HomeMy WebLinkAboutrda min 1989/03/16 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF
THE CITY OF CHULA VISTA, CALIFORNIA
Thursday, March 16, 1989 Council Conference Room
4:10 p.m. City Hall
ROLL CALL
MEMBERS PRESENT: Members McCandliss, Nader and Moore; Chairman Cox arrived at 5:45 p.m.
MEMBERS ABSENT: Member Malcolm
STAFF PRESENT: Assistant City Manager Asmus; Acting Community
Development Director Gustafson; Redevelopment
Coordinator Kassman; Agency Attorney Harron; and
Deputy City Manager Morris
1. APPROVAL OF MINUTES - 2/28/89 and 3/2/89
MSUC (McCandliss/Moore) approve the minutes of 2/28/89 and 3/2/89 as
submitted. (The vote was 3-0; Chairman Cox was not present for the vote.)
2. WRITTEN COMMUNICATION
a. Letter from James Wirth, Chairman - InnSuites International Inns &
Resorts, Inc., dated 3/2/89 regarding the hotel site at E Street/
Interstate 5, northeast corner
Assistant City Manager Asmus reported that the Agency made a decision to seek
new proposals for development of this site. The Agency Attorney has advised
that the Agency is within its legal rights.
Responding to Member McCandliss' questions, Redevelopment Coordinator Kassman
reported that in approximately December 1987, a Request for Proposals was
issued for this site. InnSuites was designated as the developer in January
1988. InnSuites was given the opportunity to enter into an Exclusive
Negotiation Agreement, however, InnSuites wanted to wait until the site could
be defined and they were assured that the Agency had firm control of the
site. The Agency never entered into an Exclusive Negotiation Agreement with
InnSuites.
Member McCandliss pointed out that with the process that was recently
established to reissue a Request for Qualifications {RFQ), InnSuites would
have the chance to compete again. Mr. Kassman stated that in a recent meeting
with InnSuites representatives, they indicated they would be willing to
participate in a RFQ process again, however, they requested that they have a
guaranteed second position. If they lost in the RFQ process, they would like
to be guaranteed the second position in the event the person who won the RFQ
process could not follow through.
Redevelopment Agency Minutes -2- March 16, 1989
MSUC (McCandliss/Moore) accept staff recommendation; acknowledge the letter
and encourage InnSuites to submit a proposal during the RFQ process. IThe
vote was 3-0; Chairman Cox was not present for the vote.)
CONSENT CALENDAR IItems 3 through 6)
Consent Calendar items 3 and 6 were trailed pending arrival of a fourth Agency
member.
Consent Calendar items 4 and 5 were pulled from the Consent Calendar.
END OF CONSENT CALENDAR
7. ORAL COMMUNICATIONS
Mr. Charles Costa, operator of the Chula Vista Visitors' Information Center,
introduced Tim Marshall of Unified Investment Services. Mr. Marshall stated
he has been looking at the site where the bowling alley and trolley station
are located since last November. He believes this is an important gateway to
the City of Chula Vista. His associate, Juan Forteza of Forteza Design Group,
has developed ideas for this site to present to the ~gency.
Mr. Forteza gave a slide presentation of his recent design work for a
developer of a hotel site in Palm Springs. The Palm Springs project will
provide needed public parking in an environment that is pleasant, useful and
beneficial to the economics of the city. Mr. Forteza stated that before doing
any studies for the site in Chula Vista that they are interested in, they want
to talk to as many groups and sources as possible to determine the needs of
the City.
Deputy City Manager Morris commented that City staff received a call from Mr.
Marshall and his representatives some time ago. Staff met with them and
talked about the property, the processes the City uses and the fact that there
is still a viable operation at the site in terms of the Corporation Yard.
Staff reiterated to Mr. Marshall that the process is not fast. Through
written communication, it was indicated that the City was in the process of
negotiating the relocation of the Corporation Yard. Further, other developers
have contacted the City and indicated an interest in this site. Mr. Morris
stated he was concerned that Mr. Marshall might take this as a submittal of a
proposal and that he might believe that this would lead to exclusive
negotiation. That is not the intent of the City.
Acting Community Development Director Gustafson noted staff is in the process
of preparing a Request for Proposals for a study of the highest and best use
of the subject property.
Mr. Marshall stated they are not present to make a proposal. They are present
to indicate their credibility and to state that they are here to listen to the
Agency. The Agency's input as well as the highest and best use study will be
very important for them to know. They want to know what the City/Agency would
Redevelopment Agency Minutes -3- March 16, 198q
like to see at this site and incorporate that into their flexibility and
design creativity. They do not plan to burden the City with any costs
associated with this site. Member McCandliss commented that there has been
some recent developments in the relocation of the bowling alley.
Member Nader noted more parking is needed at the Trolley Station and he would
hope that any future plans would include increased parking.
Member McCandliss stated she would tike an information item for the next
Agency meeting regarding the status of the study for this site and any other
information that may be pertinent.
PULLED ITEMS
4. REPORT: REDEVELOPMENT OF NORTHWEST CORNER OF THIRD AVENUE AND H STREET
During the last two years the Agency has attempted to resolve problems of
inappropriate use and awkward lot configuration in the northwest corner area
of Third Avenue and H Street. The Agency now owns three small formerly
residential use parcels (329, 327, 321 H Street) located to the rear of the
Campbell Building (335 H Street) and the Coldwell Bank Building (323 H
Street), now owned by the San Diego County Credit Union. Plans to develop a
restaurant in this area by the operators of the Corvette Diner are in doubt
because of difficulty in reaching a lease agreement with the owner of the
Jetco Furniture Store. Recently, staff received an offer from the owner of
the Campbell Building to purchase 329 H Street for use as a parking lot,
contingent upon their purchase of 331 H Street. It was recommended that the
Agency authorize staff to begin the process of selling 329 H Street.
Member Nader noted this issue deals with potentially negotiating the sale of
property that was condemned by the City some time ago. In negotiating the
sale of property, does the Agency have the right and/or obligation to discuss
this in Closed Session? Agency Attorney Harron stated the Agency has the
right to do so; they are not obligated to.
Member McCandliss stated she will not vote to support the staff
recommendation. Member Moore also stated he would not vote to support the
staff recommendation.
Assistant City Manager Asmus stated he received a phone call from Chairman Cox
regarding this item. Chairman Cox informed Mr. Asmus that he would like to
urge the Agency to continue this item because he believes selling this
property may be premature.
MOTION
MS (Moore/McCandliss) to table this item.
Member McCandliss noted that the Agency is trying to do consolidation of
properties at this site for redevelopment purposes. She does not want to give
up the properties piecemeal.
Redevelopment Agency Minutes -4- March 16, 1989
The motion passed unanimously. (The vote was 3-0; Chairman Cox was not
present for the vote.)
5. RESOLUTION 1004 FINDING THAT A COMPETITIVE BID PROCESS IS NOT
DESIRABLE FOR THE ASSESSMENT OF SUPERMARKET SITES IN
THE TOWN CENTRE AREA AND APPROVING A CONTRACT FOR THE
ANALYSIS AND ASSESSMENT OF SITES WITHIN THE TOWN
CENTRE AREA
Town Centre area residents have expressed concern about the lack of easily
accessible grocery shopping. Two sites in the Town Centre area may be
suitable for development of a supermarket and require further study. These
are the northeast corner of Fifth and H Streets and the southeast corner of
Fourth and F Streets. This study will assess these sites for suitability of
locating a supermarket shopping center and analyzing the costs of such
development to the Agency. It was recommended that the Agency adopt the
resolution finding that a competitive bid process is not desirable for the
assessment of supermarket sites in the Town Centre area because of the
Agency's need for prompt and timely information, the special knowledge,
experience, and expertise of TopMark, Inc. and approving a contract with
TopMark, Inc., for an amount not-to-exceed $19,000 to assess the suitability
of sites in the Town Centre area for location of a supermarket.
Member Moore stated he has a concern that the contract is with a firm that
originally made a proposal for development of the Fifth and H Street site.
Also, under the Discussion section of the Agenda Statement, it states that it
is "necessary" to employ TopMark. He believes it should say this particular
company or specialist with similar talent.
Member Nader stated the Supermarket Subcommittee {consisting of Members Nader
and Malcolm) met on Monday, March 13, 1989. The Subcommittee believes that
this contract should go to TopMark because TopMark has already done a good
deal of work on this subject working with the Subcommittee. TopMark's past
work with the City has shown that they do top quality work.
Member Moore stated that the study should include what would happen to Garden
Farms Market if a supermarket were to be built within a certain radius of it.
He would like to know why the old Windmill Farms and the old Safeway Store in
the downtown area failed.
Mr. Stephen Delaney, representing TopMark, Inc., was present and responded to
questions. He stated he does not know to what degree the study will deal with
the question of why previous stores failed. They will look more towards what
will make it successful today. TopMark intends to focus on the question of
whether or not a major supermarket will locate in the core area of the city
and will it be viable.
Member McCandliss stated she has a concern that in looking at the downtown
area, it appears to be an "under-served" area with regard to supermarkets.
She would like to know what the problems are that the Agency is trying to
Redevelopment Agency Minutes -5- March 16, 1989
solve in looking for a supermarket site in the downtown. Is the problem that
grocery stores are not easily accessible? Is the problem that Garden Farms is
not being used because the prices are higher? Where are the people in the
downtown area shopping now? In order to make a decision about locating,
subsidizing, condemning, etc., she would like more information on the present
conditions downtown with regard to grocery stores.
Member Nader asked if it would present a problem if this item were to be
continued for two weeks. Redevelopment Coordinator Kassman stated there may
be a problem in that an Owner Participation Agreement for the shopping center
at Fourth and F Street is scheduled to come before the Agency on April 6.
This is one of the sites that is being considered for a supermarket. Leases
for the center are scheduled to expire this year.
RESOLUTION OFFERED BY MEMBER McCANDLISS, the reading of the text was waived by
unanimous consent.
Member McCandliss stated that because of the activity with regard to the
corner of Fifth and H Street, the Agency needs to start on the collection and
analysis of data. There is the possibility at a later time of amending the
scope of work.
Mr. Asmus stated that Chairman Cox raised concerns with him regarding this
item. Also, staff expressed concerns regarding the insurance question in the
staff report. Mr. Gustafson stated that the insurance question has been
resolved.
The motion passed and was approved unanimously. (The vote was 3-0; Chairman
Cox was not present for the vote.)
8. DIRECTOR'S REPORT: None.
9. CHAIRMAN'S REPORT: None.
10. MEMBERS' COMMENTS:
Member Moore noted there was an information item in the packet regarding a
letter from the Downtown Business Association. He would like the matter to
come before the Agency in a workshop format.
Items 3 and 6 were trailed following the City Council meeting of this date.
The Redevelopment Agency recessed at 5:23 p.m.
The Redevelopment Agency reconvened at 6:07 p.m.
3. RESOLUTION 1005 APPROPRIATING FUNDS FOR ACQUISITION-RELATED EXPENSES
ASSOCIATED WITH CERTAIN BAYFRONT PROPERTIES
A settlement was reached in the Cappos lawsuit with the Agency taking
possession of 965 F Street on February 10, 1989. A final decision regarding
Redevelopment Agency Minutes -6- March 16, 1989
the Merziotis litigation has been rendered. Agency Special Counsel advises
that additional legal costs will be incurred in the next several months in
carryin§ out the court's decisions.
The Agency has already incurred legal and acquisition-related expenses in the
amount of the $50,000 originally budgeted this fiscal year. It is estimated
that an additional $50,000 will be necessary to fund all outstanding expenses
through June 30, 1989.
RESOLUTION OFFERED BY MEMBER McCANDLISS, the reading of the text was waived by
unanimous consent, passed and approved unanimously.
6. REPORT: MOBILEHOME SPACE RENT ARBITRATION ASSISTANCE FUND
RESOLUTION 1006 APPROVING "MOBILEHOM£ ' SPACE RENT ARBITRATION
ASSISTANCE FUND PLAN OF IMPLEMENTATION"; ACCEPTING A
GRANT FROM THE CHULA VISTA MOBILEHOME PARK OWNERS TO
ESTABLISH A SPACE RENT ARBITRATION ASSISTANCE FUND;
AUTHORIZING MATCHING FUNDS FROM REDEVELOPMENT AGENCY
HOUSING SET-ASIDE FUNDS; AND APPROPRIATING FUNDS
THEREFOR
On January 17, 1989 the City Council directed staff to investigate the
potential use of the Redevelopment Set-aside Housing Funds to provide
financial assistance to low-income mobilehome residents going through space
rent arbitration under the City's new ordinance. On January 24, staff
reported to Council that such a use of the Redevelopment Set-aside Funds was
allowable. It was recommended that the Agency:
(1) Approve the "Mobilehome Space Rent Binding Arbitration Assistance
Fund Plan of Implementation";
(2) Direct staff to bring the necessary amendment ordinance to Municipal
Code Chapter 9.50 before the Council to increase the owner's share of
arbitration to 75% of the first $750;
(3) Accept a $2,000 grant from the Chula Vista Mobilehome Park Owners to
establish a Space Rent Arbitration Assistance Fund; and
(4) Appropriate $2,000 of Redevelopment Low Income Housing Set-aside
Funds to the Space Rent Arbitration Assistance Fund.
Mr. Gustafson pointed out that a revised resolution was placed before the
Agency. The revised resolution accomplishes all of the recommendations in the
agenda statement.
Responding to Member McCandliss' question, Housing Coordinator Thompson stated
low-income was defined by the income level of $12,000. This is the figure
used by the State for giving a rental rebate in State income taxes. One
comment was received indicating that in cases where there are large families,
$12,000 may not be a high enough income limit. The HUD low income limit for
the Section 8 program is slightly higher and is adjusted for family sizes. If
the Agency members felt this would be a better income guideline, these figures
could be substituted in lieu of the $12,000 figure.
Redevelopment Agency Minutes -7- March 16, 1989
MSUC (Nader/Cox) amend the Plan of Implementation by substituting the HUD
income limits for the $12,000 figure in Section I, Eligibility.
'CHAIRMAN COX OFFERED THE RESOLUTION AS AMENDED, the reading of the text was
waived by unanimous consent.
Mr. Thompson noted that he received other comments regarding the requirement
of attaching income tax returns to determine eligibility.
MSUC (Nader/McCandliss) to amend the Plan of Implementation substituting a
statement "under penalty of perjury" .for the requirement of attaching an
income tax return in Section III, Procedures for Determining Eligibility.
Member Nader commented that he has qualms about requiring low-income people
paying any expense in connection with arbitration. Given that this is the
procedure that exists, staff has done a good job of coming up with a
low-income assistance plan.
VOTE ON THE RESOLUTION
The resolution as amended passed and was approved unanimously.
Mary Francis Click, Chairperson of the Mobilehome Issues Committee was
present. She noted that she could accept the HUD figures pertaining to
low-income levels of income which were substituted in the Plan of
Implementation.
ADJOURNMENT at 6:20 p.m. to Closed Session to discuss the potential
acquisition of property located at 335 Church Avenue Parcel No. 546-334-9
(First Southern Baptist Church, owner).
ADJOURNMENT at 6:25 p.m. from Closed Session to the regular meeting of April
6, 1989 at 7:00 p.m.
Davi Gustafson /
Acting Community Development Director
WPC 4023H