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HomeMy WebLinkAboutrda min 1996/10/15 CC MINUTES OF A JOINT MEETING WITH THE REDEVELOPMENT AGENCY/ CITY COUNCI~ OF THE CITY OF CHErLA VISTA Tuesday, October 15, 1996 Council Chambers 8:37 p.m. Public Services Building CALL TO ORDER 1. ROLL CALL: PRESENT: Agency/Councilmembers Scott D. Alevy, John S. Moot, Stephen C. Padilla, Jerry R. Rindone, and Chair/Mayor Shirley A. Herren ALSO PRESENT: John Goss, City Manager; 'Glen Googins, Deputy City Attorney; Beverly A. Authelet, City Clerk; and Patricia Schwenke, Deputy City Clerk. 2. APPROVAL OF MINUTES: None CONSENT CALENDAR None. PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES 3. PUBLIC HEARING TO CONSIDER ADOPTION OF THE 1996-97 REDEVELOPMENT AGENCY BUDGET AND APPROPRIATING FUNDS THEREFOR--The Redevelopment Agency budget was approved by the City Council as part of the City budget process, but still requires the formal adoption by the Agency Board. Staff recommends approval of the resolution adopting the FY 1996-97 Redevelopment Agency budget. [4/Sths Vote Required! (Community Development Director) Item continued from the meeting of 10/01/96. AGENCY RESOLUTION 1519 ADOPTING THE REDEVELOPIVIENT AGENCY BUDGET FOR FISCAL YEAR 1996-97 AND APPROPRIATING FUNDS THEREFOR. Mr. Goss stated this was the second year in a two-year effort to liquidate non-essential Agency assets, basically fixed assets, to provide liquid assets in order to eliminate the Agency's negative funds balance. It also marked another year, as with other parts of the City's operations, where the Agency tried to streamline the budget to better align the operating expenditures and revenues. It also reflected the fact that the City Council adopted an overall operating budget which had some implications for the Agency budget. While the Agency budget itself needed to be adopted, staffhad more up-to-date information than they had last June when Council adopted the City's operating budget. The beginning balance of July 1, 1996 would go from a plus $1.7 million to a plus $2.8 million; however, with recent information of legislature passing the State's subvention bill, that basically would bring the State's subvention revenues back to the Redevelopment Agency. It meant that both the RDA and housing parts would receive additional revenue, and it also reflected the Zogob loan repayment. The projected end balance for this fiscal year of RDA without restricted funds of $80,000 would increase to a projected $202,000, and instead of a projected Minutes October 15, 1996 Page 2 ending balance of $2.8 million, the RDA funds would be $3.2 million. In addition, the report lists some of the projects and land sales undertaken, and there was also discussion of the priority of projects of the RDA. In terms of the latter point, Council indicated a desire to have a workshop on overall City priorities and projects important for the City's economic development. Agency/Councilmember Rindone suggested having a separate priority budget workshop, and he asked Mr. Goss if he could arrange that process at the next scheduled RDA meeting. We have made tremendous progress in the last 2-1/2 years getting the Redevelopment Agency budget in line with its resources. He asked what the main cause was of going from an operating surplus in excess of $625,000 in 1996, to the proposed budget of having a deficit of operating surplus in excess of $511,000. It was more than a $1.1 million jump, and he asked if staff could share what the cost was. Lyle Haynes, Principal Community Development Specialist, answered that primarily they identified the property tax reassessments from Rohr and from properties in the Otay Valley Road Project area that were unexpected. In terms of their impacts that were coming on line this year, that was a big part of it. Agency/Councilmember Rindone said that it should be ongoing, but should not create a surplus being turned into a deficit, at least not in that magnitude. Bob Powell, Finance Director, stated the operating revenues in 1996 were $4.7 million, and in 1997 only $4.2 million. It reflected the reassessments primarily which were Rohr and in the Otay Valley area, specifically South Bay Chevrolet and some other large manufacturing entities. Agency/Councilmember Rindone asked if we would anticipate the smaller number of $4.2 million for subsequent years. Without one-time land sales, it would have a greater impact over a period of time. Mr. Powell said we are hopeful as to whether in 1997 we would absorb the major portion of the reassessmants. There are still quite a few pending, but we are no where near the magnitude of Rohr and the other ones in Otay Valley. Mr. Goss said the projects areas where there were improvements meant the assessed value would increase, but the basic point is we have to reflect our expenditure patterns to reflect the fact that we would get less revenue. They will need to look at that again when the budget is prepared next spring. Agency/Councilmember Rindone illustrated the concern of not accommodating non-producing land which would not help us and staff addressed that, but it was important to get the revenue in line with expenditures. He did not understand the second line of the report as it transferred in and out from $2.4 million in 1996 to $2.9 million, and he asked what caused that. Mr. Powell said approximately $288,000 was the repayment of the general fund loan from Otay Valley, which was classified as a transfer out of the Agency to the general fund. The other portion is a slight increase ia the debt service payments on the tax allocation bonds. Ageacy/Councilmember Rindone asked if the $288,000 would be reduced and help mitigate the deficit for 1998. Mr. Goss said that certainly would be an option if the decision was made. Ageacy/Councilmember Rindone asked if that would be a one-time payout. Minutes October 15, 1996 Page 3 Mr. Goss did not believe that it paid back th~ antire lo~n, but wh~ther or not the Agency paid back any or all of the loan, that is something done on a year-by-year basis. He thinks that at the time the decision was made, it was looked at from a perspective of what was available in the Otay Valley project area, and it did have the funds at that point to repay the part listed for this current fiscal year. Next year is a different story, and there may not be an ability to do that. Agency/Councilmember Rindone said there was a request to housing, which went from a surplus of $450,000 in 1996 to a deficit of $175,000. It created a surplus of the RDA from $1.7 million to an actual deficit in excess of $114,000, and he asked for an explanation. Mr. Haynes explained that in relation to 1996/1997, the housing fund received reimbursements from the home funds and McMillin totalling approximately $754,000 which were not reflected. In FY 1997, the housing fund would not receive those reimbursements. What the negative $175,000 represents is $300,000 going out for the Community Housing Improvement Program, but it is offset by the first payment of the Zogob loan repayment of $125,000. Agency/Councilmember Rindone requested in the future for staff to provide an explanation if there were significant changes in the budget. He also mentioned the three properties Shangri-La, Campos, and the Marina Motorhome Park were not included in the fiscal 1997 budget. Chris Salomone, Director of Community Development, commented that the Marina View Park deal would return to RDA in a few weeks and Shangri-La was close behind, as they were in the final stages of negotiations. They included a conservative figure of $250,000, although he thinks it'would be more than that. He believes there is a potential that the Campos and Marina Motor Hotel will be consummated during this fiscal year, but they were not included. Agancy/Councilmember Rindone asked if there were other potential land sales of non-revenue producing RDA properties that were not considered in the report. Mr. Goss stated they identified those that were immediately apparent. As the RDA goes through the budget process for next year, they will look at the inventory to sec if there are others that should be included. Agency/Coancilmember Alevy asked staff if there was any consideration given with respect to the stadium for multiple use, including the minor league baseball team. Mr. Salomone answered that in the very near future the item would return to Council for their direction. This being the time and place as advertised, the public heating was declared open. There being no public testimony, the public hearing was declared closed. CHAIR/MAYOR HORTON OFFERED AGENCY RESOLUTION 1519, reading of the text was waived, title read, passed and approved unanimously. ORAL COM~fUNICATIONS None. ACTION ITEMS 4. REPORT STATUS OF FAMILY FUN AND RECREATION CENTER PROJECT AND PRESENTATION OF PRELIMINARY ALTERNATIVE PROPOSALS FOR THE LOWER SWEETWATER VALLEY AREA Minutes October 15, 1996 Page 4 AT THE SOUTHWEST QUADRANT OF SR-54 AND 1-805--The applicant has requested that this item be continued to the Redevelopment Agency meeting on November 19, 1996. (Community Development Director) Item continued from the meeting of 09/17/96. Chris Salomone, Director of Community Development, stated the applicant wanted to continue this item to 11/9/96. MSUC Otorton/Alevy) to continue this item to 11/9/96. OTHER BUSINESS 5. DIRECTOR'S/CITY MANAGER'S REPORT: None. 6. CHAIR'S/MAYOR'S REPORT: None. 7. AGENCY/COUNCIL MEiVEBER COMMENTS: None. ADJOURNMENT The meeting adjourned at 9:00 p.m. CLOSED SESSION 8. SALE AND DISPOSITION OF REAL PROPERTY - Pursuant to Government Code Section 54956.8 · Disposition of Agency-owned property at 760 Broadway (Parcel Nos. 571-200-13, 14, 15, 16, 17), Redevelopment Agency Broadway Business Homes. Respectfully submitted, BEVERLY A. AUTHELET, CMC/AAE, City Clerk Patricia Schwenke, Deputy City Clerk