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HomeMy WebLinkAboutrda min 1989/02/02 MINUTES OF A SPECIAL JOINT MEETING OF THE CITY COUNCIL/ REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, February 2, 1989 Council Chambers 7:00 p.m. Public Services Buildinq ROLL CALL MEMBERS PRESENT: Chairman Cox; Members McCandliss, Nader, Malcolm and Moore MEMBERS ABSENT: None STAFF PRESENT: Assistant City Manager Asmus, Acting Community Development Director Gustafson, Redevelopment Coordinator Kassman, City Attorney Harron 1. REPORT FROM THE CITY COUNCIL LEGISLATIVE SUBCOMMITTEE REGARDING RECOMMENDATIONS FOR A LEGISLATIVE LOBBYIST In November 1988, the City of Chula Vista solicited bids from qualified firms for legislative representation in Sacramento for the 1989-90 legislative session. The Council/Agency was to interview Mr. D. BrOwn representing Advocation, Inc. Unfortunately, Mr. BrOwn was unable to be present. The Council/Agency did not meet on this item and it is to be rescheduled~ ***THE REDEVELOPMENT AGENCY MEETING BEGAN AT 7:00 P.M. IN THE COUNCIL CHAMBERS*** 2. APPROVAL OF MINUTES - 12/15/88, 1/12/89 and 1/19/89 MSUC {Moore/Cox) approve the minutes of 12/15/88, 1/12/89 and 1/19/89 {Member McCandliss abstained from voting on the minutes of 12/15/89; Member Malcolm abstained from voting on the minutes of 1/12/89; and Chairman Cox abstained from voting on the minutes of 1/19/89 due to absences from the meetings.) 3. SPECIAL ORDERS OF THE DAY a. Presentation by Dr. Robert Penner, Chula Vista Port Commissioner, San Diego Unified Port District Commissioner Robert Penner distributed copies of his report to Agency members. He reported on those funding actions for events or services which were approved by the Port District that pertained to Chula Vista. (1) The South San Diego Bay Winterfest and Boat Parade - $10,000. {2) Funding summer concert at Marina Park - $17,500. {3) Twelfth Annual Agreement for grounds and comfort station maintenance at Marina Bayside Park - $177,160. {4) Agreement for police services on Port property located in Chula Vista - $81,900. Redevelopment Agency Minutes -2- February 2, 1989 Administrative actions included: (1) consented to two subleases involving buildings currently operational at the Marina-RV Park; (2) rental review with Rohr Industries was completed and the new lease was adopted covering a ten-year period from June 1, 1989 to May 31, 1999; (3) consented to subleasing 22,000 sq. ft. of land originally leased at Marina/RV Park for restaurant development; and (4) consent to a two year extension of construction time deadline for Southwest Marine to complete their boat yard marina. Commissioner Penner further reported on construction - maintenance projects. (1) Grading of the land site adjacent to Quay Avenue - $15,050. (2) Refurbishing of the comfort station at the Marina - $2,573. (3) A major decision regarding the excursion boat berthing facility involved the depth of the channel. It will be dredged to 16 feet - $887,892. (4)Approved bids for a comfort station at the terminus of the excursion boat berthing facility. (5) Issued Coastal Development Permit for California Yacht Marina; the Port District will pay 68% of the cost of construction ($762,.000 in the form of rental credits) to stabilize the wall (dredging approaching the revetments could be destabilizing to the walls). (6)A detachment of Harbor Police is now located permanently in the Marina. Commissioner Penner stated that the San Diego Bay Development Study, scope of work and estimate of $96,000 was approved. Finally, as of 12/31/88, the Port has expended $2577500 in preparation for the America's Cup. CONSENT CALENDAR (Items 4 through 10) Items 6, 7, 9 and l0 were pulled from the Consent Calendar CONSENT CALENDAR ITEMS 4, 5 AND 8 WERE OFFERED BY MEMBER NADER, the reading of the text was waived by unanimous consent, passed and approved unanimously. 4. RESOLUTION 983 AUTHORIZING THE AGREEMENT WITH JHK & ASSOCIATES FOR THE PROVISION OF TRAFFIC CONSULTING SERVICES FOR THE BAYFRONT PLANNING AREA AND APPROPRIATING FUNDS THEREFOR In a report to the Agency on December 15, 1988, the need to retain a traffic consultant to assist the City Traffic Engineer in evaluating traffic issues raised by the proposed modifications to the Bayfront Local Coastal Program was identified. It was recommended that JHK & Associates be retained to advise the Agency on the traffic and circulation issues related to the proposed Midbayfront development. Redevelopment Agency Minutes -3- February 2, 1989 5. RESOLUTION 984 ISSUING A CERTIFICATE OF COMPLETION FOR CONSTRUCTION OF SOUP EXCHANGE RESTAURANT AT 285 BAY BOULEVARD In accordance with the Disposition and Development Agreement IDDA) between Bay Boulevard Development and the Redevelopment Agency, Bay Boulevard Development requested that the Agency issue a Certificate of Completion for the Soup Exchange Restaurant located at 285 Bay Boulevard. All line departments reviewed their records and found that the developer met their department's requirements for the project and requirements of the DDA. 8. RESOLUTION 985 ADOPTING NEGATIVE DECLARATION IS-89-54 AND ACCEPTING THE GRANT DEED FOR THE PROPERTY LOCATED AT 311 "F" STREET WITHIN THE TOWN CENTRE I REDEVELOPMENT PROJECT AREA The Agency recently acquired properties located at 281-287 Landis Avenue for the purpose of expanding a public parking lot. The owners of the adjacent parcels to the south, 311 F Street, offered to sell the Agency the rear portion of their property which is currently used as parking. Purchase of this property will enable the Agency to further expand the existing parking lot along Landis Avenue to the rear of the buildings fronting on F Street. In order to close escrow and complete the acquisition, the Agency was required to accept the deed for the property. A negative declaration was issued for the acquisition of this property and development as a public parking lot. END OF CONSENT CALENDAR ll. ORAL COMMUNICATIONS - None. PULLED ITEMS 6. REPORT ON THE STATUS OF THE DESIGN OF THE 1-5/E STREET SOUTHBOUND ON- AND OFF-RAMPS On January ll, 1989, City and Agency staff members met with CalTrans design engineers to discuss the status of the E Street/I-5 southbound on- and off-ramps. At that meeting CalTrans engineers agreed to finalize the design of the southbound off-ramp which included the modification originally requested by the Agency. With that modification, the I-5 southbound off-ramp would terminate at Bay Boulevard and traffic could either go north or south onto Bay Boulevard. A modification in the design was requested so that the Merziotis parcel could be served from Bay Boulevard. It was recommended that the Agency direct staff to request that CalTrans modify the design of the I-5 southbound on- and off-ramps so that an acceptable level of service can be assured when the Midbayfront area is built out inclusive of the Merziotis parcel. Responding to Member Moore's questions, Principal Community Development Specialist Putnam stated CalTrans has been contacted and they have agreed to the modifications. The new property owner and his traffic engineer received a copy of the proposed modifications and because it improves the traffic circulation, they are in support of it. Redevelopment Agency Minutes -4- February 2, 1989 MSUC (Moore/Malcolm) accept the report. Chairman Cox asked when the Agency will be receiving the referral on the ne§otiating agreement for the remaining portion of this parcel. Redevelopment Coordinator Kassman stated it is expected this will be brought back to the Agency at the next meeting. 7. RESOLUTIOI~ 986 APPROVING AN AGREEMENT WITH DAYS OF THE WEST, INC. (DAYS INN MOTEL) FOR THE TEMPORARY USE OF A PORTION OF THE RIGHT-OF-WAY OF BAY BOULEVARD FOR OVERNIGHT TRUCK PARKING. Trucks have been parking overnight along Bay Boulevard between E and F Streets. These trucks belong to truck drivers staying at the Days Inn Motel (225 Bay Boulevard). The motel does not provide parking for trucks on site and there are no facilities in Chula Vista where trucks can legally be parked overnight, off-street. It was recommended that the Agency adopt the resolution and allow Days Inn to use a part of the right-of-way of Bay Boulevard immediately north of the Nature Center parking lot on an interim basis for overnight truck parking, and that the Agency approve an agreement with Days Inn whereby Days Inn will maintain the site and indemnify t~e Agency from all liabilities associated with the use of this site. Member Moore stated he has no objection to the staff recommendation. He commented this has been a problem in the City for years. Something needs to be done to locate a site for trucks or trailers to meet this need. Member McCandliss noted concern that this site (north of the Nature Center parking lot) is the entryway to the City. Unless the trucks are encouraged to park in an orderly manner, there is the possibility that trucks could get off the roadway and park however they want to. In looking through the agreement, she did not see any requirements on how the trucks are to be parked. Mr. ~assman stated it is his understanding in talking with Days Inn that the trucks will be parked in the right-of-way of the road. He stated staff can work out some means to police this and make sure the trucks park in the paved areas. RESOLUTION OFFERED BY CHAIRMAN COX, the reading of the text was waived by unanimous consent. Chairman Cox questioned if other hotel/motel operators in the City have been made aware of the fact that there may be a willingness to make this site available for truck parking on an interim basis. Mr. Kassman stated no other hotel/motel operators in the area have been approached regarding this matter. Member McCandliss commented she is not comfortable in voting on this matter at this time. She feels the issues raised still need to be addressed (making sure the trucks park in an orderly manner on the paved area and the potential use by other hotel/motels). Redevelopment Agency Minutes -5- February 2, 1989 Member Malcolm stated he would be comfortable in voting for this matter if a letter is sent to Days Inn notifying them that this is strictly a very temporary use and the day will come when trucks will not be allowed in this area at all. Mr. Kassman stated it is expected that the CalTrans off-ramp will go under construction later this year. The construction of the off-ramp would trigger the closing of Bay Boulevard so the solution being proposed is very temporary. Staff has indicated they would work with Days Inn to try and locate a permanent solution. What is before the Agency is a lease with Days Inn and the use of that area by other motels/hotels would require some kind of reciprocity from Days Inn. The resolution passed and was approved. IThe vote was 3-2; Members McCandliss and Nader opposed.) MSC (Cox/Malcolm) staff to contact other motel owners and inform them of what the Agency is doing with regard to truck parking for the Days Inn on a short term basis; make the other motel owners aware of the situation to see if they have any needs or utilization of this property under similar circumstances. (The vote was 3-2: Members McCandliss and Nader opposed.) 9. REPORT: DEVELOPMENT PROPOSALS FOR THE NORTHEAST CORNER OF FIFTH .AVENUE AND H STREET The northeast corner of Fifth Avenue and "H" Street, comprising approximately 8 acres, has recently been incorporated into the Town Centre II Redevel'opment Project Area. Three development groups are interested in redeveloping the site. They requested Agency assistance because of the multiple layers of ownership and leasehold interests which complicate site assembly. The Agency was requested to review the proposals, indicate preference for support and authorize the preparation of an exclusive negotiation agreement. Stephen P. Delaney representing TopMark, Inc., one of the proposals submitted, addressed the Agency. TopMark became interested in the Chula Vista downtown area when a subcommittee of the City Council asked TopMark to participate in a meeting with senior citizen groups concerning the lack of a supermarket in the downto~m area. TopMark did research in this regard and came away from the research believing that there is a void in the downtown area for a supermarket and it would be a viable development. TopMark did a lot of research and narrowed the choice for a site to the property at 5th and H Street. They worked with Paul Desrochers, former Community Development Director. TopMark was asked not to contact the property owner or the ground lessee because of the possibility that the hospital would be expanding. TopMark submitted their proposal in very general terms to find out the direction of the Redevelopment Agency. They did not know at the time of submitting the proposal that the hospital had gone beyond studies and were actually going to submit a proposal. They did not know that Champion Development was getting control of the ground lease. Knowing those two circumstances, TopMark offered to put their proposal "on the back burner." Because of their knowledge of the property, TopMark offered their assistance in the decision process. Redevelopment Agency Minutes -6- February 2, 1989 Mr. Kassman reported that the subject parcel was incorporated into the Town Centre II Redevelopment Project Area partly to protect the Agency's investment in the Chula Vista Center, to improve the area surrounding the center, and primarily at that time the thought was that it would be a good site for a supermarket in the downtown area in conjunction with what was thought would be the relocation of the Vons supermarket. Several groups have expresesd interest in this site including TopMark, Champion Development, and Scripps Hospital. In reviewing the proposals, staff was prepared to recommend the hospital's proposal as being the most beneficial to the City of Chula Vista. The reasons are that the hospital brings a complete delivery of health services which enhances the image of the City as a full service urban center and helps to provide services not only to the citizens of Chula Vista but to the citizens of the South Bay. Also, the hospital brings to the downtown area greater professional job opportunities and perhaps will help to attract new residents to the area. Finally, both the hospital and the shopping center proposal will have great impacts on the traffic movement patterns in the area. However, as far as the initial analysis is concerned, the hospital proposal seemed to impact the traffic in the area to a lesser degree than a shopping center will. Mr. Kassman further noted that there are not many sites in the downtown area which can accommodate a supermarket and this is certainly the primary site and may be the only site that comes available in the near future. A number of citizens in the area have expressed a strong desire to have a supermarket located in that area. The Project Area Committee stated their interest was more toward commercial redevelopment of this site than for the hospital expansion. The PAC also recommended that the Agency and staff have more time to consider the proposals and review additional information which might be pertinent. They recommended that staff specifically investigate the possibility of the hospital expanding to the east and also to the north along Fourth Avenue, as an alternative to expanding on the proposed site. Member McCandliss referred to a letter received by the Agency from the Community Advisory Board of Scripps Memorial Hospital. She noted she is a member of the Advisory Board, however, she abstained from the Board's action on the letter other than to highlight the fact to the group that there are some legitimate competing interests regarding this site that they needed to be aware of. Member McCandliss asked if alternative sites for a supermarket have been identified in the downtown area. Mr. Kassman responded no specific sites are available at this time. Alternative sites have been looked for in the past, however, the cost of acquisition and relocation were exorbitant. There are not other sites in the downtown area that he is aware of that are of the size and suitable location that would accommodate a major supermarket. Member Malcolm pointed out there are a number of questions that he would still like to see addressed such as how much land must the hospital have to use; what kind of uses is the hospital planning on putting on the land; are they uses that have to be next to the hospital or are they medical office buildings that could be located elsewhere; is there going to be room to be able to Redevelopment Agency Minutes -7- February 2, 1989 expand the care facilities and be able to have a grocery store and youth facilities still included. He would hope that both entities can be accommodated if it is done and planned properly. Member Malcolm further commented he felt it may have been more appropriate to have the supermarket subcommittee (Members Malcolm and Nader) involved in the process in reviewing these proposals. Member Nader concurred with Member Malcolm's comments. He noted particular concern that the subcommittee was not consulted in the process of this item coming before the Agency. Also of concern is that this is one of the few areas in the City with a group of youth serving entertainment facilities. He wants to know what would be done with these facilities. He also does not see the the grocery needs of downtown Chula Vista addressed in the staff report. Chairman Cox noted there were three letters that the Agency received at this meeting. One letter from Robert Steiner, Vice Chairman of the Community Advisory Board for Scripps Memorial Hospital; a letter from the Law Offices of Michael A. Clark representing one of lessees at this site; and a letter from Champion Development Company proposing another alternative. Jeff Bills representing Scripps Memorial Hospital gave a slide presentation. Mr. Bills pointed out Scripps has been a part of this community for three years. In June of 1986, the hospital then called Bay Nospital, was losing about $250,000 a month. Since that time, Scripps has been able to turn that financial picture around. Since that time, Scripps has purchased over $4 million in new equipment for the facility; spent over $1 million refurbishing the hospital; also added needed new programs such as the new neo-natal care nursery. Mr. Bills further noted that in the last three years the hospital has continued to grow in a positive manner. There are now 700 employees. In terms of utilization Scripps is over-utilized and lack capacity in their facility. They transfer as many as 75 patients a month to other facilities because they are at capacity. The hospital has approximately ll,O00 admissions every year. It is projected there will be 36,000 emergency room visits for this year. They deliver between 380-400 babies every month. Mr. Bills stated the need to correct their facility is the most important thing identified by all parties associated with the hospital. An additional major problem with the facility is that 40% of all patients who require in-patient hospitalization bypass the Chula Vista community and go to other hospitals outside the community for care. Mr. Bills pointed out the emergency department at the hospital is at capacity. It cannot in its present confinement handle more patients. With the news of other emergency facilities that are not able to stay open, the need to be able to care for more becomes even more imperative. This is also true of the radiology department, laboratory and all other support areas of the hospital. Redevelopment Agency Minutes -8- February 2, 1989 The Master Plan for expansion of the hospital includes three key components. First, the parking structure; additionally the hospital expansion and renovation plan which includes the expansion of the hospital's in-patient and out-patient facilities and addressing capacity; also, the need to address the medical office building needs of physicians in this community. Mr. Jim Leary, Brown-Leary Architects, representing Scripps Hospital, pointed out the existing site is approximately 4 acres; the existing facility represents 159 licensed beds. There is a phenomenal volume coming out of a very small facility. He stated it is important to note that the hospital is land-locked. Mr. Leary noted an external problem that exists is the traffic congestion on H Street and on Fourth Avenue. One of the advantages the hospital can offer is the ability to work with neighbors in developing a cohesive medical complex. They can most effectively do that with the redevelopment site wherein they can help the school solve certain problems, namely fire access, additional science classrooms, and access to G Street. Additionally, the hospital can help the school with certain drainage problems that they have. Further, because the medical office buildings that exist along Fourth Avenue, although not )wried by Scripps, fall under the "medical complex" there are certain internal things Scripps can do as master planner that couldn't be done as a series of disparate type uses. Mr. Ames Early, representing Scripps Memorial Hospital, addressed the Agency. He stated Scripps has worked hard on their commitment to the health care needs of this community. They want to continue to develop the hospital to meet the needs of the community over the long term. They cannot do this without an ability to expand the current facility. The only workable direction for this expansion is to the west. Responding to questions, Mr. Bills stated discussions regarding this proposal began with the Redevelopment Agency in approximately January, 1987. Scripps Hospital would encourage a rapid addressing of this issue by the Agency. Member Malcolm commented he has serious problems with this proposal. He does not believe that he could support the entire use of this property for the expansion of the hospital. He is not sure there is an alternate site for a supermarket and he is not sure there are other areas to provide youth facilities. Responding to questions, Mr. B~lls stated the population in this community would support two hospitals of medium size. There is not enough demand projected to need more beds than are currently planned. In looking at the concept of an "Urban Hospital" lexpanding up several stories), it is important to understand the restraints and constraints associated with an Urban Hospital. In the case of Scripps, it would mean it would prohibit any future growth forever. It doesn't address issues such as parking and medical office needs for the future. Redevelopment Agency Minutes -9- February 2, 1989 Chairman Cox asked if under the Scripps proposal if there is any anticipation that there would be a need for Redevelopment Agency assistance or subsidy? Mr. Leary stated that at the present time they are not involved enough with the economics to fully answer the question, however, the anticipation is that no assistance or subsidy will be needed. Mr. John Champion, Champion Development Company, addressed the Agency. Last summer Champion Development Company spoke with Paul Desrochers regarding any sites that might be available for development. At that time, he indicated that the 5th and H Street site would be a suitable property for development and further indicated that it would serve the community's needs if it was indeed anchored with a grocery store. At that time, there was no firm time table as to how this would all come together but he encouraged them to go ahead and work on it. Champion Development then began to negotiate with the fee owner of the property in an attempt to reach an agreement with him so that it would make the development of the property an easier task. Late in the year they were able to reach an agreement with the owner. They notified the Redevelopment Agency and Champion Development was encouraged to make a proposal. Lucky's Stores has indicated a strong interest in locating at this site. In addition, there are two chains (one from the Northwest and one from Arizona) who have indicated an interest. Mr. Champion further stated that when they received the staff report, they realized that the Agency has a policy decision to make. Champion Development decided that perhaps the best course for the comunity would be a complimentary use of this property, both for the hospital expansion and to meet the needs of the downtown community. An alternative site plan has been placed before the Agency in an attempt to show a possible compromise and meet the needs of all the parties involved. Mr. Champion noted they see this site as a retail site. They believe that the grocery store is best for all parties involved. A retail project does allow the ability to relocate the services that the community deems important within the context of the center without changing the center itself. Champion would be prepared to move forward and work with the tenants involved to incorporate them within any project they do. Because Champion Development's joint venture partner is a financial institution, they do have the capability to finance any additional subsidy that may become necessary in order to make this project work. They do not anticipate the Agency having to make a subsidy to the project. Mrs. J.J. Alvarez, 6885 Lipmann St., San Diego, addressed the A§ency. She stated she represents the owner of the 99-year land lease who owns the structures. She stated she was surprised that these negotiations have been going on and they have not known anything about it. They have been working with a recreation facility and plan to do some redevelopment on the site. They asked that this meeting be postponed until the owner and the owner's attorney could be present. Redevelopment Agency Minutes -10- February 2, 1989 Mr. Champion stated they have a master ground lease. Champion has the senior position in the chain of title. Edward Grier, Attorney with Michael Clark's Law Offices, was present. He represents Chula Vista Properties which is the partnership that owns the buildings on the property and they also hold the lease. Mr. Delaney addressed questions regarding the demand for a supermarket. Using an example of Ralph's, he pointed out it was their opinion that there is a market in the downtown core for a supermarket. They were concerned about the fringe of competition (specifically the Advantage Store). Mr. Delaney stated he believes that if a store is put on 5th and H Street, there will not be another store in the downtown core. There are not alternative sites that are easily obtainable. MOTION MS(Cox/Moore) refer this item back to staff to contact the existing lessee of the property, to further evaluate the Scripps Hospital and Champion Development proposals, the joint use proposal; find out what interest the property owner has in developing the property; respond to other questions such as the reference to Lucky's and whether or not they would trade locations. Member Moore commented his biggest concern is that Scripps has come forward with a proposal that they have been working on for more than two years and he was not aware of it prior to this report. He pointed out his concerns are: (1) communications; (2) supermarket site; (3) youth facilities need to be addressed. Member Nader stated he would like to include in the motion a report on an appropriate site for a downtown supermarket and on the options for providing youth services in the area. This was agreeable to the maker of the motion and the second to include as part of the motion. Member Nader also noted his concern about the process involved in these proposals coming before the Agency. He wants to see a more comprehensive report wi th more information that pertains to the overall needs of the community that includes a reflection of the various concerns that have been expressed by the Agency and also that gives all interested parties an opportunity to present their views and their input. He suggested that the supermarket subcommittee be consulted in the course of preparing the report. Member Malcolm commented he would like to see a subcommittee consisting of Member McCandliss and Chairman Cox work on issues involved. He would like a discussion to be held with Community Nospital regarding how this proposed expansion of Scripps Hospital would affect them. He would like two Agency members to be briefed on all the issues concerned and meet with all interested parties in the community. Redevelopment Agency Minutes -ll- February 2, 1989 Member McCandliss stated she wanted to be sure that when staff brings back discussion on the potential for a grocery store downtown, that it is broad enough to include alternative sites. Member Moore commented he believes input should be received from Homart Development Company. One of the primary concerns should be that we do not detract from the success of the Chula Vista Center. Member McCandliss further noted that no matter how well intentioned the Agency may be in trying to balance the needs of all entities, the Agency needs to recognize that there is a very delicate traffic balance in this area. The motion passed unanimously. MS (Malcolm/Moore) to have a subcommittee consisting of Chairman Cox and Member McCandliss work with staff on the particular issues involved with the site at 5th Avenue and N Street. Member Nader noted staff should work with the grocery store subcommittee on the grocery store site issue. Staff should work with the new subcommittee as to developing the plan for this particular site. The two subcommittees would be phased; once the supermarket subcommittee has completed their work, the new subcommittee would begin their work. The motion passed unanimously. The Redevelopment Agency recessed at 9:30 p.m. The meeting reconvened at 9:35 p.m. 10. RESOLUTION 987 APPROVING THE FIRST AMENDMENT TO THE AGREEMENT WITH NINYO & MOORE FOR TOXIC SUBSTANCE EVALUATION ON THE PROPERTIES EAST OF 1-805 AND SOUTH OF OI'AY VALLEY ROAD AND APPROPRIATING $95,240 THEREFOR On December 15, 1988, the Agency entered into an agreement with Ninyo & Moore for the provision of services related to toxic substance evaluation. The intent of staff in recommending that agreement was to have a toxic substance professional available to do initial site assessments for hazardous wastes on properties being considered for acquisition by the Agency. Prior to entering into the original two-year agreement, Ninyo and Moore had been contracted with separately by the Agency to do an initial site assessment and further studies on the properties east of 1-805 and south of Otay Valley Road. The conclusion of Ninyo & Moore following those studies is that subsurface investigations are necessary to accurately characterize hazardous substances that may occur on the properties. Responding to Chairman Cox's questions, Acting Community Development Director Gustafson stated it was conveyed to him by Ninyo & Moore that if the Agency receives the information in Option 1, that it will be all the information needed. No further studies will be required. Options 2 and 3 look at Redevelopment Agency Minutes -12- February 2, 1989 additional test wells in areas that might have been needed if the study that is currently underway by another consultant on the Omar Rendering site were not available. The time frame for completion was well within the time frame for the information needed to proceed with property acquisition within the planning process for the auto park. Mr. Gustafson further reported the Project Area Committee did not take a formal vote on this issue. Informally, three were in favor and one was opposed. RESOLUTION OFFERED BY CHAIRMAN COX, the reading of the text was waived by unanimous consent, passed and approved unanimously. 12. DIRECTOR'S REPORT: None. 13. CHAIRMAN'S REPORT: a. Reconsideration of Resolution 981 Approving the extension of an agreement with San Diego Shipbuilding and Repair, Inc. for lease of property at 980 "F" Street Chairman Cox noted this item was dealt with at the last Agency meeting and he was unable to be at that meeting. MSUC (Cox/Moore) that Resolution 981 be reconsidered. Chairman Cox stated he had no problem with the action taken. However, he expressed concern that he believes the Agency is at a point in time where it is necessary to give more firm direction to Mr. Gurnee and San Diego Shipbuilding and Repair, Inc. He suggested this lease be approved for a year, however, that there be within that one year lease a threshold at six months where there must be a demonstration that there is a viable alternative site for this particular operation. Member Malcolm suggested putting in a "holdover clause" with substantial penalties in the lease. He does not believe that after six months the Agency will want San Diego Shipbuilding to move. MOTION MS (Malcolm/Nader) to have the City Attorney prepare a holdover provision with substantial penalties. Mr. Harron stated that Mr. Gurnee of San Diego Shipbuilding and Repair came to see him on this date. Mr. Gurnee asked that an "escape clause" be added to the lease giving him the option to get out of the lease if he does find another place within the year. Redevelopment Agency Minutes -13- February 2, 1989 Chairman Cox noted he believes there needs to be an emphatic statement made by the Agency that it is not their desire in the long range to see this type of land use at this site. If Mr. Gurnee is successful in finding another site, Chairman Cox would be willing to release him from the lease. Member Malcolm suggested the "escape clause" be a 90 day minimum notice. This was included in the motion. Mr. Ted Gurnee of San Diego Shipbuilding and Repair was present and addressed the Agency. He pointed out his business came to Chula Vista in 1981/82 with the intention of developing a business in the City, hiring employees and being successful. They had the desire to find waterfront access somewhere in the City, building a marina on that site if possible; not to be there on a one to one year lease. They cannot build ships on a short term lease. His business has been successful in the last two years in achieving at this time over $90 million of shipbuilding contract backlog (either under contract or in final negotiations). This reflects 350 - 500 jobs. Mr. Gurnee asked for help in finding another site. He requested that considering the fact it is a short term lease, the unavailability of improvement of the property, the unavailability of doing any serious business there, that the 28% increase in the rent be reconsidered. The motion passed unanimously. MS (Cox/Nader) give direction to staff to work with Mr. Gurnee to first find a site in Chula Vista; barring that, any other sites that might be available for the ultimate relocation of the business. ~ember Nader suggested including in the motion that staff should initially work with this Agency to develop some recommendation as to whether or not a longer term lease might be appropriate. Staff to come back to the Agency with a report on what the lease negotiating stance ought to be well in advance of the expiration of this lease. Chairman Cox stated he would like staff to work with Mr. Gurnee to see if they can come up with a site in Chula Vista. If not, do whatever they can to assist him in the ultimate relocation. The motion passed unanimously. Chairman Cox referred to an information memo to the Agency included in the packet for this meeting concerning the installation of public improvements on four Agency-owned parcels on Bay Boulevard. He would like to include in the contract for the balance of Bay Boulevard the improvements for these four parcels. It would be his intent that whatever appraised value these properties are sold for, the cost for the public improvements be added. He is concerned that if the Agency does not do these improvements and the properties are sold, it is possible the improvements would be lacking for a long period of time. Redevelopment Agency Minutes -14- February 2, 1989 MSUC (Cox/Malcolm) asked that this issue of installin9 public improvements on four Agency-owned parcels on Bay Boulevard come back as a docketed item for the next Agency meeting. 14. MEMBERS' COMMENTS: Member McCandliss commented regarding the parking around the Soup Exchange. The project is very successful and not enough parking was planned. There is a need to get more parking on the Bayfront overall. Parking was considered across the street from the Soup Exchange. Subsequent to that Bay Boulevard was fenced off; there is an improved accessway that is fenced off. She would like to put this item on the Agenda for the next Agency meeting to again look at this to see if there is some way to meet the safety needs in the area but still enhance the use and the pedestrian access from the parking area. MSUC (Cox/Moore) to put this issue of parking needs for the Soup Exchange/ Bayfront be placed on the next Agency Agenda. ADJOURNMENT to Closed Session at 10:25 p.m. to discuss: The Potential Acquisition of Property Located at: 798 F Street (Rados Brothers, Inc., owners - Risi Industries, Inc.) 428 F Street (Security Title Insurance, Co., owners - Anthony Schools) 354 Church Avenue (Miguel A. & Fernandez A. Cardena$, owners) _ Potential Litigation. ADJOURNMENT from Closed Session at ll:O0 p.m. to the regular meeting of February 16, 1989 at 4:00 p.m. 7 Acting Community Development Director WPC 3975H