95-1107_CRA_Minutes_Regular Meeting135
NOVEMBER 7, 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 7:23 p.m. in the City Council Chamber.
ROLL CALL 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.
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Pranosal.
Consideration of a request from Bobby Kinoshita Investment Enterprises, L.P., to exchange
three Original Promissory Notes issued in March 1991 for purchase of the Kinoshita Farm
land, for one Replacement Note in the amount of $4,080,246.64 with the same terms and
conditions of the Original Notes. The Original Notes were issued to the Yasuo Kinoshita
Family Trust, the Yasuo Kinoshita Children's Trust and Yasuo Kinoshita. The Replacement
Note would be issued to Bobby Kinoshita Investment Enterprises, L.P., which was formed
by the three noteholders. Bobby Kinoshita Investment Enterprises would be responsible for
allocation of payments among the original noteholders.
Applicants:
Bobby Kinoshita Investment Enterprises, L.P.
2908 Carta Taza
San. Clemente, CA 92673
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Written Communication:
Report dated November 7, 1995, from the Finance Officer, recommending that the
Replacement Note be issued in favor of Bobby Kinoshita Investment Enterprises, L.P.
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 Approving Issuance of Replacement Note:
It was moved by Director Jones, seconded by Director Hart, that the following Resolution
be adopted:
RESQLUTION95-11-7-1. APPROVINGRE E T
P&QNUSSORY NOTE - BY KINOSHITA INVESTMENT
ENTERPRISES—L.P. - A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING
AND AUTHORIZING THE EXECUTION OF A REPLACEMENT
PROMISSORY NOTE IN FAVOR OF BOBBY KINOSHITA
INVESTMENT ENTERPRISES, L.P., A CALIFORNIA LMTED
PARTNERSHIP
The motion carried by the following vote:
AYES: Directors Campbell, Hart, Jones, Nash, and Chairman Swerdlin
NOES: None
ABSENT: None
The Agency Chairman was authorized to execute the Replacement Note.
Director Jones advised he would abstain on this item due to its proximity to his residence/business.
Proposal:
Consideration of the sale of the Capistrano Depot property to Manna Station, Inc. in an "as
is" condition with no contingencies in the amount of $860,000, including a condition of sale
for an interior and exterior facade easement to protect the historic buildings. The proposed
Purchase Agreement requires the buyer to submit a downpayment of $450,000 upon the close
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of escrow, with the Agency to finance the remaining $410,000 at 9% interest for a three-year
period. The property consists of 1.4 acres, a 12,000 -square -foot building and 99 parking
spaces.
Applig
Manna Station, Inc.
P. O. Box 97
Laguna Beach, California 92652
Written Communication:
Report dated November 7, 1995, from Cassandra Walker, Community Development
Administrator, recommending that the Council approve the sale of the Capistrano Depot to
Manna Station, Inc., based on the terms set forth in the Purchase Agreement and Escrow
Instructions executed on October 18, 1995. The report noted that the Agency had been
involved in two previous transactions, neither of which had been successfully concluded.
Cassandra Walker, Community Development Administrator, made an oral presentation. She
recommended that since a written threat of litigation had been received, the Board should
adjourn the Hearing to a Closed Session to discuss the threat of litigation and then reconvene
to take action on the Purchase and Sale Agreement.
Public Hearing:
Notice having been given as required by law, Mayor Nash opened the Public Hearing, and the
following person responded:
(1) Carlos Negrete, 27422 Calle Arroyo, questioned the cost of the land in this
transaction apart from the building. He felt that the City should not be selling the
portion of the land comprised of 99 spaces. He inquired whether the offer to Manna
Station included an estimate for cost of potential litigation.
Mr. Scarborough advised that the Depot property is located on one parcel of land, including
the 99 parking spaces, which has always been listed in the City's negotiations with prospective
buyers of the property. Mr. Denhalter stated that the cost of litigation has not been
determined since a lawsuit has not yet been filed.
There being no further response, Mayor Nash closed the public testimony and adjourned
deliberation on this item to a Closed Session following completion of the City Council
agenda.
Following Closed Session, the Board reconvened the public hearing and adopted the
following Resolution approving the sale of the Capistrano Depot to Manna Station, Inc.,
based on the terms set forth in the Purchase Agreement and Escrow Instructions executed on
October 18, 1995, but excluding the indemnity provisions requested by the Buyer. The
Executive Director was authorized to conclude the sale.
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138
Adoption of Resolution Approving the Purchase Agreement,and Escrpw Instructions
for the Capistrano Depot:
It was moved by Director Swerdlin, seconded by Director Hart, that the following Resolution
be adopted as amended to exclude indemnity provisions:
RESOLUTION NO. CRA 95-11-7-2. APPROVING PURCHASE
AGREEMENT AND ESCROW INSTRUCTIONS FOR THE SALE OF
PROPERTY_ LOCATED AT_ 26701 VERDjjQQ STREET TQ MANNA
TATI N - A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING THE
PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS FOR
CERTAIN PROPERTY WITHIN THE SAN JUAN CAPISTRANO
CENTRAL REDEVELOPMENT PROJECT AREA TO MANNA
STATION, INC.
The motion carried by the following vote:
AYES: Directors Campbell, Hart, Nash, and Chairman Swerdlin
NOES: None
ABSTAIN: Council Member Jones
ABSENT: None
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Proposal:
Consideration of a proposed lease with Paulette C. Wattenburg and Eleanor V. Wattenburg
for the Little Hollywood property at 26571 Ramos Street, at a rent of $387.50 per month.
Applicants:
Paulette C. and Eleanor V. Wattenburg
Written Communication:
Report dated November 7, 1995, from the Finance Officer, recommending that the Agency
enter into a one-year lease with Paulette and Eleanor Wattenburg for the property at a rent
of $387.50 per month.
Ms. Pendleton made an oral presentation.
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Public Hearing:
Notice having been given as required by law, Chairman Swerdlin opened the Public Hearing,
and the following person responded:
(1) The applicant, Paulette Wattenburg, expressed appreciation to the Agency for offering
her the lease.
There being no further input, the hearing was declared closed with the right to reopen at any
time.
Approval of Lease for Residential Unit in Little Hollywood:
It was moved by Director Jones, seconded by Director Campbell, and unanimously carried
that the Residential Lease be approved for a one-year period with Paulette C. Wattenburg and
Eleanor V. Wattenburg for the property located at 26571 Ramos Street, at a rent of $387.50
per month. The Executive Director was authorized to execute the Iease on behalf of the
Agency.
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It was moved by Director Hart, seconded by Director Campbell, 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
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The Minutes of the Regular Meeting of October 3, 1995, were approved as submitted.
The List of Demands dated October 11, 1995, in the total amount of $166,708.91 and the List
of Demands dated October 25, 1995, in the total amount of $4,785.63 were received and
filed.
3. RECEIVE AND FILE CASjj BALANCES FOR SEPTEMBER 1995 (330.50)
The Finance Officer's Report of Cash Fund Balances for the month of September 1995 in the
total amount of $21,339.81 was received and filed.
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140
Rilyal Zli MIXOMIX
CONTRACT FOR MANAGEMENT SERVICES FOR RV STORAGE YARD
(FULTON & KAY SHAVE (600,401
Written Communiggion:
Report dated November 7, 1995, from the Finance Officer, recommending that a one-year
agreement with Fulton and Kay Shaw for management services at the RV Storage Yard
facility be approved at $750 per month. The agreement contains the same provisions as past
agreements, with the addition of insurance specifications.
Approval of Agreement:
It was moved by Director Nash, seconded by Director Hart, that the Agreement for
Management Services be approved for the one-year period ending November 7, 1996, with
Fulton and Kay Shaw for management of the RV Storage Yard at a compensation of $750
per month. The Chairman was authorized to execute the Agreement on behalf of the Agency.
The motion was carried by a 4-0-1 vote, with Director Jones abstaining due to a potential
conflict of interest related to the proximity of his residenceibusiness to the subject property.
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Written Communication:
Report dated November 7, 1995, from Cassandra Walker, Community Development
Administrator, recommending that the request from Linda Castle of Lawrence Commercial
Real Estate, broker for the portion of the Home Furnishing Center owned by Brent Ogden,
be approved to permit the leasing of space in the center to Gourmet Bagel Co. as a non-
conforming use. This recommendation was based on the present difficult economic
atmosphere and the inability of the center to lease space to home furnishing uses.
Cassandra Walker, Community Development Administrator, noted that the Agency received
no negative responses to this request.
Approval of Non -Conforming Use for Home Furnishing Center:
It was moved by Director Nash, seconded by Director Jones, and unanimously carried the
request be approved to permit the leasing of space in the center to Gourmet Bagel Co. as a
non -conforming use.
CLOSED SESSION (610.85)
The Board recessed to the Council meeting at 7:35 p.m. and reconvened in Closed Session at 8:55
p.m. for:
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;
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2. Conference with Real Property Negotiator per Government Code Section 54956.8 for
property known as Parcels Nos. 121-2.40-020 and 121-240-039, with Tarr Development
Company/Solag as the negotiating parties, to consider price and terms of payment;
3. Conference with Real Property Negotiator per Government Code Section 54956.8 for
property located at the Old Elementary School site at the corner of El Camino Real and
Acjachema, Parcels A and B on Parcel Map 80-853, and related parcels, with Capistrano
Unified School District as the negotiating party, to consider price and terms of payment;
4. Conference with Real Property Negotiator per Government Code Section 54956.8 for
property known as the Historic Town Center generally bordered by Ortega Highway to the
north, Camino Capistrano to the west, Yorba Street to the south, and the property lines of
commercial properties fronting Del Obispo Street to the east, with Chang as the negotiating .
party, to consider price and terms of payment; and
5. 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.
The Agency Secretary was excused therefrom, and the meeting reconvened at 10:20 p.m.
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Sale of the Capistrano Depot
It was moved by Director Swerdlin, seconded by Director Hart and unanimously carried with
Director Jones abstaining to adopt a resolution approving the Purchase and Sale Agreement, but to
exclude the indemnity provisions requested by the Buyer. (see Public Hearing Item).
Mr. Denhalter advised that 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 10:21 p.m. to the
next regular meeting date of Tuesday, November 21, 1995, at 7:00 p.m. in the City Council Chamber.
Respectfully submitted,
y�
CHERYL JOHNS , AGENCY SECRETARY
ATTEST:
DAVID SWERDLIN, CHAIRMAN
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CITY OF SAN JUAN CAPISTRANO
THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, HEREBY GIVES
NOTICE THAT A SPECIAL MEETING WILL BE HELD ON FRIDAY,
NOVEMBER 17, 1995, AT 2:00 P.M. IN THE SAN JUAN CAPISTRANO CITY
COUNCIL CHAMBER FOR THE PURPOSE OF HOLDING A CLOSED
SESSION REGARDING THE FOLLOWING:
1. Conference with Real Property Negotiator pursuant to Government Code Section
54956.8, for property located at the Capistrano Depot, 26701 Verdugo Street, with
negotiation parry, Guy Edwards, to consider price and terms of payment.
2. Conference with Legal Counsel - Anticipated Litigation, pursuant to Government
Code Section 54956.9(b), for significant exposure to litigation in 2 cases and
Government Code Section 95456.9(c), the initiation of litigation in 2 cases.
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DAVID SWEADLIN, CHAIRMAN
DATED: NOVEMBER 16, 1995
STATE OF CALIFORNIA )
COUNTY OF ORANGE } SS
CITY OF SAN JUAN CAPISTRANO )
I HEREBY CERTIFY that a copy of the Notice of Special Meeting of the City
Council of the City of San Juan Capistrano, California, to be held on Friday, November 17, 1995, at
2:00 p.m., was faxed not less than twenty-four hours before the hour of 2:00 p.m., Friday,
November 17, 1995, to: The Register; The Capistrano Valley News; and, the Los Angeles Times.
The Notice of Special Meeting was accepted by telephone call from Carole Jacklin not less than
twenty-four hours before the hour of 2:00 p.m., Friday, November 17, 1995, by:
David Swerdlin, Chairman
Collene Campbell, Director
Wyatt Hart, Director
Gil Jones, Director
I declare under penalty of perjury that the foregoing is true and correct.
"0' ja"':ar
Cheryl Johnson, enc ecretary