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
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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
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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
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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.
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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:
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KENNETH E. RIESS, C AIRMAN
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