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HomeMy WebLinkAboutRDA Packet 2003/01/14 "I declere unrler penalty of perju~ t~at I 8m '~(l'" IImplo'o; b': n r:it'! of Chu!a V,sta '" the . ...",' " ~ ~ Commun ';.' (1:8 ~.',l"-n~ De'.:~3rt.ment and thet ~ this l\ ~".' C', n t"" ht,:lettn Boar~ at tho "5 =.-=-"'= Public _ Ce '., '095 .:.u:i,-""g and at City Halon CHDIl ~1sr;a.ATEI~SIGNED 7rlU. TUESDAY, JANUARY 14, 2003 6:00 P.M. (immediately following the City Council meeting) COUNCIL CHAMBERS PUBLIC SERVICES BUILDING REVISED ADJOURNED JOINT MEETING OF THE REDEVELOPMENT AGENCY I CITY COUNCIL OF THE CITY OF CHULA VISTA CALL TO ORDER ROLL CALL Agency/Council Members Davis, McCann, Rindone, Salas; Chair/Mayor Padilla CONSENT CALENDAR The staff recommendations regarding the following item(s) listed under the Consent Calendar will be enacted by the Agency/Council by one motion without discussion unless an Agency/Council member, a member of the public or City staff requests that the item be pulled 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 Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Action items. Items pulled by the public will be the first items of business. 1. APPROVAL OF MINUTES - December 7, 2002, December 10, 2002, and December 17, 2002 2. JOINT RESOLUTION OF THE REDEVELOPMENT AGENCY AND CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $115.000 FROM UNEXPENDED REDEVELOPMENT AGENCY 2000 TAX ALLOCATION BOND PROCEEDS IN THE MERGED PROJECT AREA FUND AND $115.000 FROM THE AVAILABLE FUND BALANCE IN THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND INTO CAPITAL IMPROVEMENT PROJECT PS 149 FOR ADDITIONAL RELOCATION COSTS FOR THE NEW DOWNTOWN POLICE FACILITY - Council has acted to appropriate a total of $1,750,000 for the Police Headquarters site relocation costs. This appropriation was completely expended during 2002. Settlements have now been reached with all 13 businesses, either through relocation settlement offers or the provision of new business sites. Several final relocation settlements and payments are now pending, as well as attorney costs. In order to proceed with the remaining relocation payments, two additional appropriatIOns for costs associated with the relocation have been deemed necessary. Eligible funds from the available fund balance in the Public Facilities Development Impact Fee Fund are proposed for appropriation into Capital Improvement Project PS 149 for half of the remaining costs ($115,000). The Redevelopment Agency is also requested to appropriate an additional $115,000 from the 2000 Tax Allocation Bond issue, for a total additional relocation appropriation of $230,000. 4/5ths Vote Reauired. STAFF RECOMMENDATION: Agency/Council adopt the resolution. 3. RESOLUTION APPROPRIATING $1,510,000 FROM THE AVAILABLE BALANCE IN THE LOW AND MODERATE INCOME HOUSING FUND FOR FINANCIAL ASSISTANCE TO MAIN PLAZA, L.P. FOR THE DEVELOPMENT AND OPERATION OF MAIN PLAZA - On 8/14/01, the City Council and Redevelopment Agency held a joint meeting and approved loan agreements, the affordable housing agreements, and financial assistance in the amount of $1,510,000 from the Low and Moderate Income Housing Fund to Main Plaza, L.P. The Main Plaza project is located on the northeast corner of Main Street and Broadway within the Southwest Redevelopment Project Area and the Montgomery Specific Plan and is a mixed-use project comprised of 106 affordable multifamily units and 15,000 square feet of retail commercial space. The term of affordability has been set at 55 years. During the close of the fiscal year 2001-02 budget cycle, the previously approved $1,510,000 was not rolled over into the current 2002-03 fiscal year and was returned to fund balance. In order to release the funds to Main Plaza, L.P., the $1,510,000 needs to be appropriated from the available balance in the Low and Moderate Income Housing Fund into the current budget. [Community Development Director] 4/5ths Vote Reauired STAFF RECOMMENDATION: Agency adopt the resolution. ORAL COMMUNICATIONS This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the Redevelopment Agency from taking action on any issues not included on the posted agenda.) If you wish to address the Agency on such a subject, please complete the "Request to Speak Under Oral Communications Form 11 available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record purposes and follow up action. OTHER BUSINESS 4. DIRECTOR'S REPORT 5. CHAIR REPORT 6. AGENCY COMMENTS Redevelopment Agency, January 14, 2003 Page 2 ADJOURNMENT The meeting will adjourn to a closed session and thence to the regular meeting of the Redevelopment Agency on January 21, 2003 at 6:00 p.m., immediately following the City Council meeting in the City Council Chambers. CLOSED SESSION 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 dosed 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 final action taken, and adjournment will not be videotaped. Nevertheless, announcements of actions taken in Closed Session shall be made by Noon on Wednesday following the meeting at the City Clerk's office in accordance with the Ralph Brown Act (Govt. Code ~ 54957.7) 7. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION __ Pursuant to Government Code Section 54956.9(a) Agency vs. Rados Bros. [Case No. GIC734557-1J **************** AMERICANS WITH DISABILITIES ACT The City of Chula Vista, in complying with the Americans with Disabilities Act (ADA), request individuals who require special accommodates to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least 48 hours in advance for meetings and five days for scheduled services and activities. Please contact the Secretary to the Redevelopment Agency for specific information at (619) 691-5047 or Telecommunications Devices for the Deaf /TDD) at (619) 585-5647. California Relay Service is also available for the hearing impaired. Redevelopment Agency, January 14, 2003 Page 3 MINUTES OF ADJOURNED REGULAR MEETINGS OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA DECEMBER 7, 2002 9:00 A.M. Adjourned Regular Meetings of the City Council and the Redevelopment Agency of the City of Chula Vista were called to order at 9:112 a.m. in the Chula Vista High School cafeteria, located at 820 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers: Davis, McCann, Rindone, Salas, and Mayor Padilla (Councilmember Rindone arrived at 9:16 a.m.) ABSENT: Councilmembers: None ALSO PRESENT: City M,mager Rowlands, Assistant City Attorney Googins, and City Clerk Bigelow ORAL COMMUNICATIONS Ed Kravitz, representing San Diego Railroad Partners, spoke regarding the Coronado Branch rail line on the bayfront properties and asked that it be used for transportation purposes only, perhaps to bring tourists into the area. BUSINESS 1. "SHARE YOUR VISION" FOR CHULA VISTA'S MID-BA YFRONT The workshop was the first in a series to give community members and interested organizations an opportunity to provide input regarding the future development of the mid-bayfront property, a 126-acre site located within the Bayfront Redevelopment Project Area. The site is generally north of Lagoon Drive (F Street), west of Bay Boulevard, and east of the Sweetwater National Wildlife Refuge. City Manager Rowlands provided the framework for development of the bayfront, stating that any project must be sensitive to the environment, have public access, be economically feasible, and be a quality project. Mr. Ashok Israni of Pacifica, the developer, acknowledged the concerns of residents regarding the proposed development plans for the property and stated that he hopes to bring back a redesigned, lower density project. Community Development Director Salomone provided a history of the property. Sam Gennawey ofMIG consultants facilitated the meeting, taking comments from the audience on their concerns, values, expectations and visions for the site. Councilmember McCann left the meeting at II :20 a.m. Mayor Padilla recessed the meeting at II :40 a.m. and reconvened the meeting at II :50 a.m. with all Councilmembers present except Councilmember McCann. I-I For the record, the following written communications were received: . a letter from Lois and Dennis Klepin providing their vision for the bayfront . a letter from Susan Walter opposing the "Bayfront Village" development and suggesting alternative uses for the property . a letter from William E. Claycomb, President of Save Our Bay Inc., requesting in-depth study of the likely effects of development on global warming · 71 letters from students of the Sweetwater Union High School District opposing the "Bayfront Village" development . 2 letters from students ofthe Sweetwater Union High School District supporting the "Bayfront Village" development . 265 signatures on flyers developed by the Environmental Health Coalition opposing the "Bayfront Village" development and suggesting alternative concepts for the site Input obtained at the workshop will be compiled and presented at a second workshop to be held on January II, 2003 at 9:00 a.m. at the Norman Park Senior Center. No action was taken by the Council. ADJOURNMENT Mayor Padilla adjourned the meeting at 12:15 p.m. to the Regular Meeting of the City Council and the Adjourned Regular Meeting of the Redevelopment Agency on December 10, 2002, beginning at 6:00 p.m. ~.:1-U~'{'~ Susan Bigelow, CMC, City Clerk Page 2 - Council/RDA Minutes (-J.- 12/07/02 MINUTES OF ADJOURNED REGULAR MEETINGS OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA December 10,2002 6:00 p.m. Adjourned Regular Meetings of the City Council and the Redevelopment Agency of the City of Chula Vista were called to order at 7:03 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. ROLLCALL: PRESENT: Agency/Councilmembers: Davis, McCann, Rindone, Salas, and Chair/Mayor Padilla ABSENT: Agency/Councilmembers: None ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/City Attorney Kaheny, and Deputy City Clerk Bennett CONSENT CALENDAR 1. APPROVAL OF MINUTES of November 12, 2002; and November 26, 2002 Staff recommendation: Agency/Council approve the minutes. 2. AGENCY RESOLUTION NO. 1806, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VSITA APPROVING A PURCHASE AGREEMENT FOR PROPERTY LOCATED AT 201 THIRD AVENUE FOR REDEVELOPMENT PURPOSES AND APPROPRIATING $350,000 FROM THE AVAILABLE FUND BALANCE IN THE MERGED PROJECT AREA FUND FOR REPAYMENT OF OUTSTANDING ADVANCES FROM THE BAYFRONT/TOWN CENTRE 1 PROJECT AREA FUND AND APPROPRIATING $350,000 FROM UNANTICIPATED REVENUES IN THE BAYFRONT/TOWN CENTRE I PROJECT AREA FUND FOR PROPERTY ACQUISITION COSTS The subject parcel, located at 201 Third Avenue, has been vacant for a number of years and became available for purchase this year. The key parcel is located at the northern gateway into the Town Centre I Redevelopment Project Area and Third Avenue shopping district. In order to help ensure that a significant anchor project be developed at this critical intersection, the parcel is recommended for purchase by the Agency to be included in a larger scale project envisioned for the site. The ultimate development ofthe project is yet to be determined but could include an urban mixed-use project of at least two to three stories, a continuation of the "main street" ground floor retail look and feel of Third Avenue, and architectural design inviting visitors into the Third Avenue district. This action will approve the acquisition and provide funding for this purpose. (Community Development Director) Staff recommendation: Agency adopt the resolution. ACTION: Agency/Councilmember Rindone moved to approve staff recommendations and offered the Consent Calendar, headings read, texts waived. The motion carried 5-0. 1-3 ORAL COMMUNICATIONS There were none. PUBLIC HEARINGS 3. CONSIDERATION OF COASTAL DEVELOPMENT PERMIT NUMBER 74 FOR HIGHWAY WORK TO BE DONE BY CALTRANS ALONG INTERSTATE 5 AND STATE ROUTE 54 INVOLVING INSTALLATION OF PLANTING MATERIALS AND IRRIGATION SYSTEMS, DECORATIVE CONCRETE AND ROCK TREATMENTS, AND MAINTENANCE VEHICLE PULLOUTS WITH GORE PAVING The California State Department of Transportation (CalTrans) is proposing to renovate existing plant materials and irrigation systems and to provide maintenance vehicle pullouts and gore pavings along Interstate 5, between E Street in Chula Vista and 24th Street in National City, and along State Route 54 between Interstate 1-5 and Interstate 1- 805. Portions of the project are located within the City Of Chula Vista Coastal Zone within the City's coastal permit jurisdiction. (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. Principal Community Development Specialist Lukes presented the process for the issuance of the coastal development permit. Chair/Mayor Padilla opened the public hearing. With no members of the public wishing to speak, he then closed the public hearing. Agency/Councilmember Salas asked whether the City would have the opportunity to weigh in on the design and color scheme of the proposed artwork. Tom Ham, Project Manager for CalTrans, responded that the proposed project will comprise a Maritime-Eco theme to reflect the saltwater marsh, and he welcomed any comments from the Council and the community. Councilmember Davis asked whether the proposed designs would be graffiti-resistant. Mr. Ham replied that most ofthe decorative mulch and rock would be anchored down, with approximately three inches of loose material that can be raked over in the event of any tagging. Councilmember McCann suggested that the orange color be toned down or replaced with an alternate color. ACTION: Council/Agencymember McCann offered Council Resolution No. 2002-51, and Agency Resolution No. 1807, headings read and texts waived. COUNCIL RESOLUTION NO. 2002-512 AND AGENCY RESOLUTION NO. 1807, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING THE ISSUANCE OF COASTAL DEVELOPMENT PERMIT NO. 74 FOR HIGHWAY WORK TO BE DONE BY CALTRANS ALONG INTERSTATE 5 (1-5) AND STATE ROUTE-54 INVOLVING INSTALLATION OF MAINTENANCE VEHICLE PULLOUTS WITH GORE PAVING The motion carried 5-0. Page 2 COWlcil/RDA Minutes (- cf 12/10/2002 4. DIRECTOR'S REPORTS There were none. 5. CHAIRlMAYORREPORTS There were none. 6. AGENCY/COUNCIL COMMENTS There were none. CLOSED SESSION 7. CONFERENCE WITH LEGAL COUNSEL REGARDING INITIATION OF LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(C) One case. ACTION: Direction was given to staff. 8. CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: Assessor Parcel Nos. 568-044-09 (approx. 0.12 acres); 568- 044-10 (approx. 0.30 acres); 568-044-11 (approx. 0.26 acres); 568-152-01 (approx. 0.13 acres); 568-152-23 (approx. 0.14 acres); 568-132-24 (approx. 0.13 acres); 568-132-25 (approx. 0.13 acres); 568-132-26 (approx. 0.08 acres); 568-132-27 (approx. 0.07 acres) all located on Landis Avenue Public Parking Lots between 299 Landis and 281 Landis Avenue Negotiating Parties: Chris Salomone (Redevelopment Agency) and Pacific Scene (2505 Congress Street, Suite 220, San Diego) Under Negotiations: Instructions to negotiators ACTION: Direction was given to staff. ADJOURNMENT At 8:20 p.m., Chair/Mayor Padilla adjourned the meeting to the Regular meeting of the Redevelopment Agency on December 17, 2002, at 6:00 p.m., immediately following the City Council meeting. ---- Lorraine Bennett, Deputy City Clerk Page 3 CouncillRDA Minutes (-.5 12/10/2002 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA December 17, 2002 6:00 p.m. An Adjourned Regular Meeting of the Redevelopment Agency of the City of Chula Vista was called to order at 7:35 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Agencymembers: Davis, McCann, Rindone, Salas, and Chair Padilla ABSENT: Agency/Councilmembers: None ALSO PRESENT: Executive Director Rowlands, Agency Attorney Kaheny, and City Clerk Bigelow ORAL COMMUNICATIONS There were none. OTHER BUSINESS I. DIRECTOR'S REPORTS There were none. 2. CHAIR REPORTS There were none. 3. AGENCYMEMBER COMMENTS There were none. CLOSED SESSION 4. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(A) Agency vs. Rados Bros. [Case No. GIC734557-1] ACTION: Direction was given to Counsel. ADJOURNMENT At 9:35 p.m., Chair Padilla adjourned the meeting to an Adjourned Regular Meeting of the Redevelopment Agency on January II, 2002, and thence to an Adjourned Regular Meeting of the Redevelopment Agency on January 14, 2003 at 6:00 p.m., immediately following the City Council meeting. - ~~~ ~elow, CMC, City Clerk (-~ PAGE 1, ITEM NO.: d- MEETING DATE: 01/14/03 JOINT REDEVELOPMENT AGENCY / CITY COUNCIL AGENDA STATEMENT ITEM TITLE: JOINT RESOLUTION OF THE REDEVELOPMENT AGENCY AND CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $115,000 FROM UNEXPENDED REDEVELOPMENT AGENCY 2000 TAX ALLOCATION BOND PROCEEDS IN THE MERGED PROJECT AREA FUND AND $115,000 FROM THE AVAILABLE FUND BALANCE IN THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND INTO CAPITAL IMPROVEMENT PROJECT PS 149 FOR ADDITIONAL RELOCATION COSTS FOR THE NEW DOWNTOWN POLICE FACILITY SUBMITTED BY: COMMUNITY DEVELqPMENT DIRECTOR ~~ I..J'\ REVIEWED BY: CITY MANAGER "P4' 4/ST"S VOTE: YES 0 NO D BACKGROUND Council has acted to appropriate 0 tot(] I of $1,750,000 for the Police Headquarters site relocation costs. This appropriation was completely expended during 2002. Settlements hove now been reached with 011 13 businesses, either through relocation settlement offers or the provision of new business sites. Several final relocation settlements and payments ore now pending, os well os attorney costs. In order to proceed with the remaining relocation payments, two additional appropri(]tions for costs associated with the relocation hove been deemed necessary. Eligible funds from the available fund balance in the Public Facilities Development Impact Fee Fund ore proposed for appropriation into Capitol Improvement Project PS 149 for half of the remaining costs ($115,000). The Redevelopment Agency is also requested to appropriate on additional $115,000 from the 2000 Tax Allocation Bond issue, for 0 total additional relocation appropriation of $230,000. RECOMMENDATION Approve the Agency/Council resolution appropriating $115,000 from unexpended Redevelopment Agency 2000 Tax Allocation Bond proceeds in the Merged Proiect Area fund and $115,000 from the available fund balance in the Public Facilities Development Impact Fee fund into Capitol Improvement Project PS 149 for additional relocation costs for the new downtown police facility. 0< -I PAGE 2, ITEM NO.: MEETING DATE: 01/14/03 BOARDS/COMMISSIONS RECOMMENDATION Not applicable. DISCUSSION Relocation of 13 businesses in the commercial property located at the southeast corner of Fourth Avenue and "F" Street has been completed by Redevelopment Agency staff. Among these businesses, several final relocation settlements and payments are now pending. In order to continue, an additional appropriation is necessary to fund negotiated relocation and attorney costs. The additional appropriation of $230,000 had been set based on estimated total costs. The relocation process has been reasonably smooth. All 13 businesses are now relocated and/or accepted settlement offers. The remaining costs are associated with final settlements and pending bills that are expected in the next several weeks. Funding for relocation will continue to be provided by the available fund balance In the Public Facilities Impact Fee Fund and by the 2000 Agency Tax Allocation Bond proceeds. FISCAL IMPACT This action will appropriate $115,000 from the PFDIF fund and $115,000 from the Redevelopment Agency 2000 Tax Allocation Bond proceeds. Funding for other eligible projects from the Public Facilities Development Impact Fund (PFDIF) could be potentially be delayed. Funding for other potential redevelopment and infrastructure projects from Redevelopment Agency 2000 Tax Allocation Bond proceeds can also potentially be impacted. J:\COMMDEV\Estes\ TCI\pdrelocation\Relocotion Appropriation #4 Agency.doc c2-d-- AGENCY RESOLUTION NO. AND COUNCIL RESOLUTION NO. JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROPRIATING $115,000 FROM UNEXPENDED REDEVELOPMENT AGENCY 2000 TAX ALLOCATION BOND PROCEEDS IN THE MERGED PROJECT AREA FUND AND $115,000 FROM THE AVAILABLE FUND BALANCE IN THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND INTO CAPITAL IMPROVEMENT PROJECT PS 149 FOR ADDITIONAL RELOCATION COSTS FOR THE NEW DOWNTOWN POLICE FACILITY WHEREAS, the use of the available fund balalce in the Public Facilities Impact Fee Fund is a suitable funding source for a major public project like the new Police Department facility which will serve the entire City; and WHEREAS, the use of the available funds from the Redevelopment Agency 2000 Tax Allocation Bond proceeds is similarly a suitable funding source for a major public project like the new Police Department facility which will help focus development in the Town Centre I Redevelopment Project Area as well as benefit the entire City; and WHEREAS, the relocation of business tenants from the proposed new Police Department facility is facilitating the redevelopment of an underutilized commercial site and further the cause of downtown revitalization through the development of a major new infill facility; WHEREAS, the new Police Department facility development requires that the City provide a comprehensive package of relocation services, pursuant to State Redevelopment Law, to business tenants that have been displaced by the project; and WHEREAS, the initial appropriations of $1,750,000 are inadequate to accommodate the relocation settlements as proposed and additional funding is required; NOW, THEREFORE, BE IT RESOLVED the City Council and the Redevelopment Agency of the City of Chula Vista does hereby approve a Resolution appropriating $115,000 from the Available Fund Balance in the Public Facilities Development Impact Fee Fund and $115,000 from the Redevelopment Agency 2000 Tax Allocation Bond proceeds into Capital Improvement Project PS 149 for relocation costs for the new downtown police facility. Presented by Approved as to form by Chris Salomone Director of Community Development John M. Kaheny City Attorney J:\COMMDEVlRESOS\pd relocation approp finalceuncil resO.doc ;2-3 PAGE 1, ITEM NO.: .3 MEETING DATE: 01/14/03 REDEVELOPMENT AGENCY AGENDA STATEMENT' ITEM TITLE: RESOLUTION APPROPRIATING $1,510,000 FROM THE AVAILABLE BALANCE IN THE LOW AND MODERATE INCOME HOUSING FUND FOR FINANCIAL ASSISTANCE TO MAIN PLAZA, L.P. FOR THE DEVELOPMENT AND OPERATION OF MAIN PLAZA SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR 1JJl rt, (..t'\ REVIEWED BY: EXECUTIVE DIRECTOR 4/5THS VOTE: YES 0 NO D BACKGROUND On August 14, 2001 the City Council and Redevelopment Agency held a joint meeting and approved loan agreements; the Affordable Housing Agreements; and financial assistance in the amount of $1,510,000 from the Low cmd Moderate Income Housing Fund (LMIHF) to Main Plaza, L.P. ("Developer") for the mixed-used development known os Main Plaza. The project is locoted on the northeast corner of Main Street and Broadway within the Southwest Redevelopment Project Area and the Montgomery Specific Plan and is a mixed-use project comprised of 106 affordable multifamily units and 15,000 square feet of retail commercial space. The term of affordability has been set at 55 years. Of the 106 affordable units there will be 52 two-bedroom units, 30 three-bedroom units, and 24 four-bedroom units. The project will also offer a swimming pool, community room, garages, and social services provided by a local social agency, Casa Familiar. During the close of the fiscal year 2001-02 budget cycle, the previously approved $1,510,000 was not rolled over into the current 2002-03 fiscal year and returned to fund balance. In order to release the funds to Main Plaza, L.P., the $1,510,000 needs to be appropriated from the available balance in the LMIHF into the current budget. RECOMMENDATION That the Redevelopment Agency approve the resolution appropriating $1,510,000 from the available balance in the Low and Moderate Income Housing Fund for financial assistance to Main Plaza, L.P. for development and operation of Main Plaza. BOARDS/COMMISSIONS RECOMMENDATION Not Applicable. -3 - ( PAGE 2, ITEM NO.: MEETING DATE: 01/14/03 DISCUSSION Main Plaza is a mixed-use project incorporating both multi-family housing units ond commercial retail. In Moy of 2001, the California Debt Limit Allocation Committee (CDLAC) awarded Main Plaza, L.P. a bond allocation of approximately $9.0 million. Main Plaza was also successful in receiving 4% tax credits and a $2.5 million Farm Worker grant. Pragress has been made on the project site including clearance activities, relocation of the used car lot along with relocation of the existing residents. All of the financing is in place with the expectation of closing escrow in late-January at which time Main Plaza, L.P. will be requesting approximately one-third of the $1,510,000 to complete the transaction. A ground breaking ceremony is being scheduled for February and the project is expected to be completed by February 2004. FISCAL IMPACT Funds in the amount of $1,510,000 will be appropriated from the available balance in the Low and Moderate Income Housing Fund which currently has a balance of approximately $2 million. Since funding for this project was previously approved, apprapriating the funds will have minimal impact on current operations. J:\COMMDEV\STAFF.REP\Ol.14-03\Main Plaza Re-clppropriation.doc .3-~ RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROPRIATING $1,510,000 FROM THE AVAILABLE BALANCE IN THE LOW AND MODERATE INCOME HOUSING FUND FOR FINANCIAL ASSISTANCE TO MAIN PLAZA, L.P., FOR THE DEVELOPMENT AND OPERATION OF MAIN PLAZA WHEREAS, on August 14, 2001 the City Council and Redevelopment Agency held a joint meeting in which the City Council adopted Resolution No. 2001-271 and the Redevelopment Agency adopted Resolution No. 1744 giving final approval to a Loan Agreement and Related Restrictive Covenants, an Affordable Housing Agreement; and financial assistance in the amount of $1,510,000 from the Low and Moderate Income Housing Fund to Main Plaza, L.P.("Developer"), for the mixed-use development known as Main Plaza; and WHEREAS, the City, the Agency and the Developer have executed the Loan Agreement and Related Restrictive Covenants effective as of August 14, 2001, and such agreement remains in full force and effect in accordance with its terms; and WHEREAS, during the close of the fiscal year 200HJ2 budget cycle, the previously approved $1,510,000 was not rolled over into the current 2002-03 fiscal year and returned to fund balance; and WHEREAS, such funds are legally encumbered pursuant to the Redevelopment Agency's obligation under the Loan Agreement and Related Restrictive Covenants; and WHEREAS, staff is requesting an appropriation of $1 ,510,000 to finance the project known as "Main Plaza"; and 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 3-3 WHEREAS, Developer proposes to construct a mixed use project of 15,000 square feet of commercial retail and a 106 unit multifamily rental development, with 10 units affordable to very low households at 50 percent of the Area Median Income (AMI), 41 units affordable to low households at 60 percent of the Area Median Income (AMI) and 55 units affordable to moderate-income households at or below 120 percent of AMI to be located on the northeast corner of Main Street and Broadway within the Southwest Redevelopment Project Area ("Project"); and NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of Chula Vista does hereby approve appropriating $1,510,000 from the available balance in the Low and Moderate Income Housing Fund for financial assistance to Main Plaza, L.P., pursuant to the Loan Agreement and Related Restrictive Covenants for the development and operation of Main Plaza. PRESENTED BY APPROVED AS TO FORM BY Laurie A. Madigan Director of Community Development John M. Kaheny Agency Attorney 3-Y