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HomeMy WebLinkAboutRDA Minutes 1994-10-26 Chairman Joseph A. Fernekes M I N U T E S Boardmembers: Jack Drago Redevelopment Agency John R. Penna 'loberta Cerri Teglia Municipal Services Building Robert Yee Community Room 10/26/94 AGENDA ACTION TAKEN CALL TO ORDER: (Cassette No. 1) 7:10 p.m. Chairman Fernek~ presiding. ROLL CALL: Boardmembers present: Drago, Penna, Teglia, Yee and Fernekes. Boardmembers absent: None. AGENDA REVIEW AGENDA REVIEW Acting Executive Director Martel stated there were no changes to the Agenda. CONSENT CALENDAR CONSENT CALENDAR 1. Motion to approve Minutes of the Regular Meeting of Approved. 10/12/94. ,.. Motion to confirm expense claims of 10/26/94..-ff/-/~93 Approved in the amount of $3,391.26. M/S Yee/Penna - To approve the Consent Calendar. Carried by unanimous voice vote. ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS 3. Resolution approving finance terms for the loan for Boardmember Penna removed himself from the low to moderate income housing funds for the retrofit podium at 7:12 p.m., due to a conflict of interest, upgrading of the Met Hotel; Motion to approve fi- and did not participate nor take part in the vote on nance terms for HOME funding; Resolution approv- this item. ing finance terms for the redevelopment loan for upgrading retail space for the Martin Metro Building Interim Director of Economic & Community Devel- retrofit; Motion to lease the building for 25 years opment Beyer explained there are two distinct parts with an option to acquire the land. ~&tD ~ to the renovation work for the Metropolitan Hotel: maintain and upgrade the 62 single residential units, A RESOLUTION APPROVING THE FINANCE which includes ground floor seismic and access, and TERMS FOR THE LOAN OF HOUSING SET- second and third floor seismic retrofit; it is not ASIDE FUNDS TO THE METROPOLITAN HO- anticipated the property owner putting in additional TEL AND DIRECTING THE EXECUTIVE DIREC- funds for the housing retrofit; financing would come TOR TO PREPARE AND EXECUTE SUCH A from $430,000 in HOME funds and the remaining LOAN $218,689 from the Redevelopment Agency 20% low and moderate income housing funds; the cost is A RESOLUTION AUTHORIZING A $213,500 about $10,463 per unit to upgrade and preserve the 10/26/94 Page 1 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolutions - Continued. units for a period of 25 years; the other portion is the commercial retail, and there is a restaurateur COMMERCIAL REDEVELOPMENT LOAN AND interested in leasing the space once a commitment APPROVING LOAN TERMS FOR THE MARTIN has been made to bring the space up to improved METRO BUILDING RETROFIT AND DIRECTING conditions; these costs would be approximately THE REDEVELOPMENT AGENCY DIRECTOR $190,000 with a total project cost of $242,000, TO PREPARE AND EXECUTE LOAN DOCU- which includes $34,000 for the downstairs rest- MENTS rooms; condition of providing any funds for this upgrading by the Agency is the requirement that there be an end user who has entered into a lease for the 3,000 sq. ft. prior to the Agency executing the loan documents; etc. He continued: at the last meeting staff was asked to determine if it was worthwhile for the Agency to consider buying the hotel or having an equity par- ticipation in the project, due to the large financial commitment by the Agency; discussions centered on the feasibility of the Agency leasing the land with the owners deeding the building to the Agency for $1.00; this approach was discussed because of diffi- culty in coming to agreement on land value, due, in part, to the owners sentimental attachment to the property; a possible option would be for the Agency to lease the land with stated elements being included in the lease; etc. Discussion followed: how much is the option for the cost of the land; an appraisal would have to be made; normally, when there was an option to buy, the buyer would know the value of the property; Board- member Teglia suggested condemning the building, acquiring it and going forward; the Histor- ical Society has always been concerned about saving that building; concern that no other owner in the City has received this assistance from the Agency; condemnation was a way to solve the problem by having the Court decide the value; Boardmember Teglia wanted that explored; with eminent domain or outright purchase, who would have control over the building and the retail space; Vice Chairman Yee hated the eminent domain process but, if that was the only way to make the project work, we need to take action; Interim Director of Economic & Corn- munity Development Beyer suggested coming back to the Agency with a report on the process, making an attempt to talk to the owners and going through the normal acquisition - short of condemnation; Boardmember Teglia stated, if a call is received 10/26/94 Page 2 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolutions - Continued. from Legal Aid, tell them the intent is not to reduce housing but create more; the Agency wanted to see some sales tax from downstairs but she did not want the owners to feel threatened in anyway. Boardmember Penna Returned to the Podium: Boardmember Penna returned to the podium at 7:25 p.m. 4. Resolution recommending the City Council adopt the Interim Director of Economic & Community Devel- Redevelopment Plan Amendments to the Gateway opment Beyer explained that AB1290 made substan- Redevelopment Plan, Downtown Central Redevelop- tial changes in State Redevelopment Law: a re- ment Plan, Shearwater Redevelopment Plan and the quirement that specific time limits be adopted for El Camino Corridor Redevelopment Plan as required various project activities; redevelopment plans by the passage of AB1290. ,.~t9.3 adopted before 1/1/94 must be amended by ordi- nance to reflect the new time limits; these ordinance A RESOLUTION OF THE REDEVELOPMENT amendments must be in effect before the end of AGENCY OF THE CITY OF SOUTH SAN FRAN- December, 1994; the City has four redevelopment CISCO RECOMMENDING THAT THE CITY project areas that were established prior to 1/1/94 COUNCIL ADOPT AMENDMENTS TO THE that must be amended to reflect the new time limits; FOUR REDEVELOPMENT PLANS PURSUANT etc. TO HEALTH AND SAFETY CODE SECTION 33333.6 He stated the new law mandated: all project activity cease 40 years from plan adoption or by January 1, 2009, whichever is later; all debt (except that re- quired to meet the Agency's affordable housing obligations) shall be established 20 years from plan adoption or by January 1, 2004, whichever is later; all debt repayment must be concluded within 10 years of project termination; plan amendments are included in the table attached to the staff report; the Agency must adopt the resolution prior to the adop- tion of the ordinances by the Council. Boardmember Penna questioned, as a realtor was he allowed to participate. Counsel Mattas stated the ordinances would have to be bifurcated, wherein, on the ordinance for Shearwater, Boardmember Penna will have to ab- stain based upon a prior FPPC letter. Boardmember Penna stated he had nothing to do with Shearwater any more and questioned if the Attorney was basing his opinion on the letter of five years ago. Counsel Mattas stated yes and the recent one re- garding East of 101. He advised Boardmember Penna to abstain on that and the Downtown Central 10/26/94 Page 3 : [] AGENDA A_.C T I O N TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution - Continued. Redevelopment Plan and participate on the others. Boardmember Penna Left the Podium: Boardmember Penna left the podium at 7:30 p.m. Boardmember Teglia stated it had been brought to her attention that the Downtown Central Redevelop- ment Plan was brought to her attention because, and it is not a secret, she owns property 400 feet from the boundaries. Boardmember Drago questioned why this had come up, because all we are doing is changing the existing agreements with State law - what does that have to do with it, it is not a judgment call, we are legally cleaning up the agreement. Counsel Mattas stated that is putting you into the public general exception - the FPPC and the limited case law speaks directly to redevelopment plans and it would be his advice that, if you own property and vote, even though you are meeting State law re- ...,.. quirements~ it would be prudent for you to abstain - because there is a sufficient form of Council to vote. Boardmember Teglia stated that the Council drew straws to vote on the El Camino so there could be a quorum and Boardmember Drago can vote. Boardmember Drago stated he would volunteer to step down if there was a problem with his voting. Boardmember Teglia stated she had not voted, did not want to start voting now and maybe four years later have someone question why she voted - this she did not want to happen. Counsel Mattas stated that it was necessary to deter- mine between Councilmembers Teglia and Drago who would remain and that such a determination could be accomplished by a coin flip. Based on the coin flip, Councilmember Teglia was advised to abstain and Councilmember Drago was allowed to participate - because his participation was necessary to constitute a quorum. ~ardmember Teglia Left the Podium: Boardmember Teglia left the podium at 7:33 p.m. M/S Yee/Drago - To adopt the Resolution. 10/26/94 Page 4 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution - Continued. RESOLUTION NO. 7-94 Carried by majority voice vote, Boardmembers Penna and Teglia did not participate nor vote on the item. Boardmembers Penna and Teglia Returned to the Podium. Boardmembers Penna and Teglia returned to the podium at 7:34 p.m. M/S Yee/Drago - To adjourn the meeting. Carried by unanimous voice vote. ADJOURNMENT: Time of adjournment was 7:35 p.m. RESPECTFULLY SUBMITTED, APPROVED. ;Barbara A. Battaya, Cler an edevelopment Agency ity 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. 10/26/94 Page 5