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HomeMy WebLinkAboutRDA Minutes 2010-01-13`o~~H, sANF~ MINT~TE S ~H~, ~- ~, REDEVELOEMENT AGENCY U - O ~_,;;;;~;~-- CITY OF SOLTTI~ SAN FR~-NCISCO ~gLIF`"~~ REGULAR MEEThTG ML'I~IICIPAL SERVICES BUILDING COMMUNITY ROOM WEDNESDAY, JANUARY 13, 2010 CALLED TO ORDER: 6:32 p.m. ROLL CALL: Present: Boardmembers Garbarino, Gonzalez and Matsumoto, Vice Chairman Mullin and Chairman Addiego. Absent: None. AGENDA REVIEW None. PUBLIC COMMENTS None. CONSENT CALENDAR 1. Motion to approve the minutes of December 9, 2009. 2. Motion to confirm the expense claims of January 13, 2010 in the amount of 1,953,617.67. 3 . Resolution 1-2010 approving an Agreement with Brookwood Group to manage the design and project entitlement process for 418 Linden Avenue in an amount not to exceed $361,159. 4. Resolution 2-2010 authorizing the Executive Director to execute a Contract Services Agreement with Dyett & Bhatia to prepare the El Camino Real/Chestnut Avenue Area Plan Project. Motion -Boardmember Garbarino/Second -Boardmember Gonzalez: to approve Consent Calendar items 1 and 3. Unanimously approved by voice vote. Item 2: Boardmember Matsumoto questioned the use of the property in question as reflected in the warrant report. Director of Economic and Community Development Van Duyn advised the property was used for low incon-ie'nousing. Motion- Boardme~r~ber Mats~~:roto/Second- Boardmember Garbarino: to approve Consent Calendar Item =; o. 2. Unanimously approved by voice vote. Item No. 4: Boardmember Matsumoto requested reassurance that the consultants' Work W~iild be completed on time. Director Van Duyn and the consultants advised the time schedule would be adhered to. Motion -Boardmember Matsumoto/Boardmember Garbarino: to approve Resolution No. 2-2010. Unanimously approved by voice vote. ADMII~IISTRATIVE BUSINESS 5. Resolution 3-2010 approving a loan for the expansion of Buon Gusto Ristorante in an amount not to exceed $650,000 and authorizing the Executive Director to execute the loan documents. Redevelopment Consultant Sanchez presented the staff report recommending reauthorization of the loan that had been approved on August 26th because the security interest on the loan had changed from a leasehold to a personal guarantee. To improve the odds of recovering funds under these circumstances, the term of the loan had been changed from 35 to 25 years. Boardmember Matsumoto expressed concern over the unsecured debt component. Chairman Addiego requested confirmation that the leasehold security would have provided the agency with the opportunity to rent the restaurant to another party if the loan defaulted. He further questioned the net worth of the guarantors. Consultant Sanchez so confirmed and added that the personal guarantee would permit the Agency to pursue the businesses' assets, including .fixtures, and any future business. Regarding net worth, Consultant Sanchez advised the business had a lot of good will and working capital tied into it. Additionally, upon completion of the project, the new space would be worth a lot more. He noted however, that the loan had not been secured against the owners' homes. Boardmember Gonzalez commented on Buon Gusto's' significance to the Downtown District. He noted the loan would permit the restaurant to remodel and become even more successful. Boardmember Matsumoto questioned the Agency's recourse of there was a default on the loan. REGULAR REDEVELOPMENT AGENCY MEETING JANUARY 13, 2010 MINUTES PAGE 2 Consultant Sanchez advised the Agency would try and negotiate a solution and look into ways to get money out of the business and its owners, inclining profits, fixt~lres and other assets. Counsel ivlattas advised the Agency's protection against default was in the iorrr. of a personal guarantee. Chairman Addiego noted that even in the current down economy, the restaurant industry was bullish in areas like Palo Alto and Union Street in San Francisco. He questioned whether the name "Buon Gusto" was considered an asset of the business. Counsel Mattas advised it likely was an asset of the corporation. Buon Gusto's owner confirmed the name would be structured into the loan document. Motion-Boardmember Garbarino/Second-Boardmember Mullin: to approve Resolution No. 3-2010 with direction that the final loan documents include a security interest against the name "Buon Gusto." Ayes: Boardmembers Garbarino and Gonzalez, Vice Chairman Mullin and Chairman Addiego. Recess: 7:00 p.m. Meeting resumed: 8:27 p.m. Recess: 8:27 p.m. Meeting resumed: 8:32 p.m. CLOSED SESSION: Closed Session opened: 8:32 pm Open Session resumed: 9:31 p.m. 6. Pursuant to Government Code section 54956.8 Real property negotiations related to 356 Grand Avenue. Company Negotiator: David Tsui Agency Negotiator: Marty Van Duyn. Report out of Closed Session by Chairman Addiego: Direction given no action taken. 7. Pursuant to Government Code section 54956.8 Real property negotiations related to 309 Airport Boulevard. Company Negotiator: Michael Lu Agency Negotiator: Marty Van Duyn. Report out of Closed Session by Chairman Addiego: Direction given no action taken. REGULAR REDEVELOPMENT AGENCY MEETING JANUARY 13, 2010 MINUTES PAGE 3 ADJOLIRNMENT Being no further business, Chairman Addiego adjourned the meeting at 9:?5 p.m. Submitted by: ' elli-Larson, Clerk Ci o _. San Francisco Approved: ~i Niark .Addiego, Chairma City of South San Francisco REGULAR REDEVELOPMENT AGENCY MEETING MINUTES JANUARY 13, 2010 PAGE 4