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Home My WebLink AboutRDA Minutes 1992-11-18 Chairman John R. Penna M I N U T _E S Boardmembers: Jack Drago Redevelopment Agency Joseph A. Fernekes ' 74 -'"Roberta Cerri Teglia Municipal Services Building Robert Yee Community Room November 18, 1992 NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, that the South San Francisco Redevelopment Agency of the City of South San Francisco will hold a Special Meeting on Wednesday, the 18th day of November, 1992, at 6:30 p.m., in the Municipal Services Building Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: AGENDA REVIEW CONSENT CALENDAR 1. Motion to approve the Minutes of the Regular Meeting of 10/28/92. 5 t./0_~ 2. Motion to confirm expense claims of 11/11/92. ADMINISTRATIVE BUSINESS 3. Proposed E1 Camino Corridor Redevelopment Project Area: a. Resolution approving the Preliminary Plan, ratifying transmittal of documents required by Health & Safety Code Section 33327, establishing the base year, and directing the Executive Director to effect adoption of a plan for the El Camino Corridor Redevelopment Project Area. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO APPROVING THE PRELIMINARY PLAN FOR THE AMENDED EL CAMINO CORRIDOR REDEVELOPMENT PROJECT AREA, RATIFYING SUBMISSION OF THE DOCU- MENTS REQUIRED BY HEALTH & SAFETY CODE SECTION 33327, AND ESTABLISH- ING THE BASE YEAR FOR TAX ALLOCATION PURPOSES b. Resolution designating the City Council as the lead agency for preparation of environmental documents for the El Camino Corridor Redevelopment Project, amendments to the City's General Plan, and amend- ments to the City's zoning ordinance. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO CONSENTING TO THE DESIGNATION OF THE CITY COUNCIL AS THE LEAD AGENCY FOR THE PREPARATION OF ENVIRONMENTAL DOCUMENTATION FOR THE EL CAMINO CORRIDOR REDEVELOPMENT PROJECT, THE AMENDMENTS TO THE CITY'S GENERAL PLAN/AREA PLAN, AND THE AMENDMENTS TO THE CITY'S ZONING ORDINANCE c. Resolution authorizing consultation with businesses, community organizations and residents in the Project Area concerning preparation, adoption and implementation of the Redevelopment Plan for the El Camino Corridor. 11/18/92 Page 1 I II __ ADMINISTRATIVE BUSINESS -- 1 7 5 3.c. Resolution - Continued. A RESOLUTION OF TI-IE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCIS- CO AUTHORIZING CONSULTATION WITH RESIDENTS AND COMMUNITY ORGANIZATIONS IN THE EL CAMINO CORRIDOR REDEVELOPMENT PROJECT AREA 4. Resolution authorizing issuance of up to $11,000,000 in tax allocation bonds for the Gateway Area. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCIS- CO AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED $11,000,000 TAX ALLO- CATION BONDS RELATING TO THE GATEWAY REDEVELOPMENT PROJECT AND AUTHO- RIZING OFFICIAL ACTIONS 5. Resolution approving an amendment to the restated Owner Participation Agreement with Homart Development Corp., and repayment agreement. A RESOLUTION ADOPTING THE 1992 AMENDMENT TO THE AMENDED RESTATED OWNER PARTICIPATION AND DEVELOPMENT AGREEMENT WITH HOMART DEVELOPMENT CORPORATION AND APPROVING THE REPAYMENT AGREEMENT GOOD AND WELFARE CLOSED SESSION 6. Closed Session for the purpose of the discussion of personnel matters, labor relations, property negotia- tions and litigations. ADJOURNMENT Dated: November 12, 1992 ~~/~j,L ~ ~Clerk Redevelopment Agency AGI~NDA ACTION TAKEN CALL TO ORDER: (Cassette No. I) ,,~/tg~ 6:40 p.m. Chairman Penna presiding. ROLL CALL: Boardmembers present: Drago, Fernekes, Teglia, Yee, and Penna. Boardmembers absent: None 11/18/92 Page 2 AG_ENDA ACTION TAKEN ,. 176 --IGENDA REVIEW AGENDA REVIEW Executive Director Annas stated that there were no changes to the Agenda. CONSENT CALENDAR CONSENT CALENDAR 1. Motion to approve the Minutes of the Regular Approved. Meeting of 10/28/92. 2. Motion to confirm expense claims of 11/11/92. Approved in the amount of $834.75. M/S Fernekes/Yee - To approve the Consent Calen- dar. Carried by unanimous voice vote. ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS 3. Proposed El Camino Corridor Redevelopment Proje~ Mayor Penna related: that three members of the Area: Agency had a conflict, one for living close to the area and two for having real estate licenses, and had a. Resolution approving the Preliminary Plan, raft- drawn straws at the last meeting to see who would -- fying transmittal of documents required by Health sit to provide a quorum; Vice Chairmember Roberta & Safety Code Section 33327, establishing the had won on item a., and Boardmember Drago would base year, and directing the Executive Director to sit and vote on items b. and c. effect adoption of a plan for the E1 Camino Cor- ridor Redevelopment Project Area. Mayor Penna left the podium at 6:45 p.m., and did not take part in the discussion or vote on this item. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN Director of Economic & Community Development FRANCISCO APPROVING THE PRELIMI- Costello stated that all of the items would formally NARY PLAN FOR THE AMENDED EL initiate the process for the adoption of the CAMINO CORRIDOR REDEVELOPMENT redevelopment area. She stated that the Planning PROJECT AREA, RATIFYING SUBMISSION Commission had reviewed and adopted the Prelimi- OF THE DOCUMENTS REQUIRED BY nary Plan and the project definition. She proceeded HEALTH & SAFETY CODE SECTION 33327, to described the items at length: it sets up goals and AND ESTABLISHING THE BASE YEAR FOR describes the areas and issues to be looked at while TAX ALLOCATION PURPOSES moving through the development and the necessary steps to adopt it; the three items to be dealt with b. Resolution designating the City Council as the pursuant to Redevelopment Law; that residential had lead agency for preparation of environmental been excluded to not have fears of displacing peo- documents for the E1 Camino Corridor Redevel- pie; a Subcommittee of two Councilmembers opment Project, amendments to the City's Gen and two Planning Commissioners had two meetings eral Plan, and amendments to the City's zoning plus a public meeting with documentation supplied ordinance, interested parties, etc. 11/18/92 Page 3 .. 177 ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS A RESOLUTION OF THE REDEVELOPMENT Discussion followed: that McLellan Nursery is AGENCY OF THE CITY OF SOUTH SAN outside the boundaries and needs the cooperation of FRANCISCO CONSENTING TO THE DESIG the County, and Manager reported that the County is NATION OF THE CITY COUNCIL AS THE eager to include the property; that the property is an LEAD AGENCY FOR THE PREPARATION island, belong~ to the County, and perhaps the City OF ENVIRONMENTAL DOCUMENTATION should begin annexation proceedings; that annex- FOR THE EL CAMINO CORRIDOR REDE- ation proceedings at this time did not meet the VELOPMENT PROJECT, THE AMENDMENTS LAFCO timetable; that even though the property TO THE CITY'S GENERAL PLAN/AREA was included in this City's sphere of influence, the PLAN, AND THE AMENDMENTS TO THE City had to make application for annexation; that the CITY'S ZONING ORDI- City could not provide redevelopment funds unless NANCE the property was annexed; LAFCO will not accept an application until there is a certified EIR; the legal 3. c. Resolution authorizing consultation with business- advisor recommended moving ahead with the rede- es, community organizations and residents in the velopment by July, etc. Project Area concerning preparation, adoption and implementation of the Redevelopment Plan for the M/S Fernekes/Yee - To adopt the Resolution. E1 Camino Corridor. RESOLUTION NO. 14-92 A RESOLUTION OF THE REDEVELOPMENT Carried by majority voice vote, Councilmembers -- AGENCY OF THE CITY OF SOUTH SAN Drago and Penna abstained. FRANCISCO AUTHORIZING CONSULTA- TION WITH RESIDENTS AND COMMUNITY M/S Fernekes/Yee - To adopt Resolutions b. and c. ORGANIZATIONS IN THE EL CAMINO COR- RIDOR REDEVELOPMENT PROJECT AREA RESOLUTION NO. 15-92 RESOLUTION NO. 16-92 Carried by majority voice vote, Councilmembers Teglia, and Penna abstained. Mayor Penna Returned to the Podium. Mayor Penna returned to the Podium at 6:55 p.m. 4. Resolution authorizing issuance of up to $11,000,000 Director of Finance Margolis stated that the Agency in tax allocation bonds for the Gateway Area. was trying to issue bonds in order to repay Homart for advances that came to the Agency during the A RESOLUTION OF THE REDEVELOPMENT period of the construction of the Gateway, and they AGENCY OF THE CITY OF SOUTH SAN FRAN- have been accruing interest without payment. She CISCO AUTHORIZING THE ISSUANCE AND stated that the Agency had previously acted to direct SALE OF NOT TO EXCEED $11,000,000 TAX staff to cap these by trying to sell bonds and estab- ALLOCATION BONDS RELATING TO THE lish a fixed rate, had now restructured the issue, and GATEWAY REDEVELOPMENT PROJECT AND were asking to again go out to bid for $11,000,000, AUTHORIZING OFFICIAL ACTIONS etc. 11/18/92 Page 4 A .~E__N_DA ACTION TAKEN .. aDMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution - Continued. She stated that the bids would be coming in on the 9th of December, and she would come back to the Agency to award sale of the bonds. M/S Fernekes/Yee - To adopt the Resolution. RESOLUTION NO. 17-92 Carried by unanimous voice vote. 5. Resolution approving an amendment to the restated Director of Finance Margolis explained the amend- Owner Participation Agreement with Homart Devel- ment to the OPA with Homart in depth: the bonds opment Corp., and repayment agreement, look to repayment of the outstanding debt in several steps; first to issue bonds; use of the i~crement to A RESOLUTION ADOPTING THE 1992 pay some portion of the interest that then due; to AMENDMENT TO THE AMENDED RESTATED cover the administration costs up to the $150,000 a OWNER PARTICIPATION AND DEVELOPMENT year; and pay the balance of the interest and any AGREEMENT WITH HOMART DEVELOPMENT outstanding principal; and there was a provision to CORPORATION AND APPROVING THE REPAY- issue more bonds to pay the outstanding amount in MENT AGREEMENT one lump sum if the Agency was so able. Boardmember Yee questioned if this item should be postponed until 12/9/92 when we know if we are able to sell the bonds. Director of Finance Margolis stated that it was written at this point to provide a contingency if the bonds are not issued. She believed it was for the Agency to act because the prior agreement says that the increment goes to Homart if you don't issue bonds; and this says the bondholders will get it first. Executive Director Armas stated that the effect date of the agreement is the date the bonds are sold. Boardmember Yee stated that if we did not get the money December 9th, then this agreement will have to be revamped anyway. He questioned why the administrative costs were of second priority, and felt that paying them off should be first priority and then the interest. 11/18/92 Page 5 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution - Continued. Finance Director Margolis stated that if the admin- istrative costs were not paid off they became a loan from the General Fund. Discussion followed: interest accruing to Homart, and their concern over payment; Boardmember Yee felt that the Agency should pay itself off first and then pay the interest, and would therefor vote against this item; decrease in revenue due to the reassessments and on-going appeals which had been considered in the bond projection, etc. M/S Teglia/Fernekes - To adopt the Resolution. RESOLUTION NO. 18-92 Carried by majority voice vote, Boardmember Yee voted no. GOOD AND WELFARE GOOD AND WELFARE -- No one chose to speak. LOSED SESSION CLOSED SESSION 6. Closed Session for the purpose of the discussion of The Agency chose not to hold a Closed Session. personnel matters, labor relations, property negotiations and litigations. M/S Teglia/Fernekes - To adjourn the meeting. Carried by unanimous voice vote. ADJOURNMENT Time of adjournment was 7:07 p.m. 11/18/92 Page 6 AGENDA ACTION TAKEN . 1BO ESPECTFULLY SUBMITTED, APPROVED. ~ "~-...l hn R. Penna~~,,, hairman Barbara A. Battaya, Clerk Redevelopment Agency ~'~e~elovraont~,~ency City of South San Francisco City of South San Francisco The entries of this Agency moeting 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 fde in the Office of the City Clerk and are available for inspection, review and copying. 11/18/92 Page 7