss further asked if in accepting their proposal is the Agency also accepting the land value offer. Mr. Harron responded no, all the Agency is doing is saying that of all the proposals received, InnSuites' was liked best. Because of this, the Agency is willing to exclusively negotiate with them for 6 months. If at the end of the 6 months the Agency does not like the end result, then the Agency can say no. Member Malcolm suggested hiring engineers to do an improvement plan for the site and a cost breakdown of what it is going to cost. He noted the need to know more i nformati on to negoti ate properly. Mr. Desrochers stated the new Tidelands Avenue configuration is going in and staff is working on getting the costs for that. Right now staff is centeri ng on the Bay Bou1 eva rd and E Street i ntersecti on worki ng on all of the costs; how Ca lTrans is goi ng to enter in at "E" Street and Bay Boul evard and whether or not di rect access from E Street will occur. These issues need to be determined duri ng the negotiation process. Chairman Cox asked why an amount needs to be specified in this agreement. Mr. Harron responded that an amount does not need to be specified. Member McCandliss questioned if it would be difficult to deal with InnSuites if the part of the agreement specifyi ng $8.00 per square foot was del eted from the agreement. Mr. Kassman stated InnSuites feels strongly about not going over tha t amou nt. This figure gives them some degree of comfort, however, he felt it could be worked out. MSUC (McCandliss/Cox) to delete from Section 5 of the agreement: "based upon the Developer's offer of $8.00 per square foot for purchase of the Site." -..---, - -- ---.-.- ...-.-.- ---~-- Redevelopment Agency -3- December 18, 1986 Mr. George Merziotis, Merziotis Properties, addres sed the Agency. He noted that he feels that the City is premature in going forward with this agreement before the legal process is over. He also noted that selling the property at $8.00 a square foot when it is worth $30 - $40 a square foot is not fai r to the tax payer. RESOLUTION OFFERED BY MEMBER McCANDLISS AS AMENDED, the readi ng of the text was waived by unanimous consent, passed and adopted unanimously. ITEM NO.2: RESOLUTION 761 - ACCEPTING DEEDS FOR PROPERTY LOCATED AT 321 H STREET IN CHULA VISTA AND DIRECTING THE SECRETARY TO RECORD ACCEPTANCE OF THE DEED, AND APPROPRIATING FUNDS FOR THE ACQUISITION At the meeti ng of December 4, 1986, the Agency approved the purchase of property located at 321 "H" Street. The transacti on is currently in escrow. A deed for the property is being submitted into escrow and will be conveyed to the Agency upon close of the escrow. Acceptance of the deed and appropriation of funds for the purchase are required. RESOLUTION OFFERED BY Mn1BER MALCOLM, the reading of the text was waived by unanimous consent, passed and adopted unanimously. ITEM NO.3: REPORT: PARKING AND DEVELOPMENT SCHEME PROPOSED BY HUGH CHRISTENSEN FOR LANDIS STREET The Agency requested that Mr. Christensen's parking and land use development proposal for Landi s Avenue between Davi dson and uFII Streets be studied to ascertain its feasibility. The plan includes the closure of Landis Avenue and the consolidation and redevelopment of parcels fronting Landis Avenue. Community Development Director Desrochers introduced Mr. Hubert Chri stensen, 376 Center Street, #350, Chula Vista. Mr. Christensen handed out a letter to the Agency outl ini ng hi s proposal for parking and land use downtown. Mr. Christensen noted the need for additional parking downtown. He also noted the need for increased density of residential areas in the downtown. I n order to keep the village concept in the Town Centre I plan, there is a need to have people living close in. The other need discussed was promotional activities to draw outside people in. MS (McCandliss/Ma1colm) to accept recommendati on of staff and add review of residential opportunities downtown. Member Moore noted that he would add review of the density allowed for res i denti al units along with what properti es under the proposa 1 woul d requi re eminent domain and what is the associated costs. The motion passed unanimously. - - -,_._.__.--._._.._"-----_.__...._.._--~_.- ----.-..--".-- Redevelopment Agency -4- December 18, 1986 ITEM NO.4: RESOLUTION 762 - APPROVING AGREEMENT WITH ORANGE TREE ACQUISITION ASSOCIATION FOR GRANT FOR PUBLIC IMPROVEMENTS TO ORANGE TREE MOBILEHOME PARK On December 9, the City Council di rected that staff bri ng the Redevelopment Agency a resolution providing a grant to the Acquisition Association of Orange Tree Mobilehome Park for pub1 ic improvements to Orange Tree Mobilehome Park required by the Subdivision Map process. Assistant Community Development Director Gustafson reported that a component was left out of the Grant Agreement. He recommended a verbal amendment to the Grant Agreement that would have the Grantee assigning its rights to the Agency to pursue compensation for the substandard fire protection system and conditions in the park. Mr. Gustafson suggested having the language fashioned by the City Attorney. MSUC (Mal colm/McCandl i ss) to modify the agreement subject to terminology of the City Attorney. Member Moore expressed concern that a provi si on needs to be made to protect the $188,000 investment. He would like to see that if the park is sold within a certain time period that the money would be paid back to the Agency. David Summers, 7970 Convoy Court, Chula Vista, representing Continental Associates, stated he has no objection to such a provision. MSUC (Moore/McCand1 i ss) that the City Attorney provi de the 1 anguage to amend the Grant Agreement for recompensati on of the Ci ty' s util i ty investment of $188,000 if and when the entire park is sold within a 10 year time period. (4-0; Chairman Cox not present for the vote.) Member McCandl iss stated that she does not have a problem with paying for these improvements, noting that it is something that is needed to bring this conversion to a conclusion. She further stated it is not something necessarily that is the responsibility of the City/Agency to pay, but it fits into the criteria for the low and moderate income housing money. If there is goi ng to be any other conversi ons in the City, accepti ng a park and any liabilities of the park should be the responsibility of the people who are going to buy it or the group that sets itself up as the facilitator. Under the new Relocation Ordinance for Mobi1ehome Parks, mobi1ehome parks may place .a proposal or cl aim agai nst low and moderate income money. Any converti ng park would have a right to do that but they would then compete for money like any other group. Ms. McCand1iss stated this should be the policy and direction to go forth with from tOday. RESOLUTION OFFERED AS AMENDED BY MEMBER MALCOLM, the reading of the text was waived by unanimous consent, passed and adopted unanimously. Member McCandliss asked staff members if there was a need for a written policy regarding funding of future mobi1ehome conversions. Mr. Goss stated staff is looking for a policy from the Agency that states that the funding for this project is not the standard for the future. - "0_- . '., '. ___,__,,__.,'_, __'.____._____.._.__._, Redevelopment Agency -5- December 18, 1986 Mr. Gustafson stated that a few a weeks ago the Agency approved the Mobi1ehome Assistance Program Policy which included a stipulation that before a conversion of another mobilehome park is considered certain things such as an engineering study, appraisal of the property, etc., would have to be submitted prior to any other action. The policy lays out a procedure; and if the Agency would desire, this could be brought back to take another look at it. Member McCandliss responded that she would like to have it brought back. MS (Cox/McCandl i ss) that the project fundi ng for thi s project is not the standard for future projects; direct staff to bring back a report on procedures that shoul d be util i zed in the future regardi ng mobi1ehome park conversi ons. Member Malcolm stated he would like to consider future conversions on a case by case basis. This was incorporated into the motion. The motion passed unanimously. ITEM NO.5: RESOLUTION 763 - APPROVING $5,000 EXPENDITURE TO FUND THE SAIL AMERICA ENTRY IN THE AMERICA CUP COMPETITION At its December 9 meeting, the City Council referred to the Redevelopment Agency the request from Supervisor Brian Bilbray for financial support for the Sail America entry in the America's Cup competition. The Council directed that the resolution considered by the Agency be for $5,000. Di rector of Management Servi ces Thomson reported that the Stars and Stri pes entry has advanced to the semi -fi nal s. He al so reported that the San Di ego City Council's Public Services and Safety Committee recommended that the City Council of San Diego contribute $100,000 to the Sail America program. Member McCandl i ss stated she wou1 d 1 ike to del ay thi s matter to see if the entry makes it to the finals. Mr. Thomson stated the Sail America program has indicated that they are low on funds. Chai rman Cox commented he coul d support thi s i tern because it is a communi ty promotion expenditure. Member Moore feels it could be a good attraction for Chula Vista. Member Malcolm noted he has a problem supporting this item. He is concerned that there is not a commitment from Sail America for the Stars and Stripes to come to Chu1a Vista. 11SUC (Malcolm/Nader) to approve funding subject to moving into an agreement with Sail America that the Stars and Stripes come to Chula Vista for a promotional visit to the Marina. RESOLUTION OFFERED AS AMENDED BY CHAIRMMJ COX, the readi ng of the text was waived by unanimous consent, passed and was adopted. (3-2; Members Malcolm and McCandliss voting no.) --.....-...-- ,-_.._..~._-------_.- --~_.._- Redevelopment Agency -6- December 18, 1986 DIRECTOR'S REPORT: Community Development Director Desrochers stated there was a need for Closed Session to discuss matters of potential litigation, the Sierra Club vs. Marsh, et. al. MSUC (Cox/McCandliss) for Closed Session to di scuss matters of potenti a 1 litigation, the Sierra Club vs. Marsh, et. al. CHAIRMAN'S REPORT: None. MEMBERS' COMMENTS: None. ADJOURNED at 5:29 p.m. to City Council meeting. Reconvened at 5:43 p.m. as the Redevelopment Agency. Adj ourned to Closed Session at 5:43 p.m. From Closed Sessi on to the regul ar meeti ng of January 6, 1987, foll owi ng the City Council meeting. ~f- Community Development Director WPC 2637H .........-.-----.".".--..-- , ---_._-"---_._------~--_._._.-