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HomeMy WebLinkAboutrda min 1990/07/12 MINUTES OF AN ADJOURNED MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, July 12, 1990 Council Chambers 7:00 p.m. Public Services Buildinq 1. ROLL CALL MEMBERS PRESENT: Vice Chair McCandliss; Members Moore, Nader and Malcolm MEMBERS ABSENT: Chairman Cox STAFF PRESENT: Executive Director Goss; Community Development Director Salomone; Assistant Community Development Director Gustafson; Agency Attorney Boogaard 2. APPROVAL OF MINUTES - June 21, 1990 MSUC (Moore/Nader) approve the minutes of June 21, 1990 as submitted. 3. RESOLUTION 1100 ENTERING INTO A LEASE OPTION AGREEMENT FOR 338 CHURCH A~ENUE FROM THE COMMUNITY CONGREGATIONAL CHURCH OF CHULA VISTA At its closed session meeting of March 14, 1990, the Agency directed staff to negotiate the purchase of three residential lots on Church Avenue from the Community Congregational Church of Chula Vista. The Agency further directed staff to assume the church's lease on an adjacent lot with Mr. Raymond Buffington. The City Attorney concluded that the Agency should avoid actual assumption of the church lease. As an alternative, a lease option agreement was prepared. Member Nader stated he would be voting no because he believes the cost per space is too high. RESOLUTION OFFERED BY MEMBER MALCOLM, the reading of the text was waived by unanimous consent, passed and was approved. (The vote was 3-1; Member Nader opposed.) 4. RESOLUTION 1101 APPROVING LEGAL EXPENSES FOR FORECLOsuRE PROCEEDINGS RELATED TO REDEVELOPMENT CONSTRUCTION LOAN BONDS FOR PARKWOODS AT THE VILI2%GE CONDOMINIUMS There are two Superior Court actions regarding judicial foreclosures on loans financing the Parkwoods at the Vitl~ge Condominiums. The loan servicers requested approval for legal expenses, pursuant to the-Redevelopment Construction Loan Bond documents, payable out of the Reserve Fund held by the Trustee funded by mortgage payment revenues. Approval will protect the Redevelopment Aqenc¥ Minutes -2- July 12~ 1990 interests of the bond holders without financial exposure of the Agency. Vice Chair McCandliss noted that she is a rental tenant at Parkwoods at the Village. The City Attorney has recommended that she abstain from voting on this item. Responding to questions of Member Malcolm, Agency Attorney Boogaard stated he does not know who the reserve balance will revert to if it is unspent. It is, however, a condition that the Agency authorize the payment of legal expenses for the loan originators pursuant to the servicing agreement or the foreclosure against Henrickson and Iverson will not be prosecuted. It is special counsel's as well as the Agency Attorney's strong recommendation that the expenditure be authorized. RESOLUTION OFFERED BY MEMBER MALCOLM, the reading of the text was waived by unanimous consent, passed and was approved. (The vote was 3-0; Vice Chair McCandliss abstained.) 5. RESOLUTION 1102 ADOPTING THE REDEVELOPMENT AGENCY BUDGET FOR FY 1990-91 AND APPROPRIATING FUNDS THEREFORE On May 29 and June 11, 1990, the Redevelopment Agency budget was considered by the City Council as part of the budget review process. Since the Agency funds are not derived from the City's General Fund revenues, it is necessary to approve the budget separately as a Redevelopment Agency item. In addition, State Community Redevelopment Law requires that a budget be adopted annually for all redevelopment projects. It was recommended that the Agency adopt the budget and that the Agency appropriate funds for the following supplemental items: 1. $15,000 for South County Economic Development Council 2. $15,000 for a Bayfront 10K Race 3. $25,000 for the Downtown Business Association (advertisement and promotions funding) Member Moore referred to comments given to him by Chairman Cox. Chairman Cox questioned if part of the funds budgeted for Project No. 208 (Municipal Parking Lot - Church and Center) included a loan to the parking meter fund. Community Development Director Salomone responded that is correct; the intent is for the balance of the loan to be paid out of the parking funds as they accrue. Chairman Cox also had noted comments asking if funds were included for the Little America's Cup contribution and billboard acquisition. Mr. Salomone stated the budget for the Little -- Redevelopment Aqenc¥ Minutes -3- July 12~ 1990 America's Cup has been recommended for approval and the billboard funding is a carry over ($25,000) from the FY 89-90 budget. Executive Director Goss commented that during the fiscal year it may be necessary to revisit the overall funding of the Agency not only in terms of loans that are paid off, but also the action that may be underway in Sacramento. The legislature is proposing to cut Supplemental Subventions for Redevelopment Agencies as a result of the State's budget deficit. There is an effort in Sacramento at this time to reduce that significantly, maybe even phase it out over a 3-5 year period. Vice Chair McCandliss questioned what is expected in terms of spin-offs or positive benefits as a result of the $15,000 recommended for the 10K race. Mr. Salomone stated that this race has occurred in the City of Carlsbad. The results have been quantified by an economic analysis that he will make available to the Agency. It also has an image and public relations effect that is not quantifiable. The immediate impacts include room tax, sales tax, and revenue generation for the period of time of the race. The long term impact is more difficult to determine; it reaches into market areas through national and international media. There is a guarantee for national television coverage on ESPN as the race of the month. The total budget for the race will be over $200,000. The Port District will be asked to match the City's $15,000 contribution. In addition, $20,000 will be donated to a local charity. Marilyn Lassman, representing the South County Economic Development Council, spoke in favor of the staff recommendation. She noted that the Port District has approved funding for her organization. RESOLUTION OFFERED BY MEMBER MALCOLM, the reading of the text was waived by unanimous consent. Vice Chair McCandliss commented regarding the $25,000 requested by the Downtown Business Association. She does not have a problem with going ahead and designating the money, however, it is possible that after the Agency's meeting in August pertaining to parking issues downtown, there may be some shift in the use of these funds. VOTE ON THE RESOLUTION The resolution passed and was approved unanimously. 6. ORAL COMMUNICATIONS: None. Redevelopment Aqenc¥ Minutes -4- July 12, 1990 8. DIRECTOR'S REPORT: Mr. Goss reported on the construction schedule for the H Street bus turnout at the Chula Vista Shopping Center. Advertisement of bids went out July 4. Bids are to be received on July 25th. The contract is to be awarded on August 7 with work to begin on September 10. The work is to be completed on November 9. 9. CHAIRMAN'S REPORT: a. Ratification of Nominations Town Centre Pro~ect Area Committe~: Dan Mason Jack Blakely MSUC (Moore/Nader) approve appointment of Dan Mason and Jack Blakely as members of the Town Centre Project Area Committee. Ota¥ Valley Road Project Area Committe~: A. W. Hall Due to the lack of a decision on appointments to the Planning Commission, Member Moore suggested deferring action on this appointment to the next Agency meeting. MSUC (Moore/Nader) defer action on this item until the next Agency meeting. 10. MEMBERS' COMMENTS: Member Moore: Noted concerns about the potential Supplemental Subvention reduction by the State to cities. He requested that background information be presented to the Agency on both vehicle licenses and Redevelopment Agency funds that are being considered for reduction. MSUC (Moore/McCandliss) direct staff to provide information of where the funds originated; why and when they were shifted to the State. Report to come back within 30 - 60 days. M~. Goss stated it is the intent that the Agency meeting on this date substitute for the regular meeting of July 19. Therefore, a meeting is not being scheduled for July 19. Mr. Salomone stated there will be a meeting following Council on July 17. Redevelopment Aqenc¥ Minutes -5- July 12~ 1990 The Redevelopment Agency recessed at 7:34 p.m. to convene a special meeting of the Industrial Development Authority. The Redevelopment Agency reconvened at 7:35 p.m. The Agency adjourned to closed session at 7:35 p.m. to discuss: Pending Litigation: Wisconsin Mortgage Assurance Corporation vs. Redevelopment Agency (Pursuant to Government Code Section 54956.9); Disposition of Property: 427, 431, 435 Third Avenue; 283, 287 Alvarado Street; Parcels Nos. 568-420-15 and 568-511-20 and 496 Third Avenue (Redevelopment Agency of the City of Chula Vista, owner) pursuant to Government Code Section 54956.8; and Potential Acquisition of Property: 494 Third Avenue (Eugene E. & Amelia B. Roberts, owners); 4501 Otay Valley Road (Roderick and Patricia Davies, owners); Parcels 624-060-27 and 624-060-09 on Otay Valley Road (Vincent and Margaret Davies, owners); Parcel 624-040-45 on Otay Valley Road (Atomic Investments, Inc., Leonard Teyssier, owner) and 350 Third Avenue .(One Park Ltd., owner) pursuant to Government Code Section 54956.8 ADJOURNMENT from Closed Session at 8:45 p.m. to the meeting of July 17, 1990. Chris Salom~ne Community Development Director