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HomeMy WebLinkAboutR02-Redevelopment Agency . c c o - <:)EDEVELOPMENT COMMITTEE <:> M I NUT E S REGULAR MEETING July 20, 1989 4:10 p.m. The meeting of the Redevelopment Committee was calleo to order by Chairman Esther Estrada at 4:10 p.m., in the Redevelopment Agency Conference Room, Fourth Floor, City Hall, 3UO North "0" Street, San Bernaroino. ROLL CALL: Roll call was taken with the following being present: Committee Member Esther Estrada; Committee Member Jess Flores. Absent: Committee Member Michael Mauds1ey. STAFF PRESENT: Steven H. Dukett, Executive Director, Redevelopment Agency; Arlene S. Berman, Deputy Director, Redevelopment Agency; John Hoeger, Development Manager, Redevelopment Agency; John Wood, Project Manager, Redevelopment Agency; Gary Wagoner, Project Manager; Nancy Davison, Project Manager; John Wilson, Senior Deputy City Attorney; Phil Arvizo, Executive Assistant to the Council; Craig Graves, City Treasurer; Andy Green, Finance Department; James Robbins, Deputy City Administrator; J. Lorraine Velaroe, Chief Executive Assistant to the Mayor; Mayor W. R. "Bob" Holcomb; Ed Flores, Community Development; Ken Henderson, Community Development; Margie Vance, Recording Secretary. IN ATTENDANCE: Mr. Marshall Linn, Urban Future, Inc. and Noel Weiss, representin9 Mr. Teong Kay. A discussion ensueO. Chairman Estrada stated that there were several items that neeo~d to be addressed in closed session and that in view of Mayor Holcomb's other scheduled meeting, she moved to recess the meeting to c1oseo session. Closed Session Pursuant to Government Code Section 54956.8 the Redevelopment Committee of the Community Development Commission/Redevelopment Agency of the City of San Bernardino will convene in closed session with its negotiator to discuss the purchase, sale, exchange or lease of real property, and give instructions to its ne9otiator concernin9 the price ana terms of payment for the purchase, sale, exchange or lease of real property at 4:13 p.m. The Committee reconvened from closed session at 5:25 p.m. RECOMMENDATION: The Committee recommended this item be forwarded to the Commission at its meeting of AU9ust 7, 1989 to be heard in Closea Session. 1 July 20, 1989 l803R -it () c o o o A discussion ensued. Chairman Estrada asked for a vote to hear an item regarding "Refinancing of City Bonds" that arose since the Agenda was posted. The vote carried unanimously, with Committee Member Maudsley absent. A. Refinancing of City Bonds Craig Graves, City Treasurer addressed the Committee and stated that on June 10, 1989, Mr. James Iverson of Miller and Schroeder Municipals presented to the Mayor and Common Council a financing plan that concerned collateral mortgage obligation residuals; refinancing several lease revenue bonds; refunding and increase of tax allocation bonds. He said that upon his final review of the initial proposal, he would request that additional debt service schedules be developed with longer maturity dates to see if a greater reduction in annual debt service could be achieved, thus lessening the annual impact on the General Fund. He stated that this reduction would allow these dollars to be spent in other areas. He said that the debt service schedules were presented to Mayor Holcomb and Committee Member Estrada on July 12, 1989. He said that it was requested that the schedules be reviewed by staff and a recommendation be made to the Redevelopment Committee at today's meeting. He stated that after he, together with Mr. Marshall Julian, City Administrator and Andrew Green, Finance Director reviewed the three major issues 1) the initial savings for this fiscal year; 2) subsequent annual debt service reduction; and 3) impact of length of extended debt services, that they have asked for additional information relative to extending the debt service 10 and 15 years beyond what the present maturities are. Also, to give the City the debt service schedule, an extention of five years to see what debt savings would bring. He stated it was his recommendation that the Central Fire Station Issue of 1982 and the Central Library Issue of 1983 both be refunded with a maturity date of around 2013. The refunding would give an additional savings in this fiscal year of $552,000. He said that in subsequent years, the annual cost would be lowered by an average of $78,000 based on present market conditions. He stated that after looking at all of the scenarios he felt that this would work out to the best benefit of the City and provide the most significant savings factor without a long term extending of debt. He also stated that if this was agreeable with the Committee, he would like to place this item on the August 21, 1989 Council Agenda for adoption. Chairman Estrada expressed concerns that different entities were working on the same issue and suggested that all parties involved meet and give a report to the Mayor and Common Council regarding the bond issue. RECOMMENDATION: The Committee recommended that a Workshop be scheduled for August 7, 1989 in the Redevelopment Agency Board Room at 12:00 p.m. and requested that Mr. Jim Iverson, from Miller and Schroeder and Tim Sabo, Bond Counsel and staff give a presentation regarding bond issues. c::> Chairman Estrada asked that item seven be taken out of order. 2 July 20, 1989 1803R o c c o o 7. Request to initiate Redevelopment Planning for the Mt. Vernon business corridor and adjacent areas. Mr. Dukett addressed the Committee and stated Mr. Marshall Linn, President of Urban Futures was representing his firm which is being recommended to receive the contract to carry out the work recommended in the staff report. He said that staff is asking for three things to be done. First, that a loan of money be made from the Agency to the City, and then from the City to the Agency to the benefit of Mt. Vernon Business Corridor Project. He stated that the reason for doing that is to assure that the loan arrangement is sufficient to satisfy the County in terms of placing the loan on the Agency's Statement of Indebtedness. Second, hire a consultant to carry out the work program described in the contract that is necessary to initiate the redevelopment planning. Third, form a Citizen Advisory Committee along the lines of what a PAC would be in the event that a PAC is necessary. He said that in addition to the community based organizations that Committee Member Flores, Committee Member Estrada and Mayor Holcomb, should each appoint a member representing the four categories that are reflected in the staff report. Chairman Estrada asked if the $250,000 was a normal amount to invest in the formation of a new project. She further asked how a new project gets started and wanted to know if the procedure has changed or has it always been the same. Mr. Dukett explained that the present redevelopment law has changed and has become a more detailed process. He said that the recommended approach is different because it focuses upfront on Citizen Participation. He suggested that before a recommendation for a survey area is made to the Mayor and Common Council, preliminary work in the community should be done wherein the citizens advisory committee come to a consensus on the survey area which might later become the project area. Chairman Estrada stated that her understanding was that a survey area and the project area could be as different as night and day. She said that she was under the impression that the procedure was going to be some consensus between the Council Members from those districts relative to what the survey area ought to be so that they could get the general perimeters of where the project area might be located. She said that once the survey area has been declared, then from that area one can select the respective individuals to participate in the formation of the citizens advisory committee, and that they would be instrumental in the formation of the project area. She asked what were the qualifications for the creation of a Project Area Committee (PAC), Mr. Dukett, said that the Redevelopment Law does not require a specific number of people to create a PAC. He said that he has asked several attorneys and their answers have not been specific. In the attorney's opinion the number of people forming a PAC should be 20 or more low{moderate income people residing within that area and that anything less, does not provide good grounds to form one. He said that another aspect of the Redevelopment Law is that the PAC is only required to be in existence once they are formed, for a period through the adoption of the plan and 36 months thereafter. He said that the PAC is a process designed primarily to assure that low/moderate income people can have some voice as relative to the adoption of the plan. He 3 July 20, 1989 1803R c o o o o said that after consulting with Mr. Marshall Linn, this process could take 12 months and that the 18 months mentioned in the contract is in case that something comes up that was not foreseen. He said that it would be best to work the process out in the community first before bringing 200 people into the auditorium and have them complain because they think that something is going to happen even though it may not. Chairman Estrada stated that the selection of people to create the PAC does take time. and that once people find out that a Committee is being formed, it is politically difficult to deal with the constituents. She said that in terms of expeditiously moving the item, it was her feeling that it would be faster if the survey area was defined first and then staff can go out and do what ever needs to be done in preparation for the adoption. She said that once the survey area has been identified that from that area a committee would be selected. Mr. Dukett asked how long it would take to sit down with the three affected Council Members and suggest a survey area so that staff can be9in the adoption of the project. Chairman Estrada said that information already exists and that it would only take one afternoon to outline the survey area. She said that in terms of discussion for funding expenses to be incurred, that staff needed to assure the Commission that the recommended motion is the normal procedure that has been used before during the adoption of a project area. Mr. Dukett stated that this particular procedure to his knowledge is the first time that this has been done. He said it seemed that in the past there was a procedure of lending funds between projects administratively. He said that according to Special Counsel, Mark Huebsch, this procedure is not sufficient. He said that the Agency must exchange checks with the City and that agreements must be signed, thus, giving the Agency a legal instrument for the SOl and this would also enable the Agency to get the tax increment money faster. Chairman Estrada stated that this is a much cleaner way to do it and in essence would not deviate from previous practices. RECOMMENDATION: The Committee recommended that a meeting be set wherein Committee Member Estrada, Committee Member Flores and Mayor Holcomb will meet to outline the potential survey area in preparation for the adoption of the proposed project area. Also. that staff return with a modified staff report as a result of the above mentioned meeting. 4 July 20. 1989 1803R o o C 1. Teong Kay Owner Participation Agreement Mr. Dukett stated that Mr. Weiss was present at today's meeting and that he was the attorney for Mr. Teong Kay. He said that the recommendation is for an Owner Participation Agreement between the Redevelopment Agency, Teong Kay and Joyce Kay, owners of property located in the Southeast Industrial Park Project Area. He stated that this property is currently encumbered with a DDA that was entered into November, 1978, with T.J. Burris Corporation. Mr. Dukett indicated that Mr. Kay has expressed a desire to develop the property and has negotiated an agreement to that effect. RECOMMENDATION: The Committee recommended that the item be forwarded to the Commission at its meeting of August 7, 1989 to approve the execution of an Owner Participation Agreement between the Redevelopment Agency, Teong Kay and Joyce Kay. 2. Uptown Citizens Advisory Committee (CAC) appointment Mr. Dukett stated that on March 16, 1989, Carl Oldenkamp, Sr. submitted his resignation to the Uptown CAC. He represented the Sub Area "B" on the Committee. He said that pursuant to the Uptown CAC by-laws, if a vacancy occurs during an existing term, an alternate may fill the vacancy for the unexpired portion of the term. o RECOMMENDATION: The Committee recommended that this item be forwarded to the Commission at its meeting of August 7, 1989 to approve the appointment of Mr. James Roger Russell to serve on the Uptown Citizens Advisory Committee to represent Sub Area "B". 3. Compensation for Commissioners Mr. Dukett stated that Agency Counsel Dennis Barlow had determined that a resolution was needed to clarify the amount of compensation Commissioners receive. He said that the Commission approved the Agency Budget which includes the Commissioners compensation, but that the Resolution would clarify any future questions. RECOMMENDATION: The Committee recommended that this item be forwarded to the Commission at its meeting of August 7, 1989 to adopt a formal resolution establishing compensation for members of the Community Development Commission. c 5 July 20, 1989 l803R c o o o o 4. Miles House Restoration Mr. Gary Wagoner addressed the Committee and stated that while Mr. Jim Rock was applying for a Conditional Use Permit to move the house, he was informed by the Planning Department that Municipal Code Section 19.68.100 requires that financial guarantees be provided to secure performance and that the work be completed within 120 days of issuance of the building permits. He said that the 120 days is not in conformance with the current DDA, which specifies that he has until July 1, 1990. Chairman Estrada asked how much of the required $216,00 financial guarantee will the Agency actually put out. Mr. Wagoner responded that the Agency will not put any cash out. Mr. Dukett stated that instead of Mr. Rock buying a letter of credit or a bond, the Agency will issue a Irrevocable Letter of Credit (ILC) to the City in-lieu of a private ILC fully protecting the value of the project. He further stated that this particular guarantee is not to the lender or to Mr. Rock but to the City of San Bernardino. RECOMMENDATION: The Committee recommended that the item be forwarded to the Commission at its meeting of August 7, 1989 to authorize the Executive Director to pledge Agency assets in a form acceptable to the Planning Director guaranteeing the performance of Jim Rock, in connection with moving the Miles House pursuant to Me Sec. 19.68.100. 5. Expenditure of funds for improvements to Seccombe Lake Park -- Enhancement of Environment -- Central City East. Mr. Dukett said that this item had been referred by the Commission to the Redevelopment Committee for consideration due to the lack of money in the General Fund. He stated that a contract in the amount of $27,058 was recommended for the purpose of improving Seccombe Lake Park. He said that staff had been informed prior to the meeting that $100,000 has been placed back into the General Fund and that funds are now available to fund this project. Chairman Estrada asked if the Agency had funds available for this purpose, Mr. Dukett responded that the Accounting Department had confirmed that there are funds available for this project. He said that if it was the desire of the Committee to move ahead with the recommendation for Agency funds, the appropriate benefit resolutions would be prepared for the Commission meeting of August 7, 1989. RECOMMENDATION: The Committee recommended that both the City option and the Agency option be placed in the Agenda for the Commission to make a determination as to who will fund the project at its meeting of August 7, 1989. 6 July 20, 1989 1803R . o o o o o 6. National Development Council -- Consultant Agreement Renewal Mr. John Hoeger addressed the Committee and stated that on August 1988, Mr. Scott Rodde from the National Development Council (NDC) had been before the Committee to talk about his services. He stated that Mr. Rodde has helped the Agency primarily with the preparation of UDAG and EDA grants. He said that as HUD's UDAG program is phased out, it is anticipated that the need for NDC's specialized services as "mortgage bankers" for public agencies will become even more important over the next year. He stated that Mr. Rodde assisted in the preparation of the UDAG application for the Court & "E" Street and Sunset Project. He said that staff has not been able to find anyone else that can compete with his type of services. Chairman Fstrada expressed her concern as to the lack of information staff has provided the Committee relative to what NDC actually does or what it has done or what it will do in the future to justify the $50,000 contract. RECOMMENDATION: The Committee recommended that this item be forwarded to the Commission at its meeting of August 7, 1989 and to invite Mr. Scott Rodde to the meetin9 in order that he might give a brief overview of what he accomplished last year and what he foresees the next year will brin9. 8. Sunwest ProfessiDna1 Park Court & "E" Street -- (UDAG applications) Mr. Dukett stated that this item was an overview of the UDAG application that will be discussed at the Public Hearing on July 24, 1989. RECOMMENDATION: The Committee recommended that this item be forwarded to the Commission meeting of July 24, 1989 in order to hold a Public Hearing. 9. CATV Lease Mr. Dukett stated the Cable Access Television (CATV) has approached staff to request that they be allowed to increase their space from 1383 to 4006 square feet at their facility in the Public Enterprise Center (PEC). He said that the terms of the lease agreement will remain the same as in the ori9inal lease except for the expansion of space and for a clause that provides for a rent increase to $1.10 per square foot during next budget cycle (1990-1991). He said that this item has been discussed with the Task Force and that they do not view this expansion as any problem. He said, the expansion of the CATV function will be a furtherance of an asset to the building relative to business activity. RECOMMENDATION: The Committee recommended that this item be forwarded to the Commission at its meeting of August 7. 1989 to approve the first amendment to the lease by and between the Redevelopment Agency of the City of San Bernardino and the City of San Bernardino. 7 July 20, 1989 1803R . . o o . <::) Adjournment There being no further business, the meeting of July 20, 1989 was adjourned at 6:50 p.m. APPROV ED BY: o o 8 July 20, 1989 1803R