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HomeMy WebLinkAboutRDA Minutes 1997-02-26 ¥otx3~,-~ lA \~M- \4'-I Chairman Joseph A. Fernekes M I N U T E_ S Boardmembers: James L. Datzman Redevelopment Agency ~Eugene R. Mullin 'John R. Penna Municipal Services Building Robert Yee Community Room February 26, 1997 AGENDA ACTION TAKEN CALL TO ORDER: (Cassette No. 1) 7:10 p.m. Chairman Fernekes presiding. ROLL CALL: Boardmembers present: Datzman, Mullin, Penna, Tee and Fernekes. Boardmembers absent: None. AGENDA REVIEW AGENDA REVIEW Executive Director Wilson Requested: - Hear Item No. 5 after the Closed Session. So ordered. CONSENT CALENDAR CONSENT CALENDAR Motion to approve Minutes of the Regular Meeting of Approved. 2/12/97. ~-~u~c.~'~o 2. Motion to confirm expense claims of 2/26/97. 5-~_~-o Approved in the amount of $22,834.72. 3. Resolution approving purchase and sale agreement for Removed from the Consent Calendar for discussion the 616 Linden Ave. property, by Boardmember Mullin for he had a question about page 10 of the agreement, however, Counsel A RESOLUTION APPROVING A PURCHASE Mattas stated the terms will be addressed in Closed AND SALE AGREEMENT FOR 616 LINDEN Session. AVENUE PROPERTY '~'-Lt~'-~ 4. Resolution approving a First Amendment to the Own- Removed from the Consent Calendar for discussion er Participation Agreement for retrofitting the Met- by Boardmember Penna. ropolitan Hotel. A RESOLUTION APPROVING THE FIRST AME- NDMENT TO OWNER PARTICIPATION AGREE- MENT FOR RETROFITTING THE METROPOLI- TAN HOTEL ,-~-L~ ~ 5. Motion to direct staff to prepare and execute a lease Removed from the Consent Calendar by the Execu- with ArtRise for 616 Linden Avenue. tive Director to be heard after the Closed Session. t.4L3'~ M/S Yee/Datzman - To approve the Consent Calen- dar with the exception of Items No. 3, 4 and 5. 2/26/97 Page 1 H ! I AGENDA ACIIQN TAKEN 145 ---CONSENT CALENDAR CONSENT CALENDAR Carried by unanimous voice vote. 4. Resolution approving a First Amendment to the Own- Boardmember Penna stated he had the item removed er Participation Agreement for retrofitting the Met- so he could abstain on the vote. ropolitan Hotel. Boardmember Yee stated the City made a large A RESOLUTION APPROVING THE FIRST AME- contribution some years ago, now the Hotel wants NDMENT TO OWNER PARTICIPATION AGREE- more and he is concerned with such a large amount MENT FOR RETROFITTING THE METROPOLI- of money going to one property. He questioned TAN HOTEL ~o"~ how much of these funds will be the owner's contri- bution. Coordinator of Economic & Community Develop- ment Beyer stated it is $300,000 over budget, but the increase is only $200,000, and none of the funds are from the owner. Discussion followed: Boardmember Yee noted it is a very low interest loan, there will be additional living units and an income increase in revenue and questioned if it would change the repayment plan; Executive Director Wilson stated it is a low interest rate, but a long payment payoff and yes, the revenue is sufficient to cover the additional $200,000; Boardmember Yee questioned the total amount loaned or contributed to the Hotel; with this $200,000, it is $1.5 million; after the City loans the $1.5 million, the property is worth more, yet the property owner is making little contribution to the property, so at what point do we say to the hotel you are on your own; Vice Chairman Mullin noticed a $15,000 reduction is in esthetics and one of our goals is to enhance the area, yet this is being re- duced by $15,000; Mr. Beyer said the windows will be included by negotiation with the contractor; Councilman Yee is concerned in continuing to give the owner money without any contributions from them when they own the building and the City does not; Boardmember Datzman said there are $130,000 of additions listed and if the $15,000 is subject to negotiations, maybe the contract should be looked at again; Mr. Beyer said this is only good for 16 days to hold the bids; Executive Director Wilson stated staff is not involved in the negotiations and will not have more information until the bids are received; the item should be continued. s,,ECESS: Chairman Fernekes declared a recess at 7:25 p.m. 2/26/97 Page 2 AGE_NDA ACTION TAKEN --~I~ETING RECONVENED: Chairman Fernekes reconvened the meeting at 10:27 p.m., after the Council meeting concluded. CLOSED SESSION CLOSED SESSION 6. Closed Session pursuant to GC 54956.8, real proper- The Agency entered a Closed Session at 10:28 p.m. ty negotiations for the lease for 616 Linden Avenue. to discuss the item noticed. RECALL TO ORDER: Chairman Fernekes recalled the meeting to order at 11:12 p.m., all Boardmembers were present, no action was taken and direction was given. 3. Resolution approving purchase and sale agreement for M/S Yee/Mullin - To adopt the Resolution. the 616 Linden Ave. property. RESOLUTION NO. 2-97 A RESOLUTION APPROVING A PURCHASE AND SALE AGREEMENT FOR 616 LINDEN Carried by unanimous voice vote. AVENUE PROPERTY 5. Motion to direct staff to prepare and execute a lease Counsel Mattas related the general terms of the with ArtRise for 616 Linden Avenue. lease: three year lease between the Agency and ~~ ArtRise for $1.00 per year; ArtRise will be required to maintain liability in favor of the City in the -- amount of $I million per year; there will be a sc- hedule of improvements prepared by the Executive Director which reflects the timing of the improve- ments to take place at the ArtRise facility and the responsibility for those improvements. M/S Mullin/Yee - To direct preparation of the lease at 616 Linden Avenue. Carried by unanimous voice vote. M/S Yee/Drago - To adjourn the meeting. Carried by unanimous voice vote. ADJOURNMENT: Time of adjournment 11' 14 p.m. 2/26/97 Page 3 I I I A_G.ENDA ACTION TAKEN I~ESPECTFULLY SUBMI'I'TED, APPROVED. Jos Fernel~, Chairman Barbara A. Battaya, Clerk ~/ R~S~ph A~Fer tecl0veloOmen Redevelopment Agency Agency City of South San Francisco City of South San Francisco The entries of this Agency meeting show the action taken by the Redevelopment Agency to dispose of an item. Oral communications, arguments and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 2/26/97 Page 4