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91-0319_CRA_Minutes_Regular MeetingMARCH 19, 1991 REGULAR MEETING OF THE SAN 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 8:10 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; Thomas Tomlinson, Acting Deputy Director; Jeffrey C. Parker, Acting Agency Secretary; Cheryl Johnson, City Clerk; George Scarborough, Assistant City Manager; David Bentz, Finance Officer; John R. Shaw, City Attorney; William Huber, Director of Engineering and Building Services; Al King, Director of Community Services; Nancy Bernardi, Recording Secretary. MINUTES Regular -Meeting of February 19, 1991: It was moved by Director Hausdorfer, seconded by Director Jones, that the Minutes of the Regular Meeting of February 19, 1991, be approved as submitted. The motion carried by the following vote: AYES: Directors Friess, Hausdorfer, Jones, Vasquez, and Chairman Buchheim NOES: None ABSENT: None Special Meeting of February 25, 1991: It was moved by Director Hausdorfer, seconded by Director Jones, that the Minutes of the Special Meeting of February 25, 1991, be approved as submitted. The motion carried by the following vote: -1- 3/1.9/91 AYES: Directors Friess, Hausdorfer, Jones, and Vasquez NOES: None ABSTAIN: Chairman Buchheim ABSENT: None Regular Meeting of March 5, 1991: It was moved by Director Hausdorfer, seconded by Director Jones, that the Minutes of the Regular Meeting of March 5, 1991, be approved as submitted. The motion carried by the following vote: AYES: Directors Friess, Hausdorfer, Jones, Vasquez, and Chairman Buchheim NOES: None ABSENT: None A.djourned ReaulgrMeeting of M ch 6 199 : It was moved by Director Hausdorfer, seconded by Director Jones, that the Minutes of the Adjourned Regular Meeting of March 6, 1991, be approved as submitted. The motion carried by the following vote: AYES: Directors Friess, Hausdorfer, Jones, Vasquez, and Chairman Buchheim NOES: None ABSENT: None BOARD ACTIONS 1. REPORT OF TITLE REVIEW OF HISTORIC TOWNSENTER 00.20 Written C ica ion: Report dated March 19, 1991, from the Executive Director, advising that a letter had been received from Mark Clancey, President of Friends of Historic San Juan, contending that pursuant to an opinion of C. E. Parker relative to title to Tract 103, Lots 24 through 30, the property located in the Historic Downtown Center, historically known as the Plaza of San Juan Capistrano, is and always has been public property; therefore, the Agency had no right to spend public funds to acquire the property. First American Title was contacted for an opinion on the issue. First American Title commissioned the law firm of Washburn, Briscoe and McCarthy to review the claim. Following their investigations, the two -2- 3/19/91 firms contend that the matter has and the actions of both the City Agency in purchasing the property forwarded the legal opinion o McCarthy. 35 been answered and refuted Council and Redevelopment were proper. The report f Washburn, Briscoe and Mr. Julian made an oral presentation. Tom Kelly, Vice President, National Counsel with First American Title insurance Company, reviewed the firm's investigation. The conclusion of the legal investigation was that Mr. Parker's conclusions were incorrect and First American Title would continue to guarantee title to the properties in question. Sean McCarthy, representing the law firm of Washburn, Briscoe & McCarthy, which has expertise in reviewing historical titles throughout the state, explained why the cases cited in the claim were of historical interest but were unsubstan- tiated from a legal standpoint, as detailed in the staff report. Mark Clancey, 31982 Via de Linda, representing Friends of Historic San Juan, stated that in proving the land was always publicly owned, the 1860 plat may have been overlooked, and the claimant needed to satisfy the requirement of bona fide occupancy by residing at the Plaza, which they did not. Mr. McCarthy stated that his firm did review the 1860 plat. Regarding the existence of the Plaza, he stated that it did exist in the early 1800's through 1860. However, it is the 1867 statute that is the true title to this property. Receive and'1: It was moved by Director Hausdorfer, seconded by Director Jones, and unanimously carried that the report,be received and filed. 2. DISPOSITION OF AGENCY AS5ET$ (670.70 Written Communication: Report dated March 19, 1991, from the Executive Director, recommending that certain properties located in the Historic Town Center be sold since these original short-term invest- ments acquired for the Historic Town Center project have been held by the Agency for a longer -than -anticipated length of time due to archaeological finds. Two options were provided: Option #1 is supportive of the Mission "forecourt -plaza" concept and provides for the possible realignment of Ortega Highway. option #2 precludes the Mission "forecourt -plaza" concept and further consideration of the realignment of -3- 3/19/91 Ortega Highway. The report included maps listing properties to be retained and sold in each option and it was clarified that Property #10 adjacent to the Birtcher Plaza was to be retained in both options. Mr. Julian made an oral presentation and reviewed the two options. He emphasized the importance of realigning Ortega Highway to improve circulation and parking in the downtown area and the need to terminate the Development Disposition Agreement once the properties are sold. It was noted that some of the properties in the downtown must be retained due to their important archaeological features. In addition, Mr. Julian felt that prospective buyers for the properties should demonstrate their commitment to and participation in the community. Director Friess suggested that the Agency wait to make a decision on this matter until the studies being performed by the Historic Town Center Committee are concluded by the end of April 1991 and recommendations made to the Agency in May. Mr. Julian emphasized the importance of addressing the issues of circulation and parking in the downtown and suggested that -in the interim, staff could work on other options for Agency consideration. Director Hausdorfer suggested that Staff study other options during the five --week period, which should include the realignment of Ortega Highway. He stated the preference for local tenants to have the first opportunity to purchase these properties. He further concurred that the Executive Director should be authorized to terminate the Development Disposition Agreement and to reimburse Olive McMillan for any monies due them. Chairman Buchheim also stated his preference for Option #1, which will retain the option for possible realignment of Ortega Highway. Director Vasquez suggested that staff explore options that would not require the Agency to sell the properties in the downtown and to consider the sale of other Agency -owned properties (e.g. storage property, the depot property *in and Little Hollywood). He stated his belief that the value of the downtown is with all of the properties under one ownership. Director Vasquez felt that either all of the properties in the downtown should be sold together to maximize the benefits or that the Agency retain the proper- ties and pay back the City in other ways. He noted that there is over $5 million worth of Agency -owned property that could be sold other than in the downtown area and requested that a current inventory be provided to the Board of all Agency assets for evaluation. He further requested *corrected by action 4/2/91 —4- 3/19/91 4- 3/19/91 development of an Option #3 which would address other alternatives to relieve the financial burden on the Agency. Director Jones stated that he would oppose any option that did not include the consideration of the realignment of Ortega Highway. He voiced his support of Option #1 and urged that the Historic Town Center Committee conclude their studies as soon as possible. Public Input: (1) David Swerdlin, member of the Historic Town Center Committee, agreed with Director Friess' comments and urged that the Agency keep an open mind when considering the Committee's final recommendations in May, particularly in regard to the realignment of Ortega Highway and the parking plaza. To alleviate some of the financial pressures on the Agency, he suggested that some properties could be mortgaged. (2) Ted Stroscher, member of the Historic Town Center Committee, urged that the Agency not sell any of the properties until the Committee has made its recommendations to the Agency in May because of potential legal and development complications. He noted that the process of realigning Ortega Highway would be a much smoother accomplishment under the Agency's owner- ship. (3) Mark Clancey, 31982 Via de Linda, member of the Historic Town Center Committee, agreed that the Agency should not make a decision on this issue until the Committee has made their recommendations to the Agency. (4) Bill Ortega, local businessman, questioned what the circulation advantages would be and how much the realignment of Ortega Highway would cost, particularly since no traffic study has yet been performed. Gantirtuation of Item: It was moved by Director Hausdorfer, seconded by Director Friess, and unanimously carried that: (1) the Agency take no action at this time and wait to receive the evaluation and recommendations from the Historic Town Center Committee; and (2) the Executive Director be authorized to begin termina- tion of the Development Disposition Agreement and to discuss reimbursement with Olive McMillan for any monies they may be anticipating in regard to the development of the original downtown plan. -5- 3/19/91 35U It was the consensus of the Board that staff prepare an inventory of all properties owned by the Agency, why they were acquired by the Agency, contingencies, and their status. The list should be prioritized depending on the amount of funds needed to repay the Agency's debt to the City. Staff was also directed to study additional options, including the possibility of mortgaging certain properties. 3. CHANGE ORDS - CAPISTRANO VALLEY HIGH SCHOOL GYMNASIUM ADDITION FRANK STAHL CONSTRUCTION COMPANY 600.40 Written Communication: Report dated March 19, 1991, from the Community Development Manager, recommending that a change order be approved adding $29,430.28 and 36 days to the original contract with the Frank Stahl Construction Company for the addition to the Capistrano Valley High School gymnasium. The change order was requested due to the relocation of several undocumented utility lines. ARRroval of Change Order and Contract Extensio : -It was moved by Director Friess, seconded by Director Jones, and unanimously carried that Change Order No. 1 in the amount of $29,430.28 be approved, and that the contract with the Frank Stahl Construction Company be extended for 36 days. 4. RESOLUTION, NOTICE OF COMPLETIONg COMPLETIONAND FINAL REPORT - ARC IT CTU L CONTROL 87-1. PRICE CLUB .(THE PRICE COMPANY)_1600.40) written -Communications: Report dated March 19, 1991, from the Director of Engineering and Building, advising that all improvements required by the Disposition and Development Agreement with the Price Club had been completed. The report. recommended that the Performance Bond for completion of on-site improvements be exonerated. co=jetion of Im rovement xo a ation of Bond: it was moved by Director Hausdorfer, seconded by Director Jones, that the following Resolution be adopted accepting the work as complete: _ RESOLUTION O. CRA 91-3-19-1, COMPLETION OF IMPROVEMENTS - RICE CLUB - A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, DECLARING WORK TO BE COMPLETED AS REQUIRED BY THE DISPOSITION AND DEVELOPMENT AGREEMENT FOR CONSTRUC- TION OF ARCHITECTURAL CONTROL 87-1 - THE PRICE CLUB -6- 3/19/91 The motion carried by the following vote: AYES: Directors Jones, Friess, Hausdorfer, Vasquez, and Chairman Buchheim NOES: None ABSENT: None The bond in the amount of $1,347,953 was exonerated, and the City Clerk was directed to forward a Notice of Completion to the County Recorder. CLOSED SESSION The Board recessed to the Council meeting at 9:32 p.m. and reconvened in Closed Session at 10:30 p.m. for discussion of property acquisition matters involving the Swanner, Pearl Williams Estate, Williams, and Henry Chao properties, the Acting Agency Secretary being excused therefrom, and reconvened at 11:30 p.m. ADJOUiINMFNT There being no further business before the Board, the meeting was adjourned at 11:30 p.m. to the next regular meeting date of Tuesday, April 2, 1991-1 at 7:00 p.m. in the City Council Chamber. Respectfully submitted, JEFDREY C. ATTEST' ENCE F. BUMETM, CHAIRMAN -7- 01 SECRETARY 3/19/91