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HomeMy WebLinkAboutRDA Minutes 1998-05-27 Chairman Eugene R. Mullin M I N U T E.E_ S Boardmembers: James L. Datzman Redevelopment Agency Joseph A. Fernekes Karyl Matsumoto Municipal Services Building fohn R. Penna Community Room May 27, 1998 AGENDA ACTION TAKEN CALL TO ORDER: (Cassette No. 1) 7:03 p.m. Chairman Mullin presiding. ROLL CALL: Boardmembers present: Datzman, Fernekes, Matsumoto and Mullin. Boardmembers absent: Penna. Clerk Battaya stated Boardmember Penna had sur- gery today, is under medication and unable to attend tonight's meeting. AGENDA REVIEW AGENDA REVIEW Executive Director Wilson stated there were no .... changes to the Agenda. ONSENT CALENDAR CONSENT CALENDAR 1. Motion to approve Minutes of the Regular Meeting of Approved. 5/13/98. 2. Motion to confirm expense claims of 5/27/98. ,5'/-/t9~ Approved in the amount of $361,338.93. M/S Matsumoto/Fernekes - To approve the Consent Calendar. Carried by unanimous voice vote. ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS 3. Resolution authorizing participation agreements with CDBG Coordinator Fragoso stated the Agency needs Mid-Peninsula Housing Coalition for Willow Gardens to execute these agreements to bring us to the next Revitalization Project which cover an expenditure of step and during the next several months she will $3.5 million housing fund reserves for acquisition and bring forward an agreement that will put in place the rehabilitation costs, execution of participation agree- entire funding for the entitlement, etc. ment with San Mateo County HOME Consortium, execution of participation agreement with Mid-Penin- She explained the Federal Section 108 Loan Fund sula for use of HOME funds and execution of Federal Agreement and stated it was not to exceed $375 Section 108 Loan Fund Agreement which sets aside million as stated on the Agenda, but 3.7 million; she an amount not to exceed $375 million for the Project. has had requests from some residents owning prop- ~'¢b3 erty in Willow Gardens on the availability 5/27/98 Page 1 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution - Continued. of loan funds and they would pay a 7.5% interest. A RESOLUTION APPROVING THE PARTICIPA- M/S Fernekes/Datzman - To adopt the resolution. T/ON AGREEMENTS WITH MID PENINSULA HOUSING COALITION FOR WILLOW GARDENS RESOLUTION NO. 6-98 REVITALIZATION PROJECT, APPROVING A PARTICIPATION AGREEMENT WITH SAN Carried by unanimous voice vote. MATEO COUNTY HOME CONSORTIUM, AP- PROVING A FEDERAL SECTION 108 LOAN FUND AGREEMENT AND AUTHORIZING EXPENDITURE OF 3.5 MILLION DOLLARS OF AGENCY HOUSING FUND RESERVES FOR WIL- LOW GARDENS ACQUISITION AND REHABILITATION COSTS SUBJECT TO AP- PROVAL OF A PROMISSORY NOTE, DEED OF TRUST AND RENT REGULATORY AGREEMENT 4. Resolution of Necessity to purchase property at 208 Economic & Community Development Coordinator East Grand Avenue. ..6"t/0~ Beyer related: prior approval for redevelopment of the downtown central area which called for A RESOLUTION OF NECESSITY TO CONDEMN the elimination of blight and established objectives; THE PROPERTY AT 208 EAST GRAND AVENUE he chronicled the history of Britannia acquiring IN SOUTH SAN FRANCISCO FOR REDEVELOP- adjacent property in the area; Britannia approached MENT AGENCY PURPOSES INCLUDING FIND- the City on the potential expansion Point Grand INGS AND DETERMINATIONS; AUTHORIZA- Business Park to include both sides of Harbor Way TION OF EMINENT DOMAIN PROCEEDINGS for development of future biotech space; they eh- AND APPLICATION FOR POSSESSION PRIOR tered into agreement with Sugen for construction of TO JUDGMENT 211,868 sq. ft. of biotech space in three phases; Britannia has five parcels, 5.55 acres fronting on either East Grand or Harbor Way; an offer has been made on 208 E. Grand, the Atlas Plumbing and Heating parcel, which is the parcel in question this evening; there have been negotiations, however, Britannia has not been able to obtain a final response to their last offer; this parcel is crucial to the com- pletion of the property assemblage for this biotech park; the Agency made an offer on 4/30/98, based on an appraisal by Dana Property and to-date the Agency has not received a response to that offer; he described the specific findings in the resolution for public use and necessity; the property owners have indicated they are prepared at this time to make a counter-proposal to Britannia and move forward in the next 30 day period; staff supports that and recommends that the Agency move forward with the adoption of the resolution and directs staff to not impose that for 30 days pending the continuation of the negotiations. 5127/98 Page 2 ~ ,1 l AGENDA ACTION TAKEN 9../0 7 ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution of Necessity - Continued. Counsel Mattas related: the Agency will adopt a resolution of necessity addressed to the issue of taking the property and not other issues; it is appro- priate to ask questions on the right to take the prop- erty and Mr. Skinner, of his office, is here if need- ed; the issue of evaluation is a separate issue. Chairman Mullin stated he had a speaker card from Mr. Mark Melbye, and a letter from Ms. Theresa Meyer who is owner of the property at 208 East Grand Avenue. Mr. Mark Melbye, 1350 Bayshore Highway, Ste. 150, Burlingame, related: he is in real estate and is working for the owners of the East Grand Avenue property; he is familiar with the development at and around the site; in his discussions with Mr. Beyer it was stated that the redevelopment was started in 1989, yet the owners of this property bought it in 1994 and had no idea of the redevelopment plan; there have been no discussions until now, and now they were being railroaded; the property was re- cently purchased by Mr. Bristo a year ago, and now with the east of 101 plan it has picked up speed, they have owned a building for over four years and now over a course of one year they are being forced by Britannia to leave a facility which they feel is well located for their business, and it is a good business; the owners would like the opportunity, rather than take an offer that came from an appraisal that is based on comparables; the market has taken a turn higher in the last eight months; they would like to talk to the Britannia developer and come to a win win situation, just like anybody else that needs the property or finds value in a property, but negoti- ates in a way where both parties get what they want; each party has a separate idea of the value of the property, but work it out rather than resort to this negative decision. Discussion followed: was there any contact between the owner of the property and the developer; yes, and there was a period where there was no response; how long has that been going on; at least six months initially since last fall; Counsel suggested the Agency direct staff not to do anything for 30 days, so they can continue the negotiations; he said in all forms of condemnations once instituted, that does not stop the negotiating for that continues on and 5127/98 Page 3 I AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution of Necessity - Continued. overwhelmingly ends in a negotiated settlement; Mr. Melbye stated the owners felt the negotiation process was going very fast and described appraisal methods that include cost of a facility and the cost to rebuild that facility; the individual parties may chose to have their own appraiser; the people do not want to move and the property is quite attractive from a business standpoint and they have to take into consideration moving costs and loss of business; they have to have a new location in a market where the market has gone through the ceiling, there is higher interest and taxes; isn't it a common practice for disclosures when a property is in a redevelopment area; once the redevelopment plan was recorded it would show up on the title report; it is a typical practice for real estate agents to give full disclosure on a property; the whole side of the freeway, east of 101, is rede- velopment, but what did that mean when it was adopted; the owners of the property want to get the value in the negotiating, they want to stay or want what the market dictates; how long has Mr. Melbye ...... been involved; since September; the staff report says an offer was made by the Agency on April 30th and it was based on the appraised value dated February 19th, so are you saying there were 60 days - did any negotiations take place at that time; the City has not received a formal response from the owner; the negotiations were between Britannia and the owners of the property; the owners felt that it was almost as if the City, Redevelopment Agency, staff and the developer were working together to move ahead and not respecting their ability to work with the owners; they have spoken to their own counsel to find out where they stand and eventually they wanted to come to this meeting, but now this is being pushed forward; he told Mr. Beyer the owners would like time to work this out and do it in a way that is fair and then negotiate with the developer; etc. Ms. Teresa Meyer stated she is one of the owners of 208 East Grand Avenue and has a need to clarify one point - on 4/30/98 they received a letter from the City Attorney, that was so filled with errors, and we told them it was not a vacant piece of property. In addition there were numerous mistakes, but they did send a letter back and it was then May 12th. Discussion followed: was there any urgency in- volved in this issue; City Manager stated staff felt 5/27/98 Page 4 ~ ,! 1 AGENDA ACTION TAKEN ~ ._ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution of Necessity - Continued. volved in this issue; City Manager stated staff felt they could delay the implementation for 30 days and monitor; Mayor Mullin stated there is opportunity for 30 days or longer and it has been his experience, although limited, that an eminent domain issue has agreement reached prior to that being effected. M/S Fernekes/Datzman - To adopt the Resolution and delay 30 days. RESOLUTION NO. 7-98 Carried by unanimous voice vote. GOOD AND WELFARE GOOD AND WELFARE No one chose to speak. M/S Fernekes/Matsumoto - To adjourn the meeting. Carried by unanimous voice vote. DJOURNMENT: Time of adjournment was 7:50 p.m. RESPECTFULLY SUBMITTED, APPROVED. Barbara A. Battaya, Cl Eugep6 }Z. Mullin, Cl,ai~lnan Redevelopment Agency Rede~Yopment 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. 5/27/98 Page 5 I