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Home My WebLink Aboutrda min 1989/05/23 MINUTES OF AN ADJOURNED I.IEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA, CA Tuesday, May 23, 1989 Council Chamber 10:34 p.m. Public Services Building ROLL CALL PRESENT: Chairman Cox, Members Nader, Malcolm, McCandliss and Moore ABSENT: None ALSO PRESENT: Assistant Director Asmus, City Attorney Harron 1. APPROVAL OF MINUTES MOTION MSUC (Moore/Nader) to approve the Minutes for the Regular Meeting of May 4, 1989. Agency Members concurred that items 2 and 3 will be considered together. 2. WRITTEN COMMUNICATIONS a. Letter from Alvin Malnik, The Ranch, 8780 Horseshoe Lane, Boca Raton, FL, regarding Fifth Avenue and "H" Street - Northeast Corner 3. STATUS REPORT: Redevelopment of the Northeast Corner of Fifth Avenue and "H" Street - Redevelopment Coordinator Kassman reported staff, with assistance from TOPMARK, Inc. and real estate professionals, have reassessed the proposals to redevelop 8.9 acres on the northeast corner of Fifth Avenue and "H" Street and it is recommended the City negotiate further with Scripps Memorial Hospital for the redevelopment of the site predicated on the conclusion it would be difficult to attract a major supermarket to the site. Staff's analysis further shows that the Hospital's revenues would be competitive with staff's assumptions of the taxable status of the proposed medical office building and parking garage as proposed by the hospital. Staff recommends an exclusive negotiation agreement be brought to the Agency Members for review outlining the terms and conditions for redevelopment of the site and setting time limitations for performance on the part of the hospital. MINUTES 2 May 23, 1989 Subsequent to this recommendation, staff received a letter from Mr. John Champion, Champion Development Company, 100 Oceangate (Suite 600), Long Beach, CA 90802, proposing to joint develop the -- site by a 60,000 square foot promotional center and allowing 4 acres for the hospital to develop. The letter was received this date and staff will analyze and bring back the proposal; the promotional center as proposed would reduce the subsidy required to a total of $1.7 million, as opposed to $3.5 million. Staff also received a letter from Legal Counsel for ARBY'S in protest of the proposed redevelopment. President Jeff Bills, Scripps Memorial Hospital Chula Vista, reported agreement of the officials and doctors of Scripps' for approval of the recommendation of staff and reemphasized the Hospital's long term commitment to the City. Chairman Cox clarified and Mr. Bills stated agreement for the Hospital, if the Agency accepts the staff recommendation, there would be no Agency subsidy and there would be fully reimbursable costs for acquisition for relocation and for good will in regards to this particular proposal. Agency Members' discussion centered on the concern of the youth-serving functions located on this property and, to assure responsibility be taken for continuation of the businesses on that property or at other locations, Member McCandliss suggested the acquisition be contingent on the successful, relocation of those businesses. Member Malcolm reported that Mr. Bills is aware that at the present time efforts are being made to relocate those facilities. Charles Harmon, 14981 Driftwood Creek Road, E1 Cajon, CA 92020; Vice President of RTM NEST, INC. 300 S. Pierce Street {#204), E1 Cajon, Franchisee of ARBY's, reported that Arby's received no notification of this meeting, 21 years is left on their present lease and they have no intention of leaving the present site. He stated relocation of a fast food restaurant with a drive-in is not an easy task and the Agency was requested to give consideration to a business who has been a part of the community for nine years. Mr. Harmon agrees the hospital needs to expand but the current tenants, hospital and the City can work together to come up with something for the benefit of all. Donald Penn, Vice President of Readi Care, reported the firm's consternation at the news of the proposed redevelopment; they want very strongly to remain where they are, feel they have taken care of the business, have served the community well and cannot find a location to fit their business better than Fifth and "H." Phil Oberhansuey, 1200 Prospect Street, Suite 575, La Jolla 92037, Attorney with Gray, Cary Ames & Frye representing Readi Care, Inc. which has a leasehold interest on a portion of the site reported the Readi-Care business as thriving and providing an important function. The site is not blighted and, if development plans are implemented without the inclusion of Readi Care, the City of Chula Vista will be losing an important affordable, walk-in medical care. MINUTES 3 May 23, 1989 Wayne Wencke, P.O. Box 95, Rancho Santa Fe CA 92067; representing McCredie/Peltier/Wencke; Partner for the Master Ground Lease of the Retail Center N.E. c/o Fifth and "H" Street, presented the Agency with his objection in letter form. He, as representative of three separate entities on the entire master ground lease, objected to not being noticed and invited to participate and requested a continuance for another 60 days rather than entering into an exclusive negotiation agreement with the hospital. The subject Plan includes, as a fundamental tenant, that all property owners be included in the process and that has not happened. Several issues are unresolved such as relocation of tenants who have subleases; all of the facts need to be addressed for a much more informed, positive, productive decision to clear up all the issues. Member McCandliss questioned and Coordinator Kassman confirmed that, as many property owners as could be reached, were notified business owners have been contacted. The agenda statement was "fax'd" as notice last Friday evening to those who are here at the meeting. Mike Clark, 2148 Broadway, San Diego, CA 92102, Attorney representing Alvin Malnik, who is indicated as having 77 years left on his lease of 8.4 of the 8.9 acres under discussion. Mr. Malnik is in favor of the City proceeding with the hospital at this time. Coordinator Kassman ~larified the exclusive~negotiation agreement would expire in six months and, within" such time, certain performances would be met such as the property acquisition would occur or other actions would take place to keep the agreement alive or to permit the continuance of that agreement. It is Mr. Kassman's expectation that 30 to 45 days would be sufficient to negotiate the terms of the agreement. Mr. Clark stated for Mr. Malnik that they would have no objection to this. MOTION MS (Malcolm) to accept staff's report and recommendation. Member McCandliss, as Subcommittee Member for the Agency with Chairman Cox for the Agency, stated the options were stated clearly; the outcome of the environmental review and the traffic study are the only other concerns. AMENDMENT TO THE MOTION IlS (Nader/McCandliss) to add that the Hospital would be responsible for the successful relocation or incorporation into the project of the youth-serving business, i.e., the skating rink and the theater. VOTE ON THE MOTION AND THE AMENDMENT Passed unanimously. MINU~ES 4 May 23, 1989 Chairman Cox announced that the Redevelopment Agency has always' required that everyone have full access to the information and requested staff to include the attendees present at this meeting to be included on the mailing lists for future information. This item will come back in a 30 to 45 day period of time concerning the specifics of the exclusive negotiation agreement. MOTION MSUC (Cox/Malcolm) to direct staff to prepared a written communication to Mr. Malnik indicating to him the action taken tonight by the Agency. 4. ORAL COMMUNICATIONS None 5. DIRECTOR'S REPORT Assistant Director Asmus distributed materia~ prepared on the Bayfront Traffic Studies and Economic Feasibility for your Meeting of May 25. 6. CHAIRMAN'S REPORT None 7. MEMBERS' COMMENTS None ADJOURNMENT AT ll:20 p.m. to a Regular Meeting of Thursday, May 25, 1989 at 4:00 p.m. ~n/~n,-Fortune, CMC '~ ~DEPUTY CITY CLERK