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HomeMy WebLinkAboutRDA Minutes 1981-03-18 MINUTES SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY March 18, 1981 Regular Meeting TIME: 7:00 p.m. PLACE: West Orange Avenue Library Auditorium CALL TO ORDER: Chairman Ronald G. Acosta called the South San Francisco Redevelopment Agency meeting to order at 7:08 p.m. ROLL CALL: Present: Chairman Ronald G. Acosta, Vice Chairman Gus Nicolopulos, Members Mark N. Addiego, Emanuele N. Damonte, and Roberta Cerri Teglia Also present: Executive Director/Secretary C. Walter Birkelo; Assistant Secretary Louis Dell'Angela; Herman Fitzgerald, Counsel, Mr. William Anderson, City Finance Director AGENDA REVIEW: Executive Director Birkelo requested the Agency Board to adjourn this meeting of the Redevelopment Agency to 10:30 a.m., March 19, 1981, City Council Conference Room, City Hall, for the purpose of having a joint meeting of Agency Board/Council to take final action on the documents relating to the Gateway Redevelopment project matters on its agenda and on Council's agenda. He indi- cated that there were several items of "wording" in the Owner Participation and Development Agreement still under discussion, and it was believed that they would be resolved prior to offering it for approval and authorization for execution. In accordance with the request of the Executive Director and as there were no objections, Chairman Acosta so ordered. APPROVAL OF MINUTES: Member Teglia moved, seconded by Member Damonte, that the Minutes of the Regular Meetings of February 18, 1981 and March 4, 1981, be approved. Member Addiego requested that future Minutes emphasize that the Redevelopment Agency is a distinct and separate board from the City Council. Motion, as made and seconded, was unanimously carried. PARTICIPATION & DEVELOP- Executive Director Birkelo stated that the Agency Board had re- MENT AGREEMENT BY/AMONG ceived the Staff Report, March 16, 1981, recommending the Agency AGENCY, CITY, & HOMART Board approve the proposed agreement which incorporates the Staff ~ - Report of February 18, 1981, which set forth the concepts used in the negotiations between Homart Development Company and staff. P~"TICIPATION & DEVELOP- In addition, the Board has received the Owner Participation and ~ T AGREEMENT BY/AMONG Development Agreement document with a number of appendices and ~ NCY, CITY, & HOMART exhibits attached thereto. The Executive Director remarked that (Continued) this was not too dissimilar from other developments within a community whereby initial concept of proportionate shares is assigned to public agency and public development based upon relative impacts of the development and general public use of various improvements required. He further related how the City had entered into the negotiations on the basis that the City has very limited funds and was not in a position to pledge City funds and reserves to a project of this magnitude. He explained the cost of improvements, including the East Grad Avenue Overcrossing, Oyster Point Grade Separation, and the use of tax increment funds available to development agencies. The third-party financing for the Agency's proportionate share of various improvements was addressed. Executive Director Birkelo remarked that Homart Devel- opment Company would guarantee such financing; and if third-party sources were not available as required to expedite the project, Homart would advance the money. This will be reimbursed from tax increment funds, estimated to be within a 15-to-20-year period. He further explained the offsite improvements servicing the public and the reimbursement of those funds by tax increment revenues. Executive Director Birkelo pointed out that the agreement was complex because it preceded a number of planning stages which should, ordinarily, be accomplished first. In this case, it is necessary to certify the availability of local funds when application is made to the State of California for $8.33 million in Grade Separa- tion funds and that this agreement is the source of local funding. He further stated that the Public Utilities Commission has given its formal approval to the project but that Caltrans' approval probably could not be completed until June 1981. The document contains some flexibility to accommodate the planning phases not yet accomplished. Executive Director Birkelo addressed the tax increment financing to support the publicly financed improvements. He remarked that SB 1972 specifically declared redevelopment exempt from the pro- visions of Proposition 4 as far as expenditure limitations were concerned. He cautioned that because of the uncertainty, pro- visions were incorporated concerning "what if not available." He explained the provisions available for such financing, i.e., tax increment appropriations by voter approval, the pledging of certain local revenues generated by the project, and pledge of City funds. Executive Director Birkelo reiterated that the document required some minor clarification and changes in "wording"; but that Homart Development Company and staff had met this day, and the suggested changes would be presented to the Agency Board at tomorrow morning's meeting for approval and adoption. 3/18/81 Page 2 REIMBURSEMENT AGREEMENT At the request of the Chairman, Mr. Anderson, Finance Director, B~-~EEN AGENCY & HOMART described how the Reimbursement Agreement provides for repaying £ ELOPMENT COMPANY Homart Development Company for approximately $300,000 in advance funding for the project. The first $120,000 would be repaid without interest. He also pointed out that the Redevelopment agreements contemplated that City will provide the advance funding for Agency's administrative costs to be reimbursed to the City with payment of prevailing rates of interest. GOOD AND WELFARE: Chairman Acosta asked if any one wished to speak on the Redevelopment. No one spoke. ADJOURNMENT: Member Damonte moved, seconded by Member Teglia, and unanimously carried that the meeting be adjourned to March 19, 1981, 10:30 a.m. City Council Conference Room, City Hall. Time of adjournment: 7:30 p.m. APPROVED: Ronald G. Acosta, Chairman South San Francisco Redevelopment Agency R 'ECTFULLY SUBMITTED, C. Walter Birkelo, Executive Director/Secretary South San Francisco Redevelopment Agency The entries of this Redevelopment Agency meeting show the action taken by the Board to dispose of the item. Oral presentations, arguments, and comments are recorded on tape. The tape and documents related to the items are on file in the office of the City Manager and available for ic--ection, review, and copying. 3/18/81 Page 3