HomeMy WebLinkAbout2006/08/22 RDA Agenda Packet
Stephen C. Padilla, Mayor/Chair
Patricia E. Chavez, Council/Agency Member Jim 111omson, Interim City Manager/Executive Director
John McCann, Council/Agency Member Ann Moore, City Attorney/Agency COlll1sel
Jerry R. Rindone, Council/Agency Member Susan Bigelow, City Clerk
Steve Castaneda, Council/Agency Member
August 22, 2006
6:00 P.M.
(Immediately following the City Council Meeting)
Council Chambers
City Hall
276 Fourth Avenue
CALL TO ORDER
ROLL CALL: Council! Agency Members Castaneda, Chavez, McCann, Rindone, and
Mayor/Chair Padilla
CONSENT CALENDAR
(Items 1 through 3)
The Council/Agency will enact the Consent Calendar staff recommendations by one
motion, without discussion, unless a Council/Agency Member, a member of the public, or
City staff requests that an item be removed for discussion. If you wish to speak on one of
these items, please fill out a "Request to Speak" form (available in the lobby) and submit
it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be
discussed immediately following the Consent Calendar.
1. APPROVAL OF MINUTES of the Joint Meeting of the City Council, Redevelopment
Agency and Housing Authority of June 20, 2006; Joint Meeting of the Chula Vista
Redevelopment Corporation, Redevelopment Agency and City Council of June 22, 2006;
Special Meeting of the Redevelopment Agency of July 11, 2006; and Joint Meeting of
the City Council, Redevelopment Agency and Public Financing Authority of July 18,
2006.
Staff recommendation: Council/Agency approve the minutes.
2. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA APPROPRIATING $25,000 TO THE SERVICES AND SUPPLIES
CATEGORY OF THE LOW/MOD HOUSING FUND TO COVER THE COSTS
ASSOCIATED WITH PLACING AN ARTICLE 34 MEASURE ON THE NOVEMBER
7,2006 STATEWIDE GENERAL ELECTION BALLOT (4/5THS VOTE REQUIRED)
On August 8, 2006, the City Council directed staff to place a ballot measure on the
November 7, 2006 statewide general election to address the provision of low-income
rental housing under Article 34 of the State of California Constitution. Appropriations to
cover the costs associated with placing this measure on the ballot are necessary at this
time. (Acting Community Development Director)
Staff recommendation: Agency adopt the resolution.
3. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA APPROVING (A) A PREDEVELOPMENT LOAN AGREEMENT BY AND
BETWEEN THE REDEVELOPMENT AGENCY AND WAKELAND HOUSING AND
DEVELOPMENT CORPORATION FOR THE DEVELOPMENT AND OPERATION
OF AN AFFORDABLE RENTAL HOUSING DEVELOPMENT TO BE LOCATED AT
1501 BROADWAY IN THE CITY OF CHULA VISTA AND AUTHORIZING THE
CHAIRMAN OF THE REDEVELOPMENT AGENCY TO EXECUTE SAID
AGREEMENT; AND (B) APPROPRIATION OF $200,000 FROM THE
UNAPPROPRIATED BALANCE IN THE LOW AND MODERATE INCOME
HOUSING FUND FOR THE PREDEVELOPMENT LOAN TO WAKELAND
HOUSING AND DEVELOPMENT CORPORATION (4/5THS VOTE REQUIRED)
On August 10, 2006, the CVRC approved an exclusive negotiating agreement and
recommended financial Assistance for a predevelopment loan to examine feasibility of an
affordable rental housing development within the Merged Redevelopment Area at 1501
Broadway. A predevelopment loan up to $200,000 is recommended at this time. (Acting
Community Development Director)
Staff recommendation: Agency adopt the resolution.
ITEMS REMOVED FROM THE CONSENT CALENDAR
PUBLIC COMMENTS
Persons speaking during Public Comments may address the Agency on any
subject matter within the Agency's jurisdiction that is not listed as an item on the
agenda. State law generally prohibits the Agency from taking action on any issue
not included on the agenda, but, if appropriate, the Agency may schedule the
topic for future discussion or refer the matter to staff. Comments are limited to
three minutes.
OTHER BUSINESS
4. CITY MANAGERlDIRECTOR'S REPORTS
5. MA YORlCHAIR'S REPORTS
6. COUNCIL! AGENCY MEMBERS' COMMENTS
ADJOURNMENT of the City Council to the Regular Meeting of September 19, 2006, at 6:00
p.m. in the Council Chambers; and the Redevelopment Agency to the Regular Meeting of
September 19,2006, at 6:00 p.m., in the Council Chambers.
In compliance with the
AMERICANS WITH DISABILITIES ACT
The City of Chula Vista requests individuals who require special accommodations to access, attend,
and/or participate in a City meeting, activity, or service request such accommodation at least forty-eight
hours in advance for meetings and jive days for scheduled services and activities. Please contact the City
Clerkfor specific information at (619) 691-5041 or Telecommunications Devices for the Deaf (TDD) at
(619) 585-5655. California Relay Service is also availablefor the hearing impaired.
Page 2 - Council/RDA Agenda
http://www.chulavistaca.gov
August 22, 2006
DRAFT
MINUTES OF ADJOURNED REGULAR MEETINGS OF
THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY AND
A SPECIAL MEETING OF THE HOUSING AUTHORITY
OF THE CITY OF CHULA VISTA
June 20, 2006
6:00 P.M.
Adjourned Regular Meetings of the City Council and the Redevelopment Agency and a Special
Meeting of the Housing Authority of the City of Chula Vista were called to order at 8 :05 p.m. in
the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California.
ROLL CALL
PRESENT: Agency/ Authority/Councilmembers Castaneda, Chavez, McCann,
Rindone, and Mayor/Chair Padilla
ABSENT: Agency/ Authority/Councilmembers: None
ALSO PRESENT: Executive Director/Interim City Manager Thomson,
Agency/Authority/City Attorney Moore, Senior Deputy City Clerk
Peoples
CONSENT CALENDAR
(Items 1 and 2)
Agency/ Authority/Councilmember Castaneda stated that he would abstain from voting on Item
1, as he owns property within 500 feet of the Property-Based Business Improvement District.
1. COUNCIL RESOLUTION NO. 2006-194 AND REDEVELOPMENT AGENCY
RESOLUTION NO. 2006-1940, JOINT RESOLUTION OF THE CITY COUNCIL
AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
AUTHORIZING THE CITY MANAGER/EXECUTIVE DIRECTOR TO SIGN THE
ASSESSMENT BALLOT ON BEHALF OF THE CITY OF CHULA VISTA AND THE
REDEVELOPMENT AGENCY TO RENEW THE PROPERTY-BASED BUSINESS
IMPROVEMENT DISTRICT FOR DOWNTOWN CHULA VISTA FOR A PERIOD
OF TEN YEARS
On March 7,2006, the City acted to support the renewal of the Property-Based Business
Improvement District and to sign the petition for all City and Agency-owned parcels
within the district. Adoption of the resolution allows the City Manager to vote in favor of
the renewal on the City/Agency's behalf. (Community Development Director/Assistant
City Manager Smith)
Staff recommendation: Council! Agency adopt the resolution.
2. COUNCIL RESOLUTION NO. 2006-195 AND REDEVELOPMENT AGENCY
RESOLUTION NO. 2006-1941, JOINT RESOLUTION OF THE CITY COUNCIL
AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
APPROVING A REQUEST BY GLEN GOOGINS FOR THE WAIVER OF
POTENTIAL CONFLICT OF INTEREST WITH RESPECT TO MR. GOOGINS'
PROSPECTIVE REPRESENT A TION REGARDING THE CARLIN F AMIL Y TRUST
,/ ;'j..
,/ I""
DRAFT
CONSENT CALENDAR (Continued)
Former Senior Assistant City Attorney Glen R. Googins has requested that the City
Attorney confirm that his prospective representation of the Carlin Family Trust does not
present a conflict of interest that must be waived pursuant to California Rules of
Professional Conduct 3-310(D). It does not appear at this time that the interests of Mr.
Googins' prospective client are adverse to the City. Accordingly, it is recommended that
the City Council waive any potential conflict arising from Mr. Googins' involvement in
the matter. (City Attorney)
Staff recommendation: Council! Agency adopt the resolution.
ACTION:
Mayor/Chair Padilla moved to approve staff s recommendations and offered the
Consent Calendar, headings read, texts waived. The motion carried 5-0, except
on Item 1, which carried 4-0-1, with Agency/Authority/Councilmember
Castaneda abstaining as he owns property within 500 feet of the Property-Based
Business Improvement District.
ITEMS REMOVED FROM THE CONSENT CALENDAR
There were none.
PUBLIC COMMENTS
There were none.
PUBLIC HEARINGS
3. CONSIDERATION OF ADOPTION OF THE OPERATING AND CAPITAL
IMPROVEMENT BUDGETS FOR THE CITY, AND THE OPERATING BUDGETS
FOR THE REDEVELOPMENT AGENCY AND THE HOUSING AUTHORITY FOR
FISCAL YEAR 2007
The Council has received and considered the City Manager's proposed operating and
capital improvement budgets for the City and the operating budgets for the
Redevelopment Agency and Housing Authority for the fiscal year ending June 30, 2007.
A work session was held on June 8, 2006 to consider and deliberate on the
recommendations contained in the proposed budgets. The budgets submitted at this time
for formal adoption represent the City Manager's initial proposed budgets for fiscal year
2007, amended to reflect various budget items that address issues identified at the budget
workshop and other miscellaneous clean up changes. (Budget and Analysis Director)
Notice of the hearing was given in accordance with legal requirements, and the hearing was held
on the date and at the time specified in the notice.
Mayor Padilla opened the public hearing
Page 2 - Council/RDAlHA Minutes
June 20, 2006
PUBLIC HEARINGS (Continued)
DRAFT
Director of Budget and Analysis Van Eenoo presented the proposed budget update and final
budget adjustments that included: staffing adjustments, general fund changes, other fund
adjustments, all funds expenditures, all funds revenues, and general fund reserves. Also included
were other issues such as cell phone and travel analyses, geographical distribution of capital
improvement projects, and fiscal policies (equipment replacement, fraud hotline, and reward
program).
Mayor/Chair Padilla requested and received confirmation that the total number of full-time
equivalent positions in the proposed budget update were essential positions that reflect public
safety and a Metropolitan Transit System position, that the proposed position reclassification to
Senior Assistant City Attorney would have no net fiscal impact on the City Attorney's budget,
and that the additional appropriation of $100,000 for the City Attorney's Department dealt with
litigation and ongoing court-related litigation matters. Director Van Eenoo responded
affirmatively. Mayor/Chair Padilla also requested confirmation that the General Fund reserve, if
taken collectively, was in excess of the eight percent policy. Director Van Eenoo, replied
affirmatively, adding that if combined, the restricted and un-restricted reserves were above eight
percent.
Council/Agency/Authority member McCann asked about the City's long-term strategy of
ensuring that the City does not fall below its reserves. Director Van Eenoo replied that following
the Finance Department's five-year projections, it would look at the City's existing expenditure
commitments and compare those to conservative revenue projections. Council!
Agency/Authority member McCann asked how long it would take to implement a cell phone
policy. Finance Director Kachadoorian replied that staff would return to the Council in
approximately three weeks. Council! Agency/Authority member McCann stated he was in favor
of deleting the Principal Legislative Analyst position in the proposed budget adjustments and
also spoke in favor of deleting the Principal Management Assistant/Council Liaison position.
Council! Agency/Authority member Castaneda spoke regarding a memorandum he submitted to
the Council on a number of policy decisions. Regarding Community Choice Aggregation, he
requested that staff bring back a report as soon as possible. With reference to department line-
item budgets, he asked what happened to unused funds. Director Van Eenoo replied that
departments could move funding from different line items in their budgets to keep in line with
their budget-to-actual totals. Council/Agency/Authority member Castaneda felt that there should
be a policy that departments would need to follow to move funds between their budget line
items. He asked what quality controls existed on budgets for departments. Director
Kachadoorian replied that departments could only move up to $15,000 between categories
without Council approval. Interim City Manager Thomson clarified that any unspent funds for
departments went into the General Fund reserves. Council! Agency/Authority member Castaneda
suggested consideration of refining department budgets in order to help supplement the fund for
the capital improvement project for street maintenance and repair. Director Kachadoorian
expressed concern about restricting departments to the line item level, because she had seen, as a
former auditor, departments start charging accounts that have money versus the actual line item
accounts. Regarding street maintenance and repairs, she asked Council/Agency/Authority
Page 3 - CounciVRDAlHA Minutes
June 20, 2006
DRAFT
PUBLIC HEARINGS (Continued)
member Castaneda if it would be his proposal that anything above the eight percent policy be set
aside for street maintenance. Council/Agency/Authority member Castaneda replied that there
needed to be a policy discussion with the Council on how to speud discretionary money for street
repairs. He expressed the need to do more in terms of infrastructure. Interim City Manager
Thomson pointed out that staff is currently conducting a pavement management study with
results anticipated for October 2006, which would be a good time to address the issue.
Additionally, a major infrastructure issue is proposed for the November ballot that could provide
potential funding for cities. He suggested that further discussions on this matter could be
facilitated within the OctoberlNovember timeframe.
Council! Agency/Authority member Rindone commended the Office of Budget and Analysis and
Finance staff on an excellent and comprehensive budget document. He requested that staff
provide a report on the reserves of each of the 18 cities in the County within 60 days after
adoption of the budgets, and that the item be placed on a future agenda for discussion. He
complimented staff on a thorough report regarding a prior referral on the road condition on E
Street, stating that this referral was copasetic with the need for increased maintenance and repair
in the City. He then reported that he would abstain from voting on Items 3A and 3E because of
the proximity of his residence to the projects. He referred to a memorandum submitted by
Council! Agency/Housing Authority member Castaneda regarding constituent services and policy
review analysis enhancement, stating that he could not support Councilmember Castaneda's
recommendation to augment the Council budget by $15,000 for each Council Office, and he
believed that there was no necessity to provide fringe benefits for those particular positions. He
felt that all the other services in the Mayor's office meet the needs of Council and, when looking
at keeping a close eye on the City's reserves, he was hopeful that the Council would support his
position.
Council! Agency/Authority member Castaneda stated that he would abstain from voting on Item
3F. He then responded to Council/Agency/Authority member Rindone's comments relative to
Council staffing, explaining that the $57,000 reflected a number that has been available to
Council Offices for some time. He felt that it was important to have a full-time staff person to
provide responsive constituent services, expertise, and understanding of City/government
operations, and that while there was a need to be cognizant of taxpayers' money being spent, he
would expect any staff person working in his office to be top notch and to provide a high level of
service to the constituents. He believed that staff should be appropriately compensated for the
job they do.
Regarding the recommendation to add a Principal Management Assistant/Council Liaison
position, Council/Agency/Authority member Chavez suggested that the matter come back with
further details on the needs and benefits of such a position. She concurred with the
recommendation by Council! Agency/Housing Authority member Castaneda regarding Council
Aides, stating that if the City is not currently in a position to approve the recommendation, then
the matter should be brought back with a detailed analysis.
Page 4 - Council/RDAlHA Minutes
June 20, 2006
PUBLIC HEARING (Continued)
Council/Agency/Authority member McCann stated that the Council's most important
responsibility is fiscal and fiduciary. He spoke of the need to create a budget committee to stay
ahead of the game and the need to have a clear plan to find savings, avoid cutting services, re-
capitalize City reserves, and to meet Council priorities and City services. He stated that the
budget reserves are specifically itemized for replacement costs, that the City needs to look
further to ensure that it is looking at the spending plan and revenues, and not taking away from
planned maintenance in order to continuously re-capitalize the reserves. He felt that the Council
policy of eight percent should be targeted at potentially 10 % or higher for the reserves to deal
with shortfalls in revenues. He expressed the need to prioritize a policy for cell phone usage and
to seek ways to save funds and maintain a high level of production and efficiency for the
residents. He pointed out the idea of implementing a fraud line and working on policies for staff
travel, staff vehicle mileage reimbursement, debt, ethics, and cash management. He felt that
ultimately, implementing a plan now would avoid long-term pains in the future.
DRAFT
ChairlMayor Padilla made the following suggestions: 1) To incorporate a staff referral as part of
the budget adoption to bring back a resolution establishing a Council subcommittee to meet on
an ad-hoc basis through the next 120 days to the balance on the calendar year, with the Mayor
and Deputy Mayor as members; 2) A time frame for staff to come back in conjunction with the
City Manager's Office and the Director of Finance on the matter of potentially establishing an
auditing division in the Finance Department; 3) That the Council subcommittee take a cursory
look, working with the City Manager, Finance Director, and Budget Director, at a citywide
departmental review of the five-year fiscal projections, staffing, allocation and prioritization of
resources; 4) Policy issues that need to be vetted that look at the fiscal aspect of the pavement
management program, and an analysis on baseline or capital improvement budgeting that looks
at rehabilitation and repair on an ongoing basis that would not be heavily dependent on grant
funding or one-time revenues; and 5) The need for an examination of the Council staff budget
policy, blocking budgeting for each Councilmember and making them accountable for their
individual budgets, and bringing the information back to Council no later than the end of
November 2006. He then spoke in support of freezing or deleting the proposed Principal
Management Assistant/Council Liaison; deleting the Development Specialist in Community
Development; and in support of the Public Safety recommendations and enhancements as being
essential services.
Council/Agency/Authority member McCann stated that he would abstain from voting on Items
3B and 3E, as he owns property that falls within the proximity of the project areas.
It was the consensus of the Council to revise the proposed budget to remove the Principal
Management Assistant/Council Liaison position to come back at a future date for discussion.
Council/ Agency/Authority member Rindone stated that although he supports Item 3D, he did not
want to create a misperception, and clarified that adding $1.0 million from the Technology
Replacement Fund and $2.4 million from the Equipment Replacement Fund would not be
increasing the reserves by $3.4 million, but that it was only a different accounting method.
ChairlMayor Padilla clarified that there has been criticism in the press that the City is not doing
well financially and suggesting that the City is behind other communities because of that. He
stated that the reality is that the City's reserves are about 9.9 percent in total. He believed that
the Council wanted to have a commitment to a healthy, fully funded reserve that keeps the City
at or above its basic minimum as a way to assure the citizens that the Council is acting in a
responsible way. Council! Agency/Authority member McCann responded to the comment by
Council/Agency/Authority member Rindone that he had not made any statements that created
new money, and he clarified the restricted versus un-restricted reserves.
Page 5 - CouncillRDAlHA Minutes
June 20, 2006
PUBLIC HEARING (Continued)
DRAFT
Council/Agency/Authority member Rindone asked staff to bring back for discussion by the
Council the proposed salary for the Chu1a Vista Redevelopment Corporation CEO/Executive
Director.
ACTION:
Council! Agency/Authority member McCann moved to establish a Council budget
subcommittee consisting of the Mayor and Deputy Mayor. Mayor/Chair Padilla
seconded the motion, and it carried 5-0.
ACTION:
Council! Agency/Authority member McCann offered Resolution No 2006-196,
heading read, text waived:
A. RESOLUTION NO. 2006-196, RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE
CAPITAL IMPROVEMENT BUDGET FOR PROJECT STL309 FOR
FISCAL YEAR 2007, AND APPROPRIATING FUNDS FOR THE
FISCAL YEAR ENDING JUNE 30, 2007
The motion carried 4-0-1, with Council! Agency/Authority member Rindone
abstaining due to the proximity of his residence to the project.
ACTION:
Council!Agency/Authority member Rindone offered Resolution No 2006-197,
heading read, text waived:
B. RESOLUTION NO. 2006-197, RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE
CAPITAL IMPROVEMENT BUDGET FOR PROJECT SW235 FOR
FISCAL YEAR 2007, AND APPROPRIATING FUNDS FOR THE
FISCAL YEAR ENDING JUNE 30, 2007
The motion carried 4-0-1, with Council! Agency/Authority member McCann
abstaining due to the proximity of his residence to the project.
ACTION:
Council/Agency/Authority member Chavez offered Resolution No. 2006-198,
heading read, text waived:
C. RESOLUTION NO. 2006-198, RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE
OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR THE
CITY OF CHULA VISTA EXCLUDING CAPITAL PROJECTS STL309
AND SW235 FOR FISCAL YEAR 2007, AND APPROPRIATING
FUNDS FOR THE FISCAL YEAR ENDING JUNE 30, 2007
The motion carried 5-0.
Page 6 - Council/RDAlHA Minutes
June 20, 2006
DRAFT
PUBLIC HEARING (Continued)
ACTION:
Mayor/Chair Padilla offered Council Resolution No. 2006-199, Redevelopment
Agency Resolution Nos. 1942, 1943, 1944, and Housing Authority Resolution
Nos. 029,030,031 for adoption and the ordinance for first reading, as amended to
remove the Principal Management Assistant/Council Liaison position, headings
read, texts waived:
D. RESOLUTION NO. 2006-199, RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE
TRANSFER OF $1.0 MILLION FROM THE TECHNOLOGY
REPLACEMENT FUND AND $2.4 MILLION FROM THE
EQUIPMENT REPLACEMENT FUND TO THE GENERAL FUND
E. REDEVELOPMENT AGENCY RESOLUTION NO. 2006-1942, AND
HOUSING AUTHORITY NO. 2006-029, JOINT RESOLUTION OF
THE REDEVELOPMENT AGENCY AND THE HOUSING
AUTHORITY OF THE CITY OF CHULA VISTA ADOPTING THE
OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR THE
SOUTHWEST/TOWNE CENTER II/OTAY V ALLEY/ADDED AREA
PROJECT AREA FOR FISCAL YEAR 2007, AND APPROPRIATING
FUNDS FOR THE FISCAL YEAR ENDING JUNE 30, 2007
F. REDEVELOPMENT AGENCY RESOLUTION NO. 2006-1943, AND
HOUSING AUTHORITY NO. 2006-030, JOINT RESOLUTION OF
THE REDEVEL09PMENT AGENCY AND THE HOUSING
AUTHORITY OF THE CITY OF CHULA VISTA ADOPTING THE
OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR THE
REDEVELOPMENT AGENCY FOR TOWNE CENTER I AND THE
BA YFRONT PROJECT AREAS FOR FISCAL YEAR 2007, AND
APPROPRIATING FUNDS FOR THE FISCAL YEAR ENDING JUNE
30,2007
G. REDEVELOPMENT AGENCY RESOLUTION NO. 2006-1944, AND
HOUSING AUTHORITY NO. 2006-031, JOINT RESOLUTION OF
THE REDEVELOPMENT AGENCY AND THE HOUSING
AUTHORITY OF THE CITY OF CHULA VISTA ADOPTING THE
OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR THE
HOUSING AUTHORITY FOR FISCAL YEAR 2007, AND
APPROPRIATING FUNDS FOR THE FISCAL YEAR ENDING JUNE
30,2007
H. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA
VISTA MUNICIPAL CODE SECTION 2.05.010 RELATING TO THE
ESTABLISHMENT OF UNCLASSIFIED POSITIONS TO ADD THE
POSITIONS OF EXECUTIVE DIRECTOR OF THE
REDEVELOPMENT AGENCY/CEO OF THE CVRC, CBAG
EXECUTIVE DIRECTOR, DEVELOPMENT PLANNING
IMPROVEMENT MANAGER, AND PRINCIPAL 1L\N}>.GEMENT
ASSIST .ANT/COUNCIL LL^>.ISON
Page 7 - Counci1/RDAlHA Minutes
June 20, 2006
PUBLIC HEARING (Continued)
DRAFT
The motion carried 5-0, except on Item 3E, which carried 3-0-2, with
Council/ Agency/Authority members Rindone and McCann abstaining, due to the
proximity of their residences to the project area, and on Item 3F, which carried 4-
0-1, with Council/Agency/Authority member Castaneda abstaining due to the
proximity of his residence to the Towne Center 1 and Bayfront project areas.
OTHER BUSINESS
4. CITY MANAGERlDlRECTOR'S REPORTS
There were none.
5. MAYOR/CHAIR'S REPORTS
There were none.
6. COUNCIL! AGENCY MEMBER'S COMMENTS
There were none.
ADJOURNMENT
At 12:25 p.m., Chair/Mayor Padilla adjourned the meeting to the Adjourned Regular Meeting on
June 22, 2006 at 6:00 p.m., and thence to the Regular Meeting of July 18, 2006 at 6:00 p.m. in
the Council Chambers.
,.
Lorraine Bennett, Deputy City Clerk
Page 8 - Council/RDAlHA Minutes
June 20, 2006
MINUTES OF A REGULAR :MEETING OF THE
CHULA VISTA REDEVELOP:MENT CORPORATION (CVRC)
:MEETING JOINTL Y WITH THE REDEVELOP:MENT AGENCY
AND CITY COUNCIL OF THE CITY OF CHULA VISTA
June 22, 2006
6:00 P.M.
A Regular Meeting of the Chula Vista Redevelopment Corporation of the City of Chula Vista
meeting jointly with the Redevelopment Agency and the City Council of the City of Chula Vista,
was called to order at 6: 11 p.m. in the Council Chambers, located in City Hall, 276 Fourth
Avenue, Chula Vista, California.
CVRC ROLL CALL
Board Members Castaneda, Chavez, Desrochers, Lewis, McCann, Paul, Rindone, Rooney
and Chairman Padilla
CITY COUNCIL/REDEVELOPMENT AGENCY ROLL CALL
Council! Agency Members Castaneda, Chavez, McCann, Rindone, and Mayor/Chair Padilla
ALSO PRESENT: Interim Chief Executive Officer Thomson, Chief Financial Officer
Kachadorrian, General Counsel Moore, Secretary Smith, Assistant
Community Development Director Hix, Redevelopment Manager
Crockett
PLEDGE OF ALLEGIANCE, MOMENT OF SILENCE
CONSENT CALENDAR
(Item 1)
1. APPROVAL OF MINUTES - May 25, 2006
Staff Recommendation: That the CVRC approve the minutes of May 25, 2006.
ACTION:
Director Rindone offered Consent Calendar Item 1. Director Rooney seconded
the motion, and it carried 9-0.
PUBLIC COM:MENTS
Norma Runyon made inquiry regarding plans of the Redevelopment Agency for the present
location of the Brentwood Mobilehome Park on Industrial Boulevard. Chair/Mayor Padilla
requested staff respond to Ms. Runyon.
ACTION ITEMS
Director Castaneda stated that although he is not directly effected by the subject matter, the areas
where the revenues would be spent are near his horne, and upon the advice of General Council
recused himself and left the Council Chambers at 6: 17 p.m.
1'/
,. ~-,.....'
ACTION ITEMS (continued)
2. CONSIDERATION OF ISSUANCE AND SALE BY THE REDEVELOPMENT
AGENCY OF TAX ALLOCATION REFUNDING BONDS, IN TWO OR MORE
SERIES, IN THE AGGREGA TE PRINCIPAL AMOUNT OF NOT TO EXCEED $28.5
MILLION IN CONNECTION WITH THE BA YFRONT/TOWN CENTRE I
REDEVELOPMENT PROJECT
The Chula Vista Redevelopment Corporation is a recommending body to the Chula Vista
Redevelopment Agency on financial matters involving redevelopment funds. The
refunding of the 1994 Senior Tax Allocation Refunding Bonds, Series A and D, and the
1994 Subordinate Tax Allocation Refunding Bonds, Series C, based on current
projections, would provide an annual debt service savings to the Redevelopment Agency
of $500,000, or a total savings of $4.8 million over the remaining 20 years of the bonds
(20% of the par amount of the bonds).
Chief Financial Officer Kachadoorian provided the staff report.
Staff Recommendation: The CVRC adopt the following resolutions (2. a.) and (2. b.)
ACTION:
Director Desrochers offered Resolution Nos. 2006-026 and 2006-027, headings
read, texts waived.
a. RESOLUTION NO. 2006-026, RESOLUTION OF THE CHULA VISTA
REDEVELOPMENT CORPORATION RECOMMENDING THE
ISSUANCE BY THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA OF TAX ALLOCATION REFUNDING BONDS, IN
TWO OR MORE SERIES, IN THE AGGREGATE PRINCIPAL
AMOUNT OF NOT TO EXCEED $28,500,000 (BA YFRONT/TOWN
CENTRE)
b. RESOLUTION NO. 2006-027, RESOLUTION OF THE CHULA VISTA
REDEVELOPMENT CORPORATION RECOMMENDING THAT THE
CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA WAIVE THE CONSULTANT SELECTION
PROCESS AND APPROVE A FIRST AMENDMENT TO THE
AGREEMENT WITH EJ. DE LA ROSA & CO. AS UNDERWRITERS
FOR THE REFUNDING OF THE CITY OF CHULA VISTA
REDEVELOPMENT AGENCY 1994 SUBORDINATE TAX
ALLOCATION REFUNDING BONDS, SERIES C AND 1994 SENIOR
TAX ALLOCATION REFUNDING BONDS, SERIES D; WAIVE THE
CONSULTANT SELECTION PROCESS AND APPROVE THE
SECOND AMENDMENT TO THE AGREEMENT WITH HARRELL &
COMPANY ADVISORS, LLC TO SERVE AS FINANCIAL
ADVISORS
Vice Chairman McCann seconded the motion, and it carried 7-0-1 with Director
Castaneda abstaining and Director Chavez away from the dais.
The City Council adopt resolution (2.c)
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ACTION ITEMS (continued)
ACTION:
Mayor/Chairman Padilla otf~red;.B.~~b1tion No. 2006-200, RDA Resolution No.
2006-1945, and Joint Resolution No. 2006-201/RDA Resolution No. 1946,
headings read, texts waived:
c. RESOLUTION NO. 2006-200, RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE
ISSUANCE BY THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA OF TAX ALLOCATION REFUNDING BONDS, IN
TWO OR MORE SERIES, IN THE AGGREGATE PRINCIP AL
AMOUNT OF NOT TO EXCEED $28,500,000 (BAYFRONT/TOWN
CENTRE)
The Redevelopment Agency adopt resolution (2.d)
d. RDA RESOLUTION NO. 2006-1945, RESOLUTION OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
AUTHORIZING THE ISSUANCE AND SALE OF TAX ALLOCATION
REFUNDING BONDS, IN TWO OR MORE SERIES, IN THE
AGGREGATE PRINCIP AL AMOUNT OF NOT TO EXCEED
$28,500,000 IN CONNECTION WITH THE BAYFRONT/TOWN
CENTRE REDEVELOPMENT PROJECT, AND APPROVING
RELATED DOCUMENTS AND ACTIONS
The City Council and Redevelopment Agency adopt resolution (2.e)
e. COUNCIL RESOLUTION NO. 2006-201, AND RDA RESOLUTION
NO. 2006-1946, JOINT RESOLUTION OF THE CITY COUNCIL AND
THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
WAIVING THE CONSUL T ANT SELECTION PROCESS AND
APPROVING A FIRST AMENDMENT TO THE AGREEMENT WITH
E.J. DE LA ROSA & CO. AS UNDERWRITERS FOR THE
REFUNDING OF THE CITY OF CHULA VISTA REDEVELOPMENT
AGENCY 1994 SUBORDINATE TAX ALLOCATION REFUNDING
BONDS, SERIES C AND 1994 SENIOR TAX ALLOCATION
REFUNDING BONDS, SERIES D; WAIVING THE CONSULT ANT
SELECTION PROCESS AND APPROVING THE SECOND
AMENDMENT TO THE AGREEMENT WITH HARRELL &
COMPANY ADVISORS, LLC TO SERVE AS FINANCIAL
ADVISORS; AND AUTHORIZING THE MAYOR TO EXECUTE THE
AMENDMENTS TO THE AGREEMENTS
The motion carried 4-0-1 with CounciV Agency member Castaneda abstaining.
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ACTION ITEMS (continued)
At 6:22 p.m. Director/Agency/Councilmember Castaneda returned to the Council Chambers.
Chairman Padilla stated that staff had requested Item 3 be continued to the next meeting.
ACTION:
Vice-Chairman McCann moved continuance of Item 3 to the next meeting of the
CVRC on July 13, 2006. Director/Agency member Castaneda seconded the
motion, and it carried 9-0.
3. CONSIDERATION OF EXCLUSIVE NEGOTIATING AGREEMENT AND
FINANCIAL ASSISTANCE FOR AN AFFORDABLE RENTAL HOUSING
DEVELOPMENT WITHIN THE MERGED REDEVELOPMENT AREA
Wakeland Housing and Development Corporation is interested in developing an
affordable, family rental project on the former Tower Lodge Motel site located at 1151
Broadway. Currently vacant, the former Tower Lodge Motel represents an opportunity to
remove an existing blighted property and the provision of new housing opportunities for
predominately very low-income households. In order to determine the feasibility of this
project, staff is proposing financial assistance in the form of a predevelopment loan. The
Agency is requested to consider a Predevelopment Loan Agreement for $200,000.
Staff Recommendation: The CVRC adopt the following resolutions (3.a.) and (3.b.):
a. RESOLUTION OF THE CHULA VISTA REDEVELOPMENT
CORPORATION APPROVING AN EXCLUSIVE NEGOTIATING
AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND
WAKELAND HOUSING AND DEVELOPMENT CORPORATION
REGARDING THE POTENTIAL DEVELOPMENT OF A REAL
ESTATE PROJECT LOCATED AT 1501 BROADWAY IN THE CITY
OF CHULA VISTA
b. RESOLUTION OF THE CHULA VISTA REDEVELOPMENT
CORPORATION RECOMMENDING [A] APPROVAL OF A
PREDEVELOPMENT LOAN AGREEMENT BY AND BETWEEN THE
REDEVELOPMENT AGENCY AND WAKELAND HOUSING AND
DEVELOPMENT CORPORATION FOR THE DEVELOPMENT OF AN
AFFORDABLE RENTAL HOUSING DEVELOPMENT TO BE
LOCATED AT 1501 BROADWAY IN THE CITY OF CHULA VISTA
AND AUTHORIZING THE CHAIRMAN OF THE REDEVELOPMENT
AGENCY TO EXECUTE SAID AGREEMENT; AND [B]
APPROPRIATION OF $200,000 FROM THE UNAPPROPRIATED
BALANCE IN THE LOW AND MODERATE INCOME HOUSING
FUND FOR SAID PREDEVELOPMENT LOAN TO WAKELAND
HOUSING AND DEVELOPMENT CORPORATION
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ACTION ITEMS (continued)
The Redevelopment Agency adopt rc,~olr:t1iQll) (3.(:.):
c. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY
OF CHULA VISTA APPROVING [A] A PREDEVELOPMENT LOAN
AGREEMENT BY AND BETWEEN THE REDEVELOPMENT
AGENCY AND WAKELAND HOUSING AND DEVELOPMENT
CORPORATION FOR THE DEVELOPMENT AND OPERATION OF
AN AFFORDABLE RENTAL HOUSING DEVELOPMENT TO BE
LOCATED AT 1501 BROADWAY IN THE CITY OF CHULA VISTA
AND AUTHORIZING THE CHAIRMAN OF THE REDEVELOPMENT
AGENCY TO EXECUTE SAID AGREEMENT; AND [B]
APPROPRIATION OF $200,000 FROM THE UNAPPROPRIATED
BALANCE IN THE LOW AND MODERATE INCOME HOUSING
FUND FOR THE PREDEVELOPMENT LOAN TO WAKELAND
HOUSING AND DEVELOPMENT CORPORATION
Chairman Padilla inquired as to whether Items 4 and 5 could be consolidated for discussion.
Assistant Community Development Director Hix responded in the affirmative, and the Board
concurred to consolidate the items.
4. CONSIDERATION OF THE PROCEDURAL FRAMEWORK FOR THE CHULA
VISTA REDEVELOPMENT CORPORATION PROJECT/APPLICATION REVIEW
PROCESS
Second phase of a three-part discussion to propose a framework of step-by-step
procedures for the Chula Vista Redevelopment Corporation's review and consideration of
development projects and applications, including when the CVRC and public should be
involved in the process. Phase I - Review of the Roles and Responsibilities of the CVRC
was discussed March 9,2006.
Staff Recommendation: That the CVRC adopt the following resolution:
RESOLUTION NO. 2006-028, RESOLUTION OF THE CHULA VISTA
REDEVELOPMENT CORPORATION APPROVING A PROCEDURAL
FRAMEWORK FOR CVRC REVIEW AND CONSIDERATION OF
DEVELOPMENT PROJECTS AND APPLICATIONS
5. CONSIDERATION OF CVRC PUBLIC PARTICIPATION PROCESS
Final phase of a three-part discussion to adopt a public participation process for the
CVRC.
Staff Recommendation: That the CVRC adopt one of the following resolutions (5.a.) or
(5.b.):
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ACTION ITEMS (continued)
a. RESOLUTION NO. 2006-029, RESOLUTION OF THE CHULA VISTA
REDEVELOPMENT CORPORATION ADOPTING A PUBLIC
PARTICIPATION POLICY ESTABLISHING A COMMUNITY-WIDE
REDEVELOPMENT ADVISORY COMMITTEE TO GATHER PUBLIC
INPUT AND MAKE RECOMMENDATIONS TO THE CHULA VISTA
REDEVELOPMENT CORPORATION ON DEVELOPMENT
PROJECTS AND APPLICATIONS
-or-
b. RESOLUTION OF THE CHULA VISTA REDEVELOPMENT
CORPORATION ADOPTING A PUBLIC PARTICIPATION POLICY
ESTABLISHING THE CHULA VISTA REDEVELOPMENT
CORPORATION AS THE PUBLIC PARTICIPATION VEHICLE TO
GATHER PUBLIC INPUT ON DEVELOPMENT PROJECTS AND
APPLICATIONS
Assistant Community Development Director Hix provided an overview of the staff report noting
that on March 9th, the Board heard the staff report on the roles and responsibilities of the CVRC.
The presentation on Items 4 and 5 will continue to build on the prior discussion, and staff will be
presenting the last two segments on how the CVRC will operate. The discussion on Item 4 will
cover the procedural framework for CVRC project review, including several concepts, such as
the early involvement by the Board in project design and review, as well as when public review
should occur in the design process. The discussion on Item 5 will cover the public participation
process and how public participation will occur.
Redevelopment Manager Crockett provided the staff report on Item 4, the proposed procedural
framework for project review as outlined in the process flowchart, and responded to questions of
the Board. Mr. Crockett clarified what an application consisted of, the limiting of upfront
investment for developers prior to public input being received, the role of the Urban Core
Specific Plan in the process, how environmental issues will be handled including California
Environmental Quality Act (CEQA) review, and how the CVRC has taken the role and
responsibility of the Resource Conservation Commission.
Assistant Community Development Director Hix provided an overview of the staff report on
Item 5, noting that the City Council and Redevelopment Agency adopted 3 principles of public
participation in May of 2005, being: early and often; open, inclusive, and accessible; and
educational and informative. The reports being discussed, were released early allowing for input
to be received from additional groups such as the Exclusive Negotiation Agreement (ENA)
developers, members of the community including Crossroads II, and the Northwest Civic
Association, as well as individuals and staff.
Several stakeholder letters, proposals, and meeting notes were received and copies had been
provided to the Board. The proposals being reviewed evolved from the original report and were
updated to include input received over the last several weeks.
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ACTION ITEMS (continued)
The alternatives for the public process ar:~to:tI,~~.t9-~,CVRC as it exists, or the formation of a
Redevelopment Agency Advisory Committee' 'orRAC. The public participation framework,
regardless of the alternative selected, that needs to be implemented includes early public input
and participation on project design, holding meetings in the affected community area whenever
appropriate and possible, and effective public noticing through e-mail, advertising, web site
usage, and streaming video. Advantages and disadvantages of each alternative were then
discussed.
In discussing these concepts with developers, they were clear that they wanted a public process
that was clear, inclusive and constructive, they wanted community input as they wanted the
community to support their projects, they were willing to work with the public to address their
concerns, and they wanted certainty that the process would move them forward in a predictable
way without endless loops of input and redesign. Additionally, they felt that members of a RAC
should have some level of expertise, or a strong interest and ability to understand design and
development concepts. Community group representatives provided different perspectives and
interests, as did staff and others who participated in the discussion. Some of the things staff
heard was the need to have existing community organizations represented on the RAC, while
others felt that geographically based representation was needed; the community organizations
should be resident based in Chula Vista and geographically focused on Chula Vista; the RAC
should elect their own Chair and Vice- Chair; the CYRC should allocate positions, but not
appoint people; people should be appointed by their groups to fill the seats designated on the
RAC; a majority or 2/3 of the RAC should be able to remove a member for inappropriate
behavior or cause as would the CYRC/CC/RDA; design professionals from City commissions
should meet certain technical qualifications, but this would not be a requirement of the
community or business members; consist of a off number of 9-15 with potentially alternates who
could discuss but not vote, and lastly, the RAC should include an equal number of design
professionals, business representatives and community groups.
Common themes were then presented that included: individuals should represent a group that has
an interest in redevelopment; the RAC should be split between technical, community, and
business organizations, RAC members should be qualified in some way, the process should be
clear and predictable, community organizations should be resident based and/or geographically
focused on Chula Vista, and the RAC should consist of an odd number of members ranging from
9 to 15.
Staff then provided the areas that require direction from the CYRC which were: the categories
(technical, community, business), number of representatives per category, qualification of
members, and the selection/appointment/election process for members.
Staff recommended the categories include technical, business and community organizations, with
3-5 members per category for a total of 9-15 members, and possibly alternates. Potential
desirable qualifications and representatives for each category were then presented, as was a
comparison between geographic areas and existing community organizations.
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ACTION ITEMS (continued)
Consensus was received from the groups spoken to for a bottom-up approach, with the CVRC
selecting the groups that would make up the committee, and the group/organizations
independently electing/appointing their representatives, and the RAC electing its own Chair and
Vice Chair. Regarding the terms of office, staff will come back with a proposal for possibly 2-4
year staggered terms, as well as procedures and ground rules for the removal of a member.
Assistant Community Development Department Director Hix, then summarized staff s
recommendation on Item 4, for the CVRC to adopt the resolution approving the procedural
framework for CVRC review and consideration of development projects and applications; and on
Item 5, for the CVRC to adopt a resolution approving the public participation process that
establishes either the CVRC as the public participation vehicle or a Redevelopment Advisory
Committee. If the Redevelopment Advisory Committee is selected, the Board to provide
direction to staff on the RAC's composition, size and selection process, and direct them to bring
back draft rules and procedures as the earliest possible time for implementation.
Chairman Padilla requested the members note that on the dais, and part of the record, were
written communications from both the Northwest Civic Association to staff and the Board
containing an outline of their recommendations, as well as one from Crossroads II.
The following people then spoke to the items:
Georgette Gomez, representing the Environmental Health Coalition, spoke regarding the need to
ensure that the procedural framework does not override the stakeholder committee process, and
in support of the community workshop for non-ENA project proposals. Mayor Padilla
responded that the project review and public participation processes would not preempt any of
the existing Citizen Advisory Committee (CAC) or other public stakeholder processes underway
that focus on the planning or draft plans underway.
Connie Mihos, homeowner in the Town Center area, stated that the public input appears to be for
design only and expressed concerns with the purpose of the facilities that are going in. She
further stated that she was a member of Northwest Civic Association and supported their
proposal. She then made inquiry as to whether the public input would be allowed for the purpose
or use of the ENA or just the design. Redevelopment Manager Crockett responded that the use is
allowed through the policy document, such as the Urban Core Specific Plan, and this discussion
is a framework for a projects design. Ms. Mihos then inquired as to whether existing uses of
tattoo parlors and a gym were allowable in the new plan. Planning Manager Ladiana responded
that the 24 Hour Fitness was allowable under existing zoning and the draft Urban Core Specific
Plan, and the tattoo parlor was under existing zoning.
Teresa Acerro spoke in support of the Northwest Civic Associations recommendation on the
RAC, and the early public forum. She then requested at least a one-week advance notice be
given and the documents be digitized and placed on the web or e-mailed to interested parties in
advance of the meeting. Chairman Padilla concurred with the exploration of the use of web
technology to provide a wider noticing area.
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ACTION ITEMS (continued)
Glen Googins, Board Member of the Third A vequ~ . Village Association (T A V A), on behalf of
his Board, applauded the CYRC for their efforts to date, to devise a meaningful way for the
community to provide input into the CYRC's project development process. Mr. Googins stated
that T AVA had not taken a formal position or provided a competing proposal, however, they felt
they deserved serious consideration in the community review process, and suggested the
possibility of T A V A serving as the community and design review body for projects within their
jurisdiction. Another possible role T AVA is interested in would be membership within a body
with a larger geographical jurisdiction along the lines of one of staff's proposal.
Director Rindone inquired and Mr. Blakely responded that the 13-member T A V A Board was
fairly equally split with 50 percent business owners and 50 percent tenants.
Mr. Pembeaton spoke in support of the Crossroads proposal but expressed concerns for his
perception that there was no room for tweaking of the proposed plan, and that renters did not
appear to be represented nor did service people.
Pamela Bensoussan, representing the Northwest Civic Association Steering Committee
(NWCA), addressed points in the letter submitted by the NWCA (copy on file), several of which
were reflected in the staff report. Additionally, she stressed the importance of having a Resource
Conservation Commission representative, two Design Review Commission members and at least
one Planning Commission member on the RAC; three "business" individuals including one from
T A V A, one from the Main Street Business Association, and one from the Chamber of
Commerce; several residents who are elected by and represent various community groups such
as one member chosen by the Golden State Mobile Home Association to represent mobile home
park residents; two resident members selected by the Northwest Civic Association; two resident
members selected by Crossroads and one member from Crossroads to represent that
organization. Ms. Bensoussan then stated that the NWCA Steering committee had additional
recommendations that developers should first get feedback from the community, via the RAC,
prior to being granted ENA status from the CYRC; the RAC should hold a developers workshop
platform to present their projects to the public early to gather community feedback and then once
their project is well defined, the RAC should conduct a public hearing to make formal advisory
recommendation to the CYRC; the RAC should receive regular notice of all project applications
over 5,000 square feet or $10,000; the T AVA Design Committee should be informed early about
all projects in the Third Avenue Village District, regardless of size, and the RAC should function
much like the other Chula Vista advisory commissions, with City support staff, public noticing
of meeting agendas etc.
Pat Aguilar, representing Crossroads II, spoke to Item 4, the process flow chart, and expressed
the importance holding the first public forum at the pre-design/idea/concept phase for developers
where they would present their massing concept. She then spoke in support of staff's
recommendation on the establishment of an advisory committee and addressed points in the
proposal submitted by her organization (copy on file). The proposal included equal
representation between homeowners and the business community and was comprised of 13
members made up of 4 homeowners (must live in home), 2 from the northwest, 2 from the
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June 22, 2006
ACTION ITEMS (continued)
Southwest; 4 business owners, 1 representing T A V A, 1 representing the Chamber of Commerce,
1 representing the Main Street Business Association and 1 from the Added Redevelopment
Areas; as well as 1 Planning Commissioner, 1 Resource Conservation Commissioner with an
interest in historic preservation, 1 member of the Design Review Committee, 1 member of
Crossroads II and 1 resident of a Chula Vista mobile home park. Further, Ms. Aguilar stated her
organization felt the process should be bottom-up with people being appointed by existing
community organizations, and the meetings should be held in the community. On the subject of
design review, although it is inter-related with public participation, RAC members should not be
required to meet any specific technical requirements, rather a separate design review committee,
independent of the RAC, appointed by the CVRC, should be created to judge whether projects
presented are consistent with design guidelines, to advise the CVRC when it is appropriate to
grant exceptions to the design guidelines, and thirdly, to adjudicate disputes on design
guidelines. Lastly, they supported the recommendation from TA V A in their request to review
anything on Third Avenue between E and G Street should be presented to their Design Review
Board in addition to the RAC.
Tony LoPresti representing the Environmental Health Coalition stated his organization felt a vote
on Item 5 would be premature in that inclusive community prospective is not legitimately
provided for. He noted there are 5 different project areas with very distinct characteristics being
lumped together, and the close to home experience that is an indispensable part of a community
review board is not guaranteed. Additionally, the structure does not bring together residents and
other community players who can focus more specific attention on each redevelopment area.
The RAC proposal, as presented, does not adequately ensure true community representation,
more geographic coverage, as well as an election process, are minimally necessary. To exclude
tenants in Western Chula Vista is not acceptable. Mr. LoPresti requested the CVRC continue the
item until a proposal is brought forth to better represent the actual communities to be impacted
and provide time for community organizations to address other issues. The proposals need to
improve on the specifics of the noticing procedure to provide for who will receive notices, when
they will receive notice and the language they will receive notice in. Also, a description of the
feedback loop needs to be put in place. Lastly, the public participation process to decide the
public participation process needs improvement, as the NWCA, Crossroads II, and the Chamber
of Commerce, are not sufficiently representative of the greater community. In closing, Mr.
LoPresti stated his organization would be submitting a letter within the next week addressing
their concerns, and again, requested a continuation of the item.
Sharon Floyd stated she supported the recommendation to continue this item as presented by Mr.
LoPresti, citing the need for additional time and community input. Additionally, she expressed
her view that although the NWCA proposal was great, but she would prefer to see one
representative from each group, and a broader base.
Tina Zenzola, Executive Director of Walk San Diego, acknowledged staff for their work, and
expressed her confusion in part due to the meeting changes, and her view that additional input
from residents in southwest Chula Vista was needed. Ms. Zenzola then expressed concerns with
noticing, the need for translation of meetings, holding of meetings in the community, the need to
explore different meeting formats - less formal. Additionally, regarding the requirement for
technical RAC membership, she suggested looking at the overlap between public health and land
use and decisions, and suggested consideration of the addition of people who have the overlap of
experience such as knowledge about walk able, livable communities, and would be submitting a
letter summarizing these concerns and suggestions.
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ACTION ITEMS (continued)
John Sherritt, President of Ainslie Comm1+9-it~"es"rsp9ke in support of the formalization of the
public participation process"
David Krogh expressed support of the 3 part structure; keeping the membership small - going
with 3 representatives in each area with alternates; and the self-appointment process, but not as a
life tenure. He then encouraged the CYRC to make the groups work together to decide who
would represent them, and concurred with the need for representation from the Planning
Commission, the Design Review Commission, and the Resource Conservation Commission.
Director Rindone provided an overview of the alternate concept, which insures organizations and
community groups that they will always have representation.
Tanya Rovira-Osterwalder, Project Coordinator for Healthy Eating Active Communities
(HEAC), resident of Chula Vista and former resident of southwest Chula Vista, stated that
translation of the materials and different methods for community outreach are necessary for
successful participation.
Chairman Padilla thanked everyone for their testimony, participation and patience on Items 4 and
5. He then stated although he respected and appreciated the testimony from EHC, HEAC, and
others, he felt it was time to stop talking and move forward, as the dialogue has gone on for
nearly two years and a structure needed to be put in place that serves everyone. He spoke in
support of the establishment of a RAC and the need for the community focus to be the
centerpiece, not the technical side" He expressed support for the proposals put forth by the
NWCA and Crossroads II, with minor modifications. He stated the need for the RAC to be self-
governing, meaning whatever structure the CYRC comes up with, those organizations should
vote and elect their own delegate, and appoint them to the RAC to represent the viewpoints of
these organizations or interests and if they are not doing that, the organization should have the
authority to remove them. Given the fact that the streamlining of the process needs to be
balanced, representatives from the Planning Commission, Resource Conservation Commission
and Design Review Commission should have a place in the RAC, along with the standing, deep-
seated organizations that represent the business community such as T A V A for downtown Third
Avenue and the Chamber of Commerce for city-wide. He proposed a modification for the
southwest, to look to EHC or HEAC to serve in the capacity of representing them, to broaden the
involvement of the organizations, to bring them in and establish representation there. Chairman
Padilla expressed the need to avoid the turf wars, agreed that the early meeting should be an idea
meeting, and regarding the points made regarding cultural and language barriers need to be
looked at and include the use of technology to give people access to information.
Vice Chairman McCann thanked all present for their participation, and spoke in support of the
establishment of a RAC; regarding geographic vs groups he proposed a hybrid; expressed the
need for representation in the southwest; the need to make sure that there is room for at least one
at large member, and the need for alternates.
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ACTION ITEMS (continued)
Director Castaneda stated the Board viewed active partIcIpation as an enhancement to the
process and that it was very important to have meaningful participation from the people affected
most by the developments, those who live in and around the redevelopment areas. He stated that
the RAC should be viewed as an insurance policy by investors and developers, as the submittal
will start with the idea phase and dialogue with the community. Additionally, he stated that
residents needed to be included in the process whether they rented or owned, a mobile home park
resident needs to be included and should be one located in or near a redevelopment area, and
lastly, he concurred with Chairman Padilla, that it was time to move forward.
Director Desrochers concurred with his colleagues' comments and stated that he felt since those
most effected were the residents, and would therefore like to have more residents involved. He
suggested 11 but no more than 13 members be considered, for example, 3 homeowners, 2
residential tenants, 1 T A V A representative, 1 Chamber of Commerce representative, 2 business
property owner representatives and 2 business tenants. Additionally, he stated he supported
alternates, and did not see a need for the technical people on the committee.
Director Chavez spoke regarding noticing and suggested going out into the community with a
teaser to get them interested, such as putting up photo boards of what the vision is, followed up
with discussion. Additionally, she expressed concerns with members of the community being
underrepresented, such as renters and people in need of affordable housing. She stated that there
were organizations in the southwest such as NCI, HEAC, Chula Vista Collaborative and others.
Ms. C~avez then expressed support for Director Desrochers suggestions, as well as the need for
inclusion of a mobile home park representative.
Director Lewis addressed his involvement with the Citizens Action Committee working on the
Bayfront project, and the need for the composition of the RAC to take into consideration the
varying points of view and interest and remove the emotions. The process cannot be
overburdened to the point that a developer will pack up and leave. A concern is the coordination
between the RAC and the CVRC and how it is brought together to move forward in a timely,
economical manner.
Vice Chairman McCann left the Council Chambers at 8: 18 p.m. and did not return.
Director Rooney agreed that it was time to move forward, and the establishment of the public
participation process is a great first step. He expressed the importance to have a diverse group
from the community as well as technical peoples such as representatives from the Planning
Commission, Design Review Commission and Resource Conservation Commission. Regarding
geographic vs. organizations, organizations made more sense to him and he suggested a hybrid
selection system where the civic organizations submit a representative they would like to be
considered and the CVRC would select from that group. He agreed with the RAC approach as it
widens the opportunity for public involvement, the initial meeting should be early on and held as
a preliminary meeting without a lot of presentation materials, and suggested the submittal
requirements be specified to assist developers. Further, Director Rooney concurred with the
need for alternates and the process for feedback with a reporting system that provides a written
understanding of their decision and any recommendations, tenants should be included, a well
defined noticing procedure and feedback loop be established and a reporting process.
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ACTION ITEMS (continued)
Director Rindone stated there appeared to:beCQnsensus on the forming of a RAC, and provided a
brief overview of how the idea of the creation of a CYRC began. He then added that there were
3 very unique, major concepts involved in the forming of the CYRC, starting with having the
Council as part of the process on the front end, as they are elected at large and are responsible to
the entire community; having professionals on board as part of the voting membership; and the
streamlining process. He stated that the technical members and staff provide the technical
expertise needed, as do a lot of the community members; disagreed with the need for individual
members as he felt the community organizations added an additional benefit; and encouraged
renters and mobile home park residents to get involved with one of the current business and
community organizations.
Director Paul spoke in support of the establishment of a RAC and confirmed the ability to revisit
the composition in the future.
ACTION:
Chairman Padilla offered the resolution agendized as 5.a., to adopt a public
participation policy establishing a community-wide redevelopment advisory
committee to gather public input and make recommendations, with additional
direction based on the testimony and discussion tonight. Staff to come back with
a specific structure of recommendations for a RAC with a membership of between
9 and no more than 13 members, and recommendations on a potential alternate
structure either by organization or member-to-member that would consider the
following: the representation from a group and geographic standpoint of all the
keynote business groups to include Chamber, to include T A V A, the key impacted
community groups to include Crossroads, to include Northwest Civic Association,
to include perhaps HEAC and EHe. That the structure staff recommends
specifically provide a blended balance between individuals who are resident
owners and resident tenants, who are tenant business owners and owner operators,
geographic balance, and to include all the aforementioned organizations. That the
structure staff comes back with in the recommendation is self-governing, that
each group appoints its own delegate and have the power to remove that delegate,
and to bring back some specificity. That would be the general guidelines that he
would suggest - staff to bring back the specifics - seats 1 thru 9, 1 thru 13 here is
how they are broken down. His personal recommendation would be that staff
look at the Northwest Civic Association's recommendations. He believes their
recommendation has essentially the same outline. Because he pointed out, as did
Mr. Rindone, that when you are talking about having somebody from
mobilehome parks, somebody from T A V A, somebody from Crossroads,
somebody from Northwest, those people can all be business owners, and/or
tenants, they can be property owners and renters and so within those designations
you can also meet that other balancing criteria so they are not mutually exclusive,
it doesn't mean you have to extend the number of people to 25. So within that
structure, if you look at their outline, it is well thought out. The only modification
he would personally suggest was that, with respect to representation from the
Page 13 - CYRC/RDNCC Minutes
http://www . chulavistaca. gov
June 22, 2006
ACTION ITEMS (continued)
southwest area, which is going to include a lot of expanded redevelopment areas
before there is a civic association for southwest in existence, maybe consider
instead of having Crossroads have their two other reps or one other rep also
represent southwest, that HEAC or EHC be brought in and have them serve in the
interim in that capacity as a nominating authority. He stated that would be his
only other thought, and that staff has been given a general framework here as to
the details that have pretty much been provided based on what has been submitted
in writing and also in all of the testimony. Stating again, a group of between 9
and 13 with alternates, self appointing that blends all these criteria between
background, residency, ownership, as a renter, and whether they have been
represented by all of these organization and of course to include a delegate from
each of the primary City Boards and Commissions - that would be Planning,
RCC, and Design Review. In conclusion, he stated staff should modify
Northwest and would be pretty much 99% there, as long as they balanced the
other considerations.
Director Rindone stated he would also add to that general direction, such things as
there will an annual meeting for the selection whether it's the Planning
Commission, Northwest Civic Association or HEAC every year on a certain date
there would an annual selection of the delegate and alternate. Some the
organizations initial delegate would be for 2 years the others for 4 years so they
are alternating creating an opportunity for new people, but not changing all the
time. Also, through e-mails, dialogue or phone calls, as this is being restructured,
and encourage additional input be looked at during the next meeting.
Chairman Padilla added that he would also direct staff to put together a model
based on the input received here, and as far as the different organizations,
Chamber, T A V A, Crossroads, NW, EHC, HEAC, contact a representative from
each of those groups once staffhas a detailed model, and dialogue with them prior
to bringing it back so that we maximize the potential that we have a broad
consensus from the community coming forward together in agreement on a
proposed process that reflects everybody's pretty consistent testimony, and the
comments from the Board.
Director Rindone seconded the motion.
Chairman Padilla then noted that Director Castaneda had reminded him of the
resolution on Item 4, and Chairman Padilla amended his motion and offered the
Resolution for Item 4, and the Resolution for Item 5.a. headings read, texts
waived. Director Rindone accepted the amended motion.
Director Chavez noted that there was a large list of community organizations and community
members and that staff probably had their addresses and the leaders or presidents addresses,
suggesting that was a start in making sure that they get the information in advance so they can
notify all of their members.
Page 14 - CVRCIRDAlCC Minutes
http://www.chulavistaca. gov
June 22, 2006
ACTION ITEMS (continued)
Director Lewis spoke regarding the proceduraL framework in Item 4, referring to the Northwest
Civic Associations comment regarding the placement of the ENA in the process, and inquired as
to whether that should be addressed at this time or later. Chairman Padilla offered that it would
be addressed in detail when the suggested framework is brought back.
The amended motion carried 8-0-1 with Vice Chairman McCann absent.
Director Rindone requested consensus that the goal was to bring this structure back on the July
13th meeting. Assistant Community Development Department Director Hix expressed concern
with committing to that date and being able to get the draft out to the affected community
groups. If staff is unable to bring it back at the July 13th meeting, it will be brought back the first
meeting in August.
6. CHIEF EXECUTIVE OFFICER'S REPORTS
a. Status of the Recruitment Process for the CYRC Chief Executive Officer
Interim Chief Executive Officer Thomson reported that the executive search firm that was
retained to help with the selection process for the CYRC Chief Executive Officer, is completing
the initial review of the candidates, and at this point it is planned to bring information back to the
Board at the meeting of July 13th, for review of the candidates and their background and to
decide on the process for moving forward.
Redevelopment Manager Crockett made inquiry as to whether the Board wanted staff to start
scheduling the non-ENA projects that are being processed and are located throughout the
redevelopment project area. Consensus of the Board was that unless there was an emergency,
the first order of good faith with the community was to adopt and follow the public participation
process.
7. CHAIRMAN'S REPORTS
There were none.
8. DIRECTORS' COMMENTS
Director Desrochers inquired and Redevelopment Manager Crockett responded that the 24 Hour
Fitness representatives, along with Community Development staff and the Planning Manager,
attended a Joint T A V A design board as well as full board of directors meeting, where they
passed a resolution requesting a re-design of the project. Immediately following that, the parties
attended a Joint meeting of Crossroads II and Northwest Civic Association, where again, they
adopted primarily, the same resolution as adopted by the T A V A board. The applicant has agreed
to do a re-design and is working with those organizations to fetter out the details and it is planned
to come back to the CYRC at the July 13th meeting.
Page 15 - CYRCIRDA/CC Minutes
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June 22, 2006
DIRECTORS' COMMENTS (continued)
Director Desrochers then inquired as to what had happened at the Tuesday night Council meeting
with regards to the CVRC board stipend, which he felt should have been brought up at the
corporation level as the action taken gave the appearance that the Independent Directors were not
part of the group as they were not included in the discussion. Chairman Padilla recognized
General Counsel Moore to explain the legal side, and the terms of flexibility that was built into
the resolution. He added that the action taken by the Council provided for staff to come back at
some future point if the Elected Directors decided to compensate the Independent Directors but
not themselves. General Counsel Moore stated that the resolution is in accordance with the
Bylaws right now, where the City Council has the ability to set the stipends. The stipends on
Tuesday night have been amended to be set at $0 for now, effective in August, providing notice
to everyone, including the CVRC members. There is a flexibility in that there was a direction to
staff to come back with a report to look at making a tiered system, so that there would be
compensation possibly for the CVRC Independent Directors or to eliminate the stipends all
together, so there is definitely time and room in the process for discussion.
ADJOURNMENT
At 9:05 p.m., ChairmanlMayor Padilla, adjourned the Chula Vista Redevelopment Corporation
to its next regularly scheduled meeting on July 13, 2006, at 6:00 p.m., the City Council to its
next regularly scheduled meeting on July 11,2006, at 6:00 p.m., and the Redevelopment Agency
to its next regularly scheduled meeting on July 18, 2006, at 6:00 p.m.
~Uf.~
Dana M. Smith, S cretary
Page 16 - CVRCIRDAJCC Minutes
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June 22, 2006
DRAFT
MINUTES OF A SPECIAL MEETING OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
July 11, 2006
6:00 P.M.
A Special Meeting of the Redevelopment Agency of the City of Chula Vista was called to order
at 8:15 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista,
California.
ROLL CALL:
PRESENT:
Agency Members: Chavez, McCann, Rindone, and Chair
Padilla
ABSENT:
PUBLIC COMMENTS
Agency Members: Castaneda (excused)
There were none.
PUBLIC HEARING
1. CONSIDERATION OF ADOPTION OF A RESOLUTION AUTHORIZING THE
COMMUNITY DEVELOPMENT DIRECTOR TO EXECUTE A PURCHASE
CONTRACT AND RELATED DOCUMENTS FOR SPACE 47 AT ORANGE TREE
MOBILEHOME PARK
The Redevelopment Agency assisted residents with the purchase of the Orange Tree
Mobilehome Park in 1987. Currently, seven spaces remain in Agency ownership. It was
the Agency's intent to sell the spaces to current or incoming tenants when in a position to
purchase. The current resident of Space 47 has submitted an offer to purchase for
$44,000. (Acting Community Development Director)
Notice of the hearing was given in accordance with legal requirements, and the hearing was held
on the date and at the time specified in the notice.
Chair Padilla opened the public hearing.
Senior Community Development Specialist Kurz gave a brief explanation of the proposed
purchase contract.
There being no members of the public who wished to speak, Chair Padilla closed the public
hearing.
ACTION:
Agency Member McCann offered Agency Resolution No. 206-1947, heading
read, text waived:
RESOLUTION NO. 2006-1947, RESOLUTION OF THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING THE
COMMUNITY DEVELOPMENT DIRECTOR TO EXECUTE A PURCHASE
CONTRACT AND RELATED DOCUMENTS FOR SPACE 47 AT ORANGE
TREE MOBILEHOME PARK
The motion carried 4-0.
Ie-'^'
OTHER BUSINESS
DRAFT
2. DIRECTOR'S REPORTS
There were none.
3. CHAIR'S REPORTS
There were none.
4. AGENCY MEMBER'S COMMENTS
There were none.
ADJOURNMENT
At 8:22 p.m., Chair Padilla adjourned the Special Meeting to an Adjourned Regular Meeting on
July 13,2006 at 6:00 p.m., and thence to the Regular Meeting of July 18, 2006, at 6:00 p.m. in
the Council Chambers.
~w 1~~
Susan Bigelow, MMC, City Clerk
Page 2 - RDA Minutes
July 11, 2006
DRAFT
MINUTES OF ADJOURNED REGULAR MEETINGS OF
THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY AND
A SPECIAL MEETING OF THE PUBLIC FINANCING AUTHORITY
OF THE CITY OF CHULA VISTA
July 18, 2006
6:00 P.M.
Adjourned Regular Meetings of the City Council and the Redevelopment Agency and a Special
Meeting of the Public Financing Authority of the City ofChula Vista were called to order at 6:44
p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California.
ROLL CALL
PRESENT: Agency/ Authority/Councilmembers Castaneda, Chavez, McCann,
Rindone, and Chair/Mayor Padilla
ABSENT: Agency/ Authority/Councilmembers: None
ALSO PRESENT: Interim Executive Director/Interim City Manager Thomson,
General Counsel/City Attorney Moore, Senior Deputy City Clerk
Peoples
CONSENT CALENDAR
(Items 1-2)
I. APPROVAL OF MINUTES of the June 6, 2006 joint meeting of the City Council,
Redevelopment Agency, and the Public Financing Authority.
Staff recommendation: Council/Agency/Authority approve the minutes.
2. COUNCIL RESOLUTION NO. 2006-221, AND REDEVELOPMENT AGENCY
RESOLUTION NO. 2006-1948 JOINT RESOLUTION OF THE CITY COUNCIL AND
THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING
A REQUEST BY LUCE FORWARD HAMILTON AND SCRIPPS, LLP, FOR THE
WAIVER OF POTENTIAL OR ACTUAL CONFLICT OF INTEREST WITH
RESPECT TO LUCE FOR WARD HAMILTON AND SCRIPPS, LLP
REPRESENTATION OF ACI SUNBOW, LLC REGARDING OTAY LANDFILL
AGREEMENT LITIGATION
The law firm of Luce, Forward, Hamilton, and Scripps, LLP has ongoing representation
of the City in various employment-related matters. The firm also represents the
developer, ACI Sunbow, LLC. The law firm has requested a waiver of potential or actual
conflict of interest with respect to its representation of ACI Sunbow, LLC. (City
Attorney)
Staff recommendation: Council/Agency adopt the resolution.
ACTION:
Vice Chair/Deputy Mayor McCann offered the Consent Calendar, headings read,
texts waived. The motion carried 4-0 with Agency/ Authority/Councilmember
Rindone away from the dais.
IlJ
ITEMS REMOVED FROM THE CONSENT CALENDAR
DRAFT
There were none.
PUBLIC COMMENTS
There were none.
PUBLIC HEARINGS
3. CONSIDERATION OF THE LEVY AND COLLECTION OF ASSESSMENTS AND
THE RENEWAL OF THE DOWNTOWN CHULA VISTA PROPERTY-BASED
IMPROVEMENT DISTRICT (PBID) FOR A PERIOD OF TEN YEARS
The Downtown Chula Vista Property-Based Business Improvement District (PBID) was
formed in 2001 to pro actively implement a number of enhancement services and
programs within the downtown core. Administered by the Downtown Business
Association/Third Avenue Village Association, the PBID was established to promote a
cleaner, safer, and more attractive business district, and was inaugurated for a five-year
term beginning in 2001. In order to continue operation, the PBID must be renewed by
July 2006 by a majority of returned property owner ballots weighted by the financial
obligations ofthe assessment to be paid. (Acting Community Development Director)
Notice of the hearing was given in accordance with legal requirements, and the hearing was held
on the date and at the time specified in the notice.
Mayor Padilla opened the public hearing. There being no members of the public who wished to
speak, Mayor Padilla closed the public hearing.
Mayor Padilla asked the City Clerk to open and tabulate the ballots received. Senior Deputy
City Clerk Peoples conducted the tabulation and reported that ballots with assessments totaling
$173,770.23, representing 77.9 percent of the returned ballots, were cast in favor of the
assessment district; and ballots with assessments totaling $49,058.18, representing 22.1 percent,
were cast in opposition to the assessment district.
Agency/Councilmember Rindone inquired and received confirmation from Jack Blakley,
Executive Director of the Downtown Business Association, that the businesses that did not vote
in favor of the assessment would still be required to pay it as part of their property tax and the
County of San Diego would provide the enforcement.
ACTION: Vice Chair/Deputy Mayor McCann offered the following joint resolution, heading
read, text waived:
COUNCIL RESOLUTION NO. 2006-222, AND REDEVELOPMENT
AGENCY RESOLUTION NO. 2006-1949, JOINT RESOLUTION OF
THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF
THE CITY OF CHULA VISTA AUTHORIZING THE LEVY AND
COLLECTION OF ASSESSMENTS, RENEWAL OF THE
DOWNTOWN CHULA VISTA PROPERTY-BASED IMPROVEMENT
DISTRICT (PBID) FOR A PERIOD OF TEN YEARS, AND
APPROVING THE FINAL ENGINEER'S REPORT
The motion carried 4-0 with Agency/Councilmember Castaneda abstaining due to
the proximity of his property to the district.
Page 2 - CC/RDAlPF A Minutes
http://www .chulavistaca.gov
July 18, 2006
DRAFT
PUBLIC HEARINGS (continued)
4. CONSIDERATION OF ADOPTION OF THE REDEVELOPMENT AGENCY FIVE-
YEAR IMPLEMENT A TION PLAN (2005-2009) FOR THE MERGED
BA YFRONT/TOWN CENTRE I REDEVELOPMENT PROJECT AREA (INCLUDING
BA YFRONT AND TOWN CENTRE I), AND THE MERGED Chula Vista
REDEVELOPMENT PROJECT AREA (INCLUDING TOWN CENTRE II,
SOUTHWEST, OTAY VALLEY, AND THE ADDED AREA)
The Five-Year Implementation Plan was prepared in accordance with the statutory
requirements of redevelopment law and is a strategic planning document for the
Redevelopment Agency that outlines key steps to successful redevelopment of western
Chula Vista for the next five years. (Acting Community Development Director)
Notice of the hearing was given in accordance with legal requirements, and the hearing was held
on the date and at the time specified in the notice.
Agency/Councilmember Castaneda stated he would abstain on Item 4A due to the proximity of
his property to the project area. Vice Chair/Deputy Mayor McCann stated he would abstain on
Item 4B due to the proximity of his property to the project area.
Mayor Padilla opened the public hearing. There being no members of the public who wished to
speak, Mayor Padilla closed the public hearing.
ACTION:
Vice Chair/Deputy Mayor McCann offered the following resolution, heading
read, text waived:
A. REDEVELOPMENT AGENCY RESOLUTION NO. 2006-1950,
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY
OF CHULA VISTA ADOPTING A FIVE-YEAR IMPLEMENTATION
PLAN FOR THE MERGED BA YFRONT/TOWN CENTRE I
REDEVELOPMENT PROJECT AREA (INCLUDING BA YFRONT
AND TOWN CENTRE I) FOR THE 2005-2009 PERIOD
The motion carried 3-0-1 with Agency/Councilmember Castaneda abstaining due
to the proximity of his property to the project area and Agency/Councilmember
Rindone away from the dais.
ACTION:
Mayor//Chair Padilla offered the following resolution, heading read, text waived:
B. REDEVELOPMENT AGENCY RESOLUTION NO. 2006-1951,
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY
OF CHULA VISTA ADOPTING A FIVE-YEAR IMPLEMENTATION
PLAN FOR THE MERGED CHULA VISTA REDEVELOPMENT
PROJECT AREA (INCLUDING TOWN CENTRE II, SOUTHWEST,
OTA Y VALLEY, AND ADDED AREA) FOR THE 2005-2009 PERIOD
The motion carried 3-0-1 with Vice Chair/Deputy Mayor McCann abstaining and
Agency/Councilmember Rindone away from the dais.
Page 3 - CC/RDA/PF A Minutes
http://www .chulavistaca. gOY
July 18, 2006
DRAFT
PUBLIC HEARINGS (continued)
5. CONSIDERATION OF THE ADOPTION OF ORDINANCES AMENDING THE
REDEVELOPMENT PLANS FOR THE MERGED BA YFRONT/TOWN CENTRE I
REDEVELOPMENT PROJECT AREA (ONLY PERTAINING TO BAYFRONT
ORIGINAL AND TOWN CENTRE I), AND THE REDEVELOPMENT PLAN FOR
THE MERGED CHULA VISTA REDEVELOPMENT PROJECT AREA (ONLY
PERTAINING TO TOWN CENTRE II ORIGINAL AND OT A Y V ALLEY)
During Fiscal Years 2004/2005 and 2005/2006, the Redevelopment Agency was required
by Senate Bill 1096 (Chapter 211, Statutes of 2004) to make payments to a special state
account - the Educational Revenue Augmentation Fund (ERAF). To compensate
redevelopment agencies for those "ERAF shifts," the State Legislature (through Senate
Bill 1 096) authorized agencies to extend the effectiveness of their redevelopment plans
by up to two years, provided the Agency can make certain findings. The proposed
ordinances contain the necessary findings. (Acting Community Development Director)
Notice of the hearing was given in accordance with legal requirements, and the hearing was held
on the date and at the time specified in the notice.
Agency/Councilmember Castaneda stated he would abstain on Item 5A due to the proximity of
his property to the project area. Vice Chair/Deputy Mayor McCann stated he would abstain on
Item 5B due to the proximity of his property to the project area.
Mayor Padilla opened the public hearing. There being no members of the public who wished to
speak, Mayor Padilla closed the public hearing.
ACTION:
Mayor//Chair Padilla offered the following ordinance for first reading, heading
read, text waived:
A. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING
REDEVELOPMENT PLANS FOR THE MERGED BA YFRONT/TOWN
CENTRE I REDEVELOPMENT PROJECT AREA (ONLY
PERTAINING TO BAYFRONT ORIGINAL AND TOWN CENTRE I),
PURSUANT TO SENATE BILL 1096 (CHAPTER 211, STATUTES OF
2004) AS CODIFIED IN HEALTH AND SAFETY CODE SECTION
33333.6 (FIRST READING)
The motion carried 3-0-1 with Agency/Councilmember Castaneda abstaining due
to the proximity of his property to the project area and Agency/Councilmember
Rindone away from the dais. .
ACTION:
Mayor//Chair Padilla offered the following ordinance for first reading, heading
read, text waived:
Page 4 - CC/RDAJPFA Minutes
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July 18, 2006
DRAFT
PUBLIC HEARINGS (Continued)
B. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING THE
REDEVELOPMENT PLAN FOR THE MERGED CHULA VISTA
REDEVELOPMENT PROJECT AREA (ONLY PERTAINING TO
TOWN CENTRE II ORIGINAL AND OT A Y V ALLEY), PURSUANT
TO SENATE BILL 1096 (CHAPTER 211, STATUTES OF 2004) AS
CODIFIED IN HEALTH AND SAFETY CODE SECTION 33333.6
(FIRST READING
The motion carried 3-0-1 with Vice Chair/Deputy Mayor McCann abstaining due
to the proximity of his property to the project area and Agency/Councilmember
Rindone away from the dais.
OTHER BUSINESS
6. CITY MANAGERlDIRECTOR'S REPORTS
There were none.
7. MAYOR/CHAIR'S REPORTS
There were none.
8. COUNCIL! AGENCY MEMBER'S COMMENTS
There were none.
ADJOURNMENT
At 10:04 p.m., Mayor/Chair Padilla adjourned the City Council to the Regular Meeting of July
25, 2006 at 6:00 p.m. in the Council Chambers, the Redevelopment Agency to the Regular
Meeting of July 25, 2006 at 6:00 p.m. in the Council Chambers, and the Public Financing
Authority until further notice.
~LL-t~~~~~
Lori Anne Peoples, CMC, ~enior Deputy City Clerk
Page 5 - CCIRDAlPFA Minutes
http://www.chulavistaca.gov
July 18, 2006
,1
PAGE I, ITEM NO.: ,-J-,-
MEETING DATE: 8/22/2006
REDEVELOPMENT AGENCY AGENDA STATEMENT
ITEM TITLE: RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA APPROPRIATING $25,000 TO THE SERVICES AND
SUPPLIES CATEGORY OF THE LOW/MOD HOUSING FUND TO
COVER THE COSTS ASSOCIATED WITH PLACING AN ARTICLE 34
MEASURE ON THE NOVEMBER 1, 2006 STATEWIDE GENERAL
ELECTION BALLOT
SUBMITTED BY: ACTING COMMUNITY DEVELOPME T DIRECTOR
REVIEWED BY: INTERIM EXECUTIVE DIRECTOR (/1
4/STHS VOTE: YES ~ NO D
BACKGROUND
On August 8, 2006, the City Council directed staff to place a ballot measure on the
November 7, 2006 statewide general election to address the provision of low income rental
housing under Article 34 of the State of California Constitution. Appropriations to cover the
costs associated with placing this measure on the ballot are necessary at this time.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for compliance
with the California Environmental Quality Act (CEQA) and has determined that the activity is
not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore,
pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to
CEQA. Thus, no environmental review is necessary.
RECOMMENDATION
Staff recommends that the Redevelopment Agency adopt a resolution appropriating
$25,000 to the Services and Supplies category of the Low/Mod Housing Fund from
available fund balance of the Low/Mod Housing Fund to cover the costs associated with
placing this measure on the November 7, 2006 ballot.
2-1
PAGE 2, ITEM NO.:
MEETING DATE:
:0
8/22/2006
BOARDS/COMMISSIONS RECOMMENDATION
On July 26, 2006, the Housing Advisory Committee voted unanimously to support
placing the Article 34 measure on the ballot.
DISCUSSION
Article 34 of the State of California Constitution, adopted in 1950, specifies the
circumstances under which public agencies have the authority for construction,
development, and acquisition. of affordable units for low income renters throughout the City
of Chula Vista. The City is nearing the limit of the 400 units previously.approved under
Article 34 by City of Chula Vista voters on April 11, 1978 and adopted by Ordinance No.
1897. On August 8, 2006, the Chu/a Vista City Council approved the proposed Article 34
ballot measure to be placed on the November 7, 2006 statewide general election ballot.
Appropriations to cover the costs associated with placing this measure on the ballot are
necessary at this time.
FISCAL IMPACT
The cost of putting a measure on the ballot is approximately $25,000, as estimated by
the County of San Diego Registrar of Voters, and would be paid though available fund
balance from Low Moderate Housing Funds. This is an allowable administrative expense
for the Low Moderate Housing Fund necessary for the establishment of future affordable
housing units (Health and Safety Code 33334.3{e)). The November election is a
statewide general election, and therefore the costs for this ballot measure will be less
than if it were considered in a special election.
The approval or denial of this ballot measure has no direct fiscal cost to the City beyond
the cost of the actual election. The measure authorizes the City to participate in
additional affordable housing projects. Approval of funding for individual housing
projects will be considered by the City Council and/or Redevelopment Agency on a case-
by-case basis.
Prepared by: Jose Dorado, Community Development Specialist II, Community Development Department
J:\COMMDEV\STAFF.REP\2006\08-01-06\Article 34\Staff Report Article 34 8-22-06.doc
2-2
RESOLUTION NO. 2006-
RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF CHULA VISTA APPROPRIATING $25,000 TO
THE SERVICES AND SUPPLIES CATEGORY OF THE
LOW/MOD HOUSING FUND TO COVER THE COSTS
ASSOCIATED WITH PLACING AN ARTICLE 34 MEASURE
ON THE NOVEMBER 7, 2006 STATEWIDE GENERAL
ELECTION BALLOT
WHEREAS, pursuant to Article 34 of the California Constitution, a majority of the
qualified electors of the City must approve the potential development, construction, or
acquisition of affordable low income rental housing units if those units are assisted by a state
public body, either financially or by supplying all or part of the labor, or otherwise; and
WHEREAS, on August 8, 2006, at a joint meeting of the City Council and the
Redevelopment Agency of the City of Chula Vista, the Council! Agency directed staff to place an
Article 34 ballot measure on the November 7, 2006 statewide general election; and
WHEREAS, the cost associated with placing this measure on the November 7, 2006
statewide general election ballot is approximately $25;000, which is available from Low
Moderate Housing Funds and is an allowable administrative expense for these Funds; and
WHEREAS, the Environmental Review Coordinator has reviewed the proposed project
for compliance with the California Environmental Quality Act and has determined that the
proposed project was adequately reviewed in the previously certified Final Environmental
Impact Report for the General Plan Update (FEIR 05-01). FEIR 05-01 analyzed the
development of a maximum General Plan residential buildout density within the City and the
maximum number of units that could be developed under the proposed ballot measure would not
exceed the maximum permitted in the General Plan. Therefore, pursuant to California Code of
Regulations Title 14, Chapter 3, Section 15168(c)(2) no further environmental review or
documentation is required.
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of
Chula Vista that it appropriates the $25,000 to the Services and Supplies category of the Low
Moderate Housing Fund from available fund balance to cover the costs associated with placing
the proposed ballot measure on the November 7,2006 statewide general election ballot.
Presented by
Approved as to form by
Ann Hix
Acting Director of Community Development
~~O~~*
Ann Moore
Agency Counsel
2-3
PAGE 1, ITEM NO.:
MEETING DATE:
3
08/22/06
REDEVELOPMENT AGENCY AGENDA STATEMENT
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA [A] APPROVING A PREDEVELOPMENT LOAN
AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY
AND WAKELAND HOUSING AND DEVELOPMENT CORPORATION
FOR THE DEVELOPMENT AND OPERATION OF AN AFFORDABLE
RENTAL HOUSING DEVELOPMENT TO BE LOCATED AT 1501
BROADWAY AND AUTHORIZING THE CHAIRMAN OF THE
REDEVELOPMENT AGENCY TO EXECUTE SAID AGREEMENT; AND [B]
APPROPRIATING $200,000 FROM THE UNAPPROPRIATED BALANCE
IN THE LOW AND MODERATE INCOME HOUSING FUND
SUBMITTED BY: ACTING DIRECTOR OF CO UNITY DEVELOPMENT
ITEM TITLE:
REVIEWED BY:
EXECUTIVE DIRECTOR tJ/
4/5THs VOTE: YES ~ NO D
BACKGROUND
The Community Development Department has been looking at new opportunities for the
development of affordable housing within the City's redevelopment project areas to meet
critical housing needs for the community and to advance the Redevelopment Agency's
goals. Currently vacant, the former Tower Lodge Motel, located at 1501 Broadway,
represents an opportunity to remove an existing blighted property and to provide new
housing opportunities for predominately very low-income households. Wakeland
Housing and Development Corporation (Wakeland) has been pre-qualified by staff for
the redevelopment of this 1.35 acre site into an affordable family rental project with 1, 2
and 3 bedroom units for households earning 30 to 60 percent of the area median
income (AMI).
In order to determine the feasibility of this project, Wakeland must complete a number of
reports, studies and analyses. On August 10, 2006, the CVRC approved an Exclusive
Negotiating Agreement with Wakeland and recommended Financial Assistance for a
Predevelopment Loan for Wakeland to examine feasibility of an Affordable Rental
Housing Development within the Merged Redevelopment Area. A Predevelopment Loan
up to $200,000 is recommended at this time. Staff is, therefore, presenting for
consideration the attached Predevelopment Loan Agreement (Attachment A) for
$200,000 to cover those necessary soft costs related to the feasibility analysis.
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PAGE 2, ITEM NO.:
MEETING DATE: 08/22/06
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for compliance
with the California Environmental Quality Act (CEQA) and has determined that the activity is
not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore,
pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to
CEQA. Thus, no environmental review is necessary.
RECOMMENDATION
Staff recommends that the Redevelopment Agency adopt resolutions:
1) Approving the appropriation of $200,000 to the Other Expenses category of the
Low and Moderate Income Housing Fund from the available fund balance for a
predevelopment loan to Wakeland for the development and operation of an
affordable rental housing project to be located at 1501 Broadway in the City of
Chula Vista; and
2) Approving and executing a Predevelopment Loan Agreement with Wakeland
Housing and Development Corporation and authorizing the Chairman of the
Redevelopment Agency to execute said Agreement.
BOARDS/COMMISSIONS RECOMMENDATION
On May 24, 2006, the Housing Advisory Commission recommended that the
Redevelopment Agency provide financial assistance in the form of a $200,000
predevelopment loan and additional financing in an approximate amount of $5 million
for the development and operation of an affordable housing development.
On August 10, 2006, the Chula Vista Redevelopment Corporation adopted resolutions:
1) Approving and authorizing the Chair to execute an Exclusive Negotiating
Agreement with Wakeland Housing and Development Corporation for an
affordable rental project located within the Merged Redevelopment Project Area
of the City of Chula Vista, and
2) Approving a recommendation that the Redevelopment Agency appropriate up to
$200,000 of Redevelopment Set-Aside Funding for a predevelopment loan to
Wakeland, and execute any agreements necessary.
DISCUSSION
Affordable Housing Requirements in a Redevelopment Area
Redevelopment agencies playa vital role in the funding and production of affordable
housing. Within adopted project areas, redevelopment agencies receive a higher level of
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PAGE 3, ITEM NO.:
MEETING DATE: 08/22/06
property tax revenues that would normally be allocated to the state and other taxing
entities. In exchange, the state requires that 20 percent of all of these "tax increment"
revenues be set aside (Redevelopment Set-Aside) for the development of affordable
housing, and funds are to be expended in proportion to the needs of very low, low and
moderate income households. To ensure that these monies are in fact used for the
production of affordable housing, the state requires that 15 percent of all new residential
units built in an adopted project area be restricted to households of very low- and low-
and moderate incomes. Based upon these requirements, of critical importance is the
provision of housing opportunities specifically for very low-income households.
The Council's/Agency's leadership in proactively planning for affordable housing
opportunities in the redevelopment project areas is critical to meeting the Redevelopment
Agency's legal obligations. The timely production of affordable units is a priority because
of the nearing expiration dates of the various project areas.
Development Proposal
Wakeland is interested in developing approximately 40 units for an affordable, family
rental project on the former Tower Lodge Motel site located at 1501 Broadway within the
Merged Chula Vista Redevelopment Project Area. It is proposed that the project will serve
primarily large families (3 bedroom units) and. predominately extremely low and very
low-income households (30 to 50 percent of the AMI), meeting the City's critical housing
needs and the expenditure and production requirements of the Redevelopment Agency
for very low income housing. Based upon FY 2006 HUD Income limits, monthly rents
would average from approximately $449 to $610.
Site
The property located at 1501 Broadway, just north of Anita Street, currently has a closed
and blighted motel on the site. The motel has a long history of community complaints,
code violations and police calls for service. In 2004, Tower Lodge had the highest calls
for service per room ratio in the City according to the Chula Vista Police Department, six
times the median. Dating back to 1987, the motel has been issued numerous Notices of
Code Violations. On April 29, 2005, the Tower Lodge Motel was posted as a
substandard building, all tenants were ordered to vacate, and the owner secured the
building, which has remained vacant since that time.
The property has a General Plan designation of Mixed Use Residential (MUR) and is
within the South Broadway District. The zoning for the property is Thoroughfare
Commercial with a Precise Plan modifier (CTP) and is currently inconsistent with the
General Plan designation. To implement this designation, a rezone of the property will
be required to allow land uses compatible with the MUR designation (residential, retail
and office). A mix of compatible and complementary land uses are envisioned for the
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PAGE 4, ITEM NO.:
MEETING DATE: 08/22/06
district, with the MUR designation contemplating a mix of land uses within one
development proposal/site. Development of anyone of these land uses separately could
still be in keeping with the General Plan vision and policies for the district. This approach
would constitute a "horizontal mixed use" and may be deemed acceptable in this area.
Through the application for rezoning of the property, the development proposal and the
desire to provide horizontal mixed use in this area would be evaluated for consistency
with the General Plan. A map of the proposed development site is included as
Attachment 2.
Financial Assistance
Financing and development of this project is proposed as a joint private-public
partnership. Wakeland is proposing the use of Low Income Housing Tax Credit financing
to support the majority ($7.1 million) of the estimated $13.8 million cost of constructing
the project.
At this time, staff is recommending the appropriation of a maximum of $200,000 in
Redevelopment Low/Moderate Income Housing Funds to fund the predevelopment costs
of the project. Predevelopment expenses are an eligible use of Redevelopment Set-Aside
funding, provided that the affordable units are actually constructed. The Predevelopment
Loan Agreement is attached as Attachment 1 for consideration by the Agency.
The Predevelopment Loan will be made on the following loan terms:
1. No interest shall accrue upon the loan.
2. The Predevelopment Loan shall be due and payable if Wakeland and the Agency are
not able to enter into a subsequent Development and Loan Agreement within the
Negotiating Period as set forth in the ENA. Should Wakeland execute such
agreement for the development of the site, repayment of the Predevelopment Loan
shall be set forth within this Agreement. The Predevelopment Loan repayment is
unsecured.
3. Loan proceeds shall be used to pay for actual and reasonable costs related to the
preparation of plans, studies, and reports for the project site.
As stipulated within the Agreement, Wakeland will be responsible for repayment of any
and all predevelopment funds expended in relation to the project in the event that the
affordable units are not constructed. If an affordable project is successfully completed,
the Agency may roll the predevelopment loan into any loan that may be provided by the
Agency.
Pending completion of due diligence, Wakeland is estimating a remaining financing gap
of $5.24 million. To close this gap, Wakeland has committed to deferring part of their
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PAGE 5, ITEM NO.:
MEETING DATE: 08/22/06
fee as developer of the project. Additionally, they are anticipating a request for direct
financial assistance of approximately $5,000,000 or $125,000 per unit from the
Redevelopment Agency to close this financing gap. The Redevelopment Agency will
consider this request at such time as a preliminary evaluation of the property and project
has been completed and financing costs have been more clearly identified.
Agency financial support will be essential to the successful completion of an affordable
project on this site. In recent years, land and construction costs have risen dramatically.
As an example, in September 2005, the City approved additional financing for the 40-
unit Seniors on Broadway development due to significant cost increases, amounting to a
total assistance level of approximately $90,000 per unit.
Affordable housing developments are not able to adapt to higher costs. These
developments are limited in their ability to generate income based upon the restricted
rents. In turn, this affects Wakeland's ability to qualify for additional financing and
absorb higher construction costs. With the proposed development targeting deeper
affordability levels of extremely low and very low income households, the project will not
be able to generate sufficient revenues to support the predevelopment and development
costs.
While the subsidy anticipated is high, this development provides the Agency with an
opportunity to commit and expend redevelopment funds on an affordable housing
development that is located in a redevelopment project area and which assists extremely
low and very low income. Both of these factors are noteworthy given the Agency's
requirement to provide 6 percent of the housing within Redevelopment Project Areas as
affordable to very low income households (California Health & Safety Code 9 33413)
and to expend its Redevelopment Low and Moderate Income Set-aside funds in relation
to the community's need for very low income households and the population under the
age of 65 (California Health & Safety Code 9 33334.4).
~rticle }(}()(I"
Article XXXIV of the California Constitution (Article 34) requires that voter approval be
obtained before any "state public body" develops, constructs or acquires a "low rent
housing project". This project is applicable under Article XXXIV of the State Constitution.
Proposition C, passed on April 11, 1978, authorized the development, construction and
acquisition of 400 units of housing for persons of low-income in the City of Chula Vista.
Currently, there are 66 units remaining as authorized under Proposition C. The
restriction of the approximately 40 units will be counted towards this remaining
authorization.
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PAGE 6, ITEM NO.:
MEETING DATE: 08/22/06
Developer Qualification
The CVRC and Agency staff are interested in establishing partnerships with quality
developers who have a proven track record and understand Chula Vista's interests,
history, and vision for the future. Staff has pre-qualified Wakeland based on the
required qualification criteria of the CVRC and the suitability of their qualifications to the
respective development site, as summarized below. For a complete developer biography
and list of projects, please refer to Attachment 3.
Wakeland has significant experience in developing in-fill affordable housing in
redevelopment areas such as a 74-unit project ("Lillian Place") in the East Village and
("Town Square Row Homes") a 6-unit, for-sale project in downtown National City.
Wakeland is well qualified and has demonstrated their desire and commitment to partner
with the City and Chula Vista Redevelopment Corporation, to develop a project that
meets the City's affordable housing objectives and to work cooperatively with the public
in the design of the project.
CONCLUSION
As proposed, the development of affordable housing on the site will meet a critical
housing shortage of rental housing for extremely low and very low income households
and remove a currently blighting influence on the community. The Agency's participation
will fulfill its requirements to expend its funds and produce housing for very low-income
households. If predevelopment financing is approved, staff will begin working with the
development team to commence the predevelopment tasks, including the pre-design
public workshop.
If discussions, negotiations, and tasks under the ENA process are successful, the Agency
and Wakeland may consider entering into a Development Agreement or Owner
Participation Agreement (OPA) for construction of the approved development project.
Under a successful process, the overall timeframe for construction and completion of a
development project is between 18 to 36 months from execution of the Development
Agreement or OPA.
DECISION MAKER CONFLICTS
Staff has reviewed the property holdings of the Agency S'oard Members and has found
no such holdings within 500'of the property which is the subject of this action.
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PAGE 7, ITEM NO.:
MEETING DATE: 08/22/06
FISCAL IMPACT
The Predevelopment Loan of $200,000 will be set aside from the available balance in
Redevelopment Agency's Low and Moderate-Income Housing Set-aside Fund and
appropriated in the Agency's Budget. Upon execution of a Development and Loan
Agreement, the predevelopment loan may be incorporated into this Loan. Should the
Agency not enter into a Development and Loan Agreement with Wakeland, the
predevelopment loan shall be immediately due and repaid. Any repayment of the loan
will be deposited into the Redevelopment Agency's Low and Moderate Income Housing
Set-aside fund for further use in providing affordable housing programs.
ATTACHMENTS
1. Predevelopment Loan Agreement
2. Map of Proposal Site
3. Wakeland Housing and Development Corporation List of Projects
Prepared by: Amanda Mills, Housing Manager, Community Development Department
J:\COMMDEV\STAFF.REP\2006\08-22-06\Wakeland Loan 2006.08.22.doc
3-7
~~~
-.-
";=E"""~3fE
ellY OF
CHULA VISTA
p I ann
n g
&
Building
Planning Division I
Department
Development Processing
APPLICATION APPENDIX B
Disclosure Statement
Pursuant to Council Policy 101-01, prior to any action upon matters that will require discretionary action by the Council,
Planning Commission and all other official bodies of the City, a statement of disclosure of certain ownership or financial
interests, payments, or campaign contributions for a City of Chula Vista election must be filed. The following information
must be disclosed:
1.
List the names of all persons having a financial interest in the property that is the subject of the application or the
contract, e.g., owner, applicant, contractor, subcontractor, material supplier.
Wakeland Housing & Development Corporation is a 501(c)3 Corporation. Therefore,
there are no individuals that have or will have a financial interest in it or
any~of the properties it owns or will own.
Wakeland has one si~red contract with a contr~(tnr nr '1Ihrnntr~rtnr. Wayne Davis
Group (ArcJl,ld'tec.fit~. (1) b' , h' I' h f II' d" 'd I 'h
1 any person I entl leu pursuant to a ove IS a corporatIon or partners 'p, 1St t e names 0 a In IVI ua s Wit
a $2000 investment in the business (corporation/partnership) entity.
NjA - Wakeland
Wayne Davis-owns 100% of Wayne Davis Group
2.
3. If any person* identified pursuant to (1) above is a non-profit organization or trust, list the names of any person
serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust.
Loren Adams, Board Chair Lina Ericsson, Member
uack Farris. Member Craiq Fukuyama, Member
DOlJg Perkins, Sec:retary Art Rivera. Member Lee Winslett, Member
4, Please identify every person, including any agents, employees, consultants, or independent contractors you have
assigned to represent you before the City in this matter.
Ken Sauder. Wakeland Housing & Development Corp. President & CEO
Ri'lrry (;et7e1 _ WAkelAnd HOlJsing & Development Corp. Senior Project Manager
5, Has any person* associated with this contract had any financial dealings with an official** of the City of Chula
Vista as it relates to this contract within the past 12 months, Yes_ No~
If Yes, briefly describe the nature of the financial interest the official** may have in this contract.
6. Have you made a contribution of more than $250 within the past twelve (12) months to a current member of the
Chula Vista City Council? No L Yes _If yes, which Council member?
276 Fourth Avenue
Chula Vista
California
91910
(619) 691-5101
3-8
~v~
-.-
~~- ~~
-
P I ann
ng & Building
Planning Division
Department
Development Processing
cm OF
CHULA VISTA
APPLICATION APPENDIX 8
Disclosure Statement - Page 2
7. Have you provided more than $340 (or an item of equivalent value) to an official** of the City of Chula Vista in the
past twelve (12) months? (This includes being a source of income, money to retire a legal debt, gift, loan, etc.)
Yes No L
If Yes, which official** and what was the nature of item provided?
~A~~ ~ fL
Signature of Contractor/Applicant
Date: June 22. 2006
Kenneth L. Sauder, Prp.sidp.nt
type name of Contractor/Applicant
Print or
*
Person is defined as: any individual, firm, co-partnership, joint venture, association, social club, fraternal
organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other
political subdivision, -or any other group or combination acting as a unit.
**
Official includes, but is not limited to: Mayor, Council member, Planning Commissioner, Member of a board,
commission, or committee of the City, employee, or staff members.
276 Fourth Avenue
Chula Vista
California
91910
(619) 691-5101
3-9
THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPRO V AL BY
THE CITY COUNCIL
~.h~hLV1L (;U~ ~
, 0 Ann Moore .
City Attorney
Dated: ((lb!D{
,
Predevelopment Loan Agreement by and between
The Redevelopment Agency of the City of Chula Vista and
Wakeland Housing and Development Corporation
3-10
Attachment 1
PREDEVELOPMENTLOANAGREEMENT
TIDS PREDEVELOPMENT LOAN AGREEMENT (the "Agreement") is entered
into as of August 10,2006, by and between the. REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA, a public body, corporate and politic (the "Agency"), and
WAKELAND HOUSING AND DEVELOPMENT CORPORATION, a California nonprofit
public benefit corporation ("Developer").
RECITALS
The following recitals are a substantive part of this agreement:
A. Agency is a public body, corporate and politic, exercising govermnental runctions
and powers and organized and existing under the Community Redevelopment Law of. the State
of California (Health and Safety Code Section 33000, et seq.). City is a municipal corporation,
organized and existing under the laws of the State of California. Agency and City are authorized
to enter into binding agreements for th~ purpose of protecting public health, safety, and welfare.
B. Agency has available funds from the Agency's Low and Moderate-Income
Housing Fund which can be used for the purposes of funding the obligations of the Agency
under this Agreement in accordance with the Community Redevelopment Law of the State of
California.
C. Developer proposes to construct multifamily apartment units, affordable to
extremely low and very low families at or below 50 percent of the Area Median Income ("AMI")
(the "Project") on a certain parcel of land identified as 1501 Broadway in the City of Chula Vista
(the "Site").
D. Pursuant to Health and Safety Coae Section 33413(b), the Agency is required to
ensure that at least 15 percent of all new and substantially rehabilitated dwelling units developed
within a project area under the jurisdiction of the Agency by private or public entities or persons
other than the Agency shall be available at affordable housing cost to persons and families oflow
or moderate income.
E. Pursuant to Health and Safety Code Section 33334.4, Agency's expenditure of
Housing Funds must be in proportion to the community's need for very low and low income
housing and housing for its population under the age of 65, as specified within the City's
Housing Element
F. The Project i~ located within the Agency's Merged Chula Vista Redevelopment
Project Area and development and operation of the Project would benefit the Agency's
redevelopment project areas by providing affordable housing for persons who currently live and
work within those redevelopment project areas.
Wakeland Pre development Loan Agreement
Page 1
3-11
G. The Project achieves several of the City's Comprehensive Housing Plan
Objectives, which are expressly noted in the Housing Element as priorities for the City. The
objectives this Project serves are:
(1) Pursue housing opportunities far lower income households, with attention to those
who have special needs, such as extremely low and very low income households.
(2) The provision of adequate rental housing opportunities and assistance to
households with low and very low incomes.
(3) The provision of incentives for the construction of low income housing.
H. The Agency and the Developer have entered into an Exclusive Negotiating
Agreement, dated as of June 22, 2006 (the "ENA"). The ENA provides for the Deve,loper and
tbe Agency to negotiate towards a mutually acceptable Development and Loan Agreement for
the purpose of developing the Project.
1. Through the development and operation of the Project, Agency and Borrower
desire to provide extremely low, very law, lower income households with affordable housing
opportunities within the City in accordance with the Community Redevelopment Law, the
Agency's redevelopment plans, and the Housing Element of the City General Plan. In order to
accomplish this goal, the Agency desires to make a loan from its Low and Moderate Income
Housing Fund to Developer for those costs associated with predevelopment expenses which are
to be incurred during the parties' negotiation of a Development and Loan Agreement for the
Project, subject to certain conditions designed to assure the implementation of the Project in
accordance with the redevelopment plans, the General Plan, state and federal law, and as
otherwise provided herein.
,
J. The Agency's making of the Agency Loan to the Developer is in the vital and
best interest of the City and the health, safety, and welfare of ~ts residents, and in accord with
public purposes and provisions of applicable sate and local laws.
NOW, THEREFORE, the Agency and -the Developer hereby agree as follows;
1. Predevelopment Loan. Subject to Developer's perfonnance of all of the terms,
covenants and conditions which are set forth herein, the Agency hereby agrees to loan to the
Developer, and the Developer agrees to borrow from the Agency, the sum of Two Hundred
Thousand Dollars ($ 200,000) (the "Pre development Loan"). No interest shall accrue upon the
Predevelopment Loan.
2. Disbursement of Predevelopment Loan. The proceeds of the Predevelopment Loan
shall be disbursed only to pay for actual and reasonable costs related to the preparation of plans,
studies and reports for the Development as more particularly described in Exhibit "A" attached
hereto. Agency's obligation to commence disbursement of the Predevelopment Loan proceeds is
subject to the fulfillment or waiver by Agency of each and all of the conditions precedent (a)
through (t) inclusive, described below ('~~onditions Precedent") which are solely for the benefit
Wakeland Predevelopment Loan Agreement
Page 2
3-12
of Agency, any of which may be waived by the Agency's Executive Director in his or her sole
and absolute discretion:
2a. Execution of Documents. Developer shall have executed and delivered to the
Agency the Assignment of Plans, substantially in the form attached hereto as Exhibit "B" and
incorporated herein, the consent to the Assignment of Plans of each person or entity for which
payment is sought, and any other documents required hereunder shall be executed prior to any
commencement of work by the subcontractor and disbursement of any loan funds.
2b. Contract. Developer shall have provided to the Agency a signed copy of each
contract between the Developer and each provider of predevelopment services to be funded
hereunder, certified by the developer to be true and correct copies thereof.
2c. No default. Developer shall not be in default in any of its obligations under the
terms of this Agreement or the ENA. All covenants of Developer which are required hereunder
or in the ENA to be performed prior to the disbursement of the Predevelopment Loan shall have
been performed by such date.
2d. Application for Payment. The Developer shall have submitted a request for
payment to the Agency (the "Application for Disbursement"), at least ten (10) business days
prior to the requested disbursement. The Application for Disbursement shall be completed and
certified to be accurate by the Developer. The Application for Disbursement shall specifically
identify the nature of each expense, and shall identify the status of completion of such item of
work. Each application for Disbursement shall be accompanied by copies of paid invoices or the
original invoices, if to be paid directly by the Agency, from contractors and subcontractors and
any other information and documents reasonably requested by the Agency.
2e. Frequency. Agency shall not be obligated to make. disbursements more
frequently than twice per month.
2f. Use of Disbursements. Developer shall use or apply all Predevelopment Loan
disbursements solely for the purposes described in the Application for Disbursement pursuant to
which the disbursement was made, and in accordance with all of the requirements of this
Agreement.
3. Repayment of Predevelopment Loan. Should Developer and the Agency approve and
execute a Development and Loan Agreement within the Negotiating Period as set forth in the
ENA, such Agreement shall set forth the manner and provide for the Developer's repayment of
the amount of the Predev~lopment Loan disbursed hereunder,. If the Development and Loan
Agreement is not approved 6r executed within the Negotiating Period as set forth in the ENA,
the Predevelopment Loan shall be immediately due and payable from any and all assets and
resources legally available to the developer. Additionally, Developer shall assign to the Agency
any and all of the Developer's rights in and to the plans, studies, and analyses which are funded
through the Predevelopment Loan. In order to secure the Developer's obligation hereunder, the
developer agrees to execute the Assignment of Plans.
Wakeland Predevelopment Loan Agreement
Page 3
3-13
4. Insurance. Developer must procure insurance against claims for injuries to persons or
damages to property that may arise from or in connection with the perfonnance of the work
under the contract and the results of that work by the Developer, his agents, representatives,
employees or subcontractors and provide documentation of same prior to commencement or
work. The insurance must be maintained for the duration of the contract.
a. Minimum Scope of Insurance. Coverage must be at least as broad as:
i. Insurance Services Office Commercial General Liability coverage
(occurrence Form CGOOOI)
iL Insurance Services Office Form Number CA 0001 covering Automobile
Liability, codel (any auto).
lll. Workers' Compensation insurance as required by the State of California
and Employer's Liability Insurance.
b. Minimum Limits of Insurance. Developer must maintain limits no less than:
1.
General Liability:
(Including operations,
products and
completed operations,
as applicable.)
ii.
Automobile Liability:
ilL
Workers '
Compensation
Employer's Liability:
$1,000,000 per occurrence for bodily injury, personal injury and
property damage. If Commercial General Liability insurance
with a general aggregate limit is used, either the general
aggregate limit must apply separately to this project/location or
the general aggregate limit must be twice the required
occurrence limit.
$1,000,000 per accident for bodily injury ~d property damage.
Statutory
$1,000,000 each accident
$1,000,000 disease-policy limit
$1,000,000 disease-each employee
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City. At the option of the City, either
the insurer will reduce or eliminate such deductibles or self-insured retentions as they
pertain to the City, its officers, officials, employees and volunteers; or the Developer will
provide a financial guarantee satisfactory to the City guaranteeing payment of losses and
related investigations, claim administration> and defense expenses.
d. Other Insurance Provisions. The general liability, automobile liability> and
where appropriate, the worker's compensation policies are to contain, or be endorsed to
contain, the following provisions:
i. rile City of ClllIla Vista, its officers, officials, employees, age/Its, and
volllllteers are to be ltamed as additiollaJ i1lsureds with respect to liability
arisirzg Ollt of automobiles owned, leased, hired or borrowed by or on behalf of
Wakeland Predevelopment Loan Agreement
Page 4
3-14
the Developer, where applicable, and, with respect to liability arising out of work
or operations performed by or on behalf of the Developer including providing
materials, parts or equipment furnished in connection with such work or
operations. The gelleralliability additional illsured coverage 11Iust be provided
ill the form of all el1dorsemellt to the Developer's insurance lIsing ISO CG 2010
(11/85) or its equivalent. Specifically, tlte endorsement mllst not exclude
Products / Completed Operations coverage.
ii. The Developer's illSllrallCe coverage 11I1lSt be primary insurance as it
pertains to the City, its officers, officials, employees, agents, and volunteers. Any
insurance or self-insurance maintained by the City, its officers, officials,
employees, or volunteers is wholly separate from the insurance of the I?eveloper
and in no way relieves the Developer from its responsibility to provide insurance.
lll. Each insurance policy required by this clause must be endorsed to state
that coverage wil/not he ca1lceled by either party, except after thirty (30) days'
prior writtell notice to the City by certified mail, return receipt requested.
iv. Coverage shall 1l0t extend to allY indemllity coverage for tlte active
negligence of the additional insured in any case where an agreement to
indemnify the additional insured would be invalid under Subdivision (b) of
Section 2782 of the Civil Code.
v. Developer's insurer will provide a Waiver of Sllbrogatioll in favor of the
City for each required policy providing coverage during the life of this contract.
e. Acceptability of Insurers. Insurance is to be placed with licensed insurers
admitted to transact business in the State of California with a current A.M. Best's rating
of no less than A V. If insurance is placed with a surplus lines insurer, insurer must be
listed on the State of California List of Eligible Surplus Lines Insurers (LESL!) with a
current A.M. Best's rating of no less than A X. Exception may be made for the State
Compensation Fund when not specifically rated.
f. Verification of Coverage. Developer shall furnish the City with original
certificates and amendatory endorsements effecting coverage required by this clause.
The endorsements should be on insurance industry forms, provided those endorsements
conform to the contract requirements.
All certificates alld endorsements are to be received and approved by the City
before work comin~nces. The City reserves the right to require, at any time, complete,
certified copies of all required insurance policies, including endorsements evidencing the
coverage required by these specifications.
g. Subcontractors. Developer must include all subcontractors as insureds under its
policies or furnish separate certificates and endorsements for each subcontractor. All
Wakeland Predevelopment Loan Agreement
Page 5
3-15
coverage for subcontractors are subject to all of the requirements included in these
specifications.
5. Indemnification and Hold Harmless. Developer shall indemnify, hold harmless,
protect, and defend, with attorney(s) reasonably acceptable to the Agency, the Agency and its
officers, elected and appointed boards and officials, employees, representatives and agents, from
and against any and all liability, damages, costs, losses, claims and expenses, suits, actions,
proceedings and judgments, including without limitation, reasonable attorney fees and court
costs" however caused, resulting directly or indirectly from or connected with the Development,
the Site andlor the approval of or the performance under this Agreement alleged by third parties
to be the result of or related to errors, omissions, or misconduct by Developer or its contractors,
subcontractors, agents, employees or other persons action on its behalf, except to the extent
caused by the sole negligence or sole willful misconduct of the Agency, or its officers, boards,
officials, employees representative or agents.
This indemnity obligation shall survive the termination of this Agreement. Notwithstanding the
foregoing, in the event of a third party challenge to the validity of ' this Agreement, Developer
shall have the option to terminate this Agreement in lieu ofits indemnity obligation.
6. Compliance with Laws. The Developer for itself and its obligations hereunder in
conformity with aU applicable laws, including without limitation all provisions of the City
Municipal Code, all applicable environmental laws, all state and federal fair housing laws, and
all applicable disabled and handicapped access requirements, including without limitation the
Americans With Disabilities Act, 42 U.S.C. Section 12101, et seq., Government Code Section
4450, et seq., Government Code Section 11135, et seq., and the Unruh Civil Rights Act, Civil
Code Section 51, et seq.
7. Nondiscrimination. Developer for itself and its successors and assigns, agrees that there
shall be no discrimination against or segregation' of any person or group of persons, on account
of race, color, creed, religion, sex, marital status, national origin, or ancestry in the leasing,
subleasing, rental, transferring, use, occupancy" tenure, .or enjoyment of the Site nor shall the
Developer or any person claiming under or through the Developer establish or permit any such
practice or practices of discrimination or segregation with reference to the selection, location,
number, use, or occupancy, of tenants, leases, sublessees, subtenants, contractors or vendess in
the Site.
8. Condition of the Site. Developer shall take all necessary precautions to prevent the
release into the Site of Hazardous Materials (as defined below). Such precautions shall include
compliance with all Government Requirements (as defmed below) with respect to Hazardous
Materials. In addition to any and all other indemnities, Developer shall indemnify, defend and
hold Agency harmless from and against any claim, action, suit, proceeding, loss, cost, damage,
liability, deficiency, fine, penalty, punitive damage, or expense (including, without limitation,
attorney's fees), resulting from, arising out of, or based upon (i) the release from the Site, use on
the site, generation on the Site, discharge from the Cite, storage on the Site, disposal on or from
the Site, or transportation to or from the Site, of any Hazardous Materials during the term of this
Agreement, which is caused by the Developer or its officers, employees or agents, or eii) the
Wakeland Pre development Loan Agreement
Page 6
3-16
violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment
or license relating to the use, generation, release, discharge, storage, disposal or transportation of
Hazardous materials on, under, in or about, to or from, the Site, which is cause by the Developer
or its officers, employees, or agents. This indemnity shall include, without limitation, any
damage, liability, fine, penalty, cost or expense arising from or out of any claim, action, suit or
proceeding, including injunctive, mandamus, equity or action at law, for personal injury
(including sickness, disease or death), tangible or intangible property damage, compensation for
lost wages, business income, profits or otber economic loss, damage to the natural resources or
the environment, nuisance, contamination, leak, spill, release or other adverse effect on the
environment.
For the purposes of this Agreement, "Governmental Requirements" means all laws, ordinances,
statutes, code, rules, regulations, orders, and decrees of the United States, the State of C-alifornia,
San Diego County, the City of Chula Vista, or any other political subdivision in which the Site is
located, and of any other political subdivision, agency, or instrumentality exercising jurisdiction
over the Developer or the Site.
For the purposes oftrus Agreement, "Hazardous Materials" means any substance, material, or ate
which is or becomes regulated by any local governmental authority, the County, the State of
California, regional governmental authority, or the United States Government, including, but not
limited to, any material or substance which is (i) defined as a "hazardous waste," "extremely
hazardous waste," or "restricted hazardous waste" under Section 25115, 25117 or 25122.7, or
listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter
6.5 (Hazardous Waste Control Law), (ii) defined as a "hazardous substance" under Section
25316 of the California Health and Safety Code, division 20, chapter 6.8 (Carpenter-Presley-
Tanner Hazardous Substance Account Act), (Ui) defined as a "hazardous material," "hazardous
substance," or "hazardous waste" under Section 25501 oftbe California Health and Safety Code,
Division 20, Chapter 6.95 (Hazardous Materials Release Response Plaris and Inventory), (iv)
defined as a "hazardous substance" under Section 25281 of the California Health and Safety
Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum,
(vi) friable asbestos, (vii) polychlorinated byphenyls, (viii) methyl tertiary butyl ether, (ix) listed
under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article 11 of
title 22 of the California Code of Regulations, Division 4, ex) designated as "bazardous
substances" pursuant to Section 311 of the Clean Water Act (33 U.S.C. 913 I 7), (xi) defined as a
"hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42
V.S.C. 96901 et seq. (42 D.S.C. 96903), or (xii) defined as "hazardous substances" pursuant to
Section 101 of the Comprehensive Envirorunental Response, Compensation, and Liability Act,
.42 U.S.C. 96901 et seq. Notwithstanding the forgoing, "Hazardous Materials" shall not include
such products in quantities as are customarily use in construction, maintenance, rehabilitation or
management of residentiat" 1ievelopments or associated buildings and grounds, or typically used
in residential activities in a manner. typical of other comparable residential developments, or
substance commonly ingested by a significant population living within the Development,
including without limitation alcohol, aspirin, tobacco and saccharine.
9. Liens and Stop Notices. Developer shall use its best efforts to prevent any lien or stop
notice from being place on the Site of the Development or any part thereof. If a claim of a lien or
Wakeland Predevelopment Loan Agreement
Page 7
3-17
stop notice is given or recorded affecting the Site the Developer shall within thirty (30) days of
such recording or service:
a. pay and discharge the same; or
b. effect the release thereof by recording and delivering to Agency a surety bond in
sufficient form and amount, or otherwise; or
c. provide Agency with indemnification from a title insurance company reasonably
acceptable to the Agency against such lien or other assurance whlch Agency deems, in its
sole discretion, to be satisfactory for the payment of such lien or bonded stop notice and
for the full and continuous protection of Agency from the effect of Agency from the
effect of such lien or bonded stop notice. -
10. Developer's Representations and Warranties. Developer represents and warrants to
Agency as follows:
a. Authority. Developer has full right, power and lawful authority to undertake all
obligations as provided herein, and the execution, performance and delivery of this
Agreement by Developer has been fully authorize by all requisite actions on the part of
the Developer. The parties who have executed this Agreement on behalf of Developer are
authorized to bind Developer by signature hereto.
b. Litigation. To the best of the Developer's knowledge, there are no actions, suits,
material claims, legal proceedings, or any other proceedings affecting the Developer or
any parties affiliated with Developer, at law on in equity before any court or
governmental agency, domestic or foreign, which if adversely determined, would
materially impair the right or ability of Developer to execute or.perform its obligations
under this Agreement or any docwnents required herby to be executed by Developer, or
. which would materially adversely affect the financial condition of Developer or any
parties affiliated with Developer.
c. No Conflict. To the best of the Developer's knowledge, Developer's execution,
delivery, and performance of its obligations under this Agreement will not constitute a
. default or a breach under any contract, agreement or order to which Developer or any
parties affiliated with Developer is a party or by which it is bound.
d. No Bankruptcy. No attachment, execution proceedings, assignments for the
benefit of creditors, insolvency, bankruptcy, reorganization, receivership or other
proceedings have be~n flied or are pending or threatened against the Developer or any
parties affiliated with Developer, nor are any of such proceedings contemplated by
Developer or any parties with Developer.
e. Notice of Changed Conditions. Developer shall, upon learning of any fact or
condition which would cause any warranties and representations in this Section 10 not to
be true in any material respect,jmmediately give written notice of such fact or condition
Wakeland Predevelopment Loan Agreement
Page 8
3-18
to Agency. Such exceptiones) to a representation shall not be deemed breach of
Developer hereunder, but shall constitute an exception which Agency shall have the right
to approve or disapprove. If Agency elects to disburse the Predevelopment Loan to the
Developer following disclosure of such information, Developer's representations and
warranties contained herein shall be deemed to have been made as of the date of the
disbursement of the Predevelopment Loan, subject to such exceptiones). If following the
disclosure of such information the Developer fails to cure such matter within the time set
forth in Section 11 hereof for the cure of defaults, Agency may elect in its sole and
exclusive discretion to terminate this Agreement by 'Nritten notice to the Developer.
11. Prohibition Against Assignment and Transfer. Agency would not have entered into
this Agreement but for Developer's unique qualifications and experience. Therefore, Developer's
rights and obligations under this Agreement may not be assigned, whether voluntarily,
involuntarily, or by operation of law, without the prior written approval of Agency in its sole
discretion.
Upon the occurrence of any change, whether voluntary or involuntary, in membership,
ownership, management or control of the Developer (other than such changes occasioned by the
death or incapacity of any individual) that has not been approved by the Agency, prior to the
time of such change, the Agency may terminate this Agreement, without liability, by sending
written notice of termination to Developer. If Agency exercises said right to terminate, all funds
shall be immediately due and payable.
12. Remedies for Default. A failure by either party to perform any action or covenant
required by this Agreement, within the time periods provided herein following notice and failure
to cure as described hereafter, constitutes a "Default" under this Agreement. A party claiming a
Default shall give written notice of Default to the other party specifying the Default complained
of. Except as otherwise expressly provided in this Agreement, the claimant shall not institute any
proceeding against any other party, and the other party shall not be in Default if such party cures
such default within thirty (30) days from receipt of such notice. However, in the event that such
. Default is of such a nature that it cannot reasonably be cured within thirty (3) days from receipt
of such notice, the claimant shall not institute any proceeding against the other party, and the
other party shall not be in Default is such party iInmediately upon receipt of such notice. with
due diligence. commences to cure, correct or remedy such failure or delay and completes such
cure, correction or remedy with diligence as soon as reasonably possible thereafter.
13. Termination. Either party may terminate this Agreement if the other party has
materially defaulted in its obligations herein set forth, and the terminating party has provided
defaulting party with written notification of such determination, and the defaulting party has
refused to cure same as set; f6rth above.
Each party shall also have the right to terminate this Agreement in the event that Agency or
Developer determines that (a) the Project is infeasible or not in the public interest; or (b) the
parties reach an impasse in their negotiation of the Development and Loan Agreement which
cannot be resolved after good faith efforts.
Wakeland Predevelopment Loan Agreement
Page 9
3-19
14. Institution of Legal Actions. In addition to any other rights or remedies and subject to
the restrictions otherwise set forth in this Agreement, either party may institute and action at law
or equity to seek specific performance of the terms of this Agreement, or to cure, correct or
remedy any Default, to recover damages for any Default, or to obtain any other remedy
consistent with the purpose of this Agreement. Legal actions must be instituted in the Superior
Court of the County of San Diego, State of California located in the City of Chula Vista..
15. Acceptance of Service of Process. In the event that any legal action is commenced by
the Developer against Agency, service of process on Agency shall be made by personal service
upon the Secretary or executive Directory of Agency or in such other manner as may be provided
by law. In the event that any legal action is commenced by Agency against the Developer,
service of process shall be made in such a manner as may be provided by law and shall be
effective whether served inside or outside California. -
16. Rights and Remedies Are Cumulative. E~cept as otherwise expressly stated in this
Agreements, the rights and remedies of the parties are cumulative, and the exercise by either
party of one or more of such rights or remedies shall not preclude the exercise by it, at the same
or different times, of any other rights or remedies for the same Default or any other Default by
the other party.
17. Inaction Not a Waiver of Default. Any failures or delays by either party in asserting any
of its rights and remedies as to any Default shall not operate as a waiver of any default or of any
such rights or remedies, or deprive either such party of its right to statute and maintain such
actions or proceeding which it may deem necessary to protect, assert or enforce any such rights
or remedies.
18. Applicable Law. The laws of the State of California shall gove~ the interpretation and
enforcement of this Agreement.
19. Attorney's Fees. In any action between the parties to interpret, enforce, reform, modify,
rescind, or otherwise in connection with any of the term or provisions of this Agreement, the
prevailing party in the action shall be entitled, in addition to any other relief to which it might be
entitled, whether legal or equitable, its actual and reasonable costs and expenses including,
without limitation, litigation costs and reasonable attorney's fees. The parties hereto
acknowledge and agree that each such party shall bear its own legal cost$ incurred in connection
with the negotiation, approval, and execution ofthis Agreement.
20. General Provisions.
a. Notices, riethands and Communications Between Parties. Any approval,
disapproval, demand, document or other notice ("Notice") which either party may desire
to give to the other party under this Agreement must be in writing and may be given
either by (i) personal service, (ii) delivery by reputable document delivery service such as
Federal Express that provides a receipt showing date and time of deliver, or (iii) mailing
in the United States mail, certified mail, postage prepaid, return receipt requested,
---
Wakeland Predevelopment Loan Agreement
Page 10
3-20
addressed to the address of the party as set forth below, or at any other address as that
party may later designate by Notice:
To Agency:
Agency's Address for Notice:
Redevelopment Agency of the City of Chula Vista
Community Development Department
Attn: Director of Community Development
Copy to: City Attorney
276 Fourth Avenue
Chula Vista, CA 91910
Telephone: (619) 691-5047
Fax: (619)476-5310
To Developer:
Developer's Address for Notice:
Kenneth Sauder
Wakeland Housing and Development Corporation
625 Broadway, Ste. 1000
San Diego, CA 92101
Telephone: 619-235-2296
Fax: 619-235-5386
Any written notice, demand or communication shall be deemed received
immediately upon receipt; provide, however, that refusal to accept delivery after
reasonable attempts thereto shall constitute receipt. Any notices attempted to be delivered
to an address from which the receiving party has moved without notice shall be effective
on the third day from the date of the attempted delivery or deposit in the United States
mail.
b. Non-Liability of Officials and Employees of Agency and City. No member,
official, officer or employee of Agency of the City of Chu1a Vista shall be personally
liable to the Developer, or any successor in interest, in the event of any Default or breach
by Agency or for ~y amount which may become due to the Developer or its successors,
or on any obligations under the terms of this Agreement. The City is not a party to this
Agreement and shall have no obligations hereunder.
c. Counterparts. This Agreement may be signed in multiple counterparts which,
when signed by all parties, shall constitute a binding agreement. This Agreement is
executed in three (3) originals, each of which is deemed to be an original.
Wakeland Pre development Loan Agreement
Page 11
3-21
d. Integration. This Agreement, together with the ENA, contains the entire
understanding between parties relating to the Predevelopment Loan contemplated by this
Agreement. All prior or contemporaneous agreements, understanding, representations
and statements, oral or written, related to the Predevelopment Loan are merged in this
Agreement and shall be of no further force or effect. Each party is entering this
Agreement base solely upon the representation set forth herein and upon each party's
own independent investigation of any and all facts such party deems material.
e. No Waiver. A waiver by either party of a breach of any of the covenants,
conditions or agreement under this Agreement to be performed by the other party shall
not be construed as a waiver of any succeeding breach of the same or other covenants,
agreements, restrictions or conditions of this Agreement.
f. Modifications. Any alteration, change, or modification of or to this Agreement,
in order to become effective, shall be made in writing and in each instance signed on
behalf of each party.
g. Severability. If any term, provision, condition, covenant of this Agreement or its
application to any party or circumstances shall be held, to any extent, invalid or
unenforceable,the remainder of this Agreement, or the application of the tenn,
provisions, condition or covenant to persons or circumstances other than those as to
whom or which it is held invalid or unenforceable, shall not be affected, and shall be
valid and enforceable to the fullest extent permitted by law.
h. Legal Advice. Each party represents and warrants to the other the following: they
have carefully read this Agreement, and in signing this Agreement, they do so with full
knowledge of any right which they may have; they have received independent legal
advice from their respective legal counsel as to the matters set forth in this Agreement, or
have knowingly chosen not to consult legat counsel as to the matters set forth in this
Agreement; and, they have freely signed this Agreement without any reliance upon any
agreement, promise, statement or representation by or on behalf of the other party, or
their respective agents, employees, or attorneys, except as specifically set forth in this
Agreement, and without duress or coercion, whether economic or otherwise.
i. Time of Essence. Time is expressly made of the essence with respect to the
performance by the parties of each and every obligation and condition of this Agreement.
j. Cooperation. Each party shall cooperate with the other in this transaction and, in
that regard, sign any and all documents which may be reasonably necessary, helpful, or
appropriate to canj c5ut the purposes and intent of this Agreement including, but not
limited to, releases or additional agreements.
k. Definitions. Any terms used in this Agreement but not separately defined herein
shall have the meaning given to such terms in the ENA.
[NEXT P~.9E IS SIGNATURE PAGE]
Wakeland Predevelopment Loan Agreement
Page 12
3-22
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
Effective Date specified herein.
"AGENCY"
REDEVELOPNIENT AGENCY OF THE CITY OF
CHULA VISTA, a public body, corporate and
politic
By:
Stephen C. Padilla, Chair
ATTEST:
Dana M. Smith, Secretary
APPROVED AS TO FORM:
Ann Moore, Agency Attorney
"BORRO'NER"
WAKELAND HOUSING & DEVELOPMENT
CORPORATION
a Califo Nonprofit Public Benefit Corporation
B)" i cL~
'Kenneth L. Sauder, President and CEO
Wakeland Predevelopment Loan Agreement
Page 13
3-23
EXHIBIT "A"
Exclusive Negotiating Agreement TimelinelBudget
ALTA Survey
Site Feasibility Study
Soils Report
Phase I Environmental
Phase II
Environmental
(if necessary)
Preliminary Civil
Engineering Analysis
Site Adequacy
PubHc Workshop #1
Entitlement
Applications
Project Description,
Site Plans and
Elevations
Zoning Amendment
Environmental
Review
Project Development
Schedule
Housing Advisory
Commission
Agency Funding
Application
Agency Funding
Workshop #2
Final Site Plans and
Elevations
Developer to obtain a AL T A Survey on the subject Property
Developer to perform a Site Feasibility Study on the subject Property
Developer to obtain a Soils Report on the subject Property
Developer to obtain a Phase I Environmental on the subject Property
Developer to obtain a Phase I1 Environmental on the subject Property (if necessary)
Developer to perform a Preliminary Civil Engineering Analysis on the subject Property
Developer shall provide written determination of whether the subject Property is
physically suitable for development taking into account regulatory and environmental
conditions that are deemed relevant
Developer to conduct a pre-design workshop to gather input from the public and
stakeholders on the design parameters and framework for the subject Property
Completed Within 150 Days of ENA Execution $25,000
Developer to submit applications for Initial Study and Rezone
Developer to submit project description, preliminary site plans and elevations based on
pre-design review with staff and public input received at Public Workshop #1
City shall initiate an amendment, to the zoning on the site to aiiow an all residential,
multi~family development
City shall initiate the environmental review of the project
Developer to submit projected timeline and schedule for the construction of the
proposed development
Developer to present project proposal to the Housing Advisory Commission
Developer to submit application for Agency funding on the subject property
Agelfcy to decide on funding commitment for project (need 30 days between application
and Agency meeting)
Within 180 Da S orENA Execution
Developer to Workshop to present proposed development
Within 210 Days arENA Execution
Developer to Final site plans and elevations
$50,000
Exhibit A - Wakeland Predevelopment Loan Agreement
Page 1
3-24
MILESTONE DESCRIPTION Agency Contribution
Final Pro Forma Developer to submit final pro forma based on revised site plans and elevations
Funding Partners and Developer to Identification of lenders and fmancing commitment
Structure
Environmental City to issue environmental and zoning approvals
Review
Within 240 Days of ENA E.xecution I
CYRC Presentation Developer to present development proposal and Affordable Housing Agreement for
review and consideration. CYRC adopts advisory recommendations for Agency and/or
Council consideration.
Redevelopment Developer to present development proposal to Agency for final review and -
Agency consideration.
Within 300 Davs of ENA Execution r $100,000
Funding Application Developer to prepare and submit outside funding applications
Project Design Developer to complete construction draw.ings based on pre-design review with staff and
public input received at Public Workshops
Exhibit A - Wakeland Predevelopment Loan Agreement
3-25
Page 2
EXHIBIT "R"
ASSIGNMENT OF PLANS
The undersigned, WAKELAND HOUSING AND DEVELOPMENT CORPORATION, a
California nonprofit public benefit corporation ("Developer"), as of this 1 Olh day of August,
2006, hereby assigns to the REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA, a public body, corporate and politic ('"Agency"), all of its rights, title and interest in and
to:
1. All architectural, design, engineering and development agreements, and any and all
amendments, modifications, supplements, addenda and general conditions thereto
(collectively, "Architectural Agreements"); and, -
2. All plans and specifications, shop drawings, working drawings, amendments,
modifications, changes, supplements, general conditions and addenda thereto
(collectively "Plans and Specifications")
heretofore or hereafter entered into or prepared by any architect, engineer or other person or
entity (collectively "Architect"), for or on behalf of Developer in connection with the
development of the multifamily housing project (the "Project") referenced in the Predevelopment
Loan Agreement" between Developer and Agency dated as of August 10, 2006. The Plans and
Specifications, as of the date hereof, include, but are not limited to: ALTA Survey, site
feasibility study, soils report, environmental reports, preliminary civil engineering analysis, and
those which Developer has heretofore, or with hereafter deliver to Agency. The Architectural
Agreements include, but are not limited to: site plans and architectural elevations and those
which Developer has heretofore, or will hereafter deliver to Agency.
This Assignment of Plans ("Assignment") constitutes a present and absolute assignment to
Agency as of the Effective Date; provided, however, Agency conferes upon Developer the right
to enforce the terms of the Architectural Agreements .and Developer's right to the Plans and
Specifications so long as the Predevelopment Loan has not become due and payable. Upon the
date that the Predevelopment loan becomes due and payable, the Agency may, in its sole
discretion, give notice to Architect of its intent to enforce the rights of Developer under the
Architectural Agreements and of its rights to the Plans and Specifications and may initiate or
participate any legal proceedings respecting the enforcement of said rights. Developer
acknowledges that by accepting this Assignment, Agency does not assume any of Developer's
obligations under the Architectural Agreements or with respect to the Plans and Specifications.
Developer represents and warrants to Agency, as of the date hereof, that: (a) all Architectural
Agreements entered into by Developer are in full force and effect and are enforceable in
accordance with their terms and no default , or event which would constitute a default after
notice or the passage of time, or both, exists with respect to said Architectural Agreements; (b)
all copies of the Architectural Agreements and Plans and Specifications delivered to Agency are
complete and correct; and (c) Developer has not assigned any of its rights under the Architectural
Agreements or with respect to the Plans and Specifications.
Exhibit B - Wakeland Predevelopment Loan Agreement
3-26
Page 1
Developer agrees: (a) to pay and perform aU obligations of Developer under the Architectural
Agreements; (b) to enforce the payment and performance of all obligations of any other person
or entity under the Architectural Agreements; (c) not to modify the existing Architectural
Agreements nor to enter into any future Architectural Agreements without Agency's prior
written approval, except as otherwise may be pennitted in the Predevelopment Loan Agreement;
and (d) not to further assign, for security or any other purpose, its rights under the Architectural
Agreements or with respect to the Plans and Specifications without Agency's prior written
consent.
This Assignment secures payment and performance by Developer of all obligations of Developer
under the Predevelopment Loan Agreement. This Assignment is supplemental by any applicable
provisions of the Predevelopment Loan Agreements and said provisions are incorporate~ herein
by reference.
This Assignment shall be governed by the laws of the State of California, and Developer
consents to the jurisdiction of any State Court with the State of California having proper venue
for the filling and maintenance of any action arising hereof under and agrees that the prevailing
party in any such action shall be entitled, in addition to any other recovery, to reasonable
attorney's fees and costs. This Assignment shall be binding upon and inure to the benefit of the
heirs, legal representatives, assigns, and successor's in interest of Developer and Agency.
The attached Architects/Engineer's consent(s) is/are incorporated by reference.
"DEVELOPER"
By:
WAKELAND HOUSING & DEVELOPMENT
CORPORA nON, a. California Nonprofit Public Benefit
Corporation
I- -d-c-,
Kenneth 1. Sauder, President and CEO. '--
o -of-ubi
Date:
Exhibit B - Wakeland Pre development Loan Agreement
3-27
Page 2
Signature Page Continued
"AGENCY"
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA,
a public body, corporate and politic
By:
Stephen C. Padilla, Chair
Date:
ATTEST:
Dana M. Smith, Secretary
~.~.-
Exhibit B - Wakeland Predevelopment Loan Agreement
3-28
Page 3
ATTACHMENT 2
lOCATION MAP
1501 Broadway
3-29
Attachment 3
WAKELAND HOUSING AND DEVELOPMENT CORPORATION
TOWN SQUARE ROWHOMffiS
· Town Square Rowhomes is located in tJ+e "Brick Row" Neighbbrhood at 9th
Street and "A" Avenue in National City-:
· Town Square Row Homes is a new construction project of 6 detached homes. The
homes were sold to families earning approximately 90% area median income.
Two units are income restricted at 120% -area median income.
· The development is in the Redevelopment Area of National City, and is consistent
with the objective of the City's Redevelopment Plan - to promote home
ownership.
· The units are appro~ately 1,500 square feet, three bedrooms and three baths.
i
· Each unit is based on a three story neo- Victorian design that includes a large room
for a ground level business use, if desired by the owner.
· The property was developed by Town Square Rowhomes, LLC.
· Sources of funds for the development are Low-Income Housing Fund, National
City Community Development Commission, with conventional take-out financing
being offered to the homeowners through Wells Fargo Bank.
3-30
Construction began in July 2001. and was comnleted in June )()n')
-"";,
WAKELAND HOUSING AND DKVELOPlVIENT CORPORATION
BEYER COURTYARDS
....-r ,
;/
· Located at 3300 Beyer Blvd in San Ysidro.
· New construction development of 60 units, ;primarily targeting very -low income
households. ,~
· 2 and 3 bedroom rental units.
· Financing sources are Bonds and 3% Tax CreditS.
· Construction was recently completed in April 2006.
.1
3-31
WAKELAND HOUSING AND DEVELOP:M:ENT CORPORATION
L~LIAN'S PLACE
· Located at 1401 J Street in Dovmtown San Diego.
· 4 story (on J Street) and 3 Story new structures, plus a rehabilitated historic 2 story
building (on the comer of 14th and 1), surrounding a series of connected courtyards and
recreation spaces.
· 74 units with a planned unit mix as follows; 23 one bedroom, 27 twq bedroom, 23 three
bedroom and 1 manager's unit. Three of the. 3 bedroom units will befthree stqry
townhomes, suitable as a live (work environment, targeted to 110% AMI households.
· A community center will include the property manager's office, a computer learning
center and and other resident services activities.
· A separate room will be set-aside to show an exhibit commemorating the history of the
site (to be open to the public on a scheduled basis)
· Lillian Place is a joint venture between Wakeland and Interfaith Housing Assistance
Corporation. :
:
· Financing sources are ~e City of San Diego (NOF A funding), 9% tax credits, Affordable
Housing Program funding, Wells Fargo Bank construction loan, CCRC permanent
fmancing.
· Construction began in November 2004 and is expected to be completed by Summer 2006.
3-32
RDA RESOLUTION NO. 2006-
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VIST A APPROVING [A] A
PREDEVELOPMENT LOAN AGREEMENT BY AND BETWEEN
THE REDEVELOPMENT AGENCY AND WAKELAND HOUSING
AND DEVELOPMENT CORPORATION FOR THE
DEVELOPMENT AND OPERATION OF AN AFFORDABLE
RENTAL HOUSING DEVELOPMENT TO BE LOCATED AT 1501
BROADWAY IN THE CITY OF CHULA VIST A AND
AUTHORIZING THE CHAIRMAN OF THE REDEVELOPMENT
AGENCY TO EXECUTE SAID AGREEMENT; AND [B]
APPROPRIATION OF $200,000 FROM THE UNAPPROPRIATED
BALANCE IN THE LOW AND MODERATE INCOME HOUSING
FUND FOR THE PREDEVELOPMENT LOAN TO WAKELAND
HOUSING AND DEVELOPMENT CORPORATION
WHEREAS, California Health and Safety Code Sections 33334.2 and 33334.6
authorize and direct the Redevelopment Agency of the City of Chula Vista (the "Agency") to
expend a certain percentage of all taxes which are allocated to the Agency pursuant to Section
33670 for the purposes of increasing, improving and preserving the community's supply of low
and moderate income housing available at affordable housing cost to persons and families of
low- and moderate-income, lower income, and very low income; and
WHEREAS, pursuant to applicable law the Agency has established a Low and
Moderate Income Housing Fund (the "Housing Fund"); and
WHEREAS, pursuant to Health and Safety Code Section 33334.2(e), in carrying out
its affordable housing activities, the Agency is authorized to provide subsidies to or for the
benefit of very low income and lower income households, or persons and families of low or
moderate income, to the extent those households cannot obtain housing at affordable costs on the
open market, and to provide financial assistance for the construction and rehabilitation of
housing which will be made available at an affordable housing cost to such persons; and
WHEREAS, pursuant to Section 33413(b), the Agency is required to ensure that at
least 15 percent of all new and substantially rehabilitated dwelling units developed within a
project area under the jurisdiction of the Agency by private or public entities or persons other
than the Agency shall be available at affordable housing cost to persons and families of low or
moderate income; and
WHEREAS, Wakeland Housing and Development Corporation ("Developer")
proposes to construct an affordable rental housing development targeting predominately
extremely low and very low households at 50 percent or less of the Area Median Income (AMI)
to be located at 1501 Broadway within the Merged Chula Vista Project Area ("Project"); and
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RDA Resolution No. 2006-
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WHEREAS, in order to carry out and implement the Redevelopment Plan for the
Agency's redevelopment projects and the affordable housing requirements and goals thereof, the
Agency and City propose to enter into an Agency Predevelopment Loan Agreement (the
"Predevelopment Loan Agreement") with the Developer, pursuant to which the Agency would
make a predevelopment loan to the Developer (the "Predevelopment Loan"), and the Developer
would agree to develop the Project for occupancy of all apartment units in the Project to very
low and lower income households and rent those units at an affordable housing cost; and
WHEREAS, the Agency Predevelopment Loan Agreement will leverage the
investment of the Agency and City by requiring the Developer to obtain additional financing for
the construction and operation of the Project through such resources as "9% Tax Credits" to be
generated by the Project; and
WHEREAS, the Project is located within the Agency's Merged Chula Vista
Redevelopment Project Area and development and operation of the Project pursuant to the
Agency Agreement would benefit the Agency's redevelopment project areas by providing
affordable housing for persons who currently live and work within those redevelopment project
areas; and
WHEREAS, the Agency has adopted an Implementation Plan pursuant to Health and
Safety Code Section 33490, which sets forth the objective of providing housing to satisfy the
needs and desires of various age, income and ethnic groups of the community, and which
specifically provides for the rehabilitation of rental housing units through Agency assistance; and
WHEREAS, the Environmental Review Coordinator has reviewed the proposed activity
for compliance with the California Environmental Quality Act (CEQA) and has determined that
the activity is not a "Project" as defmed under Section 15378 of the State CEQA Guidelines;
therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not
subject to CEQA. Thus, no environmental review is necessary; and
WHEREAS, the Agency Agreement furthers the goals of the Agency to facilitate the
creation of affordable housing which will serve the residents of the neighborhood and the City as
set forth in the Implementation Plan; and
WHEREAS, the Agency have duly considered all terms and conditions of the proposed
Agency Loan Agreement and believes that this Loan Agreement is in the best interests of the
Agency and the health, safety, and welfare of its residents, and in accord with the public
purposes and provisions of applicable State and local law requirements;
NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VIST A DOES RESOLVE AS FOLLOWS:
Section 1. The Agency hereby finds that the use of funds from the Agency's Low
and Moderate Income Housing Fund pursuant to the Predevelopment Loan Agreement, to
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RDA Resolution No. 2006-
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facilitate the development and operation of real property will be of benefit to the Agency's
redevelopment project areas for the reasons set forth above.
Section 2. The Agency hereby approves [A] A Predevelopment Loan Agreement in
substantially the form presented to the Agency, subject to such revisions as may be made by the
Agency Executive Director/City Manager or his designee subject to the review and approval of
the Agency/City Attorney, with Wakeland Housing and Development Corporation for the
development of an affordable rental housing development located at 1501 Broadway and; [B]
appropriation of $200,000 from the unappropriated balance in the Low And Moderate Income
Housing Fund for said Predevelopment Loan to Wakeland.
PRESENTED BY
APPROVED AS TO FORM BY
Ann Hix
Assistant Director of Community
Development
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Ann oore
Agency Attorney
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