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HomeMy WebLinkAbout8/2/2000 - STAFF REPORTS (2) MINUTES OF CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY JUNE 7, 2000 A Regular Meeting of the Community Redevelopment Agency of the City of Palm Springs, California, was called to order by Vice-Chairman Reller-Spurgin, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, June 7, 2000 at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Jones, Hodges, Oden, and Reller-Spurgin Absent: Chairman Kleindienst REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on June 2, 2000. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities)- See items on Page 7 of agenda this date. APPROVAL OF MINUTES: It was moved by Oden, seconded by Jones and unanimously carried, that the Minutes of February 16, April 5 & 19, 2000 be approved. PUBLIC HEARING A. 2000-01 CRA BUDGET Recommendation: That the Agency consider the proposed fiscal year budget of 2000-01. Executive Director reviewed the budget and in answer to questions by Agency stated that funds were available in the parking fund to cover the demolition of the Rudnick building; that there were unscheduled capital improvements that will be moving forwarded that are also funded; that the section of Radio Road that needs to be paved is in the budget; that the parking meter plan will be extended for the area downtown; that the light standards for downtown are partially funded in the budget; that the Agency does provide the base for the lights and that the merchants purchase the rest. Vice-Chairman declared the hearing open, there being no appearances, the hearing was closed. Agency Member Hodges stated that the Agency budget has not been fully discussed; that the budget has always held a minor place in consideration of the Council; that the Redevelopment budget is a powerful tool for economic development for the City; that the commission Mr. Lapham has been requesting to oversee the CRA is needed and should be considered by the Agency; that within the budget is the funding for the dump site; that this needs to be reevaluated; that clarification is needed regarding the project, since no discussions have been held. CRA Minutes 6-7-00, Page 2 Executive Director stated that a grant application has been applied for regarding the dump site; that if the Agency's funds are combined with the State grants, a major prime piece of property that is developable will be available within the City; that if the property is reclaimable, it will be a major asset to the City and that staff would like to gain the rewards of the area. Agency Member Hodges stated that for 10 years this same story has been told; that the Agency keeps putting money in the land, and nothing comes of it; that to give additional money, in her opinion, is a waste; that if grants are available for the project, then staff should pursue that avenue; but that it needs to be cleaned up or just left a dump site forever. Executive Director stated that the clean up will cost more than the $50,000 the Agency has available, and will probably cost somewhere around $40 million. Redevelopment Director stated that there are Federal grants and State grants that staff will pursue; that the funding requested is to allow the pursuance of those grants; that engineering studies are needed to include in the grant application; that an engineer's proposal must likewise be included; and that the information needed is beyond what staff can perform and specialists need to be hired. Motion to continue the matter to June 14, 2000 was presented; after which it was moved by Hodges, seconded by Jones and unanimously approved, Kleindienst absent, that the matter be continued to June 14, 2000. PUBLIC COMMENTS: None LEGISLATIVE ITEMS: B. REDAC2 Recommendation: That the Agency approve an agreement with Jerry Ogburn dba Redact for the continuation of the Village of Palm Springs Development Center and the management of six redevelopment project areas located in the downtown corridor, for fiscal year 2000-01 not to exceed $140,000. A----. Motion to continue the matter for two weeks was presented; after which it was moved by Oden, seconded by Hodges and unanimously approved, Kleindienst absent, that the matter be continued to June 21, 2000. C. PALOS VERDES VILLAS SUBORDINATION AGREEMENT Recommendation: That the Agency approve a subordination agreement with the California Housing Finance Agency in connection with a loan to Palos Verdes Villas, a multi-family housing development. A-----. Director of Redevelopment reviewed the staff report and added that assistance is provided to the very low and low income; that the owners are refinancing the project, hence the subordination agreement between the Agency and the parties; that CC& R's are recorded against the property; that the CHAFA documents were not received until this day; that the City Attorney has reviewed the documents; that the regulations are in compliance; and that if the refinancing is not obtained the Agency's CC&R's are not enforceable. CRA Minutes 6-7-00, Page 3 Agency Member Oden stated that the Agency needs to maintain its housing stock. Agency Member Jones questioned if the present owner was the original owner. Director of Redevelopment stated he is not. Agency Member Jones questioned the amount of Agency funding. Director of Redevelopment stated $6.2 million. Agency Member Jones stated the project was never worth that amount; that the project had 13 mechanical liens against the property that were never paid; that the Agency is rewarding these acts with helping to reduce the interest to 4 %%; that the Agency is saying it is ok to default on loans; that the Agency would only lose 20 units; that it is picking up 68 units on the next pending action before the Agency; that he was against this project 5 years ago; that no one took notice of what he said then; and added that the project was doomed from the first day. Agency Member Oden questioned what is the effect if the refinancing is not approved. Director of Redevelopment stated if financing is not obtained the property will go to foreclosure; that staff's intent is to try to maintain the inventory; that the Agency did assist the project in 1992; that the project was required to set aside the housing requirement; that the project was cost effective and that while it is true only 20 units will be lost; that 68 units, if approved, will be in a different project area. Agency Member Oden questioned if compliance was required in each project area or if it could be combined. Redevelopment Director stated that each must maintain its own counts. Agency Member Jones clarified that if the action is approved it is rewarding fraud. Resolution as recommended was presented; after which, it was moved by Oden, seconded by Hodges, and failed by the following vote: AYES: Hodges and Oden NO: Jones and Reller-Spurgin ABSENT: Kleindienst. Motion to continue the matter to June 14, 2000 was presented; after which, it was moved by Oden, seconded by Hodges and carried by the following vote that the matter be continued: AYES: Hodges, Oden and Reller-Spurgin NO: Jones ABSENT: Kleindienst. CRA Minutes 6-7-00, Page 4 D. HERITAGE APARTMENT OWNER PARTICIPATION AGREEMENT Recommendation: That the Agency approve an owner participation agreement with Rose Mihata and Scott Timberlake for the rehabilitation of a 136-unit mature adult apartment complex at 300 South Calle El Segundo for up to $450,000. A402C. Director of Redevelopment reviewed the staff report. Agency Member Oden questioned if the upgrades to the parking lot and pool were included in the agreement. Director of Redevelopment stated they are included; that there are two separate lists; that in the master list priorities of health and safety are listed. Agency Member Oden stated that this is a good effort on the part of the Agency and the owner to join in a partnership; and added that it is a step in the right direction. Agency Member Jones stated that the agreement is a good one; that units are added to the housing stock and that this deal is better than the last one. Agency Member Reller-Spurgin stated that this is a senior complex; that Ms. Mihata is making efforts to improve the housing for the seniors and does have a general concern for the residents. Resolution 1100 as recommended was presented; after which, it was moved by Jones, seconded by Oden and unanimously approved, Kleindienst absent, that R1100 be adopted. ADJOURNMENT There being no further business, Vice-Chairman declared the meeting adjourned. PATRICIA A. SANDERS Assistant Secretary MINUTES OF CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY June 14, 2000 An Adjourned Regular Meeting of the Community Redevelopment Agency of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, June 14, 2000 at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Jones, Hodges, Oden, Reller-Spurgin, and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on June 9, 2000. PUBLIC HEARING A. 2000-01 CRA BUDGET Recommendation: That the Agency consider the proposed fiscal year budget of 2000-01. Redevelopment Director stated that at the last discussion there were a number of concerns; that one of the issues was timeliness of the budget; that the budget is ever changing; that the Agency does require revisions; and that there is a narrative submitted with a description of each of the capital projects. Agency Member Oden questioned if the proposed lights for the downtown will be the same as the current lights. Redevelopment Director stated that all the lighting standards are the same; that the funding in the budget indicates the cost for the bases and foundations; that merchants purchase the standards; that there are some places that will require the Agency to place the lights, due to the Agency owning the land; and that there is some funding designated for palm tree lighting. Agency Member Hodges questioned if the Agua Caliente Band of Cahuilla Indians Who own property have been approached. Redevelopment Director stated that the property owners will be contacted; and that the standards are not placed on vacant land, nor are the foundations placed until the property owner pays for the standard. Director of Downtown Development stated that the program is two years old; that participation has been good; and that the property owner does pay for the standards before the Agency puts in the foundations. Chairman Kleindienst questioned if the lighting was sufficient for safety. CRA Minutes 6-14-00, Page 2 Redevelopment Director stated that the lighting did provide a feeling of security for the residents and for tourists; that the program is well received; that there are some areas that would like to be a part of the program but do not have the conduit in place, i.e. Willows; that banners and the like can be placed on the standards and that the City does control the banners as to content; that the next capital item is the clean up of the dump site; that in order to clean the property, engineering plans will need to be submitted which would identity the contamination and a clean-up plan; that there are tenants that are interested in the site, mostly for big box retailing. Agency Member Jones questioned the last study performed on the site. Redevelopment Director stated that the last study estimated a full clean-up for $7-8 million; that now the estimate is well over $10 million; and that is only for a partial clean-up; that the intent is to identity what has to be removed, get it out, and leave the rest; that the target area is 12 acres; and that grant opportunities are being looked at. Agency Member Jones questioned if there was a legal closure of the dumpsite. Redevelopment Director stated it was a clean closure; that it may be that the edge could be lined, and the rest of the site be left intact; and in answer to questions by Agency stated that the cost would partially be funded by the Agency, grants requested from the State and Federal levels; that there will also be a negotiated sales price; that the result could be a revenue stream of $700- 800,000 in sales tax per year; that the property did cost the Agency $3.5 million; that interest has been expressed in purchasing the property; that the request from Agency funds is $50,000 to fund the feasibility study; that if we can clean it up, the benefit to the City will be everlasting. Director of Finance & Treasurer stated that there will be an insurance settlement regarding the fire at Palm Canyon Theatre; that electric and water damage occurred; that the fountain was also affected; and that embers fell in the open trenches and damaged the electric and water lines. Director of Downtown Development reviewed plans for the tree wells along the downtown corridor; and added that the some of the areas of the sidewalk are pinched and that the walkways will be modified to widen the areas. Mayor declared the hearing open. Howard Lapham, Palm Springs, stated that the budget document is confusing; that amendments are being made as the document is reviewed; that when all the figures are added up, the sums do not equal the balance; that a committee is needed to help guide the Redevelopment Agency; that some projects never materialized; that an oversight committee would be able to review the projects and make recommendations to the Agency; that the budget seems fragmented and that the budget process should be changed back to the process where the expenditures are reviewed in detail. There being no further appearances, the hearing was closed. CRA Minutes 6-14-00, Page 3 Agency Member Hodges stated that there was no more clarification during this review than the last review; that she will approve the budget, but would like the $50,000 for the dumpsite deleted. Agency Member Reller-Spurgin questioned if the funding could be approved contingent on approval of additional grants. Assistant City Manager stated that the matter could be continued to the next meeting for further information. Resolution 1101 as recommended was presented; after which, it was moved by Hodges, seconded by Oden and carried by the following vote that R1101 be adopted: AYES: Hodges, Oden, Reller-Spurgin and Kleindienst NO: Jones. PUBLIC COMMENTS: Dan Olivia, Best, Best and Kreiger, stated that as a representative of the owner for item B he would like the Agency to consider approval and added that there have been delinquencies in the complex; that CHAFA is working on getting the complex fully rented; that the approval of the subordination agreement will allow restructing of the loan and lower the payments; that if the Agency does not approve the agreement, foreclosure will occur; that the apartments will be off the tax roles, that the client will lose equity; that the City will lose low/moderate housing credit and tax increment; that approval of the agreement does not place the Agency in any worse condition and recommended approval. LEGISLATIVE ITEMS: B. PALOS VERDES VILLAS SUBORDINATION AGREEMENT Recommendation: That the Agency approve a subordination agreement with the California Housing Finance Agency in connection with a loan to Palos Verdes Villas, a multi-family housing development. A402C. Director of Redevelopment reviewed the staff report and recommended approval. Agency Member Oden questioned if the action was not approved, what effect on housing stock would occur. City Attorney stated that if the units are no longer restricted, it cannot be counted; that when the units are restricted, they become subject to the housing program and would potentially count. Agency Member Jones stated it is not clear why so much assistance was given to this project; that it is 25-30% vacant; that the density has risen but this group still cannot make its payments; that the pro ratio share per unit was too high and that the matter should not be approved. CRA Minutes 6-14-00, Page 4 City Attorney stated that the subsidies must be justified for the number of units involved; that the discussion with the Council at time of approval was to help the housing program; that the general area was in economic difficulty; that the new program was to help the entire area; that it was new construction; that the project moved ahead with about 20 units being restricted; that the reality is, if the property is foreclosed, the restrictions will go away; and that the City will end up without the stock in its acquisitions; that in the end the Federal government has first interest; that the only way the program works is to let HUD or the State be first interest and the City second; and that approval of the matter allows the City to stay in the same position it is currently in. Agency Member Hodges stated that the previous Council approved a project at a time when there was no construction activity in Palm Springs; that it was a beautiful project and was to be a spur to the area and was a good project for a devastated area. Resolution 1102 as recommended was presented; after which, it was moved by Oden, seconded by Hodges, and carried by the following vote that R1102 be adopted. AYES: Hodges, Oden, Reller-Spurgin and Kleindienst NO: Jones. ADJOURNMENT There being no further business, Chairman declared the meeting adjourned. PATRICIA A. SANDERS Assistant Secretary MINUTES OF CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY June 21, 2000 A Regular Meeting of the Community Redevelopment Agency of the City of Palm Springs, California, was called to order by Chairman Kleindienst, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, June 21, 2000 at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Agency Members Jones, Hodges, Oden, Reller-Spurgin, and Chairman Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on June 16, 2000. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 7 of agenda this date. APPROVAL OF MINUTES: It was moved by Oden, seconded by Hodges and unanimously carried, that the Minutes of May 17 & 31, 2000 be approved. PUBLIC HEARING: None PUBLIC COMMENTS: Jim Stuart expressed support for a CRA oversight committee; and added that there is a lot of good talent in the Community to work with and a lot of issues and ideas to be discussed. LEGISLATIVE ITEMS: A. Not Used B. REDAC2 On June 7, 2000 Agency continued consideration of approval of an agreement with Jerry Ogburn dba Redact for the continuation of the Village of Palm Springs Development Center and the management of six redevelopment project areas located in the downtown corridor, for fiscal year 2000-01 not to exceed $140,000. A4234. Director of Redevelopment reviewed the staff report, no further report was given. Resolution 1103 as recommended was presented; after which, it was moved by Oden, seconded by Hodges, and unanimously carried that R1103 be adopted. CRA Minutes 6-21-00, Page 2 ADJOURNMENT There being no further business, Chairman declared the meeting adjourned. PATRICIA A. SANDERS Assistant Secretary