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Home My WebLink Aboutcc min 2001/06/19 RDA MINUTES OF AN ADJOURNED REGULAR MEET1NG OF THE CITY COUNCIL, A SPECIAL MEETiNG OF THE HOUSiNG AUTHORITY, AND A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA June 19, 2001 4:00 P.M. An Adjourned Regular Meeting of the City Council, a Special Meeting of the Housing Authority, and a Regular Meeting of the Redevelopment Agency of the City of Chula Vista were called to order at 4:57 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, Padilla, Rindone, Salas, and Chair/Mayor Horton ABSENT: Agency/Authority/Councilmembers: None ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/Authority/City Attorney Kaheny, City Clerk Bigelow CONSENT CALENDAR 1. APPROVAL OF MINUTES Staff recommendation: Redevelopment Agency/City Council approve the minutes of the regular meeting of the Redevelopment Agency and adjourned meeting of the City Council for May 29, 2001; and that the Housing Authority approve the minutes of special meetings on February 20, 2001, and May 29, 2001. 2. COUNCIL RESOLUTION NO. 2001-202, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR 2001-02 Article XIIIB of the California Constitution, approved by the voters in 1979 and commonly referred to as the Gann Initiative, requires each local government 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. (Deputy City Manager Powell) Staff recommendation: Council adopt the resolution. ACTION: Chair/Mayor Horton moved to approve staff recommendations and offered Consent Calendar Items #1 and #2, headings read, texts waived. The motion carried 5-0. ORAL COMMUNICATIONS - There were none. PUBLIC HEARINGS 3. 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 FISCAL YEARS ENDING JUNE 30, 2002 AND 2003 The City 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 years ending June 30, 2002 and 2003. Two work sessions were held to consider and deliberate on the recommendations contained in those initial documents. 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. (Deputy City Manager Powell; Director of Budget & Analysis) Deputy City Manager Powell thanked the Council and City Manager Rowlands for their direction and support with the adoption and implementation of the bi-annual budget process. He also thanked City staff for their participation in the process. Chair/Mayor Horton opened the public hearing. Them being no members of the public wishing to speak, she then closed the heating. Agency/Authority/Councilmember Padilla stated that the Cotmcil has set forward ambitious capital improvement projects for the next two years, and he emphasized the need for Cotmcil to understand the impacts of funding approvals on the ability to leverage financing for the projects and sustain ongoing debt service. ACTION: Chair/Mayor Horton offered Council Resolution No. 2001-203, Agency Resolution No. 1734, and Housing Authority Resolution No. HA-19, headings read, texts waived: COUNCIL RESOLUTION NO. 2001-203, 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 2002, APPROPRIATING FUNDS THEREFOR, AND APPROVING IN CONCEPT THE PROPOSED BUDGETS FOR FISCAL YEAR 2003 AGENCY RESOLUTION 1734 AND HOUSING AUTHORITY RESOLUTION HA-19 ADOPTING THE OPERATING BUDGETS FOR THE REDEVELOPMENT AGENCY AND HOUSING AUTHORITY FOR FISCAL YEAR 2002, APPROPRIATING FUNDS THEREFOR, AND APPROVING IN CONCEPT THE PROPOSED BUDGETS FOR FISCAL YEAR 2003 The motion carded 5-0. Page 2 CouncilfR_DA/Housing Authority Minutes 06/19/01 ACTION ITEMS 4. CONSIDERATION OF A REQUEST FROM AVALON COMMUNITIES LLC FOR ADDITIONAL FINANCIAL ASSISTANCE TO ASSIST WITH THE DEVELOPMENT OF A MIXED USE PROJECT, INCLUDING 106 AFFORDABLE HOUSING UNITS, KNOWN AS MAIN PLAZA - On June 13, 2000, the Council/Agency approved a special use permit, density bonus, and conditionally approved financial assistance in the form of a loan not-to-exceed $1,060,000 to Avalon Communities LLC for the development of a mixed use project comprised of 106 affordable multi-family units and 15,000 square feet of retail commemial space. The "Main Plaza" project is proposed to be located on the northeast comer of Main Street and Broadway, within the Southwest Redevelopment Project Area and the Montgomery Specific Plan area. In June 2000, the developer applied to the State Tax Credit Allocation Committee for its nine percent low-income housing tax credit program; however, due to a very competitive funding round, the project did not receive the tax credit allocation. Since then, the development applied for multi-family revenue bonds from the Califomia Debt Limit Allocation Committee and, in May 2001, the project received a bond allocation of approximately $6.5 million. It is anticipated that the project will receive $3.4 million in tax credit equity from the accompanying four percent tax credit program. The $1,060,000 in Agency financial assistance was to provide gap financing required under the original financing proposal for nine percent tax credits. With the change in the project's major financing sources to bonds and four percent tax credits, a larger financing gap now exists. The developer has been actively seeking other sources of funds to help in filling the larger financing gap for the project but has been unsuccessful in its funding applications to date. (Community Development Director) ACTION: Agency/Authority/Councilmember Salas offered Agency Resolution No. 1735 and Council Resolution No. 2001-204, headings read, texts waived: RESOLUTION NO. 1735 OF THE REDEVELOPMENT AGENCY AND RESOLUTION NO. 2001-204 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CONDITIONALLY APPROVING ADDITIONAL FINANCIAL ASSISTANCE, SUBJECT TO FUTURE APPROPRIATION, IN THE FORM OF A LOAN FROM HOME FUNDS AND THE LOW AND MODERATE INCOME HOUSING FUND 1N AN AMOUNT NOT-TO- EXCEED $300,000 AND $450,000, RESPECTIVELY, TO AVALON COMMUNITIES LLC FOR THE DEVELOPMENT OF A MIXED USE PROJECT, INCLUDING 106 AFFORDABLE HOUSING UNITS The motion carded 5-0. OTHER BUSINESS There were none. 5. DIRECTOR'S REPORTS There were none. Page 3 Council/RDA/Housing Authority Minutes 06/19/01 OTHER BUSINESS (Continued) 6. CHAIRYMAYOR REPORTS There were none. 7. AGENCY/COUNCIL COMMENTS There were none. CLOSED SESSION 8. CONFERENCE WITH REAL PROPERTY NEGOTIATOR --Pursuant to Government Code Section 54956.8 Property: Assessor Parcel Nos. 568-270-03; 568-270-11 (approximately 2.85 acres located at the southeast comer of Fourth Avenue and F Street) Negotiating Parties: City Council / Redevelopment Agency (Sid Morris/ Chris Salomone) and Chula Vista Center (Robert Caplan) Under Negotiations: Price and terms for acquisition No reportable action was taken. ADJOURNMENT At 6:16 p.m., Deputy Mayor Davis adjourned the meeting to an adjourned regular meeting of the Redevelopment Agency on July 10, 2001 at 6:00 p.m., immediately following the City Council meeting. Respectfully submitted, Susan Bigelow, CMC/AAE, City Clerk Page 4 Council/RDA/Housing Authority Minutes 06/19/01