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HomeMy WebLinkAboutcc min 1994/06/21 RDA MINUTES OF AN ADJOURNED SPECIAL MEETING AND REGULAR MEETING ~ !~ OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA · Tuesday, June 21, 1994 Council Chambem 10:13 p.m. Public Services Building CALL TO ORDER 1. ROLL CALL: PRESENT: Members Fox, Moore, Rindone, and Acting Chairman Hotton ABSENT: Chairman Nader ALSO PRESENT: John D. Goss, Dh'ector; Bruce M. Boogaard, Agency Attorney, and Beverly A. Authelet, City Clerk 2. APPROVAL OF MINUTES: May 3, 1994; May 23, 1994; May 26, 1994; and June 1, 1994 MSC (Horton/Moore) to approve the minutes of May 3, 1994; May 23, 1994; May 26, 1994; and June 1, 1994 as presented. Approved 4-0-1 with Nader absent. CONSENT CALENDAR (Items pulled: none) CONSENT CALENDAR OF/~'ERED BY ACTING CHAIRMAN HORTON, reading of the text was waived, imssed and approved 4-0-1 with Nader absent. 3. WRITTEN COMMUNICATIONS: None submitted. 4. RESOLUTION 1410 AMENDlNG THE TOWN CENTRE I SIDEWALK CAFI~ POLICY- In 1982 the Redevelopment Agency approved the establishment of the Town C~ntre I Sidewalk Caf6 Policy. Since adoption of the policy, only a few sidewalk eaf~s have been set up for short periods of time. With the idea of encouraging restaurant, coffee shop, and bakery operators to set up sidewalk caf6s, staff has reviewed the existing policy. The proposed amendment to the existing policy is be'rag presented for consideration and approval. Staff recommends approval of the resolution. (COmmqlfity Development Director) * * END OF CONSENT CALENDAR * * PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES None submitted. ORAL COMMUNICATIONS None ACTION ITEMS 5. RESOLUTION 1390 ADOPTING THE REDEVELOPMENT AGENCY BUDGET FOR FY 1993-94 AND APPROPRIATING FUNDS THEREFOR-ITEM #5 IS AN ADJOURNED SPECIAL Minutes June 21, 1994 Page 2 MEETING ITEM--The FY 1993-94 Redevelopment Agency Budget was reviewed as part of the City budget approval process. As the Redevelopment Agency is a separate legal entity, it is necessary to approve the budget separately as required by California Commtluity Redevelopment Law. The formal Agency adoption of the budget had been delayed in order to determine the fill]. ilnpact of State budget resolutions and to complete the evaluation of staffing needs for the Economic Development function in the Cornmlnlity Development Department as directed by City Council during and subsequent to the City's budget review process. Continued from the meeting of 6/7/94. Staff recommends approval of the resolution. (Administration) Member Moore questioned if the budget included salaries, benefits, promotions, etc. for each of the individual projects. Mr. Goss responded thatwas correct. The Commtmity Development budgetand Redevelopment budget were sliced up by project areas. Each program listed was an allocation of the overall budget. The major problem was that they were suffering from an on-going deficit due to State budget take aways and a reassessment at Rohr in 1989/90. Staff initially though the RDA budget would go into the red for the current fiscal year, but in reviewing the material and overall humben it became clear the Agency would not go into the red in the current fiscal year. It had been recommended that the 1993/94 budget be adopted and then look at the issue of the deficit for the 1994/95 budget. He had submitted a report which included broad policy issues regarding the deficit. He then reviewed those options. Specific recommendations were: 1) the 1994/95 budget be adopted by disposing of Agency owned propefiies in order to reduce long term debt and that the approach be revisited; 2) update annually to chart the financial direction of the Agency; and 3) revise the investment policy to permit investment which would have a cap, i.e. not to exceed 8% of the investment pool. He was proposing that next years Agency budget reimburse the low/moderate income housing funds so there would not be a loss. He felt the proposal would lead toward a reduction of the expenditures of the RDA budget without impacting its ability to be effective. Staff had tried to be creative in dealing with a difficult problem. Member Rindone stated he was pleased that two steps had been taken, i.e. recognition that there was a problem and development of a proposal to address the issue. He questioned how much the debt service would be reduced. Lyle Haynes, Principal Community Development Specialist, responded that the proposal called for a reduction of the debt service on the 1986 tax allocation bonds of approximately $1.422 million for the next four to four end one- half years. Cumulativnly it was approximately $6.5 million in debt service avoidance. Member Rindone referred to the seven properties listed on page 7, last column, and questioned if they were the current fair market values. Chris Salomone, Director of Community Development, responded that it was a current market value. On the tirst two properties staff felt it was an honest market value. On the Port District properties, they were being appraised by the Port and at their original land use, i.e. paddand, therefore, staff falt they were accurate numbers with that understanding. If the hayfront did move forward it would ultimately be parkland and staff felt that was a good reason to dispose of the properties. On Fuller Ford and Southbay Chevrolet, staff was being conservative as they felt they were worth more than that and the RDA had paid more than that in an up market. Member Rindone stated the Marina Motor Hotel end 965 "F* Street were proposed to be sold to the Port and questioned if that would be feasible within the next twelve months. Mr. Goss felt it would be feasible, but it would take wok and cooperation with the Port Director. The Port had put money in th~tr five year CIP to accomplish acquisition and therefore, the money needed to be moved in the COming tiga] year, Member Rindone questioned if there were any environmental concerns on the fu'st property and, if so, if the fair market value reflected it. Minutes June 21, 1994 Page 3 Mr. Salomone responded that quite a bit of analysis had been done on the property end staff felt it was en accurate number. Member Rindone questioned access to the property. Mr. Salomone responded that it had not beon determined and was an outstanding issue. Access would have to ha through an ess~ment through Mr. Barkett's property. Member Rindone questioned if it was a different purchaser, other than the investment fired proposed, if the figures for the three properties would hold. Mr. Salomone responded that if the City went out to the market he did not feel they could get those prices due to the cun'ent market. He was concerned that even though the numbers were conservative they would not hold. Member Rindone stated he did not want to get a false sense of security and find that the proposed program would not work. He supported the City Manager's recommendation that the program be reviewed annually which would help to address some of his concerns. The other major issue he had concern with was the investment fired and questioned if anyone else was doing it. Mr. Goss responded the City had an investment pool that was currently making investments. The change would be that the investment pool, up to an 8-10% cap, could invest in real property that the City owned and felt had good value. Mr. Salomone stated staff had not conducted an investigation of other agencies or cities regarding those types of transactions. Member Rindone questioned what percentage of the investment fund was used to purchase bonds and assets. Susan Merrill, Interim Finance Administrator, responded that the pool investment varied ~'om between $80 and $90 million. The main percentage was approximately $25 million which was in LAIF. The remainder was in certificates of deposit with other institutions. The main portfolio was very cens~rvstive and in line with the City's investment policy. Member Rindone questioned how much of the investment pool was being invested. Ms. Merrill responded that approximately 99% was invested on a daily basis. Member Rindone questioned if staff was proposing to convert any of those investments by converting the non- productive assets and using those funds for the purchase of properties. Ms. Menill stated staff would be taking a percentage from the investment pool to purchase those assets from the RDA. The investment policy would have to be changed end the City/Agency attorney was Ionking at the issue. Member Rindone stated he was concerned with the legality of the investment fund concept and requested that staff return with more information. He questioned if the Agency could adopt a plan to try to se~ if the first three properties were marketable. Mr. Goss stated the Agency had been presented with a concept on how to work toward balancing the RDA budget and address the deficit. Staff could see if they could get the listed values on the threo properties. Member Rindone felt the Agency should review the plan bi-annually for the fist year and then yearly after that. Mr. Goss stated that as the plan was being implemented it would have to be brought back to Council for approval end there would be an opportunity to review the progress of the program. Minutes June 21, 1994 Page 4 Member Fox expressed his concern regarding the need for a Community Development Specialist 11 and requested that a review of the department be done several months al~er the hiring of the Administrative Secretary with an evaluation of how the staffing was working out. MSC (Rindone/Horton) to adopt Resolution 1390 and continue Resolution 1411 to the meeting of 7/12/94 and dire~t staff to provide a I~gal r~view of the proposed hiv~,'lment fund and analysis of the in'st three properties regarding curcent market value and how dose the assesinherits wife. Approved 4-0-1 with Nader absent RESOLUTION 1390 OF'Wla/ED BY MEMBER RINDONE, reading of the text was waived, passed and approved 4-0-1 with Nader absent. 6. RESOLUTION 1411 ADOPTING THE REDEVELOPMENT AGENCY BUDGET FOR FY 1994-95 AND AFFROPRIATING FUNDS THEREFOR-- ITEM/6 IS A REGULAR MEETING ITEM- The FY 1994-95 Redevelopanent Agency Budget was reviewed as part of the City budget approval process. As the Redevelopment Agency is a separate legal entity, it is necessary to approve the budget separately as required by California Community Redevelopmerit Law. Staff vw. ommends approval of the resolution. (Administration) Resolution 1411 discussed with Item #5. Continued to the 7/12/94 meeting. rrEMS PULLED FROM THE CONSENT CALENDAR Items pulled: none. The minutes will reflect the published agenda order. OTttER BUSINESS 7. DIRECTOR'S REPORTt'S) - None 8. CHAIRMAN'S REPORT(S} - None 9. MEMBERS' COMMENTS - None ADJOURNMENT AT 11:06 P.M. to the Regular Redevelopment Agency Meeting on July 19, 1994 at 6:00 p.m., immediately following the City Council meeting, in the City Council Chambers. Respectfully submitted, BEVERLY A. AUTHELET, CMC, City Clerk by: Vicki C. Soderquist, Deputc~y~y Clerk