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HomeMy WebLinkAboutRDA Packet 1994/01/25 Tuesday, .January 25, 1lJ94 6:00 p.m. [Immediately following CiIy Council meeting.] Council Chambers PnbIic Services Building COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT The City of Chu/a Vista~ in complying with the Americans with Disabilities Act (ADA), request individuals who may need special accommodation to access, attend, and/or participate in a City meeting, activity, or service contact the Secretary to the Redevelopment Agency at (619) 691 ~5047 for specific information on existing resources/or programs that may be available for such accommodation. Please call at least forty-eight hours in advance for meetings and five days in advance for scheduled services and activities. California Relay Service is available for the hearing impaired. CALL TO ORDER 1. ROLL CALL: Members Horton , Fox , Moore Rindone , and Chairman Nader 2. APPROVAL OF MINUTES: December 14, 1993 and January 18, 1994 BUSINESS 3. WRITTEN COMMUNICATIONS: None Submitted. 1-'3'7 4. RESOLUTION __ FINDING AND DETERMINING PUBLIC INTEREST AND NECESSITY FOR ACQUIRING AND AUTHORIZING THE CONDEMNATION OF CERTAIN REAL PROPERTY WITHIN THE SOUTHWEST REDEVELOPMENT PROJECT AREA, CHULA VlSTA, CALIFORNIA--The Amended Palomar Trolley Center Disposition and Development Agreement approved on 7/27/93 for development of the 190,000 square foot retail shopping center on the south side of Palomar Street, between the Palomar Trolley Station and Broadway. A mitigation measure of the project Final Environmental Impact Report (EIR 91-02), originally certified by the Council on 2/25/92, is the widening of Palomar Street to 6 lanes between the Trolley Station and Broadway and associated modifications to the intersection of Palomar Street and Broadway. As a result, it will be necessary to acquire approximately 843 square feet of property for right-of-way from McDona1ds Corporation property at the nortbwest corner of Palomar Street and Broadway. As negotiations have not concluded successfully, and in order to keep the Palomar Trolley Station construction on schedule, it may be necessary to acquire the required right-of-way through eminent domain action. Staff recommends approval of the resolution. (Community Development Director) (415lliSVoi:IiRii\i\i!iiiidJ PUBLIC HEARINGS The following items have been advertised and/or posted as public hearings as required by law. If you wish to speak to any item, please fill out the "Request to Speak Form" and submit it to the City Clerk or Secretary to the AGENDA -2- JANUARY 18, 1994 Redevelopment Agency prior to the meeting. (Complete the green form to speak in favor of the staff recommemtation; complete the pinkform to speak in opposition to the staff recommendation.) Comments are limited to five minutes per individual. None Submitted. ORAL COMMUNICATIONS 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 Agency from deliberating or taking action on any issues not included on the posted agenda.) If you wish to address the Agency on such a subject, please complete the yellow "Request to Speak Under Oral Communications Form" and submit it to the City Clerk or Secretary to the Redevelopment Agency prior to the meeting. Those who wish to speak, please give your name and address for record purposes and follow up action. Your time is limited to three minutes per speaker. ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the Agency, staff, or members of the general public. The items will be considered individually by the Agency and staff recommendations may in certain cases be presented in the alternative. Those who wish to speak, please fill out a "Request ta Speak Form" and submit it to the City Clerk or the Secretary to the Redevelopment Agency prior to the meeling. Public comments are limited to five minutes. None Submitted. OTHER BUSINESS 5. DIRECTOR'S REPORT Schedule of Meetings. 6. CHAIRMAN'S REPORT 7. MEMBERS' COMMENTS * * * * * * * The AgencylCounci1 will meet in closed session immediately following the Agency meeting to discuss: . Potentia1litigation pursuant to Government Code Section 54956.9 -- Default and Termination 1ssues of the Lease at 980 F Street, Chula Vista, CA - San Diego Sbipbui1ding & Repairs, 1nc. The meeting will adjourn to (a closed session and thence to) to the Regular Meeting of the Redevelopment Agency on Tuesday, February 1, 1994 at 4:00 p.m., immediately following the City Council meeting, Council Chambers, Public Services Building. The meeting adjourned at: p.m. [C:I WP51IAGENCYIAGENDASIOI-25-94.AGD] MINUTES OF A SPECIAL JOINT MEETING OF THE REDEVELOPMENT AGENCYI CITY COUNClL OF THE CITY OF CHULA VISTA Tuesday, December 14, 1993 11:44 p. m. Council Chambers Public Services Building CALL TO ORDER 1. ROLL CALL: PRESENT: AgencylCouncil Members Horton, Fox, Moore, Rindone, and Chainnan/Mayor Nader ALSO PRESENT: JoOO D. Goss, City ManagerlDirector; Bruce M. Boogaard, CitylAgency Attorney; and Vicki C. Soderquist, Deputy City Clerk 2. APPROVAL OF MINUTES: None submitted. CONSENT CALENDAR (1Iems pulled: none) BALANCE OF THE CONSENT CALENDAR OFFERED BY CHAIRMAN NADER, reading of the text was waived, passed and approved unanimously, Item 7, as amended, approved 4-0-0-1 with Horton abstaining. 3. WRITTEN COMMUNICATIONS: None Submitted. 4. AGENCY RESOLUTION 1378 APPROVING A SEMI-EXCLUSIVE NEGOTIATING AGREEMENT WITH THE MOXHAM COMPANY FOR DEVELOPMENT OF A COMMERCIAL SHOPPING CENTER AT THE SOUTHEAST CORNER OF BROADWAY AND K STREET--The Agency recently acquired the South Bay Chevrolet dealership property located at 801 Broadway as part of the Chula Vista Auto Center site acquisition transaction. Staff has been seeking redevelopment proposals for the four-acre dealership site, which is potentially expandable to eight acres. Mr. James Moxham, a local developer, has been working on the Palomar Trolley Commercial Center project and has proposed commercial redevelopment of the Broadway and K Street site with a high-volume retail anchor. Mr. Moxham has requested a Semi-Exclusive Negotiating Agreement with the Agency for six months io order to negotiate a lease agreement with potential tenants, develop plans, and secure financing. Staff recommends approval of the resolution. (Community Development Director) 5. AGENCY RESOLUTION 1379 AUTHORIZING THE EXECUTION OF A SEMI-EXCLUSIVE NEGOTIATING AND COVENANTS AGREEMENT WITH VINCENT A. DAVIES FOR THE DESIGNATION OF DEVELOPMENT RIGHTS FOR HIS PROPERTY AT THE SOUTHEAST QUADRANT OF OT A Y V ALLEY ROAD AND I-805--The Agency currently has several projects in various stages of planning that will be affected by ABl290 which takes effect 111194, including a possible commercial center on the property owned by Vince Davies. In order to retain the ability to provide direct assistance to these projects, if it is deemed necessary or appropriate, the Agency must enter ioto agreements which require the land to be developed and used as defined in the agreement. Staff recommends approval of the resolution. (Community Development Director) 6. AGENCY RESOLUTION 1380 AUTHORIZING THE EXECUTION OF A SEMl-EXCLUSIVE NEGOTIATING AND COVENANTS AGREEMENT WITH FRED L. BORST FOR THE DESIGNATION OF DEVELOPMENT RIGHTS FOR HIS PROPERTY GENERALLY LOCATED ALONG THE SOUTH .2 -I Minutes December 14, 1993 Page 2 SIDE OF OTAY VALLEY ROAD BETWEEN BRANDYWINE AND MAXWELL ROADS--The Agency currently has several projects in various stages of planning that will be affected by AB 1290 which takes effect 1/1/94, including a possible Chula Vista Auto Center expansion on the property owned by Fred L. Borst. 1n order to retain the ability to provide direct assistance to these projects, if it is deemed necessary or appropriate. the Agency must enter into agreements which require the land to be developed and used as defined in the agreement. Staff recommends approval of the resolution. (Community Development Director) 7. AGENCY RESOLUTION 1381 APPROVlNG A SEMl-EXCLUSIVE NEGOTIATING AND COVENANTS AGREEMENT WITH NATIONAL A VENUE ASSOCIATES AND GATLIN DEVELOPMENT COMPANY FOR THE DEVELOPMENT OF A COMMUNITY SHOPPING CENTER AT THE NORTHWEST QUADRANT OF FIFfH A VENUE AND C STREET --The Agency currently has several projects in various stages of planning that will be affected by AB1290 which takes effect 1/1194, iocluding a possible community shopping center on the property owned by National Avenue Associates. 1n order to retaio the ability to provide direct assistance to these projects, if it is deemed necessary or appropriate. the Agency must enter into agreements which require the land to be developed and used as defined in the agreement. Staff recommends approval of the resolution. (Community Development Director) Chairman Nader questioned if it was a time sensitive item. Chris Salomone, Director of Community Development, responded that it was. Passage of the resolution would allow the Agency to retain options to negotiate a typical owner participation agreement, that option would not exist after AB 1290 took effect. Chairman Nader stated it was his understanding the Agency was not obligated to negotiate anything in particular and did not preclude the Agency from negotiating with anyone. Mr. Salomone stated Chairman Nader was correct. Chairman Nader stated with that understanding he would leave the item on the Consent Agenda. Agency Attorney Boogaard stated the resolution did preclude the Agency from negotiating for a six month time period with anyone but the property owner. Mr. Salomone stated that was correct, but it did not obligate the Agency to any particular deal points. Agency Member Horton stated she had a conflict of interest on the item and would abstain from voting. Chairman Nader questioned if there was any way the Agency could preserve their ability to enter into such an agreement without actually doing it. Agency Attorney Boogaard responded the Agency would be risking the loss of the possibility of subsidizing the project. He did not believe there was any way the Agency could preserve their ability to enter into the agreement without actually executing it. Lyle Haynes, Principal Community Development Specialist, stated it tied the Agency to semi-exclusively negotiate with National Avenue and Gatlin Development. Agency Attorney Boogaard stated it was semi-exclusive with regard to the owners and exclusive to the rest of the world. Because of the owner participation rights the Agency could not be exclusive. .2 -~ Minutes December 14, 1993 Page 3 Chairman Nader stated it was his understanding of the information presented that the Agency could not even consider a subsidized project later if the rest of the universe was oot excluded now. He wanted the option of negotiating with anyone the Agency wanted to without closing off any other options. Agency Attorney Boogaard stated the main thing AB 1290 required the Agency to do was to have the developer commit to the development of the land. MS (Nader/Fox) to amend Item 7 to be amended to be a non-exclusive negotiating agreement. Agency Attorney Boogaard stated he had been told that the new revised page 7-13, was acceptable to both Gatlin and NAA. That would allow Gatlin to pull the plug on the deal at ninety days and gave the Agency the right to pull the plug on the deal if the developer could not offer up Gatlin. Chairman Nader questioned what would happen if someone else came in with a proposal. Agency Attorney Boogaard responded that would be a problem under the agreement. Agency Member Rindone questioned if the non-exclusive confonned to AB 1290. Agency Attorney Boogaard stated it was in an area of undefined law, it had been untested. Chairman Nader stated he did not want to vote for the motion unless it preserved the Agency's options. He questioned if the Agency could enter into a subsidized redevelopment agreement with a non-exclusive negotiating agreement. Agency Attorney Boogaard responded that his best judgement was that it would be adequate, he was not sure. MOTION WITHDRAWN: by Maker and Second of Motion. Agency Attorney Boogaard stated the Agency could achieve the Chair's purpose by declaring an impasse earlier than six months if necessary. 8. AGENCY RESOLUTION 1382 ADOPTING ADDENDUM IS-89-29C TO NEGATIVE DECLARATION IS-90-29 FOR CONSTRUCTION OF AN lNDUSTRIAL BUILDlNG LOCATED AT 745 OT A Y V ALLEY ROAD WITHlN OT A Y V ALLEY REDEVELOPMENT PROJECT AREA-- The developers, Octavio and Leticia Sanchez, seek relief from a condition--installation of a vapor barrier beneath the foundation of the structure--of the Owner Participation Agreement. Based on further environmental analysis contained in Addendum 1S-89-29C to Negative Declaration 1S-90-29 it has been determined that this requirement is not necessary. Staff recommends approval of the resolution. (Community Development Director) * * END OF CONSENT CALENDAR * * PUBLIC HEARlNGS 9.A JOlNT AGENCY/COUNC1L PUBLIC HEARlNG CONSIDER THE LEASE OF PROPERTY AT 603 PALOMAR STREET (APN-#622-041-20), CHULA VISTA TO AUGUSTINE REYES--The Amended Palomar Trolley Center Disposition and Development Agreement calls for the Agency to acquire parcels necessary for the development of the proposed shopping center and to convey those properties to the developer, Cypress Creek Company. The Agency adopted Resolution 1341 on 7/27/93 to condemn subject parcels but required that the existing tenant be allowed to remain on the premises for 12 months. The Agency will take possession in November 1993 and a lease oZ -3 Minutes December 14, 1993 Page 4 has been prepared with the tenant to govern his tenancy during the remainder of the 12 months. Staff recommends approval of the resolution. (Continued from the meeting of November 23, 1993) (Community Development Director) B. COUNCIL RESOLUTION 17299 APPROVING THE LEASE OF REDEVELOPMENT AGENCY- OWNED PROPERTY (APN 622-041-20), TO AUGUSTINE REYES AND FINDING THAT CONSIDERATION IS NOT LESS THAN FAm MARKET VALUE C. AGENCY RESOLUTION 1366 APPROVING THE LEASE OF REDEVELOPMENT AGENCY- OWNED PROPERTY (APN 622-041-20) TO AUGUSTINE REYES, FINDING THAT CONSIDERATION IS NOT LESS THAN FAm MARKET VALUE, AND AUTHORIZING CHAmMAN TO SIGN LEASE Chris Salomone, Director of Community Development. informed the Agency/Council that the lease was not signed by the tenant on the property and requested the item be pulled. Chainnan/Mayor Nader stated the item would be tabled indefinitely. ORAL COMMUNICATIONS None ACTION ITEMS 1O.A. REPORT STAFF ANALYSIS AND RECOMMENDATION REGARDING THE CHULA VISTA FAMILY RECREATION AND FUN CENTER PROPOSAL--On 917193 a request for consideration of a Family Recreation and Fun Center proposal was presented to the Agency. The Agency directed staff to analyze the proposal and return with a report and recommendation. Staff was also directed to begin to evaluate and determine the feasibility of an alternative site for a Veterans Home facility since the Recreation/ Fun Center proposal could involve Agency-owned land which was previously offered to the Stale for development of a Veterans Home facility. Staff recommends that the Agency accept the report and provide staff further direction. (Community Development Director) B. REPORT PROJECT STATUS ON AN ALTERNATIVE SITE FOR THE VETERANS HOME Chris Salomone, Director of Community Development, clarified that the staff recommendation was that a public forum be held in the neighborhood to assess the neighbors interests and concerns for oot only the Family Fun Center, but the balance of the properties in the lower Sweetwater area and the Veteran's Home proposal. Staff would come back to Council following that forum. Staff would also begin drafting a general plan amendment appropriate for all the land uses in the area. Chairman Nader questioned if Mr. Salomone was saying that they would start preparing the GPA on those properties that were not the City-owned Sweetwater parcel and would not be involved in the consideration whether it would be a Veteran's Home versus Fun Center, etc. Mr. Salomone responded that they wanted to look at the whole valley as an area, begin the work, and not wait until the public forum to begin some of the preliminary analysis. Ooce the public forum was held, staff would come back to the Agency with the results of the forum. 1n the mean time, staff was negotiating with the school district on the alternate site for the Veteran's Home with the clear understanding that until that issue was cleared up, the Veteran's .J.. - '-I Minutes December 14, 1993 Page 5 Home site was preserved in the lower Sweetwater Valley. It was a matter of expediting the whole process and beginning some of the preliminary work. Chairman Nader questioned if it would be explained clearly at the forum to the residents that the Sweetwater parcel owned by the City was purchased with lowlincome housiog funds and either must be used for that purpose or the Agency would have to fmd some way to reimburse that fund. Mr. Salomone responded that was correct. Agency Member Moore questioned if the Agency owed the Veterans Home Commission some degree of obligation to withhold any change in land use for X months until there was a decision made. Chairman Nader stated it was his understanding the City had made an offer which the Veterans Commission could accept, but they had not done so and until it was accepted the City, could withdraw the offer at any time. Agency Member Moore felt there should be correspondence to the Commission stating the two sites were available and that a decision had to be made by a certain date or the site or sites would be withdrawn. Mr. Salomone stated the decision by the Governor was due to be made in June. The final recommendation from the Commission was due at the end of April or the first of May and he felt that was a constraint the City needed to deal with. A time period had not been indicated by the City. Chairman Nader stated a resolution had been passed making the site available, but no time frame had been set. Mr. Salomone stated Council acted on a motion that staff had taken to the Veterans Home Committee which was to conceptually approve the donation of the land and to the building of the access road. By virtue of that proposal the City received the number two position in the State. It was subsequent to that action that staff showed them the medical center site. Chairman Nader stated he was not comfortable with starting to process a general plan amendment with as much uncertainty as there was regarding issues such as whether there was another site available, lack of neighborhood input, etc. MSUC (NaderlHorton) 1) to accept the portion of the staff recommendation that called for a neighborhood forum to be held to collect input; 2) the Veterans Advisory Task Force as well as any other interested be notified of that forum and be kept abreast of what was being done; and 3) and that at the forum the legal status of the Sweetwater site, in tenns of its purchase with lowlincome housing funds, be clearly explained from the outset so that everyone understood the range of options the City was dealing with. ITEMS PULLED FROM THE CONSENT CALENDAR The minutes will reflect the published agenda order. ltems pulled: none. OTHER BUSINESS 11. DrRECTOR/ClTY MANAGER'S REPORT None 12. CHAIRMAN/MA YOR'S REPORT None 13. AGENCY/COUNClL MEMBERS' COMMENTS None :(-5 Minutes December 14, 1993 Page 6 ADJOURNMENT ADJOURNMENT AT 12:05 A.M. to a Regular Meeting of the Redevelopment Agency on Tuesday, January 4, 1994 at 4:00 p.m., immediately following the City Council meeting, Council Chambers. Public Services Building. Respectfully submitted, BEVERLY A. AUTHELET, CMC, City Clerk by: et -b MINUTES OF A JOINT MEETING OF THE REDEVELOPMENT AGENCYI CITY COUNCIL OF THE CITY OF CHULA VlSTA Tuesday, Jaouary 18, 1994 7:48 p.m. Council Chambers Public Services Building CALL TO ORDER 1. ROLL CALL: PRESENT: Agency/Council Members Horton, Fox, Moore, Rindone, and Chairman/Mayor Nader ALSO PRESENT: Jobn D. Goss, Director/City Maoager; Bruce M. Boogaard, AgencylCity Attorney; aod Beverly A. Authelet, City Clerk 2. APPROVAL OF MINUTES: Jaouary 4, 1994 MSUC (RindonelHorton) to approve the minutes of January 4, 1994 as presented. CONSENT CALENDAR (Item pulled: 5) BALANCE OF THE CONSENT CALENDAR OFFERED BY AGENCYICOUNCIL MEMBER RINDONE, reading of the text was waived, passed and approved unanimously. 3. WRITTEN COMMUNlCATIONS: None Submitted. 4. AGENCY RESOLUTION 1385 APPROVING A MEMORANDUM OF UNDERSf ANDING WITH TIIE SAN DIEGO METROPOLITAN TRANSIT DEVELOPMENT BOARD, SAN DIEGO & ARIZONA EASTERN RAILWAY COMPANY, AND THE CHULA VISTA REDEVELOPMENT AGENCY RELATED TO THE WIDENING OF PALOMAR STREET AND THE TRAFFlC SIGNAL RELOCATION FROM THE ENTRANCE OF THE MTDB PALOMAR STREET LRT STATION, AND AUTHORIZING CHAIRMAN TO EXECUTE TIIE MEMORANDUM OF UNDERST ANDING--On 7/27/93 the Agency approved ao Amended Disposition aod Development Agreement with Cypress Creek Company for the development of ao approximately 190,000 square foot commercial shopping center (Palomar Trolley Center). The development of the Center requires actions which impact the adjacent trolley station including the acquisitioo of right-of-way for the widening of Palomar Street, the relocation of the existing signalized access to the trolley station to go through the new commercial center, and the restriping of the Metropolitan Traosit Development Board (MTDB) parking lot. A Memorandum of Understanding (MOU) has been prepared which would govern the actions of the AgencylCity aod MTDB that pertain to those development impacts. The MOU was approved by the MTDB on 12/10/93 aod is ready for Agency consideration. Staff recommends approval of the resolution. (Community Development Director) 5.A. AGENCY RESOLUTION 1386 AUTHORIZING THE EXECUTION OF AN AGREEMENT FOR COOPERATION BETWEEN THE CITY OF CHULA VISTA, CHULA VlSTA REDEVELOPMENT AGENCY, AND THE SOUTHWESTERN COMMUNITY COLLEGE DISTRICT FOR THE SOUTHWEST ~-1 Minutes January 18, 1994 Page 2 REDEVELOPMENT PROJECT AREA--Health and Safety Code Section 33401 authorized Cormnunity Redevelopment Agencies to enter into agreements to pay any taxing agencies with territory within a redevelopment project area, the appropriate amount of money necessary to alleviate any financial burden or detriment caused to the taxing agency by the adoption of the redevelopment project. The Southwestern Community College District advised the Agency of the poteotia1 negative financial impact on the College as a result of the adoption and implementation of the Southwest Redevelopment Plan and the subsequent allocation of tax increment revenues to the Agency pursuant to Health and Safety Code Section 33670(b). A negotiated tax sharing agreement is before the Redevelopment Agency/City Council for consideration. Staff recommends approval of the resolutions. (Cormnunity Development Director) Pulled from the Consent Calendar. B. COUNCIL RESOLUTION 17369 AUTHORIZING THE EXECUTION OF AN AGREEMENT FOR COOPERATION BETWEEN THE CITY OF CHULA VlSTA, CHULA VlSTA REDEVELOPMENT AGENCY, AND THE SOUTHWESTERN COMMUNITY COLLEGE DISTRICT FOR THE SOUTHWEST REDEVELOPMENT PROJECT AREA Pulled from the Consent Calendar. Agency/Council Member Rindone questioned how much the increase in the funds per year would be to Southwestern College. Lyle Haynes, Principal Cormnunity Development Specialist, responded it was difficult to say exactly how much it would be because staff did not know what the tax increment would be. Their percentage share was 4.83 % of the total and of that percent they received 40 %. Agency/Council Attorney Boogaard responded it would be approximately $7,800. Agency/Council Member Moore stated it depended on what new property or tax came into that project area. Chris Salomone, Director of Cormnunity Development, responded that they did not tend to go up on a regular basis, they went up when development occurred. RESOLUTION 1386 AND 17369 OFFERED BY AGENCY/COUNCIL MEMBER HORTON, reading of the text was waived, passed and approved unanimously. Chairman/Mayor Nader questioned if it had been negotiated with Southwestern College and they had been in support. Mr. Salomone responded that was correct. * * END OF CONSENT CALENDAR * * PUBLIC HEARINGS None. ORAL COMMUNICATIONS None c2 - f Minutes January 18, 1994 Page 3 ACTION ITEMS None ITEMS PULLED FROM THE CONSENT CALENDAR Item pulled: 5. The minutes will reflect the published agenda order. OTHER BUSINESS 6. DIRECTOR/CITY MANAGER'S REPORT - None 7. CHAIRMAN/MAYOR'S REPORT - None 8. AGENCY/COUNCIL MEMBERS' COMMENTS - None ADJOURNMENT ADJOURNMENT AT 7:54 P.M. to a Special Meeting of the Redevelopment Agency on Tuesday, January 25, 1994 at 6:00 p.m., immediately following the City Couocil meeting, Council Chambers, Public Services Building. Respectfully submitted, BEVERLY A. AUTHELET, CMC, City Clerk by: Vicki C. Soderquist, Deputy Ci ~-? This yage intentionally left blank. :J-/JD REDEVELOPMENT AGENCY AGENDA STATEMENT SUBMITTED BY: ;..f!!7 Reso1ution.~ Finding and Determining Public Interest and Necessity for Acquiring and Authorizing the Condemnation of Certain Real Property Within the Southwest Redevelopment Project Area, Chula Vista, California Community Development Direffr (,.S , Executive Director J~ ~6 ~ Item 4 Meeting Date 01/25/94 ITEM TITLE: REVIEWED BY: (4/5ths Vote: Yes X No_) BACKGROUND: Under the terms of the Amended Palomar Trolley Center Disposition and Development Agreement, approved July 27, 1993, Cypress Creek Company is developing an approximately 190,000 square foot retail shopping center on the south side of Palomar Street, between the Palomar Trolley Station and Broadway. One of the mitigation measures of the project Final Environmental Impact Report #EIR 91-02, originally certified by the City Council on February 25, 1992, is the widening of Palomar Street to six lanes between the Trolley Station and Broadway and associated modifications to the intersection of Palomar and Broadway; as a result, it is necessary to acquire approximately 843 square feet of property for right-of-way from McDonalds Corporation property at the northwest corner of Palomar Street and Broadway (see attached map). Negotiations have not concluded successfully, and in order to keep the Palomar Trolley Station construction on schedule, it may be necessary to acquire the required right-of- way through eminent domain action. RECOMMENDATION: That the Redevelopment Agency adopt the resolution authorizing the condemnation of the subject property. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable DISCUSSION: The ProDertv The property subject to condemnation is approximately 843 square feet, and, as can be seen from the attached map, is widest through the radius of the intersection of Broadway and Palomar Street, and then tapers down significantly westerly along Palomar Street. It is a small piece of the 30,470 square foot McDonalds parcel, which contains a McDonalds fast food restaurant. The subject property is improved with parking stalls, landscaping, parking lot curb, and signage. Taking the property would have minimal impact on the McDonalds operation; one parking space would be lost, and parking lot restriping, reconstruction of parking lot curb, and minor reconfiguration of landscaping would be necessary. Disruption of the McDonalds business operation should be minimal, and the Palomar Trolley Center developer would be required to pay for the costs of the necessary alterations. ~-I Page 2, Item 4 Meeting Date 01125/94 The Pronertv Value The Agency contracted for an appraisal of all the necessary right-of-way parcels for the street work associated with the Palomar Trolley Center project, and the developer has been responsible for the cost of that appraisal and all other appraisals necessitated by the project. However, Agency staff has not been comfortable with the appraiser's estimation of value and has chosen not to accept the appraisal. The appraiser based his value estimation on fast-food parcel comparables in Carlsbad, Carmel Mountain, El Cajon, Rancho San Diego, and the San Diego's Midway Drive area. It is the opinion of staff that the value of the subject property is most accurately established by comparing it to the commercial property across the street on the southwest corner of the same intersection. That property is owned by the Japanese-American Citizens League of San Diego (JACL), and is occupied by a 7-11 convenience store (APN 622- 041-21). That parcel was appraised for the Agency by the same appraiser in December of 1992 at an estimated value of $10.00 per square foot. Additionally, the same appraiser, in the right- of-way appraisal referenced above, has appraised the value of the portion of that property needed for right-of-way for the Palomar road widening at $10.00 per square foot. It is the estimation of staff that the McDonalds parcel and the JACL parcel are substantially comparable, that the value estimate for the JACL parcel at $10.00 per square foot (both total parcel fee value and right-of-way value) is correct, and that therefore the value of the McDonalds right-of-way property is $10.00 per square foot, or a total of $8,430.00. Nel!otiations The property owner and the developer have been negotiating for the acquisition of the required right-of-way and have made substantial progress toward resolution. That negotiation is predicated on the property owner contributing the required property at no cost in exchange for other benefits that the developer can provide as the owner of the existing adjacent Ralphs/Target shopping center (parking easements, signage, etc.). However, issues remain which may make it impossible to conclude successfully in time to allow the road construction project to proceed on schedule, which is critical to allow the center to be occupied for the 1994 Christmas season. As a result, the developer has requested that the Agency proceed with the condemnation action to assure that the road construction can begin on schedule. If negotiations successfully conclude between the developer and the property owner prior to the acquisition of the property through condemnation, then the eminent domain action will be abandoned. Findinl!s Included in the Resolution of Necessity findings are the following: o Section 2. CEOA Review. The Final Environmental Impact Report (E]R 91-02) for the Palomar Trolley Center project is adequate and there are no unmitigable environmental consequences. ~-2., Page 3, Item 4 Meeting Date 01/25/94 o Section 6. Interested Parties Given Notice and Op'portunity. McDonalds Corporation received written notice of the intended action and their right to appear by certified mail fifteen days prior to this action. Subsequently, staff discussed the proposed action with McDonalds representatives by telephone. o Section 7. Declaration of Need for the Proiect. The project (Palomar Trolley Center) is necessary to eliminate blight in the project's area, will contribute substantially to the redevelopment of the Southwest Redevelopment Project Area, and will generate needed new tax revenues. o Section 8. Declaration of Reasonableness in Plannin!!. The Palomar Trolley Center is located on the only available and reasonably developable commercial properties existing in the market area. The street improvements have been designed to minimize taking of property from existing businesses, with the maximum practical widening planned for the project properties on the south side of Palomar Street. o Section 9. Declaration of Need for the Property. Palomar Street cannot be widened and the intersection of Broadway and Palomar Street cannot be modified and aligned correctly without taking the subject property for right-of-way. The modifications affecting the property owners property were designed to minimize the necessary taking. o Section 11. Just Compensation Offered. McDonalds Corporation has been offered the Agency staff's opinion of just compensation by letter, by certified notice of this action, and by discussion by telephone. The Process The recommended action will result in the filing of a condemnation suit by Daley & Heft. At the point that the developer notifies the Agency that negotiations clearly cannot deliver the property in time to avoid critically delaying the road widening construction and deposits with the Agency the required deposit of 125 % of the property value ($10,537.50), Daley & Heft will seek an Order of Immediate Possession; because the impact on the existing use of the full property will be minimal, possession would be obtainable in three days. FISCAL IMPACT: The Palomar Trolley Center will generate approximately $4 million in net tax revenues over the first ten years of operation, to begin in the Fall of 1994. The cost of acquisition of the subject property and the eminent domain expenses will be paid by the developer as part of the off-site improvement costs, as long as the total off-site improvement costs do not exceed $1.2 million. Any costs between $1.2 million and $1.4 million will be paid by the City through sales tax 1-3 Page 4, Item 4 Meeting Date 01/25/94 rebate. If the off-site costs exceed $1.4 million, either party could withdraw from the Disposition and Development Agreement. The off-site costs are estimated at $1.1 million which does not include cost estimates for street right-of-way acquisition. There are no relocation expenses. [C:\WP51 \AGENCY\RA4SIMCDONALD.RA4] 4-0/ ~~i:.: ~"" . ~<(>. ~~11:~ :i:~'~ ~J':'\' :"i.~.l ,\.,. .,io>,.. ;"~';,~ ~jt ~:. I... ::E~ ::~~;/:~ :)~~~~;~: '~J ....,. .l~:i",; :'.:'~p:~ ,~\:~;!: i'::'::;,r;~i ~;i~};! ":'-",:':/{ ~~l~ :.~;!~i . .~1...,'~~q :,:.~.: :'.!~; '.\' ,.. .,~r, :M:{gl :;:(.},,:~ ";;~ : ~'"~ .~.~. ,..\. ::."::'::'::!i\ :.., ',;!: . .,.: ,';"~,~ 01-14-94 02:28PM FROM SAV ONn3137 I:.XHll:i1l tl LE:GeJD: STRarr DEDICA nON WITHIN .--- liICOONALD'S MY.- 8-4J SQ. FT. I ) INDlCA1ES RECORD DATA pm R.O.S. 9!lJ1 , R.D,B. ssa1 ~~~o I:I~ :;t ~{L~~ 1.1;"'~~ . /il g , ~~ PORlION cmrCAml PE1! ... DOCUMENT RECORDED 11-21-78 ~ ~ AS F/P NO. 78-508484, O.R. \- \ \ \ \ \ \ \ 1 I L013 WALMER'a eUBDIVJelDN MAP NO, 129 Ff.O, 5. 1710 ~ " D~S Co PAUL RCE 22606 D R&G. EXPIRATION: 12-31-93 Proi-G' DIIdgn Con.nr.ltcom. ,I'Ionnt1lf - ........-. CITY OF CHULA VISTA STReET DEDICA nON: PALOMAR STREfT 4-5 - .. ....~. '. I .' . P02 . !", . . ,,' . '.. '. :.\. . . . " . ,'. ':l" .~ '::.,,':: ,',~t/'( ". ; ';;:' ,~~:.. ,. ,'. ,,"", >'\i/ :' . ..''', , , " , ~'.' . '., ":, . , ' . i~,:..:" ~ ; ~ i , " '.. " , " i " " .,' ,', ",,' " " ' " ' " This 'page intentionally left blank. tj__/JJ 1.3?7 RESOLUTION tall RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FINDING AND DETERMINING PUBLIC INTEREST AND NECESSITY FOR ACQUIRING AND AUTHORIZING THE CONDEMNATION OF CERTAIN REAL PROPERTY WITHIN THE SOUTHWEST REDEVELOPMENT PROJECT AREA, CHULA VISTA, CALIFORNIA WHEREAS, the real property which is the subject matter of this resolution is the interest in fee and existing improvements of a portion of the property designated by Assessor's Parcel 618-280-16 and legally described as set forth in Exhibit A, incorporated herein by reference as though set forth in full hereat; and, WHEREAS, the Agency is informed and believes and thereupon finds that the party having ownership interest in the subject real property is McDonalds Corporation ("]nterested Party"); and, WHEREAS, the Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California, "Agency", herein, is charged with the elimination of blighting influences in the City; and, WHEREAS, in conjunction with its responsibility to eliminate blight, Agency has formed the Southwest Redevelopment Project Area; and, WHEREAS, on or about September, 1991, the Agency had become seriously concerned about the blighting influences of the existing use of and existing improvements on the certain properties within the Southwest Redevelopment Project Area to the south of the subject real property, on the south side of Palomar Street, between Broadway and the Metropolitan Transit Development Board's Palomar Trolley Station, and; WHEREAS, at a duly noticed and convened meeting of the Redevelopment Agency of the City of Chula Vista on July 27, 1993, the Agency received substantial and convincing evidence that in order to effectuate the goal of the redevelopment plan to reduce blighting influences, the proposed Palomar Trolley Commercial Center, an approximately 190,000 square foot retail shopping center("Project"), was necessary and that the public interest and necessity require the Project, and the proposed Project is planned and located in a manner that will be most compatible with the greatest public good and the least private injury; and, WHEREAS, at that same meeting the Agency received evidence that there were no unmitigable environmental consequences resulting from the proposed Project and mitigation measures for the Project were adopted, which included the widening of Palomar Street to six lanes and modifications to the intersection of Palomar Street and Broadway ; and, WHEREAS, in order to proceed with the Project, the Agency received substantial and significant evidence that the acquisition of this property is necessary to the project; and Jf-1 RESOLUTION ~ /~"?l?7 Page 2 WHEREAS, at said meeting, the Agency received substantial and convincing evidence that the Agency engaged in good faith in negotiations for the voluntary acquisition of the subject real property and improvements, which efforts included the extension of offers for the acquisition of same at fair market value; and, WHEREAS, at said meeting, the Agency received substantial and convincing evidence that the acquisition of the subject real property and improvements is for a public use, to wit: for public street use to accommodate the development of the Project which will eliminate blight and redevelop the Redevelopment Project Area; and, WHEREAS, the Agency has considered all of the evidence submitted at the hearing including the staff report which is incorporated by reference. NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA HEREBY FIND, RESOLVE, AND DETERMINE, BY A VOTE OF NOT LESS THAN TWO-THIRDS OF ITS MEMBERS, AS FOLLOWS: Section 1. Recitals Included by Reference. The recitals of this Resolution, and definitions and references therein contained, are hereby incorporated herein as the findings and determinations of the Agency. Section 2. Propertv. The subject real property is legally described as set forth on the attached Exhibit "A", attached hereto and incorporated herein by this reference [CCP 1245.230(b)]. Section 3. CEOA Review. The Agency hereby concurs in the determination of the Staff that the Final Environmental Impact Report (EIR 91-02) for the Project, with Addendums, is adequate under California Environmental Quality Act and that there were no unmitigable environmental consequences resulting from the Project [Public Resources Code Section 21151]; and, Section 4. Declaration of Public Use. The taking of the subject real property is for a public use, to wit: for the elimination of blight and the redevelopment of the Southwest Redevelopment Project Area [CCP 1245.230(a)]. Section 5. Authoritv of Agency to Condemn The Agency is authorized to acquire the subject real property pursuant to the Community Redevelopment Law of the State of California (Part I of Division 24, Health and Safety Code) including, but without limitation, Health and Safety Code Section 3339I(b) [CCP I245.230(a)]; and, Section 6. Interested Parties Given Notice and Opportunity. Agency hereby finds that the persons whose property is to be acquired by this action, as their name appears on the last equalized county assessment roll, have been given notice by first class mail in the manner and containing the content required by law, and a reasonable opportunity to appear and be heard on the matters which are the subject of the following three sections of this Resolution [CCP 1245.235] . Jf"IO l$t7 RESOLUTION __ Page 3 Section 7 Declaration of Need for the Proiect. The public interest and necessity require the proposed Project [CCP 1245.230(c)]. Section 8. Declaration of Reasonableness in Planning. The proposed Project is planned or located in a manner that will be most compatible with the greatest public good and the least private injury [CCP 1245.230(c)(2)]. Section 9. Declaration of Need for the Property. The subject real property is necessary for the proposed Project [CCP 1245.230(c)(3)]. Section 10. Establishment of Just Compensation. Prior to the adoption of this Resolution, the Agency (by and through its authorized representative), has established and approved an amount which it believes to be just compensation ("Approved Amount") therefore, to wit: $8,430.00 [Govt. Code 7267.2]. Section 11. Just Comoensation Offered. Agency has offered the Approved Amount to the owner(s) ofrecord therefore in the manner required by Section 7267.2 of the Government Code. The Approved Amount is not less than the Agency's reasonable and informed estimate of the fair market value of the property [Govt. Code 7267.2]. Section 12. Retention of Counsel. The law firm of Daley & Heft, special attorneys for Agency and City Attorney of the City of Chula Vista, as General Counsel, are hereby authorized to prepare and prosecute in the name of the Agency, such proceeding or proceedings in the proper court having jurisdiction thereof, as are necessary for such acquisition; and to prepare and file such pleadings, documents, briefs, and other instruments and to make such arguments and to take such actions as may be necessary in the opinion of said attorneys to acquire for said Agency the said real property. Said attorneys are specifically authorized to take whatever steps and/or procedures are available to them under the Eminent Domain Law of the State of California (Code of Civil Procedure, Title 7, Chapters 1-12, Sections 1230.010-1273.050). PASSED AND ADOPTED this day of January, 1994. Presented by: Approved as to form: ~-S"~ ~ Chris Salomone, Executive Secretary and Community Development Director [C:\WP51\AGENCYIRESOS\McDONALD.RES] 4--/1 This 'page intentionally left blank. 4-& . BEI:NG A PORTI:ON OF FRACTIONAL QUARTER SECTI:ON l67 OF RANCHO DE LA NACION, ACCORDING TO MAP THERiOF NO. lG6, AND A PORTION OF RECORD OF SURVEY 9837, BOTH ON FILE IN THE OFFICE OF THE COUNTY RECORDER or SAN DIEGO, IN THE CITY OF CHOLA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, MORE PARTICULARLY II DESCRIBED AS FOLLOWS:' . . . . If.:>. ~<,\,;l p" . . 01-14-94 02:28PM FROM SAV ON~3137 P03 ~19".STRT.~E~ tEa'-~a.3'OI (7). 8/3(93 (GR-CR). La LSGAL DESCRIP~ION FOR STREET D~DIC1TION KcDONALl)'S BEGINNING AT THE SOvrHWEST CORNER OF SAID ROS 9~37, BgING ALSO A POINT ON THE NORTHERLY RIGHT-Or-WAY O~.~ALOMAR STREET, A PORTION DEDICATED PER DOCUMENT RECORDED JANUARY 6, 1970 AS FILE/PAGE NO. 70-2278 OF OFFICIAL RECORDS, FILED I:N THE OFFICE OF SAID coUNTY RECORD2R; THENCE ALONG THE WESTERLY BOUNDARY OF SAID ROS 9837 1. NORTH l8'2l'26" WEST 2. SOUTH 84'30'33" EAST ..':'::3. SOUTH 62'30'02" EAST . . . . . . . ~ "/ . . 4. SOUTH 84':)0'33" EAST 5, EASTERLY 6. EASTERLY 7. NORTH 74'4~'22" EAST 8. NORTimASTERLY 9. NORTH l5'06'24" WEST 2.47 FEET (NORTH 18'27'26" WEST PER ROS 9831); THENCE LEAV1NG BOUNDARY SAID SA:ID 63.48 FEE'l'; THENCE 5.34 FEET; THENCE 28.75 FEET TO THE BEGINNING OF A 264.00 FOOT RADIUS CURVE cONCAVE NORTHERLY; THENCE ALONG THE ARC OF SAIO CURVE 35 . 44 FEET THROUGH A CENTRAL ANGLE OF 07' U '27" TO THF;. BEGINNING OF A 50. 00 FOOT RADIUS COMPOUND CURVE CONCAVE NORTHERLY; TH:ENCE ALONG THE ARC OF $,A:l:D CURVE 11.38 FEET THROUGH A CENTRAL ANGLE OF 13'02'38"; THENCE ;1l..31 FEET TO THE BEGJ;NNI:NG OF A 20,00 FOOT RADIUS CURVE CONCAVE NORTHWESTERLY; THENCE ALONG THE ARC OF SAID ct11l.VE 31.37 FEET THROUGH A CENTRAL ANGLE OF 89'51'46"; THENCE :L8 . 20 FEET TO A POINT ON 'I'HE EASTERLY BOUNDARY OF SA:ID ROS 9837 AND THE WESTERLY R;[GHT-OF-WA'i OF BROADWAY AS DEDI- CA'I'ED TO '!'HE STATE OF CALIFORNIA PER DOCUMENT RECORDED MA~ 8, 1934 IN SOOK 2118, PAGE 34 OF OFFICIAL PAGE l OF 2 ,/-1 01-14-94 02:28PM FROM SAY ON~3137 P04 II "':"~ , :!~1;~; ......, ,/966-;1RT.LiQ [;01-30-3101 (71. 8/3/V$ (GR.CK). LO ' lila, . RECORDS, FILED IN THE OFFICE OF SAID COUNTY RECORDER; THENCE ALONG SAID BOUNDARY AND RIGHT-Or-WAY SOUTH 18'21'26" EAST' 22.46 FEET (SOUTH 18' 27 '26" EAST PER SAID ROS 9837) '1'0 THE BEGINNING OF A 25.00 FOOT RADIUS CURVE CONCAVE NORTHWESTERLY i THENCE ALONG THE ARC OF SAID CURVE AND BOUNDARY 1111, SOUTHWESTERLY II II III .. 12. WESTERLY 44.69 FEET TNROUGH A CENTRAL ANGLE OF 102'24'48" (DELTA - 101'59'31", LENGTH = 44,50 FEET PER SAID ROS 9837) TO THE BEGlNNING OF A 150,00 1'00'1'- RADIUS COMPOUND CURVE CONCAVE NORTHERLY; THENCE ALONG THE ARC OF SAID CURVE, CONTINUING ALONG SAID BOUNDARY 3:2 .15 FEET THROUGH A CENTRAL ANGLE OF 12'30'35" (DELTA - 12'58'29", LENGTH - 33.97 FEET PER SAID ROS 9837) '1'0 A POINT ON THE NORTHERLY RiGHT-OF-WAY OF SAID PALOMAR STREET; THENCE ALONG SAID BOUNDARY AND RIGHT-Or-WAY ,:::;:~, NOR.TH 83' 26' 03" WES'!' 125.33 FEET (NORTH 83'29'26" WEST 124.21 FEET PER SAID ROS 9831) TO THE POINT OF BEGINNING. II CONTAINS 843 SQUARE FEET MORE OR LESS, II II III I!I II ~ " ,;"'" ..' II PAGE 2 OF 2 1-1