94-1018_CRA_Minutes_Regular Meeting325
OCTOBER 18, 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 Vice Chairman Campbell at 8:30 p.m. in the City Council Chamber.
ROLL CALL: PRESENT: Collene Campbell, Vice Chairman
Gil Jones, Director
Jeff Vasquez, Director
ABSENT: Carolyn Nash, Chairman
Gary L. Hausdorfer, Director
STAFF PRESENT: George Scarborough, Executive Director; Richard K. Denhalter, Agency
Counsel/City Attorney; Cynthia L. Pendleton, Finance Officer; Cheryl Johnson, Agency Secretary;
Dick Bobertz, Planning Manager; William Huber, Director of Engineering and Building Services; Al
King, Jr., Director of Community Services; Sgt. Mike Tynes, Police Services; Nancy Bernardi,
Recording Secretary.
The Minutes of the Regular Meeting of September 20, 1994, were approved as submitted as part of
the City Council Consent Calendar.
I 1b MEN A Is 01
SO INTIM-3 a
Director Jones indicated he would abstain in this matter because of the proximity of his
business/residence to the subject property. Mr. Denhalter advised that because of Director Jones'
abstention, two votes were necessary to approve the proposed staff recommendation.
Proposal:
Consideration of a request by Vaquero West Mercantile to amend their lease agreement with
the Community Redevelopment Agency to provide for a monthly rent based on a percentage
of gross sales with a fixed minimum rent, instead of on the current fixed lease payment
system. The current lease provides for a fixed rent of $4,665 per month. The proposed Lease
included a lease amount of $1,295 per month for the period of August 1, 1993 through
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January 31, 1994; $1,295 per month for the period of February 1, 1994 through June 30,
1994; 6% of gross sales for the period of July 1, 1994 through January 31, 1995; and, 6% of
gross sales for the period of February 1, 1995 to April 6, 2002. The proposed lease
amendment also set a fixed minimum base rent of $2,000 monthly, to be adjusted by 5%
anually until April 6, 1996, at which time the fixed minimum rent would increase based on the
Agency's increased cost under the Master Ground Lease.
Applican:
Tim Holsten
Vaquero West Mercantile
26755 Verdugo Street
San Juan Capistrano, CA 92675
_Written Communication:
Report dated October 18, 1994, from the Finance Officer, recommending that the amended
lease terms be approved as requested by the applicant and that the public hearing be continued
to the meeting of November 1, 1994, for formal adoption of Lease Amendment #3, The
report noted that permanent renovations totalling approximately $400,000 had been
completed by Vaquero West without assistance from the Agency.
Ms. Pendleton made an oral presentation. She noted that a provision for a resident manager
for the second -floor overnight accommodations would be added to the lease at this time.
Director Vasquez inquired about the percentage of reduction between the proposed lease and
the current lease. Ms. Pendleton indicated that there would be about a 50% reduction in the
lease under the existing terms, and about a 15-20% reduction in 1996. She estimated that the
lease payments would eventually increase to $3,000 per month. She noted that the rate for
the proposed lease would be $.67 per square foot, and that Vaquero West is completely
responsible for the maintenance of the facility.
Public Hearing:
Notice having been given as required by law, Mayor Campbell opened the Public Hearing, and
the following persons responded:
(1) Carmen Etcheberria Dague, 31262 Calle San Juan, expressed concern regarding the
potential for the building being demolished if it were leased out and requested that she
be informed of any such plans.
Board Discussion:
Director Vasquez stated that the terms of the original agreement between Vaquero West and
the CRA stipulated that all revisions and modifications were to be at the sole cost of the
tenant. He felt the Agency/City was paying for the building modifications by changing the
terms of the lease and reducing the rent. He felt that the Agency/City should continue to
charge a straight rental payment and not request a percentage of the gross sales; therefore,
he would not approve the staff recommendation.
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In response to Vice -Chairman Campbell, Mr. Denhalter recommended that because of
Director Jones' abstention and the apparent lack of votes needed to approve the lease
amendment, the hearing be continued. He noted that Director Jones may participate in the
vote to continue the hearing.
Continuation of Public Hearing:
It was moved by Vice Chairman Campbell, seconded by Director Jones, that the public
hearing be continued to the meeting of November 1, 1994. The motion carried with Director
Vasquez voting in opposition.
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The List of Demands dated September 30, 1994, in the total amount of $1,184,091.24 was
received and filed.
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The Finance Officer's Report of Investments as of August 30, 1994, in the total amount of
$2,309,861.27 was received and filed.
The Board recessed to the Council meeting at 8:31 p.m. and reconvened in Closed Session at 8:50
P.M. for:
1. Conference with Real Property Negotiator per Government Code Section 54956.8 for
property known as the El Peon Complex, located at 26822-26842 Ortega Highway and
3 1752-3 1762 Camino Capistrano, with San Juan Partners as the negotiating party, to consider
price and terms of payment;
2. Conference with Real Property Negotiator per Government Code Section 54956.8 for
property known as the Depot, located at 26701 Verdugo Street, with Henderson as the
negotiating party, to consider price and terms of payment;
3. Conference with Real Property Negotiator per Government Code Section 54956.8 for
property known as Various School Sites within the School District, with Capistrano Unified
School District as the negotiating party, to consider terms of payment; and
4. Conference with Legal Counsel, Anticipated Litigation, per Government Code Section
54956.9(b), for significant exposure to litigation in one case, and Government Code Section
54956.9(c), the initiation of litigation in one case.
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The Agency Secretary was excused therefrom, and the meeting reconvened at 9:20 p.m.
Mr. Denhalter advised that Item #3 had been removed from consideration, and there was no action
to report on any of the remaining items.
There being no further business before the Board, the meeting was adjourned at 9:20 p.m. to the next
regular meeting date of Tuesday, November 1, 1994, at 7:00 p.m. in the City Council Chamber.
ATTEST:
d
CAROLYN NOK CHAIRMAN
CRA Minutes
Respectfully submitted,
CI-MILJOHN - :r
ME
10/18/94