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HomeMy WebLinkAboutRDA Packet 2001/12/04 ~V?- -,,-- ~ ~=- = el1Y OF CHUlA VISTA TUESDAY, DECEMBER 4.2001 4:00 P.M. (immediately following the City Council meeting) COUNCIL CHAMBERS PUBLIC SERVICES BUILDING JOINT MEETING OF THE REDEVELOPMENT AGENCY I CITY COUNCIL OF THE CITY OF CHULA VISTA CALL TO ORDER ROLL CALL Agency/Council Members Davis, Padilla, Rindone, Salas; Chair/Mayor Horton CONSENT CALENDAR The staff recommendations regarding the following item(s) listed under the Consent Calendar will be enacted by the Agency by one motion without discussion unless an Agency member, a member of the public or City staff requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a "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. Items pulled from the Consent Calendar will be discussed after Action items. Items pulled by the public will be the first items of business. 1. APPROVAL OF MINUTES - Staff recommends that the Redevelopment Agency/City Council approve the minutes of November 20, 2001. 2. AGENCY RESOLUTION OF THE OF THE CITY OF CHULA VISTA APPROVING THE APPROPRIATION OF $266,324 FROM THE LOW AND MODERATE INCOME HOUSING FUND TO REIMBURSE PACIFIC BAY HOMES FOR PAYMENT OF DEVELOPMENT FEES ASSOCIATED WITH THE DEVELOPMENT AND CONSTRUCTION OF THE AFFORDABLE HOUSING UNITS WITHIN ROLLING HILLS RANCH - On 3/3/92, the City of Chula Vista and Pacific Bay Homes entered into an agreement to provide Low and Moderate Income Housing within Salt Creek I. The Agreement stipulated that a Per Unit Subsidy would be deposited into an interest bearing account with the Redevelopment Agency for the development of a first time homebuyer program; however, the funds were not needed for the program due to exceptional market conditions. The City and Pacific Bay Homes agreed that the Per Unit Subsidy funds would be utilized to offset development fees for a future project. On 6/17/97, the City and Pacific Bay Homes executed an Affordable Housing Agreement calling for Pacific Bay Homes to provide 1 31 units affordable to low income households. As part of that agreement, Pacific Bay Homes proposed to building a 116 unit low income senior apartment complex in Rolling Hills Ranch to satisfy part of the affordable housing obligation. Pacific Bay Homes elected to pay development fees upfront and request reimbursement at a later date. [Community Development Director] STAFF RECOMMENDATION: Agency adopt the resolution 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 Redevelopment Agency from 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 "Request to Speak Under Oral Communications Form tI 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 and follow up action. OTHER BUSINESS 3. DIRECTOR'S REPORT(S) 4. CHAIR/MAYOR REPORTlS) 5. AGENCY/COUNCIL COMMENTS ADJOURNMENT The meeting will adjourn to a closed session and thence to an adjourned meeting of the Redevelopment Agency on December 11, 2001 at 6:00 p.m., immediately following the City Council meeting in the City Council Chambers. CLOSED SESSION Unless Agency Counsel, the Executive Director, City Councilor the Redevelopment Agency states otherwise at this time, the Agency/Council will discuss and deliberate on the following item(s) of business which are permitted by law to be the subject of a closed session discussion, and which the Agency/Council is advised should be discussed in closed session to best protect the interests of the City. The Agency/Council is required by law to return to open session, issue any reports of final action taken in closed session, and the votes taken. However, due to the typical length of time taken up by closed sessions, the videotaping will be terminated at this point in order to save costs so that the Agency/Council's return from closed session, reports of final action taken, and adjournment will not be videotaped. Nevertheless, announcements of actions taken in Closed Session shall be made by Noon on Wednesday following the meeting at the City Clerk's office in accordance with the Ralph Brown Act IGovt. Code S 54957.71 6. CONFERENCE WITH REAL PROPERTY NEGOTIATOR Government Code Section 54956.8 Pursuant to Redevelopment Agency, December 4, 2001 Page 2 Property: Assessor Parcel Nos. 568-270-03; 568-270-11 (approximately 2.85 acres located at the southeast corner of Fourth Avenue and F Street) Negotiating Parties: City Council/Redevelopment Agency (Sid Morris/ Chris Salomone) and Various Tenant Interests Under Negotiations: Lease terms 7. CONFERENCE WITH LEGAL COUNSEL REGARDING ANTICIPATED LITIGATION -- Pursuant to Government Code Section 54956.9(b) One Case 8. CONFERENCE WITH REAL PROPERTY NEGOTIATOR Government Code Section 54956.8 Pursuant to Property: Assessor Parcel Nos. 568-270-2200; 760-106- 9205 (31,673 sq. ft. at 320 Third Avenue) Negotiating Parties: Redevelopment Agency (Chris Salomone) and CinemaStar/Trigild (Bill Huffman), and/or Midland Loan Services/LaSalle Bank (Chris Cimino), and/or MTDS, Inc., dba Meridian Trust Deed Service (Diane Burnett) Under Negotiations: Price and terms for acquisition 9. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(A) Tuchscher Development Enterprises, Inc. v. City of Chula Vista (case no. GIC 758620) **************** AMERICANS WITH DISABILITIES ACT The City of Chula Vista, in complying with the Americans with Disabilities Act (ADA), request individuals who require special accommodates to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least 48 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. Redevelopment Agency, December 4, 2001 Page 3 MINUTES OF ADJOURNED REGULAR MEETINGS OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY AND A SPECIAL MEETING OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA November 20,2001 6:00 P.M. Adjourned Regular Meetings of the City Council and Redevelopment Agency, and a Special Meeting of the Housing Authority of the City of Chula Vista, were called to order at 7 :25 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. ROLL CALL PRESENT: Agency/Authority/Councilmembers Davis, Padilla, Rindone, Salas, and Chair/Mayor Horton ABSENT: Agency/ Authority/Councilmembers: None ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/Authority/ City Attorney Kaheny, and City Clerk Bigelow CONSENT CALENDAR 1. APPROVAL OF MINUTES of October 23, November 6 and November 13, 2001. Staff recommendation: The Redevelopment Agency/City Council approve the minutes. 2. AGENCY RESOLUTION NO. 1758, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING $10,420 TO COVER ADDITIONAL COSTS OF THE PUBLIC IMPROVEMENTS ASSOCIATED WITH AN 11 UNIT TRANSITIONAL HOUSING PROJECT KNOWN AS TROLLEY TRESTLE LOCATED AT 746 ADA STREET, AND APPROPRIATING SAID AMOUNT FROM THE REDEVELOPMENT AGENCY'S LOW AND MODERATE INCOME HOUSING FUND On June 22, 1999, the Agency approved a disposition, development and housing cooperation agreement with South Bay Community Services (SBCS) for the development of an II-unit transitional housing development for foster care graduates, known as Trolley Trestle and located at 746 Ada Street. The project was completed in December 2000. SBCS is requesting a grant of $10,420 to meet increased costs related to the off- site improvements ofthe project. (Community Development Director) Staffrecommendation: Agency adopt the resolution. 3. COUNCIL RESOLUTION NO. 2001-400 AND AGENCY RESOLUTION NO. 1759, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA WAIVING CONFLICT OF INTEREST IN CONNECTION WITH RUTAN & TUCKER, LLP'S REPRESENTATION OF THE CITY OF CHULA VISTA, THE REDEVELOPMENT AGENCY AND THE OLSON COMPANY 1- I CONSENT CALENDAR (Continued) Currently, the City and Redevelopment Agency are employing the legal services of Rutan & Tucker, LLP on a number of important City and Agency issues. Rutan & Tucker, LLP also represents The Olson Company, a builder of affordable urban communities in California, on many of the redevelopment housing projects it undertakes. At this time, The Olson Company has commenced discussions with a developer, Barone Galasso & Associates, Inc., that may lead to a City housing project involving for-sale and apartment units. As they have done in the past regarding similar matters, The Olson Company wishes Rutan & Tucker to represent them with respect to this project. If this happens, Rutan & Tucker would then experience a conflict of interest because of its dual role as counsel for both parties (albeit in separate matters). Therefore, to continue as counsel for all parties (City, Agency, and Olson), Rutan & Tucker must notify its affected clients of the situation, assure them that its loyalty and quality of work will not be influenced by factors other than the client's best interest, and obtain each client's informed written consent. (City Attorney) Staff recommendation: Council/Agency adopt the resolution. ACTION: Chair/Mayor Horton moved to approve staff recommendations and offered Consent Calendar Items #1 through #3, headings read, texts waived. The motion carried 5-0. ACTION ITEMS 4. CONSIDERATION OF THE ISSUANCE OF MULTI-FAMILY HOUSING REVENUE BONDS AND APPROVAL AND EXECUTION OF THE NECESSARY DOCUMENTS AND APPROVAL OF THE AGENCY'S LOAN AND REGULATORY AGREEMENTS FOR THE HERITAGE TOWN CENTER MULTI-FAMILY RENTAL HOUSING DEVELOPMENT On May 29,2001, the Housing Authority of the City ofChula Vista held a public hearing and approved a resolution expressing the Authority's intent to issue multi-family housing revenue bonds to finance a proposed 271-unit, multi-family, rental housing project for low and moderate income households within the Otay Ranch master planned community (Heritage Town Center). Additionally, the Agency/Council conditionally approved financial assistance in the form of a residual receipts loan from the Agency's low and moderate-income housing fund in an amount not-to-exceed $4.4 million and a deferral and waiver of certain City fees. The developer has since received a commitment of2001 private activity bonds for multi-family rental housing projects from the California Debt Limit Allocation Committee. At this time, the Authority is asked to approve a bond resolution authorizing the issuance of $15,400,000 in tax-exempt bonds for the financing of the project and execution in substantial form and other related documents. As a condition of the Agency's financial assistance, the developer is to enter into a loan and regulatory agreement with the Agency and City specifying terms of the financial assistance and use of the project as an affordable housing development for low and moderate-income households for a period of 55 years. (Community Development Director) Page 2 CouncillRDAIHA Minutes (- d- 11/20/01 ACTION ITEMS (Continued) Housing Coordinator Arroyo informed the Council of two adjustments made to the business transaction: - The public facilities development impact fee was reduced from $709,000 to $238,000. As required by the Municipal Code, the Planning Commission approved the waiver of the residential construction tax, in the amount of approximately $73,000, on November 14, 2001. Mr. Arroyo stated that construction is expected to begin within the next two months and be completed in approximately 18 months. ACTION: Deputy Mayor Davis offered Housing Authority Resolution No. HA-20, Council Resolution No. 2001-401, and Agency Resolution No. 1760, headings read, texts waived: HOUSING AUTHORITY RESOLUTION NO. HA-20, RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA AUTHORIZING THE ISSUANCE OF MULTI-FAMILY HOUSING REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $15,400,000 FOR THE PURPOSE OF FINANCING THE ACQUISITION AND CONSTRUCTION OF THE HERITAGE TOWN CENTER MULTI-FAMILY RENTAL HOUSING PROJECT, APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF ANY AND ALL DOCUMENTS NECESSARY TO ISSUE THE BONDS AND IMPLEMENT THIS RESOLUTION, AND RATIFYING AND APPROVING ANY ACTION HERETOFORE TAKEN IN CONNECTION WITH THE BONDS COUNCIL RESOLUTION NO. 2001-401, AND AGENCY RESOLUTION NO. 1760, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA [A] APPROVING A LOAN AGREEMENT AND RELATED RESTRICTIVE CONVENANTS AND THE AFFORDABLE HOUSING AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY AND SOUTH BAY COMMUNITY VILLAS, L.P. AND AUTHORIZING THE CHAIRMAN OF THE REDEVELOPMENT AGENCY TO EXECUTE SAID AGREEMENTS; [B] APPROPRIATING $4,400,000 FROM THE UNAPPROPRIATED BALANCE IN THE LOW AND MODERATE INCOME HOUSING FUND FOR FINANCIAL ASSISTANCE TO SOUTH BAY COMMUNITY VILLAS, L.P.; [C] APPROVING A TEN YEAR DEFERRAL OF THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE AND WAIVER OF THE PARK FEE; AND [D] APPROVING A DEFERRAL AGREEMENT FOR THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT FOR THE DEVELOPMENT AND OPERATION OF HERITAGE TOWN CENTER The motion carried 5-0. Page 3 CounciVRDAlHA Minutes 1-..3 11/20/01 ORAL COMMUNICATIONS There were none. OTHER BUSINESS 5. DIRECTOR'S REPORTS There were none. 6. CHAIRlMAYORREPORTS There were none. 7. AGENCY/COUNCIL COMMENTS There were none. CLOSED SESSION Mayor Horton announced that Closed Session was cancelled, and the following items were not discussed. 8. CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: Assessor Parcel Nos. 568-270-03; 568-270-11 (approximately 2.85 acres located at the southeast comer of Fourth Avenue and F Street) City Council/Redevelopment Agency (Sid Morris/Chris Salomone) and Various Tenant Interests Negotiating Parties: Under Negotiation: Lease terms 9. CONFERENCE WITH LEGAL COUNSEL REGARDING ANTICIPATED LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(B) One Case ADJOURNMENT At 7:35 p.m., Chair/Mayor Horton adjourned the meeting to the Regular Meeting of the Redevelopment Agency on December 4, 2001, at 4:00 p.m., immediately following the City Council meeting. ~~~t~(} Q. Susan Bigelow, CMC/ AAE, City Clerk Page 4 CouncillRDA/HA Minutes (- t{ 11/20/01 MINUTES OF A SPECIAL MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA November 20, 2001 6:00 p.m. A Special Meeting of the Redevelopment Agency of the City ofChula Vista was called to order at 7:55 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Agency Members: Davis, Padilla, Rindone, Salas, and Chair/Mayor Horton ABSENT: Agency Members: None ALSO PRESENT: Executive Director Rowlands, Agency Attorney Kaheny CLOSED SESSION 1. CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: Assessor Parcel Nos. 568-270-2200; 760-106-9205 (31,673 sq. ft. at 320 Third Avenue) Negotiating Parties: Redevelopment Agency (Chris Salomone) and CinemaStar/Trigild (Bill Huffman), and/or Midland Loan Services/LaSalle Bank (Chris Cimino), and/or MTDS, Inc., dba Meridian Trust Deed Service (Diane Burnett) Under Negotiation: Price and terms for acquisition ACTION: Direction was given to Counsel. ADJOURNMENT At 9:00 p.m., Chair Horton adjourned the meeting to the Regular Meeting of the Redevelopment Agency on December 4, 2001, at 4:00 p.m., immediately following the City Council meeting. ~ \lU~'f(~ Susan Bigelow, CMC/AAE, City Clerk I~ s REDEVELOPMENT AGENCY AGENDA STATEMENT ITEM TITLE: RESOLUTION APPROVING THE APPROPRIATION OF $266,324 FROM THE LOW AND MODERATE INCOME HOUSING FUND TO REIMBURSE PACIFIC BAY HOMES FOR DEVELOPMENT FEES ASSOCIATED WITH THE DEVELOPMENT AND CONSTRUCTION OF THE AFFORDABLE HOUSING UNITS WITHIN ROLLING HILLS RANCH 5UBMlnED BY: COMMUNITY DEVELOP~ENT DIRECTOR ~~ ~~: REVIEWED BY: EXECUTIVE DIRECTOR 19f... vI'" ITEM NO.: MEETING DATE: ~ 12/04/01 BACKGROUND 4/5TH5 YOTE: YES D NO I X On March 3, 1992, the City of Chula Vista ("City") and Pacific Bay Homes ("Property Owner") entered into an agreement to provide Low and Moderate Income Housing within Salf Creek I. As part of that agreement, the Property Owner was required to pay a Per Unit Subsidy of $600 in an effort to create a First Time Homebuyer program for 13 affordable units. During the time period of 1992 until May 1997, fhe Property Owner confinued to pay the Per Unif Subsidy fo the City. During the fime the funds were accruing, the affordable units were being sold without City assistance. Since it was determined that the Property Owner substantially met their affordable housing requiremenf by providing 13 affordable units it was determined that the funds would be held by fhe City, in an interest bearing account, to be allocated to a future affordable housing program. On June 17, 1997, the City and the Property Owner executed the Affordable Housing Agreement consistent with the City Housing Elemenf calling for the Property Owner fo provide 131 unifs affordable to low-income households. They proposed to build a 168-unit apartment complex, of which 32 units will be affordable to low-income households, and to construct a 116- unit low income senior apartment complex to be rented to low income seniors. The 168 unit multifamily developmenf will be constructed in the near future. The 116-unit senior development has complefed construcfion, and occupancy will begin in December 2001. The Agreement stipulated that the funds collected by the City under the Per Unit Subsidy would be used to pay the development fees associated with fhe development and construction of the affordable housing units within Rolling Hills Ranch. RECOMMENDATION Staff recommends that the Agency approve and appropriate $266,324 from the Low and Moderate Income Housing Fund to reimburse Pacific Bay Homes for development fees associated with the development and consfrucfion of the affordable housing units wifhin Rolling Hills Ranch. d ~I PAGE 2, ITEM NO.: MEETING DATE: 12/04/01 BOARDS/COMMISSIONS RECOMMENDATION Not applicable. DISCUSSION As per the "Agreement to Provide Low and Moderate Income Housing" and the First Amendment to this agreement, Pacific Bay Homes paid the City a Per Unit Subsidy for units constructed within the project known as Salf Creek I. As part of fhe affordable housing requirement Property Owner was required to provide 13 affordable housing units. Included within the agreemenf was a stipulation that the Property Owner would pay a $600 Per Unit Subsidy to the City to be used to assist 13 first time homebuyers. Due ta exceptional market conditions, the designated units sold at affordable levels without the subsidy assistance. Therefore, the City and Property Owner agreed that the Per Unif Subsidy funds would be deposited in an interest bearing account to be used to offset development fees for a future projecf. In April 2000, Pacific Bay Homes entered into an "Affordable Housing Agreement" for the obligation to construct 116 senior apartments to partially safisfy the affordable housing requirement for Rolling Hills Ranch. Since fhe Per Unit Subsidy funds were not placed in a development account, Pacific Bay Homes elected to pay the development fees upfront and request reimbursement at a later date. Pacific Bay Homes has submitted supporting documentation itemizing the payment of fhe development fees in the amount of $580,000. These development fees include: processing, SR-125 interim DIF fee, park, sewer, traffic signal, PFDIF and TDIF fees. The 116-unit low-income senior apartment complex, Rolling Hills Garden, is near completion, and the initial leasing of the units has begun. It is anticipated fhat occupancy will begin in December 2001. Therefore, the Property Owner has requesfed fhat funds be appropriated to reimburse them for the development fees already paid. FISCAL IMPACT To date, the Redevelopment Agency has received $266,400 in principal and $24,924 in interest from the Per Unit Subsidy, totaling $291,324. As part of the Agreement To Provide Low and Moderate Income Housing, $25,000 of the Per Unit Subsidy shall be used by the City in its sole discretion to provide affordable housing opportunities, therefore, the remaining balance of $266,324 will be disbursed to Pacific Bay Homes. J:\COMMDEV\STAFF.REP\ 1 2-04-01\Pacific Bay Homes Reimbursement.doc c2-d-. AGENCY RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA TO APPROVE AND APPROPRIATE $266,324 FROM THE LOW AND MODERATE INCOME HOUSING FUND TO REIMBURSE PACIFIC BAY HOMES FOR PAYMENT OF DEVELOPMENT FEES ASSOCIATED WITH THE DEVELOPMENT AND CONSTRUCTION OF THE AFFORDABLE HOUSING UNITS WITHIN ROLLING HILLS RANCH WHEREAS, on March 3, 1992, the City of Chula Vista and Pacific Bay Homes entered into an Agreement to provide Low and Moderate Income Housing within Salt Creek I; and WHEREAS, the Agreement to provide Low and Moderate Income Housing stipulated that a Per Unit Subsidy would be deposited into an interest bearing account with the City of Chula Vista Redevelopment Agency for the development of a first time homebuyer program; and WHEREAS, the Per Unit Subsidy funds were not needed for the first time homebuyer program due to exceptional market conditions, therefore, the City and Pacific Bay Homes agreed that the Per Unit Subsidy funds would be utilized to offset development fees for a future project; and WHEREAS, on June 17, 1997, the City and Pacific Bay Homes executed the Affordable Housing Agreement calling for Property Owner to provide 131 units affordable to low-income households; and WHEREAS, as part of said agreement Pacific Bay Homes proposed to build a 116 unit low income senior apartment complex in Rolling Hills Ranch to satisfy part of the affordable housing obligation; and WHEREAS, the Per Unit Subsidy funds were not placed in a development account, Pacific Bay Homes elected to pay development fees upfront and request reimbursement at a later date; and WHEREAS, Pacific Bay Homes has submitted supporting documentation itemizing the payment of the development fees in the amount of $580,000; and WHEREAS, the City has received $266,400 in principal and $24,924 in interest from the Per Unit Subsidy; and WHEREAS, the Agreement to Provide Low and Moderate Income Housing stipulated that $25,000 of the Per Unit Subsidy shall be retained by the City in its sole discretion to provide affordable housing opportunities; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve and appropriate $266,324 from the Low and Moderate Income Housing Fund to reimburse Pacific Bay Homes for development fees associated with the development and construction of the affordable housing units within Rolling Hills Ranch. Presented by (}k ~~ Chris Salomone Director of Community Development Approved as to form by 02 -..3