Loading...
HomeMy WebLinkAboutrda min 1991/06/04 MINDTES OF A SPECIAL IVIEETING OF THE REDEVELOPMF2qT AGENCY OF THE cal ~' OF CHULA VISTA Tuesday, June 4, 1991 Council Chambers 5:50 p.m. Pub!lc Services Building CALL TO ORDER 1. ROLL CALL: PRESENT: Members Malcolm, Nader, Rindone, and Chairman Moore ALSO PRESENT: John D. Goss, Director; Bruce M. Boogaard, Agency Attorney; and Beverly A. Authelet, City Clerk 2. APPROVAL OF MINLrrEs: None. Member Malcolm questioned whether the posting of the meeting at 6:00 p.m. would prohibit the Agency from convening immediately after the Council meeting. City At~omey Boogaard responded that the meeting had bee~ noticed at 6:00 p.m. and asterisked with the notation "Immediately following City Council Meeting". He felt that was sufficient notice to convene the Agency meeting. CONSENT CAt .~NDAR (Items pulled: none) CONSENT CALENDAR OFFERED BY CHAIRMAN MOORE, reading of the tex~ was waived, passed and approved unanimously. 3. WRITTEN COMMUNICATIONS: None. 4. RESOLtrrION 1173 APPROPRIATING $200,000 FOR ACQUISITION OF THE NELSON & SLOAN PROPERTY IN OTAY VA! .I.Ey AND AUTHORIZING THE FUNDS TO BE DEPOSITED IN ESCROW--A $200,000 appropriation from the unencumbered balance is needed to fund the purchase of the 10-acre Nelson & Sloan property in Otay Valley. That property will prov/de the mitigation lands for the road widening project. Staff recommends that the Agency appropriate the $200,00 for acquisition of the ten acre Nelson & Sloan property in Otay Valley. - 4/Sths Vote Requ/red 5. RESOLUTION 1174 APPROVING A JOINT POWER AGI~ ~I~MENTWITH THE SAN DIEGO UNIFIED PORT DISTRICT FOR THE CONSTRUCTION ADMINISTRATION OF MARBqA VIEW PARK IMPROVEMENT PROJECT--At the May 18, 1990 meeting, the Redevelopment Agency approved a contract with Van Dyke and Associates, Inc., for the design and construction documents development and related services for the City's portion of the Marina View Park Master Plan. Staff recommends that the Agency approve the Joint Power Agreement with the San Diego Unified Port District. * * END OF CONSENT CAI.I~NDAR * * Minutes June 4, 1991 Page 2 - PUBLIC HEARINGS None. ORAL COMMUNICATIONS None. ACTION FrEMS 6. RESOLLrrION 1169 APPROPRIATING A $350,000 LOAN FROM THE LOW- AND MODERATE-INCOME HOUSING FDND TO G1VIG (~.m'qTER BARRIO HOUSING CORPORATION FOR THE PURCHASE OF PROPERTY AT 1250 THIRD AVENUE FOR THE PURPOSE OF BUILDING THE PARK VILLAGE APARTMENTS (28 UNITS FOR LOW-INCOME FAMILIES)--Civic Center Barrio Housing Corporation, a non- profit community-based organization has 17 year successful experience building and rehabilitating housing for low-income families. They desire an Agency loan to purchase the property in Chula Vista to build a 28- unit apartment complex for low-income families. Staff recommends that the Agency approve the loan, approve the Development Agreement, and authorize the Executive Director to execute the Loan Agreement and associated documents. - 4/Sths Vote Required Chris Salomone, Director of Community Development, gave a brief overview of the proposed project. Helen R. Brown, 1625 Sweetwater, National City, CA, President of the Civic Center Barrio Housing, spoke in support of the staff recommendations. She stated she was available to answer any questions the Agency had at this time. Chairman Moore questioned whether management lived on site and how the project would be managed. Ms. Brown responded that there would be a tenant association, educational classes provided by various city agencies, and on going strategies for educating tenants. They expect to own/operate/manage this project into perpetuity. Member Malcolm questioned whether the applicant would agree to a requirement in the agreement which would exclude and/or remove anyone with drug related offenses or violent felonies. Ms. Brown responded that they carried it even further, in that if anyone was not an equitable neighbor, the tenant association and the board had the right to remove the person. Member Malcolm questioned how long they would be required to keep the project low/moderate. Ms. Brown responded that the requirement was thirty (30) years. Member Nader referred to a project in Santa Ana in which "sweat equity~ was utilized and questioned whether that type of program could be utilized for this project. He also questioned ff the applicant would have to go back and get approvals if the project was amended to include 'sweat equltyL Ms. Brown responded that the project he was referring to was condominiums and this project was apartments. This project was an existing project purchased from a for-profit developer. June 4, 1991 Page 3 David Harris, Community Development Specialist, responded that loans had been applied for that were related to the construction of rental housing. The Proposition 84 funds in the amount ?f $1.5 million, also require the construction of rental housing. The Rental Housing Construction Prograrn does not allow that type of program. Member Nader felt the legislative program should look at asking the Legislature to change this program. He felt this was the type of low income housing the Gity needed more of. Mr. Salomone stated that the conversion to a condominium would require a new planning process. Member Malcolm questioned whether there would be a penalty if converted from low/moderate prior to the thirty years. Agency Attorney Boogaard responded that it was a covenant running with the land which could be enforceable by the Agency at the time. An injunctive action could be taken. Discussion then ensued regarding size of apartments and rents. Mr. Harris stated that ten of the units would be rented at very low income rates, 50% of the median, and the other eighteen units would have to be rented at low income rates, 80% of the median. Moderate is 120% of the median income and none of the units would be rented to moderate income households. Member Rindone questioned whether the education classes were open to the public. He questioned what assurance the Agency would be g/yen regarding preference for displaced mobile home/trailer residents. Ms. Brown responded that if space was available after priority being given to the tenants, the public could then attend the classes. The agreement requires that the City be notified in writing when a vacancy occurs, the City then has ten days to refer someone. Mr. Harris stated the development agreement required the City staff to compile a list of displaced trailer park residents. Agency Attorney Boogaard stated there was a liquidated damages provision equal to the excess rents collected above that which was approved by the Agency (pg. 6-19). MS 0Malcolm/Moore) to amend the agreemanr to include wording, as determined by the CiW Attorney, to prohibit ranting to and/or evicting any person convicted of drug abuse or violent felonies. Agency Attorney Boogaard stated that the amendment would be added to the development agreement, Section 3.20 Subparagraph F. VOTE ON MOTION: approved unanimously. Amos Sanderson, 1625 Sweetwater Road, National City, CA, Housing Speci.alist for the Civic Center Barrio Housing, spoke in support of the staffrecommendafion. He stated that it would be more economical to start a new project with a "sweat equiV/' program rather than trying to redesign this concept. RESOLUTION 1169 OFFERED BY MEMBER MALCOLM, reading of the text was waived, passed and approved unanimously. Minutes June 4, 1991 Page 4 Member Nader questioned whether it would require a Council motion to add an item to the legislative program regarding changing Proposition 84 to include ~sweat equity" programs. He would like this added to his comments for the next Agency meeting along with discussion on a possible policy on "sweat equlty~ on new low income projects within the City. 7. RESOLUTION 1172 APPROVING SEMI-EXCLUSIVE NEGOTIATI ON AGR I~MENT wrrH PACIFIC SCENE INC. (PSI) FOR DEVELOPMENT OF COMMERCIAL SHOPPING CENTER AT THE SOUTH SIDE OF PALOMAR STREET BETWEEN INDUSTRIAL BOULEVARD AND BROADWAY; AUTHORIZING CHAIRMAN TO EXECUTE SAID AGR RRMF2~IT; AND AUTHORIZING THE EXECUTIVE DIRECTOR TO ENGAGE IN ACTIVtTmS AND ENTER INTO CONTRACTS AS NECESSARY TO DEVELOP THE EXPANDED CENTER PLAN FOR AN AMOUNT NOT-TO-EXC~I~.I) $100,000; AND APPROPRIATING $250,000 THEREFOR--Agency staff and PSI have been working closely to explore the feasibility of an expanded center plan (expanding PSI's proposed 12 acre neighborhood center into an 18 acre volume retail center by acquiring adjacent properties and identifying appropriate tenancy). Due to the complexity, uncertainty, and risks involved, pursuit of the proposed expanded center is not justifiable from a business risk position without some further consideration/assistance from the Agency. Staff recommends approval of the resolution. Continued from the meeting of May 2B, 1991. - 4/Sths Vote Required David Gustafson, Assistant Director of Community Development, informed Council that the agreement before them addressed all concerns submitted by Pacific Scene except for Item #7, which was the repayment obligation. Pacific Scene does not feel they should have to pay back any funds if both parties act in good faith and still can't achieve a disposition and development agreement. They felt the Agency should take the entire risk, staff feIt that a 50/50 position was reasonable. Jim Moxham, 3900 Harney Street, San Diego, CA, representing Pacific Scene, Inc., addressed paragraph 6.B.4 (pg. 7-20). They felt Pacific Scene had acted in good faith and put forth their best effort. They believed in the expanded plan agreement and the semi-exclusive negotiating agreement with the exception of the 50% reimbursement. They have invested over $235,000 since last August, at their complete risk, to get the project moving and were not willing to risk any further funds while urcesolved issues were before them. He requested relief under paragraph 6.B.4 so they could move forward. Member Malcolm stated that with the current economy a company had to have a proven record in order to obtain financing and he felt their request was reasonable. He felt it was fair to share the costs from when the Agency entered into the agreement to expand the center. If Pacific Scene could document the $235,000 the request was fair. He felt the Agency should share the costs with Pacific Scene 50/50 from the date the Agency expanded the project, not to exceed $150,000. MOTION: (Malcolm) direct staff to modify the agreemant to share the costs, 50/50 up to a ma~mum of $150,000. Motion died for lack of second. Agency Attorney Boogaard referred the Agency to paragraph 4, page 7-20 of the agreement and stated that Pacific Scene had requested that the 50% be removed from that pa[.agraph. The paragraph should be modified to state "the developer will not be required to pay'. Mr. Moxham stated Pacific Scene could provide the City with the information requested regarding their expenses by tomorrow morning. MS (Malcolm/Nader) to authorize the Mayor to execute the agreement provided that Pacific Scene produce~ documentation of $150,000 or more of costs incurred after 8/1/90 and modify paragraph 4, pg. 7-20 which would not require that Pacific Scene to repay the Agency 50% if the negotiations fail. Minutes June 4, 1991 Page S Mr. Salomone responded that part of the rational for the requirement was that there would be a number of negotiating points coming forth in the future, i.e. acquisition of properties, off-site.improvements, and other items that the Agency would be involved in with participation. He requested that if the recommendation on the floor was passed that the Agency have the right to reconsider in the development agreement when they look at total participation. Member Nader questioned costs incurred by the Agency. Mr. Salomone responded that costs would be staff time, processing of amendments, and review. Member Malcolm stated he would amend the motion to raise the expenditures by Pacific Scene to $200,000. Director Goss felt that raising the developers share by $50,000 would more than cover staff time. AMENDMENT TO MOTION: (Malcolm/Nader) to change the developers documented costs from $150,000 to $200,000. Member Rindone stated that Pacific Scene was a reputable firm and felt the developer and Agency needed to work together. He felt the staff recommendation was appropriate and would therefore not support the motion. Chairman Moore stated that the City Manger's recommendation was appropriate and if raised to $200,000 he could support the motion. Member Nader stated that the provision of the agreement continued to provide that the amendment was only applicable if both parties attempted to negotiate a DDA in good faith. Therefore, he did not feel there was a risk to the Agency. Agency Attorney Boogaard cautioned the Agency not to demonstrate any pre-commitment to the project due to legal requirements in the future. Agency Member Rindone felt this was a critical vote and that the City had more than demonstrated their integrity and understanding of the m~rket and situation. He felt the Agency had a responsibility to maintain the major liability interests of the City. VOTE ON MOTION AS AMENDED: approved 3~0-1 with Member Rindone voting no. RESOLUTION 1172 OFFERED BY MEaMBER MALCOLM, reading of the text was waived. Member Malcolm stated that the item could be appropriated and become effective July 1st on three votes. He requested a unanimous vote which would allow the project to proceed. Member Rindone felt the amendment would hold the City at risk. It was unfortunate that the Agency was operating with one less member as he would then be adamant regarding this issue. He did not feel there would be a benefit in delaying the project for thirty days and would concur with the other member of the Council. Mr. Moxham stated he understood Member Rindone's comments and that this was a difficult situation. There were much larger issues ahead dealing with greater costs for both parties. The issues discussed today could be included in discussions of the DDA. Minutes June 4, 1991 Page 6 - VOTE ON RESOLUTION 1172: approved unanknously. ITEMS PUlJJ~.r~ FROM THE CONSENT C~I.I~hlDAR Items pulled: none. The minutes will reflect the published agenda order. OTHER BUSINESS 11. DIRECTOK'S REPORT - None. 12. CHAIRMAN'S REPORT - None. 13. MEMBERS' COMMENTS - None. The Redevelopment Agency met in closed session at 6:55 p.m. to discuss: The acquisition of property at: 4705 OtayValley Road (Jimmie & Judi Shinohara, owners) pursuant to Government Code Section 54956.8 · ADJOURNMENT AT 7:25 P.M. to the regular meeting of the Redevelopment Agency scheduled for Thursday, June 20, 1991 at 4:00 p.m. CMC, ci. Clerk Vicki C. Soderquist, Deputy~-ity Clerk