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HomeMy WebLinkAboutrda min 1989/01/19 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, January 19, 1989 Council Conference Room 4:00 p.m. City Hall ROLL CALL MEMBERS PRESENT: Vice-Chairman Nader; Members McCandliss, Malcolm and Moore MEMBERS ABSENT: Chairman Cox STAFF PRESENT: Executive Director Goss, Assistant City Manager Asmus, Acting Community Development Director Gustafson, Redevelopment Coordinator Kassman, Senior Community Development Specialist Buchan, Assistant Agency Attorney Rudolf 1. APPROVAL OF MINUTES - 12/13/88, 12/15/88, and 12/20/88 MSUC (Moore/McCandliss) to approve the minutes of 12/13/88 and 12/20/88 as submitted. (The vote was 3-0; Member Malcolm was'not present for the vote.) The minutes of 12/15/88 were continued to the next Redevelopment Agency meeting for approval. CONSENT CALENDAR (Items 2 through 7) Items 2, 5 and 6 were pulled from the consent calendar. CONSENT CALENDAR ITEMS 3, 4 AND 7 WERE OFFERED BY MEMBER McCANDLISS, the reading of the text was waived by unanimous consent, passed and approved unanimously. (The vote was 3-0; Member Malcolm was not present for the vote.) 3. RESOLUTION 979 APPROVAL OF A CONTRACT WITH HILLIARD LIPMAN AND ASSOCIATES FOR THE APPRAISAL OF THE PROPERTY LOCATED AT 221-225 THIRD AVENUE WITHIN THE TOWN CENTRE I REDEVELOPMENT PROJECT AREA The building located at 221-225 Third Avenue, known as the Leader Department Store, has been vacant for over a year and has become a concern of the Agency and the Downtown Association. Because of the size and condition of this building, it has been difficult to find suitable tenants. The owners have been reluctant to sell this property in the past, but have recently expressed interest in negotiating with the Redevelopment Agency if an acceptable price is offered. In order to establish a value, it will be necessary to have the property appraised. A proposal was received from Hilliard Lipman and Associates to appraise the subject property for the sum of not-to-exceed $3,500. Redevelopment Agency Minutes -2- January 19, 1989 4, RESOLUTION 980 RELEASING LIENS ON ASSESSOR'S PARCEL NUMBERS 568-152-02 AND 03 OWNED BY WALTER AND CHARLENE A. GRANT AND DIRECTING THE CLERK TO RECORD SAME On November 17, 1987 by Resolution 880, the Redevelopment Agency approved lien agreements for two parcels with Walter and Charlene A. Grant for repayment of funds advanced for construction of alley improvements west of Third Avenue between Davidson Street and "F" Street. The Finance Department has received full payment for the remaining balances due the City for the construction of the alley improvements. It was recommended that the Agency approve the resolution which releases the lien agreements. 7. REPORT: ANNUAL REPORT TO THE STATE The State Health and Safety Code, Community Redevelopment Law Section 33080, requires that all redevelopment agencies submit an annual report to the State Controller and Department of Housing & Community Development. The report is to contain the annual audit, a work program, recommendations to the Legislature, a description of activities affecting housing and displacement, and achievements in comparison to the previous year's work program. END OF CONSENT CALE~DAR 8. PRESENTATION ON THE SWEETWATER NATIONAL WILDLIFE REFUGE BY MARC WEITZEL FROM THE U.S. FISH AND WILDLIFE SERVICE Mr. Marc Weitzel, the resident manager of the Sweetwater National Wildlife Refuge, was to make a presentation to the Agency on the status of the refuge and discuss the planned changes in the management and restoration of the wetlands, tlr. Weitzel was not present at the meeting. MSUC /Moore/McCandliss) to trail this item. 9. PRESENTATION: SCHEMATIC DESIGN FOR YOUTH COMMUNITY CENTER On September 13, 1988, the Redevelopment Agency entered into a contract with Wheeler/Wimer/Blackman and Associates to prepare design and construction drawings for the Chula Vista Youth Community Center. The first phase of the design drawings is complete and, before the project progresses further, review and comments by the Agency members was requested. Senior Community Development Specialist Buchan reported the project architect was ill and not able to be present. Using schematic drawings, Ms. Buchan described the proposed project. She reported that there is approximately 9,000 sq. ft. for the gymnasium. The balance of the building would contain a multi-purpose room (one large room which can be split into two); a second activity room which can be utilized as a dance studio; an office; and a storage room. There is also a covered courtyard ~hich is proposed. The Design Review Committee and staff working with the architect felt that the site plan orientation is now a problem because the mass of the building is Redevelopment Agency Minutes -3- January 19, 1989 located in the view corridor coming down L Street. The a~chitect has been asked to reverse the building design with the architectural feature facing the residents and view corridor. Member Moore noted concern with the covered courtyard. He stated he has not seen courtyards utilized to any degree that was successful. Member Malcolm noted concern with direct access to the gymnasium Ipeople walking across the gymnasium with something other than tennis shoes). Also, the bleachers to be added on the two ends of the gymnasium may jeopardize the integrity of the court. The bleachers may be too close to the baskets. Mr. Gustafson responded that the bleachers will be retractable and should not present a problem. Ms. Buchan reported the floor area was increased to accommodate the bleachers. Member McCandliss commented she would rather have more play space in lieu of the rotunda. Also, the building should not be oriented to encourage people to come in right off the street into the gymnasium. She further noted she would like attention given to having uncommitted space that could be sectioned off into offices to use, for example, for a group such as Jobs for Youth, or a small room for the Literacy Program. Member I~alcolm further commented he would rather have a building with too much square footage at the onset because when it is all built out it will be used. Mr. Goss pointed out the open area could be used for future expansion. There is a certain budget to work with and that is a constraint the architect is working within. Member Malcolm stated ~.~r. Gardner indicated that he would like to do the same thing that he did with the new Girls and Boys Club. He was able to bring the project in under budget; free concrete; free steel; etc. Mr. Goss reported that the review of this building will be different in that it will have to be reviewed by the State Architect because it is going to be on school grounds. Member Moore stated he has a problem with wasted space. He wanted to be sure the school was consulted in the design of the building. He wanted to be sure the building is designed to withstand heavy, hard use. Responding to Agency members questions, Mr. Goss stated part of the agreement with the School District indicates that the Parks and Recreation Director and his counterpart with the School District would work out an annual schedule as to the usage of the facility. Member Nader stated he believes it would be advisable to work out regulations regarding use before 9oing much further. Member Nader questioned the need for a Conditional Use Permit for this project. Ms. Buchan stated the underlying zone is R-1 which requires a CUP. Assistant Agency Attorney Mr. Rudolf stated the School District may be exempt from being required to obtain a CUP under the statute. It is his understanding that most other public agencies, whether they are exempt or not under the law, in fact comply with the law and apply to the City for a CUP. Redevelopment Agency Minutes -4- January 19, 1989 Member Nader wanted to be sure the project was not being held up because of the CUP processing. Member Malcolm summarized that the Agency would like to see the open space area reduced. They would like to see, if possible, a room that would be wired for some type of hobby room (build in the flexibility for that use). Member Nader commented he agrees with the previous comments regarding the courtyard, however, it may have a function in terms of being a place where groups of people could unwind after a game. If there is a function that it will serve and if it is the opinion of the service agencies in the community that that would be a higher priority, he would like to leave that open. 10. ORAL COMMUNICATIONS - None. PULLED ITEMS 2. RESOLUTION 981 APPROVING THE EXTENSION OF AN AGREEMENT WITH SAN DIEGO SHIPBUILDING AND REPAIR, INC. FOR LEASE OF PROPERTY AT 980 "F" STREET For the past seven years, Mr. Gurnee, owner of San Diego Shipbuilding and Repair, Inc., has leased Agency-owned property at the foot of "F" Street. The site has been utilized for shipbuilding and other marine and medical-related manufacturing uses. The current lease agreement expires January 31, 1989. Assistant City Manager Asmus commented that the owner of San Diego Shipbuilding, Ted Gurnee, called him from Hawaii on Tuesday, January 17. Mr. Gurnee is upset over staff's recommendation in terms of only extending the lease for 6 months. He asked that the Agency consider extending the lease for a year with also inclusion of a "bail-out" clause on his part if he found another location prior to the year being up. He further asked that if this is not acceptable to the Agency, that the matter be continued, fully recognizing that his present lease expires January 31. He wants to be able to have the opportunity to try to prevail upon the Agency to grant him a year. Responding to Members' questions, Mr. Rudolf stated that if the current lease was allowed to expire, the lease would renew for the existing term of one year. The lease expires on January 31; if a new lease is not signed the Agency should not accept any tender of rent or it will automatically revive the lease. Member Moore noted the lease states that a six month notice must be given to San Diego Shipbuilding to terminate the lease. He has a problem with giving any type of extension. If the Bayfront is going to move forward at the anticipated pace, perhaps no extension should be given. Member Malcolm commented that he would like to raise the rent to $8,000 a month and extend the lease for a year. He does not feel that the property will be needed for at least a year and it will not affect the development of the Bayfront. Redevelopment Agency Minutes -5- January 19, 1989 Responding to Member Moore's questions, Mr. Gustafson stated it was Paul Desrochers' interpretation of the Whiteman case stipulation that there is no requirement for relocation. MOTION MS (Malcolm/Moore) to have as a requirement in the lease that San Diego Shipbuilding remove all of their equipment upon termination of the lease and to leave the property in a clean condition; if the Agency is forced to clean the property, San Diego Shipbuilding would be required to reimburse the Agency. Further, the lease be extended for one year at $8,000 per month. Mr. Asmus questioned if a "bail-out" clause would be included in the lease. ~ember Moore stated San Diego Shipbuilding is making a lease agreement for a year; they do not need to stay for a year but they would be required to pay for a year. The motion passed unanimously. RESOLUTION OFFERED BY MEMBER MALCOLM, the reading of the text was waived by unanimous consent, passed and approved unanimously, Member Moore commented that the agenda statement states that it is recommended that as part of the City's economic development efforts that a new location be found for Mr. Gurnee. Mr. Moore stated he has no problem with assisting but that is as far as he would go. 5. RESOLUTION 982 AUTHORIZING THE AGREEMENT WITH GIRARD FINANCIAL FOR POSTING FUNDS IN LIEU OF RIGHT-OF-WAY DEDICATION FOR OTAY VALLEY ROAD On November 17, 1988, the Redevelopment Agency adopted an alignment for Otay Valley Road between the Animal Shelter and Nirvana subject to further environmental review. That alignment requires shifting the existing centerline of Otay Valley Road to the south, which accommodates the approved Girard Financial site plan on the triangular-shaped property north of the roadway. Girard Financial would like to post funds for the acquisition of the 29,328 square feet of additional right-of-way south of Otay Valley Road that is required to satisfy the dedication requirement included in their Tentative Parcel Map approval. Member Nader noted that when this item previously came before the Agency, it was referred back to staff to offer Girard an indemnity agreement. Is this the same recommendation that was offered before? Principal Community Development Specialist Putnam stated it is the same recommendation. The main issue was the financial feasibility of Girard's project. In the last paragraph on page two of the agenda statement it states "Agency staff has reviewed confidential financial information on the project provided by Girard Financial and concurs that requiring additional funding for right-of-way acquisition may make the project financially infeasible". The confidential Redevelopment Agency Minutes -6- January 19, 1989 financial information was not provided to Agency Members at the request of the developer because it would then become public information. Member Malcolm noted he has talked to the attorney that represents Girard Financial and he is convinced that it is a losing proposition for Girard. He believes staff has protected the Agency to the best that they can short of an indemnity agreement. Mr. Jim Tecca of Girard Financial and Ms. Ann Moore, Attorney representing Girard Financial, were present and addressed the Agency. Ms. Moore stated it is important to bear in mind that if the property is developed the City would be receiving tax increment. The property has already been appraised at $85,000 and the amount that Girard will be putting up is $100,000 so there is a built-in cushion. Also, the $100,000 will be deposited into a bank and will be accruing interest. That interest will 9o towards the acquisition of the property. RESOLUTION OFFERED BY MEMBER MALCOLM, the reading of the text was waived by unanimous consent, passed and approved unanimously. (The vote was 3-0; Member McCandliss was not present for the vote.) 6. REPORT: AUTHORIZATION TO NEGOTIATE A LOAN TO FINANCE A STUDY OF FUTURE NEEDS FOR THE REGIONAL CRIMINAL JUSTICE FACILITIES IN THE SOUTH BAY Proposition A, a measure approved in November 1988 by the voters of San Diego County, authorized an additional levy of a one-half cent sales tax commencing January 1, 1989, for the purpose of funding criminal justice facilities. The legality of Proposition A is being contested in a Riverside Superior Court. Because of this court challenge, the San Diego County Regional Justice Financing Agency, an agency created by Proposition A, has opted not to utilize Proposition A funds that will begin being generated January l, 1989, pending a final court decision on the Proposition's validity. In order not to delay the update of the 1984 Omni Study, the San Diego County Regional Justice Financing Agency requested the Redevelopment Agency to consider advancing the necessary funds as a loan to update the 1984 Omni Study as it pertains to the South Bay Regional Criminal Justice Facilities. Member Nader noted concern that it appears that Chula Vista and the City of E1 Cajon are being asked to shoulder the entire cost which is subject to risk under litigation. The facilities under study serve an entire region, and he questioned why more cities are not being asked to share in the funding. Member Malcolm stated he looks at this as a study that will involve the South Bay Center on Thiro and H Street in regards to the criminal justice system. The people of San Diego voted to approve Proposition A; the City Council endorsed Proposition A unanimously; it is a loan to the County. This is money that will come back to the Agency with reasonable assurance. Redevelopment Agency Minutes -7- January 19, 1989 Motion M (Nader) authorize staff to make the loan but ask staff to draw up appropriate language to add a condition that in the event the lawsuit prevents Proposition A from going forward, that some appropriate contribution back to the City would be made. The motion died for lack of a second. MS (Malcolm/Moore) accept the report. Member Nader stated he will vote yes on the motion solely for the purpose of allowing the study to go forward, however, he expressed his reservations that the Agency is not asking for a contribution in the event the lawsuit is lost. The motion passed unanimously. (The vote was 3-0; Member McCandliss was not present for the vote.) ll. DIRECTOR'S REPORT a. Status Report: Chula Vista Center Mr. Goss noted that there has been a report regarding Chula Vista Center on a regular basis on the Agency agenda. He stated this item will be taken off future agendas because the Center is basically completed. Mr. Goss reported The Limited will be opening a store in the Center early this year. The Community Development, Planning and Building and Housing staff conducted an inspection of the parking lot and related improvements. An inspection notice has been sent to Homart indicating that the lot is unacceptable and must be resurfaced before final approval by the City. Handicapped parking spaces have been added to total the amount approved in the site plan. However, pole signs still need to be installed in most spaces. 12. CHAIRMAN'S REPORT: None. 13. MEMBERS' COMMENTS Member Ilalcolm: a. South Bay Community Services - Relocation/Remodel vs. Acquisition Member Malcolm stated it is his opinion that the City would be best served by trying to acquire an existing property or building for South Bay Community Services versus putting $60,000 into a building that the City will never see money back from. MS (Malcolm/Moore) give staff direction to acquire property/building rather than remodel the G Street site for leasing. Redevelopment Agency Minutes -8- January 19, 1989 Member Moore expressed the same concern. He anticipates this type of service is going to be needed for years. Member McCandliss suggested that property being acquired for parking area in the downtown might first serve the purpose of housing a use such as South Bay Community Services over a certain period. The priority now is to try and get South Bay Community Services relocated. A site that could have the flexibility to house l, 2 or 3 different groups may have value and she would like this included in direction given to staff. Mr. Goss noted that staff has worked very hard ~ith this agency to try and find a location in terms of relocation. He suggested not immediately letting go of the option of remodeling the G Street site for leasing. He would like to focus on a specific project to be sure it would be to the Agency's/City's advantage. With regard to leasing the G Street site, Member Malcolm stated he believes the Agency should be up front with the property owner that it is not the Agency's intent to pursue remodeling the building. Kathy Lembo Schroeder of South Bay Community Services stated they are presently paying rent for the G Street building; there is a deadline of March l0 in order to break the lease. If it is the Agency's direction, they can stop paying rent immediately. Member Nader confirmed it is the intent of the motion to have South Bay Community Services break the lease on the G Street building; they can stay in their present location until another site is located. Member McCandliss commented that because the Agency is taking an aggressive step with this motion, she believes the Agency needs to recognize that South Bay Community Services should be kept at their existing site during the process of locating another site for purchase, etc. The motion passed unanimously. MS (Malcolm/Moore) to have the property located at 428 F Street (Anthony Schools) placed on the next Redevelopment Agency agenda for discussion under Closed Session regarding acquisition. Member Nader suggested adding that staff search for other potential acquisition sites. This was added to the motion. The ;notion passed unanimously. Member McCandliss: a. Installation of public improvements via City/MTDB joint project on Bay Boulevard at F Street. Redevelopment Agency Minutes -9- January 19, 1989 Member McCandliss stated she has been working wi th MTDB to do landscaping on Bay Boulevard. The project consists of replacing an asphalt pavement walkway with a new concrete sidewalk and providing landscaping and irrigation to a small area east of Bay Boulevard. The Soup Exchange has expressed a willingness to tie the landscaping area into their water supply and pay for the maintenance (the north side). MSUC (McCandliss/Malcolm) refer this to staff and give direction to work with MTDB and the affected agencies to implement the 1 andscapi ng/improvements. b. Installation of public improvements in front of four Agency-owned parcels on Bay Boulevard. MSUC (McCandliss/Nader) refer to staff the question of completing public improvements alon§ the property for possible inclusion in the contract for the landscaping and have them consider the appropriateness and bring a report back to the Agency. ADJOURNMENT at 5:52 to Closed Session to discuss: The potential acquisition of property located at: 435 Third Avenue, Parcel No. 568-420-15 (Sarah Smith, owner) 798 F Street (Rados Brothers, Inc., owners - Risi Industries, Inc.) Litigation: Appeals - Assessment Appeals Board proceedings regarding possessory interest charged to Centre City Associates Limited - Commercial for use of Parking Structure in Town Centre I Redevelopment Project Area ADJOURNMENT from Closed Session at 6:45 p.m. to the regular meeting of February 2, 1989 at 7:00 p.m. ~g Co~n~ty Development Director WPC 3951H