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HomeMy WebLinkAboutRDA Packet 1999/04/27Notice is hereby given that the Chair of the Redevelopment Agency has called and will convene a special meeting of the Redevelopment Agency, Tuesday, April 27, 1999 at 6:00 p.m., in Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California to consider, deliberate and act upon the following: ~on, Chair TUESDAY, APRIL 27, 1999 COUNCIL CHAMBERS 6:00 P.M. PUBLIC SERVICES BUILDING (IMMEDIATELY FOLLOWING THE CITY COUNCIL MEETING) SPECIAL MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA '1. ROLL CALL Agency Members Davis ~, Moot ~1, Padilla ~1, Salas ~, and Chair Horton ~1 The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the Council, staff, or members of the general public. The items will be considered individually by the Council and staff recommendations may in certain cases be presented in the alternative. Those who wish to speak, please fill out a Request to Speak form available in the lobby and submit it to the City Clerk prior to the meeting. 2. RESOLUTION 1625 APPROPRIATING ONE HUNDRED FIFTY SlX THOUSAND SIX HUNDRED SEVENTY FOUR DOLLARS ($156,674) FROM THE UNAPPROPRIATED BALANCE IN THE LOW AND MODERATE INCOME HOUSING FUND FOR REIMBURSEMENT TO THE STATE DEPARTMENT OF VETERANS AFFAIRS FOR DEVELOPMENT IMPACT FEES IMPOSED BY THE OTAY WATER DISTRICT FOR THE VETERANS HOME PROJECT--On 10/8/96, Council Resolution 18448 and Agency Resolution 1520 were approved adopting the Disposition and Development Agreement between the Redevelopment Agency, the City of Chula Vista and the State Department of Veterans Affairs for the proposed development of the Veterans Home. Section 1.2 of the DDA stated that the City/Agency agreed to pay, waive, or otherwise arrange for the payment of City development impact fees, permit processing fees, and any other development impact or processing fees imposed by the Otay Water District and San Diego County Water Authority for the Veterans Home Project. The construction of the Veterans Home facility is underway with 40% of the project now completed and a grand opening scheduled for April 2000. In order for the Veterans Home to have access to water, the Development Impact Fees need to be paid to the Otay Water District. [Community Development Director] Staff Recommendation: Agency adopt the resolution. AGENDA -2- APRIL 27, 1999 3. DIRECTOR'S REPORT(S) 4. CHAIR(S) 5. AGENCY MEMBER COMMENTS The meeting will adjourn to a closed session and thence to the Regular Redevelopment Agency Meeting on May 4, 1999 at 4:00 p.m., immediately following the City Council meeting, in the City Council Chambers. Unless Agency Counsel, the Executive Director, or the Redevelopment Agency states otherwise at this time, the Agency will discuss and deliberate on the following item(s) of business which are permitted by law to be the subject of a closed session discussion, and which the Agency is advised should be discussed in closed session to best protect the interests of the City. The Agency is required by law to return to open session, issue any reports of final action taken in closed session, and the votes taken. However, due to the typical length of time taken up by closed sessions, the videotaping will be terminated at this point in order to save costs so that the Agency's return from closed session, reports of [inal action taken, and adjournment will not be videotaped. Nevertheless, the report of final action taken will be recorded in the minutes which will be available in the Office of the Secretary to the Redevelopment Agency and the City Clerk's Office. 6. CONFERENCE WITH REAL PROPERTY NEGOTIATOR --Pursuant to Government Code Section 54956.8 1) Property: Assessor Parcel Nos. 565-310-09; 565-310-25 (approximately 6.35 acres located at the northwest corner of I-5 and E Street) Negotiating Parties: Redevelopment Agency (Chris Salomone) and City of San Diego Under Negotiations: Price and terms for disposition 2) Property: Approximately 4 acres at the southeast corner of l-5 and SR-54 Negotiating Parties: City and Redevelopment Agency of Chula Vista (Chris Salomone) and CalTrans Under Negotiations: Price and terms for disposition/acquisition 3) Property: Assessor Parcel No. 562-310-45 (approximately 14.56 acres at the southwest corner of National City Blvd. and C Street) Negotiating Parties: City and Redevelopment Agency of Chula Vista (Chris Salomone) and Wayne Ansley Under Negotiations: Price and terms for disposition/acquisition 4) Property: Assessor Parcel No. 562-321-06 (approximately 10 acres located at the northeast corner of SR-54 and National City Blvd.) Negotiating Parties: City and Redevelopment Agency of Chula Vista (Chris Salomone) and Derr Family Trust Under Negotiations: Price and terms for disposition/acquisition AGENDA -3- APRIL 27, 1999 7. CONFERENCE WITH LEGAL COUNSEL REGARDING ANTICIPATED LITIGATION-Pursuant to Government Code Section 54956.9(b). Contemplated use of eminent domain by the City of San Diego (Metropolitan Waste Water Department or its affiliates) to acquire Agency owned property. 8. CONFERENCE WITH REAL PROPERTY NEGOTIATOR --Pursuant to Government Code Section 54956.8 Property: 340-368 Bay Boulevard (5 parcels totaling 3.65 acres): 567-022-35 340 Bay Boulevard 1.02 acres 567-022-17 350 Bay Boulevard 0.65 acres 567-022-31 360 Bay Boulevard 0.73 acres 567-022-33 364 Bay Boulevard 0.63 acres 567-022-28 368 Bay Boulevard 0.62 acres Negotiating Parties: City/Redevelopment Agency (Chris Salomone); San Diego Unified Port District; B.F. Goodrich Under Negotiations: Purchase/lease terms and conditions REDEVELOPMENT AGENCY AGENDA STATEMENT ITEM ~ MEETING DATE 04/27/99 ITEM TITLE: RESOLUTION / ~ ~ APPROPRIATING ONE HUNDRED FIFTY SIX THOUSAND SIX HUNDRED SEVENTY FOUR DOLLARS ($156,674) FROM THE UNAPPROPRIATED BALANCE IN THE LOW AND MODERATE INCOME HOUSING FUND FOR REIMBURSEMENT TO THE STATE DEPARTMENT OF VETERANS AFFAIRS FOR DEVELOPMENT IMPACT FEES IMPOSED BY THE OTAY WATER DISTRICT FOR THE VETERANS HOME PROJECT SUBMITTED BY: OPMENT DIR~r~O[~ d.~ REVIEWED BY: S VOTE: YES X NO ) On October 8, 1996 Council resolution 18448 and Agency resolution 1520 was approved adopting the Disposition and Development Agreement between the Redevelopment Agency, the City of Chula Vista and the State Department of Veterans Affairs ("State") for the proposed development of the Veterans Home. Section 1.2 of the DDA stated that the City of Chula Vista/Redevelopment Agency agreed to pay, waive, or otherwise arrange for the payment of City development impact fees, permit processing fees, and any other development impact or processing fees imposed by the Otay Water District and San Diego County Water Authority for the Veterans Home Project. With the Veterans Home under construction, the Otay Water Distdct needs to install the water meter system to service the Veterans Home site. In order for the mefedng system to be installed, the City needs to pay the annexation fees to the Otay Water District. The payment of these fees is the first step necessan/for the Otay Water District to service the Veterans Home facility. The development impact fees include the following: 1) installation fees; 2) water meter fees; 3) capacity fees; 4) San Diego County Water Authority fees, and 5) annexation fees. These fees total approximately $420,000. That the Redevelopment Agency approve the resolution appropriating $156,674 from the unappropriated balance in the Low and Moderate Income Housing Fund for reimbursement to the State Department of Veterans Affairs for Development Impact Fees imposed by the Otay Water Distdct for the Veterans Home Project. Not Applicable. PAGE 2~ ITEM,.__.~ MEETING DATE 04/27/99 The construction of the $34 million Veterans Home facility is well underway with 40% of the project now completed and a grand opening scheduled for April 2000. In order for the Veterans Home to have access to water, the Development Impact Fees need to be paid to the Otay Water District. The following chart delineates the Development Impact Fees. Installation $60.00 $2,160.00 480.00 $2,700.00 Meter Fee $39.00 $4,275.00 $950.00 $5,264.00 Capacity Fee $2,752.38 $198,171.36 $44,048.08 $244,961.82 SDCWA Fee $1,585.00 $74,178.00 $0.00 $75,763.00 Annexation Fee $1,024.00 $73,733.76 $16,385.28 $$91,143.04 Grand Total $419,831.86 In an effort to obtain some relief from these fees, Mayor Horton sent a letter to the Otay Water Distdct Board of Directors requesting a waiver of reduction of these fees. The initial response to this request was that no fee waiver or reduction could be granted because the waiver of the fee for this project would require other water users to make up the difference. This would in essence impose a special tax which could exceed the distdct authority and thus set a precedent allowing other water users to request the same kind of waiver. Over the past two months, City and Otay Water Distdct staff have explored alternative methods by which to provide some relief to the City's obligation to pay the fees. Based on these discussions, staff recommends that the Veterans Home Otay Water District Development Impact Fees be paid as follows: 1) Pay $156,674 as a down payment. This amount would be reimbursed to the State which has paid this amount to the Distdct to cover the initial costs to install four domestic water meters in order to ensure water is delivered to the site within the project construction schedule. 2) Balance of approximately $264,000 to be paid by the City within a 10 year pedod based on annual equal installments adjusted by the Engineer News Record (ENR), the industry Pdce Index. The ENR index has been averaging between 3% to 4% over the past 10 years. Based on this formula, the annual payment is estimated at $27,200. 3) City shall have the right to pay off the balance owed pursuant to the agreement at any time. On March 24, 1999 this item was reviewed by the Otay Water District's Board of Directors and was approved as outlined above. In addition, the Board agreed to reserve the right for the City to continue to explore legal mechanisms to justify a reduced fee amount. This issue is being researched by the City Attorney's Office and the Planning and Building Department. Staff is requesting the Redevelopment Agency approve appropriating the $156,674 down payment. A deferral agreement has been prepared by the Otay Water District and is currently under review in the City Attorney's Office. Upon approval of the City Attorney, staff will retum to the Redevelopment Agency for approval of the deferral agreement. PAGE 3, ITEM__~,.- MEETING DATE 04/27/99 The total fees to be paid for the development impact fees imposed by Otay Water Distdct are estimated to be $420,000. Funds to pay the $156,674 reimbursement to the State Department of Veterans Affairs for the Otay Water District Development Impact Fees are available in the Low and Moderate Income Housing Fund which currently has a balance of $5.5 million. The balance of the fee (deferred amount of approximately $263,000) will be addressed in a deferral agreement to be brought back to Council. The total City contribution to the Veterans Home Project is approximately $4 million which is comprised of a land contribution and the payment and waiver of development impact fees. (JA) H;/HOME\COMMDEV~STAFF REF~/vetpmnt. 113 [April 21, 1999 (2:33PM)] RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APROPRIATING ONE HUNDRED FIFTY SIX THOUSAND SIX HUNDRED SEVENTY FOUR DOLLARS ($156,674) FROM THE UNAPPROPRIATED BALANCE IN THE LOW AND MODERATE INCOME HOUSING FUND FOR REIMBURSEMENT TO THE STATE DEPARTMENT OF VETERANS AFFIARS FOR DEVELOPMENT IMPACT FEES IMPOSED BY OTAY WATER DISTRICT FOR THE VETERANS HOME PROJECT WHEREAS, on October 8, 1996 Council resolution 18448 and Agency resolution 1520 was approved adopting the Disposition and Development Agreement between the Redevelopment Agency, the City of Chula Vista and the State Department of Veterans Affairs for the development of the Veterans Home; and WHEREAS, section 1.2 of the Disposition and Development Agreement ("DDA") states that "at no cost to the State, the City/Agency agrees to pay, waive, or otherwise arrange for the payment or waiver of [a] any and all City development impact fees and permit processing fees imposed against the Veterans Home Project, [b] any and all Otay Water District and San Diego County Water Authority development impact and permit processing fees lawfully imposed against the Veterans Home Project, and [c] any and all school fees lawfully imposed against the Veterans Home Project"; and WHEREAS, the State Department of Veterans Affairs has requested the City/Agency to pay $420,000 for annexation fees imposed by the Otay Water District to the Veterans Home Project for twelve water meters to be installed on the site. The development impact fees include the following: 1 ) installation fees; 2) water meter fees; 3)capacity fees; 4) San Diego County Water Authority fees; and 5) annexation fees; and WHEREAS, the State has already paid $156,674 to the Otay Water District and has requested that the Agency reimburse such monies pursuant to the DDA: and WHEREAS, the Agency has previously found that pursuant to California Health and Safety Code Section 33334.2(g) that the expenditure of Low and Moderate Income Housing funds for the development of the Veterans Home, will be of benefit to the Agency project areas even though the Project is to be located outside the City's development project areas by housing Iow and moderate income veterans, creation of jobs in the project area and elsewhere in the City, and through the policies served by dispersing affordable housing throughout the jurisdiction rather than clustering it all in one area, and that, to the extent possible, use restrictions on the project have been imposed to ensure the continued affordability of the project to Iow and moderate income residents NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of Chula Vista does hereby ratify its Health and Safety Code findings under Section 33334.2(g) and appropriate $156,674 from the unappropriated balance in the Low and Moderate Income Housing Fund to be used for reimbursement of $156,674 from the City to the State Department of Veterans Affairs for partial payment of water fees to the Otay Water District for the installation of four domestic water meters Ch-ris Salomone ~' J/hn M"7~heny ,, , ~ k~ ~ Director of Community Development Ag_~ncy~rney ~...__~\,.~.] [(ENTER AUTHOR'S iNITIALS) M:/HO M E/COM MDEV~RESOS/NAM E YOUR DOCUMENT (April 22 1999 (12:44PM)]