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HomeMy WebLinkAboutrda min 1998/11/10 CC & HA MINUTES OF A SPECIAL JOINT MEETING OF THE REDEVELOPMENT AGENCY/CITY COUNCIL/HOUSING AUTHORITY OF THE CITY OF CHULA VISTA Tuesday, November 10, 1998 Council Chambers 8:47 p.m. Public Services Building CALL TO ORDER 1. ROLL CALL: PRESENT: Agency/Council Members: Moot, Padilla, Salas, Chair/Mayor Horton ABSENT: Agency/Council Member: Rindone ALSO PRESENT: Executive DirectorjCity Manager, David D. Rowlands; Legal ~ Counsel/City Attorney, John M. Kaheny; City Clerk, Beverly ' A. Authelet; Deputy City Clerk, Charline Long ORAL COMMUNICATIONS There were none. PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES 2.a) PUBLIC HEARING: CITY COUNCIL CONSIDERATION OF THE ISSUANCE OF TAX EXEMPT OBLIGATIONS WITH RESPECT TO THE PROPOSED VILL~% SERENA SENIOR AFFORDABLE HOUSING PROJECT--The City has received a request from Sunbow Center L.P. to issue $8 million in Tax Exempt Multi-Family Housing Revenue Bonds to finance the proposed 132-unit Villa Serena Apartments for low-income seniors located on the northeast corner of Medical Center Drive and Medical Center Court within the Sunbow II subdivision. As required by federal tax law governing the issuance of tax exempt bonds, a public hearing must be held by an elected representative of the governmental unit having jurisdiction with regard to the intent to issue such bonds. Therefore, Council is asked to hold a public hearing regarding the Housing Authority's intent to issue tax exempt bonds for the financing of the project. Additionally, it is requested that the Authority adopt a resolution expressing its intent to issue tax exempt bonds for the project and the Council adopt a resolution authorizing the issuance, sale and delivery of the bonds by the Authority. As per staff's recommendation, Housing Authority Resolution HA-08 and Council Resolution 19256 were approved 4-0-1 (Rindone absent). (Community Development Director) 2.b) HOUSING AUTHORITY RESOLUTION HA-08 REGARDING ITS INTENTION TO ISSUE TAX EXEMPT OBLIGATIONS FOR THE VILLA SERENA APARTMENTS 2.c) COLq~CIL RESOLUTION 19256 AUTHORIZING THE ISSUANCE, SALE DELIVERY OF MULTI-FAMILY HOUSING REVENUE BONDS BY THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA FOR THE VILLA SERENA APARTMENTS Juan Arroyo, Housing Coordinator, stated that they were successful in obtaining bond conunitment from Citlak. The developer will be coming back to the authority in February 1999 to request final approval for the issuance of these bonds. The 133 unit development for affordable low income housing for seniors is proposed to be restricted for a period of 52 years. This will satisfy the low income RDA Minutes November 10, 1998 Page 2 housing requirements of the Sunbow II community which is now well underway. The proposed site is adjacent to the Veteran's Home project, an excellent site for such a development. Even though the City's highest priority is for the development of affordable housing for family units, because of the site and its amenities directly related to senior needs this is an ideal site for this project. It is anticipated that the developer will request financial assistance in the amount of $275,000 in the near future. Staff will return to Council in February 1999 with a full financial analysis, assuming all financial commitments have been met. Secured construction is expected to begin sometime in the summer of 1999. Member Moot stated that he concurred with Council and staff that this is an excellent project at a very good site. COUNCIL RE~OLUTION 19067, and HOUSING RESOLUTION HA-08, OFFERED BY MEMBER MOOT, headings r~ad, texts waived, passed and approved 4-0-1 (Rindone absent). ACTION ITEMS 3. COUNCIL RESOLUTION 19257 AND AGENCY RESOLUTION 1606 APPROVING AN EXCLUSIVE NEGOTIATING AGREEMENT SUBJECT TO OWNER PARTICIPATION RIGHTS WITH AGENCY TUCHSCHER DEVELOPMENT ENTERPRISES, INC. REGARDING DEVELOPMENT OF A MIXED USE PROJECT ON THE MIDBAYFRONT PRoPERTY--Tuchscher Development Enterprises, Inc. has requested an Exclusive Negot£ating Agreement for one year, with an option for a six month extension, in order to develop plans, pursue entitlements, secure financing and negotiate a Disposition and Development Agreement to develop a 126.8 acre area located on the Midbayfront. The 2.7 million sq. ft. mixed use proposal incorporates resort, multi-family residential, R&D/office, entertainment/retail, and active park and open space. Staff recommends the Agency/Council approve the resolutions, and direct staff to extend Owner Participat£on Rights within 30 days of the effective date of the Agreement. (Community Development Director) 4. COUNCIL RESOLUTION 19258 AND AGENCY RESOLUTION 1607 APPROVING A PROJECT STAFFING/CONSULTANT AND PROCESSING AGREEMENT WITH TUCHSCHER AGENCY DEVELOPMENT ENTERPRISES, INC. FOR DEVELOPMENT OF A MIXED USE PROJECT ON THE MIDBAYFRONT PROPERTY - Tuchscher Development Enterprises, Inc. is proposing to develop a portion of the Midbayfront with a 2.7 million sq. ft. mixed use project comprised of resort, multi-family residential, R&D/office, entertainment/retail, and active park and open space. The proposed project will require a number of entitlements, permits and approvals including, but not limited to, General Plan, Specific Plan and Local Coastal Program amendments, an Environmental Impact Report, and a Tentat£ve and Final Map. The proposed Agreement would provide the Developer with assigned professional staff and consultants in order to process the project in a timely manner and would ensure the Agency/City is reimbursed for expenses incurred in processing the Developer's applications. Staff recommends approval of the resolutions. (Con, unity Development Director) MSC (Horton/Padilla) to continue items 3 and 4 to November 17, 1998, approved 4- 0-1 (Rindone absent). 5. COUNCIL RESOLUTION 19259 AND AGENCY RESOLUTION 1608 APPROVING LOANS IN THE TOTAL AMOUNT OF $169,000 TO SOUTH BAY COMbrUNITY SERVICES FOR THE ACQUISITION OF TWO PROPERTIES FOR THEIR OPERATION AS SUPPORTIVE HOUSING FOR THE HOMELESS OR VERY LOb INCOME FAMILIES AND THE APPROPRIATION OF $117,900 FROM THE CITY OF CHIrLA VISTA'S HOME FUNDS A/qD $51,100 FROM THE REDE~q~LOPMENT AGENCY'S LOW AND MODERATE INCOME HOUSING SET-ASIDE F~FND THEREFOR - South Bay Community Services (SBCS) has leased two condominiums through the U.S. Department of Housing and Urban Development's Single Family Property Disposition Program for the maximum time limit of four years. These condominiums are used as housing for women and children left homeless as a result of domestic violence. W£th the expLration of the lease SBCS must now purchase the condominiums for the below market price offered by HUD in order to continue and maintain these condominiums for their transitional living programs or housing for v~ry low income families. SBCS requests that the Agency and City provide financial assistance to support the acquisition of these condomLniums for their continued use as confidential domestic violence shelter sites, other transitional living programs, or housing for very low income families. (Community Development Director) 4/5tbs Vote Required Juan Arroyo, Housing Coordinator, stated that the proposal is consistent with the City's housing element and consolidated affordable housing plan. The proposal also provides SBCS the opportunity to continue providing housing for families left ~omeless due to domestic violence and for other transitional housing needs. The condominiums location is confidential because of the nature of the use, but one of the units is east of 805 and the other is west of 805. Both condominiums are close to 100 plus-unit-type developments that are in very good condition. This is an important effort that meets our objectives to deal with the many housing needs in our community. Member Padilla stated that any opportunity to maintain a program that assists people who are literally refugees from their own homes due to domestic violence is important. MEMBER PADILLA OFFERED RESOLUTION 19259 AND AGENCY RESOLUTION 1608, heading read, text waived. Resolution approved 4-0-1 (Rindone absent). 6.a) AGENCY RESOLUTION 1609 AMD COUNCIL RESOLUTION 19260 APPROVING THE DOWNTOWN HOLIDAY LIGHTING PROGRAM - On 8/4/98, the Agency/Council approved a conceptual plan for the Downtown Holiday L~ghting Program and directed staff to provide a detailed program implementation plan and to amend the Town Centre I Fine Arts Policy to include the Holiday Lighting Program. On 10/6/98, the Agency approved the proposed amendment to the Town Centre I Fine Arts Policy. The proposed Downtown Holiday Lighting Program as well as a contract with DEKRA-LITE for the implementation of the Downtown Holiday Lighting Program is presented this evening for consideration by the Agency/Council. Per staff's recommendation, Agency Resolution 1609 and Council Resolution 19260 were approved 4-0-1 (Rindone absent). (community Development Director) 6.b) AGENCY RESOLUTION 1610 ENTERING INTO AN AGREEMENT WITH DEKRA-LITE FOR MAN~3FACTURE, INSTALLATION, REMOVAL AND STORAGE OF DECORATIONS FOR THE DOWNTOWN HOLIDAY LIGHTING PROGRAM AND APPROVING $91,907.31 THEREFOR Pam Buchan, Principal Community Development Specialist, stated that representatives from Dekra-Lite were available in the audience to answer any questions. Chris Salomone, Community Development Director, stated they had a video from Dekra-Lite and an extensive presentation that pretty much mirrored the material in the agenda packet. Member Salas asked the following questions: 1. Was there a selection committee? RDA Minutee November 10, 1998 Page 4 2. Is the Downtown Business Association subsidizing the program with $4,000 a year? 31 Was their any type of survey conducted with the other business owners as to their acceptance of this project? 4. What percentage of the businesses does the DBA represent? 5. Was 'the amount already appropriated from the Fine Arts Fund for the 1998 lighting program $91,907 with a recurring annual cost of $10,OO0 correct? Ms. Buchan responded: 1. A task force had been formed consisting of staff and six merchants. 2. The DBA had agreed to $4,000 a year contribut£on. 3. There was no adverse reactions to the program from business owners. 4. The DBA represents about 350 merchants and professionals in the downtown 5. Th~se amounts are correct. Member Salas asked the following: 1. What part of the decorations are warranted and for what length of time? 2. What is the life expectancy of these decorations? 3. How often are we going to spend an additional $91,000 to keep the decorations looking nice? , Derka-Lite responded with the following: 1. The guarantee covers all steel frames for six years, garland for three years, and computers and/or lighting components for one year. 2. Around five to seven seasons, decorations are well taken care of and stored on racks during the off-season. 3. Typically after five to seven seasons people want to change their decorations anyway. Member Salas replied that she was concerned that after the initial cost that they would be investing another $100,000 in five to six years. Mayor Horton stated that this was a start and we are hoping to expand on this program and really create something very substantial. If it gets to the point where its very similar to what Del Mar has it could be self-supporting by charging for cars to go through. Yet it provides a wonderful atmosphere during the holidays for the children and families. Member Salas replied that they had talked about recoup£ng costs by charging visitors to drive through and the business community objected as a negative business enticement. Mayor Horton replied that one of the reasons for going into the park area was that in the future we can create something wonderful and separate from the street lighting. Member Salas replied that the cost was very upsetting, but she would support it because the funds were specifically earmarked from the Fine Arts Fund. She was concerned what the community would say, especially afte~ hearing testimony from Joann Angel regarding the graffiti problem. We will probably have some inquiries from the public as to why we are spending so much money on holiday lighting instead of graffiti eradication. Member Padilla stated that he would like a short response from Derka-Lite regarding their company. Derka-Lite responded that their firm is 11 years old and they have the backing of the manufacturer who has been in business for 51 years. Their clients include Universal Studios, Disneyland, Seegstroms, and the Irvine Company. They are the largest provider of holiday lighting on the west coast servicing Arizona, Nevada, and California. Mayor Horton, stated that even though a very small portion of the funds were coming from the DBA they planning on participating and investing more money in the future. Buchan, replied that a financial commitment from DBA indicates that they will provide $4,000 annually for maintenance and installation. The DBA membership is participating in several other ways this year other than financially. They will have at least ten of their buildings between F and E Street with significant decorations, much more than just a string of lights and a wreath. At least five businesses have signed contracts for exhibits and displays for their buildings and five others are working towards that end. They have also committed to building a Santa's workshop in Memorial Park, where you can have your picture taken with Santa. Hopefully we will have two to three activities in the bowl area of Memorial Park. But they have net committed more dollars. Mayor Horton asked how much of the lighting and decorations w£11 be in place by December 5, the night of the parade. Dekra-Lite responded that they are planning to have all of the large cobra-head displays and most importantly the E Street entry way finished for the night of the parade. The balance of the bigger presentation to be completed by the 9~h of December 1998. With everything going smoothly and all products coming in on- time we anticipate that the trellis', palm trees and medians will be wrapped with colored lights to add excitement for the foot traffic by December 5, 1998. Mayor Horton asked if the Santa and his sleigh would be included. Dekra-Lite responded that they are looking for a ~ice place downtown for adding Santa and his sleigh. Pam Buchan replied that it had been discussed with one of the downtown business people who had a nice flat roof between E Street and Davidson. We are discussing this further with the consultant and well on our way to accomplishing this add- on. It is in our contingency plan and we have talked to our attorneys and hope to do a good job with it. Member Salas stated that after looking at the itemized breakdown cost for installation, removal, and storage of $14,000 it really made her appreciate what the City had for 40 years on Candy Cane Lane. We really need to thank them for all that they did for so many years. Mayor Horton asked what the annual charge of $250 was. Dekra-Lite responded that they buy the best mini-lights available, unfortunately we have not found the perfect mini-light, and they need to be replaced each year, it's a small expense. Mayor Horton stated that she was very pleased to hear that the downtown businesses would be participating by providing additional decorations in their windows and buildings. I think that will complement what staff is providing. COUNCIL RESOLUTION 19260, AGENCY RESOLUTIONS 1609 AND 1610 .OFFERED BY MAYOR HORTON headings read, texts waived, passed and approved 4-0-1 (Rindone absent). RDA Minutes November 10, 1998 Page 6 OTHER BUSINESS 7. DIRECTOR/CITY MANAGER'S REPORT(S~ - none. 8. CHAIR/MAYOR'S REPORT(S) - none. 9- AGENCY/COUNCIL MEMBER COM~4ENTS - none. AD__JOURNMENT The meeting adjourned at 9:16 p.m. Respectfully submitted, SEVERLY A. AUTHELET, CMC/AAE, City Clerk Charline Long, Deputy City Clerk