Loading...
HomeMy WebLinkAboutrda min 1989/04/06 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, April 6, 1989 Council Chambers 7:10 p.m. Public Services Building ROLL CALL MEMBERS PRESENT: Vice Chairman Nader; Members McCandliss, Malcolm and Moore MEMBERS ABSENT: Chairman Cox STAFF PRESENT: Assistant City Manager Asmus; Acting Community Development Director Gustafson; Redevelopment Coordinator Kassman; Agency Attorney Harron 1. APPROVAL OF MINUTES - 3/16/89 MSUC (Moore/McCandliss) to approve the minutes of 3/16/89 as submitted. (The vote was 3-0; Member Malcolm abstained.) 2. SPECIAL ORDERS OF THE DAY a. Ratification of New Member to the Otay Valley Road Project Area Committee (Donald R. Palumbo) MSUC (McCandliss/Moore) for ratification of Donald R. Palumbo to the Otay Valley Road Project Area Committee. CONSENT CALENDAR (Items 3 through 6) Items 4, 5 and 6 were pulled from the Consent Calendar. CONSENT CALENDAR ITEM NUMBER 3 WAS OFFERED BY MEMBER MOORE, the reading of the text was waived by unanimous consent, passed and approved unanimously. 3. RESOLUTION 1007 APPROVING PLACEMENT OF TEMPORARY TRAILERS AT THE NORTHWEST CORNER OF BAY BOULEVARD AND "G" STREET (Rohr Industries) Rohr Industries proposed placing approximately 15,000 square feet of temporary office space within trailer units adjacent to Rohr Building No. 99 located at the northwest corner of Bay Boulevard and "G" Street. The project site is located within the Bayfront Redevelopment Project Area and Coastal Zone and required Agency approval and the issuance of a coastal development permit. It was recommended that the A9ency adopt Negative Declaration IS-89-56 and approve the placement of temporary trailers at the subject site for a period of three years. END OF CONSENT CALENDAR MINUTES -2- April 6, 1989 7. ORAL COMMUNICATIONS: None. PULLED ITEMS 4. a) RESOLUTION 1009 ENTERING INTO AN AGREEMENT WITH FLUID SYSTEMS, A UNIT OF ALLIED-SIGNAL, INC., FOR LEASE OF PROPERTY LOCATED AT 965 "F" STREET, AND AUTHORIZING CHAIRMAN TO EXECUTE SAME b) RESOLUTION 1008 ENTERING INTO A RENTAL AGREEMENT WITH MR. IVO ZANINOVICH FOR PROPERTY LOCATED AT 965 "F" STREET AND AUTHORIZING CHAIRMAN TO EXECUTE SAME On February 10, 1989, the Redevelopment Agency took possession of property owned by James and Elizabeth Cappos at 965 F Street. Fluid Systems has leased the premises for a reverse osmosis plant since 1983. The subject lease will allow continued occupancy of this facility for one year. Mr. Ivo Zaninovich also utilized a portion of this area for storage of office equipment. A rental agreement stipulating a month-to-month tenancy was prepared for this individual. Member Malcolm stated he had a concern regarding the rental agreement proposed for Mr. Zaninovich. Renting the property for ~50.00 per month may not justify the exposure to the City in terms of liability. Mr. Ivo Zaninovich was present and responded to questions. He stated the question of insurance was posed to him by Agency staff. He could not provide any insurance because the trailer is not livable; there is no power or water. It is only storage space. He requested that he be permitted to store his trailer on the site until August, 1989. Assistant City Manager Asmus stated the risk of liability is remote; there is a "hold harmless" clause in the agreement. MSUC (McCandliss/Nader) amend the agreement providing a 150 day maximum lease. RESOLUTION (b) OFFERED AS AMENDED BY VICE CHAIRMAN NADER, the reading of the text was waived by unanimous consent, passed and was approved unanimously. Regarding the agreement with Fluid Systems, Member Malcolm noted concern with the amount of rent proposed in the agreement. He pointed out that an acre of land on the waterfront is not readily available anywhere in the County of San Diego for $1,000 per month. He noted there was not any documentation in the agenda statement regarding fair market value. Redevelopment Coordinator Kassman reported that Fluid Systems is currently using 1600 square feet of covered space. The proposed rental amount would be approximately 63¢ per foot. This is in the neighborhood of what industrial space is currently being rented at; this information is based on recent - appraisals. MINUTES -3- April 6, 1989 RESOLUTION (a) OFFERED BY MEMBER McCANDLISS, the reading of the text was waived unanimously. Member Malcolm suggested that the next time this item is brought back to the Agency that staff look into what the company is deriving out of this use; what they are gaining and what would be a fair market value. He would support staff obtaining the expertise to provide this information. Member Moore expressed concern with liability involved in the use of this site, noting that only a portion of the property is being used. Vice Chairman Nader suggested staff look at the property to determine the necessity for a no trespassing sign on areas of the property. VOTE ON THE RESOLUTION The resolution passed and was approved unanimously. 5. a) RESOLUTION ..... APPROVING AN OWNER PARTICIPATION AGREEMENT WITH THE CHULA VISTA CENTER, A PARTNERSHIP, ROBERT CAPLAN, TRUSTEE, FOR THE RENOVATION OF THE SHOPPING CENTER LOCATED AT THE SOUTHEAST CORNER OF FOURTH AVENUE AND "F" STREET WITHIN THE TOWN CENTRE I REDEVELOPMENT PROJECT AREA b) RESOLUTION lOlO APPROPRIATING $30,000 FOR SITE PLAN AND LAND USE STUDIES OF THE SOUTHEAST CORNER OF FOURTH AVENUE AND F STREET, TOWN CENTRE I REDEVELOPMENT PROJECT AREA The owners of the Chula Vista Center, located at the southeast corner of Fourth Avenue and "F" Street, submitted plans to renovate the Center, improve the parking lot and add a considerable amount of landscaping. The plans were approved by staff and the Design Review Committee and were reviewed by the Town Centre Project Area Committee. The project is categorically exempt from environmental review. It was recommended that the Agency continue this item for one month in order to undertake additional site studies for the expansion and/or reconfiguration of the shopping center to determine the most feasible and functional use of the site. The Agency was also requested to authorize the appropriation of $30,000 from the unappropriated balance of the Bayfront/Town Centre Bond Fund in the event funding is necessary for consultant assistance in undertaking these studies. Mr. Kassman stated that the owners of the center have set all their leases to expire in 1989. They are presently negotiating with existing and proposed new tenants for the center. They are asking for a timely decision on what the preference of the Agency will be. The Agency supermarket-subcommittee did meet to discuss the proposed owner participation agreement. As a result of the meeting, the Agency hired TopMark to do further investigations concerning MINUTES -4- April 6, 1989 the feasibility of a supermarket on this site. Representatives from TopMark are present at this meeting to discuss their findings concerning the possibility of locating a major marke~ on this site. Also, as a result of further discussions with the owner of the property, the alternative recommendation to further explore site configurations was developed and included in the recommendations for this item. Vice Chairman Nader pointed out a written report from TopMark was distributed to Agency members at this meeting. Mr. Robert Caplan, Attorney representing Chula Vista Center, was present and addressed the Agency. He noted that he is not the legal owner but Trustee for the property. He has no financial interest in the center. In reference to the parcel of land (referred to as "the strip") owned by the railroad, Mr. Caplan stated that he made a request some time ago that the Agency acquire "the strip" through eminent domain with the owner of the center supplying the funds to purchase the property. There would then be an economic justification for going through the rehabilitation of the center. The owners of "the strip" decline to sell the property or to consider an extension of the lease. There are now only eight years left under the lease. It is not economically justified to go ahead with a major renovation without having greater control. Mr. Caplan stated they would like to develop what they own and control now. This would avoid any necessity to tear down improvements that are already in place. It would cost millions of dollars and require subsidy. They are not asking for subsidy at all in their current proposal; the renovation/ rehabilitation will be accomplished entirely with private funds. Mr. Caplan also reported all of the leases will expire in 1989. There are negotiations occurring with a major tenant to replace the Canned Food Store. There are many tenants in place. There would be very little disruption with their plan to renovate; rent will not be lost; the center will remain open. They request the permission to go ahead with their plan to renovate the center. Member Malcolm commented that the shopping center building is old and tired. If a face lift is all that is done, it will not be something to be proud of in ten years. He would like to do to this center what has been done to the rest of the downtown. Member Malcolm commented that the tenants would do better with more parking and better access. If it takes redevelopment subsidy to make sure that traffic flows better in and out of the center, to have a better design and higher use, and if it takes the Agency using its power of eminent domain to clear up the problem of the property owned by the railroad, the Agency should hire an architect to come up with different plans. If an architect could be hired quickly and the work completed quickly, it would not put a burden on the owner of the center. MINUTES -5- April 6, 1989 Member McCandliss clarified that it is being proposed that in the thirty days, the Agency will hire someone to come up with additional site plans. If a superior site plan is developed, iso-the owner of the center willing to redevelop the site with Agency assistance as opposed to the Agency moving forward to acquire the site? Mr. Caplan stated this is the basic concept but two elements are involved that are very expensive. It will very likely invol-ve taking some of the Zogob property; this involves joint access or joint easement which is difficult to work out. It will involve tearing down some of the improvements that exist which would be an economic detriment to the owner; this would be a loss that they would ask the Agency to subsidize. Mr. Caplan stated they have been working for 1 - 2 years to get to the point that they are now with their plans for renovating the center. He is concerned that by allowing the thirty day continuance of this item, it will turn into a 6 month to one year process that will end in frustration because of the ultimate economics involved in redevelopment. Mr. Homer Delawie, architect with Delawie/Bretton/Wilkes Associates, AIA, 2827 Presidio Drive, San Diego, gave a presentation of the proposed renovation of the center. He noted that they looked at all options involved in the renovation/redevelopment of the center. Because of the cost involved in tearing down the existing center and redeveloping, it did not work out economically. The rents in Chula Vista are not high enough to off-set the two year loss of income and the overall cost of redevelopment. This is why they are recommending doing a major face lift of the existing center; not expanding the buildings at all. There are 50,000 square feet in the existing center. There are currently 150 parking spaces which does not meet the existing parking standard. They would like to renovate the center and do an excellent landscape plan, as well as improve the traffic access and parking. Mr. Delawie stated that it was felt by City staff that even if the center did not meet the parking standards and landscape standards, the new plan would be an improvement over the existing conditions. Mr. Delawie stated that with the proposed plans they have created an arcade on the front of the building with a tile roof matching the tile and stucco finish on the Civic Center. The existing store fronts would be repainted. As new leases are negotiated the tenant will redo the store front under the arcade. Along the back of the building, landscaping and trellis will be provided. The trash container area will be enclosed. Member Moore commented that he has a problem with using the powers of eminent domain. Member Malcolm commented that hopefully eminent domain will not be needed. If a plan can be developed that will be to the benefit of all because of better circulation for parking, better architecture, this would be his desire. Member Moore stated that as long as all options will be looked into he would not have a problem with appropriating money. MINUTES -6- April 6, 198g Member McCandliss commented that she has been frustrated for years with the current landowner for his lack of interest and lack of cooperation with the City in trying to upgrade the subject'shopping center. She is intrigued with the possibility of working out a layout for the center that would possibly bring some redevelopment Irather than just renovation) with the landowner'$ cooperation. She noted that even ~ith the improvements proposed by the landowner at this time, the plans could be better designed. Member Moore stated he has no problem with the staff recommendation with the caveat that staff work in cooperation with the property owner. Mr. Dick Farrell, President of TopMark, consultants for the Agency, addressed questions concerning locating a supermarket on the site. Their report is based on what a supermarket would require in terms of building size and parking. Landscaping requirements were not consi~dered. The site as it sits, including the Chula Vista Center, the Zogob Office Building, and the railroad piece that is being leased at this time, is not sufficient for a major supermarket. A minimum size for a supermarket is 42,300 square feet. If this size market were to be placed on the subject site, it would be 28 parking spaces short of what the market would require. Mr. Farrell further reported they looked at the 'possibility of a parking structure on the site, however, this would not alter their recommendation. A supermarket generally'wants their parking directly in front of them; they want easy access in and out. This location is not a strong enough supermarket location to support a supermarket with the inconvenience of a parking structure. Member Malcolm stated he would like to see two actions taken at this time. Ne would like to show Mr. Caplan that the Agency is serious about a timeline and that if Resolution (b) is approved, that the Agency direct staff to hire an architect to come back with site plans within thirty days. Secondly, he would like the Agency to appropriate funds to initiate an appraisal on the offer to purchase the railroad property. RESOLUTION (b) OFFERED BY MEMBER MALCOLM, with the caveat that this item be brought back to the Agency in 30 days, the reading of the text was waived by unanimous consent. Member McCandliss questioned the supermarket subcommittee regarding the public meetings held with members of the community. Was the desire for a supermarket an issue of convenience or an issue of lower cost? Vice Chairman Nader stated it was an issue of necessity. Member McCandliss questioned if a smaller independent market might serve the need. Member Malcolm stated they had discussed this with the committee and stated they would bring a report back on this. Mr. Nader stated that selection was an additional need. The resolution passed and was approved unanimously. MINUTES -7- April 6, 1989 MSUC (Malcolm/Moore) direct staff to bring back a resolution to appropriate funds to obtain an appraisal for the railroad property and an appraisal of the entire site. Mr. Caplan requested that when the architect is selected by the Agency that he/she interface with Mr. Delawie. MSUC (Nader/McCandliss) include appraisal of Zogob Office Building. Member Malcolm suggested that the architect contact each of the Agency members for comments and the members of the Project Area Committee for input. Mr. Gustafson stated it will not be necessary for the Agency to go out and hire an architect. The City has an architect under contract. 6. RESOLUTION 1011 TO APPROVE FUNDING FOR CHULA VISTA DOWNTOWN BUSINESS ASSOCIATION ADVERTISING AND PROMOTIONAL ACTIVITIES In December 1988, the Downtown Committee requested Agency funding for an advertising and public relations program to promote major downtown events. At its December 20, 1988 meeting, the Agency directed staff to develcp a more defined work program and budget in conjunction with the Downtown Association for the scheduled events. Funds originally appropriated for the unfilled position of Town Manager will be used for this purpose. It was recommended that the Agency approve the expenditure of $25,000 to fund advertising and promotional activities of the Downtown Association, and authorize these funds to be carried over to the FY 89-90 budget. Mr. Jack Blakely, representing the Downtown Business Association, responded to questions raised by Member Moore. Member Moore asked if there would be any objections to adding a condition restricting the funds to advertising. Mr. Blakely had no objections. Member Moore further asked if it would present a problem if another condition was added stating that promotional events be open to businesses located other than downtown. Mr. Blakely stated they have already begun to do this noting that they have approached the Chula Vista Center on H Street and invited them to the Christmas parade meetings. A number of community groups have been invited to participate in the July festival. MS (Moore/McCandliss) add two conditions to the allocation of Agency funds for promotion to the Chula Vista Downtown Business Association: (1) Funds be restricted to advertising only; and (2) The promotional events will be open to businesses located elsewhere in the City. Member Malcolm noted he would rather leave the funds unrestricted. Member McCandliss commented she does not have a problem restricting the funds to advertising this year. She would like to see a major effort on advertising to get more people to attend the events on Third Avenue. She does have a concern that leasing problems and non-completion issues on Third Avenue are not being addressed. MINUTES -8- April 6, 198g Mr. Blakely stated the proposed amendment to the resolution does not pose any problems for the Downtown Association. VOTE ON THE MOTION The motion passed unanimously. Vice Chairman Nader commented regarding the Spring Festival. He had received a few complaints regarding the military tank that was displayed at the festival. He asked that consideration be given to the possibility it may not be an appropriate display at the time of Easter celebration. RESOLUTION AS AMENDED WAS OFFERED BY MEMBER MALCOLM, the reading of the text was waived by unanimous consent, passed and approved unanimously. 8. DIRECTOR'S REPORT: None. 9. CHAIRMAN'S REPORT: None. 10. MEMBERS' COMMENTS: None. ADJOURNMENT at 8:34 p.m. to Closed Session to discuss the potential acquisition of property located at: Parcel No. 568-420-15 located in the Town Centre I Redevelopment Project Area ISarah SMith, owner); southeast corner of Fourth Avenue and F Street located in the Town Centre I Redevelopment Project Area /Santa Fe Railroad, owner); and 221 Third Avenue IJacob and Herbert Wenig, owners). ADJOURNMENT at 8:55 p.m. to the regular meeting of April 20, 1989 at 4:00 p.m. ~avid Gusti~ Acting Community ~evelopment Director WPC 4047H