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88-0906_CRA_Minutes_Regular Meeting115 SEPTEMBER 6, 1988 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 Friess at 7:45 p.m., in the City Council Chamber. ROLL CALL PRESENT: Kenneth E. Friess, Chairman Gary L. Hausdorfer, Vice Chairman Anthony L. Bland, Director Lawrence F. Buchheirn, Director ABSENT: Phillip R. Schwartze, Director STAFF PRESENT: Stephen B. Julian, Executive Director; Thomas G. Merrell, Deputy Director; Mary Ann Hanover, Agency Secretary; Robert G. Boone, Finance Officer; John R. Shaw, City Attorney; William D. Murphy, Director of Public Works; Thomas L. Baker, Director of Community Services; Cheryl Johnson, Recording Secretary. MINUTES Regular Meeting of August 16, 1988: It was moved by Director Bland, seconded by Director Buchheim, that the Minutes of the Regular Meeting of August 16, 1988, be approved as submitted. The motion carried by the following vote: AYES: Directors Buchheim, Bland, and Chairman Friess NOES: None ABSTAIN: Director Hausdorfer ABSENT: Director Schwartze PUBLIC HEARINGS The Joint Public Hearing of the City Council and the Community Redevelopment Agency was conducted by Mayor Hausdorfer. 1. JOINT PUBLIC HEARING OF THE CITY OF SAN JUAN CAPISTRANO AND THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY PROPOSING LEASE OF REAL PROPERTY LOCATED AT 31431 CAMINO CAPISTRANO TO LIBROS Y ARTES DE SAN JUAN CAPISTRANO DURENBERGER 600.40 Proposal: Joint consideration of a Lease Agreement between the Redevelopment Agency and Libros y Artes de San Juan Capistrano for use of the property located at 31431 -1- 9/6/88 116 Camino Capistrano for the establishment of a "Center for the Study of the Decorative Arts for the UA estern United States." The center, as proposed by Libros y Artes, would be for public and professional education, study and exhibition of decorative and fine arts. The Agency has negotiated a purchase agreement with Gephard R. Durenberger for the building. Lease payments from Libras y Artes will provide revenue to partially offset payments on the Promissory Note. The Durenberger building is currently on the City's list of buildings of distinction. It was proposed that the property be used as an adjunct to the proposed Civic and Cultural Center which is to be developed on the old Capistrano High School site directly across the street. Applicant: This was a City/Agency-initiated Public Hearing. Written Communications: Report dated September 6, 1988, from the Deputy Director, forwarding a resolution approving lease of the site and the proposed agreement. The Executive Director described the Center proposed by Libros y Artes and its function in the Master Plan for the Civic and Cultural Center. The Agency wished to acquire the property and then lease the building to Libros y Artes. He discussed the financial arrangements, noting that the Agency would issue the Private Activity Bonds and the Promissory Note would be carried by Mr. Durenberger. Public Hearing: Notice having been given as required by law, Mayor Hausdorfer opened the Public Hearing and, there being no response, closed the Hearing with the right to re -open at any time. Approval of Lease/Negative Declaration/Authorization to Sign: It was moved by Director Bland, seconded by Director Buchheim that the following Resolution be adopted: RESOLUTION NO. CRA 88-9-6-1, APPROVING LEASE OF PROPERTY WITHIN REDEVELOPMENT PROJECT AREA TO CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, APPROVING THE LEASE OF CERTAIN REAL PROPERTY WITHIN THE SAN JUAN CAPISTRANO CENTRAL REDEVELOPMENT PROJECT AREA TO LIBROS Y ARTES DE SAN JUAN CAPISTRANO (31431 CAMINO CAPISTRANO) The motion carried by the following vote: AYES: Directors Hausdorfer, Buchheim, Bland, and Chairman Friess NOES: None ABSENT: Director Schwartze -2- 9/6/88 117 The Resolution found that lease of the site to the Tenant at less than fair market value was justified; approved a Negative Declaration; approved lease of the site to Libros y Artes; approved the Lease Agreement; and, authorized the Chairman of the Agency to execute the Agreement on behalf of the Agency. BOARD ACTIONS 1. ACQUISITION AGREEMENT AND PROMISSORY NOTE 31431 CAMINO CAPISTRANO DURENBERGER 600.40) Written Communications: Report dated September 6, 1988, from the Deputy Director, forwarding an Agreement for the Acquisition of Real Property by and between the San Juan Capistrano Community Redevelopment Agency and Gephard R. Durenberger. The purchase price of $1,000,000 included the land, buildings and good will. The agreement called for the Agency to execute a promissory note for the $1,000,000, the terms of which provide for the Agency to make interest -only payments to Mr. Durenberger for a period of time not less than 6 years nor more than 30 years. The Agency will receive $40,000 a year in lease payments from Libros y Artes. Approval of Acquisition of Site/Promissory Note: It was moved by Director Hausdorfer, seconded by Director Buchheim that the following Resolution be adopted: RESOLUTION NO. CRA 88-9-6-2, APPROVING ISSUANCE OF PROMISSORY NOTE - DURENBERGER - A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, MAKING FINDINGS AND APPROVING AN AGREEMENT FOR THE ACQUISITION OF CERTAIN REAL PROPERTY AND THE ISSUANCE OF AN AGENCY PROMISSORY NOTE (31431 CAMINO CAPISTRANO) The motion carried by the following vote: AYES: Directors Hausdorfer, Buchheim, Bland, and Chairman Friess NOES: None ABSENT: Director Schwartze The Resolution approved acquisition of the Site and the proposed Agreement and authorized the Chairman of the Agency to execute the Agreement on behalf of the Agency. 2. APPROVAL OF WARRANTS (300.30 It was moved by Director Hausdorfer, seconded by Director Bland, and unanimously carried to approve the Lists of Demands dated August I i, 1988, in the total amount of $122,019.10, and dated August 25, 1988, in the total amount of $88,398.22. -3- 9/6/88 118 CLOSED SESSION The Board recessed at 7:47 p.n,., to reconvene the City Council meeting. The Board convened in a Closed Session at 8:35 p.m., for discussion of lease of the Capistrano Depot property, the Agency Secretary being excused therefrom, and reconvened at 10:08 p.m. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 10:08 p.m., to the next regular meeting date of Tuesday, September 20, 1988, at 7:00 p.111., in the City Council Chamber. ATTEST: KENNETH E. FRIESS, CHAIRMAN Respectfully submitted, MARY A ANOV R, AGENCY SECRETARY -4- 9/6/88