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.
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(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
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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.
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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:
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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
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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.
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4.
5.
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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
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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:
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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