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Home My WebLink Aboutcc min 1992/06/30 RDA MINLFFES OF A SPECIAL JOINT IVlF~TING OF THE CITY COUNCIL/RF~EVE~OPMENT AGENCY OF THE CITY OF CHULA VISTA Tuesday, June 30, 1992 Council Chambers 10:54 p.m. Public Services Building CALL TO ORDER PRESENT: Councilmembers/Members Grasser Horton, Malcolm, Moore, Rindone, and Mayor/Chairman Nader ALSO PRESENT: John D. Goss, City Manager/Director; Bruce M. Boogaard, City/Agency Attorney; and Beverly A. Authelet, City Clerk 2. APPROVAL OF MINUTES: None CONSENT CALENDAR (Items pulled: no. ne) CONSENT CAI.ENDAR OFFERF2) BY COUNCILMAN/MEMBF~ MALCOLM, reading of the text was waived, passed and approved unanimously. 3. ~I'I-I'EN COMMUNICATIONS: None 4.A. COUNCIL RESOLUTION 16666 APPROVINGTHEFIRSTAMENDMENTTOSITELEASEANDFIRST AMENDMENT TO MEMORANDUM OF LEASE WITH HOMART DEVELOPMENT COMPANY FOR THE LEASE OF CERTAIN REAL PROPERTY LOCATED AT THE CHULA VISTA CENTER - On 2/25/92, Council and Agency approved an agreement with Homart for the second expansion of the Chula Vista Center which includes a 600 space parking garage. The configuration of the garage requires an adjustment in the leased parcel previously used to secure City financing for the first expansion. The Council and Agency are requested to approve an Agreement amending the Site Lease, Lease Agreement, and Operating Lease, and related documents to accommodate the proposed parking structure. Staff recommends approval of the resolutions. B. AGENCY RESOLUTION 1259 APPROVING THE FIRST AMENDMENT TO SITE LEASEAND FIRST AMENDMF2qT TO MEMORANDUM OF LEASE WITH HOMART DEVELOPMEN'r COMPANY FOR THE LEASE OF CERTAIN REAL PROPERTY LOCATED AT THE CHULA VISTA CENTER C. COUNCIL RESOLUTION 16688 APPROVING THE FIRST AMENDMENT TO LEASE AGREEMENT AND FIRST AMENDMENT TO MEMORANDUM OF LEASE WITH THE HOMART DEVELOPMENT COMPANY FOR THE LEASE OF CERTAIN REAL PROPERTY LOCATED AT THE CHULA VISTA CENTER D. AGENCY RESOLUTION 1260 APPROVING THE FIRST AMENDMENT TO LEASE AGREEMENT AND FIRST AMENDMENT TO MEMORANDUM OF LEASE WITH THE HOMART DEVELOP~ COMPANY FOR THE LEASE OF CERTAIN REAL PROPERTY LOCATED AT THE ~ VISTA CENTER MinUtes June 30, 1992 Page 2 E. COUNCIL RESOLUTION 16689 APPROVING TI-tE FIRKI' AMENDMENT TO OPERATING LEASE AND FIRST AMENDIVlENT TO MEMORANDUM OF LEASE WITH THE HOMART DEVELOPMENT COMPANY FOR THE LF. ASE OF CERTAIN REAL PROPERTY LOCATF~ AT THE CHULA VISTA CENTER F. AGENCY RESOLUTI ON 1261 APPROVING THE FIRST AMEND~ TO OPERATING LF~SE AND FIRST AMENDMENT TO MEMORANDUM OF LEASE WITH THE HOMART DEVELOPMENT COMPANY FOR THE LEASE OF CERTAIN RF2~ PROPERTY LOCATED AT THE CHULA VISTA CENTER 5. AGENCY RESOLUTION 1262 APPROVING A REIMB~ AGI~RMFAVr WITH SCRIPPS MEMORIAL HOSPITALS, A CALIFORNIA NON-PROFIT, PUBLIC BENEFIT CORPORATION, AND NICKELODEON THEATERS, INC., A CALIFORNIA CORPORATION, MYLES REGAN, AN INDIVIDUAL, JOHN RI J .ISON, AN INDIVIDUAL, ~AI.I .RN GROSSBERG, AN INDIVIDUAL, AND JERRY WILLITS, AN INDIVIDUAL, FOR THE LEASING OF PROPERTY AT THE CHULA VISTA CENTER - On 11/17/91, the Agency approved a Disposition and Development Agreement with Scripps Memorial Hospitals for the expansion of hospital facilities at the northeast corner of "H" Street and Fifth Avenue. The action necessitated the relocation of the businesses located on the site including the Fiesta Twin Cinemas. The Agency is requested to approve an Agreement effectuating a Lease Guarantee with Homart Development Company for which Scripps and the Agency will guarantee one year's lease payments each out of the first five years of occupancy by the new theater [Nickelodeon Theaters, Inc.) which includes the owner of Fiesta Twin Cinemas. Staff recommends approval of the resolution. City/Agency A~torney Boogaard stated that at the time the agenda went to the printer he had not had the ?pportunity to review the item and he now wanted to inform the Council/Agency of some of the risks in the confidential attorney/client communication. Despite the existence of such risks he would still endorse going forward with the proposed guarantee and reimbursement agreement. Mayor/Chairman Nader questioned whether the item should be heard in Closed Session due to the confidential nature. City/Agency Attorney Boogaard responded that he did not see a basis for going into Closed Session and he could answer questions as it did not need to be protected by an attorney/client privilege. Mayor/Chairman Nader felt there would be creative ways outside of the agreement to recoup some of the things he was concerned with, but if the City/Agency Attorney did not see a need for further discussion he was agreeable to moving forward. Councilman/Member Moore questioned whether the City/AgencyAttorney was recommending a modification to the agreement. City/Agency Attorney Boogaard responded that Homar~ had stated they would not budge any further on the points and therefore modification would not be successful. Chris Salomone, Director of Community Development, stated that when the Agency did the relocation agreements the issue was specifically discussed in Closed Session regarding the risk on the lease guarantee. City/Agency A~torney Boogaard stated Homart's risk was any default occurring longer than two years and damages suffered as a result. Minutes June 30, 1992 Page 3 6. AGENCY RESOLUTION 1263 ADOPTING NEGATIVE DECLARATION ISSUED UNDER. IS-92~)3, AND APPROVING AN OWNER. PARTICIPATION AGI~F. FA~mxrr WITH JOHN SCOFF FOR THE DEVELOPMENT OF INDUSTRIAL BUILDINGS AT 1879 TO 1881 NIRVANA AVENIJE WITHIN THE OTAY VAI.I.Ik'~ ROAD REDEVELOPMENT PROJECT AREA - Recently Mr. Scott acquired a 97,000 square foot lot located at 1879- 1881 Nirvana Avenue, just north of Gold Coast Engineering. At this time, Mr. Scott desires to develop two industrial buildings totalling 30,363 square feet. The proposed project has been reviewed by the Project Area Committee and the Design Review Committee. Staff recommends approval of the resolution. 7. COUNCIL RESOLIYrlON 16709 ACCEPTING AN EASEMENT D~n FOR RIGHT-OF-WAY IMPROVEMENTS AT 4705 OTAY VAI.I .RY ROAD AND AUTHORIZING PAYMENT TO THE REDEVELOPMENT AGENCY OF THE CITY OF CI-1ULAVISTA - Council is requested to accept an Easement Deed for acquisition of right-of-way easement for the widening of Otay Valley Road from Jimmie and Judi Shinohara (4705 Otay Valley Road). The Agency currently has the entire Shinohara property in escrow for development of Phase I of the proposed Chula Vista Auto Park. By agreement with Mr. Shinohara, the Agency may receive payment for the easements. In the event that the purchase of the remainder of the Shinohara property is not completed, these funds will be reimbursed to Mr. Shinohara. Staff recommends approval of the resolution. * * END OF CONSENT CALENDAR * * PUBLIC HEARINGS AND I~I~I.&TED RESOLUTIONS AND ORDINANCES None scheduled. ORAL COMMUNICATIONS None ACTION ITEMS None submitted. ITEMS pUIJ.KD FROM THE CONSENT CALENDAR Items pulled: none. The minutes will reflect the published agenda order. OTHER BUSINESS 8. CITY MANAGER'S/DIRECTOR'S REPORT(S) Chris Salomone, Director of Community Development, stated there was a potential of having a worksession to discuss the Bayfront on Thursday at 4:00 p.m. if the Agency wished to do that. A special meeting would have to be called and tonight's meeting would have to be adjourned to the special meeting. If that was not possible it would be scheduled later in July. Mindtes June 30, 1992 Page 4 City/Agency Attorney Boogaard stated that the ordinance for Kaiser had been placed on first reading and the second reading would start the thirty day trigger on getting the $1.2 million under that agreement. Unless a special meeting was held the second reading would not be until July 21st. If a special meeting could be scheduled it would advance the receipt of the money under the agreement. Mayor/Chairman Nader stated he would consult with staff as to whether a special meeting was necessary during the recess. As of this time there was no meeting scheduled for Thursday. 9. MAYOR'S/CHAIRMAN'S REPORT(S} - None 10. COUNCII,/MEMB~ COMME/WI~ - None ADJOURNMENT The Redevelopment Agency met in a closed session at 11:02 p.m. to discuss: Acquisition of property pursuant to Government Code Section 54956.8 - 4705 Otay Valley Road (Jimmie & Judi Shinohara, owners) t~DJOURNMENT AT 11:35 P.M. to a Special Meeting on Monday, July 2, 1992 at 4:00 p.m. in the City ~ouncil Conference Room. Respectfully submitted, BEVERLY A. AUTHELET, GMC, City Clerk by: ' k Vicki C. Soderquist, DeRh~y City Clerk