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HomeMy WebLinkAbout110994 RDA AgendaAGENDA CITY OF TEMECULA OLD TOWN REDEVELOPMENT ADVISORY COMMITTEE A REGULAR MEETING TEMECULA CITY HALL - ADMINISTRATIVE CONFERENCE ROOM 43174 Business Park Drive NOVEMBER 9, 1994 - 6:30 PM CALL TO ORDER: Flag Salute ROLL CALL: Committee Members: Chairman Dallas Gray presiding. Agency Member Jenkins Bridges, Gray, Jenkins, Reed, Walton PUBLIC COMMENTS A total of 15 minutes is provided so members of the public can address the Council on items that are not listed on the Agenda or on the Consent Calendar. Speakers are limited to two (2) minutes each. If you desire to speak to the Council about an item not listed on the Agenda or on the consent Calendar, a pink "Request To Speak" form should be filled out and filed with the City Clerk. When you are called to speak, please come forward and state your name and address. For all other agenda items a "Request To Speak" form must be filed with the City Clerk before the Council gets to that item. There is a five (5) minute time limit for individual speakers. COMMITTEE BUSINESS 1 Minutes RECOMMENDATION: 1.1 Approve the minutes of October 4, 1994 Draft Redevelopmerit Imolementation Plan and Proposed Amendment to the Temecula RedeveloDment Plan RECOMMENDATION: 2.1 Provide comments and recommend approval of the proposed Implementation Plan and the mandated Redevelopment Plan Amendments to the Redevelopment Agency 2legendall 1/9/94 11/07/94 3. Proposed RDA Commercial Rehabilitation Small Business Loan - Temecula Shuttle RECOMMENDATION: 3.1 Review and provide comments to the Redevelopment Agency. EXECUTIVE DIRECTOR'S REPORT COMMITTEE MEMBER REPORTS ADJOURNMENT Next regular meeting: December 6, 1994, 6:30 PM, Temecula City Hall, Main Conference Room, 43174 Business Park Drive, Temecula, California 2legendall 1/9/94 11~7/g4 Item I MINUTES OF A REGULAR MEETING OF THE CITY OF TEMECULA REDEVELOPMENT ADVISORY COMMITTEE OCTOBER 4, 1994 A regular meeting of the City of Temecula Old Town Redevelopment Advisory Committee was called to order on Tuesday, October 4, 1994, 6:30 P.M., Temecula City Hall Main Conference Room, 43174 Business Park Drive, Temecula, California, Chairman Dallas Gray presiding. Committee Member Bridges led the flag salute. PRESENT: 5 COMMITTEE MEMBERS: Bridges, Gray, Jenkins, Reed, Walton ABSENT: 0 COMMITTEE MEMBERS: None Also present were City Manager Ron Bradley and Recording Secretary Gail Zigler. City Manager Bradley read into the record a letter of resignation from Committee Member Constance Pelonero. PUBLIC COMMENT None COMMITTEE BUSINESS 1. Minutes 1.1 Approve the minutes of August 2, 1994. It was moved by Committee Member Reed, seconded by Committee Member Walton to approve the minutes of August 2, 1994. The motion was carried by the following vote: AYES: 5 COMMITTEE MEMBERS: Bridges, Gray, Jenkins, Reed, Walton NOES: 0 COMMITTEE MEMBERS: None ABSENT: 0 COMMITTEE MEMBERS: None 1.2 Approve the minutes of August 22, 1994. Committee Member Walton stated that he was absent at the August 22, 1994 meeting, however the motion to adjourn the meeting reflected his second to the motion. OTRDAC10/04/94 1 10/11/94 OLD TOWN REDEVELOPMENT ADVISORY COMMITTEE MINUTES OCTOBER 4, 1994 It was moved by Committee Member Reed, seconded by Committee Member Bridges to approve the minutes of August 22, 1994, as corrected. The motion was carried by the following vote: AYES: 5 COMMITTEE MEMBERS: Bridges, Gray, Reed, Walton NOES: 0 COMMITTEE MEMBERS: None ABSENT: 0 COMMITTEE MEMBERS: None Jenkins, Consideration of Additional Planning Exoenses for Old Town Entertainment Proiect City Manager Ron Bradley presented the staff report and answered questions about the Old Town Entertainment Proposal. Committee Member Bridges asked about the status of the Old Town Specific Plan and the money that has already been spent preparing that document. City Manager Bradley explained the City plans to distribute a Redevelopment Newsletter to the community to outline Redevelopmerit issues in the community and provide updates on the status of the Old Town Specific Plan. Theresa McLeod, 42200 Main Street, #F128, expressed her opposition to the Old Town Entertainment Proposal. She asked why there has not been a feasibility study on the Old Town Specific Plan. Ms. McLeod said Old Town is already viable and expressed her concern that the M.O.U. is too rigid. She asked why Mr. Buffman is allowed to hold up the Old Town Specific Plan. It was moved by Committee Member Bridges to recommend to the City Council/Redevelopment Agency approval of consultant contracts not to exceed ~65,000 for additional consultant services for the Old Town Entertainment Project. The motion failed due to a lack of second. ADDrooriation and Authorization to Release Funds for Old Town Soecific Plan Billboard Sian Lease City Manager Ron Bradley presented the staff report. Due to conflict of interests with the Committee Members who belong to the Old Town Merchants Association which caused a lack of quorum, the Committee did not vote on this issue, OTRDAC10/O4/94 2 10/11/94 OLD TOWN REDEVELOPMENT ADVISORY COMMITTEE MINUTES OCTOBER 4, 1994 4. Status Re~ort On Prooosed Purchase of Rancho West Apartments City Manager Ron Bradley advised that the City is working with the RTC on the purchase of the Rencho West Apartments. He stated the City has been receiving periodic updates from Washington advising they are still reviewing the matter. City Manager Bradley said staff is in the process of developing the City's Redevelopment Housing Program which must be adopted by the Council nolater than December 31, 1994, which provides low to moderate income housing. If not approved, the City will lose 25% of it's set-aside money to the County, and if delayed another twelve months, the City will lose 50% of the set-aside money. 5. Report on the Status of the Old Town Redevelol)ment Advisory Committee City Manager Ron Bradley advised the Committee on Tuesday, October 11,1994, the Redevelopment Agency will vote on whether or not they will file an amendment to the stipulated judgement and on the number of members to serve on the Old Town Redevelopment Advisory Committee. Committee Member Reed asked if the Committee Members could attend the Redevelopment Agency meeting and discuss the concerns they have regarding the stipulated judgement. City Manager Bradley said he feels the Committee Members should attend the meeting or appoint one member to go before the Redevelopment Agency on behalf of the Advisory Committee. It was moved by Committee Member Reed, seconded by Committee Member Walton to appoint Chairman Dallas Gray as representative of the Redevelopment Advisory Committee to attend the October 11,1994 Redevelopment Agency meeting to address the Committee's concerns regarding the changes to the Stipulated Judgement. The motion was carried by the following vote: AYES: 5 COMMITTEE MEMBERS: Bridges, Walton NOES: 0 COMMITTEE MEMBERS: None Gray, Jenkins, Reed, ABSENT: 0 COMMITTEE MEMBERS: None The Committee members re-stated their concerns regarding the proposed modifications to the judgement as follows: Item 1. Uncomfortable with the language "without apportionment". Item 2. No specific language regarding the percentage of improvements to be OTRDAC1 O/04/94 3 10/11/94 OLD TOWN REDEVELOPMENT ADVISORY COMMITTEE MINUTES OCTOBER 4, 1994 spent in Old Town. The Committee feels a minimum of 50% of the tax increment revenue should be spent in Old Town with no cap. Item 4. The Old Town Redevelopment Advisory Committee should remain a seven member committee. Committee Member Walton said he would like to encourage a member of the Redevelopment Agency to attend the Old Town Redevelopment Advisory Committee meetings to hear the concerns and comments of the committee members. EXECUTIVE DIRECTOR'S REPORT None COMMITTEE MEMBER REPORTS Committee Member Reed reported on the Old Town Specific Plan proposed Billboard lease. Committee Member Reed said since the billboard went up, there has been a sizable increase in the number of visitors coming to Old Town just from seeing the sign. Committee Member Walton said he would rather see a permanent sign instead of continuing to rent a sign space. Chairman Gray said he feels the sign should be used to advertise special events and not to advertise private entities. Committee Member Reed said she would take the Committee's comments back to the Old Town Merchant's Association. Committee Member Walton said he would like the RedevelopmentAdvisory Committee to send a letter to the City Council recommending the $100,000 cap be increased on the Redevelopment Agency Loan Program and that the public be advised. The Committee unanimously agreed to appoint Committee Member Walton to go before the City Council and request that they re-evaluate the denial of the loan request of Ladd Penfold/Scarcella's Pizza based on the following: The real estate collateral is in excess of the total loan amount. The three individuals involved in the project are upstanding citizens in the community with businesses outside of Old Town. and to request the City Council to re-evaluate the $100,000 CAP on the loan amount. OTRDA C10104/94 4 10/11/94 OLD TOWN REDEVELOPMENT ADVISORY COMMITTEE MINUTES OCTOBER 4, 1994 Committee Member Walton asked the City Manager to provide the Committee with a copy of the loan package. Committee Member Walton asked that the Ladd Penfold/Scarcella's Pizza loan requests be placed on the next available agenda. Committee Member Reed said she received a letter from Cal Trans regarding the Old Town Merchants Association request for a freeway sign. She said Cal Trans representative Ken Steele sent a letter indicating Cal Trans has corresponded with the City of Temecula Planning Director regarding a request for a freeway sign for Old Town Temecula and he is waiting for a response from Mr. Thornhill. City Manager Bradley said he would follow-up on the letter with Director Thornhill and report back to the Committee. ADJOURNMENT It was moved by Committee Member Walton, seconded by Committee Member Reed to adjourn at 8:30 P.M. The motion was unanimously carried. The next regular meeting of the City of Temecula Old Town Redevelopment Advisory Committee will be held on Tuesday, November 1, 1994, 6:30 P.M., Temecula City Hall Main Conference Room, 43174 Business Park Drive, Temecula, California. ATTEST Chairman Dallas Gray Redevelopment Secretary June S. Greek OTRDAC 10/04/94 5 10/11/94 Item 2 APPROVAL CITY ATTORNEY FINANCE OFFICER CITY MANAGER TO: FROM: DATE: SUBJECT: CITY OF TEMECULA AGENDA REPORT Redevelopment Advisory Committee Executive Director/City Manager November 9, 1994 Draft Redevelopment Implementation Plan and Proposed the Amendment to the Temecula Redevelopment Plan RECOMMENDATION: implementation plan and Redevelopment Agency. Provide comments on and recommend approval of, the proposed the mandated Redevelopment Plan Amendments to the BACKGROUND: The Five-year Implementation Plan and the Amendment of the Redevelopment Plan was delivered to the member of the committee who were in attendance at the meeting of November 1, 1994 and hand delivered to those who did not attend. TO: FROM: DATE: SUBJECT: OLD TOWN REDEVELOPMENT ADVISORY COMMITTEE AGENDA REPORT November 1, 1994 Draft Redevelopment Implementation Plan and Proposed the Amendment ~o the Temecula Redevelopment Plan PREPARED BY: David W. Hogan, Associate Planner RECOMMENDATION: Provide comments on, and recommend approval of, the proposed Implementation Plan and the mandated Redevelopment Plan Amendments to the Redevelopment Agency. BACKGROUND: The State enacted Assembly Bill (AB) 1290 in 1993. AB 12.9D required that certaip amendments be made to all adopted Redevelopment Agency Ha~s and Programs. The required changes are the inclusion of certain time limits on redeveloOment activities into the Redevelopment Plan and the preparation of a Five-Year Redevelopm~nt Implementation Plan. Specifically, AB 1290 requires that Redevelopment Agencies: 1. Prepare Implementation Plans that: Provide specific short-term goals; Identify specific projects and expenditures for the next five year period; Identify how these projects will alleviate blight; and, Specify how the goals and objectives intend to eliminate blight and provide additional low and moderate income housing. Amend the Redevelopment Plan to incorporate the following State-mandated dates to provide that: No loans, advances, or indebtedness be established or incurred after July 12, 2008; All Plan activities terminate by July 12, 2028; and, No tax increment receipts shall be received after July 12, 2038, except for certain obligations incurred prior to July 1.1994. The Redevelopment Agency will be considering the adoption of the Five-year Implementation Plan and the Amendment of the Redevelopment Plan at its November 29, 1994 meeting. A copy of the draft Implementation Plan will be provided to you no later than the Committee's November 1, 1994 meeting. R:\REDEV\iMPLPLAN.OTA 10/24/94 dwh 1 Item 3 OLD TOWN REDEVELOPMENT AGENCY COMMITTEE AGENDA REPORT TO: FROM: DATE: SUBJECT: Members of the Redevelopment Advisory Committee Ronald E. Bradley, Executive Director November 9, 1994 Review and Comment on Proposed RDA Commercial Rehabilitation Small Business Loan Prepared by: Mary Jane MoLarhey YJ~ RECOMMENDATION: Review and provide comments to the Redevelopment Agency Board. DISCUSSION: The City has received a revised application from Temecula Shuttle to construct a 1740 square foot building located at 41953 Main Street, Temecula, CA. The business is owned by Ed and Kathleen Pool who are currently in the process of purchasing the land at the above location. The Agency Members previously approved an RDA loan for Temecula Shuttle in the amount of 982,585 on January 26, 1994 for the purpose of purchasing equipment and a modular building. This loan did not fund because the borrower has been in the process of revising his business plan. The facility would feature: Temecula Shuttle Offices/lobby/ticket windows, public restrooms and day lockers, picnic/snack area, tour coach/wine tour loading/discharge area and rental office space. The public restrooms and facilities would be maintained by Temecula Shuttle. The Planning Department has reviewed the proposed facility for conformity with the Old Town Specific Plan. The site is located on the major east-west street in the heart of the Tourist Retail Core (TRC) District of the Old Town Specific Plan. Based upon this review, the Planning Director has determined that if the majority of the uses (by floor area) are consistent with the Plan, then the proposed facility may be included as a subordinate or accessory use. The Council's approval of the proposed loan will not eliminate the need for the applicant to apply for, and obtain approval of, a Plot Plan prior to developing the site, It should be noted that the proposed project location falls within the Old Town Entertainment proposed area. Although the Temecula Shuttle may be a compatible use with the Old Town Entertainment Project, neither the entertainment project architects nor the project proponent (Zev Buffman) have reviewed the Temecula Shuttle proposal. The new construction loan amount is 9100,000 amortized over twenty years due in 5 years. This loan would be secured by a second trust deed on the subject property located at 41953 Main Street, Temecula, behind a senior lien in the amount of 974,000 carried by the seller. The loan would also be secured by an Assignment of Note secured by Deed of Trust owned by Mr. and Mrs. Dool on a parcel of land located in Wilmington, California. The appraisal on the Wilmington property was completed on November 4, 1994reflecting a value of 8370,000. This note is a seasoned note having had 52 monthly payments, The assigned Note will be collected under terms of an installment collection contract at a financial institution acceptable to both the borrower and the City whereby the City will be notified in the event of any default of payment or payments in excess of scheduled payments. Title insurance policies will be required for both properties-the Temecula property located at 41953 Main Street and the vacant industrial property located in Wilmington. The proceeds of this loan will be handled by a fund control agent to ensure proper funding with periodical inspections for payments of materials and lien releases. In connection with the revised plan, Mr. Dool is requesting three exceptions: NOT RECOMMENDED BY STAFF: 1) Because his original loan request was granted using the 26-week T-Bill index, he is requesting this loan be granted using the same index rather than Prime + 2%, Council is restrained from granting the request under the terms of the stipulated judgement. (The revised judgement authorizing a rate of Prime + 1% has not yet been approved by the court). STAFF RECOMMENDS COUNCIL CONSIDER: 2) The City grant a 6-month loan payment and fee grace period during construction. Interest would accrue but payments would not begin until 6 months from date of note or upon the issuance of a Certificate of Occupancy-whichever occurs first. 3) If the Wilmington property note is paid off, Temecula Shuttle may pay off the balance of the first trust deed on the Temecula property. The City's second position would then become a first position and the Assignment on the Wilmington note would no longer be required. This would be acceptable subject to a new appraisal paid for by Dual Development. 4) If the Temecula Shuttle project proceeds without incorporation into the planning efforts underway for the Old Town Entertainment Project, conflicts could occur which could jeopardize the success of both projects, 5) The Council may wish to approve the loan application contingent on the incorporation of the Temecula Shuttle in the Old Town Entertainment Project. If the Council desires to accept this option, staff should be directed to initiate negotiations immediately with representatives of Dual Development and T.Z.B.G., Inc, Mr. Dool contends his project will improve the City of Temecula by providing for the construction and maintenance of public restrooms and day lockers. This loan has been reviewed by our independent loan committee consisting of a local bank official and a Certified Public Accountant. Approval is recommended subject to the state stipulations, FISCAL IMPACT: To date the City has funded ~ 109,400 in Redevelopment loans. P:\SYERSK\SHUTTLE.2