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
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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
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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.
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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
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