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RDA MINS 20090317 SPC MINUTES RANCHO PALOS VERDES REDEVELOPMENT AGENCY SPECIAL MEETING MARCH 17, 2009 The meeting was called to order at 7:35 P.M. by Chair Clark at Fred Hesse Community Park, 29301 Hawthorne Boulevard, notice having been given with affidavit thereto on file. Redevelopment Agency roll call was answered as follows: PRESENT: Long, Wolowicz, and Chair Clark ABSENT: Gardiner (excused) and Stern (excused) Also present were Executive Director Carolyn Lehr; Assistant Executive Director Carolynn Petru; Agency Attorney Carol Lynch; Director of Finance/IT Dennis McLean; Director of Planning, Building, and Code Enforcement Joel Rojas; Director of Public Works Jim Bell; Deputy Planning Director Greg Pfost; Deputy Director of Finance/IT Kathryn Downs; Senior Planner Eduardo Schonborn; Senior Administrative Analyst Matt Waters; Senior Administrative Analyst Sara Singer; and Agency Secretary Carla Morreale. Also present were Tim Mullrenan, Financial Consultant with Tierra West and David Yarden, Vice President and General Counsel with AMCAL Mirandela Fund, L.P. Disposition and Development Agreement for a proposed Affordable Housing Complex (Case Nos. ZON2008-00649 and SUB2008-00008) on RDA property located at the northwest corner of Crestridge Road and Crenshaw Boulevard (1900) Agency Secretary Morreale reported that notice of the public hearing was duly published, late correspondence was distributed prior to the meeting, no written protests received, and there was one request to speak on the item. Chair Clark declared the public hearing open. Deputy Planning Director Pfost provided a summary staff report and PowerPoint presentation. Discussion between the Redevelopment Agency and staff included the following topics: an explanation that if the tax allocation of$5 million was not approved, the project would be abandoned; the prospects of receiving the tax allocations; the integral part the tax allocation plays in the project and the number of opportunities to apply for the tax credits; and, the recent modifications to regulations and guidelines. John Polen, Rancho Palos Verdes, outlined his reasons for opposing the project, including concerns regarding the financial obligations and the length of time for the completion of the project. Discussion between Redevelopment Agency, staff, and the consultant included the following issues: confirmation that $3.6 million worth of construction financing comes from Affordable Housing Funds; concern regarding the completion of the project; funding security mechanisms and incentives to see the project through to completion; and, clarification regarding the role of the Redevelopment Agency in the financing and development of the project. Chair Clark declared the public hearing closed. Additional discussion between the Redevelopment Agency, staff, and consultants included the following topics: the schedule of performance included in the staff report; the Master Schedule as illustrated in the presentation; clarification of terms in the summary; commencement of the marketing and pre-leasing process near completion of the project by utilizing the finished Community Recreation Room as a leasing office; marketing tools to be used such as advertisements in local newspapers, establishment of waiting lists, start of leasing three months prior to completion; the Peninsula Seniors group as resource for prospective tenants; and, confirmation that three affirmative votes were needed for the approval of this agenda item. Member Long moved, seconded by Chair Clark, to approve the staff recommendation. Member Long indicated that the project was necessary to comply with State law and would give the City the most value for its restricted funds; the project would have a positive impact on the community; and, while he acknowledged that there was no guarantee that contractual requirements would be complied with, he believed that past performance was a good indicator. He stated that this alternative provided the Redevelopment Agency the ability to implement the project according to the City's local land use controls rather than in some other manner. Vice Chair Wolowicz clarified that while he had previously voted against the proposal due to disagreement with the Regional Housing Needs Assessment (RHNA) laws and the reaction of the surrounding neighborhoods, he would vote for the project to proceed with the majority support of the Redevelopment Agency. Chair Clark indicated support of the project as a way to serve the aging demographics of the City and the State laws regarding affordable housing. He noted that the project once completed will be a source of pride for the City. Member Long moved, seconded by Chair Clark, to 1) Receive and file the "Summary Report Pursuant to Section 33433 of the California Community Redevelopment Law on a Disposition and Development Agreement by and between the Rancho Palos Verdes Redevelopment Agency and AMCAL Mirandela Fund, L.P. including the "Reuse Analysis, Mirandela Senior Housing Project, Rancho Palos Verdes, CA;" and, 2) ADOPT RESOLUTION NO. 2009-18, A JOINT RESOLUTION OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY, ENTITLED: "A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AND THE RANCHO PALOS VERDES REDEVELOPMENT AGENCY, MAKING CERTAIN FINDINGS AND APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE Redevelopment Agency Minutes Special Meeting March 17, 2009 Page 2 of 3 RANCHO PALOS VERDES REDEVELOPMENT AGENCY AND AMCAL MIRANDELA FUND, LP.," PERTAINING TO THE DEVELOPMENT OF THE AGENCY'S CRESTRIDGE PROPERTY. The motion passed by the following City Council roll call vote: AYES: Long, Wolowicz, and Chair Clark NOES: None ABSENT: Gardiner and Stern The motion passed by the following Redevelopment Agency roll call vote: AYES: Long, Wolowicz, and Chair Clark NOES: None ABSENT: Gardiner and Stern RECESS THE REDEVELOPMENT AGENCY MEETING: At 8:05 P.M. Chair Clark recessed the meeting of the Redevelopment Agency. RECONVENED THE REDEVELOPMENT AGENCY MEETING: Chair Clark reconvened the Redevelopment Agency meeting at 9:45 P.M. JOINT CITY COUNCIL/REDEVELOPMENT AGENCY CLOSED SESSION REPORT: City Attorney/Agency Attorney Lynch reported on the following item: Regarding the threat of litigation by Ms. Joannou against the City and the Redevelopment Agency, the City Council and the Redevelopment Agency Board considered a proposal by Ms. Joannou, provided further direction to the City Attorney's Office, and no other action was taken, with Councilmen/RDA Members Gardiner and Stern absent. ADJOURNMENT: Chair Clark adjourned the Redevelopment Agency meeting at 9:47 P.M. • Attest: Chair `� // // Agency Secretary W:\City Council RDA Minutes\2009\20090317 RDA MINS.doc Redevelopment Agency Minutes Special Meeting March 17, 2009 Page 3 of 3