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HomeMy WebLinkAboutCVRC Min 2009/10/08MINUTES OF THE SPECIAL MEETING OF THE CHULA VISTA REDEVELOPMENT CORPORATION (CVRC) Date: October 8, 2009 4:00 P.M. The Special Meeting of the Chula Vista Redevelopment Corporation was called to order at 4:03 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California CVRC ROLL CALL PRESENT: Directors Desrochers, Flores Munoz, Reyes, Paul, Salas, and Chair Lewis ABSENT: ALSO PRESENT: Deputy City Manager/Development Services Director Halbert, Deputy City Attorney Silva, Redevelopment Manager Crockett, Housing Manager Mills, Principal Project Manager Hines, Associate Planner Zumwalt, Senior Administrative Secretary Laughlin. Also in attendance: Mr. & Mrs. Gutierrez, Walter Goodseal, Designer and the project engineer for the Gutierrez Auto Center, CIC Representative Dyson PLEDGE OF ALLEGIANCE, MOMENT OF SILENCE CONSENT CALENDAR 1. WRITTEN COMMUNICATION Memorandum from Paul Desrochers requesting excused absence from the regular meeting of the CVRC of July 23, 2009. Memorandum from Rafael Munoz requesting excused absence from the regular meeting of the CVRC of August 6, 2009. Memorandum from Hector Reyes requesting excused absence from the regular meeting of the CVRC of August 6, 2009. 2. APPROVAL OF MINUTES ACTION: Chair Lewis made a motion to pull the minutes for meeting dates of May 14, June 17 and July 23 and approve separately as at least one Board member was Page 1 of 9 CVRC -Minutes -October 8, 2009 absent (abstaining vote) from each meeting. Motion seconded by Board Member Salas and was approved 6-0-1-0 ACTION: Director Desrochers moved approval of the remainder of the Consent Calendar. Director Salas seconded the motion and it carried 6-0-0-1 with Director Flores absent. ACTION: Staff Recommendation: Approve the minutes of the Regular Meeting of May 14, 2009. Motion by Director Desrochers and seconded by Director Munoz. Motion was approved 5-0-1-1. ACTION: Staff Recommendation: Approve the minutes of the Regular Meeting of June 17, 2009. Motion and seconded. Motion was approved 4-0-2-1. ACTION: Staff Recommendation: Approve the minute of the Special Meeting of July 23, 2009. Motion and seconded. Motion was approved 4-0-1-1. PUBLIC COMMENTS There were none. PUBLIC HEARINGS 3. DESIGN REVIE APPLICATION (DRC-06-10) FOR THE CONSTRUCTION OF THE GUTIERREZ AUTO CENTER AT THE SITE AT 2681 MAIN STREET WITHIN THE MERGED CHULA VISTA REDEVELOPMENT PROJECT AREA (SOUTHWEST AREA) The proposed project is for the demolition of the existing structures and construction of an auto center facility and associated site improvements on the property at the southwest corner of Main Street and 27`h Street. The site is currently occupied by a vacant motel building and several older, non-conforming structures that are used as auto repair shops. Based on the Design Review Application, staff has determined that the project, as presented in the attached conceptual design plans, is in substantial conformance with the regulations and design objectives. Associate Planner Zumwalt gave a PowerPoint presentation on behalf of Miguel Tapia, who was unable to attend the meeting. Mr. Zumwalt gave the project location and a description of other businesses in the immediate area. Photos of the existing buildings were displayed. Also shown were a proposed site plan, floor plan, landscape plans, and elevation plans. Since the project has conformed to the City's development standards, guidelines of design and landscape manuals, staff is recommending that the CVRC Board approve the permit for the design review DCR- 06-10. Page 2 of 9 CVRC -Minutes -October 8, 2009 Questions Director Reyes: Concerned about a major corner being wasted, are we coordinating with the Vasquez family and how long has it been in the process with the city? These questions and concerns were answered by Associate Planner Zumwalt and Director of D.S. Halbert. Director Desrochers: Concerned about the traffic circulation in the triangle. Concerns addressed by Redevelopment Director Crockett and Director of D.S. Halbert. Director Salas: Also had concerns about the Vasquez family, however, they have been addressed. Chair Lewis voiced that he was not happy with the 4 years this project has taken to get to just the Design Review stage. We need to step up the pace in the next phase. He also indicated that the 27`h Street piece was difficult and complemented staff on the resolution of problems. He then asked what was going to happen to the current tenants. Designer Goodseal explained that the tenants will remain in the project and will be phased in as it progresses. Director Munoz asked if the whole triangle of property was to have full street improvements. Director of D.S. Halbert assured him that there would be full improvements and Manager Crockett advised the Board that the western side improvements were included in the Vasquez project. Director Paul asked a question about drainage - if it would be surface drained or underground. A.P. Zumwalt said that in the Southeast corner there would be a water retention site. ACTION: Director Desrochers moved to adopt CVRC Resolution NO. 2009-008 heading read, text waived: RESOLUTION CVNC 2009-008 OF THE CHULA VISTA REDEVELOPMENT CORPORATION APPROVING A DESIGN REVIEW PERMIT (DRC-06-10), TO ALLOW THE CONSTRUCTION OF A 10,400 SQ. FT. AUTO REPAIR CENTER BUILDING ON THE SITE LOCATED AT 2681 MAIN STREET IN THE SOUTHWEST AREA OF THE CITY OF CHULA VISTA. Director Salas seconded the motion and it carried unanimously 7-0-0-0. Page 3 of 9 CVRC -Minutes -October 8, 2009 ACTION ITEMS 4. LANDINGS II AFFORDABLE APARTMENTS; $4 MILLION AGENCY LOAN Chelsea Investment Corporation (CIC) and Brookfield Shea have proposed the development and construction of a 143-unit affordable housing development for low income households, known as The Landings II (the "Project"). The Project is located at the northwest corner of Discovery Falls Drive and Crossroads Street within the Winding Walk master planned community and exceeds the affordable housing requirement for the community. The City has already committed $2.4 million from its HOME funds and considered a $2 million contribution from The Eastlake Company ("Eastlake") in satisfaction of their affordable housing obligation for Eastlake III. With the current financial market, the funding gap for the project has increased. To finance the Project, CIC is requesting that the Redevelopment Agency of the City of Chula Vista consider apre-commitment of a $4 million loan from its Low and Moderate-Income Housing Fund ("Housing Fund"). Leilani Hines, Sr. Project Manager gave a brief description of the project and had a PowerPoint presentation. She advised the Board that the City Council had previously taken action in June of 2009 to financially support this project. In May and June of 2009, necessary actions were taken for the issuance of bonds. However, due to the current market conditions there is a need for greater assistance and CIC has returned to request a $4 million loan from the Agency. Further presentation included slides showing location, giving a description, a graph of affordability and rents showing a decrease in requirements to provide deeper affordability. There was also apie-chart in the presentation that showed how the proposed financing would be split between the different agencies, fees, tax credits and bonds. Mandy Mills, Housing Manager spoke with respect to the Agency loan and how it plays into the financing structure. She stated that since the initial pricing equations were made, pricing of tax credit equity has changed dramatically, as has the underwriting requirements for banks. The ability to secure the permanent debt as well as the pricing on the tax credit equity has changed the performance significantly. So, CIC came back to see if there was anything we could do about some additional subsidy. Per Manager Mil Is, we don't get many Home Funds and we have already maxed out the funds for this year and the $2.4 million was all we could give them from that money. If we exceeded the $2.4 million, it would have pushed the project into a "prevailing wage" project and it would have ended up increasing the cost of the project. Although we don't normally like to lend out low mod funds outside the project area, due to the market we are not seeing a lot of new projects we could lend the money. That Page 4 of 9 CVRC -Minutes -October 8, 2009 would mean CIC making an adjustment in the bonds and have less cash to equity. It could be lent at a below market interest rate and have hard payments over a 20 year period of time. It is not really considered a subsidy as are our Home Fund loans; it is more of a loan because it's structured as a hard debt. One of the slides shown indicated that the City would only get half credit when reporting to the State because it is outside of the project area. There are 142 units for a credit of 71. There is a benefit though because it enables us to get some low and some very low income housing versus low and moderate at full credit rate. This will fare well with the State of California. Housing Manager Mills elaborated on the limited residential property within the project area, the reporting requirement of low and very low income residents, and the limited financing that is available. She also said that we do not foresee any major projects starting within the next 3 years. Mills showed the following information on a slide and explained the differences: Landings II Inclusionary / Greenfield 71 unit credits Assistance @ $56,336 per credit Repayment monthly amortized for 20 years r7a 2% Affordabi I ity 50%AMI (14 dus) 60% AMI (57 dus) Los Vechios Urban Landfill 41 units Assistance [?a $135,238 per unit Repayment based on residual receipts for 55 years cLD 3% interest Affordability 30% AMI (5 dus) 45% AMI (7 dus) 50% AMI (21 dus) 60% AMI (8 dus) If approved tonight, the timeline would be as follows: October 20 RDA/CC $4 Million loan Eastlake Amendment December 16, 2009 Bond Allocation Mid-March 2010 -Closing of Project Issuance of Bonds by Housing Authority Appropriations April 2010 -Construction Begins December 2011 -Project Completed Page 5 of 9 CVRC -Minutes - Oc[ober 8, 2009 The presentation was completed and Housing Manger Mills, Sr. Project Coordinator Hines and the representative for CIC, Mr. Dyson were available to answer questions. There were questions and some additional discussion regarding: Director Paul 1) What recourse is there should payments not be made? 2) The source of the $4m as opposed to what other resources would be retained for future opportunities should they come up. Director Salas 1) What has changed with respect to the availability of funds? He made a direct referral to the tax credits. Director Reyes 1) Financing has become an issue; direct costs have gone down. How much did those things play a positive affect on the performance of CIC? 2) Has there been any willingness from the City to assist in waving, varying or extending of the fees? 3) How big are the units and what type are they (apts, condos, townhomes)? Desrochers 1) From the pie-chart there are 38% off-site costs and fees. Please explain the $14 (38%) cost. 2) Since there are no projects on the horizon for the next 3-4 years, what will the balance of the LOW/MOD Fund be after this loan? 3) If someone came in with a project in the next two years, would we have the money for them? Flores: 1) Even though these units are 3-story, there is one bedroom on the first floor and at least some are ADA accessible, correct? 2) There are some on-site amenities, are there also any other services available to the residents? Chair Lewis 1) Thinks it's a wonderful project. However, he's having a hard time with loaning money when we don't seem to get it back. It doesn't make sense to loan $4M at 2% and say we can still use it for other projects. He asked for some clarifications. 2) As we deplete our housing funds to $2M, how are we going to fund projects if somebody has something before we have enough money to fund it? He wanted to know that we can deal with something if it comes up before the funds are replenished. 3) Is it correct that this project will satisfy the Moderate Income Housing requirements for the City? Questions and concerns were answered to everyone's satisfaction and there was some additional discussion and information given by: Managers Crockett and Mills, Mr. Dyson (CIC) and Sr. Project Coordinator Hines. Page 6 of 9 CVRC -Minutes -October 8, 2009 ACTION: Director Paul moved to adopt CVRC Resolution NO. 2009-009 heading read, text waived: RESOLUTION OF THE CHULA VISTA REDEVELOPMENT CORPORATION RECOMMENDING CONDITIONAL APPROVAL OF A LOAN FROM THE LOW AND MODERATE INCOME HOUSING FUND IN AN AMOUNT NOT-TO-EXCEED $4,000,000 TO CHELSEA INVESTMENT CORPORATION FOR THE DEVELOPMENT OF A 143-UNIT PROJECT FOR LOW INCOME HOUSEHOLDS KNOWN AS THE LANDINGS II Director Munoz seconded the motion and it carried 6-1-0-0. 5. AMENDMENT TO THE AMENDED AND RESTATED OWNER PARTICIPATION AGREEMENT WITH SCRIPPS MERCY CHULA VISTA. This item was pulled until a future date. 6. CHIEF EXECUTIVE OFFICER'S REPORTS Development Services Director Halbert gave athank-you to Directors Flores & Reyes for coming in and helping with a project on Broadway. They assisted in making a determination that a project should be reviewed under substantial conformance, thus saving the owners thousands of dollars as well as months towards a construction date. 7. CHAIRMAN'S REPORTS Chair Lewis congratulated Director Halbert and Manager Crockett and other staff/Board members for helping put together some things. He announced three (3) projects that are being looked at for feasibility. They are and those persons involved are: 1.) Sweetwater High School District Headquarters -Lewis, Desrochers & Munoz 2.) Voyage LLC Residential Housing Project -Munoz & Flores 3.) Mountain West Apartment & Assisted Living Project - Salas & Reyes Chair Lewis said he felt this was a great step in the right direction. It will show the CVRC leadership and ability to streamline things and be more efficient. Page 7 of 9 CVRC -Minutes -October 8, 2009 The initial meeting with the Sweetwater District people was very positive and we're looking for some great things to come out of this. To be fair to Director Paul, he has not been assigned to asub-committee because, as Vice Chair, he would be helping oversea all of the projects and fill in when Chair Lewis is not available. Congratulations to everyone for stepping up to the plate and getting involved. 8. DIRECTORS' COMMENTS Director Paul: Would like the Board to reconsider the convening hour due to the reestablishment of his engineering consulting business. He also has a conflicting meeting on Thursdays which does not finish until approximately 4:30 p.m. He requested the consideration of a 5:00 p.m. start time. Director Desrochers: Thinks the 5:00 time might work, but would like to know if there are any added costs to the city and if it would be cost effective. In regards to Item 5, the Scripps Amendment, he remembers working with Scripps in the mid-80's and does not think that in 25 years Scripps is giving Chula Vista the attention that it deserves. Thinks is important that something occurs on the Bay General site. Director Salas: Would like to reiterate the expansion of redevelopment in the residential areas. We need to develop the west side and can't do piece-meal. Would like to see whatever it takes to get the ball rolling on that. Also mentioned the piece of property at 3`d and E Street which he would like to see made into a passive zeroscape park. There will be recyclables and plant material from an upcoming project at 3`d & H Streets and he would like to take advantage of them. Manager Crockett: Advised the Board that the ball was rolling on the project area expansion. The working group for the 5-year Implementation Plan has had discussions about that and will be bringing something forward at the CC Workshop on November 19'h. In regards to the 3`d & E Street space, he has been working with the Cultural Arts Commission to make an Interim Sculpture Garden. They are talking with the arts community trying to find pieces and will, hopefully, make and maintain the garden. There is definitely movement to enhance the appeal of that site in the interim. Page 8 of 9 CVRC -Minutes -October 8, 2009 Director Reyes: Announced to the Board that he had met twice with the ULI -San Diego/Tijuana chapter and got some good ideas for the property on F Street (the old Public Works Yard). We have also gotten good response from MTS, local developers and city staff and he is excited to see the recommendations. He should be able to present a draft within six (6) weeks and share it with the CVRC Board for their final input. Director Flores: Has been involved in the Southwest Chula Vista Association meeting regarding the park and the fire station. There is a need to secure a State grant for the fire station. We'd like to see SDG&E help out with some permanent shade structures. Director Halbert: We have been working with SDG&E and are moving forward. SDG&E has had some concerns regarding permanent shade structures so we are looking into other options (canvas, movable items, etc.) Regarding the fire station funds, we were not included in the first round. They are in high demand and terribly hard to obtain. Director Flores: Attended a meeting regarding San Ysidro imminent domain issues. San Ysidro's project areas ability to use imminent domain expired after 12 years. They would like to have it extended for an additional 12 years, but the vote was 3 to 3. The staff of the Agency has been pushing hard to get this done quickly and it has seemed to cause a bit of fear. Director Flores is going to see if he can be of some assistance to explain the community benefits and keep the conversation on the table a little longer to bring down some of the fears and explain that it can be a good tool for everyone. ADJOURNMENT At 5:29 p.m., Chair Lewis adjourned the meeting to the Regular Meeting of October 22, 2009 at 4:00 p.m. GNP ~~'is j / l °o ~.9 Eric Crockett, Secretary m CVRC ° >• 06/1g~2005 OZ O °a°°o°u°p°°P ~~FNT CORQO~ Page 9 of 9 CVRC -Minutes -October 8, 2009