Loading...
HomeMy WebLinkAbout2007/03/08 CVRC Agenda Packet . .. CORPORATION l "Il' i \ \'! S !\ REGULAR MEETING OF THE CHULA VISTA REDEVELOPMENT CORPORATION (CVRC) AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA Thursday, March 8, 2007, 6:00 p.m. COUNCIL CHAMBERS 276 FOURTH AVENUE CHULA VISTA, CA 91910 CAll TO ORDER CVRC ROll CAll Directors Castaneda, Desrochers, Lewis, McCann, Paul, Ramirez, Rindone, Rooney and Chair Cox REDEVELOPMENT AGENCY ROll CAll Agency Members Castaneda, McCann, Ramirez, Rindone, and Chair Cox PLEDGE OF AllEGIANCE, MOMENT OF SilENCE 1. APPROVAL OF MINUTES Staff Recommendation: a. That the Redevelopment Agency approve the minutes of August 10, 2006, August 26, 2006, November 16, 2006, january 9, 2007, january 11, 2007 and February 13, 2007. b. That the CVRC and Redevelopment Agency approve the minutes of january 25, 2007 and February 8, 2007. 2. WRITTEN COMMUNICATIONS a. Memorandum from Jerry Rindone requesting an excused absence from the Redevelopment Agency meeting of January 11, 2007 Staff Recommendation: That the Redevelopment Agency excuse the absence. b. Memorandum from John McCann requesting an excused absence from the CVRC meeting of February 8,2007. Staff recommendation: That the CVRC excuse the absence. PUBLIC COMMENTS Persons speaking during Public Comments may address the CVRC and/or RDA on any subject matter within the CVRC and/or RDA 's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the CVRC and/or RDA from taking action on any issue not included on the agenda, but, if appropriate, the CVRC and/or RDA may schedule the topic for future discussion or refer the matter to staff. Comments are fimited to three minutes. ACTION ITEMS 3. CONSIDERATION OF CONSULTANT AGREEMENTS FOR THE GAYlORD ENTERTAINMENT PROJEO Harrell and Company, Economic and Planning Systems and the law firm of Stradling, Yocca, Carlson and Rauth, LLC have been instrumental in assisting the City in negotiating the deal points of the Gaylord Entertainment Letter of Intent that was signed on July 25, 2006. Additional appropriations are now necessary to continue the use of the consultants through the negotiating process with Gaylord. Staff Recommendation: That the CVRC adopt the following resolution: 3a. RESOLUTION OF THE CHULA VISTA REDEVElOPMENT CORPORATION RECOMMENDING THE WAIVER OF THE FORMAL CONSULTANT SElEOION PROCESS AND THE APPROVAL OF THE FIRST AMENDMENT TO THE AGREEMENT WITH HARRElL & COMPANY ADVISORS, llC, THE WAIVER OF THE FORMAL CONSULTANT SELEOION PROCESS AND THE APPROVAL OF THE SECOND AMENDMENT TO THE AGREEMENT WITH ECONOMIC AND PLANNING SYSTEMS, INC, AND THE WAIVER OF THE FORMAL CONSULTANT SElEOION PROCESS AND THE APPROVAL OF THE FIRST AMENDMENT TO THE AGREEMENT WITH STRADLING, YOCCA, CARLSON & RAUTH, AND RECOMMENDING THE APPROPRIATION OF THE NECESSARY FUNDS That the Redevelopment Agency adopt the following resolutions(3b, 3c, and 3d): 3b. RESOLUTION OF THE REDEVElOPMENT AGENCY OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SElEOION PROCESS AND APPROVING THE FIRST AMENDMENT TO THE AGREEMENT WITH HARRElL & COMPANY ADVISORS, llC FOR FINANCIAL CONSUlTING SERVICES, Page 2 of 3 CVRC/RDA - Agenda - 03/08/07 AUTHORIZING THE CHAIR TO EXECUTE THE FIRST AMENDMENT, AND APPROPRIATING THE NECESSARY FUNDS 3c. RESOLUTION OF THE REDEVElOPMENT AGENCY OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SElECTION PROCESS AND APPROVING THE SECOND AMENDMENT TO THE AGREEMENT WITH ECONOMIC AND PLANNING SYSTEMS, INC. AS ECONOMIC AND FINANCIAL ADVISOR FOR THE BAYFRONT MASTER PLAN, AUTHORIZING THE CHAIR TO EXECUTE THE SECOND AMENDMENT, AND APPROPRIATING THE NECESSARY FUNDS 3d. RESOLUTION OF THE REDEVElOPMENT AGENCY OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND APPROVING THE FIRST AMENDMENT TO THE AGREEMENT WITH STRADLING, YOCCA, CARLSON & RAUTH FOR LEGAL SERVICES, AUTHORIZING THE CHAIR TO EXECUTE THE FIRST AMENDMENT, AND APPROPRIATING THE NECESSARY FUNDS 4. CHIEF EXECUTIVE OFFICER'S REPORTS 5. CHAIRMAN'S REPORTS 6. DIRECTORS' COMMENTS ADJOURNMENT The Chula Vista Redevelopment Corporation and Redevelopment Agency will adjourn their regularly scheduled meetings on March 22, 2007, at 6:00 p.m. In compliance with the AMERICANS WITH DISABILITIES ACT The (hula Vista Redevelopment Corporation requests individuals who require special accommodations to access, attend, and/or participate in a CVRC 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 con tad the Community Development Department for specific information at (619) 691-5047, or Telecommunications Devices for the Deaf (TOO) at (619) 585-5655. California Relay Service is so available for the hearing impaired. Page 3 of 3 CVRClRDA - Agenda - 03/0B/07 MINUTES OF A REGULAR MEETING OF THE CHULA VISTA REDEVELOPMENT CORPORATION (CVRe) MEETING JOINTLY WITH THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA August 10, 2006 6:00 P.M. A Regular Meeting of the Chula Vista Redevelopment Corporation of the City of Chula Vista meeting jointly with the Redevelopment Agency of the City of Chula Vista, was called to order at 6:15 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. CVRC ROLL CALL PRESENT: ABSENT: Directors: Castaneda, Chavez, Desrochers, Paul, Rindone, and Rooney Directors: Lewis (excused), McCann (excused) and Chairman Padilla REDEVELOPMENT AGENCY ROLL CALL PRESENT: Agency Members: Castaneda, Chavez, and Rindone ABSENT: Agency Members: McCann (excused) and Chairman Padilla ALSO PRESENT: Interim Executive Director Thomson, Deputy City Attorney III Shirey, Acting Community Development Director Hix, Redevelopment Manager Crockett PLEDGE OF ALLEGIANCE, MOMENT OF SILENCE CONSENT CALENDAR (Items I and 2) I. APPROVAL OF MINUTES - July 13,2006 Staff Recommendation: That the CVRC approve the minutes of July 13, 2006. 2. WRITTEN COMMUNICATIONS Memorandum from Chairman Padilla requesting an excused absence from the CVRC meeting of August 10, 2006. Staff Recommendation: That the CVRC excuse the absence. ACTION: Director Desrochers offered Consent Calendar Items I and 2. Director Castaneda, seconded the motion, and it carried 6-0-3, with Directors Lewis, McCann and Chairman Padilla absent. / a-) PUBLIC COMMENTS Kevin O'Neill stated he had been working with Community Development on three projects and that he had held off on submitting the projects while awaiting approval of the General Plan and the Urban Core Specific Plan. The FAR (floor area ratio) on the Corridor Subdistricts of the Specific Plan is the primary issue. He inquired how it would be determined who reviews projects if a project is in the Urban Core Specific Plan area, but not in a Redevelopment area. For example, if a pipeline project is submitted now for DRC review with fees, and the Urban Core Specific Plan is adopted before a building permit is issued, would the prior zoning requirements apply? Acting Chairman Rindone noted that the role of the Redevelopment Advisory Committee (RAC) is to provide a review and recommendation to the CVRC; however, the CVRC makes'the final decision. He further noted, the RAC would be formed at its first meeting scheduled for September 7. Acting Chairman Rindone requested Community Development staff continue to work with Mr. O'Neill regarding the FAR issue, and if a referral is needed, requested that the City Attorney's office adjudicate regarding the processing guidelines. ACTION ITEMS 3. CONSIDERATION OF EXCLUSIVE NEGOTIATING AGREEMENT AND FINANCIAL ASSISTANCE FOR AN AFFORDABLE RENTAL HOUSING DEVELOPMENT WITHIN THE MERGED REDEVELOPMENT AREA - (continued from the meeting of July 13, 2006) Wakeland Housing and Development Corporation is interested in developing an affordable, family rental project on the former Tower Lodge Motel site located at 1151 Broadway. Currently vacant, the former Tower Lodge Motel represents an opportunity to remove an existing blighted property and the provision of new housing opportunities for predominately very low-income households. In order to determine the feasibility of this project, staff is proposing financial assistance in the form of a predevelopment loan. The Agency is requested to consider a Predevelopment Loan Agreement for $200,000. Acting Community Development Director Hix introduced Housing Manager Mandy Mills. Ms. Mills provided an overview of the staff report, including a description of the proposed site, developer qualification process, the Exclusive Negotiating Agreement (ENA), which includes a rezone allowing an all-residential project in a mixed-use area, and the predevelopment loan agreement. Ms. Mills concluded that some of the goals the project would meet are removing a current blighting influence, assisting to satisfy the Agency's low/mod funding requirements, and providing very low income units to satisfy the Agency's inclusionary requirement. Ken Sauder, President and CEO of Wakeland Housing and Development Corporation, stated Wakeland is looking forward to working with the City. He described their organization as having over 5,000 units in their portfolio, working statewide with a number of for-profit developers, and having done a number of projects on their own. He then provided examples of some their current projects. Mr. Sauder also noted that their Board of Directors is actively involved in affordable housing and banking, and they understand non-profit management. Furthermore, Wakeland looks forward to meeting with the community, through workshops, to obtain their input regarding this project. Page 2 - CVRC/RDAlCC Minutes h / c<-. ;l., v August 10,2006 ACTION ITEMS (continued) Acting Chairman Rindone pointed out that if approved, the City would receive a double benefit, as not only does the proposed project address the City's affordable housing challenge, it will also help eliminate a blighting condition among budget motels. Staff Recommendation: The CVRC adopt the following resolutions (3. a.) and (3. b.) ACTION: Director Desrochers offered Resolution Nos. 2006-033 and 2006-034, headings read, texts waived. a. CVRC RESOLUTION NO. 2006-033, RESOLUTION OF THE CHULA VISTA REDEVELOPMENT CORPORATION APPROVING AN EXCLUSIVE NEGOTIATING AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND WAKELAND HOUSING AND DEVELOPMENT CORPORATION REGARDING THE POTENTIAL DEVELOPMENT OF A REAL ESTATE PROJECT LOCATED AT 1501 BROADWAY IN THE CITY OF CHULA VISTA b. CVRC RESOLUTION NO. 2006-034, RESOLUTION OF THE CHULA VISTA REDEVELOPMENT CORPORATION RECOMMENDING [A] APPROVAL OF A PREDEVELOPMENT LOAN AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY AND WAKELAND HOUSING AND DEVELOPMENT CORPORATION FOR THE DEVELOPMENT OF AN AFFORDABLE RENTAL HOUSING DEVELOPMENT TO BE LOCATED AT 1501 BROADWAY IN THE CITY OF CHULA VISTA AND AUTHORIZING THE CHAIRMAN OF THE REDEVELOPMENT AGENCY TO EXECUTE SAID AGREEMENT; AND [B] APPROPRIATION OF $200,000 FROM THE UNAPPROPRIATED BALANCE IN THE LOW AND MODERATE INCOME HOUSING FUND FOR SAID PREDEVELOPMENT LOAN TO WAKELAND HOUSING AND DEVELOPMENT CORPORATION Director Castaneda supported the project and noted that, in addition to the double benefit Acting Chairman Rindone mentioned, it is also a benefit to the Southwest area. The motion carried 6-0-3, with Directors Lewis, McCann and Chairman Padilla absent. Due to the absence of Agency member McCann and Chairman Padilla, Acting Chairman Rindone continued Redevelopment Agency Item 3c to the Redevelopment Agency Meeting of August 22, 2006. Page 3 - CVRC/RDA Minutes The Redevelopment Agency adopt resolution (3.c.). )0-3 ',ov August 10,2006 ACTION ITEMS (continued) c. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING [A] A PREDEVELOPMENT LOAN AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY AND WAKELAND HOUSING AND DEVELOPMENT CORPORATION FOR THE DEVELOPMENT AND OPERATION OF AN AFFORDABLE RENTAL HOUSING DEVELOPMENT TO BE LOCATED AT 1501 BROADWAY IN THE CITY OF CHULA VISTA AND AUTHORIZING THE CHAIRMAN OF THE REDEVELOPMENT AGENCY TO EXECUTE SAID AGREEMENT; AND [B] APPROPRIATION OF $200,000 FROM THE UNAPPROPRIATED BALANCE IN THE LOW AND MODERATE INCOME HOUSING FUND FOR THE PREDEVELOPMENT LOAN TO WAKELAND HOUSING AND DEVELOPMENT CORPORATION 4. CONSIDERATION OF AMENDMENTS TO EXCLUSIVE NEGOTIATING AGREEMENTS (ENA) WITH CITYMARK DEVELOPMENT LLC FOR SITES WITHIN THE MERGED AND TOWN CENTRE I REDEVELOPMENT AREAS First Amendments to existing Exclusive Negotiating Agreements (ENA) with CityMark Development LLC to extend negotiating periods and align the ENA timeline with the pending consideration of the proposed Urban Core Specific Plan (UCSP). Director Rooney recused himself from this item because of potential conflicts with the developer and left the Council Chambers at 6:42 p.m. Redevelopment Manager Crockett commended CityMark Development LLC for their exemplary show of partnership with the City, and then introduced Principal Community Development Specialist Ken Lee. Mr. Lee provided an overview of the staff report, including a description of the proposed development sites, and the ENA amendments to extend the current ENAs for an additional 210 days and to update the ENA schedule of pre development milestones and activities to be more in alignment with the pending consideration of the proposed UCSP. Alex Beaton, with CityMark Development LLC, a San Diego-based company since 2000, provided an overview of their development company and described some of their completed and current urban residential housing projects. Mr. Beaton added that CityMark's belief is that their key to success is teamwork with municipalities, attention to design, and community input. Acting Chairman Rindone complimented the visual impact of CityMark's proposed architecture for their Pier project in Little Italy in downtown San Diego. Director Desrochers inquired as to CityMark's projection for the market in Chula Vista and what type of buyer would be attracted to this type of housing in Chula Vista. Mr. Beaton responded that they see two types of buyers: (1) younger people who were born and raised in Chula Vista and want to continue to live here, but are not necessarily ready for a suburban detached home; and (2) people who are considered "empty nesters," who want to experience the urban lifestyle, to be able to walk to restaurants and walk down Third Avenue and experience a more pedestrian lifestyle. Page 4 - CVRCIRDAlCC Minutes http /~ 1- August 10,2006 ACTION ITEMS (continued) Director Desrochers inquired if the market financing and other elements would be on target within an approximate two-year timeframe. Mr. Beaton affirmed that they are optimistic that these will be successful buildings within their timeframe. Staff Recommendation: That the CVRC adopt the following resolutions: ACTION: Director Chavez offered Resolution Nos. 2006-035 and 2006-036, headings read, texts waived. a. CVRC RESOLUTION NO. 2006-035, RESOLUTION OF THE CHULA VISTA REDEVELOPMENT CORPORATION APPROVING AN AMENDMENT TO EXCLUSIVE NEGOTIATING AGREEMENT WITH CITYMARK DEVELOPMENT LLC FOR DEVELOPMENT OF THE LANDIS A VENUE SOUTHEAST SITE b. CVRC RESOLUTION NO. 2006-036, RESOLUTION OF THE CHULA VISTA REDEVELOPMENT CORPORATION APPROVING AN AMENDMENT TO EXCLUSIVE NEGOTIATING AGREEMENT WITH CITYMARK DEVELOPMENT LLC FOR DEVELOPMENT OF THE THIRD A VENUE AND E STREET NORTHEAST SITE The motion carried 5-0-1-3, with Director Rooney abstaining, and Directors Lewis, McCann and Chairman Padilla absent. Director Rooney returned to the Council Chambers at 6:55 p.m. The following item was taken out of order. 6. CHIEF EXECUTIVE OFFICER'S REPORTS Interim Executive Director Thomson recommended that the August 24, 2006, CVRC meeting be cancelled. Mr. Thomson noted that on Saturday, August 26, there would be a closed session meeting of the Redevelopment Agency and CVRC for interviews for the Redevelopment Agency Executive Director/CVRC CEO. Acting Chairman Rindone requested that a schedule be prepared to allocate time at the beginning of the closed session meeting to allow the Directors time to discuss the proposed interview questions, and recommended that each interview be scheduled for an hour to an hour and fifteen minutes. He also suggested, if Directors would like to submit interview questions, they submit them to Interim Executive Director Thomson's office to be considered for inclusion with the proposed interview questions. ACTION: Director Castaneda offered a motion to cancel the August 24, 2006, CVRC meeting, and to add a Saturday, August 26, closed session meeting at 9:00 a.m. for the RDA Executive Director/CVRC CEO interviews. Director Rooney seconded the motion, and it carried 6-0-3, with Directors Lewis, McCann and Chairman Padilla absent. Page 5 - CVRC/RDA Minutes http:. / CL-- 5 August 10,2006 5. BAYFRONTUPDATE Assistant City Manager Laurie Madigan provided an update on the Bayfront Master Plan. Ms. Madigan described the history, public participation process, master plan development process, and the four-party Letter of Intent between the San Diego Unified Port District, City of Chula Vista, Chula Vista Redevelopment Agency and Gaylord Entertainment Company. Ms. Madigan summed up the presentation with a financial synopsis and acknowledgement of the Chula Vista Bayfront Team. Director Castaneda left the dais at 7:26 p.m. In response to questions from Directors Desrochers, Paul and Rooney, Ms. Madigan elaborated further on the relationship with the Coastal Commission, Fish and Wildlife Service and other environmental groups. Ms. Madigan also addressed specific questions regarding the EIR, the land swap negotiations between Pacifica Co. and the Port of San Diego, Gaylord's Letter of Intent, and their commitment to working with the Citizens Advisory Committee through the design process. Additionally, Ms. Madigan spoke of the master plan, highlighting various sites that are proposed to be designated for office, residential, restaurant, hotel, boathouse facility, parks, cultural, and retail with considerations being given to several pedestrian walkways throughout the master plan area, and plans for vehicular public transit to connect the urban core and the bayfront. Director Paul thanked and complimented Ms. Madigan and the entire team. Interim Executive Director Thomson commented that this project has been and continues to be one of the most complicated projects he has ever been involved in or witnessed, and that it will continue to be for the next year. Mr. Thomson described the unique relationship the City has developed with the Port over the past several years. Further, he complimented Port staff who has worked closely with the City/Redevelopment Agency on this project and, in particular, he complimented Ms. Madigan. Acting Chairman Rindone agreed both compliments are well earned, noting Ms. Madigan's enthusiasm, and acknowledged an excellent presentation. Mr. Rindone further commented that along with all the other things Chula Vista is doing, there is no question that the Bayfront is the No. I option that will provide the financial means to ensure that the City continues to have an excellent quality of life for all of its citizens. Staff Recommendation: No action is needed at this time. 7. CHAIRMAN'S REPORTS There were none. 8. DIRECTORS' COMMENTS There were none. Page 6 - CVRC/RDAlCC Minutes httr Jee ~ August 10,2006 ADJOURNMENT At 7:53 p.m., Acting Chairman Rindone, adjourned the Chula Vista Redevelopment Corporation to an adjourned meeting on August 26, 2006, at 9:00 a.m., and the Redevelopment Agency to August 22, 2006, and then to an adjourned meeting on August 26, 2006, at 9:00 a.m. Dana M. Smith, Secretary Page 7 - CVRC/RDA Minutes h )CL 1 v August 10, 2006 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CHULA VISTA REDEVELOPMENT CORPORATION (CVRC) MEETING JOINTLY WITH THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA August 26, 2006 9:00 A.M. An Adjourned Regular Meeting of the Chula Vista Redevelopment Corporation of the City of Chula Vista meeting jointly with the Redevelopment Agency of the City of Chula Vista, was called to order at 9:15 a.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. CVRC ROLL CALL PRESENT: Board Members: Castaneda (arrived at 9:30 a.m.), Chavez, Desrochers, Lewis, Paul, Rindone, Rooney, McCann and Chairman Padilla ABSENT: Board Members: None REDEVELOPMENT AGENCY ROLL CALL PRESENT: Agency Members: Castaneda, Chavez, Rindone, McCann, and Chairman Padilla ABSENT: Agency Members: None ALSO PRESENT: Interim Executive Director Thomson, Assistant City Manager Smith, Senior Assistant City Attorney Marshall, Bob Murray of Bob Murray and Associates PLEDGE OF ALLEGIANCE, MOMENT OF SILENCE The members went into Closed Session at 9:20 a.m. CLOSED SESSION I. PUBLIC EMPLOYEE APPOINTMENT PURSUANT TO GOVERNMENT CODE 54957(b) Interviews for Executive Director of the Redevelopment Agency/Chief Executive Officer of the Chula Vista Redevelopment Corporation. No reportable action was taken on this item. ADJOURNMENT At 1:35 p.m., Chairman Padilla adjourned the Chula Vista Redevelopment Corporation to its next regularly scheduled meeting on September 14,2006, at 6:00 p.m.; and the Redevelopment Agency to its next regularly scheduled meeting on September 19,2006, at 6:00 p.m. Dana M. Smith, Secretary ) tL g DRAFT i\1INlJTES OF ADJOURNED REGULAR MEETINGS OF THE CHULA VISTA REDEVELOPMENT CORPORATION (CYRC), REDEVELOPMENT AGENCY AND CITY COUNCIL OF THE CITY OF CHULA VISTA November 16,2006 6:00 P.M. Adjourned Regular Meetings of the Chula Vista Redevelopment Corporation, Redevelopment Agency and City Council of the City of Chula Vista were called to order at 6:08 p.m. in the Council Chamber,'), located in City Hall, 276 Fourth Avenue, Chula Vista, California. CYRC ROLL CALL PRESENT: Directors: Castaneda, Desrochers, Lewis, Paul, Rindone (arrived at 6:12 p.m.), Rooney, and Vice Chairman McCann ABSENT: Directors: Chavez (excused), Paul (excused), Chairman Padilla (excused) REDEVELOPMENT AGENCY ROLL CALL PRESENT: Agency Members: Castaneda, Rindone (arrived at 6:12 p.m.), and Vice Chairman McCann ABSENT: Agency Members: Chavez (excused), Chairman Padilla (excused) CITY COUNCIL ROLL CALL: PRESENT: Council Members: Castaneda, Rindone (arrived at 6:12 p.m.), and Deputy Mayor McCann ABSENT: Council Members: Chavez (excused), Mayor Padilla (excused) ALSO PRESENT: Interim Executive Director/City Manager Thomson, Deputy General Counsell Deputy City Attorney Shirey, Chief Financial Officer/Finance Director Kachadoorian, Acting Co=unity Development Director Hix, Redevelopment Project Manager Crockett, Planning Manager Ladiana, Senior Co=unity Development Specialist Tapia, Co=unity Development Specialist Alvarez, Senior Deputy City Clerk Peoples, Co=unity Development Administrative A.Bsistant Donnelly PLEDGE OF ALLEGIAL'TCE, MONlENT OF SILENCE Due to the lack of a quorum for the Redevelopment Agency and City Council, Vice Chairman McCann requested Items 1 and 2 be trailed, and Item 3 be heard at this time. )O/q DRAFT Items I and 2 were heard after Item 3. 1. AFPROV AL OF i\1INUTES StaffReco=endation: l.a. That the CYRC and Redevelopment Agency approve the minutes of October 26, 2006. ACTION: Vice" Chai=an McCann moved approval of the CYRClRedevelopment Agency minutes of October 26, 2006. Director/Agency member Castaneda seconded the motion and it carried 6-0, with Director Paul, Director/Agency member Chavez and Chai=an Padilla absent. l.b. That the Redevelopment Agency approve the minutes of October 24, 2006, and November 7, 2006. ACTION: Vice Chai=an McCann moved approval of the Redevelopment Agency minutes of October 26, 2006, and Nov=ber 7, 2006. Agency member Castaneda seconded the motion and it carried 3-0, with Agency m=ber Chavez and Chai=an Padilla absent. 2. WRITTEN COMNfUNICATIONS 2.a. Memorandum from Stephen C. Padilla requesting an excused absence from the Joint CYRClRedevelopment Agency/City Council meeting of November 16, 2006. 2.b. Memorandum from Patricia E. Chavez requesting an excused absence from the Joint CYRClRedevelopment Agency/City Council meeting of November 16, 2006. Staff reco=endation: That the CYRClRedevelopment Agency/City Council excuse the absences. ACTION: Director/ Agency/Councilmember Rindone moved approval of the requests for excused absences. ' Director/ Agency/Councilmember Castaneda seconded the motion and it carried 6-0, with Director Paul, Director/ Agency/Councilmember Chavez and ChairmanlMayor Padilla absent. Paae 2 - CYRCIRDAlCC Minutes o ) 0/ J() JV November 16, 2006 DRAFT Item 3 was heard prior to It=s 1 and 2. PUBLIC HEARINGS 3. CONSIDERATION OF A MIXED USE PROJECT VlITH 167 MULTI-FAlvlILY RESIDEJ\ilIAL UNITS AND 3,793 SQUARE FEET OF COMMERCIAL SPACE ON THE SITE AT 914-944 THIRD AVENUE VlITHJ:N THE MERGED CHULA VISTA REDEVELOPMENT PROJECT (ADDED AREA) Development of this site will provide high-density mixed-use housing located close to existing transit, and witlTh"l a block of neighborhood-serving retail and office uses. The proposal requires the re-zoning ofa 3.6-acre portion of the site and the establishment ofa Precise Plan Modifying Standard for a front setback reduction from 25 feet to 20 feet. In addition, the proposal requires the issuance of a Conditional Use Permit for the mixed use, Design Review and Tentative Map Conditions for the consolidation of four lots into one lot. Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Proj ect Manager Crockett provided an introduction of the proposed Creekside Vistas proj ect, including the effort behind the proposed project development and the public benefits of a great housing proj ect, including new revenues to schools and the City, and increased affordable housing units in western Chula Vista. Planning Manager Ladiana provided an overview of the proj ect details, noting that it would be the first suburban infill redevelopment proj ect since adoption of the General Plan in December of 2005. Senior Co=unity Development Specialist Tapia provided an overview of the project site and surrounding uses, topography, land use designations, other discretionary actions and conditions of the project, and highlights of the residential units, co=ercial space, parking and open space. Terry Plowden, representative of project applicant, Douglas Wilson Companies, spoke in support of the project and outlined some of the highlights, including the project being an opportunity for infill redevelopment; its location adjacent to a transit stop and proximity to neighborhood serving retail and office uses. He then detailed the process his firm had taken to this point to gain support from the co=unity which included extensive co=unity meetings held with the hospital, country club, church and auto parts store as well as with the Northwestern Civic Group, Crossroads II, HEAC and the Chamber of Co=erce Economic Development and Building Committees. Mr. Plowden stated he felt the project was well received as they were proposing to improve a property that was underutilized and in some ways blighted; developing it in a manner consistent with the General Plan; providing 10% affordable housing consisting of 2 and 3 bedroom units, and would also be preserving the Telegraph Canyon Creek. Page 3 - CVRC/RDAlCC Minutes .b I~ )) IV November 16, 2006 DRAFT Bryan Sevy, Project Architect, provided an overview of the design solutions for the project goals which were to create building architecture for the site layout, preservation of the riparian and sensitive habitat, and the creation of a more vibrant mixed-use street scene with an urban feel along yd A venue to allow for walkability. To accomplish these goals, they designed the buildings with a strong fa~ade with homes facing onto 3rd Avenue to provide a safety feature, the retail spaces are located along rd A venue at the northeast comer adj acent to the other commercial uses where it can be used by the residents and others of the community. The parking is provided almost entirely in a subterrarean garage under the main building which allows more space for homes and open-space. The garage has controiled access with separate areas for residential and commercial. The project is made up of a blended density of 30 units per acre with a variety of housing types, including lower density townhomes in the southwest edge, and a larger building with underground parking to efficiently utilize the site. The larger building has single-level and multi-level homes with 2-,3- and 4-bedroom townhomes with 14 different floor plans. All homes have a private balcony or patio. There are two main courtyard spaces above the parl<i.ng and a common amenity area with a tot lot and pool and the open space, riparian area with a trail system along the bank. The architecture is a mix of modem and Spanish architecture, with arches in classic Irving Gill style. Director/Councilmember Castaneda inquired about the width of the sidewalks with the street trees, expressing conc=s of impeding the free flow of pedestrians. Mr. Plowden responded that the sidewa1\:s were 10 feet wide with a wall between the sidewalk and building entryways to separate the pedestrians from the residential traffic, adding that the developer will be maintaining the street trees. Director Rooney stated that he was encouraged by the quality of the proj ect, would like to see more retail if possible, and encouraged the use of vines to cover the front walls to break up the fa~ade. He further noted that the choice of plant materials for this project was very important, as was the relief in the fa~ade provided by the arches, balconies, and planters. Director/Councilmember Rindone inquired and Nlr. Plowden responded that the allocated commercial space was approximately 4,000 square feet which could equate to four tenants at 1,000 feet each, with uses authorized by the zoning code of perhaps a coffee shop and deli. Further, that the trees being considered for use in the project are from the City approved list and will include Oaks, Alders and Sycamores back by the creek, and ornamentals such as Jacarandas or a Brisbane Box in the courtyards. Director Rindone then inquired of staff, as to whether anything was being done regarding the landscaping across the street, and how staff was going to address it, although it is not a condition of this project. Ms. Ladiana responded that staff could be directed to continue pursuing action with the applicant. Director Lewis expressed concerns with the need for protection of the site between the parking and hospital site. Mr. Plowden responded that, in addition to the trees, there would be a wall or fence along the boundary. Director Lewis then inquired about the traffic control from 3rd Avenue into the commercial entry in terms of a left turn lane, and requested staff review the left turn into the proj ect. Pacre 4 - CVRC/RDA/CC Minutes b ) tV /~ ~ November 16,2006 DRAFT Director Desrochers inquired regarding the width of the sidewalk in front of the co=ercial space and i'ifr. Sevy responded that there was 20 feet from the storefront to the sidewalk. In addition, he responded to questions pertaining to the access to the recreation area for residents living on the north end of the project in the Podium building, stating it would be via elevator and a short walk from the building. i'ifr. Plowden responded to questions regarding landscaping noting that native plant material would be planted up to the creek and the natural habitat area would be protected possibly fencing, but that children could play along the area between the building and the property lines, in the children's play area, and in the courtyards. Director Rooney inquired as to whether the proposed pathway could go through to "L" Street. :Mr. Plowden responded that due to the steepness of the area and the culvert, for safety reasons, the area would probably be secured and the pathway would not go through. Director Rooney stated he hoped on future projects that pathways would be designed to go somewhere, and then confirmed that the affordable housing units would be 2- and 3-bedroom units, identical to the market rate units, and would be located throughout the Podium building. Vice Chairmac/Deputy Mayor McCann opened the public hearing. Patricia Aguilar, representing Crossroads II, spoke in support of the project, stating that the applicant had met with them and had either met or exceeded their requests. She then spoke regarding a Planning Commission request on the project, that something be done about the condition of the property across the street from the project, provided and displayed photographs of the area, and encouraged the Council to direct staff to work with the applicant to give something back to the co=unity by improving' this area. Vice Chairman/Deputy Mayor McCann explained for the record, that although the property Ms. Aguilar had spoken about was not directly connected with this project, the applicant, Douglas' Wilson Companies, had looked at the best interests for the co=unity and contacted the Country Club and proposed that the Douglas Wilson companies would come up with a landscaping plan and along with the Country Club and the City, each pay 1/3 of the costs involved in cleaning up and landscaping of the property. i'ifr. Plowden verbally confmed their commitment and stated that a confumation letter had previously been submitted to City staff. Vice ChairmanJDeputy Mayor McCann asked staff to take this as a direction, and inquired and Redevelopment Project Manager Crockett responded, that although this project was not in the redevelopment project area, findings could be made that would allow for tax increment funds to be used. Planning Manager Ladiana noted that the area being discussed was predominantly in private ownership with a very small sliver in City right-of-way. Director/Councilmember Rindone stated he did not feel welded to the 1/3, 1/3, 1/3, but would like to get it done and would prefer to see the Country Club pay at least 50% of the costs. Vice Chairmac/Deputy Mayor McCann requested staff continue to work with the Douglas Wilson Companies and set up a meeting with the Country Club to discuss this issue. Page 5 - CVRC/RDNCC Minutes lilll / ~V /j November 16, 2006 DRAFT Kevin O'Neill stated he was pleased to see this project come forward and spoke in favor of it. He then inquired and staff responded that no redevelopment fund participation had been used, and the project was 100% developer financed. NIr. O'Neill then spoke regarding a project he had proposed two years ago and his perception that he did not get the cooperation, help or interest he had needed to proceed with his proposed proj ect. Lisa' Cohen, representing the Chula Vista Chamber of Co=erce, stated that their Economic Development Committee, as well as Board of Directors, had expressed full support of the proj ect. Ned Ardagna, inquired and staff confirmed, that the proposed walkway on the property along the creek had public access. Mr. Ardagna then stated that he objected to the noticing procedure as only those within 500 feet of the proposed project were notified, yet those most affected, the current property owners and neighborhood residents, live outside of the 500 square feet area and were not notified. Additionally, this project is being called a walkable neighborhood, but there are no sidewalks, and cited Moss and Naples Streets as examples having piecemeal sidewalks. Vice Chaim1anJDeputy Mayor McCann responded to Mr. Ardagna's co=ents regarding the need for sidewalks, advising him that the City has started the Castle Park sidewalk program, and has received approval of a BUD 108 loan, which will provide additional funding for additional sidewalks. With no further members of the public wishing to speak, Vice Chairman/Deputy Mayor McCann closed the public hearing. Director/Councilmember Rindone expressed his pleasure with the quality of the proposal and the participation of the independent directors. ACTION: Director Rindone moved approval of staff's reco=endation on Item 3.a, read the heading, waive the text. Director Castaneda seconded the motion for discussion: Director Castaneda then expressed agreement with those speaking in support of the proj ect. He then expressed concerns with the ushering in of a new project in southwest Chula Vista with no Specific Plan in place. Vice Chaim1anJDeputy Mayor McCann stated he really liked the project and the fact that it had no public subsidy and an affordable housing component. Further, in speaking about sidewalks and amenities, the tax increment over the life of this proj ect will be $21 million that can be used for those purposes. He then thanked the Douglas Wilson Companies. for taking the initiative on the property across the street, and that he was not sold on the idea that a specific plan would bring things forward to enhance the co=unity and create revitalization and investment. Vice ChairmanJDeputy Mayor McCann then publicly thanked and expressed accolades for staff and the efforts they put into this proj eeL Vice Chai=anJDeputy Mayer McCann then requested that Item 3.a. be voted on first: Page 6 - CVRC/RDNCC Minutes http ) t2/ /1- November 16,2006 DRAFT 3.a. That the CYRC adopt the following resolution: CVRC RESOLUTION NO. 2006-039, RESOLUTION OF THE CHUL.A VISTA REDEVELOPMENT CORPORATION RECOMME1'!l)ING THAT THE CITY COUNCIL (I) ADOPT MITIGATED NEGATIVE DECLARATION (IS-06-008); (2) INTRODUCE AN ORDINANCE ADOPTING REZONE PCZ- 06-04 FOR A 3.6-ACRE PORTION OF THE SITE FROM S90 COUNTYZONE TO CCP (CENTRAL COiYlMERCIAL PRECISE PLAN) ZONE ALONG WITH THE ESTABLISHMENT OF A PRECISE PLAt'! MODIFYING DISTRICT Mil) STAt'-4l)ARD; (3) APPROVE CONDITIONAL USE PERMIT (pCC-06-026); (4) APPROVE DESIGN REVIEW PERLYllT (DRC-06-35); AND (5) APPROVE TENTATIVE rvW (pCS-06-06) TO ALLOW THE CONSTRUCTION OF 167 MULTI-F AMIL Y liNITS At'lD 3,793 SQUARE FEET OF COLvlJ'vfERCIAL SPACE ON TIffi SITE LOCATED AT 914-944 THIRD AVENUE The motion carried 6-0, with Directors Chavez, Paul, and Chairman Padilla absent. ACTION: Councilmember Rindone moved approval of staffs recommendations on Items 3.b. and 3.c., read the headings, waive the texts, and place the ordinance on fust reading: 3.b. That the City Council adopt the following resolution: RESOLUTION NO. 2006-337, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) ADOPTING MITIGATED NEGATIVE DECLARATION (1S-06-008); (2) APPROVING A CONDITIONAL USE PERMIT (pCC-06-26); (3) APPROVING DESIGN REVIEW PERMIT (DRC-06-35); At'lD (4) APPROVING TENTATIVE MAP (pCS-06-06) TO ALLOW THE CONSTRUCTION OF 167 MULTI-FAMILY UNITS AND 3,793 SQUARE FEET OF COMMERCIAL SPACE ON THE SITE AT 914-944 THIRD A VENl.JE 3.c. That the City Council place on fust reading the following ordinance: ORDINANCE OF THE CITY OF CHULA VISTA APPROVING A REZONE (PCZ-06-04) FROM S90 ZON"E TO CENTRAL COMMERCIAL PRECISE PL.At'! (CC-P) ZON"E Al'lD ESTABLISHING A PRECISE PLA'-I MODIFYING STAJ.'lDARD FOR A 3.6-ACRE PORTION OF A 5.5-ACRE SITE LOCATED AT 912-944 THIRD AVENUE Page 7 - CVRC/RDNCC Minutes ~ j 4J J 6' )v November 16, 2006 DRAFT Councilmember Castaneda seconded the motion and it carried 3-0, with Councilmember Chavez and Mayor Padilla absent. Items 1 and 2 were heard at this time. Vice ChairmanlDeputy Mayor McCann requested Item 4, Chief Executive Officer's Reports be heard at this time. PUBLIC COMMENTS Kevin O'Neill, spoke regarding WiO projects he has that cannot move forward because they are in the Urban Core area and detailed the steps he had taken with staff to advance them, and his request for the establishment of a pipeline policy. Nfr. O'Neill then spoke regarding areas of the Urban Core Specific Plan that he felr were flawed and requested that he be given what he' has by right under the existing zoning, and protect him with a pipeline policy, otherwise, the City has created a temporary taking. Acting Connunity Development Director Hix, stated that a pipeline policy was being worked on to be brought forward as part of the Urban Core Specific Plan, and that the City Attomey's Office had also advised staff of their preference to ABCO, but that they were also aware that they could make other policy reconnendations and were working on potential language. Ms. Hix then noted' that a pipeline policy needed to be consistent citywide, not just within the Urban Core plan. She then asked Nfr. 0 'Neill if he had submitted his proj ect or was in process as typically a pipeline will address people who are somewhere along in the process. Mr. O'Neill stated he had not as it would not be prudent to move ahead at this point. Vice Chairman!Deputy Mayor McCann requested Attorney Shirey and Ms. Hix get together collectively with Nfr. O'Neill and then update the CYRC on the pipeline policy and this particular issue, as the goal is to provide certainty to those who want to invest in Chula Vista. Director Rindone made a referral to staff to have a report on pipeline options for the CYRC and City on the next agenda. Item 4 was heard prior to Public Connents 4. CHIEF EXECUTIVE OFFICER'S REPORTS Interim Chief Executive Director Thomson stated that although the CYRC usually meets on the fourth Thursday of the month, this one falls on Thanksgiving Day and therefore, rather than requesting a meeting, he wished all a Happy Thanksgiving. 5. CHAIRMA1'f'S REPORTS Vice Chairman McCann again thanked staff for their work on the previous project. He then requested staff continue to keep the meetings as scheduled on the second and fourth Thursdays of each month at 6:00 p.m. Page 8 - CVRC/RDAlCC Minutes ht /~/~ c November 16, 2006 DRAFT 6. DIRECTORS' CON!}yfENTS Director Rindone stated that there will be times when business needs to be accelerated and a , meeting will need to be moved, and staff needs flexibility. Vice Chairman McCann stated he agreed with the need to have flexibilitY, but wants to stay on task. Director Rindone clarified it was not his intention to hurt any civic meeting, but that the business of the CVRC needs to be moving at a most judicial rate. He then stated he would be requesting a re-opening of the applicant-filing period for the position of City Manager and that it be extended to December 5, 2006. Director Desrochers noted for the record that Director Paul was not present, as he could not vote on the Creekside Vistas item, as his firm was involved in the project planning. He then expressed frustration and requested consistency with the meeting scheduling. Director Le'i,is stated that one of the reasons for the creation of the CYRC was due to the lack of a focused plan and concurred with Director Castaneda's on the need to get a specific plan and take contr8l to become a fully active body. Director Castaneda stated that a specific plan looks at all kinds of things and tells people what the long-term, long-reaching vision of the City is. He then expressed concerns with wh.y some people seem to get proj ects through and others cannot. ADJOURNNfENT At 7:54 p.m., Deputy MayorNice Chairman McCann adjourned the City Council to its regularly scheduled meeting on November 21, 2006, at 6:00 p.m., and the Chula Vista Redevelopment Corporation and Redevelopment Agency to their regularly scheduled meetings on December 14, 2006, at 6:00 p.m. Dana M. Smith, Secretary Page 9 - CYRC/RDAJCC Minutes f /~ /1 )v November 16,2006 DRAFT MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND A SPECIAL MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA January 9, 2007 6:00 P.M. An Adjourned Regular Meeting of the City Council and a Special Meeting of the Redevelopment Agency of the City of Chula Vista were called to order at 7:47 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT:. Council/Agency Members: Castaneda, McCann, Ramirez, Rindone and Mayor/Chair Cox ABSENT: Council/Agency Authority Members: None ALSO PRESENT: Interim City Manager/Executive Director Thomson, City Attorney/ Agency Counsel Moore, City Clerk Bigelow, and Deputy City Clerk Bennett PUBLIC COMMENTS There were none. ACTION ITEMS 1. CONSIDERATION OF APPROVAL OF EXERCISE OF THE CITY'S/AGENCY'S OPTION TO EXTEND THE CONTRACT WITH ADVOCATION, INe. FOR LEGISLATIVE REPRESENTATION FOR THE 2007-2008 LEGISLATIVE SESSION The current agreement with Advocation, Inc. for the provision of legislative representation in Sacramento throughout the 2005-2006 legislative session has expired. Based on the firm's history of success in promoting Chula Vista's legislative agenda, staffis recommending exercising of the City's Agency's option to extend the contract. Council/Agencymember Rindone suggested including a 10th item in the proposed scope of work to include an oral report to the Council at least twice annually. ACTION: Council/Agencymember Rindone moved to adopt Council Resolution No. 2007- 010 and Redevelopment Agency Resolution No. 2007-1965, as amended to include a 10th item to require an oral report to the Council at least twice annually, heading read, text waived: COUNCIL RESOLUTION NO. 2007-010, REDEVELOPMENT AGENCY RESOLUTION NO. 2007-1965, JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA EXERCISING THE CITY'S OPTION TO EXTEND THE CONTRACT WITH ADVOCATION, INC. FOR LEGISLATIVE REPRESENTATION FOR THE 2007-2008 LEGISLATIVE SESSION, AND AUTHORIZING THE MAYOR/CHAIR TO EXECUTE AN AGREEMENT ON BEHALF OF THE CITY OF CHULA VISTA AND REDEVELOPMENT AGENCY Jt0Jf ACTION ITEMS (Continued) Council! Agencymember Castaneda seconded the motion, and it carried 4-1 with Agency/Councilmember McCann opposing. Council/ Agencymember McCann stated that he could not support the item because he did not receive information prior to the item corning forward and until he is comfortable with the legislative position process and lobbying in Sacramento. Legislative Analyst Colleen Carnevale stated that Charles Cole, President of Advocation Inc., would present a report to the Council at the meeting of February 6, 2007. Council!Agencymember Rindone asked that Mr. Cole also address key topics on the horizon, particularly in light of how cities may be impacted by the Governor's latest proposals. OTHER BUSINESS 2. CITY MANAGERlDIRECTOR'S REPORTS There were none. 3. MAYOR/CHAIR'S REPORTS There were none. 4. COUNCIL/AGENCY MEMBERS' COMMENTS There were none. ADJOURNMENT At 7:57 p.m., Mayor/Chair Cox adjourned the meeting to an Adjourned Regular Meeting of the City Council on January 15, 2007, at 9:30 a.m. in the Council Chambers, and to a Regular Meeting of the Redevelopment Agency on January 11, 2007, at 6:00 p.m. in the Council Chambers. Lorraine Bennett, CMC, Deputy City Clerk / tu /1 DRAFT MINUTES OF REGULAR MEETINGS OF THE CHULA VISTA REDEVELOPMENT CORPORATION (CVRe) AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA January 11,2007 6:00 P.M. Regular Meetings of the Chula Vista Redevelopment Corporation and Redevelopment Agency of the City of Chula Vista were called to order at 6:01 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. CVRC ROLL CALL PRESENT: Directors: Castaneda, Desrochers, Lewis, McCann, Paul, and Chair Cox ABSENT: Directors: Ramirez, Rooney, and Vice Chair Rindone REDEVELOPMENT AGENCY ROLL CALL PRESENT: Agency Members: Castaneda, McCann, and Chair Cox ABSENT: Agency Members: Ramirez, and Vice Chair Rindone ALSO PRESENT: Interim Executive Director/City Manager Thomson, General Counsel/ City Attorney Moore, Chief Financial OfficerlFinance Director Kachadoorian, Acting Community Development Director Hix, Secretary Smith, Housing Manager Mills, Principal Community Development Specialist Lee, Senior Community Development Specialist Do, Community Development Specialist Johnson, Senior Deputy City Clerk Peoples, Community Development Administrative Assistant Donnelly PLEDGE OF ALLEGIANCE, MOMENT OF SILENCE I. APPROVAL OF MINUTES Staff Recommendation: a. That the Redevelopment Agency approve the minutes of November 16,2006. ACTION: Chair Cox stated that due to the absence of Vice Chair Rindone, this item would be continued to the next meeting. / 4- 3-D DRAFT APPROVAL OF MINUTES (continued) b. That the CVRC and Redevelopment Agency approve the minutes of December 14, 2006. ACTION: Director/Agency Member Castaneda, moved approval of the minutes of December 14, 2006. Director Desrochers seconded the motion and it carried 5-0 with Director/Agency Member Ramirez, Vice Chair Rindone and Director Rooney absent, and Director Paul abstaining. 2. WRITTEN COMMUNICATIONS Memorandum from Rudy Ramirez requesting an excused absence from the CVRC and Redevelopment Agency meeting of January 11,2007. Staff recommendation: That the CVRC and Redevelopment Agency excuse the absence. ACTION: Director/Agency Member McCann moved approval of requested excused absence. Director/Agency Member Castaneda seconded the motion and it carried 6-0 with Director/Agency Member Ramirez, Vice Chair Rindone and Director Rooney absent. PUBLIC HEARINGS The following item(s) have been advertised as public hearings as required by law. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the Clerk prior to the meeting. 3. CONSIDERATION OF ADOPTION OF A RESOLUTION AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO EXECUTE A PURCHASE CONTRACT AND RELATED DOCUMENTS FOR SPACE 2 AT ORANGE TREE MOBILEHOME PARK The Redevelopment Agency assisted residents with the purchase of the Orange Tree Mobilehome Park in 1987. Currently, six spaces remain in Agency ownership. It was the Agency's intent to sell the spaces to current or incoming tenants when in a position to purchase. The Agency has received an offer for $47,000 to purchase Space 2. (Continued from the meeting of December 14, 2006) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Housing Manager Mills provided the staff report, which included the background on the purchase of the park. Chair Cox opened the public hearing. Director/Agency Member McCann inquired as to how many spaces were remaining, whether they could be used for relocation of Jade Bay Mobilehome Park residents, and whether Space 2 was being sold at market value. Housing Manager Mills responded that the 5 remaining spaces were currently occupied, and that Space 2 was being sold for $3,500 below the appraised value. Page 2 - CVRC/RDNCC Minutes httlJ:llwww.chulavistaca.gov January II, 2007 )tL)../ DRAFT PUBLIC HEARINGS (continued) With no further members of the public wishing to speak, Chair Cox closed the public hearing. a. That the CVRC adopt the following resolution: CVRC RESOLUTION NO. 2007-001, RESOLUTION OF THE CHULA VISTA REDEVELOPMENT CORPORATION OF THE CITY OF CHULA VISTA RECOMMENDING THAT THE REDEVELOPMENT AGENCY AUTHORIZE THE COMMUNITY DEVELOPMENT DIRECTOR TO EXECUTE A PURCHASE CONTRACT AND RELATED DOCUMENTS FOR SPACE 2 AT ORANGE TREE MOBILEHOME PARK ACTION: Director McCann offered the CVRC Resolution No. 2007-001, heading read, text waived. Director Castaneda seconded the motion and it carried 6-0 with Directors Ramirez, Rooney and Vice Chair Rindone absent. b. That the Redevelopment Agency adopt the following resolution: RDA RESOLUTION NO. 2007-1966, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO EXECUTE A PURCHASE CONTRACT AND RELATED DOCUMENTS FOR SPACE 2 AT ORANGE TREE MOBILEHOME PARK ACTION: Agency Member McCann offered the RDA Resolution, heading read, text waived. Agency Member Castaneda seconded the motion and it carried 3-0 with Agency Member Ramirez, and Vice Chair Rindone absent. PUBLIC COMMENTS There were none. ACTION ITEMS 4. CONSIDERATION OF REDEVELOPMENT YEAR-END REPORTS FOR FY 2005- 2006 The Chula Vista Redevelopment Agency is required to prepare an Annual Report for consideration by its board. California State Health and Safety Code Section 33080.1 requires the report to include the following elements: (1) an independent financial audit report and opinion regarding the Agency's compliance with applicable regulations; (2) the Report of Financial Transactions of Community Redevelopment Agencies (State Controller's Report); and (3) the State Department of Housing and Community Development Schedules A-E. These reports provide detailed information regarding the activities of the Redevelopment Agency. Page 3 - CVRCIRDNCC Minutes httv:/ Iwww.chulavistaca.gov January 11, 2007 / tG ci-:z. DRAFT ACTION ITEMS (continued) Chief Financial Officer/Finance Director Kachadoorian introduced Kathryn Beseau, Partner in the firm of Moreland and Associates, the independent accounting firm who performed the audit. Ms. Beseau explained what was involved in performing an audit including the review of processes in place, and the test of internal controls, policy and procedures. Ms. Beseau then covered the requirements of the Agency under state law, noting that the Redevelopment Agency had received a clean opinion on all aspects. Chief Financial Officer/Finance Director Kachadoorian stated that although Director/Agency Member Ramirez and Vice Chair Rindone were absent this evening, they had been fully briefed on the financial statements. Assistant Finance Director Davis provided a brief Powerpoint presentation on assessed valuations for the combined project areas over the last 10 years (base value vs. increment value for 1995 through 2007); the tax increment values over the last 10 years (1997 to 2006) - noting that the 2002 decrease was due to the devaluation of the Power Plant being reassessed by the State Board of Equalization; a tax increment comparison by project area for Fiscal Year 2005 to Fiscal Year 2006, and the Redevelopment Agency projection of where staff anticipates the Agency's available balance to end in Fiscal Year 2006-2007. Chief Financial OfficerlFinance Director Kachadoorian then provided an overvIew of the financial impacts over the last few years. Director/Agency Member McCann confirmed that the only numbers included in the forecast were those that were anticipated to be spent through the end of the current year, which would include some expenses related to the Urban Core Specific Plan, but that there weren't any major appropriations for proj ects within the redevelopment area at this time. Chief Financial OfficerlFinance Director Kachadoorian stated that the Finance Department and Redevelopment staff were creating a long term fmancial forecast for the Redevelopment Agency to look at where it is anticipated tax increment is going, what the impacts might be from the Power Plant, and projects Council may have approved to date that the benefits of tax increment are not showing at this point. The forecast will only include what Council has approved thus far. Director/Agency Member McCann requested and Ms. Kachadoorian responded to the potential pros and cons of merging the redevelopment areas, stating that there were currently two major merged project areas for financial reasons. One being the BayfrontlTown Centre I Project Area, and the other, referred to as the Merged Project Area, which is comprised of the Southwest, Otay Valley, and Town Centre II Project Areas. In 2000, when consideration was given to combining the project areas for bonding capacity, but due to the Bayfront struggling financially for so long, it was felt that it might hurt the bonding capacity of the merged project area if it were included, so it was not At some point in the future, when projects start occurring on the bayfront and tax increment looks healthy, it would then make sense to merge them to provide more flexibility in terms of allocating resources within all the project areas. Director/Agency Member McCann inquired, and Auditor Beseau responded, that the current debt service would be paid off by 2031 per the debt service schedules for the tax allocation bonds Page 4 - CVRCIRDAlCC Minutes htto://wwwchll J,vi ~taca.gov I tL- cl3 January 11, 2007 DRAFT ACTION ITEMS (continued) included as pages 29, 30, and 31 of the report. Ms. Beseau then reiterated that the Redevelopment Agency had received a clean bill of health. Director/Agency Member McCann commented that the audit shows the importance of the CVRC and the importance of getting projects done to bring in revenue to ensure a healthy Redevelopment Agency. Director/Agency Member Castaneda inquired as to why the tax increment in the Southwest area shows such a large increment increase. Principal Community Development Specialist Lee explained that there have not been any maj or construction proj ects in that area, other than WalMart, however, there has been a lot of property turnover, particularly along Main Street, which has resulted in the property being reassessed. Director/Agency Member Castaneda then inquired as to how much bond indebtedness had been incurred in the Southwest and which projects had been funded. Assistant Finance Director Davis responded that page 31 of the financial statement showed $27.8 million for that combined project area. Chief Financial Officer/Finance Director Kachadoorian confirmed that money is being taken from one redevelopment sub-area, paying debt back and then using it to pay Gateway. Director/Agency Member Castaneda requested staff provide him with a list of where the bond proceeds have gone, and how much investment has been put back in the Southwest area. Director Desrochers requested a list of what projects are actually being accomplished with a breakdown of how much money goes to staff and how much goes to the projects. He also inquired as to the last date the tax allocation bonds could be sold for the Town Centre I, and confmned that on page 3-1, July of 20 18, was the final date. Chair Cox inquired, and Chief Financial Officer/Finance Director Kachadoorian responded, that although there are 11 years remaining in the redevelopment area, and several years are necessary to get the projects up and running, there is a time crunch in that money is being left on the table until action is taken, thus restricting the capacity of money to be brought in. Director Desrochers concluded that to raise money for the Bayfront and Town Centre, it was critical to consider a bond issue within the next year. Staff Recommendation: That the CYRC and Redevelopment Agency accept the Redevelopment Year-End Reports for FY 2005-2006. ACTION: Director/Agency Member McCann moved to accept the reports. Director Desrochers seconded the motion and it carried 6-0 with Director/Agency Member Ramirez, Yice Chair Rindone and Director Rooney absent. Chair Cox confirmed that due to the reassessment of the Power Plant, the tax increment would disappear over the next five years. Director/Agency Member Castanaeda confirmed that the possessory interest tax that Ellis Power is paying to the Port District is what is shrinking. If another power plant is built, it starts allover agam. Page 5 - CYRC/RDAlCC Minutes http://www.chulavistaca.gov / ?L c2Lj January 11,2007 DRAFT ACTION ITEMS (continued) Chief Financial Officer/Finance Director Kachadoorian stated that the [mancial statements would be provided on the City Website for public review. 5. CHIEF EXECUTIVE OFFICER'S REPORTS a. CVRC Web Site Update - Interactive Map Community Development Specialist Johnson provided an update on the CVRC web site, covering the interactive mapping capability that had been added, along with the ability for users to request to be added to and removed from an e-mail subscription list. Chair Cox inquired, and staff responded in the affirmative, that it would be possible to mark completed projects in the future. Director/Agency Member Castaneda inquired as to whether there would be a way in the future to click on a parcel and have a pop up with the building standards in the area. Principal Community Development Specialist Lee responded that Planning and Building had already created an "E Zoning" site that is up and running which accomplishes this and a link could be provided on the CVRC page to that one. He then provided the URL address to the Directors. b. Downtown Parking Management Study Update Director/Agency Member Castaneda recused himself from participation on this item as he owns property within 500 feet of the Civic Parking Garage. He then left the Council Chambers. Senior Community Development Specialist Do provided the staff report stating that the first presentation had been provided in October of 2006. Ms. Do further stated that Rich and Associates had been hired to perform a parking demand analysis; provide community participation and education; and develop a parking improvement program. She then provided an overview of the timeline and financing mechanisms for the study, showing a month-to-month progression, with March of2007, identified for the completion of the analysis and preparation of the [mal report. Ms. Do additionally noted that while this is occurring, the consultant is holding community meetings. April 2007 is estimated for completion of the [mal report, followed by more community meetings, and then May/June of 2007, the final report will be presented to the CVRC and RAC. Rick Rich of Rich and Associates stated he had received good responses from the community and stakeholders, and looked forward to providing a study that will become an active tool to help with the planning of the area with the parking being a part of the economic scheme of the area as well. Director/Agency Member Castaneda returned to the Council Chambers. Page 6 - CVRC/RDAlCC Minutes http://www.chulavistaca.gov /tt-.:J.S- January I I, 2007 DRAFT c. California Redevelopment Association 2007 Annual Conference & EXPO Acting Community Development Director Hix stated that this was an informational item provided to inform the Directors of the upcoming conference. 6. CHAIRMAN'S REPORTS There were none. 7. DIRECTORS' COMMENTS There were none. - ADJOURNMENT At 7:08 Chair Cox adjourned the Redevelopment Agency to their next regularly scheduled meeting on January 25, 2007, at 6:00 p.m. Dana M. Smith, Secretary Page 7 - CVRCfRDAlCC Minutes http://www.chulavistaca.gov / tL ~& January 11, 2007 DRAFT MINUTES OF A SPECIAL MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA February 13, 2007 6:00 P.M. A Special Meeting of the Redevelopment Agency of the City ofChula Vista was called to order at 7:02 p.rn. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLLCALL: PRESENT: Councilmembers: Castaneda, Ramirez, Rindone, and Mayor Cox ABSENT: Councilmembers: McCann (excused) ALSO PRESENT: City Attorney Moore, City Clerk Bigelow, and Deputy City Clerk Bennett PUBLIC COMMENTS There were none. CLOSED SESSION I. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: Assessor Parcel No. 568-043-1400 (0.54-acre vacant site located at 240 Landis Avenue on the northwest corner of Landis venue and Davidson Street) Negotiators: Redevelopment Agency: Ann Hix, Eric Crockett, Rick Ryals, Elizabeth Hull Property Owner: Ulysses Lepe, Century 21 Commercial Under Negotiation: Instructions to negotiators No reportable action was taken on this item. 2. GOVERNMENT CODE SECTION 54956.8 Property: Assessor Parcel No. 568-071-0600 and 568-071-0700 (.25-acre vacant site located at 222 Church Avenue) Negotiators: Redevelopment Agency: Ann Hix, Eric Crockett, Rick Ryals, Elizabeth Hull Property Owner: Lucia Castro and Tom Money Under Negotiation: Instructions to negotiators This item was not discussed and no action was taken. ) tt-- tL1 ADJOURNMENT At 8:55 p.m., Chair Cox adjourned the meeting to the regular meeting of February 22,2007, at 6:00 p.m. in the Council Chambers. Susan Bigelow, MMC, City Clerk Page 2 - RDA Minutes / /L ~f' February 13, 2007 DRAFT MINUTES OF A REGULAR MEETINGS OF THE CHULA VISTA REDEVELOPMENT CORPORATION (CVRe) AND REDEVELOPMENT AGENCY, AND ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA January 25,2007 6:00 P.M. Regular Meetings of the Chula Vista Redevelopment Corporation and Redevelopment Agency, and an Adjourned Regular Meeting of the City Council, of the City ofChula Vista were called to order at 6:01 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. . CVRC ROLL CALL PRESENT: Directors: Desrochers, Lewis, McCann, Paul, Ramirez, Rindone, and Chair Cox ABSENT: Directors: Castaneda, and Rooney REDEVELOPMENT AGENCY ROLL CALL PRESENT: Agency Members: McCann, Ramirez, Rindone, and Chair Cox ABSENT: Agency Members: Castaneda CITY COUNCIL ROLL CALL PRESENT: Councilmembers: McCann, Ramirez, Rindone, and Mayor Cox ABSENT: Councilmembers: Castaneda ALSO PRESENT: Interim Executive Director/City Manager Thomson, General Counsell City Attorney Moore, Assistant General Counsel/Assistant City Attorney Hull, Secretary Smith, Redevelopment Project Manager Crockett, Planning Manager Ladiana, Senior Community Development Specialist Tapia, Senior Deputy City Clerk Peoples, Community Development Administrative Assistant Donnelly PLEDGE OF ALLEGIANCE, MOMENT OF SILENCE 1. APPROVAL OF MINUTES Staff Recommendation: a. That the Redevelopment Agency approve the minutes of November 16, 2006. / 6 ) DRAFT APPROVAL OF MINUTES (continued) ACTION: b. ACTION: Mayor Cox stated that due to the absence of Agency Member Castaneda, and the fact that she and Agency Member Ramirez were not members of the Agency at the time of the November 16,2006 meeting, this item would once again need to be continued. That the CVRC and Redevelopment Agency approve the minutes of January 11, 2007. Director/Agency Member McCann moved to approve the minutes of January 11, 200.7. Director Lewis seconded the motion and it carried 5-0 with Director/Agency Member Ramirez and Vice Chair Rindone abstaining, and Director/Agency Member Castaneda and Director Rooney absent. 2. WRITTEN COMMUNICATIONS ACTION: ACTION: a. Memorandum from Christopher Rooney requesting an excused absence from the CVRC meeting of January 11,2007. Staff recommendation: That the CVRC excuse the absence. Director McCann moved approval of the requested excused absence. Director Ramirez seconded the motion and it carried 6-0 with Director Paul abstaining, and Directors Castaneda and Rooney absent. b. Memorandum from Steve Castaneda requesting an excused absence from the CVRClRedevelopment Agency/City Council meeting of January 25, 2007 Staff recommendation: That the CVRC, Redevelopment Agency, and City Council excuse the absence. Director/Agency Member, Councilmember McCann moved approval of the requested excused absence. Director Desrochers seconded the motion and it carried 7-0 with Director/Agency Member/Councilmember Castaneda, and Director Rooney absent. Vice Chair Rindone inquired as to why his request for excused absence from the meeting of January 11,2007, had not been placed on a revised agenda for tonight's meeting. Senior Deputy City Clerk Peoples stated that it was scheduled for the February 8, 2007 agenda. Page 2 - CVRCIRDAlCC Minutes 1 / 6 ~ lV January 25, 2007 DRAFT PUBLIC HEARINGS 3. CONSIDERATION OF CONDITIONAL USE PERMIT (PCC-07-022) FOR THE ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION OFFICE AT 626 L STREET, WITHIN THE MERGED CHULA VISTA REDEVELOPMENT PROJECT (SOUTHWEST SUBAREA) Conditional Use Permit application for the relocation of the Social Security Administration offices from Third A venue to property located at 626 L Street. Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Planning Manager Ladiana introduced Senior Community Development Specialist Tapia, who presented the staff report and responded to questions of the Council. Mayor Cox opened the public hearing. Director Ramirez made inquiry regarding the operations of the Social Security Administration, and whether the new plan included a way of accommodating those he currently sees standing in lines out front of the building, prior to and during hours of operation. Developer Chris Post responded that the new facility is larger and that the RAC had recommended the installation of benches in the front of the building to accommodate those waiting in line. Director Ramirez expressed concerns for the people waiting in line outside of the building and their possible need for a restroom facility prior to the opening of the office for business and the impacts this will have on other businesses in the area. Chair Cox explained that the developer could not speak to the conduct of the Social Security Administration who is a Federal entity and has certain requirements for their offices. Jon Isaac, applicant, stated that the purpose of the relocation of the Social Security Administration to this facility was to increase the office capacity to eliminate the lines. The proposed new location has double the amount of seating capacity as the current location. Director Ramirez stated he could not support approval of the CUP unless the applicant was willing to guarantee there would be no lines. Chair Cox explained that the Social Security Administration contracts with the developer to build a building to their specifications and that his concerns regarding the operation of the facility was not a tenant improvement issue. Director Ramirez expressed his disagreement, stating he believed that as a condition for the permit, accommodations should be made for the routine operations of this facility, which he felt created a public health issue. Director Lewis responded that the applicant was not liable for this type of thing, and that his concerns should be addressed to the Social Security Administration. Page 3 - CVRC/RDAlCC Minutes htl /6 3 January 25, 2007 DRAFT PUBLIC HEARING (continued) Director Rindone clarified his understanding of Director Ramirez' concerns, being that regardless of the inclusion of additional parking spaces and interior seating, the problem is potentially with customers coming prior to the opening of the facility and standing in lines outside. He suggested direction be included to staff to communicate these concerns to the Social Security Administration, and request an awning or some type of protective covering be provided. City Attorney Moore clarified that the City could not regulate the operation of the facility and if the Social Security Administration did not like the conditions, they would not enter into the agreement for the facility. Director Paul stated that he supported the CUP and wanted to encourage whatever design changes are appropriate. There being no members of the public who wished to speak, Mayor Cox closed the public hearing. 3a. That the CVRC adopt the following resolution: ACTION: Director McCann moved to adopt CVRC Resolution No. 2007-001 heading read, text waived: CVRC RESOLUTION NO. 2007-001, RESOLUTION OF THE CHULA VISTA REDEVELOPMENT CORPORATION RECOMMENDING THAT THE CITY COUNCIL MAKE CERTAIN FINDINGS AND APPROVE CONDITIONAL USE PERMIT PCC-07-022 FOR THE ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION OFFICE AT THE BUILDING LOCATED AT 626 L STREET, WITHIN THE MERGED CHULA VISTA REDEVELOPMENT PROJECT (SOUTHWEST SUB-AREA) Director Ramirez seconded the motion and it carried 7-0 with Directors Castaneda and Rooney absent. 3b. That the City Council adopt the following resolution ACTION: Councilmember McCann moved to adopt Resolution No. 2007-029 heading read, text waived as amended to add language as recommended by City Attorney Moore to Condition 3 after tables, "and appropriate cover to accommodate the queuing of the public": RESOLUTION NO. 2007-029, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING CERTAIN FINDINGS AND APPROVING CONDITIONAL USE PERMIT PCC- 07-22 FOR THE ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION OFFICE AT THE BUILDING LOCATED AT 626 L STREET, WITHIN THE MERGED CHULA VISTA REDEVELOPMENT PROJECT (SOUTHWEST SUB-AREA) Councilmember Ramirez seconded the motion and it carried 4-0 with Councilmember Castaneda absent. Page 4 - CVRC/RDAlCC Minutes ht 16 1-/ January 25, 2007 DRAFT PUBLIC COMMENTS There were none. 4. CHIEF EXECUTIVE OFFICER'S REPORTS There were none. 5. CHAIRMAN'S REPORTS Chair Cox stated that the Council had approved a subcommittee comprised of the Mayor and Deputy Mayor to review the CVRC, and that the subcommittee was submitting a report with the recommendation to remove the City Council from the Board. This report will be submitted to the City Council for consideration at their Regular Meeting on February 6th. Further, that the report will recommend that the City Council forward the subcommittee recommendation to the CVRC for review and public comment at their February 8th meeting. This begins the public process. . 6. DIRECTORS' COMMENTS Director Ramirez stated that he had previously circulated a memorandum with his recommendations on organizational reforms for the CVRC, and requested the City Clerk's Office provide copies to the Independent Directors for review prior to the item coming before them on February 8th. Director Desrochers spoke regarding the vacancy on Third Avenue that the moving of the Social Security Administration office move will create, and expressed concerns about the Specific Plan timetable. He then requested an update on the Urban Core Specific Plan, as well as the Bayfront Gaylord status, along with a report on how the CVRC will be involved in the budget process, how future funding needs will be accommodated, what is the staffing going to be, how will it be paid for, and commented that it appeared the tax increments were designated to pay for staff and not for proj ects. Chair Cox requested an update on the Bayfront be provided at the second meeting in February or when staff felt would be an appropriate date. ADJOURNMENT At 7:07 p.m. Mayor/Chair Cox adjourned the City Council to its regularly scheduled meeting on February 6, 2007, at 4:00 p.m., and the Chula Vista Redevelopment Corporation and Redevelopment Agency to their regularly scheduled meetings on February 8, 2007, at 6:00 p.m. Dana M. Smith, Secretary Page 5 - CVRC/RDAlCC Minutes )iJ ./ !J )v January 25, 2007 DRAFT MINUTES OF A REGULAR MEETINGS OF THE CHULA VISTA REDEVELOPMENT CORPORA nON (CVRC) February 8, 2007 6:00 P.M. A Regular Meeting of the Chula Vista Redevelopment Corporation was called to order at 6:03 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. CVRC ROLL CALL PRESENT: Directors: Castaneda, Desrochers, McCann, Paul, Ramirez, Rooney, Rindone, and Chair Cox ABSENT: Director: Lewis, McCann ALSO PRESENT: Interim Executive DirectorlCity Manager Thomson, General Counsell City Attorney Moore, Assistant General Counsell Assistant City Attorney Hull, Redevelopment Project Manager Crockett, Senior Community Development Specialist Hines, Senior Deputy City Clerk Peoples, Community Development Administrative Assistant Donnelly PLEDGE OF ALLEGIANCE, MOMENT OF SILENCE 1. WRITTEN COMMUNICATIONS a. Memorandum from Jerry Rindone requesting and excused absence from the CVRC meeting of January 11,2007. b. Memorandum from Christopher Rooney requesting an excused absence from the CVRC meeting of January 25, 2007. c. Memorandum from Chris Lewis requesting an excused absence from the CVRC meeting of February 8, 2007. Staffrecommendation: That the CVRC excuse the absences. ACTION: Director Castaneda moved approval of the requests for excused absences. Director Paul seconded the motion. Item I a carried 6-0-1 with Vice Chair Rindone abstaining, and Directors Lewis and McCann absent. Items Ib and Ic carried 7-0 with Directors Lewis and McCann absent. PUBLIC COMMENTS There were none. )); ~ DRAFT ACTION ITEMS 2. PROPOSED REFERRAL FROM THE CHULA VISTA CITY COUNCIL REGARDING CVRC BOARD OF DIRECTORS MEMBERSHIP ISSUES At the February 6, 2007, Council meeting the Council CVRC subcommittee made an oral report to the Council. The subcommittee recommended the council refer to the CVRC for discussion the possibility ofremoving all city Directors (City council members) from the CVRC Board of Directors. The subcommittee also requested that the council refer to the CVRC for discussion the future composition of the Board of Directors and to review appointing criteria. After a brief discussion, the Council referred the matter to the CVRC for diSCUSSIon at its February 8, 2007 meeting. Before the CVRC this evening are redline drafts of the original organizing documents that require amendment in order to implement the removal of the City Directors (City Council members). The redline draft does not change the current number of directors or membership criteria. Chair Cox provided an overview of the item, stating that she and Councilrnember Rindone had volunteered to serve on a Council Subcommittee that was confirmed by the City Council several weeks ago, to look at the structure of the Board of the ChuIa Vista Redevelopment Corporation (CVRe). She then provided background information, stating that she and Director Lewis had served on a committee of ten independent people, who worked for approximately two years to create a plan for submittal to the City Council, for a redevelopment entity that would mirror CCDC in the City of San Diego. The City of Chula Vista had achieved it's Redevelopment Agency status within one year of the City of San Diego achieving its, and the committee of independent people thought that one of the reasons San Diego had accomplished so much, was that they had an independent corporation assisting them. This concept was submitted to the City Council, who accepted the report a year and a half ago, February. However, the actual implementation of that report was different than the report submitted, because the Council at that time, ultimately decided to include as directors on the independent corporation, the five members of the City Council, which were never part of the initial recommendation. Chair Cox stated that when she and Director Rindone met as the Council Subcommittee, they looked at one element only, which was the membership of the CVRC Board of Directors, and they concluded that the placement of the City Councilmembers on that CVRC board, was a reiteration of what was already there, as the City Council sitting as the Redevelopment Agency always has the ultimate authority over redevelopment projects. It is not an authority that can be given away, so any independent board, commission, or in this case corporation, cannot take final action without the City Council as a whole having an opportunity to hear that action and either accept or reject it. The request of the City Council by the Council Subcommittee this past Tuesday, was to take the notion of removing City Councilmembers from the CVRC Board of Directors, to this evenings CVRC meeting to allow for interaction with the audience. Final action being taken this evening is not anticipated, the intent is to see what the Council and CVRC Directors and the publics thoughts were, regarding the construct of the Board only, who should be the membership on the Board only, knowing that the City Council always has the final authority. This has nothing to do with the Redevelopment Advisory Committee (RAC). iiJ 1 DRAFT ACTION ITEMS (continued) Vice Chair Rindone stated that the goals and efforts of the Subcommittee, was to look at the big picture of the role of the City Council. The goal tonight was to obtain lots of input early in the process from the independent and regular directors, and members of the community, regarding the structure of the CVRC. Vice Chair Rindone then reiterated that the item under discussion did not involve the Redevelopment Advisory Committee (RAC). Chair Cox clarified that the recommendation to remove the Councilmembers from the CVRC Board was not taken lightly; however, there were actually two very solid reasons for doing so, one being due to California Environmental Quality Act (CEQA) and other has to do with appeals of decisions. With the Council still on the CVRC Board, appeals of decisions would be presented to the same people who participated in the initial decision. Vice Chair Rindone stated he had initially raised the appeal of CEQA requirements concern in December when another Redevelopment Agency became involved in litigation because of the CEQA review process they had taken. Vice Chair Rindone explained to Director Ramirez that tonight's topic for discussion, the beginning of the process, as previously explained, was to gather information early-on from the members of the RAC, members of the community, Council colleagues, and independent directors. Director Rooney expressed encouragement in the Boards review of the structure. Director Desrochers expressed encouragement by the public participation process being undertaken to provide a fully functional organization to assist redevelopment in moving forward without some of the bureaucratic snags currently being experienced. Director Castaneda stated that the public participation element was the most important part of any government decision-making body. Further, that he had never thought that the City Council should be on the Board, but was curious to know the public views, as he wanted to maintain the protections and the ability for the public to weigh in on what would be happening in their community. Director Paul stated he had the same feelings as those expressed by the other independent directors, that it was important that the process be addressed, and was looking forward to hearing from the public. Further, his understanding of the establishment of the CVRC was to assist in developing some processes and degree of certainty to aid in the objective of redeveloping areas of the community that needed some help organizing, planning and administering the process. The RAC has a key role as is the role of City staff, but the independent corporation was formed to provide fair and open minded review of the facts and help to develop a certainty that will assure developers that there really is a continuum of interest in their process is important, and having independent directors is a valuable part of the process. Additionally, he felt the combination of elected and independent directors on the same board has become confusing. / b ? DRAFT ACTION ITEMS (continued) Chair Cox stated that the following twenty ChuJa Vista residents had submitted speaker cards in opposition to the removal of the City Council from the CVRC, but did not wish to speak: One person, no name given Karen Rattiff Elizabeth Reed Bettie Lupi James Hunt David Street Steve Hilmer Sandy Duncan Sam Longanecker Ivan Loebs Gert Thomson Richard Thomson Helen Cassell Carol Smith Willard Howard Olga Durazo Terry Hanvey, indicated he opposed removal of the Councilmembers, and if removed, stated the CVRC should be disbanded. Charles Ulrich, ChuJa Vista resident, indicated the CVRC should be disbanded. Jeanette Cassel Tayson, indicated she opposed removal of Councilmembers, and ifremoved, the CVRC should be disbanded. Joan Johnson, indicated she opposed removal of Councilmembers, and if removed, the CVRC should be disbanded. The following people were present wishing to speak: John Moot, Chula Vista resident, stated his was encouraged by the review of the CVRC structure and expressed his view that the CCDC in San Diego worked well without elected officials serving on the board. Further that like the RAC, there are separate community groups that provide input, and noted that ultimately the elected officials make the final decision. Russ Hall, Chula Vista resident, provided a brief overview of why the CVRC was created to begin with, stating that the main issue expressed by developers, was how City staff was conducting business and their lack of certain redevelopment expertise. Additionally, he did not feel that a CVRC was needed if the Redevelopment Agency were properly staffed and able to function, as it should. Also, that the City Council should not remain on the CVRe. Mr. Hall then suggested that the new City Manager be allowed to assess staff and the process of how the City conducts business, and then move forward on making a decision as to whether the CVRC was needed or not. /h 9 DRAFT ACTION ITEMS (continued) Director Castaneda requested future speakers state whether or not they feel the CVRC should be eliminated, the Council should be removed from the CVRC, or the Council be removed and additional people be added to the CVRC. Chair Cox reiterated that the item' under discussion was the composition of the CVRC Board only. Director Ramirez requested those speaking, state whether they thought the CVRC should be fixed or dissolved. Jerry Livingston, representing the Building Industry Association and the National Association of Industrial & Office Properties, stated it was important to have the CVRC, but far more important to have the right people with background skills and expertise on the board. He expressed his opinion that City staff was skilled in Greenfield development but not redevelopment and infill development. Further, the only way to have successful redevelopment is to have the people with the needed expertise on the CVRC Board. Peter Watry, Chula Vista resident representing Crossroads II, stated that his organization recommended the CVRC be eliminated as it had not worked, and that the RAC should be retained. Vice Chair Rindone confirmed that the Crossroads recommendation was to eliminate the CVRC and retain the RAC, and inquired as to whether Mr. Watry felt the Planning Commission, Design Review Commission and Resource Conservation Commission should be reinstated, to which Mr. Watry replied yes. Ian Gill, office on Bay Boulevard, stated he had participated in the workshops that led up to the formation of the CVRC, was involved in negotiating one of the first largest redevelopment agreements for the Rohr property in 1987, has been an applicant to CCDC and the Chula Vista Redevelopment Agency, and served as an outsource project executive for the ballpark district for CCDC, so has had an opportunity to see the process from both sides. Mr. Gill spoke in support of the removal of the City Council from the CVRC, and the retaining of the current number of directors under the selection criteria established. Director Ramirez inquired of Mr. Gill as to whether he felt there was a role for the citizens of Chula Vista to play in the redevelopment of the City. Mr. Gill responded that the RAC was appropriate to obtain citizen input, and the CVRC should be comprised of those with technical expertise. Charles Moore, Chula Vista resident, stated he supported the retaining of the RAC and the CVRC with the Councilmembers removed and their positions replaced with experts with a proven track record of finance, design and the other disciplines that make redevelopment viable. Lisa Cohen, Chula Vista resident and CEO of the Chula Vista Chamber of Commerce, stated that the primary responsibility of the CVRC is an independent review and the Council should be removed. Further, that the replacement positions should be filled based on qualifications of ) h ID DRAFT knowledge, training and experience, to provide the expertise for the projects, and the RAC should remain to provide for community input. ACTION ITEMS (continued) Richard D' Ascoli, Chula Vista resident, representative of the Pacific Southwest Association of Realtors, member of the Chula Vista Chamber of Commerce, and member of the RAC, stated that developers appreciate the upfront input from the RAC, but the CVRC should be made up of professionals who are skilled in the building of sensible, environmentally-friendly developments that the community would like and be proud of, with City Council making the final decision. Pamela Bensoussan, Chula Vista resident representing Northwest Civic Association, and Chair of the RAC, stated that the RAC was the only part of the CVRC structure that was working efficiently and should be used to advise the RDA, and the CVRC should be disbanded as it is an unwarranted burden to the taxpayers. Jackie Lancaster, Chula Vista resident, stated that the CVRC should be eliminated, as it is redundant. Earl Jentz, Chula Vista resident stated that the RAC should be retained, the CVRC eliminated, and more transparency provided in redevelopment deals. Margaret Tuite, Chula Vista resident, stated she supported the disbanding of the CVRC and the retaining of the RAC. Bob Crane, Chula Vista resident, stated he supported the comments made by Russ Hall. Further, that the CVRC should be under the Chamber of Commerce, and recommended that the CVRC be eliminated and the RAC retained. Sal Salas, Chula Vista resident, spoke in support of retaining and restructuring the CVRC. Tommy Stedball, Chula Vista resident and property owner in the redevelopment area, stated that the Council should remain on the CVRC Board. Laura Hunter, representing the Environmental Health Coalition, stated that her organization had participated in the original creation of the CVRC and their biggest concern was that it would end up like the CCDC in San Diego. Ms. Hunter then stated that Council should remain on the CVRC as protection for the community residents, and questioned whether a CVRC was necessary separate from the Redevelopment Agency. Further, if determined to be necessary, Ms. Hunter stated the CVRC should be redesigned and residents of affordable housing should be represented on the Board as well. Her number one suggestion was to not have a CVRC and refocus the funds, keep the RAC, and if the CVRC is kept, the Council should remain on it. Jack Stanley, Chula Vista Resident, stated that the Council should not be removed from the CVRC. If removed, distrust would be created. Joe Wavra, Chula Vista resident, stated that the Council should remain on the CVRC. JIJ II DRAFT Frank Zimmerly, Chula Vista resident, stated that the Council should remain on the CVRe. ACTION ITEMS (continued) Mitch Thompson, Chula Vista resident and past Chair of the General Plan Update Committee, stated that the CVRC should be eliminated and the existing structures should be reviewed for streamlining. Chair Cox clarified that of the written comments submitted, 16 opposed taking the Council off the CVRC and four comments indicated that without the Councilmembers, the CVRC should be disbanded. Chair Cox stated -that this concluded the public comments, and now was the opportunity for members of the CVRC to weigh in, and asked them to keep in mind that the intent was for the Council Subcommittee to gather information and corne up with something to bring back to the City Council. Director Ramirez expressed his disagreement with those present suggesting Chula Vista follow the San Diego CCDC model as Chula Vista has more residential properties than San Diego did, so having a Board that mayor may not have Chula Vista residents would be inappropriate. Additionally, he stated it was not just about bringing in redevelopment, but also about quality and character, which requires input from the residents. Director Ramirez then expressed his support for the removal of the Council from the CVRC, with their replacements being qualified Chula Vista community members. With regards to the work of the Council Subcommittee, he hoped that the Subcommittee would take the question on as to whether the CVRC should be eliminated in its entirety. Director Desrochers stated that the comments were well taken, but that based on his over forty years experience in redevelopment, the Council is the regulatory body, and cannot effectively be proactive and have successful redevelopment, whereas an independent board can. Director Castaneda stated that the Council should not be part of the CVRC and should be removed and replaced with community members, but due to budget concerns, the City may not be able to afford a separate entity, and should possibly consider retaining the RAC as a community based advisory committee to assist the Redevelopment Agency and reinstating the Resource Conservation Commission, Design Review Commission, and Planning Commission. Director Paul spoke to the issue of having professional independent directors on the CVRC, noting that they do not have a personal interest by serving, but can bring independent thoughts and provide the open, fair minded review that developers need. Further, the independent directors are not politically or neighborhood motivated, and it is the RAC's role is to provide the neighborhood perspective. Director Rooney stated he would like to see the politics removed from the decision-making process, noting that the creation of the RAC was one of the best accomplishments resulting from the process. Further, that he would like to see an independent CVRC without the /b J/A DRAFT ACTION ITEMS (continued) Councilmembers, and the remaining positions balanced with qualified residents and community members. Vice Chair Rindone thanked everyone for their input and stated that the RAC was unique, unlike the Planning Commission, Design Review Commission, or Resource Conservation Commission, as it was not created with Council appointments, and thus has provided a different kind of input from the community. He then spoke regarding three central themes he heard throughout the discussion that he will be taking to the Subcommittee meeting to assist in the forming of a recommendation. The first being the need for streamlining to be maintained, which is the purpose of the RAC; second, experts are needed to provide assistance with the elected officials ultimately responsible for the final decisions; and third, whether the RACICVRC/RDA or City Council, each has a distinct role and value, and the goal is how to best to address the benefit of all diverse roles into a mechanism that streamlines, keeps the elected officials responsible and accountable. Vice Chair Rindone then committed to the public that their input was critical and will continue to be received, as well as on-going due diligence, with the bottom line of what is best for the community as a whole. Chair Cox thanked those in attendance for their participation and stated that the Council Subcommittee would be taking all of the input received and framing a recommendation with the best interests of the community in mind, to be an opinion to the City Council for consideration. 3. CHIEF EXECUTIVE OFFICER'S REPORTS There were none. 4. CHAIR'S REPORTS There were none. 5. DIRECTORS' COMMENTS Director Desrochers stated he would be unable to be present at the February 22, 2007 meeting and would be submitting a request for an excused absence. ADJOURNMENT At 8:15 p.m., Chair Cox adjourned the meeting to the next Regular Meeting on February 22, 2007, at 6:00 p.m. in the Council Chambers. Dana M. Smith, Secretary I!J /3 RECEIVED Mayor and City Council City Of Chula Vista 276 Fourth Avenue Chula Vista, Ca 91910 mn ~F CHULA ViS d, 619.6915044 - 619.476.5379 FaXefTY OLERK'S OFF iCE 7 JAN 22 A9:39 erlY OF CHUlA VISfA MEMO Saturday, January 20,2007 FROM: Mayor and City Council DeputyMaYOrRin~~ Request for Excused A"nce on Thursday, January 11, 2007 TO: RE: I am requesting that my absence from the Chula Vista Redevelopment Corporation meeting, held on Thursday, January 11, 2007, be excused because I was out of town conducting school business. Thank you for your consideration of this request. jr:sh c1 a-- / City of Chula Vista COUNCILMEMBER JOHN McCANN MEMORANDUM DATE: TO: FROM: CC: SUBJECT: February 13, 2007 Honorable Mayor and Council Council member John McCann City Clerk and City Manager Design District Please excuse my absence for the following: I will be out of town on Thursday, February 8th and will be unable to attend the CVRC scheduled meeting. I will also be unavailable due to medical reasons for the February 13th City Council meeting. Councilman John McCann JM:ag db/ .. .. RED ELC)P,\lE~'~T CORPORATION CHULA VISTA CVRC Board Staff Report - Page 1 Item No. 3 DATE: TO: VIA: FROM: SUBJECT: March 8, 2007 CVRC Board of Directors Redevelopment Agency Board of Directors /' Jim Thomson, Interim ~ef ,ecutive Officer dl Dana Smith, Secretary ~ Ann Hix, Acting Director of Community Development#" Maria Kachadoorian, Chief Financial Officer--1l'K Ann Moore, Agency Counsel (/( yY'\., Amendments to Agreements for Professional Consulting Services Related to the Gaylord Entertainment Project and Westside Revitalization Activities BACKGROUND: On July 2S, 2006, the City Council and Redevelopment Agency jointly approved a Letter of Intent ("La I") between the City, Agency, San Diego Unified Port District, and Gaylord Entertainment Company establishing a framework and foundation for negotiations on the development of a major hotel, convention center, and retail space on the Chula Vista Bayfront. During the past seven months, City staff has been working closely with a team of professional consultants to analyze and negotiate key deal points of the development proposal, as outlined in the LOI. The consulting team includes the financial consulting firms of Harrell and Company and Economic and Planning Systems, and the law firm of Stradling, Yocca, Carlson and Rauth, LLC. Each of these 3-1 Staff Report - Item No. Page 2 firms has extensive experience and technical expertise in municipal finance, real estate development, and redevelopment law, and has been instrumental in the City's and Agency's negotiations with the Gaylord Entertainment Company. To facilitate ongoing negotiations with Gaylord Entertainment, staff is seeking amendments to existing agreements with Harrell and Company, Economic and Planning Systems, and Stradling, Yocca, Carlson and Rauth, LLC to amend specified sections of their scopes of work and provide additional funding for their services. Staff is recommending approval of the contractual amendments and the appropriation of $300,000 of additional Redevelopment Agency funds to facilitate the amendments. The proposed Second Amendment to the EPS contract would also allow EPS to continue to provide consultant support to the Agency to analyze the financial feasibility of development proposals in the City's redevelopment project areas. The Second Amendment would increase the not-to-exceed amount for these redevelopment consulting services by $50,000, which constitutes existing funds in the Redevelopment Agency budget and does not require an additional appropriation of funds. RECOMMENDATION: That the Chula Vista Redevelopment Corporation adopt: Resolution of the Chula Vista Redevelopment Corporation recommending the waiver of the formal consultant selection process and the approval of the first amendment to the agreement with Harrell & Company Advisors, LLC., the waiver of the formal consultant selection process and the approval of the second amendment to the agreement with Economic and Planning Systems, Inc., and the waiver of the formal consultant selection process and the approval of the first amendment to the agreement with Stradling, Yocca, Carlson & Rauth 3 -c:z Staff Report - Item No. Page 3 That the Redevelopment Agency adopt the resolutions below appropriating $300,000 to the services and supplies category from the available balance of the Bayfront/Town Centre I fund. 1. Resolution ef the Redevelopment Agency of the City of Chula Vista waiving the formal consultant selection process and approving the first amendment to the agreement with Harrell & Company Advisors, LLC. for financial consulting services, authorizing the Chair to execute the first amendment, and appropriating the necessary funds 2. Resolution of the Redevelopment Agency of the City of Chula Vista waiving the formal consultant selection process and approving the second amendment to the agreement with Economic and Planning Systems, Inc. as economic and financial advisor for the Bayfront Master Plan, authorizing the Chair to execute the second amendment, and appropriating the necessary funds 3. Resolution of the Redevelopment Agency of the City of Chula Vista waiving the formal consultant selection process and approving the first amendment to the agreement with Stradling, Yocca, Carlson & Rauth for legal services, authorizing the Chair to execute the first amendment, and appropriating the necessary funds DISCUSSION: Financial and Economic Consulting An agreement with Harrell & Company Advisors, LLC and a first amendment to an agreement with Economic & Planning Systems (EPS) was approved on January 10, 2006. The agreement and amendment were approved with the intent of bringing these consulting firms under the leadership of the City's Finance 3-3 Staff Report - Item No. Page 4 Director to gain strategic alignment on the City's financial and economic development goals for the City's Westside. Staff is proposing amendments to existing contracts with Harrell & Company and EPS for ongoing professional services on an as-needed basis for the Redevelopment Agency for consultation on financing strategies and fiscal and economic consulting services related to new development within the Bayfront Master Plan area that includes the development proposal by Gaylord Entertainment (Gaylord) for a hotel and convention center. Services for EPS will include analysis of other development proposals throughout the Agency project areas. Legal Services The City entered into a Legal Services Agreement dated May 12, 2006 with Stradling, Yocca, Carlson and Rauth, LLC (SYCR). SYCR have advised, assisted, and represented City in legal matters regarding the proposed development by Gaylord in the Bayfront Master Plan Area, including negotiations with Gaylord and the San Diego Unified Port District. The services to be performed by SYCR shall consist of any and all tasks reasonably required to advise, assist and fully represent the City and the Agency in all legal matters regarding the proposed development by Gaylord in the City's Bayfront, project negotiations with Gaylord and the San Diego Unified Port District and implementation of development plans for the larger Bayfront development project. SYCR services shall include, but are not limited to, negotiating and drafting documents including a convention center sublease, an operating agreement for the proposed convention center, a corporate guaranty, documentation related to the proposed Gaylord purchase of convention center bonds, documentation of any pay-as-you-go arrangement with Gaylord, 3-1 Staff Report - Item No. Page 5 appropriate CC&Rs, and any and all reasonably required legal representation on behalf of the City. DECISION MAKER CONFLICTS Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(l) is not applicable to this decision. FISCAL IMPACT: The financial analysis, consulting services and legal services are performed for the Gaylord project that is located in the Bayfront/Town Centre I project area. Therefore the contract amendments will be funded by the Agency. The total fiscal impact to the Agency is $300,000 and is comprised of: . Appropriation for Harrell and Company amendment not-to-exceed amount of $25,000 · Appropriation for Economic and Planning Systems amendment not-to- exceed amount of $115,000 · Appropriation for Stradling, Yocca, Carlson and Rauth amendment not- to-exceed amount of $160,000 The total amount of the amendment for Economic and Planning Systems is $165,000 that includes the above appropriation and $50,000 using existinq appropriations within the current year Agency budget. ATTACHMENTS: 1. First Amendment to Agreement with Stradling, Yocca, Carlson and Rauth 2. First Amendment to Agreement with Harrell & Company 3-6 Staff Report - Item No. Page 6 3. Second Amendment to Agreement with Economic & Planning Systems 4. January 10, 2006 Staff Report PREPARED BY: Phillip Davis, Assistant Director of Finance ~3-~ CVRC RESOLUTION NO. WHEREAS, the Redevelopment Agency of the City of Chula Vista ("Agency") and Harrell & Company Advisors, LLC ("Harrell") entered into an Agreement dated January 10, 2006 for financial consulting services related to the development of tax increment projections and cash flow plans that address the funding of economic development projects of the Agency and the City of Chula Vista ("City"); and RESOLUTION OF THE CHULA VISTA REDEVELOPMENT CORPORATION RECOMMENDING THE WAIVER OF THE FORMAL CONSULTANT SELECTION PROCESS AND THE APPROVAL OF THE FIRST AMENDMENT TO THE AGREEMENT WITH HARRELL & COMPANY ADVISORS, LLC., THE WAIVER OF THE FORMAL CONSULTANT SELECTION PROCESS AND THE APPROVAL OF THE SECOND AMENDMENT TO THE AGREEMENT WITH ECONOMIC AND PLANNING SYSTEMS, INC., AND THE WAIVER OF THE FORMAL CONSULTANT SELECTION PROCESS AND THE APPROVAL OF THE FIRST AMENDMENT TO THE AGREEMENT WITH STRADLING, YOCCA, CARLSON & RAUTH, AND RECOMMENDING THE APPROPRIATION OF THE NECESSARY FUNDS WHEREAS, the Agency and Economic and planning Systems, Inc. ("EPS") entered into an Agreement dated June 28, 2005 ("Original Agreement") where EPS agreed to provide independent economic advice in support of future dealings regarding economic and fiscal relationships among the San Diego Unified Port District ("Port"), prospective lessees of Port- controlled lands, private owners of property within the Bayfront Master Plan area, and the City; and WHEREAS, the City and EPS entered into the First Amendment to the Original Agreement dated January 10, 2006, where EPS agreed to develop a Fiscal Impact Model to analyze the fiscal impacts of new development within the Bayfront Master Plan area; and WHEREAS, the Agency and the City are in negotiations with Gaylord Entertainment Corporation ("Gaylord") for the proposed development of a hotel and convention center in the Bayfront Redevelopment Project Area; and WHEREAS, the City and Stradling, Yocca, Carlson & Rauth ("Attorneys") entered into a Legal Services Agreement dated May 12, 2006 for legal advise and assistance regarding the proposed development by Gaylord; and WHEREAS, to further the negotiations with Gaylord, staff recommends that Harrell develop tax increment projections and cash flow analysis that address the funding of the proposed Gaylord development, that EPS analyze the financial feasibility of the proposed Gaylord development using its Fiscal Impact Model and conduct a peer review on the Economic .J cu I CVRC Resolution No. 2007- Page 2 Research Associates fiscal model and pro forma, and that the Attorneys advise and assist the Agency and the City with more detailed and complex negotiations with Gaylord; and WHEREAS, staff recommends the Agency waive the formal consultant selection process outlined in Municipal Code section 2.56.110 because the proposed scopes of work for the amendments to the agreements for Harrell, EPS, and Attorneys are a natural extension of their on-going work for the Agency and the City, making it impractical to solicit proposals. . NOW THEREFORE, BE IT RESOLVED that the Chula Vista Redevelopment Corporation recommends the waiver of the formal consultant selection process and the approval of the First Amendment to the agreement with Harrell & Company Advisors, LLC., the waiver of the formal consultant selection process and the approval of the Second Amendment to the agreement with Economic and Planning Systems, Inc., and the waiver of the formal consultant selection process and the approval of the First Amendment to the agreement with Stradling, Y occa, Carlson & Rauth. BE IT FURTHER RESOLVED that the Chula Vista Redevelopment Corporation recommends the appropriation of the necessary funds. Approved as to form by: Presented by: Maria Kachadoorian Director of Finance v~:~ ~,~ Ann Moore General counsel J:ICOMMDEVlCVRCICVRC MeetingsIStaffReportsI2007\03-08-07\Gaylord ConsultantslCVRC Reso_Amendments to EPS Harrell and Stradling Agreements.doc .3 tt-- d... RDA RESOLUTION NO. WHEREAS, the Redevelopment Agency of the City of Chula Vista ("Agency") and Harrell & Company Advisors, LLC ("Harrell") entered into an Agreement dated January 10, 2006 for financial consulting services related to the development of tax increment projections and cash flow plans that address the funding of economic development projects of the Agency and the City of Chula Vista ("City"); and RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND APPROVING THE FIRST AMENDMENT TO THE AGREEMENT WITH HARRELL & COMPANY ADVISORS, LLC. FOR FINANCIAL CONSULTING SERVICES, AUTHORIZING THE CHAIR TO EXECUTE THE FIRST AMENDMENT, AND APPROPRIATING THE NECESSARY FUNDS WHEREAS, the Agency and the City are in negotiations with Gaylord Entertainment Corporation ("Gaylord") for the proposed development of a hotel and convention center in the Bayfront Redevelopment Project Area; and WHEREAS, staff recommends that Harrell develop tax increment projections and cash flow analysis that address the funding of the proposed Gaylord development; and WHEREAS, staff is proposing the approval of the First Amendment to the Original Agreement expanding Harrell's scope of work and increasing the compensation to Harrell an additional $5,000; and WHEREAS, staff recommends the Agency waive the formal consultant selection process outlined in Municipal Code section 2.56.110 because Harrell's proposed scope of work for this First Amendment is a natural extension of its on-going work for the Agency and the City, making it impractical to solicit proposals. NOW THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of Chula Vista that it waives the formal consultant selection process outlined in Municipal Code section 2.56.110. BE IT FURTHER RESOLVED by the Redevelopment Agency of the City ofChula Vista that it approves the First Amendment to the Agreement between the Redevelopment Agency of the City of Chula Vista and Harrell & Company Advisors, LLC. and authorizes the Chair to execute the First Amendment. BE IT FURTHER RESOLVED by the Redevelopment Agency of the City ofChula Vista that it appropriates $25,000 to the services and supplies category of the BayfrontlTown Centre I Fund from the available balance of that Fund. 36) RDA Resolution No. 2007- Page 2 Presented by: Approved as to form by: Maria Kachadoorian Agency Treasurer ,_ ~ ,1 ~'~.a..... 11A.<:~ Ann Moore - General Counsel J:ICOMMDEVlCVRCICVRC MeetingsIStaffReportsI2007103-08-07IGaylord ConsultantslRDA Reso-Harrell First Amendment Financial Consulting. doc :3hrQ FIRST AMENDMENT TO AGREEMENT BETWEEN REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AND IlARRELL & COMPANY ADVISORS, LLC RECIT ALS WHEREAS, the Redevelopment Agency of the City of Chula Vista ("the Agency") and Barrell & Company Advisors, LLC ("Consultant") entered into an Agreement dated January 10,2006 for financial consulting services related to the development oHax increment projections and cash floW plans that address the funding of economic development projects of the Agency and the City of Chula Vista ("City"); and WHEREAS, the Agency and the City are in negotiations with Gaylord Entertainment Corporation ("Gaylord") for the proposed development of a hotel and convention center ("Project") in the Bayfront Redevelopment Project Area; and WHEREAS, the Agency wishes Consultant to develop tax increment projections and cash flow anaJysis that address the funding of this proposed Project; and NOW THEREFORE, the Agency and Consultant agree as follows: AGREEMENT 1. Section 4, Term, is deleted in its entirety and replaced with the following: This Agreement shall terminate on December 31,2007." 2. Exhibit A, Section 1, Effective Date of Agreement, is deleted in its entirety and replaced with the following: "March 8, 2007." 3. Exhibit A, Section 7, General Duties, is amended as follows: After "economic development projects", add "including the proposed Gaylord hotel and convention center project" . 4. Exhibit A, Section 8, Scope of Work and Schedule, Subsection A, Detailed Scope of Work, Task 2, Ongoing Analytical Support, add the following: o "In consultation with the Agency's and City's bond counsel, development of alternative fmancing structures that achieve the objectives of the Letter oflntent between the Agency, the City, the San Diego Unified Port District and Gaylord filed with the San Diego Unified Port District on August 3, 2006." o "Analysis and response to concepts and refinements put forth by Gaylord." 1 '7 j, -3 o "Development of cashflow models that demonstrate the financing structure for the proposed Gaylord hotel and convention center." 5. Exhibit A, Section 8, Scope of Work and Schedule, Subsection D, Date for Completion of all Consultant Services, is deleted in its entirety and replaced with the following: "December 31, 2007, unless extended at the sole discretion of the Agency." 6. Exhibit A, Section 11, Compensation, Subsection A (l), "$20,000" is deleted and replaced with "$25,000". All other terms of the Agreement as modified by this First Amendment to the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the Agency and Consultant have executed this First Amendment to the Agreement indicating that they have read and understood the provisions of the First Amendment, and indicate their full and complete consent to its tenns. Attest: Redevelopment Agency of the City of Chula Vista By: Cheryl Cox, Mayor Susan Bigelow Approved as to form: Harrell & Company Advisors Ann Moore, City Attorney _ UQvU---.- By: Exhibit List to First Amendment: (X) Agreement dated J allUary 10, 2006 J:\Attomey\ELlSA\AGREEIv1ENTS\Harrell First Amendment - financial consulting. doc aN1 RDA RESOLUTION NO. WHEREAS, the Redevelopment Agency of the City of Chula Vista ("City") and Economic and Planning Systems, Inc. ("EPS") entered into an Agreement dated June 28, 2005 ("Original Agreement") where EPS agreed to provide independent economic advice in support of future dealings regarding economic and fiscal relationships among the San Diego Unified Port District ("Port"), prospective lessees of port-controlled lands, private owners of property within the Bayfront Master Plan area, and the City; and RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND APPROVING THE SECOND AMENDMENT TO THE AGREEMENT WITH ECONOMIC AND PLANNING SYSTEMS, INC. AS ECONOMIC AND FINANCIAL ADVISOR FOR THE BA YFRONT MASTER PLAN, AUTHORIZING THE CHAIR TO EXECUTE THE SECOND AMENDMENT, AND APPROPRIATING THE NECESSARY FUNDS WHEREAS, the City and EPS entered into the First Amendment to the Original Agreement dated January 10, 2006, where EPS agreed to develop a Fiscal Impact Model to analyze the fiscal impacts of new development within the Bayfront Master Plan area; and WHEREAS, the City is in negotiations with Gaylord Entertainment Corporation ("Gaylord") for the proposed development of a hotel and convention center in the Bayfront Master Plan Area; and WHEREAS, staff recommends that EPS analyze the financial feasibility of the proposed Gaylord development using its Fiscal Impact Model, conduct a peer review on the Economic Research Associates fiscal model and pro forma, and analyze other proposed development throughout the Agency redevelopment project areas; and WHEREAS, staff is proposing the approval of the Second Amendment to the Original Agreement expanding EPS' scope of work and increasing the compensation to EPS an additional $115,000; and WHEREAS, staff recommends the Agency waive the formal consultant selection process outlined in Municipal Code section 2.56.110 because EPS' proposed scope of work for this Second Amendment is a natural extension of its on-going work for the Agency, making it impractical to solicit proposals. NOW THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of Chula Vista that it waives the formal consultant selection process outlined in Municipal Code section 2.56. 110. 5c~ J RDA Resolution No. 2007- Page 2 BE IT FURTHER RESOLVED by the Redevelopment Agency of the City of Chula Vista that it approves the Second Amendment to the Agreement between the Redevelopment Agency of the City of Chula Vista and Economic & Planning Systems, Inc. and authorizes the Chair to execute the Second Amendment. BE IT FURTHER RESOLVED by the Redevelopment Agency of the City ofChula Vista that it appropriates $115,000 to the services and supplies category of the BayfrontlTown Centre I Fund from the available balance ofthat Fund. Presented by: Approved as to form by: Maria Kachadoorian Agency Treasurer ~.. )" /~ii./..{;/1~ Ann Moore General Counsel JICOMMDEV\CVRCICVRC MeetingslStaff Reports\2007\03-08-07IGaylord ConsultantslRDA Reso- EPS Second Amendment Bayfront Master Plan add Gayrord.doc 3c/2 SECOND AMENDMENT TO AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AND ECONOMIC & PLANNING SYSTEMS, INC. For the provision of Consulting Services consisting of economic evaluation and strategic support for the City in the matter of the Bayfront Master Plan and attendant development proposals. This Second Amendment is entered into effective March 8, 2007 by and between the Redevelopment Agency of the City of Chula Vista ("City") and Economic & Planning Systems, Inc. ("Consultant"), with reference to the following facts: RECITALS WHEREAS, the City and Consultant entered into an Agreement dated June 28, 2005 ("Original Agreement") where Consultant agreed to provide independent economic advice in support of future dealings regarding economic and fiscal relationships among the San Diego Unified Port District ("Port"), prospective lessees of port-controlled lands, private owners ofpropeliy within the Bayfront Master Plan area, and the City; and WHEREAS, the City and Consultant entered into the First Amendment to the Original Agreement dated January 10, 2006, where Consultant agreed to develop a Fiscal Impact Model to analyze the fiscal impacts of new development within the Bayfront Master Plan area; and WHEREAS, the City is in negotiations with Gaylord Entertainment Corporation ("Gaylord") for the proposed development of a hotel and convention center ("Project") in the Bayfront Master Plan Area; and WHEREAS, staff wants Consultant to analyze the [mancial feasibility of the proposed Gaylord development using its Fiscal Impact Model and conduct a peer review on the Economic Research Associates fiscal model and pro fonna. NOW THEREFORE, the City and Consultant agree as follows: AGREEMENT 1. Exhibit A, Section 8, Scope of Work and Schedule, Subsection A, Detailed Scope of Work, Task 2, Ongoing Analytical and Negotiation Snpport, is deleted in its entirety and replaced with the following: "Consultant will provide ongoing analysis, strategic input and negotiation support as requested by the City for the Bayfront Master plan and/or projects within Western Chula Vista. This work may include, but not be limited to: . 1 3 3c o Analysis of specifIc marketing, fInancial and organizational issues related to the financing structure; o Analysis and response to concepts and refinements put forth by the Port, Gaylord, or other stakeholder; o Strategic and procedural advice on the proposed Gaylord development and on other prospective developer and/or prospective Port tenant negotiations; o Fiscal and economic analyses of the proposed Gaylord development and other specific development concepts; o Strategic and procedural advice on inter-jurisdictional financial and govemance agreements; and o Assessment and specification of fees or other project-specific funding mechanisms associated with the proposed Gaylord development and other projects." 2. Exhibit A, Section 8, Scope of Work and Schedule, Subsection A, Detailed Scope of Work, Task 3, Development of Fiscal Impact Model, add the following after subsection 3.7: "3.8 Consultant shall use the Fiscal Impact Model to evaluate the financial feasibility of the proposed Gaylord development under different assumptions regarding the sources and uses of funds, including Port lease revenues, developer equity, redevelopment tax increment, and other potentially available sources. Consultant shall use the Model to estimate the "gap" financing necessary for project feasibility, and to analyze alternative financing strategies under different development assumptions." 3. Exhibit A, Section 8, Scope of Work and Schedule, Subsection A, Detailed Scope of Work, add the following after Task 3 - Development of Fiscal Impact Model, subsection 3.8: "Task 4 _ Peer Review and Incorporation of Economic Research Associates CERA") Modeling Inputs. Consultant shall conduct a peer review of the fiscal model and pro forma prepared by ERA. If the necessary information is incomplete or needs further verification or refinement, Consultant will do research and analysis to provide reliable date and assumptions for the ongoing modeling and analysis efforts." -? 7 ,I ~ (1j-'7 4. Exhibit A, Section 8, Scope of Work and Schedule, Subsection D, Date for Completion of all Consultant Services, is deleted in its entirety and replaced with the following: "December 31, 2007." 5. Exhibit A, Section 11, Compensation, Subsection C, Hourly Rate Arrangement, subsection (1), Not-to-Exceed Limitation on Time and Materials Arrangement, add the following to the end of the paragraph beginning with "Notwithstanding the expenditure by Consultant. . ." "Consultant shall perform all oflhe services outlined in this Second Amendment to the Original Agreement for $165,000, including all materials, and other rein}bursables. This is the maximum compensation." All other te1111S of the Agreement as modified by this Second Amendment to the Original Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the City and Consultant have executed this Second Amendment to the Original Agreement indicating that they have read and understood the provisions of the Second Amendment, and indicate their full and complete consent to its terms. Attest: The Redevelopment Agency of the City of Chula Vista By: Cheryl Cox, Chair Susan Bigelow Approved as to fonll: Economic & Plalming Systems, Inc. By: ~/t. Jw6~ James Musbach, Managing Principal Aml Moore, Agency Counsel Exhibit List to Second Amendment: Agreement dated June 28, 2005 First Amendment to the Original Agreement dated January 10, 2006 .I:\Altollley\ELISA\AGREEMENTS\EPS Second Amendment ~ Bayti"Onl Master Pbn adding Gaylord FinaLdoc ?; C~ /;- RDA RESOLUTION NO. WHEREAS, the City of Chula Vista and Stradling, Yocca, Carlson & Rauth ("Attorneys") entered into a Legal Services Agreement dated May 12,2006 for legal advise and assistance regarding the proposed development by Gaylord Entertainment Corporation ("Gaylord") of a hotel and convention center in the Bayfront Master Plan Area; and RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND APPROVING THE FIRST AMENDMENT TO THE AGREEMENT WITH STRADLING, YOCCA, CARLSON & RAUTH FOR LEGAL SERVICES, AUTHORIZING THE CHAIR TO EXECUTE THE FIRST AMENDMENT, AND APPROPRIATING THE NECESSARY FUNDS WHEREAS, the Redevelopment Agency of the City of Chula Vista ("Agency"), together with the City, is embarking on more detailed and complex negotiations with Gaylord and wishes to have Attorneys advise and assist with those further negotiations; and WHEREAS, staff is proposing the approval of the First Amendment to the Agreement expanding Attorney's scope of work and increasing the compensation to Attorneys an additional $160,000; and WHEREAS, staff recommends Council and the Agency waive the formal consultant selection process outlined in Municipal Code section 2.56.110 because Attorney's proposed scope of work for this First Amendment is a natural extension of its on-going work for the Agency and the City, making it impractical to solicit proposals. NOW THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of Chula Vista that it waives the formal consultant selection process outlined in Municipal Code section 2.56. I 10. BE IT FURTHER RESOLVED by the Redevelopment Agency of the City of Chula Vista that it approves the First Amendment to the Agreement between the City of Chula Vista and Stradling, Y occa, Carlson & Rauth and authorizes the Chair to execute the First Amendment. BE IT FURTHER RESOLVED by the Redevelopment Agency of the City ofChula Vista that it appropriates $160,000 to the services and supplies category of the BayfrontlTown Centre I Fund from the available balance of that Fund. Presented by: Approved as to form by: , . )-7 ,1 j1 -J....-' (jJ~ .",-- t,v /,- /, v-~c Ann Moore Agency Counsel ~~2~A t1 ~~;:t;-- Ann Moore Agency Counsel J:ICOMMDEV\CVRCICVRC MeetingslStaff Reports12007103-08-07lGaylord ConsultantslRDA Reso-Stradling First Amendmentdoc 3d / This FIRST AMENDMENT TO LEGAL SERVICES AGREEMENT is entered into this 8th day of March 2007, by and between the City of Chula Vista ("CITY") and Stradling, Y occa, Carlson & Rauth, a professional corporation ("ATTORNEYS"). FIRST AMENDMENT TO LEGAL SERVICES AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND STRADLING, YOCCA, CARLSON & RAUTH RECIT ALS The following recitals are a substantive part of this First Amendment to Legal Services Agreement: A. CITY and ATTORNEYS entered into a Legal Services Agreement dated May 12,2006. B. ATTORNEYS have advised, assisted, and represented CITY in legal matters regarding the proposed development by Gaylord Entertainment Corporation ('"Gaylord") in the Bayfront Master Plan Area, including negotiations with Gaylord and the San Diego Unified Port District. C. CITY, along with the Redevelopment Agency of the City of Chula Vista (.. Agency"). is embarking on more detailed and complex negotiations with Gaylord and wishes to have ATTORNEYS advise and assist with those further negotiations. THE PARTIES MUTUALLY AGREE AS FOLLOWS: AGREEMENT Section 2. Services to be provided, is deleted in its entirety and replaced with the following: "The services to be performed by ATTORNEYS shall consist of any and all tasks reasonably required to advise, assist and fully represent the CITY and the Agency in all legal matters regarding the proposed development by Gaylord Entertainment C'Gaylord") in the City's Bayfront. project negotiations with Gaylord and the San Diego Unified Port District and implementation of development plans for the larger Bayfront development project. ATTORNEY'S services shall include, but are not limited to, negotiating and drafting documents including a convention center sublease, an operating agreement for the proposed convention center, a corporate guaranty, documentation related to the proposed Gaylord purchase of convention center bonds, documentation of any pay-as-you-go arrangement with Gaylord, appropriate CC&Rs, and any and all reasonably required legal representation on behalf of the CITY." ?, ~{ /) , L .e_ -".~ Section 3.2, Maximum Compel/satiol/. is deleted in its entirety and replaced with the following: "For performance of the legal services as required pursuant to this First Amendment to Legal Services Agreement, CITY shall pay ATTORNEYS for the productive hours of time and material spent in the performance of the services, at the rates set forth above. At such time as A TTOR'''JEYS shall have incurred time and materials equal \0 S 160,000. ATTORNEYS shall not be entitled \0 any additional compensation without further authorization issued in writing. Nothing in this Section 3.2 shall preclude ATTORNEYS trom providing additional services at ATTORi'it:YS own cost and expense" All other tem1S of the Legal Services Agreement as modified by this First Amendment to the Legal Services Agreement shall remain in full force and effect (NEXT PAGE IS SIGNATURE PAGE) ;2 )2 "1 R -'" \ SIGNATURE PAGE FIRST A:vlENDMENT TO LEGAL SERVICES AGREEMENT STRA.DLlNG. YOCCA. CA.RLSON & RAUTH [N WITNESS WHEREOF, these parties have executed this Agreement on the day and year shown on the first page of this Agreement. CITY OF CHeLA VISTA STRADLING. YOCCA, CARLSON & RAUTH, a Professional Corporation By: By: .../; /l /i ;/ / ~ ._.~_./ /,4 i/ '/ / ("-~/A if / ~L----::fc/$--~-"\/ (L/J/ ~_,/' ~~~U~__"'___: Robert 1. W!;litlen, Esq. I Vice Pres\&nt and Secretary Jim Thomson Interim City Manager A 11EST By: Susan Bigelow City Clerk Approved as to Form: B\': Ann Y. 'v[oorc City Attorne\' I \::O'N';. LI]~.-\,'\GI\IT,\IU\TS STH....-\I1U:\t; f;r": _'\r:\c:,b1C:~L,i\::,i.: ,~ 3 I j / /')[}. I ATTACHMENT JOINT REDEVELOPMENT AGENCY ICITY COUNCIL AGENDA STATEMENT .., ITEM NO.: '.~ MEETING DATE: 1/10/06 ITEM TITLE: RESOLutiON APPROPRIATING FUNDS FOR AN AGREEMENT WITH HARRELL & COMP ANY ADVISORS. LLC TO SERVE AS FINANCIAL ADVISORS; RESOLUTION WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND APPROVING THE fiRST AMENDMENT TO THE AGREEMENT WITH ECONOMIC & PLANNING SYSTEMS; AUTHORIZING THE MAYOR TO EXECUTE THE AMENDMENT; AND APPROPRIATING fUNDS THEREFORE RESOLUTION WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND APPROVING THE fiRST AMENDMENT TO THE AGREEMENT WITH ROSENOW SPEV ACEK GROUP; AUTHORIZ1NG THE MAYOR TO EXECUTE THE AMENDMENT; AND APPROPRIATING FUNDS THEREFORE REVIEWED BY; ASSIST ANT CITj'.. JAANAGER/DIRECTOR DEVELOPMENT ~ DIRECTOR Of FINANCE 1 TREASURER vfn CITY MANAGER. EXECUTIVE DIRECTOR f Of COMMUNITY SUBMITTED BY: 4/5THS VOTE: YES 0 NO 0 BACKGROUND The City of Chula Vista is entering a critical time period in which the Council will consider many interrelated financial decisions affeCTIng Westem Chula Vista. Under Council leadership, numerous significant projects are underway that demand comprehensive financial analysis and development of key strategic positions. These include the Urban Core Specific Plan and resulTIng public faciliTIes financing needs. the Bayfront planning efforts. the five Exclusive Negotiating Agreements for Development in the Urban Core, the potential dismantling of the power Plant and the overall continued efforts to revitalize Westem Chula Vista. The City departments that are managing key projects are using different consulting firms each with a particular and cntical expertise. This proposal brings together those consulting firms under the leadership of the City's Rnance Director to gdn strategic alignment on the City's financial and economic development goals for the City's Westside. In addition to the work each of these firms is 2-1 3 e_ I PAGE 2. ITEM NO.: MEETING DATE: 2- 1110106 now under contract to perform, they will be asked to provide analysis of marketing, financiol, and organizational direction related to the specific. projects and programs now underway in Chula Vista and to provide strategic and procedural advice on inter- jurisdictional financial and governance agreements, such as Bayfront, from an integrated perspective. staff is proposing a -new contract with Harrell & Co.. and amendments to existing contracts with EPS ond RSG, for ongoing professional services on an os-needed bosis with the City and Redevelopment Agency for consultation on City and Redevelopment projects. financing strategies and general fiscal and economic consulting services. RECOMMENDATIONS That Council and the Agency: 1. Adopt the joint resolution appropriating $10,000 from the available balance in the General Fund in fiscal year 2006, to the Finance Department. supplies and services category, and $10,000 from the available balance of the Redevelopment Agency Merged project Area Fund in fiscal year 2006 to the supplies and services category, for an agreement with Horrell & Company Advisors. LLC to serve as financial advisors to the City and Redevelopment Agency. 2. Adopt the joint resolution approving the first amendment to the agreement with Economic & planning Systems, authorizing the Mayor to execute the amendment, and appropriating $32,500 from the available balance of the General Fund in fiscal year 2006 to the Finance Department, supplies and services category, and $32,500 from the available balance of the Redevelopment Agency Merged Project Area Fund in fiscal year 2006, to the supplies and services category. 3. Adopt the joint resolution approving the first amendment to the agreement with Rosenow Spevacek Group, authorizing the Mayor to execute the amendment, and appropriating $50,000 from the available balance of the Redevelopment AgenCY Merged Project Area fund in fiscal year 2006, to the supplies and services category. BOARDS/COMMISSIONS RECOMMENDATIONS Not applicable. DISCUSSION This team will provide the City and Redevelopment Agency expertise in real estate economies, pro forma and fiscal impact anaiyses and project specific advice on 2-2 ------- -'-- - - - -- 3e,A, PAGE 3, ITEM NO.: MEETING DATE: '2- 1/10/06 redevelopment aclivities. Staff is recommending the following three consulting firms for this team. each with their own distinct and unique areas of expertise and scope: . Harrell & Com an Advisors LLC "H II & Co." - Suzanne Horrell. the principal representative of Harrell 8. Co.. has served as financial advisor on the 2000 Tax Allocation Bonds for the Redevelopment Agency and various City Certificates of Participation over the past 5 years. Ms. Harrell entered into a contract with the City on December 5. 2000. to serve as the City's financial advisor in relation to the financing of the Civic Center Project. Ms. Harrell is currently assisting in the second phase of Civic Center financing with an estimated fee of approximately $50.000. which will be based on the final par value of the bonds. In addition. on March 22. 2005. the City Council authorized a contract with Ms. Harrell, for a fixed fee of $10.000 to update the Redevelopment Agency's Financial Plan incorporating recent changes in the project areas and assessing potential financial impacts related to the dismantling of the power plant. Her expertise in redevelopment financing will be beneficial as various funding options are discussed. The City's Purchasing Agent has determined that the informal consultant selection procedure should be waived. as set forth in Municipal Code Sections 2.56.110.o/2.56.090.B.2. because Consultant has satisfactorily served as financial advisor on the 2000 Tax Allocation Bonds for the Redevelopment Agency and various City Certificates of Participation over the past five years: is in the process of updating the Agency's Financial Plan: and, is familiar with the project areas and potential fiscal impacts on the City. . Economic 8. Plannina svstems [nEPS"l - EPS is currently under contract to advise the City of Chula Vista on economic and financial issues related to the Chula Vista Bayfront Master Plan (CVBMP). This amendment would expand their role to cover other projects in Westem Chula Vista as they arise. Expanding the sCOrJe to include all of Western Chuta Vista would improve coordination and continuity when preparing financial analysis on the various projects. . Rosenow Soevacek Graue I"RSG"l - The Redevelopment Agency currently has RSG under three separate contractual agreements for a number of redevelopment services and activities {e.g.. five-year implementation plan updates. redevelopment feasibility study. Education Revenue Augmentation Fund extensions. redevelopment pian amendments. project area committee activities. etc.}, This contract amendment would expand their role to cover additional project-level services and responsibilities in Western Chula Vista as they arise and would improve coordination and continuity when preparing financial analysis on the various projects. 2-3 3e.3 PAGE 4, ITEM NO.: MEETING DATE: 2 1 fl 0/06 The purpose of the proposed fiscal and economic consultant team is to provide the City and Redevelopment Agency comprehensive support and expertise that furthers the City's redevelopment and revitalization efforts in Western Chula vista. Professional services from the three proposed firms will include: . Flnonclol and Economic Strategies (Harrell 8. Co.. EPS, RSGI o Formulation of comprehensive public/private financing strategies and implementation plans o Tax increment projections and financing strategies o Strategic and procedural advice on developer solicitation, selection. and negotiations . Project-Level Support and Expertise (EPS, RSG) o Project cash flow modeling o Market study and project pro forma analysis o Fiscal impact modeling o Project financing strategies and structuring o Project negotiation support o Preparation of summary reports and other required documents pursuant to California Health and Safety Code Section 33433 Harrell & ComDanv Harrell 8. Company has submitted 0 proposal to provide Cash Flow Planning and other financial advisory services on on "os-needed" basis. The City will pay only for productive hours authorized by and received to the satisfaction of the City. The City's Finance Director will be the project manager and. because of the dollar amount involved ($20.000), the City's Purchasing Agent will execute the agreement. Economic & Plannina Svstems EPS has submitted a proposal to provide expertise in real estate economics, fiscal analysis. and comprehensive public/private financing strategies for development projects in Westem Chula Vista. Uke Harrell 8. Company. EPS will be providing services on an "os-needed" basis. EPS is currently providing financial consulting services related to the Chula Vista Bayfront Master Plan (CYBMP) and has committed the same project team for any additional work performed. The City's Finance Director will act as project manager for this agreement. EPS was selected to conduct work on the Urban Core Specific Plan as the result of a competitive selection process; has performed satisfactorily: has experience in support of the CVBMP; and. has unique qualifications to provide continuity in administration of economic programs within the Westem Chura Vista development area. The additional scope being proposed is a natural extension of previous work and work currently in 2-4 3,~1 PAGE 5, ITEM NO.: MEETING DATE: 2- 1/10/06 progress and it would be impractical to solicit formal proposals. Also. based on the Consultant's experience and expertise with fiscal and economic programs. their knowledge of the kinds of private ventures envisioned for the Bayfront and within Westem Chula Vista. staff believes that the City's interest would be materially better served by waiving the consultant selection process. Staff therefore recommends that Council waive the forma! consultant selection process and approve this amendment which increases the original agreement from $44.480 to $109.480. Rosenow Spevacek Group Council has previously approved agreements with RSG for 0 combined total of $98.000. It is recommended that Counc~ authorize an additional $50,000 to ensure that work programs and activities in the Western Chula Vista Development area are in compliance with Califomia Community Redevelopment Law. RSG has performed satisfactorily on a variety of past redevelopment plans and projects in Chula Vista. including the BoyfrontfTown Centre Merged Project Area Plan. the Amended and Restated Redevelopment Plan for the Merged Project Area. the formation of Project Area Committees. and a number of Five Year Redevelopment Implementation Plans. RSG therefore possesses the background and knowledge to provide seamless support, and is also on the City's "Certified Ust of Economic Development & Redevelopment Consultants", As a result, the City's interest would be materially better served by waiving the consultant selection process. The additional scope being proposed;s 0 natural extension of previous work and work currently in progress and it would be impractical to solicit formal proposals. It is therefore recommended that Council waive the formal consultant selection process and approve this amendment which increases the original agreement from $25.000 to $75,000. The City's Redevelopment Manager will continue as the project manager for this contract extension. The City's Finance and Community Development Departments will jointly work with the consultant team on the above efforts and tasks, including both high-level and long- range strategic planning endeavors. and project-level support and analysis. Deta~ed scopes. of work for each firm ore contained in the attached draft agreements and amendments. In preparation for potential financial transactions, which may involve the issuance of debt for the purpose of financing certain major capital projects related to projects in westem Chula Vista. including the Bayfront. the Rnance Department will subsequently assemble a financing team. through the RFP process, to assist in the structuring of the transactions. The financing team will include a financial advisor. bond counsel and underwriter. 2-5 3 e. ..!)~ FISCAL IMPACT PAGE &. ITEM NO.: MEETING DATE: 2- 1110/0& The financial analysis and consulting services performed will include both City and Redevelopment Agency projects. Therefore. the costs will be shared between the general fund and redevelopment agency. The net fiscal impact to the General Fund in fiscal year 2006 wlll be $42.500. The fiscal impact to the Redevelopment Agency Merged Project Area Fund in fiscal year 2006 will be $92.500. ATTACHMENTS . Attachment A - Current Agreement with Economic & Planning Systems Attachment B - Current Agreement with Rosenow Spevacek 2-6 3~/P