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92-0407_CRA_Minutes_Regular MeetingF 71 APRIL 7, 1992 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 Friess at 7:40 p.m. in the City Council Chamber. ROLL CALL: PRESENT: Kenneth E. Friess, Chairman Gil Jones, Vice Chairman Jerry Harris, Director Gary L. Hausdorfer, Director Jeff Vasquez, Director ABSENT: None STAFF PRESENT: Stephen B. Julian, Executive Director; Thomas Tomlinson, Deputy Director; Richard K. Denhalter, Agency Counsel; David Bentz, Finance Officer; Cheryl Johnson, Agency Secretary; George Scarborough, Assistant City Manager; William Huber, Director of Engineering and Building Services; Al King, Jr., Director of Community Services; Nancy Bernardi, Recording Secretary. MINUTES Regular Meeting of March 17, 1992: It was moved by Chairman Friess, seconded by Director Hausdorfer, that the Minutes of the Regular Meeting of March 17, 1992, be approved as submitted. The motion carried by the following vote: AYES: Directors Harris, Hausdorfer, Jones, Vasquez, and Chairman Friess NOES: None ABSENT: None PUBLIC HEARINGS 1. JOINT PUBLIC HEARING WITH THE CITY COUNCIL - CONSIDERA_TION OF PROPOSED LEASE AGREEMENT - VAQUERO WEST --(SAN (SAN JUAN SALOON) (600.40) (CONTINUED FROM MARCH 17, 1992) Proposal: Hearing held jointly with the City Council to consider a proposed lease agreement with Vaquero West Mercantile for the -1- 4/7/92 2 San Juan Saloon property. The hearing was continued from the meeting of March 17 at the request of the applicant. Written Communication: Report dated April 7, 1992, from the Financial Officer and the Community Development Manager, recommending that the ten- year lease agreement be approved with Vaquero West Mercantile for the San Juan Saloon property. The lease terms include 10k months of free rent, lease payments in the amounts of $3,875 per month and $4,275 per month starting with the 34th month of the lease. The tenant may chose to extend the lease at the end of the 10 -year period; the rent would be adjusted at that time to the fair market value. The tenant will be responsible for improvements to the property, which were estimated at $175,000. The tenant will be given the "first right of refusal" should the Agency decide to sell the property. The Agency would receive approximately $477,950 over the initial lease term. Cassandra Walker, Community Development Manager, reviewed the terms of the proposed lease. Public Hearing: Notice having been given as required by law, Mayor Jones opened the Public Hearing, and there being no response, closed the hearing with the right to reopen at any time. Approval of Lease Agreement: It was moved by Director Hausdorfer, seconded by Chairman Friess, that the following Resolution be adopted approving the ten-year lease agreement with Vaquero West Mercantile: RESOLUTION_ NO. CRA 92-4-7-1, APPROVING LEASE OF FORMER SAN JUAN SALOON PROPERTY AT 26755 VERDUGO STREET TO VAQUERO _WEST MERCANTILE - A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, APPROVING THE LEASE OF CERTAIN PROPERTY WITHIN THE SAN JUAN CAPISTRANO CENTRAL REDEVELOP- MENT PROJECT AREA TO VAQUERO WEST MERCANTILE AND APPROVING THE LEASE AGREEMENT PERTAINING THERETO. The motion carried by the following vote: AYES: Directors Hausdorfer, Jones, Harris, Vasquez and Chairman Friess NOES: None ABSENT: None -2- 4/7/92 BOARD ACTIONS 1. RECEIVE AND FILE WARRANTS OF APRIL 2. 1992 1300.30 It was moved by Director Jones, seconded by Director Hausdorfer, and unanimously carried that the List of Demands dated February 28, March 31, and April 2, 1992, in the total amounts of $2,060.00, $3,335.00, and $348,408.78, respec- tively, be received and filed. 2. RECEIVE AND FILE CASH BALANCES BY FUND FOR FEBRUARY 1992 (330.50) It was moved by Director Jones, seconded by Director Harris and unanimously carried to receive and file the Finance Officer's Report of Cash Fund Balances for the month of February 1992 in the total amount of $-193,603.69. 3. DISPOSITION OF AGENCY ASSETS (670.10) Written Communication: Report dated April 7, 1992, from the Community Development Manager, recommending approval of the process for the sale of the following properties in the downtown area: the Swallows Inn (31782-86 Camino Capistrano) and the three buildings comprising the E1 Peon Complex (26822-26842 Ortega Highway, which includes the businesses of E1 Peon Pottery Yard, Cynthia's, Ana's of Guatemala, El Estilo, Ice Cream Shop, Cafe Capistrano, M&M Jewelers, Cat's Meow, Don Julian Imports, and Mission Photography). The sale of these properties would assist the Agency in meeting its ongoing debt service obligations, continuing with the administration of Agency -designated priorities, and maintaining Agency -owned properties. These properties were not envisioned to be part of the Historic Town Center Concept Plan and the sale does not impact implementation of the Plan. The Report summarized the issues involved with the sale of these buildings and the process for soliciting prospective buyers and tenants. The report included a schedule for disposition of the properties and included two walk-throughs and a recommendation to the Agency on July 21, 1992. Mr. Julian noted that the original plan for the Historic Town Center was halted due to archeological finds in the project area and subsequent excavation. He emphasized that the subject properties were originally purchased by the Agency as part of a short-term acquisition of properties to be included in the original plans for the Historic Town Center with the intent to sell them to the developer for implementation of the Plan. He stated that the existing tenants will be given -3- 4/7/92 ample opportunity to participate in the acquisition of the properties they occupy, noting that they have expressed an interest. He further advised that the steering committee for the Historic Town Center project is presently working on a Master Plan, which includes public parking at the Swallows Inn property, the realignment of Ortega Highway, and the Mission Forecourt. Director Harris indicated concern regarding inclusion of the Historic Town Center concept in the sale brochures prior to its approval by boards and commissions. He further clarified that there had been no intent to keep the properties; the motivation for their purchase was to gain control over parking. Director Vasquez inquired whether there was any conflict between the Disposition and Development Agreement with Oliver McMillan for the Historic Town Center property and the sale of the subject properties. Mr. Julian indicated that these properties would not be affected by it. Public Comment: Mike Darnold, owner of El Peon, requested that he be consid- ered as a potential buyer for his portion of the E1 Peon Complex. He cited concern that he, as well as the other existing tenants, would have difficulty bidding against large developers. Ted Stroscher, 31882 Del Obispo Street, voiced his support for the sale of the subject properties by the Agency and the realignment of Ortega Highway. He urged that Mr. Darnold be given a fair chance to compete for the purchase of his property. He urged that the Agency take the legal steps necessary to ensure that the realignment of Ortega Highway is not jeopardized from the sale of these parcels. He stressed the need to make sure there is adequate parking reserved in the historic town center. He suggested that the City assist all local businesses during these difficult economic times by relaxing some of its regulations, such as the Sign Code. The Board concurred in their concern for the tenants and the need to give them every opportunity to purchase the properties. Director Jones concurred with Mr. Stroscher's comments regarding the protection of the realignment of Ortega Highway. Director Hausdorfer felt that the Agency should be cautious in considering disposition of the properties before a plan has been approved for the downtown area and suggested that when the final proposals are presented to the Agency for review, staff should submit a schedule for the implementation of the current concept plan for the Historic Town Center. Q= 4/7/92 Annroval of Process and Schedule for the Sale of Agency_ Owned Properties: It was moved by Director Hausdorfer, seconded by Director Jones, and unanimously carried that the bidding process and schedule for the sale of the two properties at the E1 Peon Complex and the Swallows Inn be approved, with the provision that when staff recommendations are brought back regarding the sale of the properties the elements involving the existing tenants and timing of the Historic Town Center plan be included in the analysis. CLOSED SESSION The Board recessed to the Council meeting at 8:25 p.m. and reconvened in Closed Session at 8:55 p.m. for discussion of property negotiation matters per Government Code Section 54956.8 (33961 Doheny Park Road/Price Club), the Agency Secretary being excused therefrom, and reconvened at 10:00 p.m. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 10:00 p.m. to the next regular meeting date of Tuesday, April 21, 1992, at 7:00 p.m. in the City Council Chamber. Respectfully submitted, CHERYL JOHMSONJ AGENCY SECRETARY ATTEST: �z KENNETH E. RIESS, C AIRMAN -5- 4/7/92