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93-1102_CRA_Minutes_Regular Meeting225 NOVEMBER 2, 1993 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 Nash at 7:55 p.m. in the City Council Chamber. ROLL CALL: PRESENT: Carolyn Nash, Chairman Jeff Vasquez, Vice Chairman Collene Campbell, Director Gary L. Hausdorfer, Director Gil Jones, Director ABSENT: None STAFF PRESENT: George Scarborough, Executive Director; Thomas Tomlinson, Deputy Director; Richard K Denhalter, Agency Counsel/City Attorney; Cynthia L. Pendleton, Finance Officer; Cheryl Johnson, Agency Secretary; William Huber, Director of Engineering and Building Services; Ronald C. Sievers, Director of Public Lands and Facilities; Al King, Jr., Director of Community Services; Nancy Bernardi, Recording Secretary. The Minutes of the Regular Meeting of October 5, 1993, were approved as submitted as part of the City Council Consent Calendar. PUBLIC HEARINGS 1. JOINT PUBLIC HEARING WITH THE CITY COUNCIL--- CONSIDERATION OF PROPOSED STANDARD LEASE DOCUMENT AND RENT SCHEDULE FOR THE THIRTEEN LITTLE HOLLYWOOD RESIDENCES (600.40) (CONTINUED FRAM OCTOBER 19. 1993) Mayor Jones indicated that he would abstain on this item due to a potential conflict of interest relating to possible impacts on his personal property value. Mayor pro tem Campbell presided. Prg=sal: Consideration of a standard lease agreement and rent schedules for the thirteen Little Hollywood residences upon completion of each unit's rehabilitation. The new rents would be based on 25% of gross income, with a utility allowance of 5%. An additional credit of $50 per dependent child will be given to each household. The calculations were based on standards provided by HUD, the Orange County Housing Authority and the Orange County Housing and Redevelopment Agency. HUD regulations stipulate that rents for low- and moderate -income housing not exceed 30% of monthly gross income. Written Communication: Report dated November 2,1993, from the Finance Officer and the Deputy Director, recommending that the standard lease agreement and rent schedules be approved. CRA Minutes -1- 11/2/93 2.30 Ms. Pendleton made an oral presentation. In response to inquiries by Director Vasquez, Ms. Pendleton advised that total revenue to the City from the proposed rent increases would be approximately $200 per tenant per month, or $24,000 per year. She indicated that all tenants had been notified of the proposed increases, some of which would not take effect for two years. Public Hearing: Notice having been given as required by law, Mayor Jones opened the Public Hearing, and the following persons responded: (1) Pauline Leonard, 27589 Brookside Lane, on behalf of the Mary Erickson Foundation and San Juan Housing Advocates, spoke in favor of the proposed lease and rent schedule because it would preserve housing for low-income people in San Juan Capistrano. In particular, she supported the proposed guidelines from HUD and Orange County Housing Authority, the use of 25% income level instead of 30%, annual review of plan, consideration of children in the households, use of revenue to be used for Community Development Block Grant projects, and control of subletting. (2) Jessica Dean, 27032 Pasco Burladero, member of San Juan Housing Advocates, spoke onbehaif of the Orange County and Capistrano Bay area League of Women Voters. She concurred with the comments made by Ms. Leonard and spoke in favor of the proposals. .Council Discussion: Director Vasquez felt that some of the proposed rent increases were too high for the quality of the houses and that higher -income tenants would suffer too much of an increase. He inquired whether there was a waiting list available for these houses. He recommended that the houses be rehabilitated first then evaluated for their market value; from that market value, the City could then determine how much subsidy would be needed to offer the same relatively low rents to all tenants. Chairman Nash concurred and felt that additional evaluation was needed in this matter. Ms. Pendleton explained that staff considered charging a percentage of market value and determined the rents would not comply with HUD requirements for rent consistency for all tenants. She stated that the City has the option of leaving the rents as they are today, which are below the 30% income level. She noted that there is a waiting list of about 30 people. Director Hausdorfer stated that options were few in this matter since the Community Redevelopment Agency purchased these properties with HUD assistance, and that the City must comply with HUD restrictions. He suggested that the hearing be continued so that staff could provide a series of options, from the minimum to the maximum. Mr. Tomlinson noted that the proposed rent structure would not become effective until each unit had been completely rehabilitated. Continuation f Hearing: It was moved by Director Hausdorfer, seconded by Director Vasquez, that the hearing be continued, to a date uncertain, for staff to provide a series of options, including guidelines for people who wish to apply for this housing. The motion carried unanimously with Director Jones abstaining. The hearing will be re -noticed and re -advertised when scheduled for the agenda. CRA Minutes -2- 11/2/93 231 BOARD ACTION 1. RECEIVE AND FILE WARRANTS FOR QCIOBER 1993 (300-M It was moved by Director Hausdorfer, seconded by Director Jones, and unanimously carried that the List of Demands dated September 30, 1993, in the total amount of $10,891.00, and the List of Demands dated October 22, 1993, in the total amount of $163,862.68 be received and filed. 2. PROPOSED AMENDMENT TO SEASIDE RANCHOS Ii OMTMR PARTICIPATION AGREEMENT f DOLLEYL(600.M Written Communication: Report dated November 2, 1993, from the Executive Director, recommending that the Seaside Ranchos II Owner Participation Agreement be amended adjusting the Schedule of Performance to accommodate delays in acquiring the property, gas tank leakage remediation, and inability to secure an anchor tenant. Julia Kimminau, Management Assistant, made an oral presentation. AdQption of Resolution A r vi First Amendment easi Ranchos lI Owner Participation Agreement: It was moved by Director Hausdorfer, seconded by Director Campbell, that the following Resolution be adopted: RESOLUTION NO. CRA 93-11-2-1. APPROVAL OF AMENDMENT TO OWNER PARTICIPATION AGREEMENT (SEASIDE RANCHOS) - A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, APPROVING AN AMENDMENT TO THE OWNER PARTICIPATION AGREEMENT BY AND BETWEEN THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY AND SEASIDE RANCHOS The motion carried by the following vote: AYES: Directors Campbell, Hausdorfer, Jones, Vasquez, and Chairperson Nash NOES: None ABSENT: None The Board recessed to the Council meeting at 8:00 p.m. and reconvened in Closed Session at 9:10 p.m. for discussion of litigation per Government Code Section 54956.9(a) (Swerdlin v. CRA), the Agency Secretary being excused therefrom, and reconvened at 9:40 p.m. ACTION FOLLOWING CLOSED SESSION 1. PROPOSED SETTLEMENT AGREEMENT - MISSION PHOTOGRAPHY LEMS LITIGATION (SWERDLIN) (600.40) It was moved by Director Hausdorfer, seconded by Chairman Nash, and unanimously carried that the Executive Director be authorized to sign the Release and Termination of Tenancy Agreement, settling Swerdlin v. CRA and terminating the tenancy of David Swerdlin and Mission Photography on CRA premises. CRA Minutes -3- 11/2/93 232 There being no further business before the Board, the meeting was adjourned at 9:40 p.m. to the next regular meeting date of Tuesday, November 16, 1993, at 7:00 p.m. in the City Council Chamber. ATTEST: CAkOLYN N H, CHAIRMAN CRA Minutes Respectfully submitted, CHERYL JOHNSON GENCY SECRET -4- 11/2/93