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HomeMy WebLinkAboutCVRC Min 2008/03/13 MINUTES OF THE REGULAR MEETING OF THE CHULA VISTA REDEVELOPMENT CORPORATION (CVRe) March 13,2008 6:00 P.M. A Regular Meeting of the Chula Vista Redevelopment Corporation was called to order at 6:02 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. CVRC ROLL CALL PRESENT: Directors: Munoz (arrived at 6:06 p.m.), Paul, Reyes, Rooney, Salas, and Vice-Chairman Desrochers ABSENT: Directors: Chairman Lewis ALSO PRESENT: Executive Director/City Manager Garcia, Deputy City Attorney Shirey, Redevelopment & Housing Assistant Director Crockett, Chief Financial Officer/Finance Director Kachadoorian, Assistant Finance Director Davis, Project Coordinator Johnson, Principal Project Coordinator Lee, Senior Deputy City Clerk Peoples, Senior Administrative Secretary Fields PLEDGE OF ALLEGIANCE. MOMENT OF SILENCE PRESENTATION . INFORMA nON UPDATE ON THE SOUTHWEST COMMUNITY STRENGTHENING STRATEGIES Project Coordinator Johnson provided a brief update on the Southwest Community Strengthening Strategies and invited everyone to attend the community outreach event being held to solicit input from the community on Saturday. March 15th from II a.m. to 2 p.m. at the Otay Recreation Center, 3554 Main Street. CONSENT CALENDAR (Item I) 1. APPROVAL OF MINUTES Staff recommendation: That the CVRC approve the minutes of January 24, 2008. ACTION: Director Paul moved approval of the Consent Calendar. Director Reyes seconded the motion and it carried 6-0 with Chair Lewis absent. PUBLIC COMMENTS There were none. ACTION ITEMS 2. EXCLUSIVE NEGOTIATING AGREEMENT WITH GALAXY COMMERCIAL HOLDING, LLC FOR THE NORTHWEST CORNER OF F STREET & WOODLAWN A VENUE (707 F STREET) Staff is recommending that the CVRC enter into a new Exclusive Negotiating Agreement (ENA) with Galaxy Commercial Holding, LLC (Galaxy) for the former City corporation yard (Corp Yard) located at 707 F Street, adjacent to the E Street Trolley Station. The CVRC and Galaxy have an existing ENA (executed November 8, 2007) for two motel sites located immediately north of the Corp Yard on the southwest comer of E Street and Woodlawn Avenue (E & Woodlawn ENA). Galaxy has an interest in those motel properties through a 300-day Purchase and Sale Agreement (entered into on August 15. 2007). Principal Project Coordinator Lee provided a brief overview of the report noting that what was being recommended was a short term 120-day ENA, which was a new ENA in addition to the first ENA approved back in November. He then recapped the initial proposed project, the potential benefits to be derived, and the market challenges that have since occurred. He concluded with the rationale for the inclusion of the additional ENA to include additional land. A comprehensive site design study is required to be provided along with an economic study. preliminary traffic analysis, and phasing plan. Vice-Chairman Desrochers inquired as to whether there would be an opportunity to include the triangular parcel to the south of the Corp Yard on F Street. Redevelopment & Housing Assistant Director Crockett responded that that property was currently owned by MTS, and that it contained the major transformers for the trolley lines. Redevelopment & Housing Assistant Director Crockett then advised the Board that Mr. Raffi Cohen as well as his partner John Conway and their associate Brian Angelini and Project Manager Diane Erickson were present to answer any questions as well. Executive Director Garcia advised the Board that there was a lot of work to be done in the next 120 days, but that Mr. Cohen was a very willing partner and had agreed that the requests were reasonable and deliverable within the given time period. Further, that discussions with him had led staff to believe that he was as anxious to begin the project as staff was to give him the opportunity to begin the project. Director Paul inquired as to the grade separation being discussed. Mr. Lee stated that SANDAG was still in the study phase and that it was a very real project included in their funding. The location of the stop was uncertain at this time, but the preferred alternative was for going underground, which would require the grade to start to descend prior to E Street. Page 2 of5 CYRC - Minutes - March 13, 2008 ACTION ITEMS (continued) Director Salas and Vice-Chairman Desrochers inquired and Mr. Lee eXplained the ENA timing process. Director Reyes requested that the Galaxy group provide the Board with their vision considering the economic changes. John Conway, representing Galaxy, stated that market conditions were always difficult, but their job was to come up with the best possible projects and business decisions that make sense. They had studied the Best Western property with the hopes of having a for sale product. Because of the configuration of that site and the unknown elements of MTS, as well as other properties within that ENA study area that they do not currently control, making a Phase I project was becoming extremely difficult. The availability of the City Corp Yard property coincided with their looking at another product type that was transit-oriented, such as the project in Mission Valley which is a multi-use rental property-very nicely done. The current ENA did not contain enough property to do an adequate study, but it works with the inclusion of the Corp Yard. Mr. Conway then stated that he had studied the grade separation and looked at the alternatives that are on the board and that they were sensitive to those issues. They believe they can come up with a 2 or 3 phase property that they can start very quickly and at the same time, with staff support, approach MTS and gain an understanding of some of the other issues. Their plan is to focus on something that would be a 2 to 3 phase product within the next 2 to 4 year cycle that brings in mixed use, satisfies the City's need for retail and multi-family rental housing. and then everything on the eastside along E Street would be for sale product. Mr. Conway stated that they are keeping the owner of the Best Western property abreast of their progress, and that they are aware of the timing they're working in. Director Paul inquired and Mr. Conway committed to keep the Board informed with periodic progress updates. ACTION: Director Paul moved adoption of Resolution No. 2008-001, heading read, text waived: CVRC RESOLUTION NO. 2008-001. RESOLUTION OF THE CHULA VISTA REDEVELOPMENT CORPORATION APPROVING AN EXCLUSIVE NEGOTIATING AGREEMENT WITH GALAXY COMMERCIAL HOLDING, LLC FOR PROPERTY LOCATED AT 707 F STREET IN THE CITY OF CHULA VISTA Director Rooney seconded the motion, and it carried 6-0 with Chair Lewis absent. 3. 2008 TAX ALLOCATION REFUNDING BONDS Director Reyes stated that he would be abstaining from participation on this item due to having property holdings within 500 feet of the boundaries of the property that is subject of this action. He then left the dais and Council Chambers. On January 22, 2008, a resolution of the Redevelopment Agency of the City of Chula Vista was approved declaring the intent to refund the 2000 Tax Allocation Bonds (TAB). On January 24, 2008, the CFO provided the financing plan for the proposed 2000 TAB refunding. At that time the Directors were advised that a request for recommending Page 3 of 5 eVRC - Minutes - March 13, 2008 ACTION ITEMS (continued) authorization to the Redevelopment Agency Board would be forthcoming if it was deemed financially feasible to refund the TABs. Chief Financial Officer/Finance Director Kachadoorian assisted by Assistant Finance Director Davis, provided an overview of the staff report, which was a follow-up to the prior presentation of January 24, 2008. She then introduced Financial Consultant Raul Amezcua of E.J. De La Rosa, and Suzanne Harrell, Financial Advisor of Harrell and Co., who were present in the audience. Vice-Chairrnan Desrochers requested Financial Consultant Raul Amezcua provide his opinion on the municipal bond market and what he sees in the next few months. Mr. Amezcua of E.J. De La Rosa responded stating that the last couple of months had been pretty severe, but the thinking is that the market will improve as the F eds cut rates again infusing money back into the market and taking an active role to unclog the credit paralysis currently being dealt with. His firrn is optimistic, but can't say with certainty. They do know that there are a lot of investors who are just uncertain of when to invest. Vice-Chairrnan Desrochers added that he had no part in these bonds during his tenure with the City, and that it was important to note that these types of bonds and the bonds that were sold for the parking structure were the type of bonds that act as a catalyst to get redevelopment going. Further that the additional tax revenue generated has more than paid the City for the expense of the bonds. ACTION: Director Salas moved adoption of Resolution No. 2008-002, heading read, text waived: CVRC RESOLUTION NO. 2008-002, RESOLUTION OF THE BOARD OF DIRECTORS OF THE CHULA VISTA REDEVELOPMENT CORPORATION RECOMMENDING THE ISSUANCE BY THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA OF NOT TO EXCEED $24 MILLION PRINCIPAL AMOUNT 2008 TAX ALLOCATION REFUNDING BONDS FOR THE MERGED REDEVELOPMENT PROJECT Director Rooney seconded the motion and it carried 5-0-1 with Director Reyes abstaining and Chair Lewis absent. At 6:45 p.m. Director Reyes returned to the Council Chambers and dais. 4. CHIEF EXECUTIVE OFFICER'S REPORTS There were none. 5. CHAIRMAN'S REPORTS There were none. Page 4 of 5 eVRC - Minutes - March 13, 2008 6. DIRECTORS' COMMENTS There were none. ADJOURNMENT At 6:46 p.m., Vice-Chairman Desrochers adjourned the meeting to the Regular Meeting of April 10,2008, at 6:00 p.m., noting that the Regular Meeting of March 27,2008 had being cancelled. .dL/~ Eric Crockett, Secretary Page 5 of5 CVRC - Minutes - March 13, 2008