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Home My WebLink Aboutrda min 1993/04/20 MINUTES OF A REGULAR ~NG OF THE REDEVELOPMENT AGENCY OF THE ~:I'I'Y OF CHUI~ VISTA Tuesday, April 20, 1993 Council Chambers 9:S6 p.m. Public Services Building CALL TO ORDER 1. ROLL CALL: PRESENT: Member Horton, Moore, Rindone, and Chairman Nader ABSENT: Member Fox ALSO PRESENT: John D. Goss, Director; Bruce M. Boogaard, Agency Attorney; and Vicki C. Soderquist, Deputy City Clerk 2. APPROVAL OF MINUTES: None submitted. CONSENT CALENDAR (Items pulled: 5) 3. wlrrrgN COMMUNICATIONS: None. 4. RESOLUTION 1323 AUTHORIZING THE APPROPRIATION AND EXPENDITURE OF $652,655 TO THE COUNTY-AUDITOR AS REQUIRED UNDER HEALTH AND SAFETY CODE SECTION 33681 PURSUANT TO THE STATE OF CALIFORNIA BUDGET RESOLUTIONS FOR FY 1992-93 - Pursuant to Health and Safety Code Section 33681 adopted as part of the State of Califoruia Budget resolutions for the 1992-92 fiscal year, each Redevelopment Agency is required to make a one-time "Special Payment" of approximately 16% of the property tax increment received during the 1990-91 fiscal year. The payment must be allocated by May 10, 1993. The Redevelopment Agency has been notified by the State Department of Finance that it is required to make a payment of $652,655. Staffrecommendsadoptionoftheresolution. (Community Development Director) RESOLUTION 1323 OFFERED BY MEMBER RINDONE, reading of the text was waived. Chairman Nader stated he had been told by the League of California Cities there was a substantial argument that the law under which the Agency was required to make the payment was unconstitutional and there had been talk about a lawsuit if the State attempted to do it a second time. He questioned whether the Agency was obligated to adopt the resolution. Agency Attorney Boogaard responded that due to the workload in his office, he had not been able to review the item and was relying on staff to advise the Agency. If special research was needed it should be continued. Lyman Christopher, Director of Finance, stated there was a legal requirement that all agencies in California remit approximately 16% of their property tax increment for the fiscal year. If not done by May 10, 1993 the County had the authority to withhold property tax payment to the City in lieu of getting the money from the Agency. Minutes April 20, 1993 Page 2 ) Chairman Nader questioned the distribution of the funds. Mr. Christopher responded that the monies went to the Education Augmentation Fund. Agency Attorney Boogaard suggested the resolution be mended, first and second clauses to "authorize the appropriation and expenditure to be made under protest with all legal rights reserved to recover same if it was eventually determined to be unconstitutional or otherwise invalid or not he required to be paid". MSC (Moore/Nader) to amend Resolution 1323, first and second clause, to state: *authorize the appropriation and expenditure to be made under protest with all legal rights reserved to recover same if it was eventually determined to be uncoustiultional or other wise invalid or not be required to be paid*. Approved 4-0-1 with Fox absent. VOTE ON RESOLUTION 1323, AS AMENDED: approved 4-0-1 with Fox absent. 5. REPORT REQUEST FOR FINANCIAL ASSISTANCE TO COVER A DRAINAGE CANAL TO ALLOW FOR THE RETA1L DEVELOPMENT OF THE SOUTHEAST CORNER OF BAY BOULEVARD AND J ~T - The Foster Partnership owns the 17.5 acres known as the Marina Gateway Business Park which includes two parcels located on the north and south side of J Street. The two parcels are bisected by a channelized drainage canal which greatly restricts development. Mr. Bennet Greenwald has been working with staff to develop a proposal to finance the covering f the channel in a way that would allow the economical development of the site to the benefit of the developer and the City. It is recommended that the Agency approve the report and authorize staff to negotiate an Agreement with the developer for the rebating of development costs for covering the channel on the southerly parcel and resolve signage issues. (Community Development Director) Pulled from the Consent Calendar. Chris Salomone, Director of Community Development, stated the recommendation would authorize staff to negotiate an agreement to be brought back to the Agency for approval. It outlined the parameters of the agreement and in no way obligated the Agency or staff to an agreement. Member Rindone questioned how staff arrived at the 75% figure. Mr. Salomone stated redevalopment projects were done on a case by case basis. With higher income producing uses the percentage was generally lower. Staff felt that due to the site, gateway features, unique configuration, safety problems, and a number of other issues it was worthy of discussion. Director Goss stated it was not a staff proposal in terms of the percentage, it was what the applicant was proposing and that was what needed to be discussed. MemberRindone stated he did not see a consistency between the ten and eleven years listed in the report. Mr. Salomone responded that staff recommended ten years. The eleven years would have guaranteed, on their numbers, full cost recovery. Staff was trying to CAP it a ten years. If full cost recovery did not result then it was forgiven. Member Moore quesfoned whether it was a positive project, i.e. that it would happen as long as negotiations were agreeable. '\ Mr. Salomone stated that was his understanding. ,d Minutes April 20, 1993 Page 3 ® Greg Cox, 3130 Bonita Road, Suite 200, Chula Vista, CA, representing Foster Properties, stated as far back as 1983 the master plan envisioned covering the channel and there was an understanding from the beginning there would have to be some type of assistance from the City to make it economically viable. The specific proposal had been changed in response to staff concerns. The property owner supported the proposal with the exception of the revenue sharing for ten years. They requested the Agency consider recovery of the full cost of the improvements. Chairman Nader questioned whether there were other development options available with the assistance being requested by the City. Mr. Cox responded the property owners had tried to get tenants for the site for the last ten years. There was an option to develop the two parcels individually. The property could also remain vacant but no one won under that scenario. He felt the tax sharing proposal was fair to both parties. If Agency felt it was appropriate to have freeway recognition signage the property owner was willing to allow freeway recognition signage for Chula Vista Harbor. He assured the Agency that if they allowed the project to go forward with the City's participation in the covering of the channel there would be no requests for further assistance on channel coverages on the parcel to the north. Bennet Greenwald representing Foster Properties, stated the project was the best usage given the market. What they could do was to insist on better aesthetics and design. Chairman Nader stated he was concerned that if the Agency accepted the recommendation they were directing staff to negotiate and were not setting forth a specific agreement. What he felt might be appropriate regarding the revenue sharing could vary on the nature of the developm ant from both a quality of life and financial stand point. If Council approved the recommendation he wanted staff to look at the antidpated revenues and quality of the ultimate development during negotiations as to how high a percentage the City wanted to go to. Mr. Cox stated if the project went forward there would be new revenues. The reality of the situation was that he did not think the City would get a "dinner house" restaurant at the site. Member Rindone questioned whether there would be any backup drainage (engineering) problems if the channel was covered. Mr. Salomone stated that had not been reviewed but he would meet with the Engineering Department regarding the issue. Member Rindone requested the information be included in a report. Spedfie numbers were not necessary but it would relate to the quality of the projects that would be on the site and any potential engineering concerns. It was a gateway and would result in new monies to the City and the Agency needed to look at the proposal seriously. MS (Rindone/Nader) to accept the report and recommendations and direct staff to negotiate with the devdoper on the possibility of rebating development costs of covering the channel. Staff is to also address any engineering concerns regarding the covering of the channel. Approved 4-0-1 with Fox absent. Mr. Cox requested clarification as to whether the ten years were locked in. Member Rindone stated it did not lock in the ten years. He was more interested in seeing a lower percentage and lowering the life. Minutes April 20, 1993 Page 4 Director Goss stated he felt the direction from the Agency was to be creative. * * END OF CONSENT CALENDAR * * PUBHC HEARINGS 6A. AGENCY RESOLUTION 1316 FINDING THE FINAL ENVIRONMENTAL IMPACT REPORT FOR THE PALOMAR TROLLEY CENTER PROJECT (EIR 91-02), WITH ADDENDUMS, IS ADEQUATE UNDER CEQA; MAKING FINDINGS OF FACT; ADOPTING MfI'IGATION MONITORING PROGRAM; AND THE FIRST AMENDMENT TO THE PALOMAR TROI/.I/.I/.I/.I/.I/.I~ CENTER DISPOSITION AND DEVELOPMENT AGREEMENT B, AGENCY RESOLUTION 1317 FINDING AND DETERMINING PUBLIC INTEREST AND NE(~SSITY FOR ACQUIRING AND AUTHORIZING THE CONDEMNATION OF (ZRTAIN REAL PROPERTY WITHIN THE SOLrYHWEST REDEVELOPMENT PROJECT AREA, CHULA VISTA, CALIFORNIA C. AGENCY RESOLUTION 1318 FINDING AND DINING PUBLIC INTEREST AND NE(~SSITY FOR ACQUIRING AND AUTHORIZING THE CONDEMNATION OF ff~R.TAIN REAL PROPERTY WITHIN THE SOUTHWEST REDEVELOPMENT PROJECT AREA, ChqJIA VISTA, CALIFORNIA ) D. AGENCY RESOLLrYION 1319 FINDING AND DETERMINING PUBLIC INTEREST AND NECESSITY FOR ACQUIRING AND AUTHORIZING THE CONDEMNATION OF (ZRTAIN REAL PROPERTY WITHIN THE SOLrrHWEST REDEVELOPMENT PROJECT ARFL CHULA VISTA, CALIFORNIA E. AGENCY RESOLLrrION 1320 APPROVING THE PALOMAR TRO1 ].EY ~]iNTER PROJECT AND ITS SCOPE OF DEVELOPMENT AND SCHEDULE OF COMPLETION AND AUTHORIZING CHAIRMAN TO EXECUTE THE PALOMAR TROH.R*Y CENTER DISPOSITION AND DEVELOPMENrr AGREEMENT JOINT PUBLIC HEARING REGARDING DISPOSITION OF ACQUIRED PROPER'IreS (APN 622-O30-15, 622-030-22, 622-030-23) WITHOUT PUBLIC BIDDING, PURSUANT TO CALIFORNIA HEALTH & SAFielrY CODE SECTION 33341 JOINT PUBLIC HEARING REGARDING DISPOSITION OF ACQUIRED PROPER'flES (APN 622-030-15, 622-030-22, 622-030-23) ACQUIRED WITH TAX INCREMENT FUNDS, PURSUANT TO CALIFORNIA HEALTH & SAFI~'YY CODE SECYION 33433 F. COUNCIL RESOLUTION 170S5 APpROVINGTHESALEOFAGENCY-OWNEDPROPERTY(APN622-030-15, 622,030-22, 622-030-23) TO CYPRESS C~RF.F. RZ COMPANY, LP., AND FINDING THAT CONSIDERATION IS NOr LESS THAN FAIR MARKET VALUE Minutes April 20, 1993 Page 5 G. AGENCY RESOLUTION 1321 APPROVINGTHESALEOFAGENCY-OWNEDPROPERTY(APN622.030.15, 622-030-22, 622-030-23) TO CYPRESS CREEK COMPANY, LP, AND FINDING THAT CONSIDERATION I$ NOT LESS THAN THE FAIR MARKET VALUE H. AGENCY RESOLUTION 1322 FINDING THE FINAL ENVIRONMENTAL IMPACT REPORT FOR THE PALOMAR TROLLEY CENTER PROJECT (EIR 91-02), WITH ADDENDUMS, IS ADEQUATE UNDER C~QA; MAKING FINDINGS OF FACT; ADOPTING MITIGATION MONITORING PROGRAM; AND APPROVING THE AMENDED PALOMAR TROI-IJ~-~r CENTER DISPOSITION AND DEVELOPMENT AGREEMENT - A disposition and Development Agreement (DDA) was approved between the Agency and Cypress Creek Company, L.P., on November 10, 1992. That agreement was to be executed within 75 days. Much progress has been made but the 75 day period expired without completion of all the conditions precedent. Staff is recommending that the Agency and Council adopt the resolutions which will amend the Palomar Trolley Center DDA regarding those conditions precedent, complete the amended conditions precedent, execute the DDA, and approve anew amending DDA. (Communiry Development Director) (Con~nuedfrom the meeting ofApril 13, 1993) MSC (Nader/Rindone) to call a special meeting for 4/27/93 and continue the public hearing at the request of the developer to the 4/27/93 meeting. Approved 4-0-1 with Fox absent. ORAL COMMUNICATIONS None ACTION FIEMS None scheduled. OTHER BUSINESS 7. DIRECTOR/CITY MANAGER'S REPORT - None 8. CHAIRMAN/MAYOR'S REPORT 8a. Appointment of Jesus Sanchez to Town Centre II Project Area Committee MSC (Nader/Horton) to appoint Jesus Sanchez to the Town Centre Project Area Committee. Approved 4-0-1 with Fox absent. 9. MEMBERS/COUNC1LMEMBERS' COMMENTS - None Minutes April 20, 1993 Page 6 ADJOURNMENT ADJOURNMENT AT 10:26 P.M. to the next regular meeting of the Agency will be on Tuesday, May 4, 1993 at 4:00 p.m., immediately following the City Council meeting, Council Chambers, Public Services Building. Respectfully submitted, BEVERLY A. AUTHELET, CMC, City Clerk Vicki ~: Soderquist, Deputy '~Clerk