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HomeMy WebLinkAbout1995-12-02 (8)MINUTES CITY COUNCIUREDEVELOPMENT AGENCY CITY OF HUNTINGTON BEACH 8:00 A.M. Gothard Fire Training Facility 18301 Gothard Street Huntington Beach, California Saturday, December 2, 1995 Call To Order Mayor Leipzig called the adjourned regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to order at 8:00 a.m. in the Gothard Fire Training Facility. City Council/Redevelopment Agency Roll Call: Present: Harman, Bauer, Leipzig, Dettloff, Green, Garofalo Absent: Sullivan Material Distributed To The City Council 1. Communication from the Community Services Director dated November 29, 1995, transmitting the Affordable Housing Presentation - City of Huntington Beach, 1995 2. Document titled Economic Development City Council Workshop - December 2, 1995 3. Communication from Stradling, Yocca, Carlson and Rauth dated February 21, 1995 Regarding Rescission of Redevelopment Agency Resolution No. 48 4. Redevelopment Agency Resolution No. 48 adopted September 7, 1982 5. Communication from Community Development Director dated November 28, 1995, titled Analysis of Downtown Mixed -Use Districts 6. City of Huntington Beach Redevelopment Project Area Maps 7. Draft Sheet - Economic Development Strategy Higher Priority Recommendations 8. Moody's Public Finance - Perspective on Land -Secured Finance dated August 18, 1994 (Presented during meeting) Page 2 - City Council/Redevelopment Agency Minutes - 12/02/95 9. Huntington Beach Redevelopment Agency - Limits of Redevelopment Plans - Existing and with 1996 Amendments (Presented during meeting) 10. City of Huntington Beach Economic Development Strategy, prepared by Cunningham and Associates, dated August, 1995 11. Financial Incentives - Debt Instruments prepared by Economic Development Department Affordable Housina Presentation - Backaround and State Reauirements The Community Development Director made a slide presentation on Affordable Housing and the city's affordable housing needs. The Planning Director presented background information on the city's efforts to implement an Affordable Housing Plan. Linda Niles, Community Development Advance Planning Senior Planner, presented a slide review of the document titled Housing Presentation - City of Huntington Beach, 1995. Stephen Kohler, Economic Development Project Manager, presented a slide report on affordable housing. Discussion was held regarding the California Coastal Commission regulations relative to replacement of affordable housing stock in the Coastal Zone. The Mayor presented his views including that the need for maintenance of existing housing stock was more important than building new. He stated that home ownership is a goal. Councilman Garofalo spoke regarding subjects such as in -lieu fees in relation to affordable housing and the percentage of housing stock requiring maintenance. Murray Kane, Kane, Ballmer and Berkman, consultant attorneys, addressed Councilman Garofalo's comments. Councilman Green stated that perhaps it was time to revisit the Single Room Occupancy issue and visit the City of San Diego which is supposed to have a successful program; also that "granny flats" are another possibility. Councilman Bauer stated that he would like to see a collective policy of Council; that the city has a staff policy but a City Council policy is needed. Councilman Bauer recommended that the city take cash instead of housing density bonus and put the cash in housing stock maintenance. Councilwoman Dettloff spoke regarding the great need she saw for rehabilitation of housing stock. ME Council/ Agency Minutes - 12/02/95 - Page 3 Steve Kohler, Economic Development Project Manger, and Howard Zelefsky, Planning Director, responded to Councilwoman Dettloff's questions. Councilwoman Dettloff stated that she would like Council to revisit the ordinance developed by the Task Force. Steve Kohler, Economic Development Project Manager, reviewed the financial situation of the Redevelopment Agency. The City Attorney stated that Mr. Kane had brought a communication from Moody's Public Finance, dated August 18, 1994, titled - Perspective on Land Secured Finance. Mr. Kohler presented a slide report which included the history of the Agency's financing and types of debt. He stated the areas where the Agency was able to pay back debt, the ratio of borrowing to payback, and the projection that the Agency's funds will be exhausted by 1999, Frank Spevacek, Principal, Spevacek Group, Incorporated, presented viewgraphs regarding the five redevelopment project areas, possible budget solutions and the Agency's mission. Steve Kohler, Economic Development Project Manager, distributed a chart dated December 1, 1995 prepared by Rosenow Spevacek; titled "Huntington Beach Redevelopment Agency - Limits of Redevelopment Plans, Existing and With 1996 Amendments" Mr. Kane reported on financial issues and anticipated actions by the school districts on the Merger -Amendment process. He addressed the citizens advisory process as it was in the past and as it is presently relative to procedures including procedures on the makeup and election of Project Advisory Committee members by the community. He stated that eminent domain would trigger the formation of a Project Area Committee. Bob Franz, Deputy City Administrator, presented a report on the plan amendments giving reasons why they are probably more important than the merger. He introduced Ed Schilling. Ed Schilling, Stone and Youngberg representative, reported on the merger of project areas and the advantages of merger, including financial advantages such as a lower cost of borrowing. He stated that three of the areas are so small they should be merged for a stronger position in the financial markets; particularly since it would have been an action initiated by the city. Mr. Kane spoke regarding bond ratings with or without a bond issue and the fact that each bond stands on its own merit and has a small effect on other bonds. Frank Spevacek, Spevacek Group, Incorporated, presented a viewgraph of the schedule of a merger plan. The Mayor reviewed the current status of redevelopment in the city and presented his opinion as to its future. Page 4 - City Council/Redevelopment Agency Minutes - 12/02/95 Councilman Harman stated he believed that the city has probably accomplished its redevelopment goal. Councilwoman Dettloff stated that she believed that redevelopment may be very necessary as the tool to go forward with some of the needed projects in the city. Councilman Bauer gave reasons why he believed redevelopment was a major tool in economic development. He stressed that Council should make a decision and move on. Councilman Green stated that he believed the economic downturn had an effect on the success of redevelopment in the city and that he believed concentration should be focused on the Edinger Corridor. Councilman Garofalo stated that he was strongly in favor of the merger. He stated that he believed it was critical that Council have all tools available prior to proceeding with the city's future important plans. Past payment to the city from the Redevelopment Agency was discussed by the City Administrator and the Council. The City Administrator addressed redevelopment issues and stated that he believed the city should proceed with the merger and amendments and evaluate the whole redevelopment aside from what occurred in 1988. Discussion was held regarding economic development through the Redevelopment Agency as opposed to attempting to develop without an Agency. Considerable discussion was held between Council and the City Administrator. Discussion was held regarding how the city could proceed on a greater scale in redevelopment. Mr. Kane spoke regarding the use of tax increments as a boot strap. Mr. Kane, at the request of Councilman Harman, reported on proposed state legislative actions as it would affect the redevelopment planning of the city and which may be a reason to proceed with actions currently available. The Community Development Director, referring to a map, reviewed the mixed uses in the downtown area. Considerable discussion was held. Jim Lamb, Economic Development Project Manger, reported on the Draft Implementation Plan for Economic Development Strategy. He reported on the planned procedures. Discussion was held by the Council, staff and Hank Cunningham, Cunningham and Associates representative, including the potential of the 60 acres at the McDonnell Douglas Site. 610 Council/ Agency Minutes - 12/02/95 - Page 5 Councilman Bauer stated that he believed these documents were the best he has ever seen and urged proceeding in this manner. He stated that the Chamber of Commerce should be provided with more up to date information. The City Administrator summarized the conclusions of this meeting which included forming a Housing Program Council Philosophy, redevelopment issues moving forward cautiously at this time, and placing Resolution No. 48 on the back burner. Adjournment - City Council/Redevelopment Agency The Mayor adjourned the regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to Monday, December 18, 1995, at 5:00 p.m. in Room B-8, Civic Center, 2000 Main Street, Huntington Beach, California. 4�� - :7 City Clerk and ex-officio Clerk ofrhe City Council of the City of Huntington Beach, and Clerk of the Redevelopment Agency of the City of Huntington Beach, California ATTEST: City Clerk/Clerk Mayor/Chairman 611