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HomeMy WebLinkAboutcc min 2003/06/17 RDA & HA MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL, A REGULAR MEETING OF THE REDEVELOPMENT AGENCY, AND A SPECIAL MEETING OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA June 17, 2003 6:00 p.m. An Adjourned Regular Meeting of the City Council, a Regular Meeting of the Redevelopment Agency, and a Special Meeting of the Housing Authority of the City of Chula Vista were called to order at 8:26 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Agency/Authority/Councilmembers: Davis, McCann, Rindone, Salas, and Chair/Mayor Padilla ABSENT: Agency/Authority/Counc'flmembers: None ALSO PRESENT: Executive Director/City Manager Rowlands, Senior Assistant City Attorney Googins, and City Clerk Bigelow CONSENT CALENDAR 1. ORDINANCE NO. 2920, ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE MITIGATED NEGATIVE DECLARATION IS- 03-016 AND PRECISE PLAN PCM-03-15 FOR THE MIXED-USE PROJECT KNOWN AS BROADWAY URBAN VILLAGE CONSISTING OF 40 LANE HOMES AND NINE LOFT APARTMENTS ABOVE 9,000 SQUARE FEET OF COMMERCIAL SPACE The development is a mixed-use project in the central commercial zoning district. The mitigated negative declaration and mitigation monitoring and reporting program have been prepared in accordance with requirements of the California Environmental Quality Act and the City's environmental review procedures. The project has been evaluated in accordance with the goals and objectives of the Southwest Redevelopment Project Area and the General Plan relative to mixed-use development along Broadway. The Precise Plan will allow the project to be consistent with goals and objectives of the General Plan and Chula Vista Municipal Code. (Community Development Director/Planning and Building Director) Staff recommendation: Council place the ordinance on second reading for adoption. 2. RESOLUTION NO. 2003-276, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR 2003-2004 Article XIIIB of the California Constitution, approved by the voters in 1979 and commonly referred to as the Gann Initiative, requires each local govemment to establish an appropriations limit by resolution each year at a regularly scheduled meeting or noticed special meeting. The purpose of the limit is to restrict spending of certain types of revenues to a level predicated on a base year amount increased annually by an inflation factor. (Finance Director/Treasurer Kachadoorian) Staff recommendation: Council adopt the resolution. CONSENT CALENDAR (Continued) 3. COUNCIL RESOLUTION NO. 2003-277, AND AGENCY RESOLUTION NO. 1827, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA GRANTING REIMBURSEMENT IN THE AMOUNT OF $18,797 TO THE METROPOLITAN AREA ADVISORY COMMITTEE TO COVER THE COST OF ON-STREET IMPROVEMENTS INSTALLED AS PART OF THE REHABILITATION AND REUSE OF THE BUILDING AT 1351-1395 THIRD AVENUE WITHIN THE SOUTHWEST REDEVELOPMENT PROJECT AREA, AND APPROPRIATING $18,797 FROM THE UN-APPROPRIATED BALANCE OF THE MERGED PROJECT FUND FOR THIS In October 2001, the Metropolitan Area Advisory Committee (MAAC) entered into an owner participation agreement with the Agency for the rehabilitation and re-use of the commercial building located at 1351-1395 Third Avenue. MAAC has completed the improvements and is requesting financial assistance from the Agency for a portion of the cost of the improvements. (Community Development Director) Staff recommendation: Council/Agency adopt the resolution. ACTION: Chair/Mayor Padilla moved to approve staff's recommendations and offered the Consent Calendar, headings read, texts waived. The motion carded 5-0. Chair/Mayor Padilla left the dais at 8:30 p.m. PUBLIC HEARINGS 4. CONSIDERATION AND ADOPTION OF THE OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR THE CITY, AND THE OPERATING BUDGETS FOR THE REDEVELOPMENT AGENCY AND THE HOUSING AUTHORITY FOR THE FISCAL YEAR ENDING JUNE 30, 2004 AND 2005 The Council has received and considered the City Manager's proposed operating and capital improvement budgets for the City and the operating budgets for the Redevelopment Agency and Housing Authority for the fiscal year ending June 30, 2004 and 2005. Three work sessions were held to consider and deliberate on the recommendations contained in those initial documents, as well as additions and deletions identified after the proposed budget document was primed. The budgets submitted for adoption represent the City Manager's initial spending plan as amended in accordance with tentative Council direction received during the budget work sessions. (Assistant City Manager Fmchter; Director of Finance Kachadoorian) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Agency/Authority/Councilmember Rindone opened the public hearing and asked if anyone from the audience wished to speak. There was no response, and he then dosed the hearing. Page 2 Council/RDA Minutes 06/17/03 PUBLIC HEARINGS (Continued) Agency/Authority/Councilmember Rindone asked staff to update the public regarding code enforcement and graffiti abatement in the City. Assistant Planning & Building Director/Building Official Remp responded that additional code enforcement staff is being placed in the field and will give particular attention to the Interstate 5 corridor and trolley station locations. He added that the additional staff would enable the City to address a larger variety of complaints and also increase interaction with the community. Agency/Authority/Councilmember Rindone requested that staff provide a memorandum to the Council on the City's graffiti abatement program. ACTION: Agency/Authority/Councilmember Davis offered Council Resolution No. 2003- 278, Agency Resolution No. 1828, and Housing Authority Resolution No. HA-23, headings read, texts waived: A. RESOLUTION NO. 2003-278, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR 2004 AND APPROPRIATING FUNDS THEREFOR, AND APPROVING IN CONCEPT THE PROPOSED BUDGETS FOR FISCAL YEAR 2005 B. AGENCY RESOLUTION NO. 1828 AND HOUSING ALrrHORITY NO. HA- 23, RESOLUTION OF THE REDEVELOPMENT AGENCY AND THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ADOPTING THE OPERATING BUDGETS FOR THE REDEVELOPMENT AGENCY AND HOUSING AUTHORITY FOR FISCAL YEAR 2004 AND APPROPRIATING FUNDS THEREFOR, AND APPROVING IN CONCEPT THE PROPOSED BUDGETS FOR FISCAL YEAR 2005 The motion carried 4-0, with Chair/Mayor Padilla absent. 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) ACCEPTING A PRELIMINARY REPORT ON ALTERNATIVES TO MEET THE EASTLAKE COMPANY'S AFFORDABLE HOUSING OBLIGATION FOR EASTLAKE II/III; (2) APPROVING DEVELOPER REQUEST TO WITHDRAW APPLICATION FOR MULTIFAMILY REVENUE BONDS FROM THE CALIFORNIA DEBT LIMIT ALLOCATION COMMfI'I'EE (CDLAC), PRIOR TO JUNE 25, 2003; (3) DIRECTING STAFF TO WORK WITH DEVELOPER AND EASTLAKE COMMUNITY, AND RETURN TO COUNCIL WITHIN 120 DAYS WITH A FINAL RECOMMENDATION; AND (4) DIRECTING THE CITY ATFORNEY TO RETURN TO COUNCIL ON JULY 15 WITH AN AGREEMENT TO ADDRESS EASTLAKE'S AFFORDABLE HOUSING OBLIGATION WITH RESPECT TO THIS ALTERNATIVE Page 3 Counc'd/RDA Minutes 06/17/03 PUBLIC HEARINGS (Continued) On April 8, 2003, a joint meeting of the City Council, Redevelopment Agency, and Housing Authority was convened to consider a 150-unit affordable housing complex known as "Rancho Vista Apamnents at Eastlake," within the Eastlake master planned community. The project was proposed to meet the Eastlake Company's 183-unit affordable housing obligation for the Trails, Woods, Vistas and "Land Swap" parcels (II/III). It is located on a vacant 8.25-acre (gross) site on the east side of future Eastlake Parkway, approximately 3,000 feet south of Clubhouse Drive. This project would be developed, owned and operated by CIC Eastlake, L.P., a partnership between Pacific Southwest Community Development Corporation and Chelsea Investment Corporation. (Community Development Director) Notice of the heating was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Community Development Director Madigan reported on alternatives to meet the Eastlake Company's affordable housing obligation for Eastlake II and III. Agency/Authority/Councilmember Salas expressed concern regarding the possible consequences of postponing the proposed project in light of new legislation that would require the City to pay prevailing wage for affordable housing subsidized by the City. Community Development Director Madigan responded that if the application were to go into the next funding cycle, it would necessitate paying prevailing wage at an approximate cost of $1,100,000 to the City for the project. Agency/Authority/Councilmember Salas asked if there were any assurances for funding for this type of project in the next fiscal year. Community Director Madigan replied that the City would have to compete again for CDLAC funding, and there is no guarantee that the City would receive the points needed. Agency/Authority/Councilmember Salas asked if the City has a timeframe for a community workshop and the ability to meet the CDLAC deadlines and funding for this year. City Manager Rowlands responded that the state funding deadline has been amended from June 25 to July 9, 2003, and, consequently, the City will be conducting community meetings over the next three weeks between the Eastlake community, developer, and City staff to discuss the proposed project. Staff will then return to the Council with a recommendation at the July 8, 2003 Council meeting. Wally Dikeman, representing Chelsea Investment Corporation, responded regarding the security of funding sources, stating that the investment tax credits and the low income tax-exempt housing bonds used to finance the project are allocated to the state by the federal government. Agency/Authority/Councilmember Salas requested that staff or the developer provide a report that profiles the concerns of residents regarding low-income housing projects and incidents of crime and noise. She suggested asking the opinions of neighbors surrounding similar low- income projects in the City. Agency/Authority/Councilmember Rindone opened the public hearing. Debra Wheeler, an Eastlake resident, stated that she was given insufficient notice of the proposed project and was, therefore, unable to obtain statistics and information as to the effects of such projects on property values and schools. Ms. Wheeler stated that she would rather have a senior housing project in the area, and she did not feel that affordable housing should be concentrated in Eastlake. Page 4 Council/RDA Minutes 06/17/03 PUBLIC HEARINGS (Continued) Judd Wheeler, an Eastlake resident, stated that he received short notice about the proposed project and that the notice should be provided to all residents who will potentially be affected. He also believed that the community should be better informed regarding the City's perception of low-income housing. Mitch Thompson stated that the inclusionary policy should be considered in the decision-making process, since it is intended to create balanced communities, and he believed that if the proposed project is converted to home ownership, it will result in almost no rental housing on the east side. Evan Becket, representing the Red Capital Group, San Diego, stated that the company is working with the developer as the providers of debt and equity financing for the proposed project, and he offered assistance to the City, developers, and the Eastlake community in providing information regarding affordable housing. Valerie McFaflin, president of the Antigua Homeowners Association, believed that affordable rentals would do nothing to alleviate poverty. She stated that there was no provision offered for Antigua homeowners for any kind of equity split with the City, which has resulted in the ability of current homeowners to sell their homes at a profit in excess of $150,000. She felt that any future for-sale affordable housing should include a provision for shared equity with the City to expand oppommities for home ownership to the community. Arthur Smith, a resident of Antigua, concurred with the comments made by Mr. and Mrs. Wheeler and Ms. McFarlin. He added that the community is looking forward to receiving information regarding the proposed affordable housing project. Agency/Authority/Councilmember McCann expressed the need for the City to engage the community in future projects and to ensure that they receive proper notification and an explanation of proposed low-income housing. Agency/Authority/Councilmember Davis expressed concern that if the project were delayed, it would result in a loss of CDLAC funding and in additional costs to the City by having to pay prevailing wage. Agency/Authority/Councilmember Salas asked whether participants in the City's first-time homebuyer program could rent out their properties. Senior Community Development Specialist Hines responded that the owners must maintain their property as their principal residence. Agency/Authority/Councilmember Salas believed that it was important to have a balance of for- sale and rental housing. ACTION: Agency/Authofity/Councilmember Davis moved to continue the hearing to July 8, 2003. Agency/Authority/Councilmember Salas seconded the motion, and it carried 4-0 with Chair/Mayor Padilla absent. Page 5 Council/RDA Minutes 06/17/03 ORAL COMMUNICATIONS There were none. OTHER BUSINESS 6. DIRECTOR'S REPORTS There were none. 7. CHAIR/MAYOR REPORTS There were none. 8. AGENCY/AUTHORITY/COUNCIL COMMENTS Agency/Authority/Councilmember McCann commented that he had recently attended a public meeting regarding affordable housing, and people wanted more information on what was going on in the community as a whole. He asked that consideration be given to holding another open house in the Eastlake and Otay Ranch communities for a general community update. Executive Director/City Manager Rowlands replied that a community meeting has been scheduled for October 15, 2003, at the Heritage Community Center. CLOSED SESSION Closed Session was cancelled and the following item was not discussed: 9. CONFERENCE WITH LEGAL COUNSEL REGARDING INITIATION OF LITIGATION - Pursuant to Government Code Section 54956.9(c) One Case. ADJOURNMENT At 9:25 p.m., Agency/Authority/Councilmember Rindone adjourned the meeting, with the Redevelopment Agency adjourned to an Adjourned Regular Meeting on July 8, 2003, at 6:00 p.m., immediately following the City Council Meeting in the Council Chambers. Susan Bigelow, CMC, City Clerk Page 6 Council/RDA Minutes 06/17/03