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Home My WebLink Aboutcc min 1999/12/14 RDA & HA MINUTES OF AN ADJOURNED MEETING OF THE CITY COUNCIL, THE HOUSING AUTHORITY AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA December 14, 1999 6:00 p.m. Adjourned meetings of the City Council, the Housing Authority and the Redevelopment Agency of the City of Chula Vista were called to order at 6:52 p.m. in the Council Chambers located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. 1. ROLL CALL: PRESENT: Agency/Council/Authority Members Davis, Moot, Padilla, Salas, Chair/Mayor Horton ABSENT: Agency/Council/Authority Members: None CONSENT ITEMS (Items 2 through 3) 2. AGENCY RESOLUTION NO. 1657 AND COUNCIL RESOLUTION NO. 19724, JOINT RESOLUTION OF THE REDEVELOPMENT AGENCY AND CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING 1998-1999 BLIGHT PROGRESS REPORT In 1998, the State Legislature adopted changes to the reporting requirements of local Redevelopment Agencies requiring the annual adoption of Blight Progress Reports (Health and Safety Code § 33080.1(d). This is the first fiscal year in which these reports are due to the State Controller. The reports are in the form of a summary record of"major projects and expenditures" undertaken to eliminate blight in adopted redevelopment project areas. (Director of Community Development) Staff recommendation: The Agency and City Council adopt the resolution. 3. AGENCY RESOLUTION NO. 1658 APPROViNG A CONTRACT WITH ECONOMICS RESEARCH ASSOCIATES AND TUCHSHER DEVELOPMENT ENTERPRISES TO PROVIDE CONSULTiNG SERVICES FOR DOWNTOWN BUSINESS RECRUITMENT STRATEGY AND IMPLEMENTATION In July 1999, the Agency issued a Request for Proposals (RFP) for the development of a comprehensive business recruitment strategy and recruitment services for the Town Centre I Redevelopment Project Area. The RFP generated a total of eight proposals following distribution to over 100 consulting firms. Interviews of the eight respondents were conducted by a panel that included representatives from the Town Centre Project Area Committee, the Downtown Business Association, and the Community Development Department's Economic Development and Redevelopment Divisions. The selection panel unanimously recommended selection of the Economies Research Associates (ERA) and Tuchscher Development Enterprises team. (Director of Community Development) Staffrecommendation: The Agency adopt the resolution. ACTION: Chair/Mayor Horton moved to approve staff recommendations and offered the Consent Calendar, headings read, texts waived. The motion carried 5-0. ORAL COMMUNICATIONS There were none. PUBLIC HEAR1NGS AND RELATED RESOLUTIONS AND ORDINANCES 4. PUBLIC HEAR1NG: CITY COUNCIL CONSIDERATION OF THE ISSUANCE OF TAX EXEMPT OBLIGATIONS BY THE HOUSING AUTHORITY WITH RESPECT TO SALT CREEK VILLAS AFFORDABLE HOUSING PROJECT A. HOUSING AUTHORITY RESOLUTION NO. HA-12 REGARDING ITS INTENTION TO ISSUE TAX EXEMPT OBLIGATIONS FOR SALT CREEK VILLAS B. COUNCIL RESOLUTION NO. 19725 APPROVING THE ISSUANCE, SALE AND DELIVERY OF MULTI-FAMILY HOUS1NG REVENUE BONDS BY THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA FOR SALT CREEK VILLAS The City has received a request from Chelsea Investment Corporation to issue an $8,000,000 Tax Exempt Multi-Family Revenue Bond to finance a proposed 150-unit rental housing project, with a minimum of 40 percent of the units to be affordable to low income households. The project is to be known as "Salt Creek Villas," located west of the Olympic Training Center on Olympic Parkway within the EastLake II and III subdivisions of eastern Chula Vista. The City Council is being asked to hold a public hearing on the question of whether the Housing Authority should issue tax-exempt bonds for the financing of the project. Additionally, it is requested that the Housing Authority adopt a resolution expressing its preliminary intention to issue bonds and the Council adopt a resolution authorizing the issuance, sale and delivery of the bonds by the Authority. The requested actions are preliminary and do not commit the Authority to issue the bonds or to provide other financial assistance. Such preliminary actions are necessary in order to allow the project developer to submit an application to the State bonding authority. (Director of Community Development) Notice of the hearing was given in accordance with legal requirements, and the heating was held on the date and at the time specified in the notice. Authority/Agency/Council Member Salas asked Staff to ensure that adequate public transportation would be made available to the project. Chair/Mayor Horton opened the public heating and asked if anyone from the audience wished to speak. There was no response, and she closed the public heating. ACTION: Deputy Mayor/Agency/Authority Member Moot offered Housing Authority Resolution No. HA-12, Resolution of the Housing Authority of the City of Chula Vista regarding its Intention to Issue Tax-Exempt Obligations for Salt Creek Villas; and Council Resolution No. 19725, Resolution of the City Council of the City of Chula Vista Approving the issuance, Sale and Delivery of Multifamily Housing Revenue Bonds of the Housing Authority of the City of Chula Vista for Salt Creek Villas, headings read, texts waived. The motion carried 5-0. Page 2 - Council/RDA/Housing Authority Minutes 12/14/99 ACTION ITEMS 5. AGENCY RESOLUTION NO. 1659 AND COUNCIL RESOLUTIONNO. 19726, JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A CONCEPTUAL FINANCIAL PLAN FOR THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AND AUTHORIZiNG STAFF TO ASSEMBLE A FINANCIAL TEAM AND RELATED CONTRACTS AND DOCUMENTS TO PROCEED In May 1999, the Council and the Agency secured the services of Rod Gunn Associates (RGA) to analyze the Agency's fiscal condition. RGA is recommending a two-phased financial plan to meet specific Agency financial objectives. Phase I proposes the issuance of tax-exempt bonds from the Otay Valley Road, Town Centre II and Southwest Project Areas to be used to repay some inter-fund loans, eliminate existing fund balance deficits in the Bayfront/Town Centre I and Southwest project areas, and provide funding for future Agency projects in order to take advantage of the development opportunities in the current growth economy. Phase II contemplates a financial merger of all of the project areas and subsequent issuance of more bonds before 2004, which is the last year to incur debt in the original areas of Bayfront/Town Centre I, Town Centre II and Otay Valley Road. Phase II is not recommended at this time since the tax increment revenue picture in the Bayfront project areais unclear. (Director of Community Development, Finance Director) Community Development Director Salomone presented the background of the Agency, the objectives of the Financial Plan, and recommended that the Council and Agency adopt the resolution and authorize Staff to assemble a financial team and related contracts and documents in order to proceed. ACTION: Chair/Mayor Horton offered Agency Resolution No. 1659 and Council Resolution No. 19726, Joint Resolution of the City Council and the Redevelopment Agency of the City of Chula Vista Approving a Conceptual Financial Plan for the Redevelopment Agency of the City of Chula Vista and Author/zing Staff to Assemble a Financial Team and Related Contracts and Documents to Proceed, heading read, text waived. The motion carried 5-0. OTHER BUSINESS 6. DIRECTOR'S REPORTS There were none. 7. MAYOR'S/CHAIR'S Reports There were none. 8. AGENCY/AUTHORITY/COUNCIL MEMBER COMMENTS There were none. At 7:25 p.m., Chair/Mayor Horton recessed the meeting to Closed Session. Page 3 - Council/PDA/Housing Authority Minutes 12/14/99 CLOSED SESSION - 9. CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: Agency-owned parcels at the northwest comer of Third Avenue and H Street Negotiating parties: Redevelopment Agency (Chris Salomone) and Chrismatt Corporation, a California Corporation, dba Pieri Company (James V. Pieri) Under Negotiation: Price and terms for disposition/acquisition Instructions were given to the Negotiator. 10. CONFERENCE WITH LEGAL COUNSEL REGARDING ANTICIPATED LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(c), INITIATION OF LITIGATION One case Instructions were given to Counsel. ADJOURNMENT At 8:50 p.m., Chair/Mayor Horton adjourned the meeting. Respectfully submitted, - Susan Bigelow, CMC/AAE, City Clerk Page 4 - Council/RDA/Housing Authority Minutes 12/14/99