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Home My WebLink About083195 CC/RDA Jnt. MinutesMINUTES OF A JOINT MEETING OF THE TEMECULA CITY COUNCIL AND THE TEMECULA REDEVELOPMENT AGENCY HELD AUGUST 31, 1995 A regular meeting of the Temecula City Council was called to order at 7:03 PM at the Community Recreation Center, 30875 Rancho Vista Street, Temecula, California. Chairperson Ronald J. Parks presiding. PRESENT 4 COUNCILMEMBERS: Birdsall, Lindemans, Parks, Roberts ABSENT: 1 COUNCILMEMBERS: Stone Also present were City Manager Ronald Bradley, City Attorney Peter M. Thorson, and City Clerk June S. Greek. PLEDGE OF ALLEGIANCE The audience was led in the flag salute by Mayor Pro Tern Lindemans. PUBLIC COMMENTS None given. PUBLIC HEARING City Manager Ronald Bradley introduced the subject of the Special Meeting and stated that the project is proposed for development using private funding. He explained an Owner Participation Agreement (OPA) will be used, since the developer will own, control and be responsible for the project, which is the subject of the agreement. Community Development Director Gary Thornhill provided a brief overview of the proposed Old Town Entertainment Project's land use entitlements as they relate to the Owner Participation Agreement. He also outlined the ways that the project meets the goals and objectives of the Old Town Specific Plan. He explained this project comprises only about 3% of the land area within the Old Town Specific Plan and approximately 20% of the commercial core area of the Old Town. Public Works Director Joe Kicak discussed public works projects which will be included in the project. He highlighted projects that are the responsibility of the proponent and the projects that will be constructed by the RDA within the area as follows: Projects that are the responsibility of proponent: 1st Street Project Old Town Gateway Landscaping Minutes\8\31\95 - 1 - 10/20/95 Citv Council Minutes Au¢lust 31, 1995 Downtown demonstration block, including complete reconstruction of Main Street as well as portion of First Street (pavement, curb and gutter, sidewalk, streetlighting signing and landscaping) Identify adequacy of sewer system for ultimate development, replace or upgrade what is necessary. Water system - idenify adequacy and construct facilities as required by Rancho Water and Fire Marshall. Storm Drain upgrades Projects that are the responsibility of Redevelopment Agency: Design and construct what is now the Main Street Bridge, to serve as pedestrian facility. 6th Street Parking Improvements\Public Restrooms Assistance with improvement of facade and non-conforming sign removal Western Cooridor Bypass Project Finance Director Genie Roberts reported that the proposed OPA eliminates conduit financing originally contemplated in the existing MOU with the Buffman group and discussed various financing points in the agreement. Assistant City Manager Mary Jane McLarney spoke regarding the need to hault the decline in taxable sales in the Old Town Area. She stated the project will create 1,062 direct jobs and 1,438 indirect jobs. She gave the additional estimate for police and fire services and stated that if the additional services are not covered by revenues from the project, the Buffman Group will reimburse the City for the short-fall on a monthly basis. City Attorney Peter Thorson addressed the expenditure of RDA funds outside the project area. He explained that the Council and Agency will be asked to make the appropriate findings, that these improvements will be of benefit to the project area. Mr. Thorson also reported that the initiative petition being circulated will not apply to this project, since there is no financing of entertainment facilities and the project is with the Redevelopment Agency and not the City. City Manager Bradley summarized the requirements of the participants. He first explained that the Buffman Group will have all financial responsibility for design, construction and operation of the entertainment facilities. He then outlined the public improvements the Buffman Group has agreed to build for a fixed contract of $5.987 Million Dollars and emphasized they have assumed all responsibilities for cost overruns in exchange for the ability to time the construction of those projects. He also stated that a clause has been inadvertantly left out of the MOU that no historic building will be impacted or destroyed, as identified in the Specific Plan, and asked that this be added. Mr. Bradley then outlined the Redevelopment Agency responsibilities, including the Main Street Bridge, the 6th Street Parking Lot Improvements and Main Street Facade Program and Non-Conforming Sign Removal Program, and the Western Bypass Cooridor. Minutes\8\31 \95 -2- 10/11/95 City Council Minutes August 31, 1995 Agency Member Lindemans asked who is taking the risk for overruns in the project for infrastructure. Public Works Director Joe Kicak stated the amount that the RDA will furnish is identified. He explained that any additional cost is the responsbility of the Buffman Group. Chairperson Parks asked if the hotel and commercial area was not included in the list of improvements. City Attorney Thorson stated that the hotel is not listed as one of the entertainment facilities, because Mr. Buffman is not controlling the development of the hotel. Chairperson Parks questioned relocation costs and asked and who will pay these costs. City Attorney Thornson explained the Government Code and the Health and Safety Code provide that if people are displaced by government acitivities, there is a possible obligation to provide for relocation benefits. He stated that each case will be looked at on an individual basis as to what impact the displacement will have on the individual. He explained, however, that the burden would be born by the Buffman Group and not the Redevelopment Agency. Zev Buffman, applicant, spoke regarding the process which has taken place over the past 2 1/2 years. He stated he is happy to be entering into a period now when his creative talents can go back to work. Agency Member Linderoans asked Mr. Buffman if another feasibility study has been done? Mr. Buffman answered that the Arthur Anderson has also done a report that he paid for fully and that report also supports the feasibility of the project, even though the scope has been reduced in size. RECESS Chairperson Parks called a recess at 8:02 PM. The meeting was reconvened at 8:14 PM. Chairperson Parks opened the public hearing at 8:14 PM. Joseph R. Terrasas, 31160 Lahontan Street, spoke regarding the funding of the entertainment project. Carl Hanauer, 31010Avenida Buena Suerte, stated he is in favor of the OPA and thanked Zev Buffman for keeping his promise. Kay Cassaro, 31616 Paseo Goleta, spoke in opposition based on the 8 %% user charge. Bill Harker, 31130-85 South General Kearny Road, spoke in favor of the project on behalf of TEAM Temecula. Philip Hoxsey, 43318 Cielo De Azul, spoke in opposition to the approval of the project based on use of the City's RDA bond funds. Minutes\8\31\95 -3- 10/11/95 City Council Minutes Auoust 31, 1995 Paul Thimmig of Jones Hall Hill & White, Bond Counsel, outlined the uses of the RDA and the Assessment District Funds. He stated these funds can only be used for public improvements and cannot be used for private improvements. Ben Fraleigh, 39850 Rica Drive, spoke in favor of the project and thanked the City Council and Redevelopment Agency for bringing the project to this point to the benefit of the community. Phila McDaniel, 42050 Main Street, No. 5, spoke in opposition to the project and requested that the City not approve the virtual reality and quickdraw areas. She also addressed concerns about the animals in the arena area. Jon Lieberg, 44600 DeLuz Road, spoke regarding the need to have Temecula be a economically viable town. Jim Meyler, 290930 Santiago Road, spoke in favor of the project and thanked the City staff, the City Council members and Zev Buffman. Pat Keller, P.O. Box 521, spoke regarding the financial impacts on the small business owners, local contractors and shop owners. Phillip Colombo, 29000 Front Street, President of the Old Towm Temecula Main Street Association, spoke in favor of the project and stated 90 + % of the organization's membership favors this project. Carole Carazza, 44220 La Paz Street, spoke in favor of the project. Randy Fleming, 43500 Ridge Park Drive, #202, spoke in favor of the project speaking as a small business owner. Maryann Edwards, 43675 El Faro Place, spoke in favor of the project. Marvin Zeldin, 38027 Via Del Lago, spoke in favor of the project. Bob Kirkpatrick, 30250 Santiago Road, spoke in favor of the project. Bill Green, 27555 Ynez Road, Suite 400, spoke in favor of the project, speaking as a local businessman. Dolores Harmon, 36221 Agape Lane, Wildomar, spoke in favor of the project based on the performing arts aspect being badley needed in the entire region. Marzy Farenbaugh, 42105 Camino Tiempo, spoke in favor of the project and urged approval. Jerry Regier, 41792 Borealis Drive, spoke in favor of the project. Chairperson Parks closed the public hearing at 9:18 PM. Minutes\8\31\95 -4~ 10/11/95 City Council Minutes August 31, 1995 It was moved by Councilmember\Agency Member Birdsall, seconded by Councilmember~Agency Member Roberts to approve staff recommendations 1.1 and 1.2 as follows: 1.1 That the City Council adopt a resolution entitled: RESOLUTION NO. 95-75 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED "OWNER PARTICIPATION AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND T.Z.B.G., INC., A CLIAFONRIA CORPORATION" DATED AS OF AUGUST 31, 1995 1.2 That the Temecula Redevelopment Agency adopt a resolution entitled: RESOLUTION NO. RDA 95-06 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED "OWNER PARTICIPATION AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND T.Z.B.G., INC., A CALIFORNIA CORPORATION" DATED AS OF AUGUST 31, 1995 The motion was unanimously carried with Mayor/Agency Member Stone absent. ADJOURNMENT It was moved by Mayor Pro Tern Linderoans, seconded by Councilmember Roberts to adjourn at 9:24 PM to a meeting on September 12, 1995, 7:00 PM, Temecula Community Center, 30875 Rancho Vista Road, Temecula, California. The motion was unanimously carried with Mayor Stone absent. Ron airperson ATTEST: June S.~k, City Clerk Minutes\8\31 ',95 . -5- 10/11/95