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