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Home My WebLink Aboutrda min 1995/08/01 CC MINUTES OF A JOINT MEETIN(; OF TIlE RI'21)EVEIX)PMENT AGENCY/CITY COUNCIL OF TIlE CI'FY OF CIIULA VISTA Tuesday, August 1, 1995 Council Chambers 5:13 p.m. Public Services Building CAI,I, TO ORDER 1. ROLL CALL: PRESENT: Ag~ncy/C~luncil M~'mbcrs, Alcvy, Mo,~lt, Padilia, Rindone, and Chair/Ma)or Fltlrton ALSO PRESENT: John D. Gilss, Dir~ctol/City Manager; Bruce M, Booguara, Agency/City Artre'hey; and Beverly A. Authelet, City Clerk 2. APPROVAL OF MINUTES: July 25, 1995 M[SUC (l-{orton/~tl~ot) to uppr~p.'e the minutes t~l' .lul.~ 25, 1995 as presenled. CONSENT CAI,ENI)AR (Item pnllcd: -1) 3. WRITTEN COMMUNICATIONS: Nillie. 4. RESOLUTION 1464 APPROVING LEASE BET~,'~'EEN OTAY VISTA ASSOCIATES AND THE REDEVELOPI%IENT AGENCY FOR OFFICE SPACE FOR TIlE OTAY RANCIt PROJECT--The current lease agreement between the Agency and Otay Vista Associates (Otay Ranch Prl~iect) will expire 8/2/95. A revised lease has been prepared and is heliuc the Agency tk}r collsidcration. Staff recommends approval of the resolution. (Community Development Director) Pulled from the Cm~sent Culendar. Member Moot questioned the relationship b~twccl/Otay ViMa Associates and the Baldwin Cumpany and to what extent that entity was related to the entities that were in bankruptcy. lie agreed with the Agency Attorney's notation that the bankruptcy issue did affect the p{~tcnti:d al~ildy of the Cily to evict a ram-paying tenauk Mr. Goss stated it was his undcrslanding that Otay Vista was a Imttncrship and not currently subject to the banknlptcy with its sourc~ of revenue~ coming h{m~ the ctm~pany Ih:tl was sul~ject m bankruptcy, i.e. the Baldwin Company. Chair Horton responded Ihat it was ,linl Bitldx~itl allkl his brt~lhcr liable liar the debt. II that was not a p~istm ot entity likely It~ ~ into bank~ul~tcy then he l~lt they did not have any r~l concern. However, if the general partner was a p:u'tncrship that could ~asily he taken inlo hankruptcy he would not be able to easily evicl. Chair Horton stated it was her understanding lhat oxcr the last severed weeks th~ Bankruptcy Court had alk~wed approximately $85,000/week to fll~w through to Otay Vista Associates to help keep them current. Mr. Goss stated they had been approved ti~r their prt~ct. ssing or "~o liarward" costs of $85,000/weck. It was not just Chula Vista and Otay Ranch, it illso included mhcl pt{~iccis. Mr. Boogaard reconmlentl~d that the p~{~poscd rcs{~lution bc impended t~ eliminate any risk by saying that the Agency approved the three iBol~th J~-ase with ()la) Vihl;i with the ild%~l[Icc ~vi ittcn al~proval of th~ bankruptcy trustee. Minutes Augnst 1, 1995 Page 2 That way it wonld be a clearly current cost ol the Ranch im~i,-,t :rod the Agcn~.} ','.tmld be p~t~tcctcd Member Rindone stated he wanted clarilication ot Member N'b~t's c{mccms. He questioned if the ireill was time sensitive. Mr. Goss did not feel there would be a problem with a one we~k delay. Member Moot stated the lease expired 8/2/95 and that not really leases provided that they ~ould renew automatically on a month-to-month basis. Mr. Boogaard stated he would be leery about evicting a mnnth-to-nl<mth tenant prot~'ctcd tinder bankruptcy laws than a leg tenant. He had researched the bankruptcy issue and was convinced by counsel in those areas that if the Agency had the written approval of the bankruptcy trustee that the Agency would be lifolooted. Staff l~lt they also mitigated the risk by recommending a three month Icasc rather than a twelve nlonth lease. He did not feel the Agency would be well served by lelling it go t~ a nlonth-k~-nlonth tcnltncy hcclmsc the Agency may then he sul~jgct to the atttomatic stay that wonld prevent any eviction prt~ccetlings. Member Rindone stated he was cornfin'table with that modification. ~ Ic rctlucslc'd that after throng that if staff had any g~rther concerns that it be brought hack to the Agency. Itt. l~lt the Agone} needed {he answers to Member Moot's questions. RESOLUTION 1464, AS A~!ENDED, OFFERED BY MEMB~ZR RINDONE, reading o1' the text was waived. Staff to return next week with a writtea reporl teem'dine the [iduciar} reh~liouship between Otay Vista Associat~ and the Baldwin Company. Member Moot felt it would be helptill lk~r tile Agency to understand the r~.lationship between the dift~rent Baldwin entities. ~ere were several entities that were not in bankruptc> M~ich th~ Agency did not need to be overly concerned about. He felt that would help to clear up much of the puhlic conlttsion. VOTE ON MOTION: approved ummimously. * * END OF CONSENT CALENDAR * :~' PUBLIC HEARINGS AND RELATEI) RESOI.UTIONS AND ORDINANCES 5. PUBLIC IIEARING SALE OF AGENCY PROPERTY I,OCATEI) AT 315 FOURTII AVENUE WITHIN THE TOWN CENTRE I REI)EVELOPMENT PROJECT AREA TO TIlE CITY OF CtlULA VISTA, CALIFORNIA, WITHOUT PUBLIC BIDDING--Stall inlill reed the Agency at its 5/23/95 meeting the three proposals received tier purchase ~lf the haildrag were unacccptal3le. 'Fht~ Agency tlilectcd slalf to prepare a Purchase and Sale Agreement tbr Agency/CImncil leview and apprttval. SInIT retluesls continuance 0f the Public llearing to the Agency meeting ot' Autl'ust 15, 1995~ CImtinut,:l t'rmn Ihe meeting oI' June 20, 1995. (Colm'nnnity Development Director) A. RESOLUTION 1458 APPROVING SALE OF CERTAIN PROPERTV LOCATED AT 315 FOURTH AVENUE WITHIN THE TO%VN CENIRE I REDEVELOPMENT PROJECT AREA TO TIlE CITY OF CHULA VISTA, CALIFORNIA ~VITIIOUT PUBLIC BII)I)ING, APPROVING PURCHASE AND SALE AGREEI%fENT WITH THE CITY OF CtlULA VISTA, CALIFORNIA, AND AUTIIORIZING TtlE CHAIRMAN TO EXECUTE SAME B. RESOLUTION 17926 APPROVING TIlE PURCIIASE O1" CERTAIN PROPERTY LOCATED AT 315 FOURTH AVENUE WITtlIN TIlE T()X'~'N CENTRE I REDEVELOPMENT PROJECT AREA FROM THE REDEVELOPMENT AGENCV, APPR(IVING A PURCIIASE AND SALE AGREE~IENT WITH THE REDEVELOPMENT AGENCV OF I'IIE CII'Y OF CHULA VISTA, CALIFORNIA, AND AUTHORIZING TIlE MAYOR TO EXICCIJTE SAMI". Minutes August 1, 1995 Page 3 MSUC (Rindone/Alevy) to conlinue the pubfie he:Lrinl~ tl~ tile 8/15/95 raceling. ORAL UOMMUNICATIONS ACTION rFEMS 6. RESOLUTION 1465 AND RESOLUTION 17985 APPROVING SUBSTITUTION OF PROJECT UNDER A LEASE AGREEMENT (TO%VN CENTRE 11 PARKING PROJECT - PHASE TWO) AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS TtlERE~,VITH--The Agency and City issued $3.1 million in Certificates of Participation in 1993 to pay the Agency's share of costs related to the construction of the parking structure at Chula Vista Center. For the i~urpose of issuing th~ I~onds, three City*owned properties were leased to the Agency and leased hack by the City. The City now wishes to sell one of those properties, Marina View Park, to the San Diegtl Unified Plllt District, which ,.'.'ill nt'cessilate substituting a property of eqtml or greater value in the Site [,ease Agreement. Stall recommends apl~rllval of the resolution. (Community Developtnent Director) Member Rindone tluestioned where the line ot demarcatilln `.vas ti~r th~ eastern portion of the park. Fred Kassman, Redevel~.lpment Coordinator. stated it tillhlwed a notch in the park and was just about the center. The City's section of "J" Street Marina View Pa~k was presently in the bond documents and and staff was recommendin the substitution of one-haltot Mclll~n'ial Park, which was approxmmtely the same size, hut would have a greater val~e. Staff had ordered a CLTA policy ;vhich ,.v{ndd map it uut and legally describe the parcel. RESOLUTIONS 1465 AND 17985 OFFERED BY MEMBER RINDONE, reading nf the text was waived, passed and approved unanirunusly. ITEMS PULLED FROM TIlE CONSENT UALENDAR Item ptdled: 4. The mmut~..s ,.,.'ill rdlect the published agenda order. OTIIER BUSINESS 7. DIRECTOR'S/CITY MANAGER'S REI'ORT(SI - None 8. CHAIR'S/MAYOR'S REPORT(S)_ - Nim¢ 9. AGENCY/COUNCIL MEMBER COMMENTS Member Rindone a. Member Rindone stated tbc concept ot the apprl~val I~l the Baytt<mt prl~i~ct had been brought belbre the Agency and was conceptually appmved on a 4-1 v~ne and from there it went befi~re the Coastal Commission for approval. He questioned if there was a conditi~m th;~t hdiu't~ a Bayli'ont plan was approved that a DDA had to be approvM by the Agency. Fred Kassman, Redeveh~pment Coordmat{n', rcsp~mdcd that it had always bc~n stalFs understanding that a DDA was required lbr the prqiect. Thtqt' xvas m~n'e plamm~g that was rcquircd 3lid a Specific Plan had to be brought back to the Agency. Minutes August 1, 1995 Page 4 Member Rindone questioned if it was appropriate to sa,,. that the,~ Agclw,v did not have an appltwed Bayfront plan since the DDA was part of the condition. Mr. Goss stated he was not certain technically what ~t wottld lucan. Thctc xva~ a p[at~ tl~at was approved by the no DDA or Specific Plan and additional approvals were t~ccdcd. Member Rindone stated he had received al~ inquiry h'om a constitut. nt alld ht~ x~anted t¢~ pnn'ide clarificatioA. There was conceptual approval, but not an officioally adopted Specific Pkm tD~ th~ Baylront. Mr. Goss stat~ there was an approved plan. ~e last level had not b~n r~ched. One of the cot~ditions was the ict[ttifcll~cnt ot a DDA and that fi~rther planning had to occur before building peafits could be drawn. They c~mld m,t go f~Hx~ard, but it could not be put in a use that r~uir~ new pl~ing. If they wanted a new use, ¢Rher than what wa~ plantled, they would have to get ADJOURNMENT ADJOURNMENT AT 5:30 P.M. to a Joint Redevelopmerit Agency/City Council ,M~ctmg on August 15, 1995 at 6:00 p.nl., immediately tBI]owing lhe City Council meeting, in the City Council Respectfidly sttbmitted. , . i i", ' ' ,, by: V~k~C. Sd [ .t. CMC tt>CtyCIgk