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RDA MINS 20010821 ADJ MINUTES RANCHO PALOS VERDES REDEVELOPMENT AGENCY ADJOURNED REGULAR MEETING AUGUST 21, 2001 The meeting was called to order at 11:45 P.M. by Chair Lyon at Fred Hesse Community Park, 29301 Hawthorne Boulevard, notice having been given with affidavit thereto on file. PRESENT: Ferraro, Gardiner, McTaggart, Stern, and Chair Lyon ABSENT: None Also present were Executive Director Les Evans; Agency Attorney Carol Lynch; Planning, Building & Code Enforcement Director Joel Rojas; Director of Public Works Dean Allison; Acting Principal Planner Greg Pfost; Agency Secretary Jo Purcell; and, Recording Secretary Jackie Drasco. APPROVAL OF AGENDA: Member Stern moved, seconded by Member McTaggart, to approve the agenda. Motion carried. APPROVAL OF CONSENT CALENDAR: Member Ferraro moved, seconded by Member McTaggart, to approve the Consent Calendar as follows: Minutes (301) Approved the Minutes of August 7, 2001. The motion carried on the following roll call vote: AYES: Gardiner, McTaggart, and Chair Lyon NOES: None ABSTAIN: Stern on vacation and absent from the August 7 meeting. # # # # # # # # # # # # REGULAR BUSINESS: Indian Ridgecrest Gardens Senior Affordable Housing Proposal — Exclusive Negotiating Agreement & Discussion of Issues Acting Principal Planner Pfost presented the staff report of August 21, 2001 and the recommendation to (1) Approve the Exclusive Negotiating Agreement between the Rancho Palos Verdes Redevelopment Agency and Indian Ridge Crest Gardens, LP. (2) Provide direction to staff and developer as to whether the developer may submit an application for a Tentative Tract Map for Condominium purposes over the subject property. (3) Provide direction to staff and developer regarding the number of affordable housing units to be included with the proposed project. Board discussion centered on the proposed change from 52 apartments to 41 condominiums and how the number of affordable housing units which this project could provide would not change; the last exclusive negotiating agreement with Charles Brumbaugh which deleted the reference to his buyback option; the reprogramming of RDA set aside funds which were used to buy this property if the project is not built; the different means of satisfying the State's affordable housing unit requirement; the fact that the City's housing element would not have to be revised if this project is not built; and the affordable units being provided as part of the Ocean Trails project. Charles Brumbaugh, Corporation for Better Housing, 100 W. Broadway, #1250, Glendale, 91210, stated that in 1999 he had the subject property in escrow and, for the benefit of both parties, he made an arrangement for the City to purchase the property and an option for him to buy back the property was made a part of the Exclusive Negotiating Agreement (ENA). He felt that he had lived up to his part of the agreement in good faith and he asked that the buyback option which had been removed from the second ENA be added again in the new ENA he was requesting. He said that he was willing to provide condominiums or apartments, whichever the Board wished and he was also willing to provide the number of affordable units required. Mr. Brumbaugh said that the building had been completely redesigned to accommodate condos and he felt that the current residents in the neighborhood preferred condos over apartments. He stated that he had no preference but wanted to construct a building that all concerned were pleased with; however, he did not think that condos would be harder to control and believed that the resulting Homeowners Association would hire a management company, which the City could approve, to make sure that all residents were at least 55 years or older and that affordable housing requirements were met. Mr. Brumbaugh added that condos were not as desirable to purchase when built on leased land and if apartments were built the City could still own the land and would have more authority over project. Mark Steenbock, Manager of Crestridge Estates, LLC, 5200 West Century Boulevard, #256, Los Angeles, CA 90045, said that the project he was planning on the adjacent property might be affected if the Board chose not to build condos for the project in question. He asked the Board to consider the distinctions between the two proposed RDA Minutes August 21, 2001 Page 2 projects and said that his proposal included on-site professional management which would provide reports to the City. He compared the topography and density of the two senior housing projects and said that they were not requesting any City funds and would not be involved with any affordable units. He closed by stating that the neighborhood had been receptive to their proposal and that if the ENA was not extended, he would be interested in talking to the City in submitting another project which included affordable housing. Agency Attorney Lynch clarified that the application for Mr. Steenbock's project had been incomplete for six months and that there was reason to believe that it might be withdrawn. Speaking in support of the staff recommendation were the following persons: Jim Slayden, 37 Mela Lane; Ray Mathys, 5738 Whitecliff Drive; Wayne Hazelrigg, 674 West 27th Street, #11, San Pedro, CA 90731; Reverend Ted Levon, P. 0. Box 345, Palos Verdes Estates, CA 90274; Al D'Amico, 2302 Rue Le Charlene; and, Ron Malin, 9 Cayuse Lane. Their comments focused on: That this facility would be wonderful for retirees who wish to sell their larger home in Rancho Palos Verdes and move into a smaller place but still stay in the area; that there were not many apartments or condos in the City; that changing the units to condos was considered preferable to apartments; and, that the rendering of the facility looked attractive. Speaking in opposition of the staff recommendation were the following speakers: William Brandlin, 5201 Middlecrest Road; Glenn Arbuthnot, 28856 Crestridge Road; Barbara Arbuthnot, 28856 Crestridge Road; Ross Anderson, 28870 Crestridge Road; Jim Hathaway, 28955 Crestridge Road; Chuck Taylor, 5441 Middlecrest Road; Linda Puentes, 5575 Mistridge Drive; Jack Downhill, 20 Vanderlip Drive; and, Robin Rahn, 28846 Crestridge Road Their comments focused on: That Mr. Brumbaugh was well aware that he waived his buy-back privilege with the last Exclusive Negotiating Agreement (ENA); that approving another ENA would restrict the City's options to develop this property to only Mr. Brumbaugh's plan; that other groups have expressed interest in developing this property with a one-story, low-density facility; that a park could be placed here; that there may be other options for the use of this parcel which have not been mentioned yet; that other means to fulfill the affordable housing requirement are available such as subsidized housing and there is plenty of time to meet this requirement; that there seemed to be confusion as to exactly how many affordable units were required; that even after modifications, the facility would still be too massive and incompatible with the neighborhood; that this facility as proposed would require many variances from the City code; that condos instead of apartments would be difficult for the City to manage as RDA Minutes August 21, 2001 Page 3 affordable units; that the facility is not attractive as the first view entering the City on Crenshaw; that there are no benefits to the City with an ENA, only to the developer; that affordable housing should not be provided to the detriment of surrounding residents; that the project should not be built because so many citizens object to it; and, that a senior center would be preferable to this facility. (Member Stern left the dais at 12:52 A.M. and returned at 12:54 A.M.) Lois Larue, 3136 Barkentine Road, commented on the resale of affordable units at the Villa Capri project at market value prices and asked if there was some way to assure that affordable units maintained that status. Board discussion focused on circumstances which could change the affordable status of a unit and the fact that a unit inherited by someone under 55 years of age would require selling the unit. Agency Attorney Lynch advised that apartments would be a simpler solution because there would be one owner rather than many owners of condominiums and the City would not have be directly involved. Acting Principal Planner Pfost said that there were eight affordable units planned for the Ocean Trails project, four onsite and four subsidized units offsite which were not new construction. Therefore, he said of the 13 required, five more would be needed at this proposed senior housing project. Further Board discussion centered on the consensus to oppose including the buyback feature in an ENA; the importance of considering other uses for this property, including a park; and, whether condos for this project might not be considered institutional zoning. Member Gardiner moved, seconded by Member Stern to (1) Not approve the Exclusive Negotiating Agreement between the Rancho Palos Verdes Redevelopment Agency and Indian Ridge Crest Gardens, LP. (2) Not grant a "buy-back" provision to the developer Charles Brumbaugh. (3) Direct staff to consider other options for the property, including the feasibility of a park. RECESS & RECONVENE: At 1:28 A.M., Chair Lyon declared a recess to allow inserting a new video tape to continue recording. The meeting reconvened at 1:30 A.M. After the break, Members Ferraro, Gardiner, and McTaggart disclosed that they had received information from Rob Katherman regarding this project. RDA Minutes August 21, 2001 Page 4 The motion carried 3-2 on the following roll call vote: AYES: Gardiner, McTaggart, and Stern NOES: Ferraro and Chair Lyon Amendment to Construction Loan Agreement and Amendment to Promissory Note Secured by Deed of Trust for the Portuguese Bend Club Homeowners Association to Finance the Installation of Sewers Director Allison presented the staff report of August 21, 2001 and the recommendation to approve the proposed amendment to construction loan agreement and amendment to promissory note secured by deed of trust and authorize the Chair and the Agency Secretary to execute both documents on behalf of the Agency. Lois Larue, 3136 Barkentine Road, expressed her approval that that the sewers in Portuguese Bend were on the Redevelopment Agency agenda. Member Gardiner moved, seconded by Member Ferraro to approve the proposed amendment to construction loan agreement and amendment to promissory note secured by deed of trust and authorize the Chair and the Agency Secretary to execute both documents on behalf of the Agency. Motion carried. CLOSED SESSION REPORT: Agency Attorney Lynch reported that no action was taken. PUBLIC COMMENTS: This section of the agenda is for audience comments on items NOT on the agenda: each speaker is limited to three minutes. ADJOURNMENT: The meeting was adjourned at 1:35 A.M. on the motion on Chair Lyon. /` C air -elf Attest: It /11 , Agency Secretary W:\2001 RDA Minutes\08212001 rda min adj.doc RDA Minutes August 21, 2001 Page 5