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HomeMy WebLinkAboutRDA Minutes 1985-04-24 MINUTES THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO Regular Meeting April 24, 1985 TIME: 7:00 p.m. PLACE: Community Room, Municipal Services Building CALL TO ORDER: Chairman Richard A. Haffey called the South San Francisco Redevelopment Agency meeting to order at 7:05 p.m. ROLL CALL: Present: Chairman Richard A. Haffey, Vice Chairperson Roberta Cerri Teglia, Member Mark N. Addiego, Member Emanuele N. Damonte, Hember Gus Nicolopulos Also Present: Executive Director/Secretary C. Walter Birkelo, Assistant Secretary Mark Lewis AGENDA REVIEW: Executive Director Birkel.o stated that there is a matter that did not get on the agenda because the meeting was later today to try to make a decision . with respect to it. It has to do with the refinancing of the $6.5 million in redevelopment notes that were sold almost three years ago and are due for payment in about 30 days. I have been waiting for Mr. Jones and Mr. Fitzgerald to come and discuss the procedure relative to that matter, but I would like to have you add that to the agenda, in lieu of Item #7, U. S. Steel Redevelopment Project Report. APPROVAL OF Member Addiego moved, seconded by Vice Chairperson Teglia, that the Minutes MINUTES: of the Special Meeting of February 6, 1985, be approved. Motion as made and seconded was unanimously approved. APPROVAL OF There were no claims presented for approval. BILLS: RESOLUTION TO Assistant Secretary Lewis informed the Board that this is a parallel item APPROVE AWARD with an item on the City Council agenda for tonight. It awards the EIR/EIS OF CONTRACT~ contract to PRC Engineering for the Oyster Point Overpass. There is a FOR EIS/EIR community of staff members which interviewed all of the proposed candidates OYSTER POINT for this work, and after a thorough interview process, we recommend that OVERCROSSING you award the contract to PRC Engineering. TO PRC: Member Addiego and Vice Chairperson Teglia expressed concerns regarding the impact of noise and the noise monitoring. It was decided that this item be held until the City Council meeting discussion and input from the consultants. APPROVAL OF Planning Director Smith stated that this is a precise plan for the second PRECISE PLAN building at Gateway. Staff finds that a finding can be made to approve it -~aMART BLDG. and you have those in your staff report. The applicants and the architects : are here to present it. Staff recommends approval with the conditions as in Exhibit "A." John Aguilar, Homart Development Company: I present for your consideration and, hopefully, approval' the next flagship office tower to be known as 651 Gateway. The proposed building which is 16 stories, 320,000 square feet gross building area which is 100,000 square feet larger than the existing 12 story tower, will serve as initial evidence that the successes that we have achieved cooperatively today between the City and ourselves at Gateway, are continuing in our efforts to revitalize what was once an abandoned steel plant to a premier business park in the Bay Area. We will complete it in the fall of next year. This building, if approved, will be the largest and tallest office building constructed on the Peninsula. The design placement and use of materials in the building features an additional four floors to take advantage of the views, which is one of our best marketing leverages that we have here in South San Francisco at the Gateway. With me tonight is Michael Chow, Senior Designer at Skidmore, Owens and Merrill, who will carry the major portion of the design presentation for the Agency. We have reviewed the staff report and the conditions of the staff report, and with that exception, find that we can agree with all the conditions, and are prepared to start construction the first week in June, if all the approvals are appropriately in place. MICHAEL CHOW: The Master Plan shown here, shows all the future projects, some of which are office buildings, some of which are hotels, but the strong point of the Master Plan is the pedestrian access. The buildings are on either side of a connecting wing, so that people can walk to the hotel and the hotel restaurants; they can walk to office buildings without having to cross traffic or having to lose their way. It also helps to keep the area along the boulevard green, and the area along the frontage road for parking, ~The shape of the building is a symmetrical trapezoid, but it was done for several reasons. We want to create an interesting image from Hwy 101, It allowed us to have a very special facade from Gateway. The glass is a gray glass and all the window frames are going to be the color as shown on the drawing, Discussion followed concerning the use of the existing plaza and the type of trees that will be planted. Randy Anderson of Wilsey & Hamm, and Janet Cochran, Operations Manager of the Gateway responded. It was motioned by Member Addi.ego and seconded by Vice Chairperson Teglia that the Precise Plan be approved, The motion as made and seconded was unanimously carried. REFINANCING Executive Director Birkelo introduced to the Board, refinancing of 6.5 million OF $6.5 MILLION dollars in redevelopment notes we are seeking authorization to sell new notes REFINANCING: to replace those. We have Lora Stovall representing our financial consultants, Bartel Wells, and Ken Jones our ~ond Counsel. I am going to ask Lora to first describe to you what is proposed in the way of the refinancing sale, 4/24/85 Page 2 REFINANCING OF LORA STOVALL, Bartle Wells: As you probably recall from the actions in 1982, $6.5 MILLION there were three year notes issued dated 6/1/82, to come due on 6/1/85. At Y-~-ontinued) the time that the notes were originally issued, the intent was to take the matter for three year terms with long term bonds. Because the actual develop- ment has gone a little bit slower than it was projected at that time, there is not enough tax increment revenues and not enough development on the ground right now to allow that to be possible. There is enough tax increment and source of revenue to allow the notes to be refinanced and to also accomplish several of the other purposes that are the priorities in the agreement between the City and Homart which include repayment of advances to developer, provision of money for the project share of the Oyster Point Interchange and repayment of the substantial sum of money to the City's general fund. Our projection show that if we do another refinancing, which the term we are recommending is three and one-half years, even with minimal development from within that three year period, there would be enough tax increment in place in Order to then proceed with the long term financing. Basically, the recommendation is that the ~2~ency issue a 3½ year note in an approximate amount of $7.1 million, which includes sufficient funds in conjunction with other funds that are already available to pay off the notes and make these reimbursements. It also includes within the principal amount of the notes eighteen months worth if interest, so the first eighteen months of interest that is paid will be paid within the principal amount, the first payment from the tax increment revenues directly would be in November of 1987. We went through a variety of approaches on sizing the note and this is our recommendation which'we have been through with the Staff. KEN JONES, Jones, Hall, Hill & White: We were retained as Bond Counsel by the Agency at the time of the original financing. The action recommended tonight is that the Agency authorize the Secretary of the Agency to execute an cause to be published a notice of sale of bonds with the date for receiving bids being eigher 5/15, 5/22 or 5/29. Mr. Jones also informed the Board that after the passage of Proposition 4, certain court actions and determinations were made that necessitates him to ask the Board to consider a motion which would direct Mr. Birkelo, Secretary of the Agency, to execute and publish the notice and sale of bonds in the form which has already been provided him, and cause the publication to be in the Enterprise Journal at some period of time at least 5 days before the sale date. After that action is taken, if you take it, it is our advice to Mr. Birkelo to refuse it do it, and we will thereupon ask that you authorize a mandate action, Vice Chairperson Teglia motioned to authorize and the Secretary of the Agency to execute the notice of sale in form prepared by Bond Counsel and presented to the Secretary, and cause it to be published in the Enterprise Journal once at least 5 days prior to the sale dat'e. The motion as made was seconded by Member Addiego. Executive Director/Secretary Birkelo stated that it would be appropriate to indicate that, upon the advice of Counsel, he would be unable to comply with the Board's directive. Bond COunsel Jones directed the Board to direct its general.counsel Mr. Herman Fitzgerald to bring this mandate action in Superior Court to compel the Secretary to do his duty. So moved by Vice Chairperson Teglia, seconded by Member Addiego and unanimously carried. 4/24/85 Page 3 GOOD & WELFARE: Chairman Haffey invited anyone from the audience to speak on Redevelopment issues. No one spoke. CESS: Chairman Haffey call a recess at 7:55 p.m. RECONVENE: The Redevelopment Agency Board reconvened its meeting at 10:10 p.m. Chairman Haffey stated that the resolution approving the award of contract for EIR/EIS for Oyster Point Overcrossing to PRC was adopted. ADJOURNMENT: ~lember Addiego moved, seconded by Member Damonte that the meeting be adjourned. The motion as made and seconded was unanimously carried. Time of adjournment: 10:13 p.m. Respectful ly submitted, ~. 'Wal~te~o~~ Executive Di rector/Secretary APPROVED: __ Ri Cha~f~fey, ~ The Redevelopment Agr~-~ff the City of South San Fr~~ Entries of the 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 are available for inspection, review and copying, 4/24/85 Page 4