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HomeMy WebLinkAboutrda min 1984/11/15 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thu rsday, November 15, 1984 Counci 1 Conference Room 4:00 p.m. City Hall ROLL CALL MEMBERS PRESENT Chairman Cox; Members Malcolm, Moore, McCand1iss, Scott MEMBERS ABSENT None STAFF PRESENT Agency Attorney Harron, Communi ty Development Di rector Des roc hers , Development Specialist Kassman, City Engineer Lippitt ALSO PRESENT Daniel Grady, Lewis LaDou, Mike Cowett ITEM NO.1 - REPORT: DEVELOPMENT OF RESIDENTIAL PARCEL 8 IN THE FOCUS AREA Chai rman Cox noted that due to a possible conflict of interest, Member Malcolm was excused from this portion of the meeting. At their meeti ng of November 1, the Redevelopment Agency di scussed thi s item and suggested that it be continued to this afternoon 's meeting. In the interim, the Town Centre Proj ect Area Committee met and recommends the conceptual plan be approved by the Redevelopment Agency. Mr. Dan Grady , Housi ng Consultant for the Redevelopment Agency, Monfric, Inc., 1272 Morena Boulevard, San Diego, 92110-3891, discussed his role in evaluating the Pacific Scene apartment proposal to determine the benefit that would accrue to the City from an investment into the project, as well as to eva1 uate the feasi bil i ty of constructi ng thi s proj ect versus a hi gh-ri se. The consultant agreed wi th the conc1 usi ons of the market survey conducted by Pacific Scene on which they based their economic projections. He recommended that the Agency's cash investment be in the form of a 10-year loan, carrying an interest rate of approx imate 1y 12% (the exact amount to be based on Treasury regu1 at ions) . Pri ncipa1 and interest wou1 d be deferred, and the interest would accrue and be paid to the Agency upon any sale or refinancing which mi ght take p1 ace duri ng the 10-year peri od and any interest balance remaining unpaid being due and payable at the end of the loan term. The Agency wou1 d agree to subordi nate the second mortgage to any new fi rst mortgage negotiated by the developer on terms and conditions acceptable to the Agency. It is also recommended that at the end of 10 years, the Agency receive 15% of the net profits derived from sale or conversion of the project. ~.. . "."__ ._______.._ __ __ _ _._~__.,.u.__._..~___ -,------- Adjourned Regular Redevelopment Agency Mi nutes -2- November 15, 1 984 Mr. Grady agreed with the general proposal to develop a project consisting of a four-story building with apartments facing a landscaped inner court. He recommended that the project parki ng structure be bui 1t at grade and the enti re development be rai sed as much as possi b1 e in order to p1 ace as many apartments as possible above the adjacent parkade. Even though living areas in most of the units would be oriented towards either the courtyard or the park, it was believed that marketability would be improved if the units are as high as possible. The consultant cited the Coronado Shores as an example of a high-rise housing proj ect whi ch attracted aff1 uent tenants who are not necessarily occupyi ng the uni ts on a year-round basi s. The consul tant sai d that hi s studi es indicated that the clientele which would be attracted to a high-rise tower in Chu1a Vista would be less likely to frequently shop in downtown Chu1a Vista. Discussion followed regarding financing mechanisms, including the combination loan/equity investment and the Agency participation in the profits or appreci ation when they occur. Member Scott commented that the Agency should not participate in a project to make money, but to make a project work. He questioned the need for the Agency to participate financially in the project. In response, Mr. Grady explained that the developer believes he can raise $1 million through limited partnership investments. The developer's economic projection indicates a total development cost of $5,600,000; proposed financing consists of a mortgage in the amount of $3,900,000. Wi th the $1 mi 11 ion rai sed by the investors, a $700,000 gap remains. Therefore, the $850,000 requested by Pacific Scene would cover this gap and allow for a reasonable contingency. Di scussion followed regardi ng the use of low and moderate income housi ng funds. Community Development Director Desrochers indicated that the proposal is a legitimate use of these funds. Housing Coordinator Gustafson explained the allowable rents for low and moderate income households at certain income rates. Community Development Di rector Desrochers informed the Agency that staff is not requesting' an absolute decision this afternoon. Staff would like an indication, however, from the Agency if they are headed in the right direction and if the Agency would like them to further explore the proposal and use of the housi ng fund moni es. Member McCand1 i ss commented that staff seems to be goi ng in the ri ght direction. She agreed that the proposal, which would eventually lead to conversi on of apartments to condomi ni urn uni ts, would eventually attract more business in a higher income bracket to the City of Chu1a Vista. _"."0 o'________.'__.__,·'..._____ Adjourned Regular Redevelopment Agency Mi nutes -3- November 15, 1984 Member Scott expressed concern with the quality of development proposed. He stressed the need for a "truly" middle income development because diversity is necessary in thi s area to mai ntai n a balance downtown. He a1 so expressed concern that the financing proposed by the consultant seems to be at the advantage of the developer and not the Redevelopment Agency, si nce the developer will be reaping benefits at the expense of the City if the project is a success. Member McCand1 i ss commented that the Agency should rem i nd i tse 1f of the definition of a low and moderate income project. Dn1y a percentage of the project requires income rates that conform to required income standards. Mr. Lewis LaDou, Pacific Scene, Inc., 1094 CUdahy Place, San Diego, requested the Agency's suggesti ons for a good use of the property. In response, Member Scott suggested a proj ect which is creative and visible. Mr. LaDou, respondi ng to an earl i er remark, stated that he had no prob1 em wi th the consultant's suggestion to build four stories, over a garage at ground level. MSUC (McCand1iss/Cox) to accept the report, inform staff they are on the right track, and that they should proceed. Mr. C. Michael Cowett, representi ng the developer, Centre City Associ ates, Limited, all uded to the c1 ause in the Di sposition and Development Agreement (DDA) which i nc1 udes an anti -specu1 at i on c1 ause and reverter which is due January 1, 1985. He reminded the Agency that the deadline for approval of a project by the developer is only 45 days away. In response, Community Development Director Desrochers told the Agency that for their December 6 meeting, staff would attempt to bring back at least an extended DDA which would take care of this time lag. Mr. LaDou requested more spec ific s of what the Redevelopment Agency wanted for thi s site in order to have hi s architect prepare drawi ngs. In response, Member Scott suggested that the Agency is looking for an architecturally pleasing structure that is attractive to the public as well. Member Malcolm returned to the meeting at this time. ITEM NO. 2 - RESOLUTION NO. 543 - ACCEPTING TOWN CENTRE ALLEY IMPROVEMENTS The final inspection of the construction work of three alleys was performed in the Town Centre Focus Area. The work has been comp1 eted to the satisfaction of the City Engineer; however, final construction cost exceeds the contract amount by $4,077.31. Thi s is due to the redesi gn of the concrete pavement thickness in the alley south of "F" Street. RESOLUTION OFFERED BY CHAIRMAN COX, the readi ng of the text was wai ved by unanimous consent, passed and adopted unanimously. .' '.--- --.----.- _.__._.~_._._---~-----_.- Adjourned Regular Redevelopment Agency Mi nutes -4- November 15, 1984 ITEM NO. 3 - REPORT: SUPERMARKET FOR TOWN CENTRE I For the past several months, the Agency as well as interested citizens have been concerned that a full-service supermarket is not a part of the redevelopment downtown. Discussions have taken place with shopping center developers, a buyers' service program, and the potenti a1 subsi dy to provi de to the center's developer. Community Development Director Desrochers remarked that he has spoken to the Safeway Company but no commitments as to the future use of the structure on Third Avenue can be obtained. Other market individuals contacted indicate that six acres is the smallest site they will consider. Member Moore, in response to staff's exploration of a potential subsidy for the grocery store, indicated he could not support this idea. MSUC (Moore/Cox) to accept the report. Di scussion followed regardi ng the use of the Agency's powers of emi nent domai n in order to bri ng a grocery store into the area. Chairman Cox suggested that as part of the marketing study to be performed downtown, this subject be explored. MSUC (Scott/Ma1co1m) refer to staff for a report back at the next meeting on what the Agency can and cannot do. ITEM NO.4 - REPORT: STATUS OF LA FONDA DE ROBERTO'S RESTAURANT The proposed desi gn for conversion of the commerci al property located at 300 Third Avenue into a Mexican restaurant was approved by the Agency in September subsequent to Design Review Committee approval. The approved plans call for the constructi on of three new wi ndows on the "F" Street facade and the addition of shed-sty1 e canopies. The owners request to change the shed overhangs to awnings due to structural building changes and excessive expense associ ated wi th the construction of shed canopies. The Desi gn Review Committee will review the proposed request this afternoon. Development Speci a1 i st Kassman reported that at the Desi gn Review Committee meeting still in session, the Committee disapproved of the proponent's request and suggested they come back with something more architecturally pleasing. Therefore, the item was deferred for one month. MSUC (Scott/Cox) to accept the report. ----_.._-_.__._._._-------~-----_._,-------- Adjourned Regular Redevelopment Agency Mi nutes -5- November 15, 1984 ITEM NO. 5 - REPORT ON COMMERCIAL DEPTH ON THE WEST SIDE OF THIRD AVENUE BETWEEN PARK WAY AND "G" STREET In May 1984, the Council directed staff to prepa re a report and recommendations on the impact of increasing the commercial depth on the west side of Third Avenue between Park Way and "G" Street. The study was prompted by the recent move of the Sweetwater Authority into its new offices on Garrett Avenue from their Third Avenue site in the Redevelopment Area. MSUC (Cox/Moore) to accept the report and ask staff to contact property owners on Third Avenue and report back on their concerns. ITEM NO. 6 - REPO RT: BAY FRONT FINE ARTS FEE At their mid-Dctober meeting, the Redevelopment Agency discussed the proposed Fi ne Arts fee. At that time, they suggested several opti ons which they requested staff explore further. MSUC (McCand1i ss/Cox) accept report and refer opti ons to the De si gn Review Committee and Chu1a Vista Investment Company for their input. ITEM NO. 7 - REPORT: DEVELOPMENT OF PARCELS AT THE NORTHEAST QUADRANT OF BAY BOULEVARD AND "E" STREET (JOE STREET PARCEL) The subject property has been proposed for the development of motel and restaurant uses for the past 10 years. A proposal has bee n su bmi tted 0 n behalf of a developer who has negotiated to purchase the Street parcel and the value of the sublease and lease. Control of the fee ownership on the rear parcel is still in question. Staff recommends that they be directed to inform Mr. Street and the controlli ng interest of both properties that the proposal is consistent with the Bayfront Land Use Plan and before final plan is approved, the developer should continue to work with Agency consultants and the Ci ty' s Traffic Engi neer for the greatest degree of f1 exibi 1i ty regarding the freeway ramp design. Community Development Desrochers described the parcel as depicted on the sketch that was displayed for members' review. In order to allow development to proceed, Mr. De srochers suggested that the motel shown in the middle portion of the property be allowed and extreme rear be preserved. MSUC (Scott/Cox) to accept the staff recommendation. City Engi neer Lippitt reported that the Traffic Engi neer has met wi th the traffic engi neeri ng consul tants, Herman Ki mme1 and Assoc i ates. Wi thout the Street property, "E" Street wou1 d be the only entrance to the Bayfront. Member Scott left the meeting at this time. Discussion followed regarding the amount of property that could be taken for dedicati on. Agency Attorney Harron pointed out that a determination must me made that the property can be reasonably developed, otherwi se there is a pub1 ic taki ng. ..--.--. .__._.._-"--_.....~-_._._. .------ Adjourned Regular Redevelopment Ag ency Mi nutes -6- November 15, 1984 ITEM NO. 8 - RESOLUTION NO. 544 - APPROVING AN OWNER PARTICIPATIDN AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND SAMMIS PROPERTI ES FOR THE DEVELOPMENT OF LDTS 15, 16, AND 17 OF THE OTAY VALLEY INDUSTRIAL PARK SUBDIVISION Sammi s Properties has submitted a plan to develop three parcel s of approved i ndustri a1 subdivision located within the Ot é\Y Valley Road Re deve 1 opment Project Area. A Negative Dec1 aration was issued for the proposal a nd the Project Area Committee and Design Revi ew Committee have revi ewed the development. Communi ty Development Di rector De srochers reported that the Design Review Committee favorably approved the project. The Otay Valley Road Project Area Committee was apprised of the project but, at the time, could not take action since they have not adopted design guidelines for the Redevelopment Area. The Design Review Committee considered this project under citywide design review procedures. The Project Area Committee will again consider thi s item at a future meeting. RESOLUTION OFFERED BY CHAIRMAN COX, the reading of the text was waived by unanimous consent, passed and adopted unanimously by those present. DIRECTOR'S COMMENTS: None. CHAIRMAN'S REPORT: None. MEMBERS' COMMENTS: Member r~cCand1 i ss commented on the effect on the Super Fu nd 1 i sti ng of the Apache dump site due to the removal of the water quality requirement to clean up the site. MSUC (McCandliss/Cox) to have staff contact the Water Resources Board to determine the status of the clean up on the site (Apache dump), any kind of water monitoring being done in the area, and refer this item to the Task Force on Environmental Concerns for their review and comment. ADJDURtfoIENT AT 5:46 p.m. to the regu1 ar meeti ng of Thursday, December 6, 1984, at 7 p.m. P~~;' SO,,,,.,, WPC 1315H __.__u. __'0.'.._ _._..._._.._---_.__._~-------_.-