HomeMy WebLinkAboutRDA Packet 1995/11/14
Notice is hereby given that the Chairman of the Redevelopment Agency has called and will convene a special
meeting of the Redevelopment Agency on Tuesday, November 14. 1995 at 6:00 p.m.. immediately following the
regular City Council meeting, in Council Chambers, located in the Public Services Building, 276 Fourth Avenue,
Chula Vista, California to consider, deliberate and act upon the following:
Shirley Hort ,Mayor/Chairman
Tuesday, November 14, 1995
6:00 p.m.
(immediately following the City Council meeting)
Council Chambers
Public Services Building
Soecial Meeting of the Redevelooment Agencv of the Citv of Chula Vista
CALL TO ORDER
1. ROLL CALL:
Agency Members Alevy _' Moot _' Padilla_,
Rindone _' and Chair Horton _
2. APPROVAL OF MINUTES:
October 17, 1995
BUSINESS
The following item(s) will be considered, deliberaJed, and acted upon by the Redevelopment Agency. If you wish
to speak to any item described in the Agenda before or during consideration of that item, please fill out the
"Request to Speak Form" available in the lobby and submit it to the Secretary of the Redevelopment Agency or
the City Clerk prior to the meeting. The uublic mav onlv address the A!!'encv on Closed Session items urior to
the A!!'encv convenin!!' the Closed Session. (Complete the green form to speak in favor of the staff
recommendation; complete the pink form to speak in opposition to the staff recommendation.) Comments are
limited to three minutes per individual.
3. Reoort
DEMOLmON OF STRUCTURES AT 760 BROADWAY TO
ACCOMMODATE TIIE BROADWAY BUSINESS HOMES PROJECT--
On 6/27/95 the Agency accepted bids and awarded a demolition contract for
the buildings on the former Fuller Ford dealership site at 760 Broadway. The
Agency stipulated the structures not be demolished until all conditions of sale
had been satisfied and escrow closed. Maintaining the structures has become
a problem due to repeated break-ins by homeless people, vandals, and thieves.
The purpose of this report is to discuss the pros and cons for demolishing the
structures prior to the close of escrow. Staff recommends the Agency
authorize demolition of the structures. (Community Development Director)
'" declare under penalty of perjury t~at I am
enwloyed by the City of Chula Vista," the
Community Development Department and thz.t I posted
this AgendaiNotice on the Bullet:n BOa!,d at t,e , ~
PlJbliC~e vi s Building and ,at Ci~ Ha,Lon , /. ,,! '1--7 ~.
..... '- &~ h1tfl;o(J-'
D,HE: 'j / / ::> SIGNED" A!.1/ ,.. "
Agenda
-2-
November 14, 1995
ORAL COMMUNICA nONS
This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within
the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the
Redevelopment Agency from taking action on any issues not included on the posted agenda.) If you wish to
address the Council on such a subject, please complete the yellow "Request to Speak Under Oral Communications
Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to
the meeting. Those who wish to speak, please give your name and address for record purposes atu/ follow up
action. Your time is limited to three minutes per speaker.
OTHER BUSINESS
4. DillECTOR'S/CITY MANAGER'S REPORT(S)
5. CHAill'S/MAYOR'S REPORTlS)
6. AGENCY/COUNCIL MEMBER COMMENTS
ADJOURNMENT
The meeting will adjourn to the Regular Redevelopment Agency Meeting on November 21, 1995 at 6:00 p.m.,
immediately following the City Council meeting, in the City Council Chambers.
"''''''''''''''''
COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT
The City of Chula Vista, in complying with the Americans With Disabilities Act (ADA), request
individuals who require special accommodations to access, attend, and/or participate in a City meeting,
activity, or service request such accommodation at least forty-eight hours in advance for meetings and
five days for scheduled services and activities. Please contact the Secretary to the Redevelopment
Agency for specific information at 619.691.5047 or Telecommunications Devices for the Deaf (TOO)
at 619.585.5647. California Relay Service is also available for the hearing impaired.
[C:\WP51 IAGENCYlAGENDAS\11-14-95.AGD]
MEMORANDUM
November 9, 1995
FROM:
Mayor Shirley Horton ~
John D. Goss, Executive DirectorJ~ ~ ~/ S
Chris Salomone, Community Development Director C.
TO:
VIA:
SUBJECT:
Special Meeting of the Redevelopment Agency - November 14, 1995
Staff has need to request a Special Meeting of the Redevelopment Agency on Tuesday,
November 14, 1995 after the regular City Council meeting. The following item requires
immediate consideration, deliberation, and action by the Agency:
. Report: Demolition of Structures at 760 Broadway to Accommodate the
Broadway Business Homes Project
I hereby call a Special Meeting of the Redevelopment Agency
for Tuesday, November 14, 1995:
AI ..!-.
/1(,1.'_/,' H'
~ ,/v ~,(I/ _ 1I ,I fo (...- (._) \,.
Shirley Hortd'n, Chairman
[BB\C,\WP51 \AGENCY\MEMOS\INF09516.MEMI
MINUTES OF A JOINT REGULAR MEETING OF THE REDEVELOPMENT AGENCY/
CITY COUNCIL OF THE CITY OF CHULA VISTA
Tuesday, October 17, 1995
11:07 p,m.
Council Chambers
Public Services Building
CALL TO ORDER
1. ROLL CALL:
PRESENT: Agency/Council Members Alevy, Moot, Padilla, Rindone, and Chair/Mayor
Horton
ALSO PRESENT: John D. Goss, Director/City Manager; Bruce M. Boogaard, Agency/City
Attorney; and Beverly A. Authelet, City Clerk
2. APPROVAL OF MINUTES: September 26, 1995 and October 10, 1995
MSC (Horton/Alevy) to approve the minutes of September 26, 1995 and October 10, 1995 as presented with
Rindone abstaining on the minutes of October 10, 1995.
CONSENT CALENDAR
(Items pulled: none)
3. WRITTEN COMMUNICATIONS: None.
4. RESOLUTION 18072 APPROVING FUNDS AS A LOAN FROM THE UNAPPROPRIATED BALANCE
OF FUND #222, TRUNK SEWER CAPITAL RESERVE FUND TO THE REDEVELOPMENT AGENCY
CAPITAL IMPROVEMENT PROJECT RD2I5--To comply with a cleanup and abatement order issued by the
California Regional Water Quality Control Board, bids were received for Soil Groundwater Remediation for the
Corporation Yard which includes the design and implementation of a system to remediate groundwater and soil, if
necessary. Staff recommends approval of the resolutions.
RESOLUTION 1470 ACCEPTING BIDS AND AWARDING CONTRACT FOR SOIL AND
GROUNDWATER REMEDIATION FOR THE CORPORATE YARD IN THE CITY OF CHULA VISTA,
CA (RD-215)
RESOLUTION 1471 APPROVING AGREEMENT BETWEEN THE CITY OF CHULA VISTA
REDEVELOPMENT AGENCY AND HARGIS & ASSOCIATES, INe. FOR ENVIRONMENTAL
CONSULTANT SERVICES
Member Rindone stated the item contained a recommendation to adopt a resolution appropriating $111,556 from
the Trunk Sewer Capital Reserve Fund which was related to a continuation of Item 15 of the Council agenda. He
questioned if the item could be delayed until 11/14 when the issue would be considered by Council.
Mr. Goss felt the issues described in the Council item were different in the sense that there was a need to proceed
in order to make the property, which was not in a redevelopment area, developable. It was part of the overall plan
in terms of being able to finance and move the corporation yard to a larger site. He felt it was more appropriate
for it to be funded out the Redevelopment Agency funds. Realizing the condition of those funds, that in effect
meant that it would ultimately have to come from the General Fund. Therefore, he felt it appropriate to move into
a different direction of funding.
Clifford Swanson, Deputy Director of Public Works/City Engineer, stated the City had a clean-up and abatement
order from the California Regional Water Quality Control Board and the current date for remediation activities to
be completed was 1/14/96.
Chris Salomone, Director of Conununity Development, stated there was interest in developing the site by a very
reputable team of developers. staff would be returning to the Agency with a request for an exclusive negotiating
02 -I
Minutes
October 17, 1995
Page 2
agreement to develop the block adjacent to the trolley center. which could include the disposition of the property
to the developer.
CONSENT CALENDAR OFFERED BY CHAIR/MAYOR HORTON, reading of the text was waived.
Resolution 18072 amended to delete "loan from the unappropriated balance of Trunk Sewer Capital Reserve
Fund" and add "of the unappropriated balance of the General Fund".
Mr. Salomone stated if it was from the unappropriated balance of the General Fund it would be a loan to the
Agency and the Agency would be obligated to repay it,
VOTE ON CONSENT CALENDAR, AS AMENDED: approved unanimously.
* * END OF CONSENT CALENDAR * *
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
None submitted.
ORAL COMMUNICATIONS
None
ACTION ITEMS
None submitted.
ITEMS PULLED FROM THE CONSENT CALENDAR
Items pulled: none. The minutes will reflect the published agenda order.
OTHER BUSINESS
5. DIRECTOR'S/CITY MANAGER'S REPORTISl - None
6. CHAIR'S/MAYOR'S REPORTlSl - None
7. AGENCY/COUNCIL MEMBER COMMENTS - None
ADJOURNMENT
ADJOURNMENT AT 11:15 P.M. to the Regular Redevelopment Agency Meeting on November 7, 1995 at 4:00
p.m., immediately following the City Council meeting, in the City Council Chambers.
by:
Respectfully submitted,
BEVERLY A. AUTHELET, CMC/AAE, City Clerk
" \, \'
'",~~ \ .. ,\~\\.,\:~ "\.~-~
Vicki C. Soderquist, C eputy City Clerk
-,
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REDEVELOPMENT AGENCY AGENDA STATEMENT
Item ..3
Meeting Date 11/14/95
ITEM TITLE:
REPORT: Demolition of Structures at 760 Broadway to
Accommodate the Broadway Business Homes Project
Community Development Director [,S,
SUBMITTED BY:
REVIEWED BY: City Manager a (4/5ths Vote: Yes _ No Xl
BACKGROUND: the Agency approvllct a Disposition and Development Agreement (DDA) with
Lenore and Josef Citron for the Broadway Business Home project on August 1, 1995. This
project will be developed on the former Fuller Ford dealership site (760 Broadway).
On June 27, 1995 the Agency accepted bids and awarded a demolition contract for the
buildings on the site in anticipation of this project. However, in authorizing the Business
Homes Project to move forward, the Agency clearly stipulated that the structures on the site
not be demolished until all conditions of sale have been satisfied and escrow closed, since
backup offers have been received for the property with the buildings in place. The demolition
contractor agreed to wait several months and hold his price.
Escrow is anticipated to close around the end of the calendar year in order to allow time for
the following conditions to be satisfied:
Establish an assessment district for maintenance of common areas.
Prepare tentative and final parcel maps
Developer to secure project financing
In the interim, maintenance of the dealership structures has become problematic due to
repeated break-ins by homeless people, vandals and thieves. Several letters of complaint have
been received from nearby residents concerning activity on the site.
At the November 7 Agency meeting, Council directed staff to return the demolition issue to
this meeting. In response, the purpose of this report is to discuss the pros and cons for
demolishing the structures at this time (before the close of escrow). A scenario exists which
would eliminate the attractive nuisance and liability, expedite development, and protect the
Agency from value loss. It is recognized that the Agency gave clear direction on the phasing
of demolition and staff continues to support waiting on the demolition; but the new
circumstances would seem to merit a reconsideration of the issue.
RECOMMENDATION: That the Agency continue to require the close of escrow of Phase 1
of the Business Homes Project prior to demolishing the existing improvements at 760
Broadway; but, if the Agency wishes to proceed with that demolition, that it be conditioned
on the developer entering into a DDA amendment or similar agreement with the City for a non-
reimbursable up-front deposit of $295,000 to secure any potential value loss to the Agency
if the sale is not consummated.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
.3-)
Page 2, Item
Meeting Date 11/14/95
3
DISCUSSION:
The assessment district and parcel maps are on schedule to be completed by early December.
Final approval of project financing is contingent upon approval of the district and the final
map. Escrow should close before the Christmas holidays. Demolition would then proceed and
be completed by March. The demolition contractor has up to 60 working days to complete
all of the work. Asbestos removal has already been completed, using approximately ten
working days.
The developer has offered to provide all of the funds necessary for demolition to the Agency
in advance in order to expedite clearance of the site. If demolition begins by mid November,
the site should be cleared by the end of the year thereby allowing construction of the first
phase to begin in January instead of March/April.
By clearing the site, staff estimates that $250,000 - $300,000 potential value will be
destroyed based upon purchase offers of $800,000 and $850,000 with buildings in place.
Staff recommends that, if early demolition were desired, the developer be required to provide
the full purchase price for Phase I - $275,000 plus $20,000 related to developer's site
remediation obligations in advance directly to the City. This is similar to the position that the
Agency took on August 1 with the exception that the demolition would not occur before the
close of escrow. The remaining cost of demolition (approximately $100,000) would be
deducted from the $295,000 pre-payment. The remaining $195,000 will be forfeited if the
escrow does not close. This will cover, in part, the Agency's lost value if the buildings are
demolished and the Business Homes Project does not move forward and site remediation
costs.
Below is a listing of arguments for and against early demolition of the buildings on the site:
Arquments for earlv demolition
1. Maintenance of security of the buildings has become problematic. There have been
repeated break-ins, vandalism, theft, and destruction of the interior of several of the
buildings. The demolition contractor had installed a rental fence around the property
at his own expense ($80/month). The contractor has recently informed us that, unless
we pick up the payment, he will discontinue rental of the fence.
2. Staff has received complaints from neighbors concerning illegal activity on the site.
3. The demolition contractor has requested early release of the buildings for the fOllowing
reasons:
a. has crews and equipment available now;
b. concerned about delays over the holiday season;
c. concerned about approaching raining season;
d. has held price, in good faith, for five months;
e. continued theft of materials from the site.
4. The escrow with the Citrons should close in mid-December. The assessment district
and parcel map processes should be completed by early December. The developer has
continued to fund these activities including consulting and plan processing fees. There
3--2-
Page 3, Item :3
Meeting Date 11/14/95
do not appear to be any major impediments which would delay these actions. It would
be practical and desirable to begin demolition early to permit soils testing (for
development plans) to proceed now and construction to proceed soon after the close
of escrow. The current schedule would have construction beginning in the middle of
the raining season.
5. Any value ascribed to the buildings is questionable. The condition of the structures
(particularly the dealership and parts buildings) has deteriorated considerably since the
purchase offers were received. In addition, reuse of the existing service bays, which
open towards the residential neighborhood to the west, could be problematic in terms
of noise and security as it has been in the past. In addition, there is still the issue of
resolving subsurface contamination which has also delayed sale of the former
Chevrolet site. Testing and any required removal of materials, with the existing
buildings in place, may be costly and reduce any added disposition value.
6. The developer has offered to pre-pav the Phase I acquisition cost ($275,000) to fund
demolition with the caveat that, if their proiect does not proceed, anv funds remaininq
after demolition will be forfeited. If early demolition is desired, staff recommends
adding the developer's $20,000 remediation cost to this pre-payment, totalling
$295,000.
Arquments Aqainst Earlv Demolition
1. Based upon two earlier offers of approximately $800,000, in-place value has been
ascribed to the buildings. Should the Citron's project riot move forward, some added
value might be realized through resale of the property "as is," with the buildings in
place. The Citron's are paying $550,000 for the property vacant and clear of
contamination. In addition, the cost of demolition ($107,000) would be saved if the
property were to be sold to another buyer "as is."
2. The developer has not received all of his discretionary approvals and project financing
is not guaranteed until that occurs. Demolition before the project is assured of moving
forward is a risk.
3. The project is highly speculative and market unproven. The Agency should minimize
its risk where possible.
If the Agency wishes to authorize early demolition, staff recommends that it is conditioned
on the prepayment of the purchase price for Phase I as described above.
FISCAL IMPACT: The cost of demolition is estimated at $107,000 (including a 10%
contingency), Approximately $15,000 of this account has been expended for asbestos
removal.
Remaining funds to complete demolition ($92,000) will be available from disposition proceeds
for the property totalling $550,000 (Phases I and II).
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CASE NUMBER: CHUlA VISTA PlANNING DEPARTMENT
PCZ - 95 . A
ACRfACE: I HEREBY CERTIFY lJiAT THIS ZONING MAP
2.53
WAS APPROVED AS A PART OF ORDINANCE
SCALE: ,. = 400' BY THE OlY roUNOL ON
D.'.Tf: JUNE 5/1995
01Ya.fRlC DA.Tf
" 'WN BY: C9 ~!~
C. J. FERNANDEZ ZONIN'G MAP ~
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NORTH
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