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Home My WebLink Aboutrda min 1985/10/03 MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA Thursday, October 3, 1985 Public Services Building 4:00 p.m. Council Chambers ROLL CALL MEMBERS PRESENT: Vice Chai rman McCandl iss; Members Scott, /1a1co1ro, and :·foore MEMBERS ABSENT: Chairman Cox STAFF PRESENT: Executive Director Goss, City Attorney Harron, Community Development Di rector Desrochers, and Redevelopment Coordinator Kassman Vice Chairman McCand1iss assumed the role of Chairman. ITEM NO. 1 - APPROVAL OF MINUTES Member Scott asked that the minutes of August 27, 1985, page 2, item (b) under Chairman's Report, reflect the singular "asphalt" vice "asphalts." MSUC (Scott/Moore) to approve the mi nutes of August 27, September 5, 10, 12, and 19 with the correction noted to the minutes of August 27. ITEM NO. 2 - REPORT: SUBMISSION OF VOGUE THEATRE FEASIBILITY STUDY (Continued) Member Scott poi nted out that thi s item was he1 d over so Chai rman Cox cou1 d parti ci pate in the di scussi on. Due to the Chai rman' s absence, he felt it should not be heard at this time. MS (Scott/Moore) to continue this item to the next meeting. Member Mal co 1 masked if an appra i sa 1 had been conducted on the property, to which Communi ty Development Di rector Desrochers repl ied that one had not. Member Malcolm stated that the Fiscal Impac tis not in accordance with the Recommendation. He added that he wou1 d 1 i ke to have an estimate of what the financing plan would cost, and that this should be furnished when the item comes back to the Agency. CHAI RMAN McCANDLISS ca 11 ed for a vote on conti nuing the i tern to the next meeting, and the motion carried unanimously. . .-..-.....-....-..-..- --- ~--_.._.._~~-~--_..,--- RA Mi nutes -2- October 3, 1985 ITEM NO. 3 - REPORT: PROPOSED MIXED USE DEVELOPMENT ON THIRD AVENUE BETWEEN PARK WAY AND "G" STREET Community Development Director Desrochers related that the Joseph Development Company has an interest in the property and their architect, Joseph Martinez, would give an overall view and concept of the project. Mr. Desrochers stressed that staff's desi re is to i nvo1 ve the Agency on the concept before involving other line departments in finite planning. Member Scott indicated he had no problem with approving it in concept with the information contained in the report. Chairman McCand1iss said she would like to hear from Mr. Martinez. Joseph Martinez, Presi dent of Marti nez-Wong & Associ ates, narrated a vi sua1 presentation of the proposed project. He pointed out parking space provisions, apartment uni t di stri buti on by size and elevation, and retai 1 store placement, including a proposed restaurant on the southwest corner. Mr. Martinez emphasized that it would be an aesthetically pleasing addition to Chu1a Vista and would blend in with other downtown redevelopment. Member Malcolm stated his total oppositi on to any type of bond fi nanci ng through the Agency. He said there was enough moderate-income housing downtown, that upper-income units were needed. Chairman McCandliss indicated she feared a repeat of the problems involved wi th the previ ously proposed Badi i project at Thi rd Avenue and "H" Street. She sai d she wanted to look at the financing, among other thi ngs, before giving final approval. Mr. Joseph, President of Joseph Development Company in La Jolla, related that the property has been in his (McKellar) family for 15 to 20 years. Several possible options for the property had been investigated the past few years, and the one now being presented was the chosen development. Member Moore inquired about the cost for Mr. Grady's services which were being requested by staff. Mr. Desrochers replied that Daniel Grady of Monfric, Inc. is a housing consultant with a master contract with the Agency, but the Agency is advised every time he is used. A rough estimate of $1,000 was considered an average fee to evaluate a project. In response to Member Malcolm's query on Mr. Grady I s duti es, Mr. Desrochers said he would evaluate the project to see if it fits any of the criteria for low and moderate income housing funds from the Redevelopment Agency. He sa i d those monies are proposed for building the parking garage, which would then be traded for public parking above. Referring to the desirability of low and moderate income housing, the starti ng rents wou1 d be about $500 whi ch shoul d fall into the moderate cost category. Discussion ensued regarding other funding possibilities, the dangers inherent in the Agency's setting a dollar figure before the developer asks for a specific amount of funding, and whether or not the monthly rents quoted were realistically within moderate income guidelines. __._____._..________.__._ ___._,__._..._u.__·_____~_·_·___·__·__ RA Minutes -3- October 3, 1985 Gary Levitt, Vice President of Joseph Development Company, addressed the issue of the rental rates proposed to be charged, saying $500 for a one-bedroom and up to $625 for a two-bedroom are anti cipated. He bel i eved uni ts on lower, back units would qualify for moderate income housing. Mr. Levitt advised they know some type of fundi ng assi stance is needed for the development, and they had come to find out what was available. In answer to a question by Member Malcolm, Mr. Levitt said the cost of the parki ng structure wou1 d be about $500,000, and another estimated $300,000 in grants or loan assistance was needed to make the proj ect viable. Member Malcolm expressed his interest in keeping reports on financing confidential. MSUC (Moore/McCand1iss) to amend staff's Recommendation #1 to read: "That the Agency accept the report and authori ze the servi ces of Mr. Dan Grady to review the developer's proposal s and make confidential recommendations concerning possible Agency involvement in the financing of the proj ect. " MSUC (Moore/McCandliss) to accept staff's Recommendations 1 and 2 with No. 1 amended as noted. ITEM NO. 4 - RESOLUTION 632 APPOINTING GARY HARPER, DALE OHLAU AND DANA SUE TOOGOOD TO THE TOWN CENTRE PROJECT AREA COMMITTEE With the merging of the Parking Place Commission with the Town Centre Project Area Committee, the three remaining members are to become members of the Town Centre PAC for their unexpired terms. RESOLUTION OFFERED BY MEMBER MALCOLM, the reading of the text was waived by unanimous consent, passed and adopted unanimously. MSUC (Moore/Malcolm) to task the new combi ned commi ssi on to revi ew what sector of the promotion di stri ct has the least parking spaces vs. customers in pursuit of potential area and purchase of that property and forward a report to staff and Agency. ITEM NO. 5 - REPORT: 1-5I"E" STREET/BAY BOULEVARD FREEWAY INTERCHANGE Communi ty Development Di rector Desrochers sai d the purchase of the Street/Merziotis parcel was made partially to relieve possible traffi c congestion with a fully developed Bayfront and for the alignment of the freeway ramp. Chul a Vi sta Investment Company has obtai ned a traffi c study, and they would like to discuss their plan concept. The City Traffic Engineer agrees conceptually that it may be the appropriate answer. Basically the land uses are the same as in the Local Coastal Plan (LCP), so these plans would not require a Coastal Plan amendment. Before Planning and Engineering Departments do a complete analysi s, Agency I s input is requested. Mr. Desrochers introduced Charles LeMenager of Chula Vista Investment Company. --~-,-.~"'-_..._...__.,_.._- RA Minutes -4- October 3, 1985 Mr. LeMenager tol d of extensive and costly soil s investi gati ons whi ch showed definite problems closer to the Bay in addition to known problems on the "D" Street Fi 11 . The solution led to the proposed realignment of Tidelands Avenue. The mi d-Bay area has been designed to util i ze the area according to the approved LCP in terms of intensi ty, square footage and types of development. Mr. LeMenager added that they hired traffi c consul tants to resol ve the 1-5I"E" Street intersection problem. A visual was used to explain the proposed plan. Mr. LeMenager stressed that "E" Street bridge wou1 d not have to be widened, which would save about $1.2 million, and this would be a trade-off for the 40 percent of City property lost due to the interchange. Member Moore poi nted out that 40 percent of Ci ty property purchased for $3 million would be lost with the design, plus 40 percent of continued profit from development of that land. Member Malcolm said he would like to see the existing road with an overlay of the proposed new road. r~r. Desrochers sai d thi s was bei ng worked on. He advised that the Traffic Engineer and CalTrans had been contacted, but before further involvement the Agency's views were solicited. Member Malcolm questioned accessibility to Parcel No.7 on the visual, which he said would be a perfect hotel site. Member Scott stated he believed they were asked to give up too much property. Executive Director Goss commented that what was needed was the presentation of some of the other alternatives done by the traffic engineers. Member Scott suggested that unless they become part of the process to see how alternative are arrived at, it would be difficult to approve a concept. He said held like to see a whole meeting devoted to it. Member Malcolm stressed the time factor inasmuch as Holiday Inn is interested in a hotel si te now. He sai d he di d not want further del ays and that they should be able to make a decision. Chai rman McCandl i ss sai d it appeared the i nformati on was avai 1 abl e, that it just needed to be done into an overlay display. City Manager Goss stated he thought it would be a good subject for the October workshop. MSUC (Scott/Moore) to hold the item for a conference meeti ng at the October workshop. H..·.._.M ....-....---.--..--....----..-..-- RA Minutes -5- October 3, 1985 ITEM NO. 6 - REPORT: PROPOSED USE OF THREE ACRES OF THE STREET PROPERTY MS (McCandliss/Moore) to accept staff's recommendation. Mike Wiggins Nursery has requested to lease, on a month-to-month basis, three acres for storage of trees, bushes, plants and planting materi al s. Mr. Desrochers said the income from such an arrangement would be minimal, but the City would benefit by the enhanced appearance and use of the property. Member Malcolm was concerned it could be a detriment if it proved difficult for the City to take possession of the property when needed. Ci ty Attorney Harron presumed thi s woul d be addressed in the 1 ease, and the Agency cou1 d assess any risks involved at that time. Member Scott thought there was too much potential nuisance value for the money that would be forthcoming. Chairman McCandliss stated she did not see the nuisance value, and that the Agency would get a chance to review the lease when it came back to the Agency. CHAIRMAN McCANDLISS call ed for a vote on the motion to accept the staff report, and the motion carried 3-1, with Member Malcolm opposed. ITEM NO. 7 - RESOLUTION 633 ADOPTING NEGATIVE DECLARATION IS-85-32 MAKING CERTAIN FINDINGS REGARDING LAND USE AND APPROVING A SPECIAL PERMIT FOR AN OPERATION CENTER FOR CHULA VISTA SANITARY SERVICE, INC. Member Scott left the dais to avoid any appearance of conflict of interest. Redevelopment Coordinator Kassman reported that the item was presented to the Otay Valley Road Project Area Committee and was approved unanimously with all fi ve members present. He advised that the project has been in planning for many months and recently reached concurrence with our Planning Department. It wi 11 go through Desi gn Revi ew on the 17th and come back to the Agency for an owner participation agreement. Member Moore related that about a year ago he reviewed their new facility in the Cl aremont, California area and appreciated the type of desi gn and the effort that went into designing it. He said he was impressed with the orderliness and cleanliness. Norman G. Williams, representing Chula Vista Sanitary Service, was present and announced he would be happy to respond to questions. Member Moore asked if there was still an effort for an entry direct to the sanitation land fill from the north. Mr. Williams replied that they were not making any effort to do that as it was found to be too impractical. RESOLUTION OFFERED BY MEMBER MALCOLM, the reading of the text was waived by unanimous consent, passed and adopted with Member Scott abstaining. __..._~.._.___.___.____..__,___._._...___~______._..._.___n_._._"__ RA Minutes -6- October 3, 1985 DIRECTOR'S REPORT Referring to a memorandum from the Community Development Director on proposed tax reform legislation, Mr. Goss asked if the other two members of the Council Legislative Committee had reviewed the material. Member Malcolm responded that he could address that matter. CHAIRMAN'S REPORT No comments. Member Scott returned to the dais at 5:10 p.m. MEMBERS' COMMENTS In response to Executi ve Di rector Goss I i nqui ry , Member Malcolm offered a moti on. MSUC (Malcolm/Moore) to oppose federal tax legislation HR 1800 that would take away our tax exempt status on tax allocation bonds, and that appropriate letters be sent to the individuals as outlined in the October 2 memo from the Community Development Director. ADJOURNMENT at 5:12 p.m. to the regular meeting of Thursday, October 17, 1985, at 4 p.m. ¿ ø¿: , ,·ž>c,.·· __-------- Paul G. Desrochers, Executive Secretary WPC 22l4P .--.. -.-.--.-------..-- - -- --.-"-.--"'--