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HomeMy WebLinkAboutrda min 1985/11/21 AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, November 21, 1985 Council Conference Room 4:00 p.m. Ci ty Hall ROLL CALL MEMBERS PRESENT Chairman Cox; Members Scott, McCand1iss and Moore MEMBERS ABSENT Member Malcolm STAFF PRESENT Executive Di rector Goss, Asst. City Attorney Gill, Community Development Director Desrochers, Redevelopment Coordi nator Kassman, and Sr. Communi ty Development Specialist Buchan ITEM NO.1 - QUARTERLY REPORT OF THE SAN DIEGO UNIFIED PORT DISTRICT Phil Creaser, Port District Commissioner, reported on items of interest to both the Port District and the City: Baysi de Park Extensi on - The contract will be awarded soon; completion is expected by July 1st. Breakwater at the Boat Basin - The repair work will start soon. Derelict Boat Removal - Bidding for the second phase wi 11 begin in December. Bay-wi de Anchori ng P1 an - The Coast Guard may call a Public Hearing. The Port District urges the Cities of Chu1a Vista and Coronado to help prevent the hearing being overwhelmed by a vocal few. Sweetwater Channel - It doesn't appear anything will be done on dredging for at least a year due to problems involving the U. S. Fi sh and Wil d1 ife Service. South Bay Wet1 ands Study - Port staff is now awai ti ng communication from the Coastal Conservancy. Extension of the Marina - The opening is November 22nd. It is attracti ve and shou1 d fi 11 up before long. Convention Center - The Center is the largest si ng1 e construction ever attempted in San Diego. It should go out to bid in December. Member Moore referred back to the Park Extension and asked if that included the cu1-de-saci ng of "G" Street. Mr. Creaser replied that it did. He added that the park is desi gned to ensure easy policing, as requested by Chief Wi nters. At this time Chairman Cox presented a Proclamation to Mr. Creaser, "Commending Port Commi ssi oner Phil Creaser on his leadership in promoting the San Diego Cruise Industries Consorti urn." George Gil10w, former Councilman, and Councilman Bill C1eator from the City of San Diego were also mentioned in this connecti on. Chairman Cox related that he was excited about the new developing cruise industry and hoped at some future time Chu1a Vista could share in it. ... ......_--_....__.._._._--~.._-_._----~---~.. . ---_._---~-~-~~-------_.._-_..._------~ Adjourned Regular Meeting of the Redevelopment Agency - 2 - November 21,1985 ITEM NO. 2 - RESOLUTION 642 (a) APPROVING AN AGREEMENT WITH RICK ENGINEERING FOR ENGINEERING SERVICES FOR THE BAYFRONT INTERPRETIVE CENTER AND APPROPRIATING FUNDS THEREFOR RESOLUTION 643 (b) AMENDING THE AGREEMENT WITH WINN-CUTRI ARCHITECTS AND APPROPRIATING FUNDS THEREFOR COßl11unity Development Director Desrochers said Resolution (a) is to provi de for the thi ngs needed ri ght now to keep the Nature Center goi ng on schedu1 e. Resol uti on (b) is primarily for a temporary sewage di sposa1 system if the 404 Permit is not granted. Member Moore asked that if the 404 Permit should somehow be issued in a short time, would (b) be phased to put permanent things in first; and Mr. Desrochers sai d that was true. Mr. Desrochers added that the demo1 iti on specificati on plans for the building on Gunpowder Point were included in (a) since part of the Nature Center sits on the old house site. Chairman Cox asked how long it would take to get a demolition plan, and Mr. Desrochers replied that it cou1 d be adverti sed for bi d by February, with demolition completed by April 1st--the groundbreaking date. RESOLUTIONS OFFERED BY MEMBER SCOTT, the readi ng of the text was waived by unanimous consent, passed and adopted unanimously, (4-0). ITEM NO. 3 - REPORT ON DISCUSSION OF JOSEPH DEVELOPMENT PROPOSAL FOR THIRD AVENUE Mr. Desrochers indicated there are two options at this time: (l) Not to proceed any further with the project, and (2) Authorize the developer to go ahead with refining plans to present to the Design Review Committee and the Agency. Member Scott said he was uncomfortable with giving an approval just now due to his concerns with the massiveness of the project. Even if he concurred with a general subsidy, he was not sure it would be the project he wanted down the line. He felt the developer would construe any approval at this time as an acceptance of the total project. Assi stant City Attorney Gill advised that the decision now before the Agency cou 1 d not legally be considered a fi na 1 deci si on without the necessary Envi ronmenta1 Revi ew. He said it would be a conceptual type of review and consideration, not a final approval. Member Scott noted Member Malcolm's absence and that hi s input cou1 d be infl uential. Member Moore poi nted out thi s is property on Thi rd Avenue that somethi ng should be done with. He reminded that the Agency is in the subsidy business. "'~"---'---'-'---~'-"'--'" --.-.--.-..--'. --_.._~~._--------- .----- Adjourned Regular Meeting of the Redevelopment Agency - 3 - November 21, 1985 He thought the proposed project has a lot going for it. As to "massiveness," he wanted to know what is wrong with a three-story building on Third Avenue in a business district. Member Scott responded that with three stories you'd tend to have a tunneling effect, and that it would not complement whatever else is on the street. He said the Agency needed to get more into detail of what the project is going to be. Member McCand1 i ss felt the point to be discussed at this time was if the Agency was interested in the concept of the project, not details of the design. Mr. Desrochers sai d he woul d 1 i ke to have the Agency and staff work together on wording in order to advise the owner what to expect from us. Executive Director Goss suggested there is another side to that matter. He said the development group has indicated what they want, but what does the Agency feel comfortable with doing? Roger Joseph, Joseph Development Company, spoke briefly. He sai d they woul d 1 i ke to improve thei r family-owned property and do the best they can to make it a vi ab1 e project. Joseph Martinez of Martinez and Wong, architects for the project, showed plans and sketches of the proposed mixed-use development. Retail space would be on the first level, fronting Third Avenue. One-bedroom apartments woul d be on the inner portion of the L-shaped housing element, and the two-bedroom units would be on the outer portion. Responding to Member Scott's earlier concern about three stories, he advised that the project is four stories with three stories of resi denti a1, but this is 1 ess in hei ght than three stories of commerci a1 due to f1 oor-to-f1 oor height requirements. He di scounted the envelope/tunnel effect down Third Avenue towards the downtown due in part to the park on the no rth. He al so emphasi zed the importance of the Agency's gi vi ng future thought to connecti ng the downtown wi th "H" Street along Thi rd Avenue. Mr. Martinez continued by pointing out parking provisions, entrances, exits, and expl ai ni ng setbacks and elevations of the proposed project. He said he believed all parameters had been taken into consideration and it could be a handsome addition to the area. Member Moore stated that he was impressed. Chairman Cox thought the term "townness" would be apt, and that something of this type is needed to lure more middle-income residents downtown. Member McCand1 i ss referred to the once-promi sing project planned at Thi rd Avenue and "H" Street. Mr. Desrochers sai d its abandonment was due to the developer's financial problems. Chairman Cox said he understood that most of the Joseph leases were now short-termed. Mr. Joseph advi sed thi s was so, and they woul d have to 1 ease some space soon since reta il ers cannot operate effi ci ent1y on short-term 1 eases. ----,----- _.~- -~-,--.'--...~-.---..- Adjourned Regular Meeting of the Redevelopment Agency - 4 - November 21,1985 Daniel Grady, President of Monfric Inc., reported that he was asked by the Agency to address the subject of cost relative to the proposed development. Thi s was primari ly to do an analysi s of Agency partici pati on and the way in which the Agency cou1 d recover its cost with appropriate return on investment. After analyzing the project, he came to the conc 1 us ion that without any Agency participation, the project would not be feasible. On the basis of the plans and data furni shed by the developer, he found their square-foot cost estimates to be reasonab1 e. He thought the rents proposed could be reached with the amenities and with aggressive marketing. Because of the type of tenancy desired, he did not recommend the use of tax-exempt bonds for financing, therefore, he was only considering a market rate mortgage. The mortgage loan recommended was for $582,400 with an interest rate of 12 percent. Other financing details involving principal repayment, interest and cash flow were given. Mr. Grady a1 so recommended that a grant between $400,000 and $500,000 be awarded. This range would a 11 ow for various adjustments between the developer and the Agency. He suggested the Agency not participate in the purchase of the Yoder Building by the developer. The developer desires assurance that he would be responsible for cost up to $15 per sq. ft. and the Agency the remainder. Member McCand1iss questioned whether $15 was high market price, and Mr. Grady said that the acquisition cost would probably be $17-$18. She felt if the Agency subsidized the di fference, the owner mi ght see an opportunity to overcharge. Mr. Desrochers stated that the Agency does not want to get involved in the purchase of the Yoder Building. Mr. Marti nez remarked that the property is zoned Resi denti a1 with a Conditional Use Permit for C0ßl11ercia1, thus, he considered $15 for Residential property as high market. Mr. Desrochers thought Mr. Grady's suggesti on of adjustment withi n the $400,000 - $500,000 range should apply in this case. Gary Levitt, Associate of Joseph Development, spoke on the financial aspects. He noted the di sparity between thei r request and Mr. Grady's recommendations. Regarding the loan, he said they would like to discuss the interest rate. In general, he stated that they will need a little more assistance. Mr. Desrochers sai d before proceedi ng wi th a vote, he wanted to emphasi ze: (1) The Agency shou1 d not be i nvo1 ved in the purchase of the Yoder parcel. (2) The negoti ati on poi nts wou1 d be the interest rate on the loan and the dollar figure between the $400,000 - $500,000 spread. The usual steps of Environmental Review, Design Review, etc. would remain intact. MS (Scott/Cox) to accept staff's recommendation as outlined in the report and as further arti cu1 ated by Mr. Des roc hers. (Non-involvement in the purchase of the Yoder parcel and negotiating with the developer on the loan interest rate and the grant adjustments.) - --_.._--_._-+.._--_._--_.~._..__._-----_._----~---- Adjourned Regular Meeting of the Redevelopment Agency - 5 - November 21, 1985 Member McCand1 i ss asked at what poi nt the proposed project woul d go through Design Review, and Mr. Desrochers said it would be two or three months. Chairman Cox called for a vote. The motion carried unanimously, (4-0). ITEM NO. 4 - RESOLUTION ENTER ING INTO AN OWNER PARTICIPATION AGREEMENT WITH RENE AND PENNY MARIOTA Member Scott said he has a real problem with tandem parking, and for practical purposes there are only two spaces provi ded, not four as i ndi cated. This could present even more of a problem with change in ownership or usage. Senior Community Development Specialist Buchan explained the parking requirements for various types of construction in the City, and most particularly in the Redevelopment Area. Member Scott thought the Agency should consi der buyi ng the whole block, including the vacant grocery store, to really have something rentable and with proper parking. Chairman Cox recalled that the idea of amending the Parking District so it wou1 d go south of IIGII Street had been exami ned in the past in order to alleviate parking problems in the area. Member Moore noted that Third Avenue, between "E" and "G" Streets, has been concentrated on in the past. We shou1 d now see what can be done wi th thi s block, in conjunction with the property owners. MSUC (Scott/Moore) to continue the item until a Mariota representative can be present to give their side, (4-0). Chairman Cox asked that staff respond in more deta il to the parki ng problems; also that the current status of the various buildings on Third Avenue, between "G" and Alvarado Streets, be furnished. ITEM NO. 5 - RESOLUTION 644 ENTERING INTO AN OWNER PARTICIPATION AGREEMENT WITH MARVIN L. GALE AND ELAINE H. COHEN RESOLUTION OFFERED BY MEMBER SCOTT, the readi ng of the text was wai ved by unanimous consent, passed and adopted unanimously, (4-0). ITEM NO. 6 - RESOLUTION 645 AUTHORIZING AN INCREASE IN THE FAIR MARKET VALUE OF LAND FOR THE PURPOSE OF ESTABLISHING THE IN-LIEU PARKING FEE Member Scott recounted that the price of property has gone from $10/square foot to $16-$18/square foot in five years. Fees are not keepi ng up with inflation, and he felt something should be in the ordinance taking inflation into account every three years, or if the CPI goes above 10 percent, every year. ... _____+___ ..++. m__._'_,'_..,___ _ Adjourned Regular Meeting of the Redevelopment Agency - 6 - November 21, 1985 Attorney Gill said an inflation adjustment has already been suggested and they have no problem with it. RESOLUTION OFFERED BY MEMBER SCOTT, the readi ng of the text was wai ved by unanimous consent, passed and adopted unanimously, (4-0). MSUC (Scott/Moore) to i nc1 ude in the resultant ordi nance appropri ate wording addressing the inflation factor. ITEM NO. 7 - STATUS REPORT: REALIGNMENT OF OTAY VALLEY ROAD Stuart Peace, of George S. Nolte and Associates, said his firm was retained by the Redevelopment Agency to do the Otay Valley concept study. One of the biggest items of the study is what to do wi th Otay Valley Road in its alignment between I-805 and where Otay Vall ey Road turns southerly. The preferred alignment has two primary advantages: (1) It maintains and uses the existing Otay Valley Road alignment down to approximately Nirvana, thus, for the main part keeps most of the exi sti ng uti 1 i ti es in the roadway. (2) It reclaims a lot of usable land east of Nirvana. In this area, the topography on the north si de of the roadway is rather steep, and by movi ng the road to the south it can turn these properties into developable pieces of land. Member Moore asked if there was a cost rati 0, and wou1 d it cost more by choosi ng one a1 ternati ve over another. Mr. Peace sa i d they hadn't gotten to that point yet, but because of the util i ty issue the last one designed (preferred) should be the cheapest. Chai rman Cox noted that the preferred a1 i gnment wou1 d take mostly from property on the south. Mr. Peace said the reason it ends up that way is due to Hyspan's building being buil t very close to the Otay Vall ey Road alignment. The other factor is the fill that has been put in for the Sammis Industrial Park. Chairman Cox and Member Scott asked about specific parcels and how they would be affected. Mr. Peace advi sed that thei r next task is to come up with proposed lot/grading configurations for the entire study area. Member Moore inquired if the Agency would approve the location concept of the realignment depending on what the cost is determined to be. Mr. Desrochers replied yes, that this is a building-block type of study wherein everyone is to be a part of the decision making process. Chairman Cox asked if one design was better than another from a traffic safety standpoint. Mr. Peace sai d they all have extremely 1 arge radi us curves and are about equal safety-wise. Fred Kassman, Redevelopment Coordi nator, advi sed that the P1 anni ng Department and the Design Review Committee are supportive of the preferred alignment, as well as many of the property owners. He sai d they did not want to acqui re or ..-.'---.----..-.---- Adjourned Regular Meeting of the Redevelopment Agency - 7 - November 21, 1985 disrupt property a1 ready developed. He noted, however, the City Animal Shelter will probably have to be relocated. Regarding cross-river connectors, there are no plans to build any into the road at this time. MS (Scott/Moore) to accept staff's recommendation. Russ Crane of Fenton Premix, property owners in the area, said there are some places in the alignment plan where the roadway is a little farther away from the f100dway boundary, and he wondered if the boundary is exact. Mr. Peace responded that one reason the roadway is bei ng he1 d back from the f100dway is that there is goi ng to be qui te a bi t of fill to construct Otay Valley Road to keep it out of the 100-year water surface elevation. He stated they need to keep the fi 11 out of the f100dway to avoi d involvement with the Army Corps of Engineers. An alternative solution cou1 d resu1 t in sma 11 radiuses and subsequent super-elevation runoff. Fred Borst, a partner in Walker-Scott Properties, owners in the area, noted that as a member of the Otay Valley Project Area Committee he abstained from voting on this matter in the PAC meeting. He wi shed to have the reference to "5 acres" of Walker-Scott property to something less speci fi c, such as "a taking of property" from Wa1 ker-Scott. Mr. Borst informed the Agency that there are 6,700 acres (Otay Mesa) to the south coming along at an incredible rate and that they will be very competi tive; therefore, the a1 i gnment shou1 d proceed rapidly. Chairman Cox said that makes it even more important to have the road precede the development. Dick Kau, real estate broker, questioned what the engineer is p1 anni ng concerning the road extension: Was it going to meet and go on up the Valley? Mr. Peace assured him it would tie in. Dr. Guy Lichty, member of the Otay Valley Road PAC, expressed hi s concern about the impact of noise and traffic from a 4 to 6 1 ane road in this partially residential area. He asked that some noise abatement procedures be consi dered. Member Moore asked if the issues of the Walker-Scott acreage and the noise abatement cou1 d be incorporated in the EIR, and Mr. Desrochers said they cou1 d. He said the planned linear park in the floodplain shou1 d assi st in noise attenuation. Member McCand1 i ss related that she recent1 y walked through the resi denti a1 porti on and was surpri sed at the amount of noi se captured by the embankment behind the homes. The embankment is badly eroded, and this seems to intensify the sound. ___._.+...__..._._._.....'....n_____._+________._....._._.__________ Adjourned Regular Meeting of the Redevelopment Agency - 8 - November 21, 1985 Chairman Cox ca 11 ed for a vote on the motion to acc ept staff's recommendation with the motion amended to change the wording in the report from "acquisition of approximately 5 acres of land owned by Walker-Scott" to "acquisition of land owned by Walker-Scott," (as recommended by Member Moore ). Further, a study regarding noise abatement in the Otay Valley Road, as it affects residents, i s to be made and brought back to the Agency. Members Scott and Moore were agreeable to the additions. A vote was taken, and it carried unanimously, (4-0). ITEM NO. 8 - STATUS REPORT: OTAY VALLEY ENVIRONMENTAL HEALTH STUDY Mr. Desrochers sai d the County and San Di ego State Uni versi ty are ready to proceed wi th thei r proposed studi es. The Project Area Committee and persons representing the neighborhood believe there are other points to be brought up before it is forwarded to the Agency. MS (Scott/Cox) to accept the staff's recommendation. Member McCand1iss stated that the report Dr. Lichty and Chairman Heye (of the PAC) prepared gi ves excell ent i dentifi cati on of questi ons and suggesti ons on methodology important to the outcome. She noted at this point it isn't costi ng the Agency any money, but she is prepared to uti1 i ze Agency funds to move forward into a second step after the initial studies are completed. She urged the formation of the citizens' advi sory cOßl11i ttee, but sai d the Agency fi rst shou1 d authori ze the begi nni ng of the vi tal stati stics search by the County and the work the San Diego State University graduate student will do. Member Moore expressed doubts on the need for a citizens' advisory committee. He said si nce the Agency i sn' t sure what it wants, why shou1 d a commi ttee know? He was a1 so concerned about a health study when there is no c1 ue that something has occurred since the people moved into the vicinity of the dump/1 andfi 11 . He was of the opinion that a health study could be at many level s and take from weeks to decades, dependi ng on i nterpretati on. Member Moore added that he would not support an advisory committee, but would support whatever the County said they would pursue. Mr. Kassman sai d if the County were di rected to undertake the study, with recommended checks and balances, and it was understood this was not the entire health study but components thereof, this should meet some of the objections of the citizens' group. Member McCand1 i ss sai d the PAC has questi oned what areas shou1 d be studi ed. She sa i d the Agency shou1 d defi ne, based on census tract, the areas to be studied then make modifications as needed. Member Moore asked about the connecti on between the census tract and the heal th study. Member McCand1iss said that the vital stati sti cs for the area are being reviewed based on the census tract of people who live there. _ _._........ M' ..._'"........_.._.___"__.__.._~,...________.____._ ----_.._-_._.~- Adjourned Regular Meeting of the Redevelopment Agency - 9 - November 21, 1985 Dr. Guy Lichty, member of the Otay Valley Road PAC, gave background i nformati on on studi es proposed by the County and SDSU. In di scussi ng a health ri sk assessment, he sai d it is desi rab1 e because of the two former Class I toxic dumps in the area. He said the PAC, at Agency request, needs to find out if there is a problem now; if not, to set up a methodology for future availability. Regarding the vital statistics information, he said even with a transi ent popu1 ati on it wi 11 provi de a basel i ne to be measured agai nst. Dr. Lichty recommended testing records that are available and that would be indicative of change on the short term, such as health records from the area school s compared to those in other parts of the City. Respondi ng to Member Moore's question of what constitutes a health study, Dr. Lichty said that was one of the areas the citizens' advisory committee could be designed to explore. Member Moore suggested when school heal th records are checked, only those of students with a longevity in the community would be valid. Member McCand1iss agreed it would be better to start with the people who have lived in the area a certain length of time, rather than screen all the records at one elementary school, for instance. Gary Stephanie, Chief of Environmental Health, said Dr. Ramras appointed him to coordinate the study by Drs. Griffin and Conway. He said they are in jeopardy of 1 osi ng the $10,000 grant and the graduate student for the SDSU study due to delays. He advised that the only reason Dr. Conway has not started on the project is because of the possible formation of the citizens' advisory committee and the changes that it might entail. SUBSTITUTE MOTION MS (Cox/Moore) that the Agency authorize the environmental health study to begi n, and the Agency defer acti on on the ci ti zens' advi sory group until receiving more complete input from the Otay Valley Road Project Area Committee. Chairman Cox said before an advisory committee is created, there should be a better definition of what it would do. Mr. Stephanie cautioned members that he could not see such a committee changing Dr. Conway's study since it is not subject to alteration. Chairman Cox called for a vote on the Substitute Motion. It carried unanimously, (4-0). DIRECTOR'S REPORT: None CHAIRMAN'S REPORT: A closed session following this meeting was requested to discuss the 404 Permit. .. -..,-..-.-.'-"--""-"" .----.--.--.- _.,- Adjourned Regular Meeting of the Redevelopment Agency - 10 - November 21, 1985 Attorney Gill added that property negotiations involving the Bayfront area and CVIC should also be discussed. MEMBERS' COMMENTS: Member McCand1iss requested the results of the November 25th Otay Valley Road PAC meeting at the next Agency meeting. ADJOURNED at 6:37 to Closed Session and to the Regular Meeting on December 5, 1985, .t ,,00 p,m. ~. Pau . es c ers, xecutive Secretary WPC 1962H .---. -".. --_._-~~._'-'--~-'-'-'-'---"---- -- .-.-.-..--------