87-1103_CRA_Minutes_Regular Meeting47
NOVEMBER 3, 1987
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 7:27 p.m., in the
City Council Chamber.
ROLL CALL PRESENT: Gary L. Hausdorfer, Chairman
Kenneth E. Friess, Vice Chairman
Anthony L. Bland, Director
Lawrence F. Buchheim, Director
Phillip R. Schwartze, Director
ABSENT: None
STAFF PRESENT: Stephen B. Julian, Executive Director; Thomas G. Merrell, Deputy
Director; Mary Ann Hanover, Agency Secretary; Robert G. Boone, Finance Officer;
Glenn Southard, Assistant City Manager; John R. Shaw, City Attorney; William D.
Murphy, Director of Public Works; Thomas L. Baker, Director of Community Services;
Cheryl Johnson, Recording Secretary.
PUBLIC HEARINGS
The Joint Public Hearing of the City Council and the Community Redevelopment Agency
was conducted by Mr. Bland acting as Mayor of the City.
1. JOINT PUBLIC HEARING OF THE CITY OF SAN JUAN CAPISTRANO AND
THE COMMUNITY REDEVELOPMENT AGENCY ON THE PROPOSED DISP(
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ER McM
- HISTORIC TOWN
This Hearing was continued from the meeting of October 20, 1987 and was taken out
of order on the Agenda.
Proposal:
Consideration of a Disposition and Development Agreement with Oliver McMillan
Capistrano 1. Ltd., for development of the Historic Town Center. The project
includes a 125-- to 150 -room hotel, and 75,000 square feet of retail and restaurant
space and related parking located in an area generally bounded by Camino
Capistrano, Del Obispo Street and Ortega Highway. The total area included in the
site is approximately 6.5 acres. Per State law, approval of the sale of the property
by the Redevelopment Agency to the developer with also be considered.
Applicant:
This was a City -initiated Public Hearing.
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Written Communications:
TIT_ Report dated November 3, 1987, from the Executive Director,
forwarding a summary of the Disposition and Development Agreement.
The report advised that the Agency was required to purchase certain
parcels, which will be sold to the Developer; some parcels are under
negotiation or option with acquisition to be finalized by January, 1988.
The Developer will also purchase some of the parcels needed for the
project. The Agency's total cost for property acquisition was
$5,109,115; the Developer will purchase the property from the Agency
for $4,038,000, the re -use value as determined by Keyser Marston
Associates, Inc. The $1,071,115 difference includes approximately
$500,000 in interest. The remaining $671,000 is the difference between
the actual land value and a land cost which will allow the project to be
feasible while providing major public benefits. The report discussed the
required public improvements, noting that the Agency's primary
responsibility was to undertake improvements needed for better
vehicular and pedestrian circulation at an estimated cost of
$3,400,000. The report cited the method for repayment of Agency
assistance and the schedule for performance of the Agency and
Developer responsibilities. Construction of the project must be
completed within 24 months of issuance of permits.
(2) Note Book containing:
(a) Draft Environmental Impact Report for the Historic Town Center,
prepared for the City of San Juan Capistrano by The Planning
Center, October, 1987.
(b) Executive Summary, Disposition and Development Agreement,
Historic Town Center Project.
(c) Re -Use Analysis, Proposed Historic Town Center Project, San
Juan Capistrano, California, prepared for the Community
Redevelopment Agency of the City of San Juan Capistrano,
October, 1987, by Keyser Marston Associates, Inc. The report
estimated the re -use value of the fee simple interest of the site
planned for a hotel, restaurant and related parking at $5,103,500.
(d) Disposition and Development Agreement by and between the San
Juan Capistrano Community Redevelopment Agency and Oliver
McMillan Capistrano I, Ltd.
(e) Agency and Council Resolutions.
Executive Director Report:
The Executive Director of the Agency made an oral report and advised of the recent
decision to replace the Collins firm with another hotel operator. He discussed the
Disposition and Development Agreement, citing the purpose, the scope of
development and use of the site, the methods of financing the project and the
obligations of both the Agency and the developer, and the provision for termination
of the agreement if necessary. He advised that the initial Agency financial outlay
amounted to $10,239,115. Upon purchase of the land by the Developer, the Agency's
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potential net cost would be $5,135,615. If levels of profitability are exceeded, the
the Developer will execute a Promissory note for $5,000,000, bearing a floating
interest rate, to repay the difference between the Agency's acquisition cost and the
re -use value, the cost of the public improvements, and the cost of demolition and
relocation. If the Promissory Note is fully repaid, the Agency's potential cost for
the project would amount to $135,615.
Public Hearing:
Notice having been given as required by law, Mayor Bland opened the Public Hearing
and the following person responded:
(1) James Provost, 26692 Calle La Bomba, a local builder/developer,
inquired whether a major hotel appraisal/feasiblity study had been
completed. He was advised that preliminary studies had been
completed by Laventhol and Horwath for the Developer and the
Agency. Mr. Provost stated that a final study should be prepared.
Approving Sale of Certain Pro erties/Dis osition and
Development Agreement:
It was moved by Director Hausdorfer, seconded by Director Schwartze that
the following Resolution be adopted:
RESOLUTION NO. CRA 87-11-3-1 APPROVING SALE OF
DEVELOPMENT SITE DISPOSITION AND DEVELOPMENT
rV%.I1%J-J-LV11..iAV 1 - 1-1101 WL,.t%. 1 V W 04 1-L:1'1 1 L -v, %%J Lit "IX LV1%-LV11LL1'11`I
CAPISTRANO 1, LTD. - A RESOLUTION OF THE OF SAN JUAN
CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY,
APPROVING THE SALE OF CERTAIN PROPERTIES WITHIN
THE SAN JUAN CAPISTRANO CENTRAL REDEVELOPMENT
PROJECT AREA TO OLIVER McMILLAN CAPISTRANO I, LTD.,
AND APPROVING THE DISPOSITION AND DEVELOPMENT
AGREEMENT PERTAINING THERETO
The motion carried by the following vote:
AYES: Directors Schwartze, Friess, Bland,
Buchheim, and Chairman Hausdorfer
NOES: None
ABSENT: None
Approval of the Disposition and Development Agreement is contingent upon approval
of the final Environmental Impact Report. The Chairman was authorized to execute
the Disposition and Development Agreement; the Executive Director was authorized
to sign all documents necessary and appropriate to carry out and implement the
Agreement.
Determination of Benefit/Financing:
It was moved by Director Hausdorfer, seconded by Director Schwartze that the
following Resolution be adopted:
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RESOLUTION
CENTER) - A RESOLUTION OF THE SAN JUAN CAPISTRANO,
COMMUNITY REDEVELOPMENT AGENCY, DETERMINING
THAT THE CONSTRUCTION OF CERTAIN PUBLIC FACILITIES
IS OF BENEFIT TO THE CENTRAL REDEVELOPMENT
PROJECT AND THE IMMEDIATE NEIGHBORHOOD IN WHICH
THE PROJECT IS LOCATED AND DETERMINING THAT THERE
ARE NO OTHER REASONABLE MEANS OF FINANCING SAID
PUBLIC IMPROVEMENTS
The motion carried by the following vote:
AYES: Directors Schwartze, Friess, Bland,
Buchheim, and Chairman Hausdorfer
NOES: None
ABSENT: None
MINUTES
Regular Meeting of October 20 1987:
It was moved by Director Schwartze, seconded by Director Buchheim, that the Minutes
of the Regular Meeting of October 20, 1987, be approved as submitted. The motion
carried by the following vote:
AYES: Directors Schwartze, Friess, Buchheim,
and Chairman Hausdorfer
NOES: None
ABSTAIN: Director Bland
ABSENT: None
ORAL COMMUNICATIONS
1. HISTORIC TOWN CENTER PROJECT (400.20)
Dene Oliver, project developer, expressed appreciation to Agency staff for the
cooperation received to date in the process and noted their continuing enthusiasm
for the project.
BOARD ACTIONS
1. APPROVAL OF WARRANTS (300.30)
It was moved by Director Schwartze, seconded by Director Buchheim, and
unanimously carried to approve the List of Demands dated October 22, 1987,
Warrant Nos. 682-695, in the total amount of $7,301.10.
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2. PROPERTY AC UISITION - HISTORIC TOWN CENTER
.ter. s ir�t
Written Communications:
Report dated November 3, 1987, from the Deputy Director, advising that the Agency
had purchased much of the land needed for the Historic Town Center project and had
option agreements on all the remaining parcels except seven parcels owned by the
Church. The seven properties owned by the Church are known as Church -Texaco
(AP No. 124-160-31); Church -El Peon (AP No. 124-160-23); and Church -Blas -Aguilar
(AP No. 124-160-08, -09, -10, -11, and -27). The report recommended acquisition of
the parcels at a total cost of $3,870,000. The report advised that if approved,
escrow would close by November 6, 1987.
Approval of Property Acquisition (Church):
It was moved by Director Schwartze, seconded by Director Buchheim and
unanimously carried to approve the acquisition of the seven parcels from the Roman
Catholic Diocese of Orange and to authorize the Executive Director to execute the
appropriate documents.
3. RELOCATION ASSISTANCE - TEXACO SERVICE STATION LOCATED
AT 26874 ORTEGA HIGHWAY CHUA) (400.20)
Written Communications:
Report dated November 3, 1987, from the Deputy Director, noting that on
September 29, 1987, the Agency approved a relocation settlement of $101,350. Mr.
Chua is purchasing the Chevron Station at 26988 Ortega Highway and has obtained a
commitment for a loan of $300,000 from Farmers and Merchants Bank. The Bank
conditioned its loan on a guarantee of $200,000 by the Redevelopment Agency, and
the report recommended that the Agency approve that guarantee.
Approval of Guarantee:
It was moved by Director Buchheim, seconded by Director Friess and unanimously
carried to approve the Agency's guarantee of Mr. Chua's loan with Farmers and
Merchants Bank for an amount not to exceed $200,000, and to authorize the
Executive Director to execute all necessary documents.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 7:37
p.m., to the next regular meeting date of Tuesday, November 17, 1987, at 7:00 p.m., in
the City Council Chamber.
Respectfully submitted,
MARY AN NOVE , A ENCY SECRETARY
ATTEST:
�1` J (-
AR L. HAUSDORFER, CHAI MAN
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