95-0221_CRA_Minutes_Regular Meeting01s
FEBRUARY 21, 1995
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 Swerdlin at 8:21 p.m. in the City Council Chamber.
ROLL CALLi PRESENT: David Swerdiin, Chairman
Carolyn Nash, Vice Chairman
Collene Campbell, Director
Wyatt Hart, Director
Gil Jones, Director
ABSENT: None
STAFF PRESENT: George Scarborough, Executive Director; Thomas Tomlinson, Deputy Director;
Richard K. Denhalter, Agency Counsel/City Attorney; 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, Chief of Police Services; Nancy Bernardi,
Recording Secretary.
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Consideration of a request by Kinoshita Enterprises, L.P., a California limited partnership, to
issue one Replacement Note to Kinoshita Enterprises, L. P., with a date of March 6, 1991,
in the amount of $3,916,450.71, to replace three Notes issued on March 6, 1991, to Shigeru
Kinoshita, in the amount of $21,393.19; Shigeru Kinoshita Family Trust, in the amount of
$3,177,958.95; and, Shigeru Kinoshita Children's Trust, in the amount of $717,098.57. The
Replacement Note will maintain the same terms and conditions of the original Notes.
Aonlicant:
Kinoshita Enterprises, L.P.
28901 Via Hacienda
San Juan Capistrano, CA 92675
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Written Communic n:
Report dated February 21, 1995, from the Finance Officer, recommending that one
Replacement Note be issued in exchange for the three Original Notes for the same amount
and with the same terms and conditions as the Original Notes.
Ms. Pendleton made an oral presentation.
Public Hearing:
Notice having been given as required by law, Mayor Nash opened the Public Hearing, and
there being no response, closed the hearing with the right to reopen at any time.
Adoption of Resolution Uproving the Issuance of One Replacement Promissory
Note for Kinoshita arises. L.P.:
It was moved by Director Jones, seconded by Director Campbell, that the following
Resolution be adopted:
RESOLUTION NO. CRA 95-2-21-1. APPROVING EXECUTION OF A
REPLACEMENT NOTE_- (KINOSHITA ENTERPRISES. L.P.) - A
RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY, APPROVING THE EXECUTION OF A
REPLACEMENT PROMISSORY NOTE IN FAVOR OF KINOSHITA
ENTERPRISES, L.P., A CALIFORNIA LIMITED PARTNERSHIP
The motion carried by the following vote:
AYES: Directors Campbell, Hart, Jones, Nash, and Chairman Swerdiin
NOES: None
ABSENT: None
Authorization to Execute Replacement Note:
It was moved by Director Jones, seconded by Director Campbell, and unanimously carried
that the Agency Chairman be authorized to execute the Replacement Note.
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It was moved by Director Jones, seconded by Director Nash, that the staff' recommendations be
accepted for the following items listed on the Consent Calendar. The motion carried by the following
vote:
CRA Minutes
AYES: Directors Campbell, Hart, Jones, Nash, and Chairman Swerdlin
NOES: None
ABSENT: None
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The Minutes of the Regular Meeting of January 17, 1995, were approved as submitted.
2. RECEIVE AND FILE WARRANTS OF FEBRCLARY 1. 1995 ,300.30.
The List of Demands dated February 1, 1995, in the total amount of $14,174.45 was received
and filed.
The Finance Officer's Report of Investments as of January 31, 1993, in the total amount of
$1,905,294.36 was received and filed.
PARTNERS) (171 1
The Claim for Indemnity and Damages filed by Ken E. Steelman and David F. Brown of the
law offices of Corbett & Steelman, on behalf of San Juan Partners, was denied in its entirety,
as set forth in the Report dated February 21, 1995, from the Legal Counsel.
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Written Communigation:
Report dated February 21, 1995, from Cassandra Walker, Community Development
Administrator, forwarding a proposed three-phase Developer Selection Process for the
Historic Town Center. The first phase, Request for Qualifications, was tentatively scheduled
between March and July, 1995; the second phase, Request for Financial Proposals was
tentatively scheduled between May and September, 1995; and, the final phase, Exclusive
negotiations with Selected Developer, was tentatively scheduled between October, 1995, and
January, 1996, for preparation of a Disposition and Development Agreement. Construction
could begin in the winter of 1996-97. The report advised that expenditures for this process
' had not been budgeted and it would be necessary to include $23,000 in the Fiscal Year 1994-
95 mid -year budget adjustment and to budget the remaining $25,000 in Fiscal Year 1995-96.
Cassandra Walker, Community Development Administrator, made an oral presentation
Anne pevgl, oiler Selma ocos. Authnnzation gf B het Adjustments_ and
Appropriation of Fes:
It was moved by Director Hart, seconded by Director Jones, and unanimously carried that:
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(1) The Developer Selection Process for the Historic Town Center be approved;
(2) Budget adjustments be made in the amount of $23,000 in fiscal year 1994-95 and
$25,000 for fiscal year 1995-96 for this Process; and,
(3) Funds be appropriated.
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Written Communirgtion:
Report dated February 21, 1995, from Cassandra Walker, Community Development
Administrator, recommending that the Agency receive public input on this item, but defer
action pending consultation with the Agency's Legal Counsel regarding litigation impacts
relating to this decision. The Report summarized three options and associated costs for the
buildings, which included demolition of the building, identified as Option # 1; continued lease
identified as Option #2; or, sale of the buildings, identified as Option 43.
Cassandra Walker, Community Development Administrator, made an oral presentation.
Dixie Boehm of San Juan Capistrano Antiques, suggested that should the building be sold,
consideration be given to adding a provision in the escrow instructions giving the Agency
First Right of Refusal to buy back the building.
Sue Toiler, one of the partners in Moonrose, urged that the disposition of the building be
decided as soon as possible because their business was down. She felt it would be best to
demolish the building. In an unrelated matter, she urged the City to protect the health of its
trees by reducing the potential for damage or destruction during construction.
Mr. Scarborough indicated he would contact Ms. Toiler to discuss her concerns further.
Motion to Defer Actign:
It was moved by Director Nash, seconded by Director Campbell, and unanimously carried
that action on this item be deferred pending consultation with the Agency's Legal Counsel
regarding litigation impacts of the options in this matter.
CLOSED (610,85)
The Board recessed to the Council meeting at 8:35 p.m. and reconvened in Closed Session at 9:20
p.m. for:
1. Conference with Legal Counsel, Anticipated Litigation, per Government Code Section
54956.9(b), for significant exposure to litigation in three cases, and Government Code
Section 54956.9(c), the initiation of litigation in two cases;
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2. Liability Claims per Government Code Section 54956.95, M&M Jewelers, et al, claimant,
against the Community Redevelopment Agency;
3. Liability Claims per Government Code Section 54956.95, San Juan Partners, claimant, against
the Community Redevelopment Agency; and
4. Liability CIaims per Government Code Section 54956.95, Henderson, claimant, against the
Community Redevelopment Agency.
The Agency Secretary was excused therefrom, and the meeting reconvened at 10:48 p.m.
ACTIONS FOLLOWING CLOSED SESSION
Mr. Denhalter advised there was no action to report on any of the items.
0 III-61UNIZIal Big"
There being no further business before the Board, the meeting was adjourned at 10:49 p.m. to the
next regular meeting date of Tuesday, March 7, 1995, at 7:00 p.m. in the City Council Chamber.
Respectfully submitted,
CHERYL JO S , AGENCY SECRETARY
ATTEST:
DAVID 9WERDLIN, CHAIRMAN
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