HomeMy WebLinkAboutrda min 1984/03/29
MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA, CALIFORNIA
Thursday, March 29, 1984 Council Conference Room
5:15 p.m. City Hall
ROLL CALL
MEMBERS PRESENT Chairman Cox; Members Moore, Scott
MEMBERS ABSENT Members Malcolm, McCandliss
STAFF PRESENT Community Development Director Desrochers, Agency
Attorney Harron, Housing Coordinator Gustafson
ALSO PRESENT Bill Kronberger, Paul Steiger
Community Development Di rector Desrochers reported on the outcome of the
Coastal Commission hearing regarding the CalTrans I-54 project. The Coastal
Commission felt that there were inconsistencies in the City's approved Land
Use Pl an and the Corps/Ca lTrans miti gati on. The confus i on involves the 10
acres of marsh to be converted as a Least Tern preserve which is on Port
Di s tri c t property. City staff will work with CalTrans staff the next 3D days
in order to resolve this conflict.
ITEM NO. 1 - RESOLUTION NO. 500 - CLEARING CONDITIONS TO PROVISION OF
FINANCIAL ASSISTANCE TO HOUSING
OPPORTUNITIES, INCORPORATED, FOR HOUSING
PROJECT AND APPROVING COOPERATIVE AGREEMENT
WITH HOllSI NG OPPORTUNITIES, INCORPORATED,
REGARDING THAT ASSISTANCE
At their meeting of February 2, 1984, the Agency approved a resolution
granting financial assistance to Housing Opportunities, Incorpora ted, for a
for-sale affordable housing project, subject to a land value appraisal of the
project site acceptable to the Agency and the executi on of a cooperative
agreement with the developer. The Agency also asked for an evaluation of the
project by the County's Housing Finance Review Committee. The appraisal and
the Cooperative Agreement have been completed, and the County Commission has
evaluated the project.
Housing Coordinator Gustafson reported that meetings have been held with
Housing Opportunities, Incorporated (OOI), Home Federal, their attorney, and
Ci ty staff in order to prepare the Cooperative Agreement. The comments of
the County's Housing Finance Review Committee were available for discussion,
as was the property appraisal report.
Mr. Gustafson briefly discussed the changes made to the Cooperative Agreement
since the Agency received the draft last week.
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Adjourned Regular Meeting
of the Redevelopment Agency -2- March 29, 1984
In response to Member McCandliss' question concerning default of the project,
Mr. Gustafson indicated that the language in the Agreement does not require
Home Federal to take on the project in the case of default.
Mr. Bill Kronberger, attorney representing HOI, stated that the section
regarding default indicates that in case of default, Home Federal could jump
into the project as soon as possible, or if they elected not to do so, the
Redevelopment Agency could exercise its rights.
Chairman Cox, in view of Member Malcolm's absence, conveyed some of his
concerns about the appraisal report, the second mortgage structure, the fact
that the profit cap was a percentage only and didn't include an actual dollar
amount, and the fact that profit would leave Chula Vista rather than be
applied to further Chula Vista projects. Discussion of these points ensued.
Further discussion ensued regarding the result if HOI is unable to complete
the project. In response, Mr. Kronberger stated that, unofficially, Home
Federal's option would be to take over the project in case of default.
Agency Attorney Harron stated that in case of defaul t, the Agency has two
options: 1) money remedy, and 2) foreclosure action. He added that the
Agency security really is the property, and if we are satisfied with this, it
should be sufficient.
It was noted that the Agency does not have "first rights on the property in
case of default. This right has been subordinated to Home Federal (as
referred to in paragraph 20 of the Agreement).
Chairman Cox requested that another of Member Malcolm's concerns be further
addressed regarding a cap on the profit--should have either a dollar amount
or a percentage. In response, Mr. Kronberger remarked that the homes must be
affordable to a moderate income group; therefore, there is a cap.
Chairman Cox indicated that Member Malcolm felt that the second mortgages
should be set up to involve level amortization. In response, Mr. Gustafson
explained that the deferred, graduated interest second mortgages were
designed to reduce debt service for five years in order to allow lower income
households to qualify for purchase.
In answer to Member McCandl iss' question, Mr. Gustafson stated that most of
the improvements will be required before any units are constructed. Mr. Paul
Steiger, President of HOI, remarked that improvements required prior to
construction of the units woul d be cost effective if they are done in a
logical sequence.
RESOLUTION OFFERED BY MEMBER McCANDLISS, the reading of the text was waived
by unanimous consent, passed and adopted.
Member McCandl iss stated that the Cooperative Agreement presented to the
Agency for this project shows that the City is protected, and that no "evils"
normally associated with subsidized housing are shown. The project al so
adequately shows that housing can be built that does not require two incomes
to get into, and therefore the project will be an asset to the community.
Adjourned Regular Meeting
of the Redevelopment Agency -3- March 29, 1984
In response to Member Moore's question, Mr. Steiger indicated that
construction of the proj ect foll owing final map approval should occ ur
approximately January 1, 1985.
Mr. Steiger thanked the Agency and staff for setting up the special meeting
to consider this project.
ADJOURNMENT at 5:55 p.m. to the regular meeting of Thursday, April 5, 1984,
at 7:00 p.m.
WPC 1051H
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