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Home My WebLink About1985-12-16C; MINUTES REDEVELOPMENT AGENCY Council Chamber, Civic Center Huntington Beach, California Monday, December 16, 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, Finley, Mandic, Bailey, Green Absent: Thomas (out of the room) 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, MacAllister, Finley, Mandic, Bailey, Green Absent: Thomas (out of the room) PUBLIC COMMENTS RELATING TO CITY/REDEVELOPMENT AGENCY ITEMS Lee Wieder, representing BWC/Vanderwood, addressed Council later in the meeting regarding Palm Court. AGENCY MINUTES - APPROVED The Deputy Clerk presented the minutes of the regular meeting of December 2, 1985 for Agency consideration. On motion by Kelly, second Bailey, the Agency approved and adopted the minutes of the regular meeting of December 2, 1985, as written and on file in the Clerk's Office by the following roll call vote: AYES: Kelly, MacAllister, Finley, Mandic, Bailey, Green NOES: None ABSENT: Thomas Page 2 - Redevelopment Agency Minutes - 12/16/85 RES NO 5599 - ADOPTED - TRANSFER OF INDUSTRIAL DEVELOPMENT BOND ALLOCATION TO REDEVELOPMENT AGENCY - RES NO 126 - ADOPTED - PORTION 1985 PRIVATE ACTIVITY BOND LIMIT FOR MAIN PIER PROJECT The Deputy City Clerk/Deputy Clerk prcsenir�d n communielition from the Deputy City Administrator/Redevelopment regarding the need to secure sufficient industrial development bond allocation to finance facilities within the Main -Project Area. Doug LaBelle, Deputy City Administrator/Redevelopment presented a staff report. The Deputy City Clerk presented Resolution No. 5599 for Council consideration - "A RESOLUTION OF, THE CITY COUNCIL OF THE CITY OF HUNTINGTON . BEACH TRANSFERRING 1985 PRIVATE ACTIVITY BOND LIMIT TO THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH." On motion by Kelly, second MacAllister, Council adopted Resolution No. 5599 by the following roll call vote: AYES: Kelly, MacAllister, Finley, Mandic, Finley, Green NOES: None ABSENT: Thomas (out of the room) The Deputy Clerk presented Resolution No. 126 for Agency consideration - "A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH ELECTING TO CARRY FORWARD A PORTION OF THE 1985 PRIVATE ACTIVITY BOND LIMIT OF THE CITY OF HUNTINGTON BEACH FOR THE MAIN -PIER PROJECT." On motion by Kelly, second MacAllister, the Agency adopted Resolution No'. 126 by the following roll call vote: AYES: Kelly, MacAllister, Finley, Mandic, Bailey, Green NOES: None ABSENT: Thomas (out of the room) TEFRA HEARING - PIER HOUSE CONDOMINIUMS - CANCELLED The City Administrator informed Council that the TEFRA hearing on the Pier House condominums project located between 12th and 13th Streets on Pacific Coast Highway had been cancelled as. the State volume cap has been exceeded and the project sponsor has withdrawn its request for 1985 financing. �, i0 -• � N RESOLUTION NO 127 - FAILED - FINANCING DOCUMENTS - PALM COURT PROJECT The Deputy City Clerk/Deputy Clerk presented a communication from the Deputy City Administrator/Redevelopment transmittinb resolution approving the financing documents for the Palm Court project to be located at the northeast corner of Atlanta Avenue and Lake Street. Chairman/Mayor. Mandic stated that due would abstain from voting on the matter. Chairman/Mayor Mandic left the room. to a possible conflict of interest he Q CI Page 3 - Redevelopment Agency Minutes - 12/16/85 The Deputy Clerk presented Resolution No. 127 for Agency consideration - "A RESOLUTION OF THE HUNTINGTON BEACH REDEVELOPMENT AGENCY AUTHORIZING THE SALE OF NOT TO EXCEED $25,000,000 AGGREGATE PRINCIPAL AMOUNT OF THE REDEVELOPMENT AGENCY'S MULTI -FAMILY HOUSING REVENUE BONDS (PALM COURT HOUSING PROJECT), 1985 SERIES A MAKING CERTAIN FINDINGS AND DETERMINATIONS AND APPROVING AND AUTHORIZING THE EXECUTION OF RELATED DOCUMENTS, AGREEMENTS AND ACTIONS." Doug LaBelle, Deputy City Administrator/Redevelopment presented a staff report and reviewed benefits to the city if the project were approved. He referred to a memorandum from his office dated December 4, 1985 outlining staff recommendations. Mr. LaBelle referred to a letter from Lee Wieder, consultant for BWC/Vanderwood, dated December 13, 1985 which outlined 9 Points of difference between the City and the developer. FIe stated that meetings had been held between staff and the developer and that agreement had been reached on Points 3, 5, 6, 8 and 9. Mr. LaBelle stated that staff was opposed to Points 1, 2 and 7. He stated that Point 4 was not acceptable to staff and they were not able to work out acceptable wording in that context. In response to questions from Council, Mr. LaBelle stated that the developer had not acquired the Niccole property at this time. In response to further questions Mr. LaBelle stated that all of the Palm Court project was located in the Redevelopment Project Area; that although a portion of the property was in the Downtown Specific Plan it was all in the Redevelopment Project Area. Discussion was Y,eld between Council and Agency Counsel Tom Clark regarding .. Point 4 pertaining to the extension of the bond escrow period. In response to a question by Council, the City Administrator stated that the Niccole property was necessary to the realignment of Lake Street and Atlanta Avenue with the Precise Plan of Street Alignment. Lee Wieder, consultant for BWC/Vanderwood, addressed Council regarding the various Points raised in his letter dated December 13, 1985. He stated that Points 1 and 2 had to be agreed upon at this Council meeting because if the bond was approved the developer would have to pay the bond issuance fee in the morning and the developer was not willing to pay the fee without agreement on Points 1 and 2. Director/Councilman Thomas returned to the room. Discussion was held regarding the issue of condemnation. Following extensive discussion, a motion was made by Kelly, seconded by Green, to adopt Resolution No. 127 and to approve the following: 1. The developer has the prerogative to request the Agency to proceed with eminent domain for the acquisition of any or all parcels within the project site. The Agency will determine at its sole discretion, and following all procedures for eminent domain proceedings as established in the California Health and Safety Code, to approve or deny such a request. The developer also has the prerogative to request consideration of a redesigned project by filing such requests with the appropriate city bodies governing such entitlement -to -use approvals. Notwithstanding Page 4 - Redevelopment Agency Minutes - 12/16/85 these developer prerogatives, no proceeds of the bonds will be disbursed for the acquisition of land unless and until one of the following conditions has been satisfied: (a) All three parcels, which when assembled configure the project site, are in escrow and prepared to close; (b) (i) the design of a project of a lesser scope has been reviewed by and approved by all discretionary approval bodies including but not limited to Planning Commission, Redevelopment Agency, and the City Council and further that such project has been provided with all necessary entitlement to use approvals and (ii) there is by separate action of the Redevelopment Agency specific approval for the disbursement of funds with a full disclosure to and by the Redevelopment Agency Members that proceeds are to be disbursed for the acquisition of land for a project of reduced scope and (iii) that all aspects of such project of reduced scope have been incorporated in an OPA which has been approved and executed by the developer and the Agency. 2. An Owner Participation Agreement shall be completed and fully executed by all parties that includes the developer's obligations with respect to but not limited to a schedule of performance, offsite improvements, and utility relocations, within 90-days of the issuance of bonds OR prior to the disbursement of proceeds for land acquisition whichever occurs first. The only proceeds of the Bonds which will be disbursed at the Bond Issue closing will be those to pay the costs of issuance (Underwriters discount, Bond Counsel fees, bond printing and rating agency fees, etc. and city's issuance fee). All other proceeds will be held in escrow until the conditions described above are met. Councilman/Director Kelly clarified the motion that it did not include the letter from Mr. Wieder dated December 13, 1985. In response to questions from Council, Anthony Canzoneri, developer for Palm Court, addressed Council regarding Point 7 pertaining to the City's one-half of one percent bond issuance fee. The motion made by Kelly, seconded by Green, failed by the following tie roll call vote: AYES: Kelly, Green, Thomas NOES: MacAllister, Finley, Bailey ABSENT: Mandic (out of the room) Chairman/Mayor Mandic returned to the room. 1'v�f' ANNUAL REPORT OF THE HUNTINGTON BEACH REDEVELOPMENT AGENCY FOR FISCAL YEAR 1984 85 - APPROVED The Deputy City Clerk/Deputy Clerk presented a communication from the Deputy City Administrator/Redevelopment transmitting the Annual Report of the Redevelopment Agency. Page 5 - Redevelopment Agency Minutes - 12/16/85 A motion was made by MacAllister, seconded by Kelly, to direct that the FY 84-85 Annual Report of the Redevelopment Agency be received and filed and to direct staff, in accordance with provisions of the Health and Safety Code, to forward necessary copies of both the Agency's Annual Report and Audit to the State of California Department of Housing. and Community Development. The motion carried by the following roll call vote:', AYES: Kelly, MacAllister, Finley, Mandic, Bailey, Green, Thomas, NOES: None ABSENT: None Director/Councilman Thomas left the room. AUTHORIZE STAFF TO PREPARE MINOR MODIFICATIONS FOR THE MAIN -PIER SUBAREA DISPOSITION AND DEVELOPMENT AGREEMENT - TO BE CONSIDERED 1 6 86 The Deputy City Clerk/Deputy Clerk presented.a communication from the Deputy City Administrator/Redevelopment of a request for authorization to prepare an amendment to the subarea Disposition and Development Agreement, in order to make minor modifications to the original list of conditions precedent to the agreement and schedule of performance. The Deputy City Administrator/Redevelopment presented a staff report. r, A motion was made by MacAllister, seconded by Bailey, to direct staff to draft suggested changes to the Main -Pier Subarea Disposition and Development Agreement for Council/Agency consideration at the January 6, 1986 meeting. The motion carried by the following roll call vote: AYES: Kelly, MacAllister, Finley, Mandic, Bailey, Green NOES: None ABSENT: Thomas (out of the room) ADJOURNMENT The Chairman adjourned the regular meeting of the Redevelopment Agency. ATTEST: Alicia M. Wentworth Clerk BY Deputy Clerk Alicia M. Wentworth Clerk