HomeMy WebLinkAboutrda min 1985/07/18
MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA, CALIFORNIA
Thursday, July 18, 1985 Council Conference Room
4:00 p.m. Ci ty Hall
ROLL CALL
MEMBERS PRESENT: Chairman Cox; Members Malcolm, Moore, McCandliss
MEMBERS EXCUSED: Member Scott
STAFF PRESENT: Executive Director Goss, Conrnunity Deve 1 opment
Desrochers, Assistant City Attorney Gi 11 , Assistant
Community Development Director Gustafson
ITEM NO. 1 - QUARTERLY REPORT OF THE PORT COMMISSIONER
Port Commi ssi oner Phi 1 Creaser provi ded i nformati on on the foll owi ng Port
Di stri ct matters: derelict vessel removal, IIGII Street Park extension, bay
anchori ng and moori ng management plan, Chul a Vi sta fishing pier, annual
landscape maintenance contract with the City, floating castl e, and the
conventi on center. Regarding the floating castle issue, Mr. Creaser stated
that the fi rst court renderi ng was that the Port's ordi nance was val i d.
Therefore, the operator of the castl e was shut down. In essence, this means
that vehi c 1 es coul d not park overni ght in any Chul a Vi sta mari nalRV park
parking lot. However, this would not prevent them from parking their vehicles
in and boarding the castle from National City.
ITEM NO. 2 - RESOLUTION 608 - APPROVING AN AGREEMENT WITH NORBERT H. DALL FOR
CONSULTING AND LOBBYING SERVICES FOR THE BAYFRONT REDEVELOPMENT
PROJECT
The Redevelopment Agency has previously contracted wi th Norbert H. Dall for
consulting services relative to the Local Coastal Plan. That contract has
expi red and it is proposed to enter into a new one-year agreement with the
consultant to assist with Bayfront activities relative to lobbying services.
RESOLUTION OFFERED BY MEMBER MOORE, the readi ng of the text was wai ved by
unanimous consent, passed and adopted unanimously.
ITEM NO. 3 - RESOLUTION - APPROVING APPROPRIATION OF FUNDS FOR DRAINAGE
IMPROVEMENTS TO POGGI CREEK
On July 2, 1985, the Agency consi dered a resol uti on approvi ng funds from the
Low and Moderate Income Housing Fund to pay the cost of improving the Poggi
Creek drainage downstream of the Housi ng Opportuni ti es, Inc. project. That
issue was continued to this meeting.
Discussion ensued relative to continuing the item due to the lack of a full
Agency.
MSUC (McCandliss/Moore) to continue this item to Thursday, July 25, 1985.
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Redevelopment Agency - 2 - July 18, 1985
ITEM NO. 4 - RESOLUTION - APPROVING PURCHASE CONTRACT FOR ROOFING MATERIAL
FOR TOWN CENTRE MANOR, APPROVING EXPENDITURE OF ADDITIONAL FUNDS
FOR ROOF! NG INSTALLATION AND APPROV ING IN CONCEPT A DRAFT
AGREEMENT WITH COUNTY HOUSING AUTHORITY REGARDING ROOFING
INSTALLATION
The Agency directed that the Town Centre Manor be fully roofed with Rocron
roofi ng materi a 1 . At thei r meeti ng of May 28, 1985, the Agency was informed
that a contract for purchasing the actual material would be returned to them.
Installation costs have been revised substantially based on roofing contractor
bids, as have material costs. The contract for the roofing material has been
requested from the manufacturer, and a draft agreement has been negoti ated
with the County Housing Authority for installation of the roof material.
Housing Coordinator Gustafson indicated that it would take approximately four
weeks for installation of the roof by the contractor. The total amount for
the roof accordi ng to the purchase contract is over $90,000. However, the
colorfastness of the til e cannot be guaranteed. Therefore, he recommended
that the roof be left as is and as an alternative, a roof be installed after
occupancy of the building, which would be less expensive.
Member Malcolm arrived at this time.
Discussion followed regarding authorizing an additional appropriation of funds
for installing a new roof which would void the warranty on the existing roof.
MSUC (Moore/McCandliss) to cancel any further di scussi ons or contracts
with the maker of the imitation tile.
MSUC (Malcolm/Moore) to direct staff to return with a cost estimate on
mission clay tiles that would be compatible with the Civic Center and
Library buildings.
ITEM NO. 5 - REPORT: DEVELOPMENT OF FOCUS AREA RESIDENTIAL PARCEL NO. 8
The subject report has been brought back to the Agency foll owi ng several
continuations. At the June 20 Agency meeting, members directed that this item
not be considered until a report had been prepared by the developer regarding
the focus area and the operation of the parking structure.
MSUC (McCandliss/Cox) to discuss this item in Closed Session.
The Agency recessed to Closed Sessi on at 4:49 p.m. The Agency meeti ng
reconvened at 5:10 p.m.
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Redevelopment Agency - 3 - July 18, 1985
Chairman Cox suggested continuing this item until Tuesday (July 23) so that it
could be discussed with all Agency members in attendance.
Mr. Richard Zogob, representing Centre City Associates, Ltd., expressed
concern with an additional continuation of this item. Therefore, he requested
that the Agency consider this item at this time.
Mr. Zogob discussed the background of this project including the designs of
the architect, Rick Marrs, financial packaging prepared by the Bank of
Ameri ca, bond underwri ti ng servi ces, and bond counsel servi ces. He indicated
that with normal processing performed by the City, the Design Review
Commi ttee, etc., groundbreaki ng on the proj ect shoul d be accompl i shed in 120
days. The financing mechanism should be available at the end of this year.
If the project is approved today, the interest rate could be 9.2%. He added
that the Agency entered into the venture as a co-partner. Therefore, he
expressed his desire to see the project completed together.
In response to Member Malcolm's concerns regarding non-payment of the parking
structure bill, Mr. Michael Cowett, representing the developer, indicated that
the dispute with the parking structure payment should not be tied to approval
of the residential parcel. The question with this item concerns the starting
date for payment. When the Redevelopment Agency concludes the elements of the
parki ng structure payment package, an agreement can be executed for thi s
purpose.
Member McCandliss left the meeting at this time.
Discussion ensued relative to the time frame involved in drawing up an
agreement for this item. It was noted that the Bank of America would have to
be contacted, a schedule of performance woul d have to be prepared, and the
Design Review Committee would need to review the resubmitted plans.
MSUC (Cox/Malcolm) to direct staff to return with a resolution concerning
a schedule of performance for residential parcel #8 for consideration next
Thursday, July 25 (following the Agency workshop).
Member McCandliss returned at this time.
ITEM NO. 6 - REPORT: RESPONSE TO FOCUS AREA DEVELOPER LETTER REGARDING
PARKING STRUCTURE
The focus area developer, Richard Zogob, suggests that payment for the parking
structure should commence on August 1 of each year rather than April 1 as
required by the current agreement with the Agency. Staff reconrnends that the
parking structure agreement be revised to reflect the first payment due date
on August 1, 1985, and monthly thereafter for parcel s 1, 2, 4, and 6. The
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Redevelopment Agency - 4 - July 18, 1985
second recommendation is that the fee for parcel 1 be forgiven forVear One
and that 50% of that fee be pai din the second year and prorated monthly
beginning August 1, 1985, and full payment would be due in the third year.
Community Development Director Desrochers commented that it would be difficult
to amend the CC&Rs on this project in order to revise the parking structure
payment dates.
MSUC (Cox/McCandliss) to approve staff recommendations a and b:
a. Approve revi si on of the parki ng structure agreement to refl ect that
the fi rst payment is due on August 1, 1985, and month ly thereafter
for parcels 1, 2, 4, and 6.
b. Forgive the $11 ,828 fee for parcel 1 to zero this year, 50% (or
$5,915) in the second year due and prorated monthly beginning August
1, 1985, and 100% in the thi rd year. If, however, a structure is
built on the parcel, then the total amount of $11 ,828 woul d be
prorated accordingly.
Chai rman Cox cl ari fi ed that ei ther the Agency Attorney or the developer's
attorney shoul d prepare the agreement refl ecti ng the revi sed annual payment
date. He suggested that this document should be signed and del ivered by the
developer prior to the Agency workshop next week.
MSUC (McCandliss/Moore) to approve staff recommendation d, directing staff
review the security, promotion, and other requests.
It was moved by Chairman Cox to recommend approval of item c (reducti on of
retail shop rents on parcel 4...). The moti on fail ed 2-2 wi th Members Moore
and Malcolm opposed.
Discussion followed regarding inability to attract patrons through the focus
area retail center.
MSUC (McCandliss/Malcolm) to di rect staff to re vi ew copi es of the
developer's 1 eases and prepare a confidential memo to the Agency
evaluating their competitiveness.
ITEM NO. 7 - RESOLUTION 609 - ENTERING INTO AN OWNER PARTICIPATION AGREEMENT
WITH PACIFIC LIGHTING ENERGY SYSTEM
On June 6, 1985, the Agency certi fi ed an environmental impact report and
approved a speci al use permi t for the proposed methane gas-to-electricity
plant in the Otay Valley Road Redevelopment Area. The owner participation
agreement submitted for approval this afternoon has been condi ti onally
approved by the Design Review Committee and has also been reviewed by the Otay
Valley Road Project Area Committee.
RESOLUTION OFFERED BY MEMBER MALCOLM, the reading of the text was waived by
unanimous consent, passed and adopted unanimously.
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Redevelopment Agency - 5 - July 18, 1985
ITEM NO. 8 - REPORT: REQUEST TO PROHIBIT ON-STREET PARKING WITHIN THE OTAY
VALLEY ROAD PROJECT AREA
Severa 1 compl ai nts by businesses in the Otay Valley Road area concerning
on-street parking of vehicles on Otay Valley Road and Brandywine Avenue have
been received. Due to increasing new development and traffic in the area, the
Otay Vall ey Road Project Area Commi ttee consi dered the matter of on-street
parking and voted to recommend that the Agency consider and support the
prohibition of on-street parking within the Project Area and recommend the
City Council to implement the prohibition.
MSUC (Moore/Malcolm) to accept the staff report.
ITEM NO. 9 - RESOLUTION 610- APPROVING AN AGREEMENT WITH McDONOUGH, HOLLAND,
AND ALLEN FOR SPECIAL COUNSEL SERVICES
Informal bids were solicited by the Agency Attorney and Community Development
Director for special 1 ega 1 services for one year regardi ng redevelopment
activities, particularly concerning the Bayfront.
Community Development Director Desrochers emphasized that these services would
be specifically for negotiation purposes with the Chula Vi sta Investment
Company in preparation of a Disposition and Development Agreement.
RESOLUTION OFFERED BY MEMBER Mc, CANDLISS reading of the text was waived by
unanimous consent, passed and adopted unanimously.
ITEM NO. 10 - RESOLUTION - APPROV I NG AGREEMENT WITH JONES HALL HILL AND
WHITE FOR BOND COUNSEL SERVICES
MSUC (Malcolm/McCandliss) to continue this item for two weeks (August 1).
CHAIRMAN'S REPORT
a. Chairman Cox requested feedback relative to scheduling a joint
CouncillSchool Board meeting to discuss developer's fees.
b. Chai rman Cox informed the Agency that Senator Wil son will be in town on
August 3, 1985, and Chul a Vi sta has been asked to co-host a 1 uncheon in
his honor.
DIRECTOR'S COMMENTS
Executi ve Di rector Goss remi nded the Agency that staff requests thei r input
regarding alternative sites for the Bayfront Interpretive Center. Community
Development Di rector Desrochers conrnented that accordi ng to the Coastal
Commission, the City has its choice of three alternate sites.
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Redevelopment Agency - 6 - July 18, 1985
MEMBERS' COMMENTS
a. Member McCandl i ss suggested directing speci fi c questions and issues
regarding joint Council/School Board meetings to the City Manager.
b. Member Malcolm expressed concern that staff is in negotiations with Chula
Vista Investment Company for Bayfront development. Executive Di rector
Goss assured the Agency that staff is not negotiating with the developer.
Staff is exploring data which will be provided for the special counsel's
information.
ADJOURNMENT AT 6:45 p.m. to the Workshop Session on Thursday, July 25, 1985,
at 4:00 p.m. and the regular meeting of Thursday, A ust 1985, at 7:00 p.m.
WPC 1738H
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