HomeMy WebLinkAboutrda min 1989/02/28 MINUTES OF A SPECIAL MEETING OF THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA, CALIFORNIA
Tuesday, February 28, 1989 Council Chambers
9:58 p.m. Public Services Building
ROLL CALL
PRESENT: Chairman Cox, Agency Members McCandliss, Nader,
Malcolm and Moore
ABSENT: None
ALSO PRESENT: City Manager Goss, Assistant City Manager Asmus;
City Attorney Harron
a. RESOLUTION 998 RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF CHULA VISTA AUTHORIZING
EXTENSION OF OPTION WITH CHULA VISTA
INVESTORS FOR MITIGATION CREDITS IN THE
BAYFRONT PROJECT AREA
On August 23, 1988, the Redevelopment Agency entered into a loan
land option agreement with Chula Vista Investors (CVI), The Agency
agreed to make a loan of $4,300,000 to facilitate CVI's
acquisition of the mid-bayfront parcel and mitigation credits. As
part of the Agreement, the Agency was provided an Option and Right
of First Refusal on the mitigation credits. The initial Option
expires on March 1, 1989, provided, however, that the term of the
Option may be extended for three additional periods of six months
each. Staff recommended the Agency authorize the extension of the
Option for mitigation credits for a six month period to September
1, 1989.
If the Agency exercises its Option, the price per mitigation
credit is the lesser of $40,000 or the appraised value. Assuming
the Agency will not exercise its Option unless the m~tigation
credits can be sold by the Agency at a price equal to or greater
than the Option price, then the fiscal impact will be none or
positive.
As for the Option price, if no mitigation acres are purchased
during a six month period, then the cost to the Agency is $64,000
in interest accrual. This amount is offset against the $172,000
owed by CVI to the Agency as interest on the acquisition loan
every six months.
MINUTES - 2 - February 28, 1989
MEMBER MALCOLM OFFERED THE RESOLUTION which was read by title, the
reading of the text waived by unanimous consent and approved
unanimously.
2. ORAL COMMUNICATIONS None
3. DIRECTOR'S REPORT None
4. CHAIRMAN'S REPORT None
5. MEMBERS' COMMENTS
MEMBER McCANDLISS
MOTION
MS (McCandliss/Nader) that the Agency schedule a Redevelopment
Workshop to review the progress of the Bayfront Plan to see what
reports are coming back and to have another opportunity to look
at what is or is not present and to provide more direction to
staff.
Member Nader stated, before the meeting was held, it would be
advisable to include the Members of the Sub-Committee so that
there would be an informal discussion prior to the subject
coming to a full Council. Member McCandliss' concern is
that the Agency will find itself up against another deadline.
VOTE ON THE MOTION
Motion carried unanimously.
ADJOURNMENT AT 10:04 p.m. to the Regular Meeting of March 2, 1989
at 7:00 p.m. in the Council Conference Room.
nnle M. Fulas ~