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Home My WebLink Aboutcc min 2001/11/20 RDA & HA MINUTES OF ADJOURNED REGULAR MEETINGS OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY AND A SPECIAL MEETING OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA November 20, 2001 6:00 P.M. Adjourned Regular Meetings of the City Council and Redevelopment Agency, and a Special Meeting of the Housing Authority of the City of Chula Vista, were called to order at 7:25 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, and City Clerk Bigelow CONSENT CALENDAR 1. APPROVAL OF MINUTES of October 23, November 6 and November 13, 2001. Staff recommendation: The Redevelopment Agency/City Council approve the minutes. 2. AGENCY RESOLUTION NO. 1758, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING $10,420 TO COVER ADDITIONAL COSTS OF THE PUBLIC IMPROVEMENTS ASSOCIATED WITH AN 11 UNIT TRANSITIONAL HOUSING PROJECT KNOWN AS TROLLEY TRESTLE LOCATED AT 746 ADA STREET, AND APPROPRIATING SAID AMOUNT FROM THE REDEVELOPMENT AGENCY'S LOW AND MODERATE INCOME HOUSING FUND On June 22, 1999, the Agency approved a disposition, development and housing cooperation agreement with South Bay Community Services (SBCS) for the development of an I 1-unit transitional housing development for foster care graduates, known as Trolley Trestle and located at 746 Ada Street. The project was completed in December 2000. SBCS is requesting a grant of $10,420 to meet increased costs related to the off- site improvements of the project. (Community Development Director) Staffrecommendation: Agency adopt the resolution. 3. COUNCIL RESOLUTION NO. 2001-400 AND AGENCY RESOLUTION NO. 1759, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA WAIVING CONFLICT OF INTEREST IN CONNECTION WITH RUTAN & TUCKER, LLP'S REPRESENTATION OF THE CITY OF CHULA VISTA, THE REDEVELOPMENT AGENCY AND THE OLSON COMPANY CONSENT CALENDAR (Continued) Currently, the City and Redevelopment Agency are employing the legal services of Rutan & Tucker, LLP on a number of important City and Agency issues. Rutan & Tucker, LLP also represents The Olson Company, a builder of affordable urban communities in California, on many of the redevelopment housing projects it undertakes. At this time, The Olson Company has commenced discussions with a developer, Barone Galasso & Associates, Inc., that may lead to a City housing project involving for-sale and apartment units. As they have done in the past regarding similar matters, The Olson Company wishes Rutan & Tucker to represent them with respect to this project. If this happens, Rutan & Tucker would then experience a conflict of interest because of its dual role as counsel for both parties (albeit in separate matters). Therefore, to continue as counsel for all parties (City, Agency, and Olson), Rutan & Tucker must notify its affected clients of the situation, assure them that its loyalty and quality of work will not be influenced by factors other than the client's best interest, and obtain each client's informed written consent. (City Attorney) Staff recommendation: Council/Agency adopt the resolution. ACTION: Chair/Mayor Horton moved to approve staff recommendations and offered Consent Calendar Items #1 through #3, headings read, texts waived. The motion carried 5-0. ACTION ITEMS 4. CONSIDERATION OF THE ISSUANCE OF MULTI-FAMILY HOUSiNG REVENUE BONDS AND APPROVAL AND EXECUTION OF THE NECESSARY DOCUMENTS AND APPROVAL OF THE AGENCY'S LOAN AND REGULATORY AGREEMENTS FOR THE HERITAGE TOWN CENTER MULTI-FAMILY RENTAL HOUSiNG DEVELOPMENT On May 29, 2001, the Housing Authority of the City of Chula Vista held a public heating and approved a resolution expressing the Authority's intent to issue multi-family housing revenue bonds to finance a proposed 271-unit, multi-family, rental housing project for low and moderate income households within the Otay Ranch master planned community (Heritage Town Center). Additionally, the Agency/Council conditionally approved financial assistance in the form of a residual receipts loan from the Agency's low and moderate-income housing fimd in an amount not-to-exceed $4.4 million and a deferral and waiver of certain City fees. The developer has since received a commitment of 2001 private activity bonds for multi-family rental housing projects from the California Debt Limit Allocation Committee. At this time, the Authority is asked to approve a bond resolution authorizing the issuance of $15,400,000 in tax-exempt bonds for the financing of the project and execution in substantial form and other related documents. As a condition of the Agency's financial assistance, the developer is to enter into a loan and regulatory agreement with the Agency and City specifying terms of the financial assistance and use of the project as an affordable housing development for low and moderate-income households for a period of 55 years. (Community Development Director) Page 2 Council/RI)A/HA Minutes 11/20/01 ACTION ITEMS (Continued) Housing Coordinator Arroyo informed the Council of two adjustments made to the business transaction: The public facilities development impact fee was reduced from $709,000 to $238,000. As required by the Municipal Code, the Planning Commission approved the waiver of the residential construction tax, in the amount of approximately $73,000, on November 14, 2001. Mr. Arroyo stated that construction is expected to begin within the next two months and be completed in approximately 18 months. ACTION: Deputy Mayor Davis offered Housing Authority Resolution No. HA-20, Council Resolution No. 2001-401, and Agency Resolution No. 1760, headings read, texts waived: HOUSiNG AUTHORITY RESOLUTION NO. HA-20, RESOLUTION OF THE HOUSiNG AUTHORITY OF THE CITY OF CHULA VISTA AUTHORIZiNG THE ISSUANCE OF MULTI-FAMILY HOUSiNG REVENUE BONDS 1N AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $15,400,000 FOR THE PURPOSE OF FINANCING THE ACQUISITION AND CONSTRUCTION OF THE HERITAGE TOWN CENTER MULTI-FAMILY RENTAL HOUSING PROJECT, APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF ANY AND ALL DOCUMENTS NECESSARY TO ISSUE THE BONDS AND IMPLEMENT THIS RESOLUTION, AND RATIFYING AND APPROVING ANY ACTION HERETOFORE TAKEN IN CONNECTION WITH THE BONDS COUNCIL RESOLUTION NO. 2001-401, AND AGENCY RESOLUTION NO. 1760, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA [A] APPROVING A LOAN AGREEMENT AND RELATED RESTRICTIVE CONVENANTS AND THE AFFORDABLE HOUSING AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY AND SOUTH BAY COMMUNITY VILLAS, L.P. AND AUTHORIZING THE CHAIRMAN OF THE REDEVELOPMENT AGENCY TO EXECUTE SAID AGREEMENTS; [B] APPROPRIATiNG $4,400,000 FROM THE UNAPPROPRIATED BALANCE IN THE LOW AND MODERATE INCOME HOUSiNG FUND FOR FiNANCIAL ASSISTANCE TO SOUTH BAY COMMUNITY VILLAS, L.P.; [C] APPROVING A TEN YEAR DEFERRAL OF THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE AND WAIVER OF THE PARK FEE; AND [D] APPROVING A DEFERRAL AGREEMENT FOR THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT FOR THE DEVELOPMENT AND OPERATION OF HERITAGE TOWN CENTER The motion carried 5-0. Page 3 Council/RDA/HA Minutes 11/20/01 ORAL COMMUNICATIONS - There were none. OTHER BUSINESS 5. DIRECTOR'S REPORTS There were none. 6. CHAIR/MAYOR REPORTS There were none. 7. AGENCY/COUNCIL COMMENTS There were none. CLOSED SESSION Mayor Horton announced that Closed Session was cancelled, and the following items were not discussed. 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 Various Tenant Interests Under Negotiation: Lease terms 9. CONFERENCE WITH LEGAL COUNSEL REGARDING ANTICIPATED LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(B) One Case ADJOURNMENT At 7:35 p.m., Chair/Mayor Horton adjourned the meeting to the Regular Meeting of the Redevelopment Agency on December 4, 2001, at 4:00 p.m., immediately following the City Council meeting. Susan Bigelow, CMC/AAE, City Clerk Page 4 Council/RDA/HA Minutes 11/20/01