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86-0805_CRA_Minutes_Regular MeetingRwu AUGUST 5, 1986 REGULAR MEETING OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY BOARD OF DIRECTORS The Regular Meeting of the Board of Directors of the San Juan Capistrano Community Redevelopment Agency was called to order by Chairman Hausdorfer at 8:55 p.m., in the City Council Chamber. ROLL CALL PRESENT: Gary L. Hausdorfer, Chairman Lawrence F. Buchheim, Vice Chairman Anthony L. Bland, Director Phillip R. Schwartze, Director ABSENT: Kenneth E. Friess, Director STAFF PRESENT: Stephen B. Julian, Executive Director; Thomas G. Merrell, Deputy Director; Mary Ann Hanover, Agency Secretary; Robert G. Boone, Finance Officer; William D. Murphy, Director of Public Works; Thomas L. Baker, Director of Community Services; John R. Shaw, City Attorney; Glenn Southard, Assistant City Manager; Cheryl Johnson, Recording Secretary. The Joint Public Hearing of the City Council and the Community Redevelopment Agency was conducted by Mr. Hausdorfer acting as Mayor pro tem of the City. JOINT PUBLIC HEARING OF THE CITY COUNCIL AND THE COMMUNITY REDEVELOPMENT AGENCY ON PROPOSED REDEVELOPMENT PLAN AMENDMENT 86-1 (307.23) This item was taken out of order on the Agenda. Director Buchheim advised he would abstain from action on the item due to a conflict of interest. Proposal: Consideration of an amendment to the Redevelopment Plan, which was initiated on May 6, 1986, to expand the project area to include additional public improvements and three parcels containing approximately 23 acres of land at the junction of Doheny Park Road and Camino Capistrano. Applicant: City of San Juan Capistrano/San Juan Capistrano Community Redevelopment Agency. Written Communications: (I) Report dated August 5, 1986, from the Deputy Director, forwarding the Planning Commission's recommendation to approve the Environmental Impact Report and finding that the Amendment was in conformance with the City's General Plan. -1- 8/5/86 370 (2) Notebook identified as "Exhibit 1," containing: (a) Amendment to the Central Redevelopment Project per Plan Amendment 86-1 (Added Area); (b) Plan Amendment 86-1 Preliminary Plan and Blight Report; (c) The Agency Report to the City Council, including the Planning Commission Report and the Draft Focus Environmental Impact Report for the Price Club Development; (d) Agency and Council Resolutions and Ordinances; and, (e) Redevelopment Law Excerpts, Affidavits of Mailing and Written Comments. Introductor Comments: The Deputy Director advised that the Central Redevelopment Plan was originally adopted on duly 12, 1983, and subsequently amended forming the Central Redevelopment Project Area. During early 1986, staff and the Redevelopment Agency began processing an amendment which proposed the addition of approximately 23, acres to the existing Project Area and the inclusion of various additional public improvements. Tom Clark, Legal Counsel, Stradling, Carlson, Yocca, and Rauth, 660 Newport Center Drive, Newport Beach, noted that evidence would be introduced for consideration which supported certain findings and determinations to be made with regard to the ordinance adopting the Amended Redevelopment Plan, as contained in Section 33367 of the Health and Safety Code. The findings included: (1) The area proposed to be added to the Project Area meets the legal qualifications set forth by the legislature for a blighted urban area; (2) The Redevelopment Plan as amended would redevelop the amended Project Area in conformity with the law; (3) The adoption and carrying out of the Redevelopment Plan as amended is economically sound and feasible; (4) The Redevelopment Plan as amended conforms to the General Plan of the community; (5) The condemnation of real property, as provided for in the Redevelopment Plan as amended, is necessary to the execution of the Redevelopment Plan as amended, and -2- 8/5/86 371 adequate provisions have been made for payment for properties to be acquired as provided by law; (6) The elimination of blight and the redevelopment of the Project Area as amended could not reasonably be expected to be accomplished by private enterprise acting alone without the aid and assistance of the Agency. Presentation Relating to Ba roiect: round and Rationale of The Deputy Director referred to and briefly summarized pertinent parts of the Report of the Agency to the City Council, which is the basic supporting documentation for the Amendment 86-1, and the ordinance adopting Amendment 86-1. The Deputy Director advised that the Notice of tonight's public hearing was published as required by law. The Agency Secretary advised that the affidavit of publication in the Capistrano Valley News was on file. Contents_of Report and Summary of Blighting Influences: The Community Development Administrator stated that the area proposed to be added is urban and an integral part of urban area; that the property adds to the burdens of the area traffic system and traffic problems of property in and outside the Added Area; and, that these problems are interrelated and are a part of a common urban setting. Mrs. Erickson noted a correction necessary in the Environmental Impact Report to reference the inadequate sewer capacity of Capistrano Beach Sanitary District, rather than the South East Regional Reclamation Authority. The Amendment was to incorporate land anticipated for a Price Club project; however, there was currently no agreement for that project. Written Comments: The Agency Secretary advised that no written comments or other objections had been received. Public Hearing: Notice having been given as required by law, Mayor pro tem Hausdorfer opened the Public Hearing, asking for statements from persons in opposition to Redevelopment Plan Amendment 86--1. The following person responded: (1) Jim Fulmer, 26981 Calle Don Carlo, cited concerns regarding the execution of redevelopment projects; the description of blight; redevelopment of an area which has yet to be developed; potential problems with bonding; condemnation activities; and, impact of tax increment on schools and other parts of the General Fund. -3- 8/5/86 372 Mayor pro tem Hausdorfer advised that the definition of blight has been determined by the State Legislature, that debt would be repaid through tax increment, and that the schools had worked with the City and were aware of the proposed Amendment. Response to Oral Testimony: The Executive Director responded to Mr. Fulmer's concerns, noting that there is not yet a specific development plan for the property; the Plan is only a document. He noted that urban blight was defined in State Codes and included the inability to provide the appropriate infrastructure or the inability of a project to maintain itself economically. He advised that agreements had been entered into with the various taxing agencies affected by the proposed Amendment; that any loss of income to the schools due to the project would be returned by the State. In response to Mr. Fulmer, the Executive Director advised that bidding for construction of improvements would depend on the property owner/developer; that the Agency would subsidize certain improvements. Mr. Fulmer advised that to the extent the project was bid out, he would withdraw his objections. It was moved by Director Schwartze, seconded by Director Bland and unanimously carried with Director Buchheim abstaining, to close the Public Hearing. Completion of Environmental Review: It was moved by Director Bland, seconded by Director Schwartze that the following Resolution be adopted: RESOLUTION NO. CRA 86--8-5-1 REDEVELOPMENT PLAN AMENDMENT 86-1, CERTIFYING FINAL EIR - A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, CERTIFYING FINAL ENVIRONMENTAL IMPACT REPORT (EIR) 86--050704, AS REQUIRED BY THE CALIFORNIA ENVIRONMENTAL QUALITY ACT The motion carried by the following vote: AYES: Directors Schwartze, Bland, and Chairman Hausdorfer NOES: None ABSTAIN: Director Buchheim ABSENT: Director Friess Use of Taxes for Housing Outside Project Area: it was moved by Director Schwartze, seconded by Director Bland that the following Resolution be adopted: QC 8/5/86 373 RESOLUTION NO. CRA 86-8-5-2, USE OF TAXES FOR PURPOSE OF HOUSING OUTSIDE PROJECT AREA (REDEVELOPMENT PLAN AMENDMENT 86-1) - A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, FINDING THAT THE USE OF TAXES ALLOCATED FROM THE CENTRAL REDEVELOPMENT PROJECT FOR THE PURPOSE OF HOUSING OUTSIDE THE PROJECT AREA WILL BE OF BENEFIT TO THE PROJECT - REDEVELOPMENT PLAN AMENDMENT 86-1 The motion carried by the following vote: AYES: Directors Schwartze, Bland, and Chairman Hausdorfer NOES: None ABSTAIN: Director Buchheim ABSENT: Director Friess. RECESS AND RECONVENE The meeting was recessed at 9:19 p.m., to reconvene the City Council meeting. The meeting was reconvened at 9:20 p.m., with all Members preset with the exception of Director Friess. MINUTES Regular Meeting of July 1, 1986: It was moved by Director Schwartze, seconded by Director Buchheim, that the Minutes of the Regular Meeting of July 1, 1986, be approved as submitted. The motion carried by the following vote: AYES: Directors Schwartze, Bland, Buchheim, and Chairman Hausdorfer NOES: None ABSENT: Director Friess Regular Meeting of July 15, 1986: It was moved by Director Schwartze, seconded by Director Bland, that the Minutes of the Regular Meeting of July 15, 1986, be approved as submitted. The motion carried by the following vote: AYES: Directors Schwartze, Bland, Buchheim, and Chairman Hausdorfer NOES: None ABSENT: Director Friess -5- 8/5/86 374 BOARD ACTIONS 1. APPROVAL OF WARRANTS (202.2) It was moved by Director Schwartze, seconded by Director Buchheim, and unanimously carried to approve the List of Demands dated July 16, 1986, Warrant Nos. 1 - 22, in the total amount of $1,876.33. 2. TAX ALLOCATION NOTE - NOTICE OF INTENT TO SELL SECURITIES {214.3) written Communications: Report dated August 5, 1986, from the Deputy Director, recommending approval of the necessary steps for the sale of tax allocation notes in an amount not to exceed $7,500,000. It was anticipated that $6,250,000 in revenue would be raised. Staff was directed to begin the process at the meeting of June 3, 1986. Sale of Tax Allocation Notes/Publication, of Notice: It was moved by Director Schwartze, seconded by Director Buchheim that the following Resolution be adopted: RESOLUTION NO. CRA 86-8-5-3, SALE OF TAX ALLOCATION NOTES, APPROVING NOTICE OF INTENT TO SELL NOTES AND DIRECTING PUBLICATION - A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY PROVIDING FOR THE SALE OF TAX ALLOCATION NOTES IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS ($7,500,000) FOR THE SAN JUAN CAPISTRANO CENTRAL REDEVELOPMENT PROJECT, APPROVING THE FORM OF NOTICE OF INTENTION TO SELL SAID NOTES AND DIRECTING THE PUBLICATION THEREOF The motion carried by the following vote: AYES: -Directors Schwartze, Bland, Buchheim, and Chairman Hausdorfer NOES: None ABSENT: Director Friess The Agency Secretary was directed to cause the Notice of Intention to Sell Securities to be published in a newspaper published and of general circulation in the City and in a financial publication generally circulated throughout the State, namely the Bond Buyer. The Agency meeting will be adjourned to August 12, to approve the best bid and award notes. -6- 8/5/86 3. 4. 5. 375 FIRST AMENDMENT TO PARTICIPATION AGREEMENT - WLBD (SAN JUAN CAPISTRANO) ASSOCIATES (600.40) Written Communications: Report dated August 5, 1986, from the Deputy Director, forwarding an amendment to the, Participation Agreement March 5, 1986, to clarify that the sum of $966,800 was loan to the Agency by WLBD and to define the terms of repayment. The developer was required to construct a minimum of 270 apartment units of which 40 units were set aside for low and moderate income households. The Agency agreed to repay the loan at 11 percent interest dated a to be f rom the tax increment generated on the project for the amount certain development fees on the project. The Agreement changes the interest rate from 11 percent to 10 percent simple interest per annum. of Approval of Agreement: It was moved by Director Schwartze, seconded by Director Buchheim and unanimously carried to approve the First Amended Participation Agreement and to authorize the Chairman and Secretary to execute the Agreement on behalf of the Agency. SECOND AMENDMENT TO PARTICIPATION AGREEMENT - WLBD (SAN JUAN CAPISTRANO) ASSOCIATES (600.40) Written Communications: Report dated August. 5, 1986, from the Deputy Director, advising that the Agency currently has a $966,800 debt to WLBD (San Juan Capistrano) Associates, pursuant to an existing Participation Agreement, and advising that the developer agreed to accept $850,000 as full repayment by September 1, 1986. Approval of Agreement: It was moved by Director Schwartze, seconded by Director Buchheim and unanimously carried to approve the Second Amended Participation Agreement and to authorize the Chairman and Secretary to execute the Agreement on behalf of the Agency. AGREEMENT TO PARTICIPATE IN STONEHILL DRIVE EXTENSION (COUNTY OF ORANGE) (600.50) Written Communications: Report dated August 5, 1986, from the Director of Public Works, forwarding an agreement with the County of Orange to implement the Stonehili Drive Extension project. The agreement provides that the City participate financially in right--of-way acquisition, preliminary and final engineering, and construction, at a total estimated cost of $355,000. The Agency's Capital Projects budget for the project -7-- 8/5/86 376 includes $196,000 for Fiscal Year 1986-87 for right-of-way acquisition and engineering, and $119,000 for Fiscal Year 1987-88. Recommendation to Approve Agreement: It was moved by Director Schwartze, seconded by Director Buchheim and unanimously carried to recommend that the City Council approve Agreement No. D85-006 with the County of Orange for the Stonehill Drive Extension. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 9:30 p.m., to the next meeting date of Tuesday, August 12, 1986, at 7:00 p.m., in the City Council Chamber. Respectfully submitted, MARY XNNOVER, AG NCY SECRETARY ATTEST: -8- 8/5/86 3 7)6 'zA N 0 T I C E AN ADJOURNED REGULAR MEETING OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY WILL BE HELD ON TUESDAY, AUGUST 12, 1986, AT 7:00 P.M. IN THE COUNCIL CHAMBER OF CITY HALL, 32400 PASEO ADELANTO, SAN JUAN CAPISTRANO, CALIFORNIA. RY NN VER, SECRETARY, SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY POSTED: August 6, 1986