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HomeMy WebLinkAboutcc min 1995/07/11 RDA MINUTES OF A JOINT MEETING OF TIlE REDEVELOPMENT AGENCY/CITY COUNCIL OF TIlE CITY OF CItULA VISTA Tuesday, July 11, 1995 Council Chambers 8:59 p.m. Public Services Building CALL TO ORDER 1. ROLL CALL: PRESENT: Agency/Council Members Alevy, Moot, Padilia, Rindone, and Chair/Mayor Horton ALSO PRESENT: John D. Goss, Director/City Manager; Bnlce M. Boogaard, Agency/City Attorney; and Beverly A. Authelet, City Clerk 2. APPROVAL OF MINUTES: June 20, 1995 and June 27, 1995 MSUC (Alevy/Horton) to approve the minutes of June 20, 1995 and Jtme 27, 1995 as presented. BUSINESS 3. REPORT STATUS OF THE BAYFRONT DEVELOPMENT--The Agency recently requested a status report on development of the Chula Vista Mid-Bayfront. Staff recently received and reviewed a Market and Feasibility Survey prepared li>r the Mid-Bayfront property owner/developer, Adnan Zakkout. Staff is providing a status update to the Agency. Staff' recommends acceptance of the report and requests the Agency to name a subcommittee to work with staff in negotiating with the developer to expedite development of the Mid-Bayfront. (Community Development Director) Chris Salomone, Director of Community Development, stated the report was a feasibility presentation prepared by the owner in a very general form that took data previously prepared for the pr<~iect and analyzing it and coming not to a conclusion, but a number of conclusions. Staff was recommending that since very little actual negotiating had occurred on the prt~iect since the new owner took over the property in September 1994, and because the report did not lead to a conclusion, that a deliberate process be set up and a subcommittee of the Council be appointed to assist in that negotiating process. He f~lt the applicant would be willing to participate in a process of weekly or regnlar meetings to move forward in what may be right-sizing or some a~iustment to the prc~iect to meet both the City and developers needs. Staff recommended a subcommittee and direction to pursue negotiations. Member Moot questioned what the subcommittee wlmld do without a prt~posal. Mr. Salomone replied that the developers conclusion in the closing pages of the r~port was that there were a number of options and he wanted to pursne a low cost negotiating process with the City. He t~lt the City should engage him, at least tbr the foreseeable future, to discover whether agreement could be reached and to bring onto the developers side of the table qualified consultants and stndies to move lbrward. Member Moot stated until the Agency had a proposal there was nothing to analyze or to have a subcmnmittee meet about or discuss. Once a proposal was received and the Agency knew where the developer intended to go with the project they could then create a subcommittee. Mr. Salomone responded that it took ahnost nin~ months to get the study frlm~ the applicant, which had been promised from the beginning of the applicant's ownership. He suggested that the applicant be taken up on his willingness to negotiate or he felt the project wotdd just languish. He did not f~cl the Agency could three the developer to give them a t~asible proposal. The developer owned the land in tiee and he t~lt sitting at the negotiating table was a way to generate the proposal. Member Padilia stated the entire issue had langnished fitr too long. The Agency needed to keep itself open to options, but they needed to get something off the ground and moving. He had discussed the issue with staff and had met with Mr. Minutes July I1, 1995 Page 2 Zakkout and heard his concerns. Negotiating may or may not be fruitrid but then the Agency and Mr. Zakkout could move on. He did not have a problenl with the staff recommendation to sit down and start the process. MS (Alevy/Padilla) tn uppnint Chuir Horton und Member Rindline tn fnrm a subcummittee to negotiate on the Mid- Bayfront. Member Rindone stated he was disappninted and t~lt the Agency was going back to the drawing board. The current Agency and past Agency Members wanted a n~eaningtl, d pmiect that provided amenities to enhance the community, enhance the tax base, and serve as a tourist attraction. The last proposal on the Bayfront was exciting and provided a lot of amenities that would not have been otherwise l~asible. He understood that it did not "pencil out", but the Bayfront was the.jewel of the City. Anything that was significantly ditl~rent than the present proposal would take years to achieve due to Coastal Commission approvals, etc. To throw lint all the amenities in the proposal would put the City in a difficult fiscal condition because the Agency needed to advance the redevelopment projiects. The debt service tier the bonds was not going away and there was a need to get resolution within the next year or two. He declined to participate on the Bayfront Subcommittee due to substantial changes in his work requirement that would not allow him to participate. He would support the subcommittee as the prqject needed to move tbrward, but he hoped they would not start with a "blank check" but look at the present proposal and see how it could be modified. Chair Hotton recommended that Member Minor serve on the Bayfront Subcommittee because he had previously served on the past Bayfront Subcommittee and the Planning Commission. FRIENDLY AMENDMENT: (Alevy) tu appuint Member Muot to the Bayfront Subcnmmittee. Member Moot stated that would be acceptable, but betkite the Agency voted he wanted to echo what Member Rindone had stated. If the Agency went back to ground zero on the prl~ject he wanted to be counted out. He had spent a lot of time, every two weeks for 9-10 months, at ground zero to consider all options. Through a very deliberative process they came up with a conclusion that some type of commercial/resort destination pr~ject was needed. He did not feel that would fhndamentally change. He was not going to go backwards on the prqject and he did not intend to play a lot of games. If there were proposals to modit~ the project to make it ecomlmically more l~asible then he was willing to meet. If there was some idea that it would be Disney World, etc. he did not want to participate. Member Alevy stated he had met with Mr. Zakkout and had checked out some of his properties and had received rave reviews. He did not believe they were gt~ing t{i grlmnd zero, but t~lt they were looking at some subtle changes that Mr. Zakkout wanted implemented. If the Agency deall in gt~od I~ith and qnickly he l~lt there would be a project that everyone could be proud of. He t~lt the developer was capable of doing things quickly and did not have to worry about funding. He f~lt the Agency should be positive about the action taken. VOTE ON MOTION: apprnved unanimously. PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES 4. PUBLIC HEARING JOINT REDEVELOPMENT AGENCY/CITY COUNCIL HEARING PURSUANT TO THE CHULA VISTA MUNICIPAL CODE AND CALl FORNIA HEALTH AND SAFETY CODE SECTION 33431 AND 33433 REGARDING THE PROPOSED DISPOSITION BY THE AGENCY OF CERTAIN REAL PROPERTY LOCATED AT 760 BROADWAY COMPRISED OF APPROXIMATELY 2.53 ACRES TO BROADWAY VILLAGE BUSINESS HOMES, L.P. AND TIlE PROPOSED DEVELOPMENT OF SAID PROPERTY INTO A 36-UNIT MIXED-USE BUSINESS HOMES PROJECT, SUCH PUBLIC HEARING TO CONSIDER THE FOLLOWING SPECIFIC PROPOSED ACTIONS:--The City Council and Redevelopment Agency are requested to hold the requisite public hearings and take the actions necessary to approv~ the Broadway Business Homes Project and authorize execution of a Disposition and Development Agreement with Joelen Enterprises (Josef and Lenore Citron) for the development of the prqiect. Actions required include a zoning change for the project from Thoroughfare Commercial to Central Commercial- Precise Plan; a Special Use Permit with Shared Parking Agreement to establish the mixed-use project; and approval of a Precise Plan with Conditions tier development of the Project and approval of the DDA, and sale of the property without public bidding. Staff recommends the Council and Agency approve the resolutions and place the Ordinance on first reading. Community Development Director) Minutes July 11, 1995 Page 3 1. Review and adoption of Mitigated Negative Declaration and Addendum IS-95-03 2. Approval of an amendment to the zoning map or maps established by Sectinn 19.18.010 of the Chula Vista Municipal Code by rezoning the 2.532 acre parcel located at 760 Brnadway within the Southwest Redevelopment Project Area frum C-T (Commercial Thornughfare) tn C-C-P (Central Commercial with Precise Plan) 3. Issuance of a Special Use Permit to construct a 36-unit commercial/residential mixed-use project with Shared Parking Agreement 4. Approval of a Precise Plan to allow construction of a 36-unit mixed-use project including associated site improvements 5. Approval of a Disposition and Development Agreement between the Agency and Joelen Enterprises A. RESOLUTION 17964 RESOLUTION 1460 ADOPTING MITIGATED NEGATIVE DECLARATION AND ADDENDUM IS-95-03 FOR A 36-UNIT BUSINESS HOMES PROJECT AT 760 BROADWAY B. ORDINANCE 2636 AMENDING TIlE ZONING MAP OR MAPS ESTABLISHED BY SECTION 19.18.010 OF THE CHULA VISTA MUNICIPAL CODE BY REZONING THE 2.53 ACRE PARCEL LOCATED AT 760 BROADWAY WITH1N THE SOUTHWEST REDEVELOPMENT PROJECT AREA FROM C-T (COMMERCIAL THOROUGHFARE) TO C-C-P, CENTRAL COMMERCIAL WITH PREClSE PLAN (First Reading) C. RESOLUTION 1461 MAKING CERTAIN FINDINGS AND GRANTING A SPECIAL USE PERMIT FOR THE DEVELOPMENT OF A MIXED-USE PROJECT KNOWN AS THE BROADWAY BUSINESS HOMES PROJECT, LOCATED AT 760 BROADWAY WITHlN THE SOUTHWEST REDEVELOPMENT PROJECT AREA TO BROADWAY VILLAGE BUSINESS HOMES, L.P. D, RESOLUTION 1462 RESOLUTION 17965 APPROVING A PRECISE PLAN FOR THE BROADWAY BUSINESS HOMES PROJECT AND A DISPOSITION AND DEVELOPMENT AGREEMENT WITH BROADWAY BUSINESS HOMES, L.P., AND AUTHORIZING THE CHAIR TO EXECUTE SAME E. RESOLUTION 1463 WAIVING THE CONSULTANT SELECTION PROCESS, AUTHORIZING EXECUTION OF A TWO-PARTY AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND WOODWARD-CLYDE CONSULTANTS FOR SOIL TESTING AND REIMEDIATION CONSULTING SERVICES AT 760 BROADWAY, AND APPROPRIATING FUNDS THEREFOR--Demolition of buildings at the Fuller Ford site will necessitate removal of contaminated soils. It will he necessary to have a qualified hazardous materials consultant present during demolition. Staff recommends approval of the resolution. Not a part i}f the Public He~tring, but a related item. (Conununity Development Director) Chris Salomone, Direck~r of Community Development, stated the Agency/Council was being asked to approve a number of actions to complete the process on th~ Broadway Business Homes. The Development Agreement had been negotiated over the last ten days and a copy of the final document was ~n the dais. Beti~re taking the recommended actions he stated an outstanding issue came to light on Monday and was not part of the Development Agreement. The issue could be discussed in Open Session or Closed Session. It dealt with the purchase price and acquisition of the property. He did not characterize any of the negotiations as bad faith, it had been done in good faith on both sides of the table, and it was .just a last minute issue. Pending the resoletion of that issue options were beti>re the A~ency/Council for acti~n. This being the time and place as advertised, the public hearing was declared l~pcn. · Josef Citron, 761 Golden Park, San Diego, CA, stated h~ was a little taken back by the process at the meeting. He did not know that there was anything to address and t~It it was appropriate tier Council to meet in Closed Session in order to discuss the issue and then any response brought back t~-om the Agency/Council he would be happy to address. He t~lt that would be a better procedore. Minutes July II, 1995 Page 4 * * * Couucil met in Closed Sessi,m at 9:18 p.m. aud recuuvened ut 10:06 p.m. * * * Mr. Boogaard recommended that unless the applicant wanted to address the Agency/Council, the Chair/Mayor open the hearings so the item would not have to be republished. and continne the items to a meeting on Jnly 15, 1995 recognizing that staff had been given negotiating instructions to Meet & Confer with the applicant fbr the next two weeks. MSUC (Horton/Padilla) to continue the item to a meetiug on July 25. 1995. Agency/Council Member Moot questioned whether the developer should be given some explanation. He stated that the Agency/Council was not prepared to approve the Development Agreement as submitted. Mr. Citron stated he needed direction because they were being told by SDG&E that they needed a check by 1:O0 p.m. on Wednesday in order to bring the gas into the property. They had fbur other checks that had to be written before the end of the week. The architect was to submit to the Building Department, in ten days, the building plans for the project based on the understanding that there would be a resolution at the meeting. He wanted some direction. Chair/Mayor Horton recommended that Mr. Citron meet with Mr. Salomone and then return to the issue later in the agenda. Mr. Boogaard stated that unless the Agency/Council had some overriding need to say something he recommended that the Agency/Council not respond to whether or not the developer should incur costs on the project. Staff had been given instructions to meet with the applicant and staff wlmld do that afier the meeting or first thing in the morning. Chair/Mayor Horton requested the Mr. SaIomone meet with Mr. Citron. Mr. Salomone stated Item E on the agunda waived the consultant process and authorized the execution of an agreement and that could be approved contingent upon successlid negotiation of the issue. ORAL COMMUNICATIONS None OTIIER BUSINESS 5. DIRECTOR'S/CITY MANAGER'S REPORT(S) - None 6. CHAIR'S/MAYOR'S REPORT(S) - None 7. AGENCY/COUNCIL MEMBER COMMENTS Member Rindone a. Status report on negotiations of the Broadway Business Homes Project. The request is to discuss in Closed Session. Member Rindone stated the item had been discussed at the last Redevelopment Agency Meeting and he did not have a need to discuss it again. ADJOURNMENT ADJOURNMENT AT 10:13 P.M. to the Regular Redevelopment Agency Meeting on August 1, 1995 at 4:00 p.m., immediately following the City Council meeting, in the City Council Chambers. Minutes July 11, 1995 Page 5 CLOSED SESSION The Agency met in Closed Session at 10: 15, reconvened at 11:15 p.m., and at[iourned at 11:16 p.m. 8. CONFERENCE WITH LEGAL COUNSEL REGARDING: Anticipated litigation pursuant to Government Code Sectinn 54956.9(b) Chula Vista Auto Park developers - South Bay Chevrolet and Fuller Ford/Honda/Kia v. City/Redevelopment Agency based on statements made in June 8th letter from Auto Park developers to staff Cnntlnued from the meeting of June 27, 1995 9. REPORT OF ACTIONS TAKEN IN CLOSED SESSION - No reportable actions were taken in Closed Session. Respecttidly submitted, BEVERLY A. AUTHELET, CMC/AAE, City Clerk -, by: \,,, \.k~.kl\ ," ",, ~,'~./ Vicki C. Soderq~st,~MC, Dg, puty City Clerk