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HomeMy WebLinkAboutrda min 2007/01/11 CVRC MINUTES OF REGULAR MEETINGS OF THE CHULA VISTA REDEVELOPMENT CORPORATION (CVRe) AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA January 11, 2007 6:00 P.M. Regular Meetings of the Chula Vista Redevelopment Corporation and Redevelopment Agency of the City of Chula Vista were called to order at 6:01 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. CVRC ROLL CALL PRESENT: Directors: Castaneda, Desrochers, Lewis, McCann, Paul, and Chair Cox ABSENT: Directors: Ramirez, Rooney, and Vice Chair Rindone REDEVELOPMENT AGENCY ROLL CALL PRESENT: Agency Members: Castaneda, McCann, and Chair Cox ABSENT: Agency Members: Ramirez, and Vice Chair Rindone ALSO PRESENT: Interim Executive Director/City Manager Thomson, General Counsel/ City Attorney Moore, Chief Financial Officer/Finance Director Kachadoorian, Acting Community Development Director Hix, Secretary Smith, Housing Manager Mills, Principal Community Development Specialist Lee, Senior Community Development Specialist Do, Community Development Specialist Johnson, Senior Deputy City Clerk Peoples, Community Development Administrative Assistant Donnelly PLEDGE OF ALLEGIANCE, MOMENT OF SILENCE 1. APPROVAL OF MINUTES Staff Recommendation: a. That the Redevelopment Agency approve the minutes of November 16,2006. ACTION: Chair Cox stated that due to the absence of Vice Chair Rindone, this item would be continued to the next meeting. APPROVAL OF MINUTES (continued) b. That the CVRC and Redevelopment Agency approve the minutes of December 14, 2006. ACTION: Director/Agency Member Castaneda, moved approval of the minutes of December 14,2006. Director Desrochers seconded the motion and it carried 5-0 with Director/Agency Member Ramirez, Vice Chair Rindone and Director Rooney absent, and Director Paul abstaining. 2. WRITTEN COMMUNICATIONS Memorandum from Rudy Ramirez requesting an excused absence from the CVRC and Redevelopment Agency meeting of January 11,2007. Staff recommendation: That the CVRC and Redevelopment Agency excuse the absence. ACTION: Director/Agency Member McCann moved approval of requested excused absence. Director/Agency Member Castaneda seconded the motion and it carried 6-0 with Director/Agency Member Ramirez, Vice Chair Rindone and Director Rooney absent. PUBLIC HEARINGS The following item(s) have been advertised as public hearings as required by law. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the Clerk prior to the meeting. 3. CONSIDERATION OF ADOPTION OF A RESOLUTION AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO EXECUTE A PURCHASE CONTRACT AND RELATED DOCUMENTS FOR SPACE 2 AT ORANGE TREE MOBILEHOME PARK The Redevelopment Agency assisted residents with the purchase of the Orange Tree Mobilehome Park in 1987. Currently, six 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 Agency has received an offer for $47,000 to purchase Space 2. (Continued from the meeting of December 14,2006) 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. Housing Manager Mills provided the staff report, which included the background on the purchase of the park. Chair Cox opened the public hearing. Director/Agency Member McCann inquired as to how many spaces were remaining, whether they could be used for relocation of Jade Bay Mobilehome Park residents, and whether Space 2 was being sold at market value. Housing Manager Mills responded that the 5 remaining spaces were currently occupied, and that Space 2 was being sold for $3,500 below the appraised value. Page 2 - CVRC/RDA Minutes http://www.chulavistaca.gov January 11,2007 PUBLIC HEARINGS (continued) With no further members of the public wishing j:()speak, Chair Cox closed the public hearing. a. That the CVRC adopt the following resolution: CVRC RESOLUTION NO. 2007-001, RESOLUTION OF THE CHULA VISTA REDEVELOPMENT CORPORATION OF THE CITY OF CHULA VISTA RECOMMENDING THAT THE REDEVELOPMENT AGENCY AUTHORIZE THE COMMUNITY DEVELOPMENT DIRECTOR TO EXECUTE A PURCHASE CONTRACT AND RELATED DOCUMENTS FOR SPACE 2 AT ORANGE TREE MOBILEHOME PARK ACTION: Director McCann offered the CVRC Resolution No. 2007-001, heading read, text waived. Director Castaneda seconded the motion and it carried 6-0 with Directors Ramirez, Rooney and Vice Chair Rindone absent. b. That the Redevelopment Agency adopt the following resolution: RDA RESOLUTION NO. 2007-1966, 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 2 AT ORANGE TREE MOBILEHOME PARK ACTION: Agency Member McCann offered the RDA Resolution, heading read, text waived. Agency Member Castaneda seconded the motion and it carried 3-0 with Agency Member Ramirez, and Vice Chair Rindone absent. PUBLIC COMMENTS There were none. ACTION ITEMS 4. CONSIDERATION OF REDEVELOPMENT YEAR-END REPORTS FOR FY 2005- 2006 The Chula Vista Redevelopment Agency is required to prepare an Annual Report for consideration by its board. California State Health and Safety Code Section 33080.1 requires the report to include the following elements: (I) an independent financial audit report and opinion regarding the Agency's compliance with applicable regulations; (2) the Report of Financial Transactions of Community Redevelopment Agencies (State Controller's Report); and (3) the State Department of Housing and Community Development Schedules A-E. These reports provide detailed information regarding the activities of the Redevelopment Agency. Page 3 - CVRC/RDA Minutes http://www.chulavistaca.gov January II, 2007 ACTION ITEMS (continued) Chief Financial Officer/Finance Director Kachadoorian introduced Kathryn Beseau, Partner in the firm of Moreland and Associates, the independent accounting firm who performed the audit. Ms. Beseau explained what was involved in performing an audit including the review of processes in place, and the test of internal controls, policy and procedures. Ms. Beseau then covered the requirements of the Agency under state law, noting that the Redevelopment Agency had received a clean opinion on all aspects. Chief Financial Officer/Finance Director Kachadoorian stated that although Director/Agency Member Ramirez and Vice Chair Rindone were absent this evening, they had been fully briefed on the financial statements. Assistant Finance Director Davis provided a brief Powerpoint presentation on assessed valuations for the combined project areas over the last 10 years (base value vs. increment value for 1995 through 2007); the tax increment values over the last 10 years (1997 to 2006) - noting that the 2002 decrease was due to the devaluation of the Power Plant being reassessed by the State Board of Equalization; a tax increment comparison by project area for Fiscal Year 2005 to Fiscal Year 2006, and the Redevelopment Agency projection of where staff anticipates the Agency's available balance to end in Fiscal Year 2006-2007. Chief Financial Officer/Finance Director Kachadoorian then provided an overview of the financial impacts over the last few years. Director/Agency Member McCann confirmed that the only numbers included in the forecast were those that were anticipated to be spent through the end of the current year, which would include some expenses related to the Urban Core Specific Plan, but that there weren't any major appropriations for projects within the redevelopment area at this time. Chief Financial Officer/Finance Director Kachadoorian stated that the Finance Department and Redevelopment staff were creating a long term financial forecast for the Redevelopment Agency to look at where it is anticipated tax increment is going, what the impacts might be from the Power Plant, and projects Council may have approved to date that the benefits of tax increment are not showing at this point. The forecast will only include what Council has approved thus far. Director/Agency Member McCann requested and Ms. Kachadoorian responded to the potential pros and cons of merging the redevelopment areas, stating that there were currently two major merged project areas for financial reasons. One being the Bayfront/Town Centre I Project Area, and the other, referred to as the Merged Project Area, which is comprised of the Southwest, Otay Valley, and Town Centre II Project Areas. In 2000, when consideration was given to combining the project areas for bonding capacity, but due to the Bayfront struggling financially for so long, it was felt that it might hurt the bonding capacity of the merged project area if it were included, so it was not At some point in the future, when projects start occurring on the bayfront and tax increment looks healthy, it would then make sense to merge them to provide more flexibility in terms of allocating resources within all the project areas. Director/Agency Member McCann inquired, and Auditor Beseau responded, that the current debt service would be paid off by 203 I per the debt service schedules for the tax allocation bonds Page 4 - CVRC/RDA Minutes http://www.chulavistaca.gov January I 1,2007 ACTION ITEMS (continued) included as pages 29, 30, and 31 of the,.crep6rt. Ms. Beseau then reiterated that the Redevelopment Agency had received a clean bill of health. Director/Agency Member McCann commented that the audit shows the importance of the CVRC and the importance of getting projects done to bring in revenue to ensure a healthy Redevelopment Agency. Director/Agency Member Castaneda inquired as to why the tax increment in the Southwest area shows such a large increment increase. Principal Commnnity Development Specialist Lee explained that there have not been any major construction projects in that area, other than WalMart, however, there has been a lot of property turnover, particularly along Main Street, which has resulted in the property being reassessed. Director/Agency Member Castaneda then inquired as to how much bond indebtedness had been incurred in the Southwest and which projects had been funded. Assistant Finance Director Davis responded that page 31 of the financial statement showed $27.8 million for that combined project area. Chief Financial Officer/Finance Director Kachadoorian confirmed that money is being taken from one redevelopment sub-area, paying debt back and then using it to pay Gateway. Director/Agency Member Castaneda requested staff provide him with a list of where the bond proceeds have gone, and how much investment has been put back in the Southwest area. Director Desrochers requested a list of what projects are actually being accomplished with a breakdown of how much money goes to staff and how much goes to the projects. He also inquired as to the last date the tax allocation bonds could be sold for the Town Centre I, and confirmed that on page 3-1, July of2018, was the final date. Chair Cox inquired, and Chief Financial Officer/Finance Director Kachadoorian responded, that although there are 11 years remaining in the redevelopment area, and several years are necessary to get the projects up and running, there is a time crunch in that money is being left on the table until action is taken, thus restricting the capacity of money to be brought in. Director Desrochers concluded that to raise money for the Bayfront and Town Centre, it was critical to consider a bond issue within the next year. Staff Recommendation: That the CVRC and Redevelopment Agency accept the Redevelopment Year-End Reports for FY 2005-2006. ACTION: Director/Agency Member McCann moved to accept the reports. Director Desrochers seconded the motion and it carried 6-0 with Director/Agency Member Ramirez, Vice Chair Rindone and Director Rooney absent. Chair Cox confirmed that due to the reassessment of the Power Plant, the tax increment would disappear over the next five years. Director/Agency Member Castanaeda confirmed that the possessory interest tax that Ellis Power is paying to the Port District is what is shrinking. If another power plant is built, it starts all over agam. Page 5 - CVRC/RDA Minutes http://www.chulavistaca.gov January 11, 2007 ACTION ITEMS (continued) Chief Financial Officer/Finance Director Kachadoorian stated that the financial statements would be provided on the City Website for public review. 5. CHIEF EXECUTIVE OFFICER'S REPORTS a. CVRC Web Site Update - Interactive Map Community Development Specialist Johnson provided an update on the CVRC web site, covering the interactive mapping capability that had been added, along with the ability for users to request to be added to and removed from an e-mail subscription list. Chair Cox inquired, and staff responded in the affirmative, that it would be possible to mark completed projects in the future. Director/Agency Member Castaneda inquired as to whether there would be a way in the future to click on a parcel and have a pop up with the building standards in the area. Principal Community Development Specialist Lee responded that Plarming and Building had already created an "E Zoning" site that is up and running which accomplishes this and a link could be provided on the CVRC page to that one. He then provided the URL address to the Directors. b. Downtown Parking Management Study Update Director/Agency Member Castaneda recused himself from participation on this item as he owns property within 500 feet of the Civic Parking Garage. He then left the Council Chambers. Senior Community Development Specialist Do provided the staff report stating that the first presentation had been provided in October of 2006. Ms. Do further stated that Rich and Associates had been hired to perform a parking demand analysis; provide community participation and education; and develop a parking improvement program. She then provided an overview of the timeline and financing mechanisms for the study, showing a month-to-month progression, with March of 2007, identified for the completion of the analysis and preparation of the final report. Ms. Do additionally noted that while this is occurring, the consultant is holding community meetings. April 2007 is estimated for completion of the final report, followed by more community meetings, and then May/June of 2007, the final report will be presented to the CVRC and RAC. Rick Rich of Rich and Associates stated he had received good responses from the community and stakeholders, and looked forward to providing a study that will become an active tool to help with the planning of the area with the parking being a part of the economic scheme of the area as well. Director/Agency Member Castaneda returned to the Council Chambers. Page 6 - CVRC/RDA Minutes http://www.chulavistaca.gov January 11,2007 c. California Redevelopment Association 2007 Annual Conference & EXPO Acting Community Development Director Hix stated that this was an informational item provided to inform the Directors ofthe upcoming conference. 6. CHAIRMAN'S REPORTS There were none. 7. DIRECTORS' COMMENTS There were none. ADJOURNMENT At 7:08 Chair Cox adjourned the Redevelopment Agency to their next regularly scheduled meeting on January 25, 2007, at 6:00 p.m. ~vf(, ~ Dana M. Smith, Secretary Page 7 - CVRC/RDA Minutes http://v.ww.chlavistaca.gov January 11,2007