Loading...
HomeMy WebLinkAboutcc min 1976/07/30 MINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF CHULA VISTA, CALIFORNIA Held Friday July 30, 1976 A special meeting of the City Council was called for the above date beginning at 1:00 p.m~ in the Council Conference Room, City Hall, 276 Fourth Avenue, with the following Councilmen present: Councilmen Hyde, Cox, [lobel. Mayor Hamilton arrived late. Councilmen absent: Councilman Egdahl Staff present: City Manager Cole, City Attorney Lindberg, Director of Community Development Desrochers In the absence of the Mayor, Mayor Pro Tempore Hyde opened the meeting at 1:20 p.m. PURPOSE OF MEETING City Manager Cole explained that a morator- ium was placed on the Town Centre Redevelop- ment Project Area in order to complete the preparation of the redevelopment plan for that area. Excluded from the moratorium was the property located in the 300 block south side of Center Street which was in the process of being developed, In the vet7 recent past, a company has come forward with a plan which is extensive and would involve some of the properties under the moratorium and this particular property that was excluded from the moratorium. This plan will be discussed at the Redevelopment Agency meeting of August 5, 1976 and there- fore, the staff is requesting that the mora- torium be placed on this particular property. Richard Zogob Mr. Zogob said he was just notified of this Owner of property meeting. He stated that he has spent a great excluded from deal of time on the proposed development of moratorium his project (Park West Apartments) for the 300 block, south side of Center Street. Plans are such that he is now ready to let out the grading contract and perhaps obtain his building permit on Wednesday. Mr. Zogob commented that time is essential in his project since he has until August 7 to go to San Diego Federal, San Diego, to get the commit- ment for building this project. Mr. Zogob indicated he has cooperated fully with the City and now feels "misguided." To have a moratorium now placed upon his property may cause him to lose the financing for his project. Price of property Mr. Zogob further stated that tile price of the property, as discussed with the Community Development Director, is "way off the mark" and he may have to go into a suit with the City to justify, in equity, what appears to the individual and not to the major project. The price is ba~ed on location - and it is not $3.00 a foot for this location. Director of Community Development Desrochers declared that he has never made any reference to the price per square foot - the City must have appraisals for this. Special Meeting -2- July 30, 1976 Key element to plan In answer to Mayor Pro Tempore Hyde's question, Mr. Desrochers stated that Mr. Zogob's property is a key piece of the proposed plan and if Mr. Zogob proceeds with his development, it would kill the plan being submitted for the area. Mr. Desrochers added that there are approxi- mately 18 acres in this area (between Third and Fourth Avenue, Parkway and "F" Street) and the proposed developer is seeking 15 to 18 acres. Time element Mayor Pro Tempore Hyde asked if Mr. Zogob could obtain an extension on his financing. Mr. Zogob remarked that he would try. Mr. Desrochers remarked that it would take approximately 120 days to get a firm commitment from the proposed developer. In that period of time, the developer would tie down his major commitments and costs. Profit value Mr. Zogob explained that in this 1-1/2 million dollar project, he would stand to make a profit of $250,000 to $300,000 which profit would be lost with this redevelopment plan. The only way he would be able to recover this cost would be to triple his ground lease whereby he and his clients can recover these monies over a period of time. City Attorney's opinion Mr. Lindberg noted that the City could have chosen to let this matter go until the Rede- velopment Agency meeting on August 5 when the Agency will be considering the agreement with Griffith & Company (proposed developers). The staff, howevers felt it would be better to dis- cuss this matter as soon as possible - both in the interest of the City and Mr. Zogob's. The staff fully realizes the problems associated with this -- what is the best way to go to protect Mr. Zogob's interests and, at the same time, leave the door open to entertain proposal from Griffith Company which could be the key element in the redevelopment of the Town Centre Negotiation Agreement Mr. Desrochers noted that a negotiation agree- ment has been drawn encompassing the entire 18 acre area and Griffith has indicated they will sign the agreement prior to the Redevelopment Agency meeting of August 5, 1976. (Mayor Hamilton arrived at this time - 2:00 p.m. and was briefed by Mayor Pro Tempore Hyde). Motion to continue It was moved by Councilman Hyde and seconded by Councilman Hobel that this matter be continued until Thursday evening, August 5, 1976, and that a Council meeting be sched- uled for that time following the Redevelopment Agency meeting. Discussion of motion City Attorney Lindberg, in answer to the Council's queries~ recommended that the resolution be offered imposing the moratorium until the fifth of August (the date of the next meeting). Motion withdrawn Councilman Hyde withdrew his motion; Councilman Hobel withdrew the second. Special Meeting -3- July 50, 1976 RESOLUTION NO. 8268 - Offered by Councilman Hyde for a limited AMENDING RESOLUTION NO~ 8115 moratorium through August 5, 1976, the reading IMPOSING A LIMITED MORATORIUM of the text was waived by unanimous consent of UPON THE ISSUANCE OF BUILDING those present, passed and adopted by the PERMITS }~{ITH A PORTION OF following vote, to-wit: THE CITY OF CHULA VISTA AYES: Councilmen Hyde, Cox, Hamilton, Hobel Noes: None Absent: Councilman Egdahl Conflict of Interest Mayor Hamilton stated that, on the ruling of the Attorney, he has no possible conflict of interest in this case. ADJOURNMENT Mayor Mamilton adjourned the meeting at 2:12 pom. to the meeting to be called after the Redevelopment Agency meeting of August 5, 1976.