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94-0524_CRA_Minutes_Adjourned Regular Meeting291 MAY 24,1994 ADJOURNED REGULAR MEETING OF THE SAN JUAN CAPISTRANO COIVIlMUNITY REDEVELOPMENT AGENCY BOARD OF DIRECTORS The Adjourned Regular Meeting of the City Council of the City of San Juan Capistrano, California was called to order by Mayor Campbell at 11:02 a.m. in the City Council Chamber, to conduct a joint public hearing with the Community Redevelopment Agency to consider the Disposition and Development Agreement for sale of the El Peon Complex. ROLL CALL: 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; Richard K. Denhalter, Legal Counsel; Cheryl Johnson, Agency Secretary; Cynthia L. Pendleton, Finance Officer. PUBLIC HEARINGS JOINT PUBLIC HEARING - PROPOSED DISPOSITION AND DEVELOPMENT AGRELNIENT FOR EL PEON COMPLEX LOCATED AT 26822 ORTEGA HIGHWAY AND 31752-31762 CAMINO CAPISTRANO (SAN JUAN PARTNERS) (CONN MD FROM MAY 17, 1994) 40( 0.20) ose: The meeting was continued from May 17, 1994, to allow sufficient time for review of the proposed Disposition and Development Agreement. Written Communications: (1) Report dated May 24, 1994, from the Finance Officer, providing a summary of previous actions relating to the proposed sale of the El Peon Complex, and advising that the negotiated Disposition and Development Agreement provided a purchase price of $1,105,000 for the property in an "as is" condition. The cost of improvements committed to by San Juan Partners for the rehabilitation and economic revitalization of the complex was estimated at $686,550. A facade easement had been included in the Agreement in recognition of the need to protect the architectural theme and character. The existing legal non -conforming use relating to parking had also been identified in the Agreement. The report forwarded the Disposition and Development Agreement, including staff comments, for Board review and comment. (2) Exhibits A - J to the Disposition and Development Agreement. SLaffs Recommended Changes: The Finance Officer reviewed the following additional changes requested by staff. Page 14, Section D, second paragraph, second sentence - Ms. Pendleton read the recommended change. Following discussion, it was the consensus of the Board that the wording in the Agreement not be changed. Page 15, first paragraph - Ms. Pendleton read the recommended change. Discussion ensued regarding the possible interpretation that pre -approvals were being given and the need to retain the wording relating to not denying plans solely because they varied from the facade easement. Adjourned CRA Council Minutes -1- 5124194 292 (1) Steve Nordek, 31786 Camino Capistrano, San Juan Partners, advised that there was no intent to obtain any pre -approvals. The wording was intended to alert the Agency that in order to develop the building there would modifications. He further stated their intent to preserve the theme and charm of the buildings while making them economically feasible. (2) Ken Steelman, attorney with Corbett & Steelman, 18200 Von Karmen, Irvine, stated there was no objection to revising the language to clearly indicate that pre -approvals were not being given and that plans would be submitted and approved consistent with the architectural theme and would go through the regular process. Following discussion, there was a Board consensus with Mr. Steelman's wording, as follows, beginning with the second sentence: Delete the words "The parties acknowledge that". The remainder of the paragraph will read "The contemplated plans for modification of the facade to be submitted are required to enhance and retain the architectural theme of the Property. Furthermore, it is understood that the plans shall not be denied solely because the plans may vary from the facade easement." Page 27, Number 5 - the Board concurred with the staff recommendation to modify wording as read by Ms. Pendleton. Page 28, concluding paragraph Number 6 from page 27 - the Board concurred with the staff recommendation to remove wording as read by Ms. Pendleton. Page 20, Number III. A. - the Board concurred with the staff recommendation to add a sentence at the end of the paragraph relating to submittal of a detailed statement of repairs. Exhibit I - the Board concurred with the staff recommendation to add language relating to provision of a list of sub -tenants of Michael J. and Nancy Darnold prior to close of escrow Page 44, Section E - the Board concurred with the staff recommendation to remove wording as read by Ms. Pendleton. Developer's Recommended Changes: Mr. Steelman addressed the issue of cleanup and repair of the borings should escrow not be completed and advised that the indemnification wording requested by staff had been inserted on Page 22, Number 214. Page 21, fast paragraph, fourth sentence, additional wording was included regarding plan checks of seismic retrofitting. Mr. Nordeck advised that the wording relating to a delay in excess of 30 days not being included in the time set forth to complete the seismic retrofitting had been added because there was concern that seismic plan checking may be delayed due to circumstances beyond their control. Page 29, Number Ell. A. and Page 30, Section C, referred to a lot or parcel split. Mr. Nordeck advised that a lot or parcel split may be necessary to acquire financing for the proposed restaurant in order that the potential indebtedness not be encumbered against the entire property. Mr. Steelman suggested the addition of item (d) on Page 8, Number 6, regarding security and rent deposits which should be either pro -rated or charged to the Agency as a credit. The Board concurred with the changes recommended by the Developer. Director Jones expressed concern regarding the unknown cost for the required termite report. Mr. Nordeck stated that the termite report was mandated by law and was the responsibility of the Agency through escrow. Public Hearing: Notice having been given as required by law, Mayor Campbell opened the public hearing and, there being no response, closed the Hearing with the right to re -open at any time. Adjourned CRA Council Minutes -2- 5124194 Approval of Diaosition ad DeveloRment Aglement, Ls Amended: It was moved by Director Jones, seconded by Director Hausdorfer that the following Resolution approving the Disposition and Development Agreement, as amended, for the sale of the Downtown Commercial Complex (El Peon/Cafe Capistrano) to San Juan Partners, be adopted: U50LUTION NO. CRA 94-5-24-1,APPROVING DISPOSITION AND DEVELOPMENT AGREEMENT FOR THE SALE OF PROPERTY LOCATED AT 26822-26842 ORTEGA HIGHWAY AND 31752-31762 CAMINO C&EISTRANO TO SAN JUAN RS L PEON CO - A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING THE DISPOSITION AND DEVELOPMENT AGREEMENT FOR THE SALE OF CERTAIN PROPERTY WITHIN THE SAN JUAN CAPISTRANO CENTRAL REDEVELOPMENT PROJECT AREA TO SAN JUAN PARTNERS (EL PEON COMPLEX) The motion carried by the following vote: AYES: Directors Jones, Hausdorfer, Cambpell, Vasquez and Chairman Nash NOES: None ABSTAIN: None ABSENT: None Staff was directed to open a 60 -day escrow for the sale of the property. The Executive Director of the Agency was authorized to conclude the sale. CLOSED SESSION The Closed Session listed on the Agenda was not held. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 12:05 p.m., to the next regular meeting date of Tuesday, June 7, 1994, at 7:00 p.m. in the City Council Chambers. ATTEST: CAROLYN NASH, CHAIRMAN Adjourned CRA Council Minutes -3- Respectfully submitted, CHER'YL JOHN6bN,AGENCY SECRETARY 5124194 293