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Home My WebLink Aboutrda min 1998/11/03 CC MINUTES OF A JOINT MEETING OF THE REDEVELOPMENT AGENCY/CITY COUNCIL OF THE CITY OF CHULA VISTA Tuesday, November 3, 1998 Council Chambers 4:28 p.m. Public Services Building CALL TO ORDER 1. ROLL CALL: PRESENT: Agency/Council Members: Moot, Padilla, Rindone, Salas, and Chair/Mayor Horton ABSENT: Members: None ALSO PRESENT: Executive Director/City Manager, David D. Rowlands; Legal , Counsel/City Attorney, John M. Kaheny; City Clerk, Beverly A. Authelet; and Deputy Ci.ty Clerk, Charline Long. CONSENT CALENDAR (Item pulled: 3) Member Padilla stated he will abstain on the September 22 minutes; Member Rindone stated he will abstain on the October 6 minutes; an~ Member Salas stated she will abstain on the October 20 minutes. Member Rindone requested that Item No.3 be pulled. BALANCE OF CONSENT CALEND~ OFFERED BY MAYOR HORTON, headings read, texts waived, passed and approved unanimously 5-0. 2. APPROVAL OF MINUTES: September 15, 1998, September 22, 1998, October 6, 1998 and October 20, 1998. Minutes of September 15, 1998 were approved unanimously 5-0; minutes of September 22, 1998 were approved 4-0-0-1 (Padilla abstaining since he was not at the meeting); minutes of October 6, 1998 were approved 4-0-0-1 (Rindone abstaining since he was not at the meeting); minutes of October 20, 1998 were approved 4-0-0-1 (Salas abstaining since she was not at the meeting). 3. RESOLUTION 1604 APPROVING AN AGREEMENT WITH ONSTAGE PI2%YHOUSE A.K.A. ONSTAGE PRODUCTIONS ANDAPPROPRIATING $10,000 FROM BAYFRONT/TOWN CENTRE I FUND BAI~NCE FOR THE BENEFIT OF TOWN CENTRE I REDEVELOPMENT PROJECT AREA-Onstage Playhouse aka Onstage Productions has been operating in the Town Centre I Redevelopment Project Area as a nonprofit corporation since 1985. The playhouse has been a successful endeavor and it continues to bring people into the Downtown area to enjoy the theater and patronize local restaurants and merchants. Recently, they renewed onstage's lease at a much high rental rate than previous years. The Board of Directors evaluated the fiscal impact of the rent increase and found that a budget deficit will result in 1998-99. Onstage has requested assistance from the City to keep the organization solvent while they can devise a plan to resolve financial and space needs. As per staff's recommendation, the resolution with two amendments was approved 5-0. (Community Development Director) 4/Sths Vote Re__quired Member Rindone, asked what the previous rental rate was for Onstage Productions. RDA Minutes November 3, 1998 Page 2 · Anisa Cox, Treasurer, Onstage Productions, 392 Nova Place, Chula Vista, stated that the previous rental rate, before July 1, 1998, was $1,123.71 per month and the new rate is $1,708.30 per month, a $584.59 per month increase. Member Rindone asked why the request was for $10,000 if the increase in rent only amounts to around $7,000 per year. Ms. Cox replied that they have operated on a negative budget for some time, incurring a $9,041 production loss and an expense of .$4,000 for a grant writer. However, the rent increase is what really hurt them. Member Rindone stated that the rent is a major debilitating factor, but is not the exclusive factor for the request of $10,000. Exec6tive Director Rowlands stated that this was his proposal. He had attended a program two months ago, and the folks at Onstage had indicated to him they needed help if they were to stay downtown. These folks are a major factor in bringing people downtown which is one of our goals. After talking to staff, regarding possible funding, staff indicated that there was money available to do so. This proposal is designed to assist Onstage Productions in staying downtown and to keep the program alive. Member Rindone responded that he agreed that keeping the program alive was important, he just wanted to know the difference in the rent increase and money requested. Pam Buchan, Principal community Development Specialist, replied that her report only showed a one year's increase in rent when in actuality Onstage wishes to extend their lease for a total of eighteen months. During this time, they hope to reevaluate their situation so they can stay downtown. Member Rindone stated that the playhouse provided a viable cultural activity and bringing people downtown is one objective of the Redevelopment Agency. He suggested that the City develop some creative ideas to publicize and market this very worthwhile community cultural experience. Some suggestions would be the SDG&E Newsletter, newspaper articles, or flyers; a community of nearly 160,000 can do a lot to solicit community awareness. Ms. Cox replied that if they do not receive some assistance they will go dark. Member Rindone responded that the Council understood their concerns and felt that with a vigorous effort over the next eighteen months they could turn circumstances around. Additionally, staff's recommendation that the Coors Amphitheater Performing Arts Fund might be a viable source of funding was very well received. It was the Council's intent when they envisioned the Amphitheater that it would bring first-class entertainment to the City and provide funding for the arts. The two most important factors are how to enhance attendance through publicity and not use redevelopment funds. Losing this community activity would be a great loss. We need to do what we can to support this group. Member Moot asked whom the principals and property managers were, and what plans existed for the building that caused them to raise the rent. Ms. Buchan replied Hadad & Hadad out of Los Angeles were the principals and that there was a strong possibility that the property was in transition. RDA Minutes November 3, 1998 Page 3 ~Ms. Cox stated that when they contacted the owner, they replied that they were in the business of making money not supporting a charity. Member Moot replied that this is problematic from a basic public policy point-of- view. Subsidizing a private business who wants more money with no explanation is a slippery slope we need to avoid. We need more facts about why this landlord is raising the rent and what they propose to do with this building. They are part of the Redevelopment Agency, and as such is a cooperative partner in the downtown redevelopment. If we have an uncooperative partner, we should find Onstage Production some place else downtown and work with a cooperative landlord. A landlord who is going to help these people promote their long-term viability on downtown Third Avenue rather than give $10,000 to an uncaring property owner. We should find a property owner who wants to support these activities. Staff was directed to report why the landlord raised the rent and what plans exist for this building7 Ms. Buchan stated that staff is helping Onstage in publicizing and creating more recognition among the city entities plus finding a long-term location downtown. The Onstage board has just recently met and reevaluated their mission, goals, and objectives. They are also looking at additional funding sources, such as grants in order to help themselves. They hope to find a home in the downtown area, because they would like to stay and we would like them to stay. Member Moot stated that as per Councilmember Rindone's suggestion, the ultimate source of money is the Performing Arts Fund and with the commitment of the Redevelopment Agency to contact the landlord/owner, he would support the item. ~Chris Salomone, Director Community Development, replied they would follow-up with a report on the activity turnover, rental increases, and ownership changes. Coors Amphitheater will deposit funds into the Performing Arts Fund in February. Staff will come to Council at that time with a policy that will involve what has been talked about. MEMBER RINDONE OFFERED RESOLUTION 1604, WITH TWO AMENDMENTS; 1) That staff come back to Council, on or before, July 31, 1999, with a report; 2) That Coors Amphitheater Performing Arts Fund is set-up so the Redevelopment Agency is paid back in full for any monies expended on this item, headinq read, text waived, passed and approved unanimously 5-0. FRIENDLY AMENDMENT Member Moot offered, as a friendly amendment, that staff return with a report as to the landlord's intentions and what they hope to accomplish in our Redevelopment Agency. 4. RESOLUTION 1605 APPROPRIATING $20,000 FROM BAYFRONT/TOWN CEN"~RE I FUND BALANCE TO THE DOWNTOWN BUSINESS ASSOCIATION FOR 1998-99 PROMOTIONAL AND ADVERTISING ACTIVITIES-On 3/17/98, the City Council approved the Downtown Business Association's 1998 budget and directed staff to submit the DBA's request for $20,000 from the Parking Meter Fund for promotional activities to be considered in the FY 1998-99 City budget. Subsequently, during the 1998-99 budget sessions, a report was submitted with the Finance Department's Parking Meter Fund budget recommending that the Downtown Business Association's $20,000 request instead be included in the Town Centre I budget. As per staff's recommendation, the resolution was approved 5-0. (Community Development Director) 4/Sths Vote Required END OF CONSENT CALENDAR RDA Minutes November 3, 1998 Page 4 ITEMS PULLED FROM THE CONSENT CALENDAR (Item 3 was pulled, however, the minutes will reflect the original published agenda order.) Of{AIL COMMUNICATIONS There were none. OTHER BUSINESS 6. DIRECTOR/CITY MANAGER'S REPORT(S) - None. 7. ~HAIR/MAYOR'S REPORT(S) - None. 8. AGENCY/COUNCIL MEMBER COMMENTS - None. ADJOUR/~ENT The meeting adjourned at 4:50 p.m. Respectfully submitted, BEVERLY A. AUTHELET, CMC/AAE, City Clerk By Charline Long, Deputy City Clerk