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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 CRA Minutes -1- 10/18/94 326 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. CRA Minutes -2- 10/18/94 327 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. 61411"M 1\_ The List of Demands dated September 30, 1994, in the total amount of $1,184,091.24 was received and filed. KID 01111. Q 11 a 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. CRA Minutes -3- 10/18/94 328 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