94-0405_CRA_Minutes_Regular Meeting271
APRIL 5,1994
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 CALL: PRESENT: Carolyn Nash, Chairman
Collene Campbell, Vice Chairman
Gary L. Hausdorfer, Director
Gil Jones, Director
ABSENT: Jeff Vasquez, Director
STAFF PRESENT: George Scarborough, Executive Director; Thomas Tomlinson, Deputy Director; Richard K.
Denhalter, Agency Counsel; Cynthia L. Pendleton, Finance Officer; Cheryl Johnson, Agency Secretary; William Huber,
Director of Engineering and Building Services; Al King, Jr., Director of Community Services; Lt. Paul Sullivan, Orange
County Sheriffs Department; Nancy Bernardi, Recording Secretary.
NUNUTES
The Minutes of the Special Meeting of March 1, 1994; the Regular Meeting of March 1, 1994; and the Adjourned Regular
Meeting of March 8, 1994, were approved as submitted as part of the City Council Consent Calendar.
PUBLIC HEARINGS
JOINT PUBLIC HEARING WITH THE CITY COUNCIL - STATUS REPORT ON
NEGOTIATIONS FOR SALE OF PROPERTY LOCATED AT 26822-26842 ORTEGA HIGHWAY
AND 31752-31762 CAMINO CAPISTRANO (EL PEON COMPLEX/SAN_JUAN PARTNERS)
67( 0.70)
Proposal:
Consideration of the disposition of property owned by the Community Redevelopment Agency located at 26822-
26842 Ortega Highway and 31752-31762 Camino Capistrano (EI Peon Complex/San Juan Partners),
Written Communication:
Report dated April 5, 1994, from the Agency Finance Officer, advising that the process for sale of the property
began in April 1992. In October, 1993, a Request For Proposal was sent out; seven proposals for the property
were received. Three proposals were received for one building only; two for the entire complex; and, two for
the entire complex plus the neighboring parking lot and building owned by the Agency. In January, 1994, staff
was directed to reject offers for a partial sale and to request that all other proposals be revised to include a
purchase price based on the parcel being offered for sale. The revised proposals were to include detailed
information regarding intended uses, experience in the area of intended use, detailed information regarding
experience with historically sensitive buildings, and financial backing. A revised proposal was received from
Richard O'Neill, who has joined with Steve Nordeck, who has also submitted a proposal, to form a partnership
for the project. The revised proposal included in increase in the purchase price from $950,000 to $1,105,000.
In January, 1994, staff was directed to begin negotiations with the ONeill/Nordeck partnership. The Report
recommended that a Disposition and Development Agreement for the property be completed with San Juan
Partners (comprised of Richard ONeill and Steve Nordeck) for consideration at the April 19, 1994, City Council
meeting.
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Exhibits were on display, and Ms. Pendleton made an oral presentation. She noted that staff now recommended
continuing the public hearing to a meeting in May to allow additional time to resolve certain points in the
Disposition and Development Agreement.
Public Hearing:
Notice having been given as required by law, Chairman Nash opened the Public Hearing, and the following
persons responded:
(1) Ken Steelman, attorney representing San Juan Partners, concurred with the proposed modification to
the staff recommendation to continue the public hearing to May. He spoke regarding the commitment
of the O'Neill family to San Juan Capistrano over the years in preserving the historic character of the
City. Director Jones inquired whether the seismic retrofitting could be completed with a one-year
period. Mr. Steelman advised that the retrofitting was planned for completion within a one-year period,
with the first vacant building expected to be completed within six months. He noted that bids were
currently being reviewed with the project architect.
(2) Rufus Barkley, representing Riverside Commercial Investors (RC1), requested that their proposal be
given more serious consideration. He stated that the proposal submitted by RCI was the most qualified
offer received by the City prior to the initial deadline. He felt it was unfair for the City to extend the
original deadline. He spoke regarding the high quality of the RCI team and their desire to proceed with
the project for the City. He expressed concern with potential conflicts of interest of two Council
Members because of their abstentions in other matters in the downtown area.
There being no further input, the hearing was declared closed with the right to reopen at any time.
Board Discussion:
Director Jones stated that he had no potential conflict of interest and would vote in this matter since he did not
live within 300 feet of the project and the project would have no positive or negative impact on his property.
Director Hausdorfer felt that the proposal process followed by the City had been fair for everyone involved
and noted the numerous responses received. He indicated he supported San Juan Partners because of their
commitment to the City and noted that the Agency was not obligated to sell the property for the highest price.
Chairman Nash stated that although she would support the proposal by San Juan Partners, she felt the RCI
proposal was the best proposal received, particularly because of the uses proposed for the site. She encouraged
RCI to follow the City's negotiations with San Juan Partners very closely, particularly if an agreement is not
reached with San Juan Partners. Director Jones voiced his strong support of San Juan Partners based on the
commitment of the O'Neill family to the City over the years.
Continuation of Public Hearing and Direction to Staff:
It was moved by Director Hausdorfer, seconded by Director Jones, and unanimously carried that.
(1) Staff be directed to conclude preparation of the Disposition and Development Agreement with San Juan
Partners for the sale of the Downtown Commercial Complex;
(2) Staff be directed to make the Disposition and Development Agreement and other related documents
available for public inspection by May S, 1994; and
(3) The hearing be continued to the meeting of May 17, 1994, to consider the Disposition and Development
Agreement, with the public hearing to be readvertised.
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BOARD ACTIONS
RECEIVE AND FILE WARRANTS FOR MARCH 1994 (300.30)
It was moved by Director Hausdorfer, seconded by Director Jones, and unanimously carried that the List of
Demands dated March 16, 1994, in the total amount of $382,810.15 be received and filed.
2. 1993-94 MID -YEAR CAPITAL IMPROVEMENT PROGRAM 330.40
Written Communication:
Report dated April 5, 1994, from the Director of Engineering and Building, recommending that the proposed
revised revenues and project changes be approved for the 1993-94 Mid -Year Capital Improvement Program.
Approval of Mid -Year Capital Improvement Program:
It was moved by Director Hausdorfer, seconded by Director Jones, and unanimously carried that the 1993-94
Mid -Year Capital Improvement Program be approved as submitted with increases and decreases in funds.
CLOSED SESSION
The Board recessed to the Council meeting at 7:46 p.m. and reconvened in Closed Session at 9:27 p.m. to confer with and
receive advice from the Agency Counsel regarding the following items:
Conference with Real Property Negotiator per Government Code Section 54956.8 for property located at 33949
Doheny Paris Road, San Juan Capistrano, with Orville Paul, negotiating party, to consider price and terms of
payment; and
2. Conference with Legal Counsel, Anticipated Litigation, per Government Code Section 54956.9(c), for the
initiation of litigation in three cases.
The Agency Secretary was excused therefrom, and the meeting reconvened at 9:50 p.m. Mr. Denhalter advised there
was no action to report on either item.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 9:52 p.m. to the next regular meeting date
of Tuesday, April 19, 1994, at 7:00 p.m. in the City Council Chamber.
Respectfully submitted,
CCIRYL�5O O AGENCY SECRETARY
ATTEST:
CAROLYN NA§A, CHAIRMAN
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