HomeMy WebLinkAbout020492 RDA Minutes MINUTES OF A SPECIAL MEETING
OF THE TEMECULA REDEVELOPMENT AGENCY
HELD FEBRUARY 4, 1992
A regular meeting of the Temecula Redevelopment Agency was called to order at 10:31 PM by
President J. Sal Mu~oz.
PRESENT: 5
AGENCY MEMBERS: Birdsall, Lindemans, Moore, Parks,
Mu~oz
ABSENT:
0 AGENCY MEMBERS: None
Also present were Executive Director David F. Dixon, General Counsel Scott F. Field and
Agency Secretary June S. Greek.
PUBLIC COMM!=NTS
None given.
AC,!=NCY BUSIN!=SS
1. Discussion of Economic Development Incentive Policy
City Manager Dixon presented the staff report, and outlined the need to establish a
policy for the City to provide economic incentives to businesses.
Kirk Wright, 40055 Avenida La Cresta, Murrieta, County Side Realty, representing
California Curves (CCI) spoke in favor of the City making a grant in the amount of
$50,000 to enable CCI to relocate within the City. He stated that with the grant, the
Company has agreed to lease a facility for at least three years with an extension for
another three years. He introduced Ron Dishno of California Curves to answer
questions.
Member Birdsall asked if the problems associated with the Leeds Building, which is
proposed for the relocation, has been solved. Mr. Wright answered they have been
worked out.
Member Lindemans suggested the City renegotiate the RDA Agency pass through
agreements.
Ron Parks asked about the current status of contracts held by the company. Mr. Dishno
stated that the current contract with Sony is for 80,000 cabinets for one year, however
CCI expects to expand over the next couple of years. He stated they would like to stay
in Temecula, because they have a trained work force here.
Member Birdsall asked what the gross payroll is for California Curves. Mr. Dishno
reported the gross payroll is 3.3 million.
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Temecnla Redevelopment Agency Minutes February 4, 1992
Chairman Mufioz questioned why California Curves would consider moving from
Temecula. Mr. Dishno answered that Oregon has offered a package of $300,000 in
grants, with moving assistance. He also stated that San Diego has also offered
enticements.
Chairman Mufioz asked if California Curves would be willing to repay this money at a
later time.
Mr. Dishno stated that the Company needs assistance in the form of a grant at this time
and he would commit to their staying in the area at least three years.
Chairman Mufioz asked that criteria be set for requests such as these.
Member Lindemans stated what the Council is now doing will set precedents, and asked
if it is possible to renegotiate some of the RDA pass-through agreements?
City Manager Dixon answered there is always the chance to renegotiate agreements,
however due to the financial problems the County is facing, the City is not likely to have
much success with the County.
City Manager Dixon suggested in terms of establishing criteria, that the City needs to
examine what the short-fall is and what a company's performance has been. He stated
the increase in employment needs to be considered as well as sending out signals that
the City is not merely interested in attracting new industry, but also retaining current
industry. He stated incentives may be in the form of loans, and/or grants. He outlined
other options as being programs offered where Community Colleges set up training
programs.
Member Moore stated her reason for selecting City Manager Dixon, was his experience
in evaluating economic issues, and suggested he be authorized to do the screening and
present to the Council suggested incentive programs that would be valuable to the
community.
It was moved by Member Moore to allocate $50,000. City Manager Dixon advised this
item was placed on the agenda for discussion purposes only and no specific action
relative to allocation of funds can be taken.
It was moved by Member Moore, seconded by Member Lindemans to prepare the
necessary documents to approve such a grant and place the matter on the next agenda.
The motion was unanimously carried.
Chairperson Mufioz stated this is an important precedent setting action, and requested
that staff develop criteria for granting such requests. He suggested one of the criteria
should be a commitment to a minimum of a 3-year lease whereby funds granted would
be due and payable to the City if the lease is terminated prior to three years. He further
suggested that the City needs to send a message that it is trying to retain business as
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Temeo~la Re/!eveloprnent Agency Minutes February 4, 1992
well as attract new business, yet be cautious that public funds are not misused.
Member Parks stated he is supportive especially in economically difficult times when
jobs need to generate jobs.
!=XgCUTIVF DIRIrCTOR'S RI=PORT
None given.
R!=N!=RA! COUNSFL'S RIrPORT
None given.
AC, gNCY M!:MR!=RS R!=PORTS
None given.
ADJOURNM!:NT
It was moved by Member Parks, seconded by Member Lindemans to adjourn at 11:09 PM.
motion was unanimously carried.
ATTEST:
June .~ty Clerk/AgenCy
[SEAL]
The
J. Sal Mu~oz, (Chairperson
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