94-0524_CC_Minutes_Adjourned Regular Meeting349
MAY 24,1994
ADJOURNED REGULAR MEETING OF THE CITY COUNCIL
OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA
The Adjourned Regular Meeting of the City Council of the City of San Juan Capistrano, California was called to order
by Mayor Campbell at 11:02 a.m. in the City Council Chamber, to conduct a joint public hearing with the Community
Redevelopment Agency to consider the Disposition and Development Agreement for sale of the El Peon Complex.
ROLL CALL: PRESENT: Collene Campbell, Mayor
Carolyn Nash, Mayor pro tem
Gary L. Hausdorfer, Council Member
Gil Jones, Council Member
Jeff Vasquez, Council Member
ABSENT: None
STAFF PRESENT: George Scarborough, City Manager; Richard K. Denhalter, City Attorney; Cheryl Johnson, City
Clerk; Cynthia L. Pendleton, Director of Administrative Services.
None.
PUBLIC HEARINGS
1. JOINT PUBLIC HEARING - PROPOSED DISPOSITION AND DEVELOPMENT AGREEMENT
FOR EL PEON COMPLEX LOCATED AT 26822 ORTEGA HIGHWAY AND 31752-31762
CAMINO CAPISTRANO (SAN JUAN PARTNERS) (CONTINUED FROM MAY 17. 1994)
40( 0.20)
P ose:
The meeting was continued from May 17, 1994, to allow sufficient time for review of the proposed Disposition
and Development Agreement.
Written Communications:
(1) Report dated May 24, 1994, from the Director of Administrative Services, providing a summary of
previous Council actions relating to the proposed sale of the El Peon Complex, and advising that the
negotiated Disposition and Development Agreement provided a purchase price of $1,105,000 for the
property in an "as is" condition. The cost of improvements committed to by San Juan Partners for the
rehabilitation and economic revitalization of the complex was estimated at $686,550. A facade
easement had been included in the Agreement in recognition of the need to protect the architectural
theme and character. The existing legal non -conforming use relating to parking had also been identified
in the Agreement The report forwarded the Disposition and Development Agreement, including staff
comments, for Council review and comment.
(2) Exhibits A - J to the Disposition and Development Agreement.
Staffs Recommended Chanties:
The Director of Administrative Services reviewed the following additional changes requested by staff.
Page 14, Section D, second paragraph, second sentence - Ms. Pendleton read the recommended change.
Following discussion, it was the consensus of Council that the wording in the Agreement not be changed.
Adjourned City Council Minutes -1- 5/24/94
350
Page 15, first paragraph - Ms. Pendleton read the recommended change. Discussion ensued regarding the
possible interpretation that pre -approvals were being given and the need to retain the wording relating to not
denying plans solely because they varied from the facade easement.
(1) Steve Nordek, 31786 Camino Capistrano, San Juan Partners, advised that there was no intent to obtain
any pre -approvals. The wording was intended to alert Council that in order to develop the building
there would modifications. He further stated their intent to preserve the theme and charm of the
buildings while making them economically feasible.
(2) Ken Steelman, attorney with Corbett & Steelman, 18200 Von Karmen, Irvine, stated there was no
objection to revising the language to clearly indicate that pre -approvals were not being given and that
plans would be submitted and approved consistent with the architectural theme and would go through
the regular process.
Following discussion, there was a Council consensus with Mr. Steelman's wording, as follows, beginning with
the second sentence: Delete the words "The parties acknowledge that". The remainder of the paragraph will read
"The contemplated plans for modification of the facade to be submitted are required to enhance and retain the
architectural theme of the Property. Furthermore, it is understood that the plans shall not be denied solely
because the plans may vary from the facade easement."
Page 27, Number 5 - Council concurred with the staff recommendation to modify wording as read by Ms.
Pendleton.
Page 28, concluding paragraph Number 6 from page 27 - Council concurred with the staff recommendation to
remove wording as read by Ms. Pendleton.
Page 20, Number III. A. - Council concurred with the staff recommendation to add a sentence at the end of the
paragraph relating to submittal of a detailed statement of repairs.
Exhibit I - Council concurred with the staff recommendation to add language relating to provision of a list of
sub -tenants of Michael J. and Nancy Damold prior to close of escrow
Page 44, Section E - Council concurred with the staff recommendation to remove wording as read by Ms.
Pendleton.
Developer's Recommended Chances:
Mr. Steelman addressed the issue of cleanup and repair of the borings should escrow not be completed and
advised that the indemnification wording requested by staff had been inserted on Page 22, Number 214.
Page 21, first paragraph, fourth sentence, additional wording was included regarding plan checks of seismic
retrofitting. Mr. Nordeck advised that the wording relating to a delay in excess of 30 days not being included
in the time set forth to complete the seismic retrofitting had been added because there was concern that seismic
plan checking may be delayed due to circumstances beyond their control.
Page 29, Number III. A. and Page 30, Section C, referred to a lot or parcel split. Mr. Nordeck advised that a lot
or parcel split may be necessary to acquire financing for the proposed restaurant in order that the potential
indebtedness not be encumbered against the entire property.
Mr. Steelman suggested the addition of item (d) on Page 8, Number 6, regarding security and rent deposits which
should be either pro -rated or charged to the Agency as a credit.
Council concurred with the changes recommended by the Developer. Council Member Jones expressed concern
regarding the unknown cost for the required termite report. Mr. Nordeck stated that the termite report was
mandated by law and was the responsibility of the Agency through escrow.
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351
Public Hearing:
' Notice having been given as required by law, Mayor Campbell opened the public hearing and, there being no
response, closed the Hearing with the right to re -open at any time.
ApRroval of Disposition and Development Agreement. as Amended:
It was moved by Council Member Jones, seconded by Council Member Hausdorfer that the following Resolution
approving the Disposition and Development Agreement, as amended, for the sale of the Downtown Commercial
Complex (El Peon/Cafe Capistrano) to San Juan Partners, be adopted:
RESOLUTION NO. 94-5-24-1. APPROVING DISPOSITION AND
DEVELOPMENT AGREEMENT FOR THE SALE OF PROPERTY LOCATED
AT 26822-26842 ORTEGA HIGHWAY AND 31752-31762 CAMINO
CAPISTRANO TO SAN JUAN PARTNERS_ (EL PEON COMPLEXI - A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, APPROVING THE DISPOSITION AND
DEVELOPMENT AGREEMENT FOR THE SALE OF CERTAIN PROPERTY
WITHIN THE SAN JUAN CAPISTRANO CENTRAL REDEVELOPMENT
PROJECT AREA TO SAN JUAN PARTNERS (EL PEON COMPLEX)
The motion carried by the following vote:
AYES: Council Members Jones, Hausdorfer, Nash, Vasquez and
Mayor Campbell
NOES: None
ABSTAIN: None
' ABSENT: None
Staff was directed to open a 60 -day escrow for the sale of the property. The Executive Director of the Agency
was authorized to conclude the sale.
CLOSED SESSION
None.
ADJOURNMENT
There being no further business before the Council, the meeting was adjourned at 12:05 p.m., to the next regular meeting
date of Tuesday, June 7, 1994, at 7:00 p.m. in the City Council Chambers.
Respectfully submitted,
CHERYL JOHN N, CM CLERK
ATTEST:
GKILENE C BELL, MAYOR
Adjourned City Council Minutes -3- 5/24/94