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.
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(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.
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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
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