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95-0919_CRA_Minutes_Regular Meeting117 SEPTEMBER 19, 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 9:06 p.m. in the City Council Chamber. R PRESENT: David Swerdlin, Chairman Collene Campbell, Vice Chairman Wyatt Hart, Director Gil Jones, Director Carolyn Nash, 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, Engineering and Building Director; Joe Arranaga, Public Lands and Facilities Director; Al King, Jr., Community Services Director; Lt. Paul Sullivan, Chief of Police Services; Nancy Bernardi, Recording Secretary. Mayor Nash announced that because of a staff error regarding notification, this item would be continued to the meeting of October 3. Proposal: Consideration of the following applications to construct 112 affordable senior apartments and one single-family residence at the southwest corner of Ortega Highway and Rancho Viejo Road: (1) Density Bonus Permit 95-1 to construct 112 affordable senior apartments. The applicant requested a 25% increase in the allowed density intensity, plus an increased density bonus for a total of 112 units, and financial assistance in exchange for guaranteeing affordability for 92 of the 112 units (with 18 units designated for very low and low income households) for 57 years. CRA Minutes - 1 - 9/19/95 118 (2) Rezone 94-4 to amend Comprehensive Development Plan 78-1 to permit the construction of one single-family residence and modify development standards. The Rezone would permit one 10,000 -square -foot single-family lot along the west property boundary, reduce setbacks from Ortega Highway and Rancho Viejo Road, allow a maximum 30 -foot building height within 50 feet of Ortega Highway, reduce the minimum perimeter landscape area from 30 feet to 7 feet, and establish a development review process for the single-family residence. (3) Architectural Control 94-5 for review of the site plans, architecture, lighting, Iandscaping, sign details, and putting greens. (4) Lot Line Adjustment to combine three separate lots into two—one for the senior project and one for the single-family residence. (5) Exception to Numerical and Covered Parking Standards to allow 105 parking spaces instead of the 123 required by the Municipal Code (a reduction of 18 spaces) and to construct non -covered parking. (6) Tree Removal Permit to allow the removal of seven Sycamore trees along the corner of Rancho Viejo Road and Ortega Highway as well as five other trees on site that are dead or decaying. Applicant Property,, caner: Kaufman and Broad Carlos Romer Tom Erickson, Project Manager P.O. Box 520 10990 Wilshire Blvd. San Juan Capistrano, CA 92675 Los Angeles, CA 90024 Written_ Co Report dated September 19, 1995, from the Planning Director, outlining and addressing issues with the project and recommending that the Negative Declaration be certified for the project and that all applications be approved, subject to mitigation measures and conditions of approval. Mechelle Lawrence, Associate Planner/Project Manager, made an oral presentation. Proposed site plans, building elevations, existing conditions plan, concept development plan, floor plan, and landscape plan were on display. She noted that the staff recommendation differed from that of the Transportation Commission and the Planning Commission as follows: Both recommended restricting right in and right out access; staff felt that access should not be restricted. The Transportation Commission recommended that parking be upgraded to require one space per unit; staff felt that .83 per unit was acceptable. The Planning Commission recommended clay tile roofs; staff felt that it should not be required because of cost considerations, which would increase the loan by the Community Redevelopment Agency. She recommended several modifications to the conditions of approval; one to correct a typographical error, and the other to delete a condition regarding CRA Minutes -2- 9119195 119 tree preservation that was unnecessary since there were other conditions that ensured the preservation of the trees. She noted that the adjacent property owners at the Forster Mansion had not received notification from the City of this item; however, they had expressed concerns with the proposed land use, visual impacts, and compatibility with the proposed single-family residence. Public Hearing: Notice having been given as required by law, Mayor Nash opened the Public Hearing, and the following persons responded: Applicant's Comments: Kevin Payne, Director of Development at Kaufman and Broad, concurred with most of the recommendations proposed by staff. He clarified that Condition #9 regarding future access to the adjacent retail property would be at no cost to Kaufinan and Broad. With regard to Condition #12 which required that guest parking spaces be placed in groups of 2, 3, and 4 throughout the site, he clarified that the only assigned guest parking would be at the recreational facility with the remaining spaces used on a first-come, first -serve basis. He felt staff had understood the condition in that way. He requested that Condition #14 be deleted, stating that the proposed age restriction on the single-family lot would conflict with their purchase agreement and would prohibit them from closing escrow on the property. He introduced the other representatives of the applicant in attendance. Ping Comments: (1) Phillip Charis, owner of a portrait studio at Capistrano Collection, explained that he originally purchased the Forster Mansion five years ago because of its historical landmark status, its close proximity to the freeway and the Mission, and the commercial designation of the surrounding area. He felt that the proposed senior housing and single-family residence were inappropriate uses for the area and would obstruct the view of Capistrano Collection and the Mansion from Rancho Viejo Road. He strongly urged that the Council reconsider allowing a residential use in an area previously designated for commercial. (2) Karen Hooper, representing Capistrano Collection, expressed concern that the proposed development would obstruct views of Capistrano Collection from Ortega Highway and could create traffic hazards for people trying to ingress and egress the center. She also expressed concern that the proposed low-income housing could deflate the value of the center and the Forster Mansion. She requested that the Council consider alternatives to mitigate impacts to the existing commercial uses. (3) Tom Merrell, a community development consultant representing Capistrano Collection and Mr. Charis, urged the Council to find solutions to the concerns expressed by both parties. He stated that Mr. Charis' concerns were with visual impacts from the proposed single-family residence behind the Mansion and its architectural compatibility, as well as the potential damage to the existing mature eucalyptus trees located on the property line. He felt that a better buffer was needed CRA Mmutes -3- 9/19/95 120 between the proposed residential use and the commercial uses. He felt that proposed Building B located at the corner of Rancho Viejo Road and Ortega Highway would completely block the view of the center and the Mansion. He noted the frustration of both property owners because of their belief that the adjacent property would be developed into commercial uses that would help their businesses. He requested that this hearing be continued to the meeting of October 3 so that staff' could work to resolve the property owners' concerns. There being no further input, the hearing was declared closed with the right to reopen at any time. Council Discus: Director Nash encouraged staff to work with the adjacent property owners to resolve their concerns. She noted that Ortega Highway is a designated Scenic Highway and urged staff to review that issue. She commented that Building B could be switched with the recreation building and urged that all mature trees be preserved on site. She reiterated the requirement that the proposed single-family residence be reviewed architecturally by the Design Review Committee and the Planning Commission. Chairman Swerdlin indicated he was opposed to placing age restrictions on the single-family residence. The Directors concurred with Chairman Swerdlin's continent. The Planning Director confirmed that staff would be reviewing the orientation of Building B, the tree concerns, the single-family design standards and modification to the condition regarding an age limitation on the single-family home. Continuation f H It was moved by Director Jones, seconded by Director Campbell, and unanimously carried that the hearing be continued to the meeting of October 3, 1995. CONSENT CALENDAR 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: AYES: Directors Campbell, Hart, Jones, Nash, and Chairman Swerdlin NOES: None ABSENT: None a. $egular Meeting_of August 15. 1995 CRA Minutes The Minutes of the Regular Meeting of August 15, 1995, were approved as submitted. -4- 9119195 121 The Minutes of the Adjourned Regular Meeting of August 17, 1995, were approved as submitted. 2. RECEIVE AND FILE WARRANTS OF AUGUST 30. 1995 ( 03 0.30) The List of Demands dated August 30, 1995, in the total amount of $370,078.20 was received and filed. 3. RECEIVE AND FILE FINANCE OFFICE'S REPORT OF INVESTMENTS AS OF AUGUST 1995 (350 3Q The Finance Officer's Report of Investments as of August 31, 1995, in the total amount of $1,929,555.29 was received and filed. • • : ► ! �ngel in 1112. 111241 :W7018121:•11 11's As set forth in the Report dated September 19, 1995, from the Director of Engineering and Building, the following Resolution was adopted granting an easement within Lot 25 of Tract 103 to Pacific Bell for undergrounding communication facilities to better serve the Historic Town Center redevelopment project: RESOLUTION NO, CRA 95-9-19-1. GRANTING EASEMENT FOR UNDERGROUND COMMUNICATION FACILITIES TO PACIFIC BELL A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY (CRA) OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, GRANTING AN EASEMENT FOR UNDERGROUND COMMUNICATION FACILITIES TO PACIFIC BELL TELEPHONE COMPANY (PAC BELL) WITHIN LOT 25 OF TRACT 103, SAN JUAN CAPISTRANO, CALIFORNIA 1.CONPARTICIPATIM JUAN CAPISTRANO HOUSING PARTNERS MAUFMAN & BROAD SENIOR AFFORDABLE HOUSING PROJECT) 600.40) Written Communication: Report dated September 19, 1995, from the Deputy Director, recommending that an Owner Participation Agreement be approved for the CRA to provide a loan of $1.55 million to Kaufman & Broad to assist in the financing of their affordable senior housing project, which CRA Minutes -5- 9119195 122 will be paid back to the Agency over a thirty-year period. In exchange for the loan, the applicant will guarantee that the project will set aside 92 of the 112 proposed units for lower and very low income households for a period of 57 years. Mr. Tomlinson made an oral presentation. Public Commgnts: (1) Pauline Leonard, 27589 Brookside Lane, expressed appreciation to staff and the applicant for the changes to the plan in response to concerns expressed at the Planning Commission meeting of August 29, 1995. She questioned whether senior citizens on Social Security could afford the units. She suggested that some of the two-bedroom units be modified to have two equal -size "master suites" so that two seniors could be accommodated more equitably. She expressed concern regarding approving this project in a piecemeal fashion and preferred that it be reviewed in a proper sequence. (2) Al Simmons, 32302 Alipaz Street, Space 135, inquired whether the issue of the bond would relieve the necessity for the CRA loan; expressed concern that the Agency's loan was made at only 5%; and, stressed the difficulty of existing on Social Security. Mr. Simmons urged that the OPA not be approved until the land use was approved and felt that this matter should be agendized as a public hearing item. He expressed concern that the County's statistics are based on incomes for all age groups. Ms. Pendleton indicated that the loan requirement by the CRA would not be relieved by the bonds because the loan provides the developer with necessary gap financing. Mr. Scarborough indicated that the developer would be responsible for paying off the bonds. Mr. Tomlinson explained that the rents are established by 50% of the median income for Orange County based on the number of persons per household. For example, a very -low income rent, including utilities, would be $554 per month. Chairman Swerdlin inquired about utilizing a rental subsidy program provided by HUD. He noted a project in Laguna Beach where tenants pay no more than 30% of their income on housing with the difference spade up by a subsidy from HUD. Barbara Leibold of Stradling, Carlson, Yocca and Rauth, explained that HUD establishes the maximum income for a very -low income person to be $20,700 per year, and low income a maximum of $24,810 per year. Jim Raabe, the City's financial consultant, explained the project's proposed financing, noting that it was structured to protect the CRA's interest. With regard to subsidy programs, Ms. Leibold noted that HUD's Section 8 Certificate program currently has a waiting list of 5,000 persons and that the program may be discontinued. Director Hart felt that this project would serve a certain portion of the seniors in the community but would not address the needs of very -low income persons. He complimented the applicant on the quality of the project. Director Nash concurred, noting that the CRA will lose its set-aside money if it is not allocated. She stated that the project will guarantee affordability for 57 years, noting that most projects guarantee affordability for only 30 years. CRA Minutes -6- 9/19/95 123 She felt that the project would meet the City's standards and the requirements of the HOPE plan. Director Swerdlin continued to express concern that not enough units would be made available for very -low income seniors. Mr. Scarborough recommended that the Board's motion include a specific reference that the OPA would only become effective upon approval of the land use. He noted that a program for rent subsidy was being developed and would be brought to the Board for consideration as part of the housing opportunities program. IMF Adoption of Resolution Approving Owner ParticipationAgreement: It was moved by Director Nash, seconded by Director Hart, that the following Resolution be adopted, with the modification that the OPA would only become effective upon approval of the land use: RESOLUTION NO. CRA 95-9-19-2. APPROVAL OF OWNER PARTICIPATION AGREEMENT (SAN JUAN CAPISTRANO HOUSING A RESOLUTION OF THE SAN YUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, APPROVING AN OWNER PARTICIPATION AGREEMENT WITH THE SAN JUAN CAPISTRANO HOUSING INVESTORS, L.P. AND MAKING CERTAIN FINDINGS The motion was carried by the following vote: AYES: Directors Campbell, Hart, Jones, and Nash NOES: Chairman Swerdlin ABSENT: None CLOSED SESSION (610,85) Finding r Consideration of Off-Ageada Itgms: It was moved by Director Nash, seconded by Director Campbell, and unanimously carried to find that the following item was not available prior to publication of the agenda and consideration was necessary at this time. Approval to Add Item for Discussion in Closed Session: It was moved by Director Nash, seconded by Director Campbell, and unanimously carried that the following item be added to the list of items for discussion in Closed Session: Conference with Legal Counsel regarding the case known as San Juan Capistrano Community Redevelopment Agency vs. Laguna Asphalt. The Board recessed to the Council meeting at 9A7 p.m. and reconvened in Closed Session at 10:50 P.M, for: CRA Minutes -7- 9/19/95 124 1. Conference with Real Property Negotiator per Government Code Section 54956.8 for property known as the Capistrano Depot, 26701 Verdugo Street, with Guy Edwards 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 Parcels Nos. 121-240-020 and 121-240-039, with Tar Development Company as the negotiating party, to consider price and terms of payment; 3. Conference with Legal Counsel, Anticipated Litigation, per Government Code Section 54956.9(b), for significant exposure to litigation in two cases, and Government Code Section 54956.9(c), the initiation of litigation in two cases; 4. Liability Claims per Government Code Section 54956.95, San Juan Partners claimant, against the San Juan Capistrano Community Redevelopment Agency; and 5. Conference with Legal Counsel, Existing Litigation, per Government Code Section 54956.9(a), for the case known as San Juan Capistrano Community Redevelopment Agency vs. Laguna Asphalt. The Agency Secretary was excused therefrom, and the meeting reconvened at 11:36 p.m. BOARD ACTIONS FOLLOWING CLOSED SESSION Mr. Denhalter advised there was no action to report on any of the items. There being no further business before the Board, the meeting was adjourned at 11:36 p.m. to the next regular meeting date of Tuesday, October 3, 1995, at 7:00 p.m. in the City Council Chamber. ATTEST: 5A-VID'SWtRDLIN, CHAIRMAN CRA Minutes Respectfully submitted, 2�1� ZQ�� CHERYL JOkfkW, AGENCY SECRETARY -8- 9119195