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HomeMy WebLinkAboutrda min 1985/08/27 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Tuesday, August 27, 1985 Council Chambers 11:40 p.m. Public Services Building ROLL CALL MEMBERS PRESENT Chairman Cox, Members Malcolm, McCandliss, Moore MEMBERS ABSENT Scott STAFF PRESENT Executive Director Goss, City Attorney Harron, Assistant Community Development Director Gustafson ITEM NO. 1 STATUS OF RESIDENTIAL LOT 8 David Gustafson, Assistant Community Development Director presented an update on the negotiations between the Agency and the developer concerning the Agency's financial participation in the 92-unit residential project located within the Town Centre Focus Area. He noted 3 proposals which have been made: (1 ) that the Agency receive, in addition to the principal and interest, 15% of the net cash available upon the sale or refinancing or term as additional interest; (2) the Agency receives in addition to the principal and interest a predetermined percentage of the gross sales price as additional interest at the sale or refinancing or term, according to a schedule; or (3) , which is the one being recommended, in addition to the principal and interest, the Agency receives a higher predetermined percentage of the gross sales price. Councilman Malcolm stated that he has previously been against the developer in this particular parcel; however, he feels the City should get a financially feasible project, and to work with the developer in bringing in upper and middle class people into the area. He will support the project on the condition that an agreement comes back to the Agency for discussion so that he can look it over and make sure the Agency is protected financially. He has no problem wi th telling the developer, Mr. zogob, that the Agency approves this "in concept" and have the final vote come back to the Agency in a few weeks. MSUC (Malcolm/McCandliss) to accept the report and the staff recommendation - that the recommendation is to approve this "in concept. " Staff to prepare an appropriate agreement. Mr. Michael Cowett, representing the developer, explained the proposal and the participation agreement noting the interest rate is based on gross sales of the apartment project when sold rather than a percentage of the profit. He feels it would be of greater benefit to the City and would like to have the developer, staff, and City Attorney get together and prepare the agreement based on this concept so that it would be ready for final approval at the Agency's September 5 meeting. - ~._-~---_._-"--~-~-~._--- Member Malcolm stated that he would like to negotiate with the developer to put in a food market in the Town Centre area, adding this could be done by using the land adjacent to the Seafood Broiler, closing off the small access street, and providing another level on the parking structure. Member Moore expressed concern that a portion of the project units would be required to house lower income households in order to obtain tax-exempt financing, which might be counter to the Agency's intent for this project. He asked that the subject be addressed by staff when the agreement was returned. CHAIRMAN'S REPORT a. MSUC (Cox/Moore) to direct staff to come back with a status report on the discussions with Caltrans on the traffic improvements adjacent to the street property. b. Cha i rman Cox noted there 1s asphalt which is 1/2" below the existing roadway in front of Fuddrucker's and United Artists Theatre (due to recent street repairs). MSUC (Cox/Moore) for staff to check into this. MEMBERS' COMMENTS a. Member Moore discussed the parking structure signs which he declared are poorly designed both internally and externally. MSUC (Moore/Cox), for staff to review the signs, both internally and externally into the parking structure and how traffic can be better directed into that structure. b. Member Malcolm noted that there is still a great deal of trash in front of the Nautilus building, with weeds growing almost two feet tall. He asked that the staff look into this. c. Member Malcolm stated he called Acting City Manager Asmus last week regarding a cash offer f rom a major hotel to build on the bayfront. The staff wrote a letter back to the hotel rejecting this offer. Member Malcolm said this should be a decision of the Agency and not the staff. Acting City Manager Asmus stated he is awaiting the return of the Community Development Director to respond to this and will report back to the Agency. d. Member McCandliss noted the problem wi th the tractor trailers parking under the overpass at I-805 and Otay Valley Road and asked that staff take care of it. Adjournment at 11:55 p.m. to Thursday, September 5, 1985, at 7 p.m. - - -...---.--..-...--------