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:
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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
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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
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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
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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.
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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
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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
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SECRETARY
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