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92-0818_CRA_Minutes_Regular MeetingAUGUST 18, 19'92 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 9:30 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. The Minutes of the Regular Meeting of July 21, 1992, were approved as submitted as part of the City Council Consent Calendar. PUBLIC HEARINGS 1. JOINT PUBLIC HEARING WITH THE CITY COUNCIL - PROPOSED DISPOSITION AND DEVELOPMENT AGREEMENT 31782-31786 CAMINO CAPISTRANO (SWALLOWS INN/FURRA) (600.40) Proposal: Joint Public Hearing with the City Council to consider a Disposition and Development Agreement for the sale of the Agency -owned property located at 31782-31786 Camino Capistrano (Swallows Inn and Paisley Penguin). Written Communication: Report dated August 18, 1992, from the Community Development Manager, recommending that the highest bid received by the Agency for the property from Ralph A. Furra be accepted in the amount of $500,000, a gain of $126,751 over the original purchase price. Mr. Furra has agreed to enter into a separate agreement with the owner of the Swallows Inn to purchase the name and business operation and continue its operation for a minimum of five years. Mr. Julian noted that an easement agreement between the Agency and Mr. Furra for the rear parking lot portion of the site to facilitate the possibility of future public parking improvements in the area was stili under review at this time. He suggested that the Disposition and Development Agreement be approved subject to completion of the Real Estate Disclosure Statement prior to execution by the Agency Chairman and resolution to the satisfaction of the Agency the issue of the parking easement for reservation of parking rights. -1- 8/18/92 Mr. Denhalter advised that the residential and business properties within 2,500 feet of this project owned by three of the Directors would not be financially impacted by the sale of these properties because there was no change proposed in the uses. Therefore, he felt there would be no conflict of interest for any of the Directors involved. 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. Board Discussion: Chairman Friess and Directors Vasquez and Jones concurred with Mr. Denhalter's opinion regarding potential conflicts of interest and stated they would vote in the matter. Director Vasquez expressed concern that the parking easement be included in the negotiated sale price and not be sold back to the Agency for the proposed realignment of Ortega Highway at a future date. Resoluti n Approving Disposition and D velo went Agreement: It was moved by Director Hausdorfer, seconded by Chairman Friess, that the following Resolution be adopted, subject to completion of the Real Estate Disclosure State prior to execution by the Agency Chairman and resolution of the parking easement rights issue: RESOLUTION NO. CRA 92-8718-1. APPROVING DISPOSITION AND DEVELOPMENT AGREEMENT FOR THE SALE OF PROPERTY LOCATED AT 31782-31786 CAMINO CAPISTRANO TO RALPH A. FURRA (SWALLOWS INN - A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING THE DISPOSITION AND DEVELOPMENT AGREEMENT FOR CERTAIN PROPERTY WITHIN THE SAN JUAN CAPISTRANO CENTRAL REDEVELOPMENT PROJECT AREA TO RALPH A. FURRA (SWALLOWS INN) The motion carried by the following vote: AYES: Directors Harris, Hausdorfer, Jones, Vasquez., and Chairman Friess NOES: None ABSENT: None BOARD ACTIO S 1. FINANCE OFFICER'S REPORT OF INVESTMENTS AS OF JULY 31, 1992 (350.30) It was moved by Director Hausdorfer, seconded by Director Harris and unanimously carried to receive and file the Finance Officer's Report of Investments as of July 31, 1992, in the total amount of $600,357.58. 2. ARCHAEOLOGIST CONSULTING AGREEMENT (ROBERTA GREENWOOD) (600.401 WrittenCommunication: Report dated August 18, 1992, from the Community Development Manager, recommending that the Agency enter into a two-year contract with Roberta Greenwood and Associates as the City's -2- 8/18/92 117 Consulting Archaeologist, in an amount not to exceed $40,000 for the two-year period: $20,000 from September 1, 1992, to June 30, 1993, with an additional $20,000 to be budgeted in fiscal year 1993-94 for services rendered during the period of July 1, 1993, to June 30, 1994. Approval of Contract: It was moved by Director Hausdorfer, seconded by Director Jones, and unanimously carried to approve the agreement with Roberta Greenwood and Associates to perform services as the City's Consulting Archaeologist, as outlined in the Scope of Work, for a two-year period in an amount not to exceed $40,000. Chairman Friess commended Cassandra Walker, Community Development Manager, on her services and announced she would be leaving shortly on a one-year unpaid leave of absence to pursue academic studies in the field of historic preservation. 3. HISTORIC TOWN CENTER CONCEPT PLAN COST ANALYSIS 400.20 Written Communication: Report dated August 18, 1992, from the Community Development Manager, providing specific information, as requested by the Board in April 1992, on the costs associated with the development of various components of the Historic Park Concept Plan, financial aspects of the property purchase, and annual maintenance costs. The estimated costs for the concept plan totaled $10,380,805 and were broken down as follows: Historic Town Center Park area, parking areas, Ortega Highway realignment/Mission Forecourt/Forster Street Extension, new commercial sites, and current Agency costs. Mr. Denhalter advised that the four Directors who own properties within 2,500 feet of the project (Harris, Jones, Vasquez, and Chairman Friess) would probably have no conflict of interest in discussing this item since the Report was provided for informational purposes only. However, he stated that any deliberations in this matter could constitute a conflict of interest and suggested that any decisions regarding the project's goals and objectives be postponed until an official ruling was received from the Fair Political Practices Commission regarding potential conflicts of interest. Cassandra Walker, Community Development Manager, gave an oral presentation. Mr. Julian noted that the properties purchased by the Agency between 1985 and 1988 at an approximate cost of $5 million were meant to be sold to fund other Agency projects and public improvement programs. However, he expressed concerns whether the Agency would be able to recover the $5 million in acquisition costs; and, how the Historic Town Center improvements could be financed and the archaeological finds preserved, particularly with reductions in federal and state funding for local governments taking place throughout the country. Depending on the outcome of the state budget approval, he felt that the City may lose its property tax revenues and tax increment funding. He advised that the tax increment has been generally obligated to pay for bonds and if the State were to take the tax increment, that obligation would have to be funded by the City's General Fund. He noted that tax funding through the Open Space Measure would not be available to pay for Historic Town Center improvements. Public Comments: (1) Tim Bolin, 31682 El Camino Real, publisher of "The Swallows Tale," suggested that the business community work with the rest of the community to resolve the financial issues involved with the downtown revitalization and that the concept plan be studied with the view that the current economic conditions would not improve. He felt that the revenue generated from the park plan would not be sufficient to pay for the facilities. He felt that the -3- 8/18/92 archaeological finds should be excavated and exhibited, which could develop an industry to pay for the services desired by the community. (2) Mike Udkovich, 33741 Connemara Drive, encouraged the Agency and City Council to move forward now with the creation of the Historic Town Center, which would enhance the quality of life and provide income for the community. With proper development and capitalization of the City's resources more visitors would come to town and residents would return, thereby supporting local businesses and generating sales tax revenue and supporting the concept of community. He felt that the City could no longer afford to spend more time delaying the Historic Town Center decision. He stated the last thing needed was to invest more money without the hope of any return and at a large negative annual operating expense to create a park on the Historic Town Center land. He stated what was needed was action to approve and implement a master plan similar to the Oliver McMillan plan. (3) David Swerdlin, 26172 Via de Toledo, stated that what was really being discussed was what direction the town wants to go; whether to be unique or like every other community. He stated the City had a lot of human resource that could perhaps help solve this problem. He asked the Agency to, instead of receiving and filing the report, direct staff to develop a process for soliciting public input to determine the best course of action for the community. (4) Joe Campbell, 31781 Camino Capistrano, spoke on behalf of the Board of Directors of the Chamber of Commerce, and read a statement of the Chamber's official position. The Chamber is concerned about the current direction being suggested in the planning of the Historic Town Center project and about the past capital outlay and existing indigent condition of the property. The Chamber would like to see the Historic Town Center project moved toward the completion of a small inn and expansion of new quality retail space in a park -like setting, noting that appropriate sensitivity to legitimate historical archaeology preservation is a key planning feature. He stated the Chamber was against any proposal resulting in the City subsidizing the Historic Town Center through local tax increases, bond issues or any other large expenditure. The original concept plan will be beneficial and suggested the City take steps to move the project toward completion in the immediate future. (5) Mike Darnold, 26022 Avenida Mariposa, noted that this process has been going on for many years. He cited his support of the Chamber's and Mr. Swerdlin's positions. He noted the need to get moving and that he would like to be part of the process that makes downtown viable. He further stated his belief that preservation of archaeological resources is important. (6) Tom Crane, 33301 Camino Capistrano, owner/operator of Capistrano Dodge, stated that the Agency must choose between spending $10 million on a park, which would generate no income for the City, or on an investment that would return money to the City for use in community programs. (7) David Belardes, tribal chairman of the Juaneno Band of Mission Indians and member of the Historic Town Center Ad Hoc Committee, noted that Committee had allowed for a park area and also for a hotel complex. He emphasized the importance of preserving the archaeological finds and suggested that the City obtain assistance through local college students. He felt that a hotel use would be acceptable on the perimeter and that there had been compromise in realizing the need to generate revenue. He noted the ad hoc committee had been in the process of forming a foundation to seek outside funding for park archaeology and the rehabilitation of historic buildings. He concurred that the process needs to move forward. -4- 8/18/92 (8) Paul Farber, owner of Franciscan Plaza, had previously requested to speak but did not respond when called at this time. (9) Mark Clancey, 31982 Via de Linda, felt that the $10 million figure determined for developing the historic park plan and statements that the plan would generate no funds were incorrect. He stated that with the exception of the $1,151,330 stated in report for development of the historic park, the remainder of the infrastructure improvements and land acquisition costs would also have to be borne by the Oliver McMillan project. He noted risks involved in giving the property to a developer involved in a Disposition and Development Agreement. He recommended that the Board take action on this item and if the Board does not wish to go with the historic park plan, there needs to be some indication given this evening of what direction will be taken. Board Discussion: Chairman Friess clarified that the staff report was not intended to be a comparison, but provide an estimated cost to do the historic park plan. He noted that insufficient money has been generated to complete the planning process for the Historic Town Center plan, and he urged the community to be realistic about the City's financial situation. Director Harris suggested that the various groups in the City meet together in a workshop setting, similar to the Open Space Master Plan workshops but with no outside consultant, putting all the facts on the table, to develop a consensus plan possibly within six months. Mr. Julian emphasized the importance of having an outside consultant involved with the process. Director Vasquez felt the discussion should be around a long-term game plan for each of the three major projects, whether to proceed or not. He suggested that the City first set its priorities for its three major projects (Open Space Master Plan, Historic Town Center, and Civic Center) and determine their affordability before finalizing any plans for the downtown area. He suggested that staff provide a cost analysis of all three projects and that the matter be agendized after the property appraisals are completed and the Fair Political Practices Commission has ruled on the four Directors' potential conflicts of interest. Approval of Town Forum Process: It was moved by Director Harris, seconded by Director Hausdorfer, that staff provide a recommendation on a process to bring the diverse community groups together in a workshop -type forum to develop a consensus plan for the downtown area, and include a timeframe for reaching that consensus. The motion carried, with Director Jones abstaining. Chairman Friess stated that he felt his interest in a small residential property, which is some distance from this property, would not have any impact different from the rest of the community. CLOSED SESSION The Board recessed to the Council meeting at 10:55 p.m. and reconvened in Closed Session at 11:45 p.m. for discussion of property negotiations and acquisition per Government Code Section 54956.8 (Swallows Inn, 31782- 86 Camino Capistrano, and the Pearl Williams Estate in the vicinity of Junipero Serra and Camino Capistrano -- open space), the Agency Secretary being excused therefrom, and reconvened at 12:20 a.m. Wednesday, August 19, 1992. -5- 8/18/92 ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 12:20 a.m. Wednesday, August 19, 1992, to Wednesday, August 26, 1992, at 8:00 a.m. in the City Council Chamber to conduct a Closed Session to discuss the acquisition of the Pearl Williams Estate. ATTEST: 1'6""'T' H E. FRIESS,' CHAI Respectfully submitted, 1 -6- 8/18/92 NOTICE AN ADJOURNED REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY WILL BE HELD ON THE 26TH DAY OF AUGUST, 1992, AT 8:00 A.M. IN THE CITY COUNCIL CHAMBER, 32400 PASEO ADELANTO, SAN JUAN CAPISTRANO. 2&��z J� �� CHERYL J NS , AGENCY SECRETARY POSTED: AUGUST 19, 1992