91-0305_CRA_Minutes_Regular MeetingMARCH 51 1991
REGULAR MEETING OF THE BAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY
BOARD OF DIRECTORS
The Regular Meeting of the Board of Directors of the City of San
Juan Capistrano Redevelopment Agency was called to order by
Chairman Buchheim at 9:51 p.m. in the City Council Chamber.
ROLL CALL: PRESENT: Lawrence F. Buchheim, chairman
Gil Jones, Vice Chairman
Kenneth E. Friess, Director
Gary L. Hausdorfer, Director
Jeff Vasquez, Director
ABSENT: None
STAFF PRESENT: Stephen B. Julian, Executive Director; Jeffrey C.
Parker, Acting Agency Secretary; Cheryl Johnson, City Clerk;
George Scarborough, Assistant City Manager; David Bentz, Finance
Officer; Tom Clark, Agency Counsel; William Huber, Director of
Engineering and Building Services; Al King, Director of Community
Services; Nancy Bernardi, Recording Secretary.
MINUTIS
The minutes of the meetings of February 19, 1991, and February 25,
1991, will be submitted for approval at the meeting of March 19,
1991.
HOARD ACTIONS
1. APPROVAL OF WARRANTS (3000)
It was moved by Director Hausdorfer, seconded by Director
Jones, and unanimously carried to approve the List of Demands
dated February 21, 1991, in the total amount of $494,572.19.
2. CONSIDERATION OF 1990-91 REVISED BUDGET (3.30.201
Written Coma igA ion:
Report dated March 5, 1991, from the Assistant to the City
Manager, forwarding a review of the mid -year budget, noting
expenditure reductions and additional unexpected expenses for
fiscal year 1990-91.
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Receive and File:
It was moved by Director Friess, seconded by Director Jones,
and unanimously carried that the Mid -Year Budget Report for
the Community Redevelopment Agency be received and filed.
3. PURCHASE AGREEMENT - KINOSHITA PROPERTY
Written Communication:
Report dated March 5, 1991, from the Executive Director,
forwarding a Property Acquisition Agreement and a Farm
Management and Operation Agreement for the purchase of
Kinoshita Properties. The purchase price is $9.5 million for
56.45 acres, and the agreement provides for a 20 -year
interest -only tax exempt note. The term for the Farm
Management Agreement is five years, with assistance to be
provided by the Kinoshita family to manage the project for a
short period of time and long-term plans to be implemented at
a later date.
Mr. Julian made an oral presentation, noting that the agency
intends to reserve 10 acres for relocation of the adult
education facility and to sell the balance to the City. With
monies received from the sale, the Agency will repay a portion
to the debt owed to the City. He advised that sufficient tax
increments exist for the Agency to pay back the debt to the
City.
Councilman Vasquez expressed concern regarding the City's
responsibility should the tax-exempt status for the Kinoshita
family be challenged and the possible conflict of interest
regarding counsel representing the Agency and also acting as
bond counsel, as had been noted in a recent Fair Political
Practices Commission ruling.
Tom Clark, Agency Counsel, clarified that the information
relative to possible conflicts of interest was contained in
an FPPC advice letter and suggested that where the same firm
acted as special counsel and was later brought in as bond
counsel there may be a conflict question. However, if a firm
is both special counsel and bond counsel pursuant to an
existing agreement, that same conflict did not exist and that
was the case in this instance. He further stated that his
firm had reviewed and analyzed the tax-exempt status and would
issue an unqualified opinion that there is no question that
in fact the interest on the Kinoshita Notes is tax exempt.
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Apl2rQval,of Agreements-angi Joint Escrow Instructions:
It was moved by Director Friess, seconded by Director
Hausdorfer that the following Resolution be adopted approving
the Sale Agreement/Joint Escrow Instructions:
REEOLUTION NO. C 91-3-5-1. APP OV X TI N OF
?_URCHASE AND SALE AGREEMENT/JOINT ESC OW INgTRUCTIONS
(KINOSHITA PROPERTIES) - A RESOLUTION OF THE SAN JUAN
CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, APPROVING
THE EXECUTION OF A PURCHASE AND SALE AGREEMENT/JOINT
ESCROW INSTRUCTIONS BETWEEN THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY AND KINOSHITA
PROPERTIES
The motion carried by the following vote:
AYES: Directors Jones, Friess, Hausdorfer,
Vasquez, and Chairman Buchheim
NOES: None
ABSENT: None
The Property Acquisition Agreement and the Farm Management and
Operation Agreement for the Kinoshita Properties were approved
in the amount of $9.5 million and the Agency Chairman and the
Executive Director were authorized to execute the Agreements
on behalf of the Agency.
The meeting will be adjourned to Wednesday, March 6, 1991, at
7:00 p.m. in the La Sala at the City Library, to hold a joint
meeting between the Agency and the City Council to approve the
sale of Agency property to the City of San Juan Capistrano.
CLOSED SESSIg
The Board recessed to the Council meeting at 10:10 p.m. and
reconvened in Closed Session at 10:59 p.m. for discussion of the
lease agreement with the Paisley Penguin, the Acting Agency
Secretary being excused therefrom, and reconvened at 12:25 a.m.,
March 6.
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There being no further business before the Board, the meeting was
adjourned at 12:25 a.m., Wednesday, March 6, 1991, to the next
meeting date of,Wednesday, March 6, 1991, at 7:00 p.m. in the La
Sala at the City Library.
Respectfully
submitted,
J F Y V. PARKER, ACTING AGENCY SECRETARY
ATTEST:
LA CE F. BUCHREIM, CHAIRMAN
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Mr) TIrF
AN ADJOURNED REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SAN
JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY WILL BE HELD ON
THE 6TH DAY OF MARCH, 1991, AT 7:00 P.M. AT THE LA SALA, 31495 E1 CAMINO
REAL, SAN JUAN CAPISTRANO.
J FF PARK
AGENCY SECRETARY
POSTED: MARCH 6, 1991