HomeMy WebLinkAboutRDA Minutes 2007-06-13
MINUTES
REDEVELOPMENT AGENCY
OF THE
CITY OF SOUTH SAN FRANCISCO
REGULAR MEETING
WEDNESDAY, June 13, 2007
MUNICIPAL SERVICE BUILDING
COMMUNITY ROOM
33 ARROYO DRIVE
CALL TO ORDER
7:01 p.m.
(Cassette Tape No.1)
Absent:
Boardmembers Addiego, Fernekes and
Matsumoto, Vice Chairman Gonzalez and
Chairman Garbarino
None
ROLL CALL
Present:
AGENDA REVIEW
No change.
PUBLIC COMMENTS
None.
CONSENT CALENDAR
1. Motion to approve the Minutes of May 9, 2007
2. Motion to confirm expense claims of June 13, 2007
3. Motion to approve Lease agreement between the City of South San Francisco and
Sitike Counseling Center, 306 Spruce Avenue - Pulled for discussion by
Councilmember Addiego
DISUCSSION
4. Motion to approve Lease agreement between the City of South San Francisco and
Sitike Counseling Center, 306 Spruce Avenue
Sitike Director Rhonda Ceccato spoke about the lease agreement with Sitike. She exercised
the lease option to renew for five years. Staff has recommended increases of 5% at years 3, 4
and 5. She asked Council to consider changing the increase from 5% to 3%, and/or
graduated 3%, 4% and 5% in those last three years. She asked for another three year option
to be added at the end of the five years.
Agency member Addiego asked the size of the space. Ms. Ceccato said the space is about
5,000 square feet. He felt a 5% increase every year is a significant amount on the $1.25 sq.
ft. rental now paid. He asked staff to consider other options. He was inclined to decline the
idea of the 5%, preferring a 3% increase.
In response to Agency member Fernekes question, Ms. Ceccato clarified that the request is
for a flat 3% at years 3, 4 and 5, with an option for three additional years. Chairman
Garbarino also asked for clarification on the Option request.
Agency member Addiego asked about the impact to the City for the 3% vs. 5% increase.
Finance Director Steele cited the figures that would be revenue to the Redevelopment
Agency. Agency member Addiego stated the RDA is flush with funds.
City Attorney Mattas presented the report and asked for direction from the Agency. He
stated that Ms. Ceccato was asking for a unilateral option for three additional years, not a
mutual consent situation.
Vice Chairman Gonzalez preferred at 4% increase for three years. Agency member Addiego
asked questions of staff concerning the factors involved.
Assistant City Manager Marty Van Duyn said that redevelopment agencies by policy are not
supposed to discount rent, but rather to get market rate as the minimum, stating this proposed
agreement strikes a balance, with no proposed rent for two years. He explained the process
by which this rate was recommended. Staff believes this to be a reasonable proposal and
does not recommend extending the lease term. Mr. Van Duyn also mentioned the City's
$10,000 per year subsidy to Sitike.
Agencymember Addiego asked for clarification as to whether the Agency could allow below
market rate rent. City Attorney Mattas expressed the subsidy does not bring the City into an
improper level, and he believed that the rates of 3%, 4% or 5% would be fine. He added the
option ties up the property, and the agreement can be extended at a later date.
Agency member Matsumoto stated that Sitike does excellent work and will support staff s
recommendation.
Motion-Matsumoto/Second-Fernekes: To approve the Lease agreement between the City
of South San Francisco and Sitike Counseling Center, 306 Spruce Avenue; unanimously
approved by voice vote.
Motion-Addiego/Second-Fernekes: to approve Items 1 and 2 of the Consent Calendar;
unanimously approved by voice vote.
RECESS
7:16 p.m.
RECONVENED REDEVELOPMENT AGENCY AS PART OF THE PUBLIC HEARING
SECTION OF THE REGULAR CITY COUNCIL MEETING
Submitted by:
J-i.-o 62 j7A~J'~-
Flo Derby, Clerk -v~'(J
City of South San Francisco
Approved:
~~1~
City of South San Francisco
REGULAR REDEVELOPMENT AGENCY MEETING
MINUTES
JUNE 13,2007
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