94-0201_CRA_Minutes_Regular Meeting247
FEBRUARY 1, 1994
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 7:20 p.m. in the City Council Chamber.
ROLL PRESENT: Carolyn Nash, Chairman
Collene Campbell, Vice Chairman
Gary L. Hausdorfer, Director
Gil Jones, Director
Jeff Vasquez, 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; Lt. Paul Sullivan, Orange County Sheriff's
Department; Nancy Bernardi, Recording Secretary.
The Minutes of the Regular Meeting of January 4, 1994, were approved as submitted as part of the City Council
Consent Calendar,
BOARD ACTIONS
1. RECEIVE AND FILE WARRANTS FOR JANUARY 1994 (3Q0.30)
It was moved by Director Hausdorfer, seconded by Director Vasquez, and unanimously carried that the
List of Demands dated January 20, 1994, in the total amount of $719,737.85 be received and filed.
2. CONSIDERATION OF REQUEST FOR REIMBURSEMENT OF MITIGATIQN QQSTS FOR
FRANCISCAN PLAZA PHASE II FARBER 600.40
Director Jones indicated he would abstain on this item due to a potential conflict of interest relating to the
proximity of his residence/business to this project.
Written Communication:
Report dated February 1, 1994, from the Finance Officer, recommending that the Agency approve
additional reimbursement, not to exceed 25% ($39,974), for mitigation costs to the Franciscan Plaza
Investment Group based on the public benefits of the Franciscan Plaza, Phase II project.
Ms. Pendleton made an oral presentation.
Director Campbell stated she would support the additional reimbursement since the City required the
mitigation measures to preserve the heritage of the community and maintain the historic Avila Adobe.
Director Vasquez felt that the CRA had insufficient funding to provide the additional reimbursement
and noted that the City requires these measures for many projects in the City. He expressed concern
that other developers within the historic area would request the same type of financial participation by
the City.
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Approval of Additional Retmbursem n :
It was moved by Director Campbell, seconded by Director Hausdorfer, that the Agency provide
additional reimbursement, in an amount not to exceed 25% ($39,974), for mitigation costs to the
Franciscan Plaza Investment Group based on the public benefits of the Franciscan Plaza, Phase II
project. The motion was carried by the following roll call vote:
AYES:
Directors Campbell, Hausdorfer, and Chairman Nash
NOES:
Director Vasquez
ABSTAIN:
Director Jones
ABSENT:
None
CLOSED SESSION
The Board recessed to the Council meeting at 7:25 p.m. and reconvened in Closed Session at 8:25 p.m. for
discussion of Real Property Negotiations with the City Council per Government Code Section 54956.8 (26832
Ortega Highway--O'Neill/Nordeck/Riverside Commercial Investors) and Initiated Litigation per Government
Code Section 54956.9(a) (Negrete v. San Juan Capistrano and related litigation), the Agency Secretary being
excused therefrom, and reconvened at 10:15 p.m.
BOARD ACTIONS (Conducted jointly with the City Council)
1. RF -AL PROPERTY NEGOTIATIONS - 26832 ORTEGA HIGHWAY O'NEILL 670.70
It was moved by Director Hausdorfer, seconded by Director Jones, to authorize the City Manager to
enter into negotiations with the O'Neill Group for the purposes of determining the final aspects of the
transaction, including purchase price, date and time of closing, and other associated details such as
specific development proposals for the property, timing of that development, retrofitting and timing of
retrofitting and all other details relative to development of the property. The results of the negotiations
are to be returned to the City Council within ten working days for further consideration; should those
negotiations fail, the proposal by Riverside Commercial Investors will then be considered on its merits.
Chairman Nash and Director Campbell indicated they would not support the motion due to their feeling
that the proposal from Riverside Commercial Investors was a better proposal for the City.
The motion carried by the following roll call vote:
AYES: Directors Hausdorfer, Jones, and Vasquez
NOES: Director Campbell and Chairman Nash
ABSENT: None
2. SETTLEMENT AGREEMENT AND MUTUAL RELEASE OMMITTEE TO REST RE
INTEGRITY IN SAN JUAN CAPISTRANO NEGRETE 600.30
The Agency Counsel advised that the Agreement involved all cases and appeals filed by the Committee
to Restore Integrity in San Juan Capistrano v. the City and Carlos F. Negrete v The City and all
defendants. The Agreement required that all litigation and appeals be dismissed, with prejudice to any
refiling and included a five-year provision that Mr. Negrete will not personally file nor institute as an
attorney, any lawsuits against the City, except in areas that involve specific exceptions dealing with him
in his personal or legal capacity for injuries. If the provision was breached the full amount of attorneys'
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fees would become a charge against Mr. Negrete. The Agreement also included a provision that except
for the press release agreed upon by both the City and Mr. Negrete, no other press release or
representation to the media would be made with respect to the subject matter of the Agreement or the
litigation referenced therein. He further noted that the City had spent just over $1 million in legal fees
in the collective litigation and the trial court had awarded the City $814,000 in attorneys' fees.
It was moved by Director Hausdorfer, seconded by Director Vasquez, to enter into the Settlement
Agreement and Mutual Release between Carlos R. Negrete and the Committee to Restore Integrity in
San Juan Capistrano, the City of San Juan Capistrano, the San Juan Capistrano Community
Redevelopment Agency, Gary L. hausdorfer, Kenneth E. Friess, Lawrence Buchheim, Anthony L. Bland,
Phillip Schwartze, David Bentz, Stephen B. Julian and Gephard R. Durenberger.
Director Jones indicated he would not support the motion since the City has prevailed in the courts and
he felt the City would ultimately prevail at the appellate court level. He felt a judge should decide the
matter in order to restore the citizens' confidence in the City. Upon being questioned by Vice
Chairman Campbell, Director Jones stated he would agree to make no further statements outside the
Council Chamber on this item. Director Hausdorfer stated he would support the motion and had no
comment now and would have no comment in the future. Director Vasquez stated he would support
the motion but would not commit to not expressing his opinion about this issue. Following further
discussion, Director Vasquez agreed to consult with the City Attorney prior to any discussions he might
have with the media on this issue to ensure his discussions would not jeopardize the terms of the
Agreement. Chairman Nash stated her support of the motion since she felt Mr. Negrete would continue
to file lawsuits, which would entail additional expense to the City, and the City had no way to recover
the fees awarded to it. Vice Chairman Campbell also felt it was in the best interests of the community
to end the litigation and the resulting expenses, realizing there was no way to recoup the funds awarded
to the City. She cited her relief that the City Council indicated its intent to honor its commitment of
no further discussion on the matter.
The motion was carried by the following roll call vote:
AYES: Directors Campbell, Hausdorfer, Vasquez, and Chairman Nash
NOES: Director Jones
ABSENT: None
There being no further business before the Board, the meeting was adjourned at 11:15 p.m. to the next regular
meeting date of Tuesday, February 15, 1994, at 7:00 p.m. in the City Council Chamber.
Respectfully submitted,
r
CHERYL J04NSOK, AGENCY SECRETARY
ATTEST:
CAROLYN ASH, CHAIRMAN
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