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HomeMy WebLinkAboutCVRC Min 2010/01/14MINUTES OF THE SPECIAL MEETING OF THE CHULA VISTA REDEVELOPMENT CORPORATION (CVRC) Date: January 14, 2010 4:00 P.M. The Special Meeting of the Chula Vista Redevelopment Corporation was called to order at 4:02 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 Shirey, Redevelopment Manager Crockett, Senior Administrative Secretary Laughlin. PLEDGE OF ALLEGIANCE, MOMENT OF SILENCE DISCUSSION: There was discussion among Board members, staff and the community regarding the future start time of the CVRC Thursday meetings. The meetings have been held at 4:00 p.m. for some time now. Director Paul indicated that he had raised the question some time ago due to other personal obligations. Since that time, his standing meeting with the South Economic Development Council has been changed, so the time is not as imperative to him. Southbound traffic still enters into the equation but it would not be any better if the meeting was moved to 5:00 p.m. Meeting time stands at 4:00 and was referred back to staff for by-law changes at the next meeting or as soon as feasibly possible. PUBLIC COMMENTS There were none. Page 1 of 4 CVRC -Minutes -January 14, 2010 ACTION ITEMS 1. LOAN REPAYMENT TO THE GENERAL FUND The Chula Vista Redevelopment Agency currently owes the City of Chula Vista approximately $26 million from loans made to the Agency for Redevelopment Project Area start up costs and payments made on behalf of the Agency towards Certificates of Participation (COP) issued to build the parking facility at the Chula Vista Center in 1987. Over the past two years, the Agency has made significant efforts to reduce the debt owed to the City, anticipating that by the end of fiscal year 2009/10 the Redevelopment Agency will have repaid, over the last two years, approximately $9.3 million, reducing the remaining debt to the City to approximately $21.7 million. To continue to reduce the debt obligations of the Agency, staff recommends that the Chula Vista Redevelopment Corporation (CVRC) recommend to the Agency that A) it sell an Agency-owned 14.41 acre site located in the lower Sweetwater Valley to the City and B) that the Agency be credited for an outstanding loan owed to the Agency that was forgiven by the City in 2002. Manager Crockett showed a slide to familiarize the Board with the location of the park land. There was then a request to speak from Attorney Doug Moser, who represented Earl Jentz. He distributed a letter dated January 14'h which was directed to the Board and cc'd to the City Council. He objected to both resolutions and stated that neither were justified transactions because they appeared to be gifts of public funds. Mr. Moser stated that, regarding the park land sale as described by staff, the valuation of the property being sold to the City is not based on fair market value. Property surrounding the area is being pretty intensely developed and the value cannot be known without some sort of appraisal. He stated that, while the City may feel some moral obligation towards the forgiveness of the Nature Center debt, it is some years after the fact and again looks like a gift of public funds. He then urged the Board not to proceed until more background information, property valuation and a justification for the transactions is obtained. To the drafters and supporters of Proposition C, it appears that the purpose of this sale and forgiveness of the debt is to get out of the restrictions of Prop C. Director Halbert advised that the amount was derived in relation to PAD fees and the assessment of land and how much it costs to buy park land. He also provided the Pros and Cons of the sale transaction. Page 2 of 4 CVRC -Minutes -January 14, 2010 Deputy City Attorney Shirey was asked for his comment. Although he had not had sufficient time to review the letter, he stated that Prop C doesn't just address participation, but that it has to be involved in eminent domain. There was further discussion by the Board and staff regarding: appraisals, evaluation, credits and their obligations, lack of parks on the west side, and the ability of the CVRC to assist in development if the land was sold to the City. Director Paul asked if there was a determination of the amount of time it would take to put a fair market appraisal on the property. Manager Crockett indicated his best guess would be 60 days. Director Paul felt that, while staff may be comfortable with the information it has, the public and Agency is entitled to understanding the process and how the value is determined and the credits connected with it. Discussion continued until a motion was made to: ACTION: Director Lewis made the motion to take Resolution 1 a back to staff for further consideration; a fair market evaluation and to allow the City Attorney time to review and research the letter received from Mr. Moser. Director Salas seconded the motion and it carried with a 6-0-0-0 vote. Resolution 1 b, the matter of forgiving the Nature Center debt was discussed with Manager Crockett explaining that when the Nature Center was built, part of it was developed with Redevelopment Funds. He further explained the background of the debt and that the Nature Center is returning to a full 501(c) 3. This is actually a reconsideration of an action that the City Council took in 2002. Chair Lewis then recused himself from the discussion as he had just been elected to/placed in the position of Vice-Chair of the new Nature Center Foundation. Director Paul assumed the Chair position. Discussion proceeded in regards to the Nature Center forgiveness of debt and the options of how that could be done. Director Salas asked for a definition of "gifting of public funds" so the Board understands the phrase. A simplified explanation was given by the Deputy City Attorney as giving something of value and getting nothing in return. But, he stated that he would like more time to research the matter as there could be some exemptions to that definition. ACTION: Motion made by Director Salas to send Resolution 1 b back to staff in order for them to respond to some of the concerns and questions regarding the validity of the transactions and further clarification. Seconded by Director Flores. Motion carried with a vote of 6-0-1-0. Page 3 of 4 CVRC -Minutes -October 8, 2009 2. CHIEF EXECUTIVE OFFICER'S REPORTS There was no report 3. CHAIRMAN'S REPORTS There was no report 4. DIRECTORS' COMMENTS No Director comments ADJOURNMENT At 4:53 p.m., Chair Lewis adjourned the meeting to the Regular Meeting of January 28, 2010 at 4:00 p.m. .~. 3' CVRC $ qtr 06/15J2005 ~~l'bpM~~~o~QO~Q. T / ~~~~? Eric Crockett, Secretary Page 4 of 4 CVRC -Minutes -January 14, 2010