HomeMy WebLinkAbout1985-12-02 (7)1
ri
J
MINUTES
REDEVELOPMENT AGENCY
Council Chamber, Civic Center
Huntington Beach, California
Monday, December 2, 1985,
A tape recording of this meeting is
on file in the City Clerk's Office
Chairman Mandic called the regular meeting of the Redevelopment Agency to
order.
ROLL CALL
Present: Kelly, MacAllister, Bailey, Mandic, Finley, Green, Thomas
Absent: None
JOINT MEETING OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY'
Mayor Mandic announced that, a joint meeting of the City Council. and the
Redevelopment Agency had been called.
COUNCIL ROLL CALL
Present: Kelly, N1arA.111SLer, Bailey, Mandic, Finley, Green, Thomas
Absent: None
PUBLIC COMMENTS RELATING TO CITY/REDEVELOPMENT AGENCY ITEMS
No one Addressed Council/Redevelopment Agency at this time.
MINUTES
The Clerk presented the minutes of the regular meeting of November 18, 1985
for consideration by the Redevelopment Agency.
On motion by MacAllister, second Kelly, the Agency unanimously .approved and
adopted the minutes of the regular meeting 'of November lb, 1985 as written and
on file in the Clerk's Office
8 ; a v
PUBLIC HEARING — RES NO. 5597 — ADOPTED AS AMENDED — MULTI —FAMILY HOUSING
The Mayor/Chairman announced that this was the day acid hour suet for a public
hearing to consider the proposed issuance of the Agency#a Multi —Family Housing
Page 2 - Redevelopment Agency Minutes - 12/2/85
Revenue Bonds .1985 Series A (Palm Court Project) in the aggregate amount
not -to -exceed $25 million. Said Bonds relate to the proposed financing of a
multi -family congregate elderly housing project known as Palm Court and to be
owned by BWC/Vanderwood Company consisting of approximately 190 units located
at the northeast corner of Atlanta Avenue and Lake Street. )
Mayor/Chairman Mandic stated he would abstain from voting on this matter due
to a conflict of interest.
Mayor:/Chairman Mandic _left the room.
The City Clerk/Clerk announced that all legal requirements for publication and
posting had been met, and that she had received no communications or written
protests to the matter.
Doug LaBelle, Deputy City Administrator/Redevelopment presented a staff report
including the following benefits that will result from the construction of the
proposed project:
1. Implementation of a portion of the downtown circulation system - Lake
/Atlanta alignment;
2. Provides for 192 high quality, senior citizen dwelling units.
3. Generation of expendable income to support the new commercial and office
development proposed within the Main -Pier Project Area;
4. The projectes projected assessed value is anticipated to create
approximately $150,000 to $175,000 of tax increment annually in the
second year following completion. This anticipated increment can be used
to finance infrastructure needs within the Main -Pier Project Area.
5. The project will establish a strong architectural statement that will
assist in the creation of a revitalized downtown image and set a
precedent with design amenities that are in compliance with the adopted
Downtown Design Guidelines.
Mr. LaBelle stated that through the preparation of the bond documents that
while the sale could be allowed to occur prior to the end of December 1985
that those bond documents would preclude a land draw down on an incremt.ntal
basis. In effect all parcels or all properties must simultaneously be
acquired on behalf of the project to allow that land draw down to occur. He
recommended inclusion in the bond documents all practical measures to seek to
assure timely completion of the project in total as presently approved by the
City.
Councilman/Director Green questioned what would happen if the bond were
approved but the developer was unable to acquire the Niccole property. Mr.
LaBelle stated that bond preparation costs was all the expense the City would
entail. In response to further questions Mr. LaBelle explained that without
the Niccole property the two-thirds ownership requirement would be met. He
stated that even though the two-thirds ownership requirement would be met the
developers would be unable to proceed with the original plans as approved by
the City without the Niccole property.
The Mayor Pro Tem Chairman declared the hearing open.
F��
"Y:
n
Page 3 - Redevelopment Agency Minutes - 12/2/85
Lee Wieder, representing BWC/Vanderwood, referred to a letter from Terry
Tornek, Director of Development for BWC Development Company dated November 27,
1985. He stated that the company would agree that all bond proceeds, other
than the issuance costs and land funds, would remain in escrow until the
company was in a position to commence development of the project. He stated
the company would agree to post a letter of credit to back the bonds for an
amount equal to any portion of .the bond proceeds which are not held in
escrow. He stated that if the Company was unsuccessful in purchasing the
Niccole property and the City was unwilling to condemn the property the
company would not hold the City liable .for the failure to condemn.
Ken Skol.yan and Don Slaven spoke in opposition to the issuance of a
Multi -Family Housing Revenue Bond for the Palm Court project.
There being no one present to speak on the matter and there being no protests
filed, either oral or written, the hearing was closed by the Mayor Pro Tem
Chairman.
Discussion was .held regarding the notification process for the TEFRA hearing
and the change in the type of bonding being considered. Stephen Kohler,
Senior Community Development Specialist, stated that a condition of prior
approval is Senior Housing.
In response to questioning, Terry Tornek, bond counsel for. BWC Development
Company, stated that it could be arranged that the bond sale could move ahead
but monies not be disbursed until all of the parcels have been acquired.
In response to questions by Council Mr. LaBelle clarified the matter of
disbursing bond proceeds for the simultaneous acquisition of all parcels.
The City Clerk presented Resolution No. 5597 for Council consideration - "A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON.'BEACH APPROVING A
PROJECT COMPRISED OF THE CONSTRUCTION OF THE PALM ..COURT MULTI -FAMILY
CONGREGATE ELDERLY HOUSING PROJECT (THE PROJECT)."
On motion by Kelly, second Green, Council adopted Resolution No. 5597 by the
following roll call vote:
AYES: Kelly, Finley, Green, Thomas
NOES: MacAllister, Bailey
ABSENT: Mandic (out of the room)
A motion was made by Kelly, seconded by Green, to authorize staff to negotiate
and prepare a contract for Bond Counsel services with the firm of Brown, Wood,
Ivey, Mitchell and Petty to serve as Bond Counsel in this transaction. The
motion carried by the following roll call vote:
AYES: Kelly, Finley, Green, Thomas
NOES: MacAllister, Bailey
ABSENT: Mandic (out of the room)
Mayor/Chairman Mandic returned to the room.
Page 4 - Redevelopment Agency Minutes - 12/2/85
0 !'I-,q
PURCHASE OF PROPERTY - APPROVED - OAKVIEW REDEVELOPMENT PROJECT AREA
The City Clerk/Clerk presented. a communication from the Chief of
Administrative Services recommending Agency approval of the purchase of
property (duplex - for redevelopment purposes - AP #165-364-07) located- west
of Beach Boulevard and south of Warner Avenue .in the Oakview Redevelopment
Project area.
The Chief of Administrative Services. presented a staff report.
Following discussion, a motion was made by Kelly, seconded by Green, to
approve the purchase of, property (duplex - for .redevelopment purposes AP
#165-364-07) located west of Beach Boulevard and south of Warner Avenue in the
Oakview Redevelopment Project area in the amount of $140,000. The motion
carried by the following roll call vote:
AYES: Kelly, MacAllister, Bailey, Mandic, Finley, Green, Thomas
NOES: None
ABSENT: None
CONTRACT - APPROVED - P.RELIMINARY FEASIBILITY.:STUDY FOR A COUSTEAU CENTER
The City Clerk/Clerk presented , a . transmittal _ -,from the Deputy City
Administrator/Redevelopme,nt.of .a,contract between the Redevelopment Agency and
Cousteau Ocean Center, Inc., to conduct a preliminary feasibility study of the
economic and financial performance considerations for a Cousteau entertaining
education facility within the Main -Pier Redevelopment Project area.
On motion by Bailey, second Finley, Council/Redevelopment. Agency approved and
authorized execution of a contract with Cousteau Ocean Center, Inc., to
conduct a preliminary feasibility study, commencing on or about December 1,
1985, and concluding 90 days later in an amount not to exceed $19, 950 by the
following roll call ,vote:..
AYES: Kelly, Bailey., Mandic,,, .Finley,., G,r,een,_ Thomas
NOES: MacAllister
ABSENT: None
ADJOURNMENT
The Chairman adjourned the regular meeting of the Redevelopment Agency'.
ATTEST: Clerk
Cler ..:.. Chairman